Mankind is about to face a technological revolution that is all set to change the way people live, work, and connect. You have probably never witnessed such a transformation before. No one possibly has any idea about how the change will take place. During the First Industrial Revolution, water and steam power were in use to mechanize production.
During the Second Industrial Revolution, electric power came in handy for mass production. Information Technology and Electronics were in use for product automation. The Fourth Industrial Revolution is building a digital revolution based on the Third Industrial Revolution. The revolution is driven by blending technologies. Owing to this, the lines between the physical, digital, as well as biological spheres. Here are the details regarding what to expect from Economy 4.0.
Opportunities and Challenges
Like the previous revolutions, the Fourth Industrial Revolution is capable of raising income levels across the globe. This would go on to improve the quality of human life. Consumers who can afford and access the digital world are benefitting the most out of it. With the help of technology, people are exploring new products and services that boost efficiency and bring pleasure to their personal lives. From booking a flight and ordering a cab to buy a product, watching a film, and listening to music, you can do everything remotely.
However, eminent economists such as Andrew McAfee and Erik Brynjolfsson have indicated that the revolution might cause an upheaval in the labor markets, leading to greater inequality. When machines replace workers, it might aggravate the gap between returns to labor and returns to capital. Looking at this from another perspective, replacing labor with machines might also lead to an increase in jobs. This is not just rewarding but also safe as it reduces the scope for human error. It’s pretty hard to predict what kind of scenario is going to emerge. However, if you look at history, the result will most probably be a fusion of both.
The Impact of the Revolution on Business
From conversations with senior business executives and CEOs from global businesses, one can infer that comprehending or anticipating the velocity of the labor market disruption and the acceleration of technology innovation is an uphill task. These drivers are a source of surprise even for the tech-savvy population. Evidence points out that the technologies promoted by the Fourth Industrial Revolution are having a significant impact on global businesses.
As new technologies surface, several industries, keeping the supply aspect in mind, are looking at them as new ways to address the existing requirements and disturb industry value chains. Speaking of the demand aspect, there are major shifts are happening. This is because companies are under pressure to design, market, and offer their products and services due to the increased transparency. There are newer patterns of consumer engagement and consumer behavior.
The Impact of Revolution on the Government
As the physical, biological, and digital spheres keep coming together, new platforms and technologies will help citizens connect with the governments, express their opinions, coordinate every effort, and evade any public authority’s supervision. At the same time, the governments will also have technological powers in their hands with the help.
Governments will face the heat to change their existing approach to policymaking and public engagement even more. They can take their control over the citizens to another level. They will have the surveillance systems and their potential to administer the digital infrastructure.
What Impact would Economy 4.0 have on People?
Economy 4.0 will not only transform what you do, but it will also transform your identity and, of course, everything connected to it. Right from your privacy, ownerships, and your consumption patterns to the way you shape up your careers, cultivate your skills, meet new people, and work on relationships, everything will go through a sea of change. Whether this huge integration of new technologies in human lives would diminish the basic human capacities is something we need to wait and watch!
The key is to shape a future that works for everyone. People have to be prioritized and empowered with the help of technology. As newer technologies emerge, we are sure that they would pave the way to a better quality of life, fewer employment opportunities, and enhanced connectivity.