1.15.2014

A good report about some megatrends in technology


Some of my students are doing really well. Here I publish some pages of the final report that one of them gave me few days ago. For further informations just contact me.

Tallinn University of technology
Thomas Johann Seebeck Department of Electronics

 Some important megatrends in technology

 Student: H. K.
Professor: Valerio Alessandroni


Tallinn 2014



Abstract

This introductory report about few technological megatrends focuses on connectivity, urbanisation, robots and sustainability - main trends that greatly influence society. I will give short description of the trends and how will they determine future life.

Introduction

Technology is emerging and it has changed how people work, study, do everyday actions and communicate with each other. One of the most important technological breakthroughs is a real-time communication network – Internet. There are about 200 million emails, 20 million photo views and over 2 million Google searches in every minute. It is safe to say that being connected and accessing the information through the Internet has had tremendous impact on technological megatrends. That is why in this report I will make a brief overview mostly about information and communication technology megatrends influencing people all over the world.

There are a lot of likelihoods for future trends that we can already see will have a grand impact on business and society in next years and decades. Global marketplace is changing and technology influences creating new designs, manufacturing systems and innovative products that millions of people around the world seem to need. Technological megatrends are worth looking into because they have become everybody’s close part of life and progress in this area plays a great role in shaping the world, especially now when investments to ICT area have been so enormous.

What is a megatrend?

Megatrends are new directions that are formed very slowly and transforming our lives. John Naisbitt, who has been the world’s best known investigator of global trends, invented the concept already in 1980 [1]. Businesses and governments are constantly looking at how to stay successful, profitable and competitive and analyses of main movements help them to make better investments and formulate strategies for more effective functioning. Megatrends have wide-reaching impact also on society and affect the future, which is the reason why analysts are doing foresights and researches in that area. It is very valuable to know different megatrends because they provide guidance for decision-making and has an affect on technology planning.

Connectivity


Top megatrends are all somewhat related to being connected to the Internet and making life more comfortable to all its users. This kind of connectivity is now the expected norm which means that generations are growing up with digital technology very close to them. This generation expects to always have internet access and spend most of their time in a virtual world rather than physical. Some time ago getting connected to that world required an effort; today a similar effort is needed to get disconnected. There is continuous evolution of wireless network architectures and more than 140 countries were offering 3G services and many countries have moved on to higher broadband speeds.[2] 4G Google Fiber standard today provides Internet speed up to 1000 Mbps which is 100 times faster than basic broadband and being connected in developed country is easier than ever. [5] Forecasts say that global mobile connections will reach 7.6 billion in 2015 [6] and Internet usage has changed the way people work, learn, consume, share information and communicate. Penetration in developed countries was estimated at 73.8 percent by end of 2011 and in developing countries, the rate is at 26.3 percent. [2]

Technology-driven shopping, investing, studying, working, donating etc. have led people to expect to have more free time and less use of energy. All online activity will become more accessible in forthcoming time because there will be smarter and smarter mobile devices, PCs and tablets with very fast connectivity. Personal computer (PC) has been the most valuable tool in modern world so far but this year’s statistics and foresights show rapid growth in popularity of tablets. It is clear that people who use phones and tablets to access the Internet will outnumber those who use a PC by already in year 2015. [4] Laptop will be out-of-date and replaced by communication access device (for example mobile phone) and cloud computing. All the applications, software and content will be in the cloud and you will be able to access it through the network.

(figure available in the original)

 Figure 1. NPD Displaysearch’s projections for sales of tablet and notebook PCs.

Figure 1. shows that PCs sold in 2012 outnumbered tablets greatly but 254 million tablets sold in 2013 represents 63,9% increase from 2012. Forecasts say that tablet sales will shoot above 400 million by 2015 and it appears that tablets will become dominant personal computing device. [4] Information technology has had rapid growth in last years and also it is connected to the biggest megatrends in the future. Society is moving towards cloud based data treating as said before, which means that all information is saved in the online system. To bring some examples here it is good to look at our own country – Estonia, where using Internet is found as human right. Estonia is been one of the pioneering countries in developing data exchange layer which enables different governmental databases to communicate and where every possible system is plugged into the e-environment (police, school, government, hospitals, etc.) An ID card, that all Estonians carry, also works in electronic environments to encrypt documents and add a digital signature. E-census, e-voting, e-government, digital prescription, e-reporting, tax-declaration – all this connectivity leads to one big system and is actually a part of urbanisation. The increasing sophistication in electronic devices is actually leading to simpler life for consumers. The digital explosion has reduced all information to its lowest form, sequences of 0s and 1s. But do we want that kind of new wave?  Laws, regulations, paper work, and bureaucracies change much more slowly than the technologies they govern, but there are broad economic and social benefits from innovations in ICT. Wiis, and toll booth transponders do not save lives, but wireless fire detectors and global positioning systems do. The story of WiFi illustrates how rapidly an unforeseen technology can become an essential piece of both business and personal infrastructure [10].  It seems that society is taking it all very well and digital explosion is something we needed.

Urbanisation and smart cities

                                                        
Trend is to move towards big societies and urbanisation where e-mobility is feature that holds great regions from falling apart. Face of urbanisation is changing as we know it: there will be no boundaries between suburb, urban, and rural areas. Megacities are expanding and development of corridor regions between large cities is becoming a great trend.

Mega cities are shaped primarily in three forms according to Frost and Sullivan “Top 20 Global Mega Trends”:

1)      Megacities, which have a minimum of ten million inhabitants, such as Greater London, New York, Metropolitan Paris, Shanghai, Sao Paulo;
2)      Mega Regions, which combine with suburbs to form regions, such as the combination of Johannesburg and Pretoria;
3)      Mega Corridors, which connect two major cities or mega regions, such as Hong Kong-Shenzhen-Guangzhou in China (population 120 million). [8]

As stated before megacities are moving towards mega regions and cities will compound together with surrounding suburbs to form much bigger areas and all the borders will expand and blur. Much more interesting here is not the size of the city, but how so tremendous area will be handled from inhabitant standpoints. These mega cities have to be organized very effectively and that is why they are called “smart cities”. Operation of one big region should be handled with great wit to not waste any energy, also active cooperation between information and communication technology (ICT) providers need managing. That is why “Smart cities” include smart information technology, business, city planning, mobility and also smart buildings. It is estimated that over 40 global cities will be “Smart” in 2020 and more than 50% of them of 2025 will be from Europe and North America. [9]

This kind of new definition of “smart city” will probably create lots of advanced market opportunities. There will be increasing demand for smart devices which will cause new opportunities in energy industry, transportation, robotics, healthcare, retail, telecoms, and home automation. Next generations will have high-speed trains which will be more energy efficient, robots helping them in the households, better access to healthcare and high level medical instrumentations. For example e-government system in Estonia has already created more transparent, efficient, convenient and trustworthy relations between citizens and government agencies. These kind of smart technologies and smart devices that have to improve due to that are raising also different kind of problems. As everything that matters is in the cloud, the problems also start from there. If somebody wants to affect certain area, the most productive way to do it in nowadays society would be possibly a cyber-attack as cyber warfare is gaining a lot of importance. World war 3 will be more connected to information environment than we care to admit with all the advancements in technology. Attacks could be done with botnets, ping attacks, hackers etc. and it is clear that governments need Cyber Defence League to cope with modern threats.

Robots


In the future megacities people will use robots as their companions, household workers, nannies or even pets. But what problems do these “slave robots” raise. Could the science fiction movies be true that one day robots will conquer the world? It does seem futuristic and unlikely but there is really only one important step to go – consciousness. Mixing machines with living tissues could be the answer of reproductive robots themselves. Already now Japan and South Korea as the leaders of robotics have developed such machines that look intimidatingly a lot human like. Megatrends show that some machines will become much more than just household helpers but also companion to humans. We have machines that can do a lot of things better than people and we are already giving away our power because we are dependant on many technological inventions (mobile phones, computers etc.) which means that power is on the hands of little elite and it can control the masses more easily. Future in robotics is all about nanotechnology, genetic engineering and matter of time when we realize that there are truly intelligent machines among us. Scientist Hugo de Garis, who became known for his research on the use of genetic algorithms to evolve neural networks, thinks it is possible to create “artificial brain” which could lead to robots with human level intelligence and the worst scenario to that would be an artilect that can develop itself. To think more critically, there comes a question if one could create something smarter than it is itself?! Robotics is one megatrend that seems to develop slower and has not reached its closeness to custom consumer just yet, but observing the trend, it is only a matter of time when every household has a robot cleaner lady.

Sustainability


Smart technology is all about increasing the role of innovations to enable better sustainability. This means also smart reuse of materials and energy saving. High-energy costs refer to rising amount of traditional sources, such as fossil fuels, which mean that alternative energy sources are more in honour in the future. All environmentalism will get more popular because energy prices are increasing and there is expanding concern for our generations’ environmental legacy. In the next 40 years it is estimated that population will grow about 30% which causes increasing demand for food, healthcare, transport, infrastructure and energy. [2] As stated before, our population will continue to grow, life expectancy also increases and global health care system needs to follow society’s needs. ICT here has very crucial place in enabling remote services in order to stretch limited health care resources. Consuming, energy harvesting, pollution, etc. will only get worse and we need 5 planets to hold the mass of altering world, but as we have to fit on this one planet (at least for now) sustainability comes into the picture. World’s resources without “green” and renewable approach will soon drain the earth and ICT industry has to support the sustainable living with smart devices and technologies.[7] Next figure shows the world population graph by age groups to the year 2050.

(Figure available in the original)
Figure 2. World population distribution by age groups in world and development regions

From the graph we can see that elderly group 60+ will match the persons group younger than 15. By 2050, elderly population will drive the trend for continuous care. In Europe, between 2008 and 2060, the population of the European Union member countries aged 64 and over is estimated to increase by 67 million, and the group of people aged 80 and over will be the fastest growing [13]. The average GPD spent in Europe on healthcare has escalated from 6 % in 2000 to 8% in 2009 [11]. Use of technology among the seniors has also been increasing rapidly. The 46 to 64 year old group now spends more money on technology than any other demographic according to Forrester Research’s annual benchmark tech study [3].

Sustainability will be a part of everything companies do, it will not be an option in the future, it will be a must. Population will rise to 9 billion by 2050 [12] and this means increase in consumption of goods and higher demand for energy. United Nations estimates that most of the world’s population growth is coming from emerging markets which means that the active (especially consumer) class is growing. Environmental impacts of consumption are already now in critical level and when there will be millions of consumers more, we will need to find ways to reduce the humanity’s footprint briskly. Products have to be fully recyclable and renewable and system that produces them needs to be sustainable. IT is heavily dependent on energy and companies have the need to reduce power consumption. Already now there are more efficient processors and Green IT offers better network infrastructure and devices. Keywords here are smaller components integrating multi-functionality to support higher speeds and lower energy consumption – all this reduces the footprint.[14] Main question here is if sustainability ideas are getting all the support they need to change the thinking of society.

Conclusion


Megatrends are essential in helping companies and governments to gain a good strategic vision and sustainable development. One most important impact of megatrends is that the divide between developed and developing economies is decreasing. Access to the network has changed the world and different societies are now more connected and accessible. Governments are investing more into ICT to modernize and integrate infrastructure with technologies like the government cloud, open source public sector, and mobile applications which sums up all to a smart governance and fits with the smart cities. The megatrends described in this discussion are all very much connected to each other and it is difficult to bring out the most important movement but I think as the population is growing and aging with such rush, trying to be sustainable and reduce the ecological footprint should be society’s main concern.

Used literature

(list is available in the original)

Note: You can ask for the original of this report and for the references of my student by writing an email to info@alessandroni.net

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