Session 5 -ICT

Session 5 - ICT, a driver of change?

This particular session covers one of the closest things to people's heart. Singaporeans and most people around the world, regardless of developing or developed countries are increasingly reliant on ICT as a way of life. It brings us so much convenience that we can't imagine life without these technologies. Yet, we need a lesson on ICT because we took them all for granted.

In particular, cloud computing had drawn a lot of attention recently. Cloud computing is simply storing information and being able to access it anywhere with a connection. Simple as it sounds, it has been such an exciting advancement. It is cutting down drastically on redundant, highly expensive servers, reduce the barrier to entry for any IT-related cost and allowing much more freelance or small companies to gain rapid foothold in the industry. By doing so, it is expanding opportunities to every single individual to explore new creative ideas and business models, giving companies a more even playing field. It obviously beneficial for the economy with cost efficiency and encourage greater innovation.

In the report (https://members.weforum.org/pdf/gitr10/part1/chap%209_economic%20consequences%20of%20the%20diffusion%20of%20cloud%20computing.pdf), it estimates huge cost saving for the industry of up to 5%, possibly generating 1m jobs and accounting for 0.3 per cent of GDP increase in Europe just by adopting cloud computing. Not just that, excitement is that cloud computing generates both temporary and permanent jobs that can greatly reduce the much unwanted unemployment rate.   Assuming this report to be accurate, this is extremely relevant to Europe now! The recent debt crisis in Eurozone is forcing countries to implement harsh, austerity measure to reduce debt. Majority of the measures are extremely detrimental to the economy and are likely to cause slower growth or even prolonged recession in future. While cloud computing is not the miracle pill, by cutting cost through usage of cloud computing is a much more constructive, possibly creating long term cost efficiency and growth. Furthermore, it can generate small amount of temporary jobs that might help to reduce some unemployment immediately. Perhaps the governments are so overwhelmed by the intensity of the crisis that they neglected the more subtle yet long-term approach of doing things, otherwise I do not see any reason why they have not been actively encouraging it since the last recession in 2008.

In conjunction with cloud computing is the increase in productivity gain in ICT/knowledge revolution thus far is about 5x. We covered a couple of reasons in class, mainly because it has yet to ripe and the hereditary structure stiffens knowledge transfer rather than encourage knowledge transfer. Thus, companies start to initiate programmes such as alumni for retirees, mentoring, flexible retirement work schemes, etc. As more companies value these knowledge transfers, I believe it is only a matter of time where all tertiary industry will start to adopt these models.

However, on the other spectrum, employees can be another limiting factor why knowledge advancement has yet to generate the productivity desired. While the hierarchy system must be changed, employees must also now undertake much more responsibility and initiative. Yet, most employees previously in the orders-only positions cannot change instantaneously. Even with an elaborate system in place, it is always been hard for humans to accept change and will quickly be overwhelmed if caught unprepared. Thus, fresh graduates in particular should be equipped with the skill to absorb the information and adapt quickly. Schools should start preparing students to face such an overwhelming world outside and to be able to grab the gist of anything rather mere memory work. After all, the web provides you with the hardest formulas and thickest encyclopaedia within split seconds. Then only, at the bottom of the corporate pyramid, employees can fully utilize the resources and enhance productivity by another 20 folds.