Technonomy Is The New Economics – Here’s What You Need To Know
Technonomy refers to the changing relationship between technology and economics. Constant advances in Robotics, Artificial Intelligence, 3D Printing and the Internet of Things have come together to transform the way that economic markets work, from production to employment. The influx of free services accessible via personal devices has presented a real challenge to traditional economic models. Before mass data, established methods of hardware production drove economies. Now, it’s all about tech and the data that fuels it. Technology has affected GDP (gross domestic product) to the extent that it is hardly relevant anymore. The endless list of free services like apps and search engines have made data even more powerful.
It’s increasingly important for businesses to be aware of technonomy, especially as profit shifts from product to data. Technonomy is closely linked to the rise of the sharing economy, in which consumers bypass established businesses to share resources through joining online communities. New FinTech companies and alternative payment methods are already standing up to established firms, all backed by powerful software and, you guessed it, data. Another point to consider is the effect of a technology-fuelled economy on employment patterns. Take ride hailing business Uber, for instance, which is driven by data. By applying algorithms, supply and demand can be perfectly in tune. It makes sense from Uber’s perspective, but it’s caused debate over how fair the company is to employees, who only ever make money if the demand is there. Unfortunately, data doesn’t account for sympathy or fairness. If the global economy was run using machine learning algorithms and data analysis, then masses of people would find themselves out of work.
Technonomy, AKA the disruption of economies by technology, isn’t going to go away. As more advancements are made, the effects on resource management will be amplified. The question is, how can markets deal with relentless innovation? How can companies make the most of new business models without giving everyone’s jobs to AI-powered robots? And, perhaps most importantly, will the popularity of free services and the sharing economy create economic depression? In a world inundated with technology, these key questions will soon demand an answer.