Digital Technology is not only transforming the global economy but also radically shaping the structure of the economy. While you were sleeping last night, autonomous machines have been extracting ores from coal mines. As you read this article, a 3D printer is printing human organs with the help of digital technology. Right now, somewhere in India, an architect is designing a building for a client in Toronto. That is the power of Digital Technology, and it is evolving at a rapid pace.
In light of this digital revolution, Canada has evolved as a promising destination for business, entrepreneurship, and social progress. The country has proven that its ecosystem is conducive to develop new AI algorithms, and Canada is already on its way towards a digital revolution. Thus, it is apt that we understand how technology and its offerings can impact the Canadian economy.
Borderless Working Environment
With the advancement in technology and the internet, people can now work together irrespective of their locations. Canadians can avail services from Australia while rendering their skills and knowledge to the global population. It is reported that more than 2 million workers embraced the gig economy in 2019. With such a future, countries would attract workers and residents as it would benefit the local economy, and Canada has become a very lucrative destination across the world.
Tailor-made solution for every customer
Traditionally manufacturers have huge plans and warehouses in locations where they can have cheap labor and easy regulations. The goods are shipped across the globe from these locations, and it finally reaches the end customer. In the future, think about highly customized products being produced in local factories. What if a customer wanted an 8.3 sized sneakers with the sole adjusted to the local park’s gravels? What if someone demanded a customized mask made from locally sourced materials? These are possibilities of tomorrow, and in no time, a drone would deliver the products at your doorstep. This is where the Canadian economy is heading, from economies of scale to an economy of scope.
Value Creation in the Digital World
Years back, you would spend money on printing photographs, collecting them in albums, or frame them. Now you store them on cloud and access them at will, not allowing dust to accumulate on the photo albums. Digital technology has changed the way value is created for customers. The traditional value addition to the GDP is now being replaced by tech and digital solutions. Canada is hugely popular for AI in its public and private systems, and the world should learn from the Canadian model of Artificial Intelligence.
Prepare for the Future
A major challenge with the digital economy is that many traditional activities would be automated. This means people would be out of a job and forced to reskill and upskill themselves. The Canadian government is investing in developing the digital skills of its workforce. The government and the Canadian people should be prepared for the digital future, the disruptions and challenges it brings along.