Digital Transformation (DT) has been happening since the birth of the Smartphone when IT direction was taken from the hands of businesses into entrepreneurs and individuals. Large corporations are too slow and lack leadership, innovation and drive to target DT. They are further regulated too heavily to be flexible. I am advising my customers to not spend huge amounts of money on it prematurely but keep a close watch on what is turning from hype to reality and market dominance. I advise them to target flexibility rather than a strict architecture. Internally businesses will continue to operate on a transaction level and what is called processes will be pushed outwards towards partners and customers. I advise business to NOT REPLACE people by automation but to AUGMENT their employees and EMPOWER their customers. Not that it helps much as I will show below. It won’t be their choice what DT means will be employed. The most relevant aspect of DT is actually what governments plan to do with it especially those on the left when you look at China (see its Social Rating project) and even Canada (if Trudeau remains and has his way). European Union research and investment into DT is close behind.
Why is this a political scenario? If leftist governments continue to tax people and businesses higher for employment rather than taxing corporate revenue, bank transactions and profits (as they should according to their lies) then the trend of falling employment will continue and DT and silly enough AI will be blamed for it. Leftist governments have been killing Western employment and technology progress for decades now with regulation that supposedly protects workers. That reality actually created the new China through outsourcing! Easy to see unless you are blind and ignorant. Facebook, Google, Apple and the likes are already under government mandate under the threat of even tighter regulation just as the financial systems that supposedly run our ‘free markets’ but only exist to fund government debt! There are those who propose that these government controlled systems in China as in the West are doomed to collapse, taking the financial system down with it. And yes, that is a possibility considering how far financially overextended all these systems are. But it is not the US that has any interest in destroying China’s currency or markets due to dire consequences for the US. And China has no interest to use the huge amounts of US debt it owns to destroy its money making machine. But the problem may be inherent and not controllable.
Why are we at this point? Businesses target lower cost and risk and employed staff belong to the largest component in both due to government regulation. Use of automation and outsourcing to Asia (virtually China alone) are just the means of businesses to reduce that regulatory side effect of protective labour laws (if it actually is a side-effect and not possibly intentional). China is already on the forefront of DT-use and due to its unique situation as the Worlds IT supplier is now sucking up Western know-how, resources and businesses at an unprecedented rate and we continue to fund it. They invest more into automation than the Western buyers who could do the same if they would not be punished by taxes for doing so. And you think buying oil from the Middle East is a problem? Western progress and social security is being erased. Everyone knows …
With DT, unlimited government control over individuals and businesses is finally possible – the wet dream of every fascist dictator or government pretending to be socialist or even democrats. There is no way to avoid Digital Transformation as it will happen and in the worst case it will be widely mandated by governments and not by free market forces. I remain currently optimistic that the human drive for freedom will eventually prevail. But be careful who you vote for!!!
Don’t get me wrong as I do ultimately believe in the good in people (not governments) and in the great benefits of our technological advances. DT could be the basis for a new truly democratic society with FULL government transparency and ABSOLUTE individual privacy. Not the other way around. But that is not the plan as in difference I do not believe in the good intentions of governments. The more money they demand and spend supposedly on projects to save or advance humanity the more they are working under the covers to increase their amount of control and their disconnect from the forces of democracy and freedom. Like in ancient Egypt they will continue to build more pyramids.
I am not in a panic but I surely wonder. And surely somebody will see this analysis as a conspiracy theory … and you need to wonder why.