State of IT: The Industry That Touches Everyone

This post is part of a series in which LinkedIn Influencers analyze the state and future of their industry. Read all the posts here.

I work (and live) in a very dynamic industry. Information Technology is unique in that it touches nearly all industries. IT is an incumbent element of every business today, and thus the changes in this industry touch everyone.

Look back a couple of generations ago – how did humans do business, communicate with each other, make purchases, get from point A to point B? Information technology is responsible for many of the advances in recent history; it is the motor of productivity and economic growth. We are able to better measure things and share information and best practices more widely and rapidly, because of IT.

As summarized in a presentation by Erik Brynjolfsson, director of the MIT Center for Digital Business, productivity is responsible for the wealth of nations, competitive success of companies and determines living standards. He outlined that on average, companies that are more IT-intensive are typically more productive. Why is this the case? Let’s take digitization—or, the digital megatrend—as an example. Digitization of businesses has uncovered a multitude of benefits to companies in terms of cost and efficiency. Digital disruptions and advances, like embedded software technologies and 3D printing, are increasingly being adopted by businesses.

Online shopping has drastically changed the way we make purchases; it has allowed us to learn so much more about a product or service before “checking out.” And when we make more well-informed decisions the economy improves.

Improved technology and communications is breaking down international barriers, helping to trade more effectively. Do all of your colleagues work in a company office? Work itself is now something you do, not somewhere you go to. The digital age has challenged the ideas of what an office is – a physical location. The way in which we interact — email, teleconference, Skype—is changing how we work and interact.

While the advent of ‘digital’ has brought about a lot of positive changes to the economy—boosting productivity, national wealth and competitiveness—there have been some drawbacks. Machines and tools, providing companies with the ability to do more with less, have both created jobs yet also been the source of unemployment. The digital divide may put developing economies at a disadvantage, distancing themselves from the rapid pace of technological adoption in advanced economies. Internet technologies have empowered civilians to rise against oppressive regimes, while also changing the way we think about privacy, security and the limitations that governments and organizations should have over personal information.

Digital capabilities are touching every aspect of the company. Production, logistics, sales and administrative processes have been enhanced by digital technologies for many years; however, now more than ever, the products and services that companies bring to the market are increasingly digital. Entertainment, media and publishing industries have been subject to severe digital disruptions. With advances in embedded software technologies and real-time data analytics we are seeing a plethora of smart products. Anything from smart light bulbs to jet engines, or egg baskets to self-driving cars, we see the digital component becoming more relevant.

The digital trend is also redefining the way organizations conceive products and bring them to life, giving birth to a new generation of companies. Companies like Quirky, which brings consumer products to the marketplace through a crowdsource approach, fosters interaction between the online community and its own industrial design staff. In fact, the company’s approach for product development is so unique, that it got the attention of General Electric, which granted Quirky access to thousands of its patents. The intention is to create new, innovative products using Quirky’s community approach and rapid prototype-to-retail process.

Square, the company famous for its white squared card reader that plugs into the iPhone, led by Twitter’s Jack Dorsey, may kill the phrase “the check is in the mail,” replacing it with “the money is in the email.” Last October the company introduced a service that allows you to send money to another person via email, for free—no login or password to remember, no special software or hardware required, no cumbersome banking or money transfer service processes. The tool is categorically a clean and simple way to transfer money between individuals, exemplifying how a digital-age company can come up with a fully digital product that may put traditional businesses in a catch-and-react mode.

As Forbes’ David Kirkpatrick summarized in his 2011 column: “Every company is a software company.” The changes taking place today in the IT industry are only gaining speed. Overall, the innovations and efficiencies gained by my industry are transforming every other industry.

Photo: PureSolution / Shutterstock

Want more insight about this industry? Follow our Technology channel.

Enjoyed this post? Read what other Influencers had to say:
? Maynard Webb on the State of Technology: Two Obstacles Gating Tech’s Future
? Gary Shapiro on the State of Consumer Electronics: You Don't Need a Programming Degree, You Just Need Good Ideas