The Digital Age: So What?Dr. Roberto GallardoAssociate Extension Professor & LeaderMSU Extension Intelligent Community Institute

@robertoge

• CED Fundamentals• CED Frameworks• Digital Age

Implications• Intelligent

Community• Checklist

What’s ahead …

Key Concepts

• Community• Geographic defined place where people interact

• Growth Vs. Development• Growth: quantitative increase• Development: change directed toward

particular social oreconomic goal

• Sustainable Development• Meets needs of present generations without

compromisingability of future generations to meet their needs

Key Elements• Carries out important activities and

functions toserve its residents• Production-distribution-consumption• Socialization

• Institutions: rules and organizations, including informal norms, that coordinate human behavior• Family• Economic• Education• Political/Government• Faith-based/religious• Associations

Linkages

• Capacity of communities to carry out major functions depends on nature and strength of local institutions

• Horizontal: within community• Vertical: with external resources

Community Development: Definition

“Group of people in a locality initiating a social action process – i.e.

planned intervention – to change their economic, social, cultural,

and/or environmental situation.”Source: Christenson & Robinson (1989)

Sustainability: Community Views

Unconnected/Silos

Interconnected/Linkages

Interdependent/Nested/Systems

Source: Sustainable Measures

Community Economic Development

• Community development (CD) = social & community

• Economic development (ED) = business & industry

• CD + ED = CED (community economic development)

• CED allows residents to mobilize and build assets to improve their quality of life in a sustainable way

Frameworks & Strategies

• Technical assistance• Self-help (asset-mapping)

• CARE model• Cluster-based economic

development

• Community capitals• Intelligent Communities

CARE Model

C reate: entrepreneurship

primarily A ttract: recruit

external businesses R etain:

keep existing businesses

E pand: help existing

businesses grow

Cluster-based Economic Development• Comparative vs. competitive

advantage• Geographic concentration of related

industries• More innovation than in “isolation”• Strategic industrial attraction to plug

“leaks”

Community Capitals

Source: Olson (2006) cited in Jacobs (2007)

PoliticalInclusion, voice,

power

FinancialIncome, wealth, security, credit,

investmentNaturalAir, soil, water

(quality & quantity),

landscape, biodiversity

CulturalCosmovision,

language, rituals, dress

HumanSelf-esteem,

education, skills, health

BuiltWater systems,

sewers, utilities, health systems

SocialLeadership, groups, bridging & bonding

networks, trust, reciprocity

OutcomesHealthy ecosystems

Vibrant regional economies

Social equity and empowerment

Community Capitals

Source: Jacobs (2007)

• Jane Q. wants a walking trail …Description Capitals

InvolvedTakes leadership development class learning new skills Human

Partners with local hospital that wants to implement wellness campaign

Social

Works with local parks & recreation to identify land Natural

State senator informs of grant that can be used PoliticalLocal tourism board likes the idea and provides additional funding

Financial

City and county build trail infrastructure Built

Local historical society adds historic markers Cultural

And? Jane’s trail …

• Community buy-in• Sustainable• Nobody can do it

alone• Part of larger jigsaw

puzzle

DIGITAL AGE & INTELLIGENT

COMMUNITIES

Technology is adopted faster …

• Telephone 75 years• Mobile phone 16

years• World Wide Web 7

years• Facebook 4 years• Instagram 2 years• PokemonGo 1

month Source: Twitter user @ValaAfshar; ITU; Statista; BCG Research

Reaching 100 million users worldwide

What’s changed?

300 hrs. of videos

uploaded to YouTube

110,040 Skype calls

77,160 hours of video

streamed on Netflix

694 Uber passengerstake rides

51,000 apps downloaded (iTunes)

Source: Domo

Worldwide every minute of 2015

Mobile Explosion

Mobile Explosion

80%of Internet usage will be mobile by 2018

Source: Website Magazine

The Digital Economy

• By 2016, will employ 32 million + people than in 2010

• By 2020, will reach $6.6 trillion in G-20 economies

• Real threat to economic growth: digital divide

Source: Boston Consulting Group

Digital Potential

• Dozens of indicators

• Building digital assets

• Expanding digital usage

• Creating digital workforce

Source: McKinsey Global Institute (2015)

18%

Digital Age Characteristics

• Exponential• Digital• Combinator

ial• Disruptive

Source: Brynjolfsson, E. & McAfee, A. (2013), The Second Machine Age; McQuivey,J. (2013). Digital Disruption – Unleashing the Next Wave of Innovation

Exponential, huh?

Source: Twitter user @ValaAfshar

If a VW 1971 Beetle improved as did computer chips …

• Would reach 300,000 mph

• Fuel economy of 2 million mpg

• Would cost 4 cents

Exponential, huh?

Source: Thomas Friedman, New York Times

Digitization, huh?

Source: Harvard Innovation Lab

• Internet of Everything (IoE)• “Physical world can now be digitized,

monitored,measured, and optimized.” – Project

Syndicate• At least 50 billion devices will be

connected by 2020 – Cisco (2014)

• “IoE is a $19 trillion global opportunity over the next decade” – Cisco (2014)

• Up to $11 trillion annual economic impactin 2025 – McKinsey (2015)

Digitization, huh?

• Technology lag• Artificial

Intelligence• Deep learning

algorithms• Zero to expert in 8

hours• X-rays & CT scans• Skin cancer• Breakout arcade

game• Electrify Cognify

Combinatorial, huh?

21st Century Oil

Source: Peter Sondergaard. Forbes

“Big Data is the oil of the 21st century. Oil is useless thick goop until it’s refined into fuel. Big data’s version of refined fuel—

proprietary algorithms that solve specific problems that translate into actions.”

Hello algorithm economy!

Digital Disruption, huh?

“Investor concern over the threat of new technologies is overstated.”

– Blockbuster analystreport, 1999

Source: Twitter user @ValaAfshar

Digital Disruption, huh?

• Kodak invented the digitalcamera in 1975

• Filed for bankruptcy in 2012

Most Valuable Companies 2006-2016

Source: World Economic Forum

Digital Disruption, huh?

Innovation

• “I have not failed. I have just found 10,000 things that do not work.” – Thomas Edison

• “The secret to creativity is knowing how to hide your sources.” – Albert Einstein

Innovation

• Using knowledge to create new products, services,or processes

• Collaboration, collaboration, collaboration

• BEFORE: density of people and resources• TODAY: virtual collaboration or open

innovation

• Access to talent• Networkin

g opportunities

• Proximity to customersand suppliers

How exactly does it work?

• With connectivity & know how

• Better air quality• Natural amenities• Less traffic

Innovators*

*Source: Washington Post

Rural areas offer

• Geographic proximity

• The bigger, the better

• Tied to office, factory

• Mass production

Economic landscape shifting

Industrial Economy

Digital Economy

• Decentralization• Economic

gardening• Work from

anywhere• Open innovation

600,000rooms

Source: World Economic Forum

Airbnb

4 yea

rs

Hilton

93 yea

rs

DigitalGlobalization

• Digital flows—nonexistent 15 years ago—have alarger impact on GDP than centuries-old goods trade

• Trade was once confined to advanced economiesand large multinational companies

• Today digital globalization has opened the door to developing countries, small companies and start- ups, and billions of individuals

Source: McKinsey Global Institute. Digital Globalization: The New Era of Global Flows. March 2016

“Gig” Economy

Source: American Action Forum

Online Gig Economy

Workers who utilize new technologies,

markets and platforms for

alternative work arrangements

Uber Lyft Care

Gig EconomyWorkers with alternative work arrangements

Independent Contractors Contingent Workers Temp Workers

Sharing Economy

Goods and services that employ

under-utilized assets via online

marketplacesWikipedia Linux OS

Much easier to start anywhere …

Hewlett Packard1939

Apple 1976

Amazon 1994

Google 1998

Source: Twitter user @ValaAfshar

Economic Paradigms

Communication

Transportation

Energy

Source: Rifkin, J. (2015). The Zero Marginal Cost Society

1st Industrial Revolution

Source: Rifkin, J. (2015). The Zero Marginal Cost Society

Communication

Energy

Transportation

2nd Industrial Revolution

Source: Rifkin, J. (2015). The Zero Marginal Cost Society

Communication

Energy

Transportation

3rd Industrial Revolution

Source: Rifkin, J. (2015). The Zero Marginal Cost Society

Communication

Energy

Transportation

Tipping Points

Source: World Economic Forum, Deep Shift Report (2015)

2018

2023

82%1st

implantablemobile phone

76%1st 3D

printed liver

implant

2024

91%84%Unlimited and free 1st

3D printed carstorage in production

2022

75%30% of

Corporateaudits by AI

2025

79%10% cars will be

driverless

2026

Commerce

Communication

Productivity

Healthcare

Entertainment

Information

Education &Employment

Innovation/Collaboration

Digital Age makes possible …

Banking/Funding Email

Credit: Jordana Barton. Federal Reserve Bank of Dallas

Holograms

Holoportation

Remember this?

• Weight 2.4 lbs• Talk time: 30

minutes• Charge time: 10

hours• Cost: $3,999

Robotic Chef

Retail enhancement …• Virtual

fitting

Downtown enhancement• Interactive

spaces

Civic Engagement

• 3,500 resident Spanish town

• 50% of residents use Twitter

• 13% yearly savings; $380,000

• Suspicious activity• School lunch menu• City services• Doctor appointmentsSource: New York

Times

Precision Agriculture

• UAVs• Self-guided equipment• Soil and moisture sensors• Farmbot Genesis: grows food in your

backyard• Swagbot: cattle herding• Rowbot: fertilize soil, mulch weeds,

sow crops

3D Spaces & Images

Source: Mashable

“An intelligent community is one that – whether through crisis or foresight –

understands the enormous challenges of the digital age and has taken conscious steps to prosper in

it.”

Intelligent Community

Source: Bell et al (2014). Brain Gain

Intelligent Community IndicatorsBroadband

KnowledgeWorkforce

Innovation

Digital Equality

Sustain- ability

Advocacy

Ask yourself …

• Does your community encourage deploymentand adoption of broadband?

• Are programs in place to prepare the workforce with digital age skills such as soft skills, self- directed, teamwork, student-centered learning, programming, etc.?

• Does your community offer programs and/orincentives for home startups or entrepreneurs?

Ask yourself …

• Does your local government interact digitally with its residents through websites, social media, and apps?

• Do hospitals, employers, and schools have telehealth capabilities?

• Do local businesses understand and implement multiple online presence strategies?

• Are businesses and nonprofits aware of crowdfunding and crowdsourcing strategies?

Ask yourself …

• Are teleworking/telecommuting policies inplace or incentivized in any way?

• What about providing digital literacy and/or access to computers and Internet for those that cannot afford it or don’t know how to use it?

• Is there a strategy in place to proactively manage the community’s online reputation? (HINT: google your community)

Ask yourself …

• Are efforts being made – water conservation, agro ecology, installation of solar panels and/or windmills, etc. – so that natural resources and livable conditions are available for future generations?

Change is not easy …

“Doubt is an

uncomfortable condition,

but certainty is a ridiculous

one.” Voltaire

Digital Divide

• Divide between those with access and know how versus those without access or know how

• Equivalent to not knowing how to read or write 150 years ago

• We’ve been down this road before …

Broadband Speeds & Access

33.781

12.016

12.7

27.017

11.243

16.0

27.975

16.978

32.2

10

5

0

15

20

25

30

35

40

Download (Mbps)

No Broadband (%)

Upload (Mbps)U.S. KYSOAR

Source: FCC Form 477 (December 2015); Progress Reports

% Pop. Without Access to 25/3

Source: FCC Form 477 (December 2015); Progress Reports

Average Download Speeds

Source: FCC Form 477 (December 2015); Progress Reports

Average Upload Speeds

Source: FCC Form 477 (December 2015); Progress Reports

Residential Fixed Connections

Source: FCC Form 477 (December 2015); Progress Reports

Do I need faster Internet?

Do I need electricity when I

already use candles?

… is like asking …

That selfie generation …

Technology is making us antisocial …

Jobs Vs. Productivity

Source: Brookings Institution

Not all is great …

• Not a silver-bullet• Chips & batteries• Cyberattacks• Big Brother• Profitable Privacy• Inequality• 21st Century

Institutions

Remember that in the digital age …• Levels the playing field

betweenurban and rural

• Size does not matter• Eliminates “middle of

nowhere”• When most people can

work anywhere, where will they choose to live and work?

Contact Information

Dr. Roberto GallardoAssociate Extension Professor & LeaderMSU Extension Intelligent Community Institute

Website: http://ici.msucares.com Twitter: @robertogeEmail: roberto.gallardo@msstate.edu