Economy of tech is defined here as advances in technology and relative spending that affects GDP. And it’s making a huge impact. Changes in the Dow Jones and S&P by tech giants, Amazon, Apple, and Google are “replacing large industrial super companies.” This is largely due to their higher-valued stocks and innovations that improve business operations and reduce costs. Many link these technology successes to a “marketplace transformation” with its ability to globally touch every industry. However, if you’re watching this economy of tech from the sidelines, your business may suffer. And you can count on your industry changing with or without you.
Economist view of technology’s influence
As this technological influence moves along like a steam roller, it comes as a surprise for some economists. Economists see technology as innovative ways of doing business. Aside from the physical aspects of technology, like computers and robotics, they realize its true power. Tech has the ability to “produce things faster, better or cheaper.” Above all, it’s influencing all types of businesses and industries with new ways of productivity through the internet, apps, and software.
Considered one of the few economic certainties in our future, the technology sector continues to make an impact as tech companies continue to make a dent in the world of business by gaining a bigger percentage of the world economy. In fact, the effects are so great that the Bureau of Economic Analysis is finding it difficult to keep tabs on it all. And it’s the same with the Bureau of Labor Statistics who is struggling with the wave of independent tech workers.
How this influence of technology is gaining momentum
According to the World Economic Forum, technology is helping the economy five ways. Direct job creation, contributing to GDP growth, emerging services and industries, workforce transformation, and business innovation are strong indicators. And deemed as common economic effects of information communications technology (ICT), the effects of innovative ways to do business will undoubtedly continue to gain momentum.
Circular economy driven by technology
But not only does tech drive the linear economy, technology is also driving value in the circular economy. Protecting the environment with “green” products and services has become a movement among all industries and part of the economy of tech. Companies are joining sustainability efforts through recycling. For example, Apple uses a robot to dismantle and retrieve reusable smart phone parts in 11 seconds.
And staying in the game has never been more important. Savvy companies are aware of the evolving marketplace and continue to move the needle to stay on top. As the efficiency of improved processes and cost reductions allow for creative ways to compete, there’s no hesitation. Retail giant Amazon, for example, continues to grab market share by enticing all holiday shoppers with promos like no-minimum free shipping.
Look within your own business
So how can the influences of technology help your business succeed? First, look for ways to improve operations with a look at gaps or weaknesses in your processes. For example, how can you improve your communications? Or, what changes in your product development can increase sales? Above all, how can you integrate software to better achieve results while reducing costs and increasing ROI?
As startups and tech giants continue to push innovations, the economic gains will see huge increases over the next couple of decades. They are literally pushing the technology envelope with products and services that are streamed, stored, and exchanged online and through apps. And there’s no doubt this influence of technology will change how we do business forever and in our lifetime. The world we know today is rapidly evolving. So, staying stagnant is not an option.
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