Perspective: The Digital Revolution and Its Attack on Labor

The purpose of this blog is to provide an overview of the digital revolution and the impact it is having on every aspect of our lives. Most will be surprised to learn that the Digital Revolution is already over one hundred years old yet it is accelerating exponentially. Exponential is a mathematical term for growth that goes at faster and faster rates. Graphically the curve becomes steeper and steeper to where it is essentially vertical. Someone said the digital revolution is like having the Industrial Revolution occurring every ten years.

This chart lists the digital events over the past 100 years, and if you note the number of significant additions during the past decade, you get the idea that we are on the vertical part of the curve. The CEO of Google when asked where we are on this exponential curve he said “About ten percent”.

1907 The Vacuum Tube Invented:
1947 The Transistor Invented
1958 Internet Created
1969 The ATM Introduced:
1973 Cell Phone Introduced
1973 The Personal Computer (PC) Introduced:
1984 Apple Introduces MAC:
1985 Microsoft Introduces Windows:
1985 The Laptop Introduced:
1993 E-Mail Introduced:
1996 Text Messaging Added to Cell Phone
1996 The Digital Camera Introduced:
2001 The I-Pod Introduced:
2003 Social Media Launched
2003 LinkedIn:
2004 Facebook:
2005 Youtube:
2006 Twitter
2010 Instragram:
2007 The Kindle Introduced:
2007 The I-Phone Introduced:
Combines
The Cell Phone with Texting
The Digital Camera
The Google and Other Search Engines
A Multitude of Potential Apps downloadable from the Internet

The vacuum tube lasted 40 years until it began to be replaced by the transistor. Twenty or so years later the ATM, the PC and the Cell Phone made their debuts. Then during the next twenty years various Internet applicable nuances were introduced. And then in rapid session we saw the digital camera, and by 2001-2003 the I-Pod and various social media entered the system. A mere four years later in 2007 the Kindel and the I-Phone entered the market. Every one of these devices impacted labor as industry after industry was uprooted to make room for the new technology.

Of all the incredible developments along this one hundred year period, the I-Phone is the most fantastic, and it will have the greatest impact on every human endeavor. The I-Phone, often called the Smart Phone It is so small that it fits into the palm of the hand but has the computing power of many Laptops and PCs. But it is more than a just a powerful computer. It is the Ultimate Device!

One way to think about this remarkable device is to consider the number of devices that it has replaced by merging them into one device. The devices merged include the cell phone with text messaging, the digital camera, the I-Pod and comparable devices to download music, e-books, connection to the Internet through browsers such as Google with its access to the entire knowledge of the world, GPS, maps, verbal communication to locate shops, etc., You Tube and for streaming movies, and the list goes on and on.

From a marketing point of view this means that instead of having to purchase a device for each application, such as a Kindel for reading a book, or a CD player, or a digital camera, you have this in one small powerful device. Since one billion persons in the world already own these devices, the market potential for a new item, such as a book, a tune or an App is one billion versus several markets of one or two hundred million for such devices as a Kindel, a digital camera or a CD player.

The most important fact to understand about this new device is that it is like an extension of our brain’s memory. It also has the ability to add tools (called Apps) that the brain may need. When we truly understand that, we will be able to imagine what the impact of this less than a decade-old device will have on business, medicine, education, government and our personal lives.

Here are some examples of Apps that already exist.

Medical: Measuring blood pressure, body temperature, EKG determinations and blood sugar levels, etc.

Home: Determining what is going on in your home while you are away ranging from photographing an intruder to changing the heating or cooling and/lighting, monitoring a baby sitter, etc.

Business: Monitoring a production machine from home, or miles from home

Store: Using the Smart Phone to scan the barcodes on purchased items, and having your bank account debited or our credit card charged.

Miscellaneous: A multitude of possibilities, for example, an App to determine whether a surface is level, an App to measure sound amplification and a microphone if there is a need to amplify one’s voice.

At the moment, the kids use the Smart Phone more than anyone. They have the device seemingly glued to the palm of their hand, and adults cannot pry it away. However, they mainly use it to text colleagues, take photos and videos and place them onto the social media that they facilitate so easily. However, ask them a question about some event in history, and they will feign ignorance, until you point to or mention what is glued to their hand. What they are demonstrating is that they have not yet realized that it is also an extension of the brain’s memory. Most of us adults are only gradually discovering the same principle. Further, both the youth and the adults are all learning that with Apps the Smart Phone can be used for virtually anything.


The impact of these digital devices has had on jobs over this past century can be summarized as follows.


Vacuum Tubes: Countless companies making these tubes all over the United States went out of business. The transistor never wears out, so TV and radio repairmen who replaced the failed tubes are no longer needed. Electronic mail and texting from a cell phone eliminates a paper based message sent by regular mail and handled by the Post Office. Because of this and the handling of packages by FedEx and UPS, the Post Office revenue has been cut severely causing a current deficit of $2 Billion per quarter.

Google Search Engine
Google has organized the access to the endless knowedge on the Internet so that the encyclopedia, text book, dictionary and/or a library are becoming obsolete.

Digital Camera
The digital camera replaced the film camera. This led to the collapse of Kodak and other such companies. An entire industry has been wiped out.

The I-Pod
This device which allows the owner to download tunes from the Internet, has destroyed the 100 year old traditional recording industry from the manufacturer of the recording such as the CD, the manufacturer of the CD player and the store that sold the CD recordings.

The Kindle
The invention of the electronic book will eventually put the paper book industry out of business from log to library. Borders one of the largest book sellers already closed its 511 US stores in 2011, and many libraries are beginning to feel the impact.

The Internet
Newspapers and magazines have been cutting back or going out of business completely. Texting and e-mail are replacing typed and hand-written letters sent by regular mail and handled by the Post Office. Because of this and the handling of packages by FedEx and UPS, the Post Office revenue has been cut severely causing a current deficit of $2 Billion per quarter. Only the older generations are getting their news and information from papers and magazines and books. When they are gone in a decade or two, who will be left to buy newspapers, magazines and paperbound books?

Having just seen what the new technology as embodied in the Kindel and the Smart Phone is doing to the printing industry and to the music industry, does anyone really believe the invasion will stop there? The answer is no! The only question is which industry will be attacked next? Future blogs will address that question!