assignment 3 exploring information technology trends

Trends in the Information Technology sector

Subscribe to the center for technology innovation newsletter, makada henry-nickie , makada henry-nickie executive director - jpmorgan chase & co, former nonresident fellow - governance studies kwadwo frimpong , and kwadwo frimpong research associate hao sun hao sun assistant professor, department of government and public affairs - gallaudet university, senior research analyst, center for technology innovation - the brookings institution.

March 29, 2019

• 41 min read

The U.S. leads the global landscape in technology innovation. The country’s competitive edge, according to the World Economic Forum’s 2018 Global Competitive Index, is due to its business dynamism, strong institutional pillars, financing mechanisms, and vibrant innovation ecosystem. 1 Innovation is a trademark feature of American competitiveness and has powered its global dominance since the post-World-War industrial revolution. Countries that lead the world in generating advanced technologies and leveraging the full productive capacity of their digital economies can gain a strategic competitive advantage.

Figure 1: Global distribution of top 100 digital companies and market capitalization (US $billion)

Digital technologies have risen to prominence as a critical determinant of economic growth, national security, and international competitiveness. The digital economy has a profound influence on the world’s trajectory and the societal well-being of ordinary citizens. It affects everything from resource allocation to income distribution and growth.

But how do we measure the digital economy and its contributions to growth and pertinent social indicators? Watanabe (2016), Brynjolfsson (2018), Nakamura (2018), Moulton (2018), and many other experts acknowledge the difficulty of precisely evaluating a digital economy characterized by rapidly changing products and services. Researchers estimate that “the digital economy is worth $11.5 trillion globally, equivalent to 15.5 percent of global GDP and has grown two and a half times faster than global GDP over the past 15 years.” 2

For its part, the Bureau of Economic Analysis (BEA) attributes the challenges of measuring the digital economy to a lack of consensus around activities included in the definition and the rapid pace at which the underlying nature of digital technologies evolves. The BEA estimates that the U.S. digital economy grew at an annual average rate of 5.6 percent between 2006 and 2016 and “accounted for 6.5 percent of current-dollar GDP.” 3

“Tracking the digital economy’s growth trajectory is essential because it serves as an integral forward-looking barometer of U.S. economic growth and international competitiveness.”

National statistical accounting challenges notwithstanding, tracking the digital economy’s growth trajectory is essential because it serves as an integral forward-looking barometer of U.S. economic growth and international competitiveness. Conceptually, the digital economy comprises goods and services that either were produced using digital technologies or include these technologies. The information and communications technology (ICT) industry stands at the center of much of this activity, underpinning the digital economy and serving as a reliable yardstick of its performance. Niebel (2018) confirms the link between ICT industry investments and economic growth, finding that between 1995 and 2010, “ICT contribute[d] substantially to economic growth” for developed, developing, and emerging countries. 4

In the digital era, innovation, entrepreneurial dynamism, and information and ICT production will drive America’s competitive edge. The ICT industry and ICT-enabled industries make important contributions to economic growth. This paper attempts to value those contributions and benchmark the importance of the ICT sector in the U.S. economy by assessing its contributions to economic growth, job creation. The sector’s downstream contributions to the small business ecosystem and investments in reskilling and upskilling initiatives are examined. Finally, systemic challenges related to data privacy, trade, and immigration facing the sector are reviewed.

Benchmarking global competitiveness

Deep investments in ICT assets: Computer hardware, software, and internet, and broadband infrastructure, for example, are crucial determinants of growth in advanced economies. An OECD study by Vincenzo Spiezia posits that increased GDP growth and country-specific global competitiveness can be primarily attributed to growth rates in ICT investment. 5  The impact of ICT assets, measured as the value of ICT-capital services as a percentage of GDP, is instructive in assessing the ICT sector’s full growth contribution. And on that front, the U.S. has secured a global lead, maintaining relatively strong competitiveness compared with other OECD member states. India and China have emerged as front-runners in this space, particularly with respect to the high levels of capital (or capital services) that ICT assets bring to GDP growth.

In addition to the demonstrated positive impact from ICT sectors on the total economy, a transformational shift has occurred from the ICT manufacturing sector to the ICT service sector. This move from a hardware- to software-centric level of growth has been particularly pronounced in developing countries due to deeper and wider mobile-cellular networks. 6 Moreover, the maturing mobile ecosystem has been fueled by greater accessibility among mobile internet users and the affordability of smartphones and portable devices.

Figure 2: IT service output of 4 economies, 2005-2015

Beyond the increasing contributions of ICT-services to GDP growth, investments in the ICT sector have significantly boosted labor productivity. 7 In this area, the U.S. economy has maintained its global leadership position with despite only incremental increase in wages from $62 per hour in 2005 to $71.2 per hour in 2015. China and India have also benefited from prior structural investments in ICT sectors, especially in terms of internet infrastructure and mobile operating platforms.

The McKinsey Global Institute notes the economies of scale that mobile users and the proliferation of e-commerce have brought to ICT sectors. 8 These emerging developments have benefited from ICT investment and doubled labor productivity between 2005 and 2017. Conversely, such high levels of productivity have remained notably absent in most OECD member states; their median of labor productivity has only increased incrementally to $54 per hour despite holding historical advantages at $51 per hour.

Figure 3: Labor productivity per hour worked in 2017 US$, 2005-2017

Spending on R&D innovation has spurred labor productivity and the integration of ICT with the broader economy. The U.S. is a clear front-runner in this category: Total spending on R&D grew from $268.6 billion in 2000 to $496.6 billion by 2015 (Figure 4). While OECD peer countries increased their spending during this period only incrementally, India and China have made substantial R&D investments (in terms of total dollar amount)—eclipsing the investment totals of all other nations. India’s spending on R&D tripled, whereas China’s spending increased more than tenfold. These substantial investments in innovation have bolstered the swift transformation of these countries’ economies.

Figure 4: Domestic expenditures on R&D innovation, 2005-2015

In light of these developments, the U.S. and other OECD members should continue to prioritize investment in ICT at the state and local levels to maintain global competitiveness and boost labor productivity. Targeted ICT investments in 5G technologies and infrastructure along with R&D innovation combine to bolster the digital economy and accelerate the ICT-sector’s diffusion effect to less technologically-intensive sectors. Policy-guided investments can augment the capital contributions that ICT sectors make toward GDP growth and will boost labor productivity as a result.

Taking all these factors into account, it is evident that the IT industry is central to the digital pivot for developed and developing countries. In the U.S., the industry’s share of real economic growth has risen steadily since 2007, propelling the sector to relative prominence. Accelerated adoption of rapidly developing technologies such as cloud computing, robotic automation, artificial intelligence (AI), machine learning, the internet of things (IoT), and 5G technologies is promising for the IT industry and should promote ongoing growth.

U.S. information technology sector

Within and outside information technology (IT), the U.S. has delivered slow and steady economic growth since emerging from the financial crisis. U.S. GDP growth averaged 2.3 percent between 2010 and 2018, according to BEA figures. Diving below aggregate GDP statistics reveals a diverging growth story within which the services-producing sector headlines as a growth protagonist. Services-producing industries, which account for more than 80 percent of total output, have anchored much of U.S. economic performance and post-crisis recovery.

The IT industry is growing in dominance within the services-producing sector, powered in large part by a vibrant technology sector. But the industry is relatively small in absolute size, accounting for only 6 percent of the total economy, says BEA.

Figure 5: Industry contributions to changes in real gross domestic product

The ICT sector is a growth powerhouse, despite its diminutive stature. Over the last four years, the industry has driven remarkable gains, powering real economic growth and employment. The proliferation of digital technologies will continue to bring unprecedented structural changes to the U.S. economy, cementing the IT industry’s position as a leading source of growth and employment. Yet exactly how the IT industry will shape various aspects of the economy remains difficult to predict.

What is clear, is that the IT industry has expanded since the Great Recession, outpacing the value-add contributions of goods-producing industries to gross domestic output (Figure 5). Declining prominence in goods-producing sectors is not exclusive to the U.S., in fact this trajectory is consistent with similar trends in OECD peer countries and other advanced economies.

More broadly, the IT industry is an important contributor to the burgeoning digital economy and feeds the domestic economy through two primary channels: the production of cutting-edge technologies and the distribution of scale of innovation across other economic sectors. The IT services sector distributes innovative technologies from consulting services to downstream business organizations seeking to improve efficiency, generating significant multiplier effects across the industry value chain. IT spending on services, infrastructure, and software is on track to rise to $3.8 trillion, according to Gartner’s forecast, a 3.2 percent increase from $3.7 trillion in 2018. 9

The IT industry is also impressively robust. It persevered through the U.S. economy’s slow recovery, growing from an annual value-add of $835 billion in 2008 to $1,480 billion in 2017—an increase of 77 percent (Table 1). The services-producing sector, though much larger, grew 20 percent over the same period. Meanwhile, the goods-producing sector posted a modest 5 percent increase to real economic growth.

Table 1: Value-add produced by industry, selected years ($ millions)  

(Source: U.S. Bureau of Economic Analysis) 10

In 2017 alone, the IT industry’s contribution to real economic output exceeded that of the professional and business services, finance and insurance, and manufacturing sectors, according to BEA figures on industry contributions to GDP. Although the industry has inspired sweeping business model changes and produced considerable business value across the value chain, the effects of mounting IT investment spending will likely be dampened by rapidly decreasing costs of technological solutions, driven largely by automation. Despite the changing cost structure of the technological distribution channel, growing IT spending should continue to have a net positive impact on the industry and on aggregate real economic output.

Industry composition and anticipated trends

Analyzing aggregate growth trends in the IT industry provides a useful but incomplete picture of the sub-industries that are critical to its growth and the broader economy. The industry is composed of three major sub-industry groups with related yet distinct core production activities: semi-conductors and semi-conductor equipment, software and services, and technological hardware and equipment.

Examining disaggregated growth patterns within the IT industry can clarify how prior performance has underpinned its overall trajectory. According to BEA figures, the broadcasting and telecommunications industry is the largest in absolute size but generated 14 percent of the IT industry’s growth gain between 2007 and 2017—the lowest rate for all sub-groups. By contrast, the data processing, internet publishing, and publishing industries (including software) produced tremendous growth rates that belie their size. The data processing, internet publishing, and other information services sector increased its contribution to GDP threefold between 2007 and 2017, ballooning from a value-add of $65.2 billion to $263.6 billion. Meanwhile, the publishing industries sector (including software) saw its share of real economic growth rise by 39 percent.

“An increasingly digital economy, driven by non-physical outputs (e.g., service delivery, software, and computing), will be the centerpiece of the U.S.’s global competitive advantage.”

An increasingly digital economy, driven by non-physical outputs (e.g., service delivery, software, and computing), will be the centerpiece of the U.S.’s global competitive advantage. However, quantifying precise value-add contributions is difficult under the current growth accounting framework. Classifying ICT services is especially challenging, as grouping this sub-industry’s primary production activities blurs the lines between services provided and technology produced.

Data processing, internet publishing, and other information services are the fastest-growing segments of services-producing industries. Rapid adoption and commercialization of digital technologies in non-ICT industries, which have inspired substantial productivity gains, may also lead to severe underappraisal of the value-add contribution of the IT industry and its overall employment gains.

The demand for IT-based services is disproportionate across many industry verticals; however, certain sectors present appealing opportunities for revenue generation for IT service providers. Whereas aggregate IT spending is expected to rise on a global scale, growth will be unevenly distributed across key geographical markets: North America (the U.S. and Canada); the Asia-Pacific region; Europe, the Middle East, and Africa (EMEA); and Latin America.

Table 2: Worldwide forecast of spending on core IT services, 2017-2019 ($ billions)

(Source: Gartner (2018). Gartner Says Global IT Spending to Grow 3.2 Percent in 2019. Retrieved from https://www.gartner.com/en/newsroom/press-releases/2018-10-17-gartner-says-global-it-spending-to-grow-3-2-percent-in-2019)

North America will constitute the bulk of worldwide IT expenditures from 2015–2019 and is expected to gross more than $1 trillion in spending in 2019. The EMEA region is estimated to be the second-largest source of regional spending, with Asia-Pacific coming in third due to a contraction in growth in most Asian economies. 11

Enterprise software is forecasted to be the predominant driver of growth in overall IT spending in 2019 at 8.3 percent, followed by IT services at 4.7 percent. 12  Devices, a segment driven by an increase in the average selling prices of mobile phones, will experience moderate growth (2.4 percent) in 2019, a slight downturn from 3.6 percent in 2018. Counterintuitively, data centers and communication services will exhibit the most sluggish growth of all segments (1.6 percent and 1.2 percent, respectively) in 2019, declining sharply from the preceding year (6 percent and 2.4 percent, respectively). 13

Emerging technologies such as AI, IoT, and blockchain will continue to influence the IT industry into 2022. While growth in expenditures on traditional technologies (hardware, software, services, and telecom) is expected to largely mimic the single-digit GDP growth over this period, growth in advanced technologies is anticipated to be much more prolific, stretching into the double digits and commanding an increasingly greater share of total IT spending. 14

“As spending on legacy technology systems declines, growth will be driven by key platforms: cloud, mobile, social and big data, and analytics.”

As spending on legacy technology systems declines, growth will be driven by key platforms: cloud, mobile, social and big data, and analytics. A growing share of technology spending will be diverted toward newer capabilities such as AI, robotics, and augmented reality, fueled in part by the cost savings generated by cloud-based technology and automation. 15  The business industry’s shift toward innovation and growth from cost reduction has been fueled by ongoing modernization and wider accessibility to cloud-based services. According to a recent Deloitte survey on everything-as-a-service (XaaS) capabilities, “For companies in which more than three-quarters of the enterprise IT is XaaS, and in companies that have been using flexible consumption for more than three years, ‘accelerated innovation’ has overtaken ‘reduced costs’ as a key priority for their XaaS initiatives.”

A spike in consumer demand for flexible pay-as-you-go models coupled with large IT companies integrating costly cloud-based tools with enterprise systems has brought the cloud to the mass market. Consequently, high-end technologies such as AI and IoT—tools normally restricted to a select few large companies and innovative startups—have been made available to a range of small, medium, and large-sized firms. 16

AI has spearheaded this explosive trend; large companies have sought to integrate AI into cloud-based technologies and have delivered these tools on a mass scale. This evolution has cemented the status of cloud and other software-as-a-service capabilities as a core platform for growth within IT-service-based and business industries. 17

This shift toward innovation is no more evident than in the rapid proliferation of enterprise software systems, projected to be the fastest-growing IT segment worldwide in 2019. The convergence around this inflection point toward enterprise cloud-based digital transformation and innovation will remain a key source of opportunity for IT-service-based providers.

Automation will undoubtedly shape the IT industry’s future as well. Automation offers the potential to improve productivity by introducing robots and AI into the workplace. These tools will help employees complete more tasks and leverage human capabilities. Automated processes and digital assistants can also facilitate worker productivity, bringing substantial benefits to the macroeconomy.

These developments are promising for productivity, but their impacts on workers remain to be seen. Organizations may be able to do more with fewer people. If that happens, society at large could be threatened as fewer workers would be needed to service the economy; if companies can get by with fewer employees, job prospects will certainly be affected.

New jobs will undoubtedly be created in this scenario, and the demand for data sciences, coding, digital platforms, and e-commerce will grow—but aside from delivery jobs, it will be difficult for affected workers to develop the skills needed in these areas. The mismatch between skills required and workers’ capabilities will necessitate the expansion of worker retraining programs.  

Distributing ICT impact

The rapid rise of the digital age and the IT sector has shaped nearly all contours of the U.S. economy, helping to fuel upstream and downstream growth in employment and productivity, small businesses, and corporate investments in workforce training for the digital age.

Since 2006, the IT industry has experienced drastic shifts in its conventional to current form of production and related service delivery. The BEA has recognized this change and, under its newly released account of the digital economy, introduced a sub-category called the “IT and Related Industry” to capture the growing overlap between information services and professional service delivery.

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According to the BEA, employment in the IT and IT-related industry has grown substantially. Annual growth figures, except during the U.S. subprime mortgage crisis of 2007 to 2009, expanded at almost twice the rate of the total employment market from 2006 to 2016. 18 The highest annual growth rate reached over 4.1 percent in 2014, double the employment growth rate of the total economy in the same year.

Based on data from the U.S. Bureau of Labor Statistics regarding projected employment in the year 2026, service-providing industries are expected to account for the majority of 11.5 million newly created jobs. 19 Among the top five fastest-growing industries over the next decade, the IT-related industry holds two positions: Professional and business services together with professional, scientific, and technical services will account for 15.4 percent of projected new jobs.

In addition, the total U.S. economy is anticipated to expand job opportunities at a compound annual increase of 0.7 percent from 2016 to 2026. The professional and business service industry will be a burgeoning driver in creating potential job opportunities at a compound annual increase of 1 percent during this time frame. Jobs within the traditional IT industry are only projected to grow at a compound annual increase of 0.2 percent by comparison, slower than average within the total economy.

ICT powering jobs

The IT industry was the most promising domain with respect to job creation between 2006 and 2016. The industry’s employment growth trajectory becomes more apparent through a disaggregated picture at the sub-industry level, which reveals incremental shifts within the total sector, especially in professional service delivery.

BEA defines the professional service delivery sector as comprising the three main segments: 1) legal services; 2) computer systems design and related services; and 3) miscellaneous professional, scientific, and technical services. On aggregates, the professional services sector significantly expanded between 2006 and 2017. Conventional legal services sector posted slower growth rates, whereas the other two sub-sectors grew considerably, particularly the computer system design and related services industry. Such growth led to a near doubling of job creation numbers during the same period. 20

Job growth patterns at the sub-industry level highlight IT service delivery as a major contributing factor to the professional service delivery sector. Job growth in this sector also signifies further integration of the IT service industry with other-sector economic activities. This trend exemplifies the role of the IT service delivery industry in supplying services to other sectors and its influence on the expansion of the U.S. job market.  

Productivity impact

In addition to the employment boost provided by the IT and related industry, associated industry productivity has grown as well. The average GDP output per employee in the IT and related industry was more than twice the average productivity of the total economy from 2006 to 2016. Based on estimates of BEA figures, annual GDP output per employee within the IT and related industry increased from $321,659 to $408,129. Meanwhile, GDP output per employee within the total economy only increased from $120,876 to $132,873 during the same time. 21

When examining productivity of the IT and related industry, it is important to include its digital spillover value towards non-ICT industries. Huawei and Oxford Economics (2018) assert that a robust digital economy includes direct digital products along with digital spillovers from primary digital industries to secondary, non-digital industries. In such an accounting framework, Huawei and Oxford argue that “digital spillovers” should play a key role in estimating the true productive capacity of a digital economy. 22  A prime example of increasing integration between the ICT and non-ICT sectors is the ICT sector’s consistent contribution to the productive capacity of other sectors; between 2006 and 2016, the ICT industry accounted for more than 11 percent of the total supply of commodities and services within the U.S.

Despite its relatively small size as measured by GDP output statistics, the ICT industry has played an instrumental role in driving economic growth and employment within the U.S. economy.

Downstream impact on the small business ecosystem

A dynamic ICT industry serves as a prominent growth mechanism in the small business ecosystem, delivering downstream value and boosting productivity. Small business enterprises (SBEs), defined as companies with fewer than 500 employees, are the backbone of the U.S. economy and account for more than 99.7 percent of the 5.6 million U.S. employer firms, comprising an essential constituent of the IT industry. 23

Through varied platforms and cost-effective access to cutting-edge technologies, small businesses have the foundational support to spur innovation, commercial collaboration, and important knowledge transfers within the small business sector. These benefits will emerge in more pronounced ways as newer digital technologies (e.g., cloud-based services) mature and penetrate non-ICT segments.

More traditional tech tools, such as mobile applications, will also grow to critical mass in the small business value chain. This proliferation of modern tech-based solutions is key; according to the U.S. Chamber of Commerce’s Q-2 2018 Small Business Index, “Companies that feel ahead of the technological curve are more likely to feel better about their business and cash flow and are planning to hire at a higher rate.”

Table 3: U.S. Chamber of Commerce Small Business Index (2018, Q2)

(Source: Figures adapted from U.S. Chamber of Commerce Small Business Index [2018])

Tools such as cloud computing, big data, and customer-relationship management systems are similarly central to tech-optimism. Not only do these innovations help businesses assimilate into the digital ecosystem, but small businesses’ willingness to invest in these capabilities and other IT-related services exposes them to better local market opportunities and profit margins.

Additionally, according to a survey by the U.S. Chamber of Commerce, higher technology adoption rates are tied to confidence in small business health and cash flow—essential conditions for successful scaling in the small business ecosystem. SBEs, driven in part by their readiness to spend on IT services and infrastructure, will emerge as an important consumer constituent to the ICT services industry.

ICT software and platform infrastructure are providing unprecedented opportunities for small businesses to scale without the commonly accompanying price tag; historically, these factors represented major barriers to technological adoption in small business markets. Recently, however, a mass transition to cloud-hosted accounting software applications unfolded within the small business ecosystem and laid the groundwork for other systems’ entrance thanks to cloud-based applications.

Cloud-based technologies represent another game-changing opportunity for small businesses, offering access to new markets and bringing unexpected benefits to the value chain. Lund and Tyson (2018) point out that the benefits of digital technologies in the small business ecosystem carry implications for global trade patterns. They further contend that online marketplaces/platforms are critical mechanisms for trade growth, especially as smaller transactions increase in scale and relevance for economic growth. The evolutionary rise of micro-multinational enterprises with access to new markets has been made possible thanks to retail intermediaries such as Amazon in the U.S. and Alibaba in China, which host 2.0 million and 10.0 million third-party sellers (micro-multinational enterprises), respectively.

“Cloud-based technologies represent another game-changing opportunity for small businesses, offering access to new markets and bringing unexpected benefits to the value chain.”

Cloud-based technologies also hold great promise for the small business ecosystem as a defining digital technology with a demonstrated capacity to positively disrupt the value chain. In a survey assessing small business openness to cloud computing technologies in Australia, Fakieh et al. (2016) observed that small companies were motivated to adopt cloud-based technologies because of cost savings for firms with limited budgets and substantial returns on productivity and business outcomes. 24  Additionally, the authors note that affordable cloud computing technologies are essential to boosting SME productivity and business outcomes. According to Cisco’s Global Cloud Index, private and public cloud workloads are expected to increase appreciably by 2021 and to grow by compounded annual growth rates of 27 and 73 percent, respectively. 25  The Global Cloud Index expects software-as-a-service (SaaS) to be the primary driver behind cloud-service delivery models; in fact, SaaS is expected to account for 75 percent of global cloud workloads by 2021.

SaaS and platform-as-a-service will also facilitate the transformation of big data, AI, and machine learning analytics into accessible technologies for small businesses. Luo and Bu (2015) state, “ICT significantly facilitates effective knowledge sharing and knowledge integration, which further bolsters value chain integration and synergy development among primary and support activities of a value-chain system.” 26  A stream of emerging research continues to add credible evidence to the role of the ICT sector as a growth-enabling channel that enhances small business productivity, competitiveness, and ultimate value-add to domestic economic growth.

ICT sector shaping the future of work

ICT technologies are essential productivity and growth inputs, but fully exploiting the potential of digital technologies is predicated on a capable workforce that can convert technical knowledge into productive outputs. Growth trends in ICT sectors worldwide and a highly skilled workforce shape management decisions when choosing corporate headquarters and manufacturing centers. For example, in an interview with Fortune Global Forum, Apple CEO Tim Cook emphasized the importance of a highly skilled workforce in attracting manufacturing business:

“China has moved into very advanced manufacturing, so you find in China the intersection of craftsman kind of skill, and sophisticated robotics and the computer science world. That intersection, which is very rare to find anywhere, that kind of skill, is very important to our business because of the precision and quality level that we like.” 27

Cook’s rationale for selecting China as Apple’s manufacturing home base for the iPhone was more about China’s skilled workforce—in terms of quality and quantity—than the low cost of labor. Cook argues that in China, “You could fill multiple football fields” with tooling engineers; in the U.S., however, “I’m not sure we could fill the room.” Cook connects the competitive advantage of China’s skilled workforce to a longstanding priority on applied vocational training within the country’s education system. Building a highly skilled workforce is vital to maximizing the ICT sector’s productivity growth potential and sustaining America’s global competitive advantage.

Workforce challenges are most acute for the ICT industry given its growth trajectory and leadership on the digital technology frontier. Arguably, the sector is at the forefront of 21 st -century human capital challenges, including skill mismatches, skilled-worker shortages, and attracting and retaining highly skilled workers in tight labor markets. According to the World Economic Forum, “By 2022, no fewer than 54 percent of all employees will require significant reskilling and upskilling.” 28

While broadening technological adoption has been tied to industry growth, the widening collection of digital technologies compounds these labor market trends. Increased access to IT infrastructure and digital technologies continues to shape workforce needs within the IT industry as well as non-IT sectors. As a consequence, organizations are rapidly integrating emerging technologies into their business processes and accelerating the transformation of their workforce needs.

Beyond large enterprises such as General Electric Company, Verizon, and Lockheed Martin, each of which is making substantial investments to upskill and retrain their workforce, a large gap remains in robust workforce preparedness across the industry. According to Towers Watson, “90 percent of maturing companies expect digital disruption, but only 44 percent are adequately preparing for it.” 29

Nonetheless, those that are making significant strides to address human capital challenges are doing so through a combination of the following approaches: 1) retraining their existing workforce; 2) defining new skill sets and recruiting fresh talent to fill emerging gaps in business; and 3) leveraging automation. 30

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Amidst a “reskilling revolution,” hiring and developing a company’s talent pool from within, rather than competing with large industry peers and smaller innovative companies, has been increasingly lauded as the new “recruiting tool” and a more effective model to bridge the technical skills gap. Retraining existing talent rather than relying on external hiring is less costly; turnover costs can equal as much as 16 percent of an hourly-waged employee’s compensation or 213 percent of the salary for a highly trained position. 31  Additionally, retraining allows companies to build upon their workforce’s institutional knowledge and not lose valuable time waiting for newly acquired workers to adjust to company practices.

In many instances, the rapid evolution of digital technologies shortens the effective shelf-life of technical skills, which complicates the debate on identifying a cogent national workforce strategy to address skill shortages. In the meantime, relying on internal reskilling programs represents an anodyne response to the growing concern of skills mismatch in the intensely competitive ICT sector that allows industry leaders to boost market competitiveness. However, program adoption is unevenly distributed across the ICT sector, and many companies continue to rely on a mix of workforce strategies to assuage workforce challenges.

AT&T has emerged as an industry leader in workforce retraining initiatives and has adopted two main strategies to equip 95 percent of its workforce with highly sought-after skills by 2020. 32  First, it has invested in creating new career pipelines to attract entry-level talent. Second, it has invested in a variety of training schemes, including a $1 billion web-based global retraining program comprised of online courses; academic-degree-based partnerships with Coursera and leading universities such as Georgia Tech; and an online portal that allows employees to follow a career road map to transition into new roles.

AT&T’s investments have been paying off: Employees who are retraining are twice as likely to be hired into advanced emerging occupations (e.g., data scientists) and four times as likely to advance in their careers. AT&T’s success in and commitment to building an internal program rather than relying on external hiring has become a model for other IT leaders who are slowly adopting the same approach.

Similarly, IBM has committed $1 billion to training and development programs for its U.S-based employees over the next four years. 33  However, the company’s initiatives are unique in its attempts to make career inroads into the IT industry more accessible to a wider pool of candidates rather than a select few. First, the company has issued over a million digital badges in every country–digital credentials that showcase completion of a class or training and serve as a signal to IBM and the broader labor market of newly acquired skills. Second, IBM is recruiting highly skilled candidates through its “New Collar Certificate Program” by placing a premium on sought-after skills as opposed to formal academic credentials like a four-year degree. Regardless of where the skills were attained (i.e., at a coding boot camp or community college), there will be roles at the company for these applicants as long as they possess the requisite capabilities.

Ultimately, due to the nature of contemporary jobs and the diversity of workplace settings, online learning content and micro-learning are sure to become increasingly popular among organizations to boost business value in the digital economy.

Future challenges

Regulatory uncertainty and the rise of massive security breaches present major challenges for the IT industry moving forward. The proliferation of AI, machine learning, and robotic automation technologies across leading IT service companies supports the industry’s robust outlook. However, widespread security concerns place millions of consumers and the small business ecosystem at risk. What’s more, the radical shift in political attitudes around critical domestic issues (particularly trade and immigration) calls the industry’s future into question. Ambiguities around data privacy, cybersecurity, and trade warrant particular attention.

Data privacy

Political tides are influencing the ICT industry with regard to data protection and broader concerns. In terms of regulations, escalating trade tariff frictions between the U.S. and China concerning trade imbalances have deflected attention from the silent rise of regional data protectionist policies. In 2018, China, India, and Vietnam introduced data protectionist legislation to circumscribe cross-border data flow.

These sovereign governments have pointed to data protection as paramount in mandating local storage of consumer data. Regardless of the motivating factors, such restrictions limit the free flow of data across international borders with important consequences for the IT industry. Potential outcomes include increased compliance risks, growing infrastructure costs to maintain fractionalized enterprise data storage systems, and a corresponding rise in investments to navigate transient compliance requirements.

“Digital privacy protection is of critical importance in a vibrant digital society that respects consumers’ rights to control access to their data and balances safeguards within an ecosystem that supports innovation and growth.”

Digital privacy protection is of critical importance in a vibrant digital society that respects consumers’ rights to control access to their data and balances safeguards within an ecosystem that supports innovation and growth. However, the pace of massive data breaches has eclipsed regulators’ ability to constrain these events and improve institutional accountability.

The lack of a cogent national regulatory framework to address data privacy challenges emerging from massive amounts of business and consumer-related data, coupled with shifts in individuals’ privacy preferences, presents inherent threats to the IT industry. Operational planning is particularly at risk. The absence of clear, consistent signals from federal authorities on the future of data privacy regulation in the U.S. could be costly for the IT industry, along with non-IT stakeholders. Nevertheless, two regulatory models provide insight into future directions for an eventual U.S. policy on digital privacy.

Globally, Europe’s General Data Protection Regulation (GDPR) provides a regulatory model that, at its core, aims to protect consumers and increase control over their personal data via informed consent. GDPR also incentivizes enterprise compliance and accountability through punitive fines.

Domestically, the state of California has emerged as a vanguard in data protection, promulgating The California Consumer Privacy Act  (CCPA) as a legislative response to data privacy concerns. CCPA closely parallels GDPR’s structural design and reliance on penalties for non-compliance. GDPR and CCPA also converge on the importance of data privacy for consumers. Despite obvious consumer benefits, these regulatory regimes present substantial non-compliance risks for the IT industry in terms of pecuniary harms and reputational damage.

Trade and immigration tensions

The political landscape also carries major implications for global trade and the flow of workers across borders, heightening the complexities associated with cross-border movements of diverse forms of capital. National political arguments prioritizing domestic economic interests have supplanted transnational and global cooperative relationships that have been the hallmark of trade norms for the last several decades. Conversations around cross-border movement are now generating tangible policies rather than abstract political discussion. The recent partial shutdown of the U.S. government offers worrisome evidence of this shift and exacerbates financial instability as a consequence of the U.S.–China trade wars, which have adversely affected financial markets around the world.

What’s more, anti-immigrant populist sentiment influenced the Brexit referendum vote, which mandated the U.K.’s exit from the European Union. Beyond the destabilizing economic uncertainty stemming from this vote and subsequent political stalemate around plans to implement a required exit, the anti-immigration agenda was clear. Immigration friction sentiments formed a critical flashpoint of the Brexit discourse, one that has since been replicated in the German and U.S. elections.

Besides this, negative sentiments toward immigrant labor have shaped political debates and national policies that promote closing borders to important labor flows of highly skilled immigrants. Recently, through a series of legislation under the “Buy American/Hire American” executive order, the U.S. has applied greater scrutiny and more stringent requirements to employment-based immigration (specifically the H-1B temporary foreign worker visa). These impending laws are expected to disproportionately affect the ICT industry. According to the Department of Labor’s H1-B visa statistics, 57.6 percent of certified positions for FY 2018 were related to jobs in computer programming and software development fields; in FY 2017, computer-related occupations accounted for 70 percent of successfully awarded visa applications.

On Feb. 22, 2019, the Department of Homeland Security proposed a ban on the work authorization of 100,000 H-4 visa holders—a special work authorization for spouses/children of H-1B visa holders who are awaiting permanent residency status—reducing the attractiveness of the U.S. to foreign workers and their dependent families. With foreign workers and H-1B holders constituting most of the talent pool in large tech companies, such a development could greatly disrupt companies’ business models and workforce strategies. Final implementation is uncertain given anticipated legal challenges to the proposed rule.

Furthermore, recently implemented administrative changes to the H-1B visa lottery compound the effects of anti-immigrant labor market policies. Despite the unknown final impact of the lottery change, summarily these rules and regulations alter competitive dynamics among highly skilled workers. By reducing the dominance of large IT staffing firms (e.g., Tata Consultancy Services, Infosys, and Wipro) in employment-visa based petitions with candidates who fail to fit “highly skilled occupational requirements,” many major tech firms will lose out on a valuable talent source of permanent and temporary workers. To that end, heightened workforce pressures across the ICT industry will likely cause many IT firms to relocate more operations offshore to compensate for the shortfall in domestic-based foreign talent if workforce training efforts cannot meet the industry’s demand for highly skilled workers.

The IT industry is shaping the U.S. economy in several important ways, most notably with respect to sectoral innovation, economic growth, overall business operations, and regulatory policy. It is clear that the industry, despite its relative immaturity compared with more established sectors, will remain a key player in the nation’s economic landscape. However, its prospects are tempered by looming issues related to international affairs.

“It is clear that the IT industry, despite its relative immaturity compared with more established sectors, will remain a key player in the nation’s economic landscape.”

In the long run, closing borders presents significant risks to the IT industry and may come at the expense of the industry’s innovation, competitiveness, and capacity to develop and distribute products and services. Ensuing responses to the turbulence around trade wars, immigration, and cross-border communication will guide the industry’s development in potentially drastic ways. Such changes, however difficult they are to forecast, will likely bring ripple effects to IT and related industry as well as the economy at large. Industry experts should thus continue to monitor developments in IT and adjacent areas carefully to safeguard its evolution, provide targeted workforce recommendations, and devise appropriate protectionary measures for businesses and consumers.

The Brookings Institution is a nonprofit organization devoted to independent research and policy solutions. Its mission is to conduct high-quality, independent research and, based on that research, to provide innovative, practical recommendations for policymakers and the public. The conclusions and recommendations of any Brookings publication are solely those of its author(s), and do not reflect the views of the Institution, its management, or its other scholars.

Apple, AT&T, Cisco, IBM, Lockheed Martin, and Verizon are donors to The Brookings Institution. The findings, interpretations, and conclusions posted in this piece are not influenced by any donation. Brookings recognizes that the value it provides is in its absolute commitment to quality, independence, and impact. Activities supported by its donors reflect this commitment.

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• ”Private Services-Producing” consists of the following: utilities; wholesale trade; retail trade; transportation and warehousing; information; finance, insurance, real estate, rental, and leasing; professional and business services; educational services, health care, and social assistance; arts, entertainment, recreation, accommodation, and food services; and other services, except government. “Private Goods-Producing” consists of agriculture, forestry, fishing, and hunting; mining; construction; and manufacturing. ICT-Producing consists of computer and electronic product manufacturing (excluding navigational, measuring, electromedical, and control instruments manufacturing); software publishers; broadcasting and telecommunications; data processing, hosting and related services; internet publishing and broadcasting and web search portals; and computer systems design and related services.
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Emerging Trends in Information Technology for 2023

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By Matt Rowley Posted on January 27, 2023

The world of information technology is continuously expanding. Staying updated about the latest industry trends can help you whether you're an established professional or just starting out in IT. Knowing what's trending in the industry can help keep your skills relevant to your employers, clients and more.

Here are four trends in IT to follow in 2023.

Trend #1: Artificial Intelligence

Advancements in artificial intelligence are making major contributions in a wide variety of industries, and the market is growing rapidly . These new technologies allow machines and software to think and act independently, which means they can respond and adapt to recognizable patterns in real time.

For example, there are many use cases for AI in manufacturing , including, but not limited to:

• Autonomous vehicles.
• Logistics and supply chain management.
• Warehouse management.

Additionally, AI tools can collect and analyze customer data , providing valuable insights for business leaders . From customer service chatbots to sentiment analysis reports, organizations of all sizes are just starting to understand the numerous potential applications of AI.

Trend #2: Cloud Computing

After declines in spending in 2021, cloud computing is rebounding and continues to be an area in which organizations are making major investments , especially during digital transformations.

Cloud computing offers a convenient option for data storage, and business leaders can also determine levels of access for their team members, providing employees with appropriate levels of access to do their jobs no matter where they are.

Trend #3: Big Data

Data is the backbone of many industries. The term “ big data ” refers to data that is so large, fast or complex that it’s difficult or impossible to process using traditional methods. IT professionals then build sophisticated tools – often using artificial intelligence – to examine the data and find actionable insights .

Trend #4: Virtual and Augmented Reality

While virtual and augmented reality technologies are commonly associated with video games, they have applications in many industries.

For example, surgeons or pilots may use programs that involve virtual simulations that allow them to practice their skills in digital spaces. Virtual reality programs can generate a human body or simulate flight so the surgeon or pilot can learn the skills needed to do their job in a safe environment. Not only do these provide spaces to practice and learn, but they can also be cost-effective in the long term.

Information Technology Education

Following trends in information technology is one way for IT professionals to stay relevant to prospective employers, but another is furthering your education. Many positions in IT now do require a degree , and there are plenty of options available in online education .

Here at Columbia Southern University, we offer online degree programs to help you leverage your passion for technology and gain the skills to help you succeed in an IT career. To learn more about our accredited online degree programs in information systems and cybersecurity, visit our website .

Multiple factors, including prior experience, geography and degree field, affect career outcomes. CSU does not guarantee a job, promotion, salary increase, eligibility for a position, or other career growth.

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11 Emerging Trends in Information Systems

Learning Objectives

• Understand the fundamental concepts and principles of Artificial Intelligence (AI) and Machine Learning (ML), Blockchain, Internet of Things (IoT), Cloud Computing, and Big Data Analytics.
• Analyze how emerging technologies affect various industries, identifying opportunities and challenges in their implementation.
• Apply Big Data Analytics tools and techniques to extract meaningful insights from large datasets.
• Evaluate how integration of Internet of Things (IoT) can impact on operational efficiency, customer experience, and innovation.
• Understand the security features of Blockchain technology and its potential to address issues related to data integrity, privacy, and transparency in business applications.

Introduction

The purpose of this chapter is to provide an examination of some of the emerging trends in information systems. As technology continues to advance at an unprecedented rate, it is essential for organizations to stay ahead of the curve and adapt to the changing landscape of information systems. By understanding and exploring these emerging trends, organizations can gain a competitive edge and enhance their overall efficiency and effectiveness.

As technology continuously evolves, organizations that are able to leverage emerging trends in information systems can gain a significant competitive advantage over their competitors. By staying informed and adapting to these trends, organizations can streamline their operations, optimize their processes, and deliver better products and services to their customers.

Exploring emerging trends in information systems can also foster innovation and creativity within organizations. By keeping up with the latest technologies and trends, organizations can identify new opportunities for growth, develop innovative solutions, and create unique value propositions.

Ignoring emerging trends in information systems can pose significant risks to organizations. By not adapting to these trends, organizations may become obsolete or fall behind their competitors. Therefore, understanding and exploring emerging trends in information systems is crucial for organizations to mitigate risks and ensure their long-term sustainability.

This chapter will cover emerging trends in information systems technology, such as artificial intelligence, blockchain, internet of things (IoT), cloud computing, and big data analytics. These technologies have the potential to revolutionize the way organizations operate and interact with their customers.

Additionally, this chapter will delve into emerging trends in information systems that are specific to certain industries. This includes healthcare informatics, financial technology (fintech), supply chain management, e-learning, and smart cities. By focusing on industry-specific trends, organizations can gain insights into how their sector is evolving and make informed decisions to drive innovation and growth.

Artificial Intelligence and Machine Learning

Artificial intelligence refers to the development of computer systems that can perform tasks that would typically require human intelligence. These tasks may include speech recognition, problem-solving, decision-making, and learning. Machine learning, on the other hand, is a subset of AI that focuses on enabling computer systems to learn from and make predictions or decisions based on data without being explicitly programmed.

AI and ML have numerous applications in information systems. They can be used to automate repetitive tasks, enhance data analysis, improve customer service, and optimize decision-making processes. For example, AI-powered chatbots can provide instant support to customers, while ML algorithms can analyze large datasets to identify patterns and trends that can inform strategic decision-making.

The benefits of AI and ML in information systems include increased efficiency, improved accuracy, enhanced productivity, and cost savings. By automating tasks and leveraging data-driven insights, organizations can streamline operations, reduce human error, and make more informed decisions.

Example: ChatGPT

ChatGPT is a cutting-edge language model developed by OpenAI and released to the public in November 2022.  It is specifically designed to generate human-like text responses in conversational settings, making it a valuable tool for businesses in various industries. ChatGPT’s importance in business lies in its ability to enhance customer service through the use of advanced chatbots and virtual assistants. These AI-powered systems can understand and respond to customer inquiries with remarkable coherence and fluency, thereby improving the overall customer experience and satisfaction. Additionally, ChatGPT can be utilized for language translation and automating communication processes, all of which contribute to increased efficiency and productivity in business operations.

Although relatively new, businesses have already begun to leverage ChatGPT to streamline customer interactions, provide personalized support, and handle a high volume of inquiries with minimal human intervention. This has not only improved customer satisfaction but also reduced operational costs and freed up human resources to focus on more complex tasks. As the platform matures and evolves, new and more complex IS applications will be able to leverage this technology to perform automated, human-like tasks.

Examples of Organizations Utilizing AI and ML Technologies

Many organizations across various industries are leveraging AI and ML technologies to enhance their information systems. For example, e-commerce giant Amazon utilizes AI algorithms to personalize product recommendations for its customers. Netflix uses ML algorithms to analyze user data and provide personalized movie and TV show recommendations. Google employs AI to improve its search engine capabilities and provide more accurate search results.

Ethical Considerations and Concerns Related to AI and ML

While AI and ML offer significant benefits, there are also ethical considerations and concerns associated with their implementation. These include privacy concerns, algorithmic bias, job displacement, and the potential for misuse. For instance, AI systems may collect and process personal data without consent, leading to privacy concerns. Additionally, algorithmic biases can lead to unfair or discriminatory outcomes, and there is a potential for AI to replace human workers, leading to job displacement.

Future Possibilities and Impact of AI and ML in Information Systems

The future of AI and ML in information systems is promising and likely to have a significant impact. Continued advancements in AI and ML technologies will lead to further automation, improved predictive analytics, and enhanced decision-making capabilities. Additionally, the integration of AI and ML with other emerging technologies, such as IoT and blockchain, will unlock new possibilities for organizations.

Blockchain technology is a decentralized and distributed ledger system that securely records and verifies transactions across multiple computers or nodes. It consists of a chain of blocks, where each block contains a set of transactions. Once a block is added to the chain, it cannot be altered or deleted, creating an immutable and transparent record of all transactions.

Blockchain technology has various applications in information systems, offering several benefits to organizations. One key application is in the field of financial transactions, where blockchain can provide secure and transparent methods of conducting payments, remittances, and cross-border transactions. It eliminates the need for intermediaries, reduces transaction costs, and increases efficiency.

Blockchain also has benefits in supply chain management, where it can provide end-to-end visibility and traceability of products. By leveraging blockchain, organizations can improve transparency, track the movement of goods, ensure product authenticity, and identify and resolve issues in the supply chain more effectively.

Another significant application of blockchain is in identity management. It can enable individuals to have control over their digital identities, reducing the risk of identity theft and fraud. Blockchain-based identity systems provide a secure and decentralized method of verifying and sharing personal information.

While blockchain technology offers numerous benefits, it also presents challenges and risks. One major challenge is scalability. As the size of the blockchain grows, the time and resources required to process transactions can increase significantly, potentially limiting its adoption in high-demand scenarios.

Another challenge is the regulatory and legal considerations surrounding blockchain. Different jurisdictions have different regulations, and organizations need to navigate these complexities to ensure compliance.

Additionally, blockchain technology is not immune to security risks. While it has inherent security features, vulnerabilities can still exist in the applications and smart contracts built on top of the blockchain. Organizations need to implement robust security measures and conduct thorough audits to mitigate these risks.

Examples of Organizations Adopting Blockchain Technology

Many organizations across various industries have started adopting blockchain technology. For example, in the financial sector, banks and payment processors like JPMorgan Chase and Visa are exploring blockchain solutions for secure and efficient transactions. Retail giant Walmart is using blockchain to track the sourcing and quality of its products. IBM has also been at the forefront of blockchain adoption, partnering with various organizations to develop blockchain applications in supply chain management, healthcare, and more.

Future Prospects and Potential Advancements in Blockchain

The future of blockchain technology holds great  promise and potential. As the world becomes increasingly digitalized, blockchain has the power to revolutionize various industries, from finance and healthcare to supply chain management and voting systems. One of the key advantages of blockchain technology is its ability to provide secure and transparent transactions.

In the financial sector, blockchain has already begun to disrupt traditional banking systems. With its decentralized nature, blockchain eliminates the need for intermediaries, such as banks, and enables peer-to-peer transactions. This not only reduces costs but also ensures that transactions are executed quickly and securely. Additionally, blockchain-based smart contracts have the potential to automate complex financial transactions, such as loan agreements and insurance policies, making processes more efficient and reliable.

In the healthcare industry, blockchain can address many challenges related to privacy, security, and data interoperability. By using blockchain to securely store medical records, patients can have greater control over their data, while healthcare providers can ensure the accuracy and integrity of patient information. This can lead to improved patient outcomes and more efficient healthcare delivery.

Supply chain management is another area where blockchain technology can have a significant impact. By recording every step of a product’s journey on a blockchain, companies can enhance transparency and traceability. This not only helps to prevent fraud and counterfeit products but also allows consumers to make more informed decisions about the products they purchase.

Furthermore, blockchain can revolutionize voting systems by providing a secure and transparent platform for casting and counting votes. By using blockchain, the risk of tampering or manipulation of votes can be greatly reduced, ensuring fair and trustworthy elections.

While the future of blockchain technology holds immense potential, there are still challenges to overcome. Yet, d espite the challenges, the future of blockchain technology looks bright. With ongoing research and development, we can expect to see even more innovative use cases and applications. 

Internet of Things (IoT)

The Internet of Things (IoT) refers to the network of physical devices, vehicles, appliances, and other objects embedded with sensors, software, and connectivity, enabling them to collect and exchange data. These connected devices can communicate with each other, as well as with humans, over the internet, creating a vast network of interconnected devices.

The IoT plays a crucial role in information systems by enabling the collection, analysis, and utilization of real-time data from various sources. This data can provide valuable insights, improve decision-making, optimize processes, and enhance overall efficiency and effectiveness.

IoT devices can be integrated into information systems to automate routine tasks, monitor and control operations remotely, and enable predictive maintenance. This integration allows organizations to gather data from multiple sources in real-time, analyze it, and make informed decisions based on the insights generated. The ability to gather and analyze data from IoT devices enhances the accuracy and speed of decision-making, leading to improved operational efficiency and cost savings.

Additionally, the IoT can enhance customer experience and engagement by enabling personalized and interactive services. For example, IoT devices can enable smart home systems that automate tasks, such as adjusting temperature and lighting based on user preferences. In the healthcare industry, wearable IoT devices can track vital signs and transmit real-time data to medical practitioners, improving patient monitoring and enabling timely interventions.

Use Cases and Examples of IoT Implementations

There are numerous use cases and examples of IoT implementations across various industries. In the manufacturing sector, IoT devices can be used to monitor and optimize production processes, track inventory levels, and enable predictive maintenance of machinery. In transportation and logistics, IoT devices can enable real-time tracking of shipments, optimize routes, and enhance fleet management.

In the retail industry, IoT devices can be integrated into inventory management systems to track stock levels, automate reordering, and enable personalized shopping experiences. In agriculture, IoT devices can monitor soil moisture levels, automate irrigation systems, and optimize crop production.

Security and Privacy Concerns Associated With IoT

The proliferation of IoT devices raises significant security and privacy concerns. With a large number of interconnected devices, there is an increased risk of cyberattacks and data breaches. IoT devices often have limited security features, making them susceptible to hacking and unauthorized access. Additionally, the collection and sharing of personal and sensitive data by IoT devices raise privacy concerns.

To mitigate these risks, organizations should implement robust security measures, such as encryption, authentication, and access controls, to protect IoT devices and the data they collect. Regular security audits and updates should be conducted to ensure the ongoing security of the IoT infrastructure.

Furthermore, organizations should prioritize user consent and transparency in data collection and usage. Clear privacy policies should be communicated to users, and mechanisms for obtaining informed consent should be implemented. Data anonymization and aggregation techniques can also be utilized to minimize privacy risks.

Emerging Trends and Potential Developments in IoT

The IoT is a rapidly evolving field, and several emerging trends and potential developments are shaping its future. These include:

Edge computing : As IoT devices generate vast amounts of data, processing and analyzing this data directly at the edge of the network, rather than transmitting it to a centralized cloud server, can improve response times and reduce bandwidth requirements. Edge computing can enable real-time insights, faster decision-making, and enhanced security.

5G connectivity : The rollout of 5G networks promises faster and more reliable connectivity, enabling more efficient and widespread adoption of IoT devices. The high data transfer speeds and low latency of 5G networks will support real-time applications and enable more complex IoT implementations.

Artificial intelligence integration : Combining IoT with artificial intelligence can enhance its capabilities. AI algorithms can analyze IoT data to identify patterns, make predictions, and automate decision-making processes. This integration can lead to more intelligent and autonomous IoT systems.

Blockchain for IoT security : Blockchain technology has the potential to address security and privacy concerns in IoT. By using distributed ledger technology, blockchain can ensure the integrity and immutability of IoT data, as well as enable secure and transparent transactions between IoT devices.

Sustainability and energy efficiency : IoT devices have the potential to contribute to sustainability efforts by enabling more efficient use of resources. For example, smart energy meters can provide real-time data on energy consumption, allowing users to optimize their usage and reduce waste. IoT devices can also facilitate better management of water resources, transportation systems, and waste management.

In conclusion, the Internet of Things (IoT) plays a crucial role in information systems by enabling data collection, analysis, and utilization. It improves decision-making, optimizes processes, enhances customer experiences, and offers numerous use cases across industries. Emerging trends such as edge computing, 5G connectivity, AI integration, blockchain, and sustainability efforts are shaping the future of IoT  by enhancing its capabilities, security, and sustainability. 

Cloud Computing

As we have seen, cloud computing is an important and rapidly evolving field that has revolutionized the way organizations store, process, and access data and applications. As technology continues to advance, there are several future trends and potential developments that are expected to shape the landscape of cloud computing.

Hybrid Cloud : As organizations continue to adopt cloud computing, the hybrid cloud model, which combines public and private clouds, is becoming increasingly popular. The hybrid cloud offers the flexibility and scalability of public cloud services, while allowing organizations to maintain control over sensitive data and applications in a private cloud environment. In the future, the hybrid cloud is expected to become the preferred choice for many organizations, as it allows for a more tailored and secure approach to cloud computing.

Multi-cloud Strategy : With the increasing number of cloud service providers available, organizations are adopting a multi-cloud strategy, which involves using multiple cloud platforms to meet their specific needs. This approach allows organizations to leverage the unique features and capabilities offered by different cloud providers, while avoiding vendor lock-in and ensuring redundancy and disaster recovery capabilities. In the future, the multi-cloud strategy is expected to become more prevalent, as organizations seek to optimize their cloud computing resources and minimize risks.

Serverless Computing : Serverless computing, also known as Function as a Service (FaaS), is gaining traction in the cloud computing space. This approach allows organizations to run applications without the need to provision or manage servers, as the cloud provider takes care of the infrastructure. Serverless computing offers several benefits, including cost savings, scalability, and increased developer productivity. In the future, serverless computing is expected to become more mature and widely adopted, as organizations look for ways to optimize their resource allocation and streamline their development processes.

Enhanced Security and Privacy : As the amount of data stored in the cloud continues to grow, security and privacy concerns become increasingly important. In the future, there will be a greater emphasis on enhancing security measures and implementing stricter privacy regulations to protect sensitive data in the cloud. One of the key developments in this area is the adoption of advanced encryption techniques, including homomorphic encryption and secure multi-party computation, which allow for data to be processed and analyzed in encrypted form, thereby reducing the risk of unauthorized access.  T he future of cloud computing security and privacy will be characterized by a combination of advanced encryption, Zero Trust models, privacy-enhancing technologies, and robust regulatory frameworks, all of which are essential for building trust and confidence in cloud services.

Big Data Analytics

Big data analytics is experiencing continuous evolution, with emerging trends poised to reshape how businesses operate and make decisions. Some of the trends in big data analytics are:

Edge Analytics : Edge analytics involves processing data at or near the source of data generation, reducing latency and bandwidth requirements. This trend will enhance real-time decision-making, especially in industries like manufacturing and healthcare. For instance, in manufacturing, edge analytics can optimize machine performance and detect faults instantly, minimizing downtime.

Integration of Artificial Intelligence and Machine Learning : Increasing integration of AI and machine learning into big data analytics processes for more sophisticated insights and predictive capabilities. Businesses will benefit from improved automation, predictive analytics, and personalized customer experiences. For example, in e-commerce, AI-driven recommendation engines can provide personalized product suggestions, enhancing customer engagement.

Explainable AI : Growing emphasis on making AI algorithms more transparent and interpretable to address ethical concerns. Enhanced transparency in AI decision-making will foster trust among users and customers. In sectors like finance, explainable AI can help justify credit scoring decisions, ensuring fairness and compliance with regulations.

Responsible Data Management : Increasing awareness of ethical considerations in data usage, leading to responsible data management practices. Businesses adopting responsible data practices will build customer trust and avoid potential legal and reputational risks. For example, healthcare organizations handling sensitive patient data must prioritize ethical data practices to comply with privacy regulations.

Natural Language Processing (NLP): Continued advancements in NLP enable machines to understand and process human language more effectively. Improved NLP capabilities will revolutionize customer service, marketing, and decision-making. In customer support, chatbots using advanced NLP can provide more natural and context-aware interactions, enhancing the overall customer experience.

Enhanced Data Governance and Privacy Measures : Strengthened data governance frameworks and increased focus on data privacy and security. Businesses will need to prioritize data protection to comply with evolving regulations. In sectors like finance, robust data governance ensures the secure handling of sensitive financial information, safeguarding against data breaches.

These emerging trends collectively signify a transformative era for big data analytics, empowering businesses with advanced capabilities to thrive in a data-driven landscape.

Industry Impacts

The rapid evolution of information systems is ushering in transformative changes across diverse industries, shaping the way businesses operate and interact with their environments. In the healthcare informatics sector, innovative technologies are enhancing patient care and management, while in the financial technology (fintech) realm, advancements are revolutionizing the way financial services are delivered. Supply chain management is witnessing increased efficiency through the integration of information systems, while e-learning is undergoing a digital revolution, transforming educational delivery methods. Additionally, information systems are playing a pivotal role in the development of smart cities, fostering sustainability and improving overall urban living. This exploration will delve into the emerging trends in information systems and their specific impacts on healthcare informatics, fintech, supply chain management, e-learning, and smart cities, offering insights into the technological advancements shaping these industries.

Healthcare Informatics :

In the healthcare industry, emerging trends in information systems are revolutionizing patient care, data management, and overall operational efficiency. The adoption of electronic health records (EHRs) is streamlining patient information accessibility, leading to more coordinated and personalized healthcare. Furthermore, the integration of artificial intelligence (AI) and machine learning (ML) in diagnostic tools is enhancing medical decision-making, enabling quicker and more accurate diagnoses. For example, IBM Watson Health’s AI capabilities are being harnessed to analyze medical literature, patient records, and clinical trial data to provide insights that aid healthcare professionals in making informed treatment decisions.

Example: Healthcare Informatics at Cleveland Clinic

A compelling example of an organization leveraging advanced healthcare informatics for competitive advantage is the partnership between Cleveland Clinic and IBM Watson Health. Cleveland Clinic, a renowned healthcare institution, collaborated with IBM to enhance its capabilities in cancer care. The organization integrated IBM Watson for Oncology, a cognitive computing platform, into its oncology department to provide personalized treatment recommendations for cancer patients.

The advanced healthcare informatics system analyzes vast amounts of medical literature, clinical trial data, and patient records to identify potential treatment options based on individual patient profiles. This not only accelerates the decision-making process for oncologists but also ensures that treatment plans align with the latest medical research and evidence-based practices.

By implementing advanced healthcare informatics, Cleveland Clinic gained a competitive edge by offering more precise and tailored cancer treatments. The system enables oncologists to stay abreast of the latest advancements in oncology and consider a broader range of treatment options, ultimately improving patient outcomes. This innovative use of informatics not only enhances the quality of care but also positions Cleveland Clinic as a leader in leveraging technology to provide cutting-edge healthcare solutions, contributing to its competitive advantage in the healthcare industry.

Financial Technology (Fintech)

In the realm of financial services, the influence of emerging trends in information systems, collectively known as financial technology or fintech, is reshaping traditional banking and financial processes. Blockchain technology is at the forefront, revolutionizing transactions by providing secure, transparent, and decentralized ledgers. Cryptocurrencies, such as Bitcoin, powered by blockchain, are challenging traditional currency systems. Additionally, the rise of mobile banking and digital wallets is transforming how individuals manage their finances, making transactions more convenient and accessible. For instance, platforms like Square and PayPal exemplify the integration of fintech, allowing users to conduct transactions seamlessly through mobile devices.

Example: Fintech at Square Inc.

A notable example of an organization harnessing advanced fintech for competitive advantage is Square Inc., founded by Jack Dorsey and Jim McKelvey. Square has revolutionized financial transactions for small and medium-sized businesses by providing a comprehensive suite of fintech solutions.

Square’s flagship product, the Square Point of Sale (POS) system, enables businesses to accept card payments through a mobile device or tablet, breaking down barriers for small merchants that traditionally faced challenges in accessing card payment processing. This innovation not only streamlined payment processes but also democratized access to electronic transactions for businesses that may not have had the infrastructure for traditional card processing systems.

Moreover, Square Capital, another fintech offering by the company, provides small businesses with access to capital through quick and data-driven lending decisions. By leveraging transaction data and other metrics, Square Capital assesses the creditworthiness of businesses, enabling them to secure loans for expansion or manage cash flow efficiently.

Square’s integration of fintech solutions not only addresses pain points for small businesses but also disrupts the traditional financial services landscape, providing a more accessible and user-friendly platform. This strategic use of advanced fintech has given Square a competitive advantage in the market, positioning it as a leader in empowering small businesses with efficient and innovative financial tools.

Supply Chain Management

Information systems are playing a pivotal role in revolutionizing supply chain management, enhancing visibility, and optimizing operations. The implementation of advanced analytics and machine learning in supply chain systems enables predictive analytics for demand forecasting, inventory management, and logistics optimization. Real-time tracking through the Internet of Things (IoT) devices ensures transparency and efficiency throughout the supply chain. Companies like Amazon leverage sophisticated algorithms and data analytics to predict customer demand, optimize inventory levels, and streamline the delivery process, exemplifying the transformative impact of information systems on supply chain management.

Example: Supply Chain Management at Coca-Cola

One notable initiative is Coca-Cola’s implementation of an Integrated Business Planning (IBP) system, powered by advanced analytics and data-driven insights. The IBP system enables the company to integrate various facets of its supply chain, including demand forecasting, inventory management, and production planning. By leveraging historical sales data, market trends, and real-time information, Coca-Cola can anticipate consumer demand more accurately and adjust production schedules accordingly.

Additionally, Coca-Cola has invested in a robust Warehouse Management System (WMS) that utilizes automation and RFID technology for inventory tracking. Automated processes in warehouses ensure faster and more accurate order fulfillment, reducing lead times and minimizing errors.

Furthermore, Coca-Cola has embraced collaborative supply chain practices by implementing Supplier Collaboration Portals. These portals facilitate seamless communication and information sharing between Coca-Cola and its suppliers. Real-time access to supplier data, demand forecasts, and production schedules enables more agile and responsive supply chain management.

The strategic use of advanced supply chain information systems has allowed Coca-Cola to optimize its production processes, minimize inventory holding costs, and enhance overall supply chain visibility. By leveraging technology to streamline operations and improve collaboration, Coca-Cola has gained a competitive advantage in the beverage industry, ensuring product availability and responsiveness to changing market dynamics.

The education sector is experiencing a profound transformation through emerging trends in information systems, particularly in the domain of e-learning. Learning Management Systems (LMS) facilitate the creation, delivery, and management of digital educational content. Virtual Reality (VR) and Augmented Reality (AR) technologies are enhancing the immersive learning experience. Platforms like Coursera and edX leverage data analytics to personalize learning paths for students, offering adaptive and customized educational content. The integration of information systems in e-learning is fostering accessibility and inclusivity, making education more flexible and tailored to individual needs.

Example: e-Learning Technology at Coursera

Coursera has transformed the education landscape by offering a platform that provides online courses, specializations, and degrees in collaboration with top universities and organizations globally.

Coursera’s strategic use of advanced e-learning technologies offers several competitive advantages. Firstly, the platform employs adaptive learning algorithms that personalize the learning experience for each user. Through data analysis of learner interactions and performance, Coursera tailors course content and assessments to individual strengths and weaknesses, ensuring a more effective and engaging learning journey.

Moreover, Coursera has embraced virtual and augmented reality (VR/AR) technologies to enhance certain courses. For instance, courses in fields like healthcare and computer science leverage VR/AR simulations, providing learners with immersive and hands-on experiences that go beyond traditional online learning methods.

Coursera’s partnerships with leading industry experts and organizations contribute to its competitive edge. By collaborating with companies to offer courses aligned with industry needs and emerging trends, Coursera ensures that learners acquire skills that are directly applicable in the workplace. This industry relevance enhances Coursera’s appeal to both individual learners seeking career development and corporations looking to upskill their workforce.

Additionally, Coursera has strategically implemented a flexible business model that allows organizations to offer Coursera for Business, providing employees access to high-quality professional development courses. This approach aligns with the growing demand for continuous learning and skills development in the evolving job market.

Smart Cities

Information systems are instrumental in the development of smart cities, where technology is harnessed to improve urban living. The Internet of Things (IoT) enables interconnected devices and infrastructure, enhancing city services and resource management. Data analytics is used to gather insights for efficient energy consumption, waste management, and transportation systems. For example, cities like Singapore employ smart sensors to monitor traffic flow, optimize public transportation, and reduce congestion. The integration of information systems in smart cities fosters sustainability, resilience, and improved quality of life for residents.

Example: Smart Cities Technologies at Seimens

An exemplary illustration of an organization leveraging advanced smart cities technologies is the partnership between Siemens and the city of Vienna. Siemens has played a pivotal role in transforming Vienna into a smart city by deploying cutting-edge technologies to enhance urban sustainability, efficiency, and the overall quality of life for its residents.

One key initiative involves the implementation of an intelligent traffic management system. Siemens has integrated smart sensors and real-time data analytics to monitor and optimize traffic flow across the city. This not only reduces congestion and travel times but also contributes to lower carbon emissions, aligning with Vienna’s commitment to environmental sustainability.

Furthermore, Siemens has been instrumental in deploying energy-efficient solutions in Vienna. Smart grids, which intelligently manage the distribution of electricity, have been implemented to optimize energy consumption and reduce waste. This includes the integration of renewable energy sources and energy storage systems, contributing to Vienna’s goal of becoming a carbon-neutral city.

Siemens has also been involved in the development of smart buildings and infrastructure. The company’s expertise in building automation and IoT technologies has been utilized to create energy-efficient and connected buildings. These structures are equipped with sensors for lighting, heating, and occupancy, ensuring optimal resource utilization and a comfortable living and working environment for citizens.

Moreover, Siemens has contributed to Vienna’s efforts in waste management through the implementation of smart waste solutions. Intelligent sensors in waste bins monitor fill levels, enabling optimized collection routes and reducing unnecessary vehicle emissions.

This collaboration between Siemens and Vienna exemplifies how advanced smart cities technologies can be harnessed to create a more sustainable, efficient, and livable urban environment. By integrating smart traffic management, energy-efficient solutions, smart buildings, and waste management, Vienna has positioned itself as a model smart city, benefiting both residents and the environment.

Over the next few years, businesses will continue to adopt and leverage emerging information systems and technologies to improve their competitive advantage in the market. The trends in sophistication of information systems and technology advancements will lead to the deployment of advanced systems with enhanced capabilities.

The impact of emerging information technologies on businesses and industries is profound and transformative. Across sectors, advancements in technologies such as artificial intelligence, blockchain, the Internet of Things, and data analytics are reshaping traditional models and processes. Businesses now have unprecedented access to vast amounts of data, enabling informed decision-making and personalized customer experiences. Supply chains are becoming more efficient and transparent through real-time tracking and predictive analytics. Financial services are undergoing a revolution with the rise of fintech, leveraging blockchain for secure transactions and mobile platforms for accessible banking. Education is evolving through e-learning platforms, providing flexible and personalized learning experiences. Moreover, the development of smart cities, facilitated by interconnected technologies, is enhancing urban living. However, these innovations also bring challenges, including the need for robust cybersecurity, ethical considerations, and the demand for a skilled workforce. As businesses navigate this digital transformation, the integration of emerging information technologies continues to redefine industry landscapes, driving efficiency, innovation, and competitiveness.

Discussion Questions

• How are businesses leveraging artificial intelligence and machine learning to enhance decision-making processes, and what challenges might arise in the ethical use of these technologies?
• In what ways can blockchain technology revolutionize industries beyond finance, and what potential disruptions and opportunities does it present for businesses?
• How are organizations adapting their cybersecurity strategies to protect sensitive data in the era of increasing connectivity and the Internet of Things?
• What role does big data analytics play in shaping customer experiences, and how can businesses ensure responsible and transparent use of customer data?
• As the financial technology (fintech) landscape evolves, what impacts do digital currencies and decentralized finance have on traditional banking systems, and how are financial institutions adapting to these changes?
• How are supply chain management practices transforming with the integration of information systems, and what challenges emerge in ensuring the security and efficiency of global supply chains?
• In the education sector, how are emerging technologies like virtual reality and artificial intelligence reshaping e-learning, and what implications do these changes have for traditional educational models?
• As smart city initiatives gain momentum, what are the key benefits and challenges of integrating information technologies into urban infrastructure, and how does this impact citizens’ quality of life?
• How can businesses address the growing demand for digital skills in the workforce, and what strategies can be employed to bridge the digital divide and ensure inclusivity in technology adoption?
• Considering the rapid pace of technological advancements, how can businesses balance the need for innovation with the ethical considerations surrounding data privacy, security, and responsible AI practices?

Introduction to Information Systems Management Copyright © 2024 by Roy Wood is licensed under a Creative Commons Attribution 4.0 International License , except where otherwise noted.

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Emerging Trends in Information Technology and Its Impact on Business Organizations

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• Cite this conference paper

• Venkamaraju Chakravaram 20 ,
• Hari Krishna Bhagavatham 21 ,
• Srinivas Jangirala 20 &
• Sunitha Ratnakaram 20  

Part of the book series: Advances in Intelligent Systems and Computing ((AISC,volume 1392 ))

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Information technology (IT) is an industry on the rise with the latest and emerging trends. IT trends are changing the business structure, creating new job portfolios, and going to occupy a significant place in the business organization in the coming years. The present recent and emerging trends are solving business problems with innovative IT applications and also helping the business organizations, improving the quality of services and products, and presenting new functions in fields like medicine, entertainment, business, education, marketing, law enforcement, and more. The present research used descriptive cum exploratory methodology to list the recent and emerging trends in business organizations and also gave an attempt to identify the benefits and risks associated with IT trends in business organizations in addition to how IT is solving business problems.

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Introduction

How to Assess Business Technologies and Systems - A Global Approach with a Case Study

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Chakravaram, V., Bhagavatham, H., Jangirala, S., Ratnakaram, S. (2021). Emerging Trends in Information Technology and Its Impact on Business Organizations. In: Tiwari, A., Ahuja, K., Yadav, A., Bansal, J.C., Deep, K., Nagar, A.K. (eds) Soft Computing for Problem Solving. Advances in Intelligent Systems and Computing, vol 1392 . Springer, Singapore. https://doi.org/10.1007/978-981-16-2709-5_37

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Information and communication technology (ICT) in education

Information and communications technology (ict) can impact student learning when teachers are digitally literate and understand how to integrate it into curriculum..

Schools use a diverse set of ICT tools to communicate, create, disseminate, store, and manage information.(6) In some contexts, ICT has also become integral to the teaching-learning interaction, through such approaches as replacing chalkboards with interactive digital whiteboards, using students’ own smartphones or other devices for learning during class time, and the “flipped classroom” model where students watch lectures at home on the computer and use classroom time for more interactive exercises.

When teachers are digitally literate and trained to use ICT, these approaches can lead to higher order thinking skills, provide creative and individualized options for students to express their understandings, and leave students better prepared to deal with ongoing technological change in society and the workplace.(18)

ICT issues planners must consider include: considering the total cost-benefit equation, supplying and maintaining the requisite infrastructure, and ensuring investments are matched with teacher support and other policies aimed at effective ICT use.(16)

Issues and Discussion

Digital culture and digital literacy: Computer technologies and other aspects of digital culture have changed the ways people live, work, play, and learn, impacting the construction and distribution of knowledge and power around the world.(14) Graduates who are less familiar with digital culture are increasingly at a disadvantage in the national and global economy. Digital literacy—the skills of searching for, discerning, and producing information, as well as the critical use of new media for full participation in society—has thus become an important consideration for curriculum frameworks.(8)

In many countries, digital literacy is being built through the incorporation of information and communication technology (ICT) into schools. Some common educational applications of ICT include:

• One laptop per child: Less expensive laptops have been designed for use in school on a 1:1 basis with features like lower power consumption, a low cost operating system, and special re-programming and mesh network functions.(42) Despite efforts to reduce costs, however, providing one laptop per child may be too costly for some developing countries.(41)
• Tablets: Tablets are small personal computers with a touch screen, allowing input without a keyboard or mouse. Inexpensive learning software (“apps”) can be downloaded onto tablets, making them a versatile tool for learning.(7)(25) The most effective apps develop higher order thinking skills and provide creative and individualized options for students to express their understandings.(18)
• Interactive White Boards or Smart Boards : Interactive white boards allow projected computer images to be displayed, manipulated, dragged, clicked, or copied.(3) Simultaneously, handwritten notes can be taken on the board and saved for later use. Interactive white boards are associated with whole-class instruction rather than student-centred activities.(38) Student engagement is generally higher when ICT is available for student use throughout the classroom.(4)
• E-readers : E-readers are electronic devices that can hold hundreds of books in digital form, and they are increasingly utilized in the delivery of reading material.(19) Students—both skilled readers and reluctant readers—have had positive responses to the use of e-readers for independent reading.(22) Features of e-readers that can contribute to positive use include their portability and long battery life, response to text, and the ability to define unknown words.(22) Additionally, many classic book titles are available for free in e-book form.
• Flipped Classrooms: The flipped classroom model, involving lecture and practice at home via computer-guided instruction and interactive learning activities in class, can allow for an expanded curriculum. There is little investigation on the student learning outcomes of flipped classrooms.(5) Student perceptions about flipped classrooms are mixed, but generally positive, as they prefer the cooperative learning activities in class over lecture.(5)(35)

ICT and Teacher Professional Development: Teachers need specific professional development opportunities in order to increase their ability to use ICT for formative learning assessments, individualized instruction, accessing online resources, and for fostering student interaction and collaboration.(15) Such training in ICT should positively impact teachers’ general attitudes towards ICT in the classroom, but it should also provide specific guidance on ICT teaching and learning within each discipline. Without this support, teachers tend to use ICT for skill-based applications, limiting student academic thinking.(32) To sup­port teachers as they change their teaching, it is also essential for education managers, supervisors, teacher educators, and decision makers to be trained in ICT use.(11)

Ensuring benefits of ICT investments: To ensure the investments made in ICT benefit students, additional conditions must be met. School policies need to provide schools with the minimum acceptable infrastructure for ICT, including stable and affordable internet connectivity and security measures such as filters and site blockers. Teacher policies need to target basic ICT literacy skills, ICT use in pedagogical settings, and discipline-specific uses. (21) Successful imple­mentation of ICT requires integration of ICT in the curriculum. Finally, digital content needs to be developed in local languages and reflect local culture. (40) Ongoing technical, human, and organizational supports on all of these issues are needed to ensure access and effective use of ICT. (21)

Resource Constrained Contexts: The total cost of ICT ownership is considerable: training of teachers and administrators, connectivity, technical support, and software, amongst others. (42) When bringing ICT into classrooms, policies should use an incremental pathway, establishing infrastructure and bringing in sustainable and easily upgradable ICT. (16) Schools in some countries have begun allowing students to bring their own mobile technology (such as laptop, tablet, or smartphone) into class rather than providing such tools to all students—an approach called Bring Your Own Device. (1)(27)(34) However, not all families can afford devices or service plans for their children. (30) Schools must ensure all students have equitable access to ICT devices for learning.

Inclusiveness Considerations

Digital Divide: The digital divide refers to disparities of digital media and internet access both within and across countries, as well as the gap between people with and without the digital literacy and skills to utilize media and internet.(23)(26)(31) The digital divide both creates and reinforces socio-economic inequalities of the world’s poorest people. Policies need to intentionally bridge this divide to bring media, internet, and digital literacy to all students, not just those who are easiest to reach.

Minority language groups: Students whose mother tongue is different from the official language of instruction are less likely to have computers and internet connections at home than students from the majority. There is also less material available to them online in their own language, putting them at a disadvantage in comparison to their majority peers who gather information, prepare talks and papers, and communicate more using ICT. (39) Yet ICT tools can also help improve the skills of minority language students—especially in learning the official language of instruction—through features such as automatic speech recognition, the availability of authentic audio-visual materials, and chat functions. (2)(17)

Students with different styles of learning: ICT can provide diverse options for taking in and processing information, making sense of ideas, and expressing learning. Over 87% of students learn best through visual and tactile modalities, and ICT can help these students ‘experience’ the information instead of just reading and hearing it. (20)(37) Mobile devices can also offer programmes (“apps”) that provide extra support to students with special needs, with features such as simplified screens and instructions, consistent placement of menus and control features, graphics combined with text, audio feedback, ability to set pace and level of difficulty, appropriate and unambiguous feedback, and easy error correction. (24)(29)

Plans and policies

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• Bishop, J.L. and Verleger, M.A. 2013. ‘The flipped classroom: A survey of the research.’ Presented at the 120th ASEE Annual Conference and Exposition. Atlanta, Georgia.
• Blurton, C. 2000. New Directions of ICT-Use in Education . United National Education Science and Culture Organization (UNESCO).
• Bryant, B.R., Ok, M., Kang, E.Y., Kim, M.K., Lang, R., Bryant, D.P. and Pfannestiel, K. 2015. ‘Performance of fourth-grade students with learning disabilities on multiplication facts comparing teacher-mediated and technology-mediated interventions: A preliminary investigation. Journal of Behavioral Education. 24.
• Buckingham, D. 2005. Educación en medios. Alfabetización, aprendizaje y cultura contemporánea, Barcelona, Paidós.
• Buckingham, D., Sefton-Green, J., and Scanlon, M. 2001. 'Selling the Digital Dream: Marketing Education Technologies to Teachers and Parents.'  ICT, Pedagogy, and the Curriculum: Subject to Change . London: Routledge.
• "Burk, R. 2001. 'E-book devices and the marketplace: In search of customers.' Library Hi Tech 19 (4)."
• Chapman, D., and Mählck, L. (Eds). 2004. Adapting technology for school improvement: a global perspective. Paris: International Institute for Educational Planning.
• Cheung, A.C.K and Slavin, R.E. 2012. ‘How features of educational technology applications affect student reading outcomes: A meta-analysis.’ Educational Research Review . 7.
• Cheung, A.C.K and Slavin, R.E. 2013. ‘The effectiveness of educational technology applications for enhancing mathematics achievement in K-12 classrooms: A meta-analysis.’ Educational Research Review . 9.
• Deuze, M. 2006. 'Participation Remediation Bricolage - Considering Principal Components of a Digital Culture.' The Information Society . 22 .
• Dunleavy, M., Dextert, S. and Heinecke, W.F. 2007. ‘What added value does a 1:1 student to laptop ratio bring to technology-supported teaching and learning?’ Journal of Computer Assisted Learning . 23.
• Enyedy, N. 2014. Personalized Instruction: New Interest, Old Rhetoric, Limited Results, and the Need for a New Direction for Computer-Mediated Learning . Boulder, CO: National Education Policy Center.
• Golonka, E.M., Bowles, A.R., Frank, V.M., Richardson, D.L. and Freynik, S. 2014. ‘Technologies for foreign language learning: A review of technology types and their effectiveness.’ Computer Assisted Language Learning . 27 (1).
• Goodwin, K. 2012. Use of Tablet Technology in the Classroom . Strathfield, New South Wales: NSW Curriculum and Learning Innovation Centre.
• Jung, J., Chan-Olmsted, S., Park, B., and Kim, Y. 2011. 'Factors affecting e-book reader awareness, interest, and intention to use.' New Media & Society . 14 (2)
• Kenney, L. 2011. ‘Elementary education, there’s an app for that. Communication technology in the elementary school classroom.’ The Elon Journal of Undergraduate Research in Communications . 2 (1).
• Kopcha, T.J. 2012. ‘Teachers’ perceptions of the barriers to technology integration and practices with technology under situated professional development.’ Computers and Education . 59.
• Miranda, T., Williams-Rossi, D., Johnson, K., and McKenzie, N. 2011. "Reluctant readers in middle school: Successful engagement with text using the e-reader.' International journal of applied science and technology . 1 (6).
• Moyo, L. 2009. 'The digital divide: scarcity, inequality and conflict.' Digital Cultures . New York: Open University Press.
• Newton, D.A. and Dell, A.G. 2011. ‘Mobile devices and students with disabilities: What do best practices tell us?’ Journal of Special Education Technology . 26 (3).
• Nirvi, S. (2011). ‘Special education pupils find learning tool in iPad applications.’ Education Week . 30 .
• Norris, P. 2001. Digital Divide: Civic Engagement, Information Poverty, and the Internet Worldwide . Cambridge, USA: Cambridge University Press.
• Project Tomorrow. 2012. Learning in the 21st century: Mobile devices + social media = personalized learning . Washington, D.C.: Blackboard K-12.
• Riasati, M.J., Allahyar, N. and Tan, K.E. 2012. ‘Technology in language education: Benefits and barriers.’ Journal of Education and Practice . 3 (5).
• Rodriquez, C.D., Strnadova, I. and Cumming, T. 2013. ‘Using iPads with students with disabilities: Lessons learned from students, teachers, and parents.’ Intervention in School and Clinic . 49 (4).
• Sangani, K. 2013. 'BYOD to the classroom.' Engineering & Technology . 3 (8).
• Servon, L. 2002. Redefining the Digital Divide: Technology, Community and Public Policy . Malden, MA: Blackwell Publishers.
• Smeets, E. 2005. ‘Does ICT contribute to powerful learning environments in primary education?’ Computers and Education. 44 .
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Related information

• Information and communication technologies (ICT)