The Rising Speed of Technology Adoption in the USA
There is minimal information on the adoption rates of new technologies around the globe. So this section is limited to the USA. The graph, below, illustrates the rate of adoption of new technologies in America.
Thus, for electricity, it took 46 years for this technology to reach 25% of the US population, from 1873, the date of the commercial release of the technology.
In contrast, it only took 7 years to achieve the same feat with the internet.
Impediments to high Adoption rates of new Technologies
As illustrated in the blog post "Mobile Technology the Innovation Outlier".
Affordability and competency issues are binding constraints, on the further diffusion of technologies. To thresholds higher than 25% of the population in developing countries’. However, mobile technologies are the exception to the rule.
Conversely for developed countries the aforementioned technologies were adopted by over 50% of the population.
Why Mobile Tech is a Game Changer?
The infrastructure, payments, distribution systems, and networks necessary for smartphones, to be adopted at a faster rate than other new technology, was put in place by telecommunications vendors.
The convergence of different technologies and the reduced investment dollars ensured. Infrastructure investment was not an impediment to the speed of adoption for smartphones.
This was not true for older technologies such as electricity, telephony or radio.
Today even in the poorest countries, the subscription rates for mobile technology is on average more than 50%.
This is attributed mainly to leapfrogging; that is the by-passing of investment in older generation technologies and the migration straight to new technologies.
Hence, as increasing numbers of consumers and businesses migrate onto the web to satisfy a multitude of desires from entertainment, healthcare, food, social enterprise, financial services, transportation and fashion.
The business models of organisations incumbent across a plethora of industries are being disrupted by more agile nimble start-ups. However, although online sales, according to YCharts still only accounts for just 9.2% of total retail sales in 2017.
Chief Information Officers (CIO’s), Chief Technology Officers (CTO’s). Chief Finance Officers (CFO’s), and Chief Marketing Officers (CMO’S) of small, mid-sized and multinational corporations.
Across a plethora of industries, are reacting to these trends, by allocating a greater proportion of their IT and marketing budgets. To the procurement of enterprise technologies to help them exploit the opportunities presented by this once in a decade transition.
Furthermore, established, organisations with legacy infrastructures are in the mist, of digitally transforming their operational models.
This is essential for;
* the extraction of greater value from intangible assets
* the simplification of business processes
* the removal of complexity associated with deriving data- driven insights. Obtained from connected;
products & services
members of an organisations’ ecosystem
IDC forecasts US$1.2 trillion will be spent on the procurement of digital transformation services
The fastest growing technology categories associated with digital transformation over the next 3 years are;
* cloud infrastructure (29.4% CAGR)
* business services (22.0% CAGR), and
* applications (21.8% CAGR)
And despite a (CAGR) that is slower than the overall market of (17.3%), application development and deployment (AD&D) spending will grow fast enough to overtake IT services. As the second largest digital transformation technology category by 2020.
In response to the changing behaviours of b2b and b2c consumers. C-level executives incumbent within industries most impacted by the migration online. That is media, telecoms, consumer finance, retail, technology, insurance and consumer products.
Are investing heavily in upgrading their business operations. To be more responsive to managing the multitude of channels that consumers engage with. To source, consume and comment on goods and services procured through the web.