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

@robertoge

• Conveying the message

• Community Development 101

• MSU Institute

• Lessons Learned

What’s ahead …

Technology is adopted faster …

What’s changed?

The Digital Economy

• In 2016, employed 32 million + people than in 2010• By 2020, will reach $6.6 trillion in G-20 economies• Real threat to economic growth: digital divide

Source: Boston Consulting Group

Digital Potential

• Dozens of indicators• Building digital assets• Expanding digital usage• Creating digital workforce

Source: McKinsey Global Institute (2015)

18%

Exponential, huh?

Source: Twitter user @ValaAfshar

1992 2014

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

measured, and optimized.” – Project Syndicate• At least 50 billion devices will be

connected by 2020 – Cisco (2014)• “IoE is a $19 trillion global opportunity

over the next decade” – Cisco (2014)• Up to $11 trillion annual economic impact

in 2025 – McKinsey (2015)

Digitization, huh?

• Technology lag• Artificial Intelligence

• Deep learning algorithms• Zero to expert in 8 hours• X-rays & CT scans• Skin cancer• Breakout arcade game• Electrify Cognify

Combinatorial, huh?

• Digital mindset

• Exploit digital platforms

• Listen to digital consumers/residents

• Mostly EVERYONE has the tools to market, test, refine, and eventually disrupt an industry

Digital Disruption

Source: McQuivey, J. (2013). Digital Disruption – Unleashing the Next Wave of Innovation

Most Valuable Companies 2006-2016

Source: World Economic Forum

Innovation

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

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

• Access to talent• Networking

opportunities• Proximity to customers

and suppliers

How exactly does it work?

• With connectivity & know how• Better air quality• Natural amenities• Less traffic

Innovators*

*Source: Washington Post

Rural areas offer

• Geographic proximity• The bigger, the better• Tied to office, factory• Mass production

Economic landscape shifting

Industrial Economy Digital Economy

• Decentralization• Economic gardening• Work from anywhere• Open innovation

600,000 rooms

Airbnb Hilton

Source: World Economic Forum

4years 93years

Digital Globalization

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

• Trade was once confined to advanced economies and large multinational companies

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

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

1st Industrial Revolution

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

Communication Energy Transportation

2nd Industrial Revolution

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

Communication Energy Transportation

3rd Industrial Revolution

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

Communication Energy Transportation

Bipolar Economy

Source: Harvard Business Review (2017)

Traditional Autonomous Food Shelter Health care Clothing Transportation Energy

Robots Artificial Intelligence Big Data High-speed Internet

Cost Increasing

Wages/EmploymentDecreasing

MiddleClass

Service Sector

Change is not easy …

“Doubt is an uncomfortable condition, but certainty is a

ridiculous one.” Voltaire

Do I need faster Internet?

Do I need electricity when I already use candles?

… is like asking …

That selfie generation …

Multiple Types of Intelligence

Source: Schwab, K. (2016). The Fourth Industrial Revolution

Contextual

Inspired

PhysicalEmotional Adapt & harness potential

Remember that in the digital age …

• Levels the playing field between urban and rural

• Size does not matter• Eliminates “middle of nowhere”• When most people can work

anywhere, where will they choose to live and work?

• How to convey the message? Engage communities?

Community Economic Development

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

social or economic goal• Community

• Geographic defined place where people interact• Carries out important activities and functions to

serve its residents• Institutions: rules and organizations, including

informal norms, that coordinate human behavior

Community Economic Development

• Linkages• Capacity of communities to carry out major functions;

depends on nature and strength of local institutions • Horizontal versus vertical

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

change their economic, social, cultural, and/or environmental situation.”

Source: Christenson & Robinson (1989)

Community Economic Development

• Community development (CD) = social & community• Economic development (ED) = business & industry• CD + ED = CED (community economic development)

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

Frameworks & Strategies

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

• CARE model• Cluster-based economic development

• Community capitals• Intelligent Communities

MSU Extension Intelligent Community Institute

• Mission: help rural communities – through outreach and research – transition to a digital mindset to build prosperous, inclusive, and sustainable communities

• Part of worldwide network: 1 additional institute

Community Development Model

Research: 2014-2017

• Responsive Countryside Book• Digital Divide Index Report• Broadband Maps• Mississippi Broadband Quickfacts• Four Broadband White Papers (two

journal articles)• Three Extension publications• Rural Business Innovation Index

ICOP: Objectives

• Increase awareness in rural areas of digital age implications

• Help communities transition to, plan for, and prosper in the digital age

• Community is driver• Ongoing process• Resources needed: time and

passion for your community!

AwarenessChecklist

(Asset-mapping)

Implement & Document Recognize

Intelligent Community Outreach Process(ICOP)

Intelligent Community Gauge

Intelligent Community Report

Intelligent Community Action Plan

Footprint: 2014-2017

• 60 Communities• Nine U.S. States• Four Countries (including U.S.)• 5,130+ people reached• 75 webinars/presentations

ICOP Results: 2014-2017 ICOP Number

Checklists Completed 21

Checklist Reports* 9 (42%)

Checklist Action Plans* 7 (77%)

Action Plan Items 60

Initiated/Completed 18 (30%)

Extension related 16 (89%)

*Note: does not include pilot community

ICOP Communities

Results: 2014-2017

• One 3D Printer in library• Two WiFi Hotspots installed• One WiFi Hotspot map• Eighteen Dash & Dot packs delivered• 100+ computers/tablets donated• 113 digital literacy workshops/940 people• $450,000+ external funding• Eight Extension programs created or enhanced

Extension Resources

• Digital Literacy• Municipal Websites• 4-H Robotics/Scratch Jr.• Virtual Incubator Program (VIP)• Master Technology Innovator (MTI)• E-Front Door• Digital Works• DR Certification

Lessons learned …

• Awareness is CRITICAL• Conveying the right message• Local champion(s)• Local, trusted boots on the ground• Demonstrate usefulness: anecdotal/empirical• Lengthy process

Contact Information

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

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