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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: [email protected]