the digital age: so what? - illinois institute for rural ... · great roi when investing in rural...
TRANSCRIPT
The Digital Age: So What?Roberto Gallardo, Ph.D.
Purdue Center for Regional Development / Extension
robertogePCRD
Reaching 100 million users worldwide
• Telephone 75 years• Mobile phone 16 years• World Wide Web 7 years• Facebook 4 years• Instagram 2 years• Pokemon Go 1 month
Source: Twitter user @ValaAfshar; ITU; Statista; BCG Research
Distance and Innovation
Source: Matt Clancy
“Average distance between all inventors listed on a patent tripled between
1975 and 2015”
2017 Digital Economy in the U.S.
6.9%of GDP
$1.35 trillion
5.1million jobs $132,223
average compensation
Source: Bureau of Economic Analysis
What the Research Says• Broadband DOES matter for a whole host of social &
economic outcomes!• Household income• Employment levels• Firm attraction• Farm profits• Civic engagement• Increased housing values
• Adoption is (arguably) more important than simple availability
• The extent to which very fast speeds matter is TBD…
Great ROI when investing in rural broadband
• Cost/benefit analysis of 7 co-operatives in Indiana
• $2.97 - $4.09 for every $1 invested• $1 billion/yr. (annuitized) over 20 years
• 27 percent in government revenue and health care cost savings
• Telemedicine & adult education (K-12, farm income and consumer savings benefitted as well) Source: Purdue Center for Regional Development
Telework
• 50% of US workforce hold jobs that are compatible with telework
• Teleworkers can save $4,000 per year (gas, wardrobe, lunch expenses, etc.)
• Companies can save about $2,000 per employee per year
• Can reduce turnover by 50%Source: Flexjobs.com; GlobalWorkplaceAnalytics.com
Telehealth Program Case Study
• 100 Type 2 Diabetes patients recruited in Georgia
• A1c levels down 2.5% after 6 months• $3,855 per patient per year in savings• Increased quality of life among
participantsSource: CoBank; FCC
Unlocking Rural’s Digital Potential
• $47 billion per year to the U.S. GDP• 360,000 jobs in the next 3 years
Source: C_Tec; Amazon
Potential of Precision Agriculture Row crops
Specialty cropsLivestock & dairy
Planning Production
Market coordination
Broadband infrastructureDigital technologies On-farm capabilities
$47-$65B/year $18-$23B
Source: USDA
Houston, we have a problem …
Source: United Soybean Board
Farms that contribute $80 billion to the U.S. GDP run on limited internet connections.
“”
% Housing Units: No Providers
0.8
0.5
3.4
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
Illinois Urban Rural
Source: FCC Form 477 Dec 18 v1
% Housing Units: 100/20 Broadband
90.095.6
44.1
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
Illinois Urban Rural
Source: FCC Form 477 Dec 18 v1
Median Advertised Speeds (Mbps)
24 24
18
24
2
0
5
10
15
20
25
30
Illinois Urban Rural
Download Upload
Source: FCC Form 477 Dec 18 v1
% Households: Digital Distress Indicators
9.0 8.5
13.7
15.6 15.1
20.0
10.5 10.411.611.7 11.3
14.9
0.0
5.0
10.0
15.0
20.0
25.0
Illinois Urban Rural
Cell Data Only No Internet Access Mobile Only No Computing Devices
Source: ACS 2014-2018
Digital Readiness (2016)
14%
5%
33%31%
17%
0%
5%
10%
15%
20%
25%
30%
35%
Unprepared Traditional Learners Reluctant Cautious Clickers Digitally Ready
Source: Pew Research Internet
52%
Jobs Vs. Productivity
Source: Brookings Institution
Middle & Digital Skills
Occupations that typically don’t require a bachelor’s degree and pay above the national living wage.Source: Capital One; Burning Glass
Homework Gap
Barriers when completing online assignments and homework due to lack of appropriate devices and/or broadband
Lower graduation rates Score lower on tests
Source: Associated Press
17% of U.S. students with no computer access18% of U.S. students with no broadband access
Future of Work
Source: Accenture
Digital Blindspot
• Technology today could automatize nearly one-third of work activities in 60% of jobs
• Focus not only on building new skills, but foundational digital literacy that undergirds a more resilient workforce.
Source: Rework America Business Network
It is not only coding …
Source: Bloomberg; IBM
“Behavioral skills, such as the ability to work well on a team, communication, creativity, and empathy are best developed through experience rather than structured learning programs like a webinar.”
Mobile only is not the solution …
On average, U.S. households used 344 GB per month during 2019
For a rural user on a fixed LTE service at the highest data tier this would cost $3,190/month due to overages
Source: OpenVault; Twitter user Ben Fineman (bfineman)
And users with an unlimited plan would be throttled to 0.6 Mbps for 95% of the month
What is Digital Inclusion?
Refers to the adoption of broadband technologies and its meaningful use for social and economic benefits. Source: Community Developments Investments Magazine, November 2018
First-level divide: access yes/noSecond-level divide: differences in internet useThird-level divide: economic, cultural, social, & personal outcomes
Rural Economic Development Implications
1. Make digital inclusion a priority; shed industrial age assumptions2. Treat broadband investment as you would industrial prospects3. Gather relevant data (infrastructure, skills, use)4. Ensure existing businesses can compete in digital economy5. Digital Entrepreneurial Ecosystem
Rural Economic Development Implications
6. Telework friendly policies: businesses and workers7. Update workforce development: continuous learning; reskilling8. Make community more responsive and engaging9. Proactively manage community’s online reputation10. Improve leadership pipeline; engage youth