The document discusses the significant impact of digital technologies on the economy and society, likening it to the industrial revolution. It highlights the rapid advancements in connectivity, cloud computing, and the emergence of smart cities, emphasizing the growing importance of digital commerce and electronic payments. The text also notes the decreasing cost of technology, which helps democratize access to services and reduces the digital divide.

1. A Historical Shift in the Economy and Society Irving Wladawsky-Berger

2. Accelerating Advances in Digital Technologies Source: Kurzweil 1999 – Moravec 1998 Digital technologies are to the 21st century as steam power was to the Industrial Revolution 1900 1920 1940 1960 1E-5 1E-3 1E+0 1E+3 1E+6 1E+9 1E+12 $1000 Buys: Computations per second Integrated Circuit Discrete Transistor Vacuum Tube Electro- Mechanical Mechanical 2020 2000 1980 Nanotechnology

3. Continuing Technology Advances Huge amounts of information Billions of mobile devices; trillions of sensors Massive computational power and storage capacity High bandwidth, wireless networks . . .

4. The Internet: Industrial Information & Knowledge Economy

5. Internet Evolution Networking TCP-IP Information World Wide Web Communications e-mail . . . Business, Government, . . . e-business Services, Apps, . . . Cloud Computing Internet Collaboration, Blogs, Wikis, . . . Social Media

7. The decreasing cost of technology is reducing the “digital divide” and democratizing access to government and business e-services of all sorts ~$6,000 1981 1994 2011+ Cost ~$2,000 $25-50 1% Penetration 10% 75% PC Media / device Laptop / internet Phone Non existent e-services potential Medium High The last three decades have witnessed tremendous progress in global digital connectivity and ubiquity Towards Ubiquitous Connectivity

8. 22 Consumption Model: The Mass Customization of Services Delivery Model: The Industrialization of Services Cloud Computing: a consumption and delivery model for services, apps, information, . . .

9. Cloud Computing 4 Banking Retail IT Consumption model: focused on the overall end user experience Standardized service offerings Rapidly provisioned Flexibly priced Ease of access Self-service Delivery model: focused on overall infrastructure management Virtualized resources Managed as a single large resource Delivering services with elastic scaling Economies of scale Deploy technology advances

10. 6 Clouds enable ubiquitous access to applications from an increasingly diverse set of devices On demand self service Anytime from any device Decoupling data from device Unified communications Delivery of real time data and analysis

11. Real-time Information access, analysis and optimization The world's physical, digital & financial infrastructures are converging 16

12. 15 A Planet of Smart Cities In 1900 only 13% of the world’s population lived in cities Now, the majority of the world’s populations lives in cities By 2050, cities will likely make up over 70% of the world’s population Urban areas are expected to absorb all the planet’s population growth - 2.5 billion people - over the next four decades

13. Smart Cities Services Public Safety Government Services Water Healthcare Transportation Energy and Utilities

14. Cell Phones: The New Local Bank? In developed countries approximately 81% of adults are banked vs. 28% in developing in countries There are ~5 billion cell phone users worldwide but only 1.8 billion bank accounts UK 91.0% 92.4% Africa 20.0% 48.0% Source: Yankee Group, Financial Access Initiative US 91.0% 84.7% Brazil 43.0% 82.9% Russia 69.0% 94.5% India 48.0% 56.2% China 42.0% 53.4% Gap Narrowing Gap Widening 2 – 3 billion underserved 1.8 billion bank accounts 4.8 billion mobile phones 6.9 billion people

15. Three disruptive forces are reshaping the global payments landscape | Ubiquitous connectivity driving next wave of digital commerce , both online and mobile: Technological advances and decreasing costs have driven exponential growth in digital access A surge in online and mobile connectivity has resulted in significant digital commerce growth Accelerating shift from paper-based to electronic payments across global markets Developed markets continue shift away from cash and checks Cash-based economies in emerging markets turn electronic as consumers become banked and new payments forms emerge Integration of information-based services with payments , driven by new players and business models Targeted and contextual marketing Identity and fraud solutions Pricing and supply chain optimization

16. A Historical Shift in the Economy and Society Irving Wladawsky-Berger