At Premise, we have a front row seat to globalization 4.0 due to the nature of our technology. With the upcoming 2019 World Economic Forum Annual Meeting focused on “Globalization 4.0: Shaping a New Architecture in the Age of the Fourth Industrial Revolution” it is the perfect time to share some of our insight on how technology is shaping Globalization 4.0.
What is Globalization 4.0?
In the words of the World Economic Forum, “Globalization is a phenomenon driven by technology and the movement of ideas, people, and goods.” Technology is having a profound impact on Globalization 4.0 due to its ability to revolutionize the flow of goods and services.
Globalization 4.0 is intrinsically linked to the fourth industrial revolution. The fourth revolution is thought of as the digital revolution capitalizing on the development of technology to automate production from the third industrial revolution. New technologies are redefining how people’s needs are met and disrupting existing value chains. One such shift in which Premise is engaged is the power of data collection and analytics to optimize performance in previously inefficient sectors.
At Premise, we’ve seen first hand how the proliferation of mobile phones across the world is impacting technology and economy. As access to mobile phones grows for citizens in emerging countries so does the potential and ability for them to join the new economy.
The Future of the Economy and Human Capital
The on-demand gig economy for service delivery is no longer a far fetched concept but is a booming market. Hundreds of companies like Uber, TaskRabbit, Angie’s List and Postmates are redefining the service industry.
Arguably one of the most famous operators in the gig economy is the ride-hailing company Uber, which has made waves globally in the last 10 years. The company indicated that it will be going public in 2019 with an estimated valuation at $120 billion, as has its largest competitor Lyft, with a valuation $15 billion.
In 2017, one of the TaskRabbit, a well-known gig company that connected freelance workers with jobs was purchased by Swedish furniture behemoth Ikea. The company records over $35 billion in sales annually, so while the price tag on the acquisition wasn’t disclosed it demonstrates that the big players in the market understand the trend toward gig work around the world.
In many ways, the future of the economy and the future of human capital are linked. For many companies to continue growing it requires operating outside of their home countries and entering into new emerging markets. This transition to be successful requires an immense amount of investment and understanding of the unique challenges of each locations’ economic, political and cultural environment.
Companies often fall into an information bias and make decisions on based on data they have because what’s easiest because they have it, instead of seeking out data to answer their questions. By crowdsourcing data, companies can collect the information they need to operate globally efficiently and at scale.
The gig economy allows for the algorithmic management of human capital through a task marketplace versus the labor-intensive direct management of Contributors. A solution like Premise allows for the collection of unbiased information in bulk, often from markets that are difficult for companies to access. This is due to the ability to use technology to connect to a network of on-the-ground gig workers that not only posses unique insight but can be tasked to collect directed information.
For many of the people engaging with Premise around the world as a gig worker, the ability to complete tasks in exchange for micropayments has greatly improved the quality of their life. Since the Premise App easily integrates into peoples lives the can conveniently make money on their own time to supplement other income streams. Not only have we seen gig work serve as a source of income for Contributors but we have witnessed how working in the gig economy can help bring citizens in emerging economies into the formal financial sector.
Without the evolutions of the industrial revolution and globalization 4.0 what Premise does would not be possible. As technology continues to evolve and become more prolific around the world the access and capabilities of citizens in emerging countries will continue to push forward human progress, continuing to shape the future of the economy and human capital.