Real time economy:
Today’s reality of digital connectivity
Real time economy
In recent years, our economy has undergone a rapid transformation toward an on-demand model. With the introduction of smartphones and apps like Airbnb and Uber, people have been granted unprecedented access to giving feedback on products and services. As a result, consumers have been brought upstream into the product development life cycle and now expect businesses to bend to their needs. This consumer shift has set the stage for what is to come in the enterprise. New technologies are radically transforming the workplace. In the near future, we’ll see the demand for instant gratification and access to information intensify even more. On-demand is no longer just a gimmick; it’s a reality. As the dust on these changes settles, a new real-time economy will emerge. Real-time economy (RTE) is a digital ecosystem where transactions between diverse economic actors take place in or near real time. This means replacing paper-based business transactions and administrative procedures by automatic exchange of digital, structured and machine-readable data in standardized formats. When we talk about real-time economy we mean many things but obviously mainly today’s reality of digital connectivity creating the conditions for it. Real-time covers all aspects of business and society, from product development and go-to-market to HR, decision making and customer service. From a technology perspective we’re talking about fast data, artificial intelligence and the algorithm economy, big data analytics, the cloud, mobility (with mobile being the driver of the real-time consumer) and more. This results in faster and automated data exchange, better access to information and widespread adoption of RTE solutions, which should reduce process delays, save resources and transaction costs, increase organizational efficiency and business competitiveness, reduce bureaucracy in business, increase the speed and quality of decision-making processes, improve transparency, and stimulate economic and social innovation. In addition, a strong partnership, cross-border cooperation and interoperability will make it easier for companies to extend their business in the region and help increase export capacity. There are multiple ways in which people, organizations, and countries can participate in the real-time economy. Real-time economy can be classified into the following 4 components:
- Real-time Society
- Real-time Innovation
- Real-Time Supply Chain
- The algorithm economy
There is an acceleration of almost every societal process, triggered by digitization. The digital society has become a real-time society, since smart, networked devices allow to permanently update the data base as well as the situation picture and to communicate relevant information to all participants – almost in real-time. In the real-time society process of planning and acting no longer take place sequentially, but rather simultaneously.
Real-Time Innovations has a proven product suite that enables hundreds of applications to securely share information in real time and work as one integrated system. Real-time innovation processes deal with ad hoc network collaboration for innovation in unplanned and unpredictable environments. Today, they represent a growing challenge for many industries and societal actors. Successful real-time innovation processes do not only require expert knowledge and strategic management expertise but do strongly rely on implicit and tacit knowledge and intuitive, entrepreneurial mindsets. Often, this mindset is not vital in industries and innovation management fails.
Real-time supply chain
The combined innovations in telecommunication and applications have allowed the emergence of real-time supply chains. The motivation behind the real-time supply chain is to let the supply chain serve the customer. In the real-time supply chain, all parties (e.g. warehouse, production factory and supplier) are informed in parallel after the customer submits the order. Due to integrated information systems and high-speed communication infrastructure, the inefficiencies will be addressed. The parallel access to the order data allows collaboration and coordination of supply chain activities: manufacturing and production systems will automatically trigger to inventories, and a prediction is made when the product can be ready. The direct communication goes beyond the focal company to suppliers for automatic reordering and possible alternative suppliers are contacted. The forecasts are adjusted immediately on the actual orders. The customer is provided with up-to-date information about the status of the order.
The algorithm economy
Algorithms are nothing new. But as information technology has developed, algorithms have become more affordable and thus almost ubiquitous. Algorithmic tools are quietly but persistently being implemented around the world. They are everywhere from law enforcement to healthcare, making decisions that influence our lives. The algorithm economy is an innovative movement where companies buy, sell or trade algorithms to create smarter apps.