The Next Phase Its Better Than You Think: Recent IT Trends Rob Atkinson Vice President, Progressive Policy Institute Director, Technology and the New.

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Presentation transcript:

The Next Phase Its Better Than You Think: Recent IT Trends Rob Atkinson Vice President, Progressive Policy Institute Director, Technology and the New Economy Project

The Next Phase Founded in 1989 by the Democratic Leadership Council 501 (c) (3) Mission is to define and promote a Third Way progressive politics for the Information Age An alternative to the liberal impulse to defend the bureaucratic status quo and the conservative bid to dismantle government The Progressive Policy Institute

The Next Phase The digital economy continues to be the key driver of productivity growth, and holds the key to economic growth over in the next two decades. Average Annual Productivity Growth IT-Intensive Industries 3.16% Other Industries 2.30% Source: Kevin Stiroh, Federal Reserve Bank of NY

The Next Phase The Revolution We are living in a third industrial revolution. The Internet is the greatest thing since Guttenbergs printing press. Commerce in the next decade will change more than its changed in the last hundred years. (Jack Welch, chairman GE, 1995)

The Next Phase The Counter-Revolution The greatest benefits of computers lie a decade or more in the past, not in the future. ( Economist Robert Gordon) There is no new economy. Notions of the new economy were mere idealism that is now getting a lesson in reality. ( John Dvorak, Forbes magazine)

The Next Phase The Reality

The Next Phase Productivity Source: Bureau of Labor Statistics

The Next Phase Investment in IT Equipment and Software Source: Bureau of Economic Analysis

The Next Phase Computer Purchases Source: Bureau of Economic Analysis

The Next Phase Telecom Network Investment Source: Bureau of Economic Analysis

The Next Phase Venture Capital Source: Natl Venture Capital Assn

The Next Phase High Tech Jobs Source: Bureau of Labor Statistics

The Next Phase Internet Hosts Source: Internet Software Consortium

The Next Phase Online Population Source: NTIA, NetRatings.com

The Next Phase Workers Using the Internet Source: Richard Freeman, Harvard

The Next Phase Online Services Source: Pew Internet Project

The Next Phase Federal Tax e-Filing Source: Internal Revenue Service

The Next Phase Holiday Online Shopping Source: Pew Internet and American Life project Americans (mil.) buying holiday gifts online

The Next Phase Growth in e-Retail Source: Census E-Stats

The Next Phase Online Ad Revenue Source: Interactive Advertising Association

The Next Phase Broadband Adoption Source: The Yankee Group

The Next Phase So Why Did The Bubble Burst? Expectation: The Internet and E-commerce would be driven by new services consumers would pay for. Reality: The real growth in E-business will be to drive efficiency and cut cost. Expectation: Transformation would be fast, painless and sweep away the resistors. Reality: Supplanting an old industrial network built around machines, paper, and people takes considerable time and brings considerable disruption.

The Next Phase So What Do We Need to Do? 1.Recognize that the real impact of IT will be through digital transformation of entire industries. 2.Recognize that innovations in the IT sector are far from over, and that while customer-led adoption will be the driving force, vendor-led innovation still offers new possibilities. 3.Recognize that we need to move to a new phase of IT policy that focuses on removing barriers and creating conditions for the widespread transformation of whole industries.

The Next Phase Move beyond the fashionable skepticism, and Dare to Dream Again about the potential of IT to transform our economy and our lives.

The Next Phase Rob Atkinson (202)