Things happen quickly in digital transformation—and not just in terms of digital disruptions.
A few years ago, it seemed China was lagging behind in digital transformation—content to produce copycat apps and services but not investing in their own innovative piece of the digital marketplace. Fast forward to 2019, and China has become a true global powerhouse, accounting for 40 percent of global e-commerce transactions (compared to just 1 percent a decade ago) and set to play a leadership role in the rollout of the ubiquitous—and highly necessary-5G. Indeed, with a new influx of savvy, innovative digital workers moving into the country, China has the chance to start making its own tech disruptions—even in areas like AI and machine learning, which previously belonged to Silicon Valley. It’s time for American companies to take notice.
You’re not alone. Even we at Futurum had doubts about its ability to pull rank and lead in digital transformation. That time is officially over. The following are just a few reasons we should all be paying attention to China’s tech boom.
I may be alone here, but I don’t think China’s tech boom is bad for the rest of us. Though the country may be responsible for taking some jobs from Americans in the past, I think the global economy is changing so rapidly that there is plenty of room for us both to benefit from the country’s advancement. From 5G to fintech, we’re seeing a bigger focus on consumer-driven tech development in the country, with new business models that may inspire change here, as well. For instance, China has been expert in “disintermediation”—removing the middle man by connecting consumers directly to their favorite suppliers in almost any industry. They’ve also been key in “disaggregation”—separating certain tech services to make them more efficient and accessible to different people.
What I know for sure is this: all of us should be constantly learning from one another in digital transformation. That’s how the biggest and best ideas are born. From what I see, China is in a place where they can now teach us valuable things, and where they can play more meaningfully on the powerful things we teach them. Whether you see the country as competition or potential collaborate partner—it’s time to start paying attention.
The original version of this article was first published on Futurum.
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