Disruption eruption

We have entered the era of the fourth industrial revolution, characterised by sweeping digital transformations and cutting-edge technological advancements.

This era is defined by four key disruptive technologies:

• seamless connectivity with cloud and blockchain;
• advanced data analytics like artificial intelligence (AI) and machine learning;
• human-to-machine interactions, such as virtual reality, automation and robotics; and
• innovative manufacturing techniques, including nanotechnology and additive engineering.¹

Numerous tech hubs have sprung up worldwide, with California’s Silicon Valley standing as the most renowned. However, in recent years, technological innovation has moved eastward, with the Asia Pacific region being transformed by digital and advanced tech developments.

Research from the McKinsey Global Institute shows that between 2010 and 2020,² the Asia Pacific region contributed 52 per cent of global technology company revenue growth, received 43 per cent of start-up funding, and accounted for 51 per cent of research and development spending.

Several cities across the region, including Bangalore, Beijing, Hong Kong, Seoul, Singapore, Sydney and Tokyo, have become leading technology hubs. They are renowned for their advancements in areas such as AI, big data, biotech, blockchain, cybersecurity, e-commerce, fintech, gaming and mobile technologies.³

Since 1868, Japan has been at the forefront of technology in the Asia Pacific region through the modernisation efforts of the Meiji era, and it is globally recognised for its achievements in robotics, electronics and the automotive industry. Japan's initiative ‘Society 5.0’ seeks to utilise technology to foster economic growth while tackling social issues, such as rural depopulation and an aging population, through the use of AI, robotics, and the Internet of Things (IoT). The IoT, which involves physical objects equipped with sensors, software and network connectivity, to process and share data with other devices and systems, is key to Japan's vision of merging cyberspace with physical space.

China and India are, among others, at the forefront of blockchain technology innovation. India is home to leading blockchain development companies, whereas China is concentrating on research and development to explore blockchain applications beyond just recording cryptocurrency transactions.

Although the growing popularity of Blockchain is often linked to the widespread adoption of cryptocurrencies, its potential applications extend beyond just digital currencies. In China, for instance, Blockchain technology is expected to play a crucial role in verifying the real-name identities of the country's 1.4 billion citizens.⁴

Additionally, China has introduced its own cryptocurrency, the digital renminbi, which is recognised as legal tender and carries the same value as other forms of China’s currency, such as paper bills and coins, commonly referred to as the Chinese yuan (CNY).

Published in September 2024, Citibank's fourth edition of its evolution of securities services white paper series, revealed that the Asia Pacific is at the forefront of global efforts to commercialise digital assets and distributed ledger technology (DLT), which includes the blockchain.⁵

South Korea is acclaimed for its world-class technological expertise, particularly in AI and blockchain innovation. The country is celebrated as a premier global hub for information and communication technology, including cloud technology. Its success is driving significant changes in the manufacturing sector in the country, enabling digital transformation and enhancing operational efficiencies.⁶

Singapore, too, boasts a high number of technology start-ups and is renowned for its smart city initiatives and digital economy. In 2024, Singapore unveiled Smart Nation 2.0, which highlighted new opportunities created by digital advancements and laid out the country's plan for a digital future for all.⁷

Technological advances and digital transformation have affected nearly every aspect of society. It has transformed societal behaviour, thinking and interactions, as well as the functioning of businesses and industries.

Undoubtedly, one of the most revolutionary technologies today is AI. It has seamlessly integrated into our daily lives and is profoundly reshaping our work environments. There are concerns that AI might one day outpace human abilities and take over the world. On the other hand, many believe that collaboration between humans and machines could lead to a brighter future and enhance our lives. Setting aside any biases about tech and digital assets, it is, in the author’s opinion, evident that digital transformations and new technological innovations have mostly been positive changes that genuinely benefit society.

When we consider our plans for ourselves and future generations, it is crucial to remember that technological advancements will transform our environment. This transformation will require us to adopt new ways of thinking and develop different skills in the coming years.

‘Disruption eruption’ was first published in the STEP Journal Article vol 32 issue 6 - Asia Pacific Tech and Digital Assets..

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