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Thought Leadership Series

Digitalisation
a vehicle of the new age of transformation
Disclaimer:

The information contained in this publication is of a general nature and is not


intended to address the circumstances of any particular individual or entity. The
document has been prepared with the help of various sources believed to be
reliable, but no representation or warranty is made to its accuracy, completeness
or correctness. Whilst due care has been taken in the preparation of this
publication and information contained herein, Mazars takes no ownership of or
endorses any findings or personal views expressed herein or accepts any liability
whatsoever, for any direct or consequential loss howsoever arising from any use
of this publication or its contents or otherwise arising in connection herewith.
FOREWORD

We are living in a dynamic world where technology. The landscape of this digital age
speed is of essence and transformation is increasingly being driven by innovations
is the key to success. From the flickering in e-communications, e-commerce
monochromatic images that appeared and ever increasing deployment of the
first on the television sets of 1930’s to internet to create economies based on
the 3D Hi Definition images in a modern high technology, massive communication,
day ultrathin LED display televisions, the knowledge creation and innovation. It is
world that we live in has seen changes important to understand and appreciate the
driven by innovation. The impact of digital factors that are ushering in such changes
technologies is prevalent in every spectrum and how these are impacting the modern
of our lives and consequently the current day business.
era is also termed as the “digital age”.
Mazars has in this whitepaper analysed
The process of digitalisation started some pertinent issues which throw light on
some five decades back with the advent how digitalisation has become a vehicle of
of computing technologies and digital this new age of transformation.
electronics. Today digitalisation can be seen
as a tool of transformation which extends I am confident that you will find this
Miguel De-Fontenay
beyond our lifestyle to the way we transact, whitepaper useful to your business. We
Global Consulting Leader interact and conduct business. Across all would be happy to discuss any specific area
Mazars sectors, be this communication, media, that you would be particularly interested in,
healthcare, retail and manufacturing, we in greater detail.
are increasingly seeing the use of digital

Contents Foreword
Executive summary
3
4
Emergence of the new economy and its challenges 6
Information dissemination: challenges in today’s world 8
Analogue to digital data: route to e-commerce 9
Industrial revolution in the new age of digitalisation 11
Industry focus 12
Media & entertainment 12
Retail 14
Publishing 15
Telecommunication 16
Healthcare 17
Digital social isolation 18
Challenges & future outlook of digitalisation 20
Executive summary

Digitalisation, as we call it today, is the past one decade. However, when


sweeping across every aspect of our analysed with a focus on different regions
daily lives in all possible ways. Right globally, it is apparent that this growth has
from gathering the news we find in the not been uniform. There remains a huge
newspapers every morning to the billing disparity in the growth pattern between
process at our neighbourhood grocery high and low income regions. This gap
shop, it is digital technology that is is further accentuated due to the vast
making tasks faster and more accurate. differences between regions in the context
The economy today is no longer driven by of their ability to access modern digital
real currency transactions only, but also communication tools.
by concepts of e-commerce and electronic
transactions that take place, across the The increasing use of digital media
globe, within a matter of seconds. in business communication and data
dissemination has led to a rapid growth of
This digital revolution is now increasingly e-commerce and m-commerce across the
dependent on the generation and world. Dependence on internet has led to
transmission of information, while businesses getting established over the
capitalizing on advancements in computer internet and leading to faster trade of wealth
systems. The ease of information and assets, in most cases by using secured
transmission has allowed the growth of a internet transaction systems. Business
new world economy, which is characterised transactions over social networking sites
by rapid global communication and social have lead to the coining of a new term
networking through digital media. In called “social shopping”. The opening up of
addition, goods & services have become the telecom market and the blossoming of
more technology focussed and knowledge broadband have further paved the way for a
centric. The concept of knowledge flourishing e-commerce sector.
economies is becoming increasingly
pertinent in the present scenario as This is not limited to marketing and
nations build up special programmes business transactions alone. Digitalisation
towards the improvement of their has brought a paradigm shift to the
knowledge pool. traditional ways of manufacturing, handling,
storing and transporting things. Computer
However, there are challenges in growth aided designing and manufacturing
of these knowledge pools. Around 28% processes have revolutionised the
of the world’s population uses internet or manufacturing industry and the deployment
internet based communication platforms of industrial robots (which are digitally
to interact with one another and this usage controlled) have become the order of the
has increased by almost five folds during day across industries.

4 | Digitalisation
The scope of digitalization is immense people are getting involved with social
and its role on the transformation of networking sites to communicate and
our lives may span across innumerable make friends in the virtual world.
business sectors. As a part of this
thought leadership whitepaper, Mazars It is evident that the digital world is not
has analyzed some key driving factors devoid of challenges posed by antisocial
responsible for the digital transformation elements and the forces which tend to
in the world that we live in today. This create disruption in the lives of the people.
publication also provides some interesting From internet frauds to electronic virus
perspectives on certain sensitive attacks in the communication networks,
and critical issues of this era such as the age of digitalisation poses a whole new
industrial revolution in the digital age, set of issues for the world to encounter and
data management and transmission, overcome.
growth of e-commerce and their role in
changing business environment. Certain With intrusion of digital technology in
industries such as Media & Entertainment, every possible arena of innovation, the
Healthcare, Publishing and Retail which future seems ever changing with new
have implemented tools and techniques technologies evolving almost every day.
of the digital era have gained maximum Indeed while technology has greatly
benefit. This publication also contains improved as time has passed; scientists
an analysis of some important aspects are continually working in order to develop
relating to the extent such tools have useful products, which facilitate our lives.
been adopted and the advantages as Even though some may well argue that
well as flipside of the ever increasing technology has lessened the quality of our
implementation of these technologies lives, others have a view that this may have
in these sectors. In addition, we have well made our lives easier. Digitalisation has
provided an assessment of how the ill provided to us better knowledge with faster
effects of overindulgence in digital or the ways of locomotion and communication.
virtual world have lead to social isolation, After assessing various perspectives,
which is more often termed as “digital developments and outcomes, what appears
isolation”. Social interactions become to be coming out very clearly is that it is a
limited under such circumstances and lead balanced and effective use of digital tools
to isolating people from the real world. and techniques that can eventually make
This situation leads to many other social our dreams of today, a reality of the future,
issues which are increasingly being openly while making our world a better place to
debated in various forums on negative live in.
effects of digitalisation, especially in a
situation where an increasing number of

Mazars Thought Leadership Series | 5


“Knowledge
Economies Index
takes into account
key variables in
four knowledge
economy pillars
- economic
incentive &
institutional
regime, education
& human
resources, the
innovation system
& information and
communication
technology”

Emergence of the new economy

The industrial revolution that swept the such technologies in the two decades after Products themselves are increasingly
world decades ago had set forth a base 1990. The information age has allowed characterised by knowledge content. Adding
for an economy which was dependent growth of the new world economy and as ideas to the products and turning them into
on manufacturing. However, by the end such has been characterised by rapid global new products is becoming crucial to wealth
of the 20th century, the world has seen communications and networking to shape creation. Digitalisation has helped in more
the rising of a new economy which has the modern society. than one way and the rapid growth of trade
transformed from heavy industry to new and commerce across the world is being
knowledge driven technologies. The use Although the new economy, which may also made possible by digital communication
of knowledge in technologies such as be termed as digital economy and which is and digitally controlled rapid transportation
knowledge engineering and knowledge marked by e-commerce and m-commerce, systems.
management has led to an age of rapid has become a widely accepted phrase, it
information dissemination and the process is still not precisely defined. It is currently Thirdly, the new economy is completely
of transformation has been accentuated by identified by e-communication and internet consumer centric. Products are increasingly
digital technologies, developed across the based businesses, which combine to form being made to order and information is
world. its backbone. personalized. A widely held hypothesis
is that the individualization is the key to
The new information economy which is Several important trends collectively success – particularly as one goes from a
largely dependent on digital technologies, contributed to the rise of the new economy. large to a small and to a smaller group and
is linked to the concept of a digital age First, today’s goods and services have finally to the individual level.
or digital revolution and carries the become technologically sophisticated and
ramifications of a shift from traditional knowledge-intensive. One unique way to depict how well
industry to an economy based on countries across the world fare in terms
the generation and transmission of Second, for technological and competitive of managing their knowledge economy is
information. reasons, knowledge is increasingly through the global Knowledge Economic
becoming a distinctive factor in the new Index (“KEI”). KEI itself was designed as
The information era is a phenomenon economy. The knowledge-driven economy an interactive means for the benchmarking
where the current economy is dependent is not only about new high-tech industries, a country’s position vis-a-vis others in
principally on the ability of individuals to neither is it confined to a particular today’s global knowledge economy and
transfer information freely and to have technology but it is about those aspects was created by the World Bank Institute.
instant access to knowledge that would and sources which can potentially create a This takes into account key variables in
have previously been difficult or impossible competitive advantage; and with this the four knowledge economy pillars - economic
to find without digital technology. This ability to innovate, to create new products incentive & institutional regime, education
digital economy has been formed by and exploit new markets. As knowledge has & human resources, the innovation
capitalizing on advancements in computer become the driving force for the economic system & information and communication
systems, with the transition spanning the growth, organisations across the globe are technology.
introduction of home computer in the 1970s depending on the success of application
to the 1990s when internet was accessible of human know-how in everything they Knowledge is being put to work every day
to the general public and the adoption of produce and the ways of producing it. to accelerate and deepen the development

6 | Digitalisation
process. When applied to all types of assets such as education, innovation,
innovation, including the more modest information and communication
ones in the use of basic technology, it technology. With globalization and the
becomes a major resource for wealth technological revolution of the last few
generation and job creation. While various decades, knowledge has become the key
types of knowledge, including the most driver of competitiveness and is now
traditional can be of use; at the same reshaping the patterns of the world’s
time there is a need to invest in advanced economic growth and activity. It is
technologies to stay competitive. In therefore imperative for both developed
these times of accelerated globalization, and developing countries to think, with
“grey matter” or knowledge is a country’s some urgency, about their future in terms
main durable resource. Its exploitation of becoming and sustaining themselves as
for economic and social well-being is KE’s. To become successful KE’s, countries
increasingly at the center of development have to rethink and act simultaneously
strategies. on their education base, their innovation
systems and their information and
The central role of knowledge and communication technology infrastructure,
innovation in economic growth is widely while also building a high-quality economic
acknowledged in advanced countries and institutional regime.
and the experience of those that have
championed this new paradigm has led to The role of digitalisation in transforming
the coining of the expression of Knowledge the countries into KE’s and sustaining them
Economies (“KE”). However, this notion over a period of time is vital. The thrust
is less widely accepted among developing to the pillars of KE’s can only be provided
countries, the elaboration of appropriate if a country is able to internalise the
and efficient policies for knowledge based advancements in the digital world and put
development processes is particularly them to optimal utilisation in the growth of
challenging in view of the more difficult intellectual and knowledge dissemination.
political and economic environment in The future global economy, is dependent on
some countries. smart business processes and tools and is
termed as digital economy.
One of the major challenges in the
information era that is backed by the digital
technology pose, is building of KE’s. This
is primarily intended for the policy-making
community of developing countries and
deals with advanced development strategies
that focus on policies to address intangibles

Mazars Thought Leadership Series | 7


“The growth of
internet users has
been at a staggering
445% in the past 10
years.”

Information dissemination: challenges in today’s world

The internet is rapidly becoming a Internet users in the world by regions 2010 Even if there is access to internet, in many
mass medium for information and data regions of the world data transmission is slow
dissemination. Our research shows that an due to use of obsolete technologies with poor
estimated 1.96 billion people were online connectivity. However with introduction of
globally in 2010 which is about 28% of the broadband services worldwide, the scenario is
global population. The growth of internet changing. Network Service Providers (“NSP”)
users has been staggering at 445% in the like Level3, UUNet, Sprint, AT&T, Savvis, Qwest,
past 10 years. Within five years, internet Time Warner and NTT, play important role in
penetration has reached the level that connecting the masses through the internet. It
television took more than 15 years to achieve. was estimated that around 500 million internet
However this situation, if viewed in pockets is subscribers use broadband. As per the latest
different across the world. available data, China Telecom led the pack of 10
It has been warned that if left purely to market
largest broadband service providers followed by
The USA had initialy represented over half of forces, the digital economy could foster a
China Unicom. The two Chinese ISPs account
the global internet users, but by the year 2010, two-tiered society, creating a big gap between
for nearly 20% of the world’s broadband
internet penetration from Asian countries those who can communicate with the world
subscribers.
had increased to 42%, whereas Europe’s and those who cannot. For example, in
share had increased to 24%. At the same USA there is a direct relationship between Mobile networks are fast becoming the
time North America’s share has fallen to family income and access to computers and mode of information dissemination with the
13% from a shade under half of the internet internet. Although some observers argue that introduction of data services both in the 2G
users 10 years back. There are disparities this is temporary, our research shows that and 3G spectrum. 3G spectrum is rolled out
within Europe, as some parts of Europe have this gap is widening rather than disappearing. in almost every corner of the world now, and
moved online faster than others. Northern Globally, most children today are not growing statistics show that most of the revenue for the
Europe has reached a greater penetration up digital. Among the billion people born in network operators come from data services
rate than the South with the penetration in the last decade, 97% were born in developing rather than voice services, which indicates that
Germany and the UK accounting for nearly countries often lacking food, housing, and more and more information sharing would
50% of European internet users. There is a education. Interestingly, more than half of the happen over this network as over the internet,
similar contrast on a vertical platform with 1.2 billion children in the world, aged six to globally. This should help in bridging the gap
Western Europe being higher than the Central eleven, have never made a phone call. to a certain extent over a period of time.
and Eastern Europe (“CEE”). Altogether this Growth in mobile cellular subscribers
However, the real gap comes between the
means that compared to the USA, the growth
developed and the developing world. There
potential in Europe is extremely high. The 5 3G
are still people in the latter who do not have
situation in the rest of the world, especially 4
2G
access to telephones. With the network
Asia has been very inspiring as it now
becoming the basis for commerce, wealth 3
Billions

contributes more than 40% of the worldwide


creation, jobs, learning, health care, as well 2
internet usage. The ensuing chart gives a
as social development, these countries will
snapshot of the internet usage pattern in 1
become severely disadvantaged. Being poor
different regions. 0
involves being information-poor as well. 2005 2006 2007 2008 2009 2010
Source: ITU World Telecommunication/ICT Indicators database

8 | Digitalisation
“Social networks
like Facebook
and e-commerce
are beginning to
converge leading
to what has been
termed as Social
Shopping”

Analogue to digital data: route to e-commerce

VCRs, tape players, and record players interactions between the seller and the communicate directly with each other to
are now the devices of the erstwhile era of customer. 15 years back, websites like exchange information, products, services,
analogue recording, where data was linearly E-bay and Amazon opened their shops or make direct payments to each other,
recorded from one point to another. With online, and ever since, this phenomena have become increasingly popular. Crowd-
the introduction of digital technologies, has changed drastically with the buying sourcing is an extension of the P2P model
recording and storage of data took place and selling process moving to a virtual and facilitates group communication
through the binary system using zeroes and transaction world. This led to the terms in niche areas. Also, social media such
ones. This resulted in advent of terms like e-commerce and e-business. Subsequently, as social networks like Facebook and
“sampling rate” or “bit rate,” which refer to with the advent of mobile telephony e-commerce are beginning to converge
the number of times per second the digital services being integrated with data transfer leading to what has been termed as Social
signal is sampled, The higher the number, facilities, mobile-business or m-commerce Shopping. Successful online business
the higher is the quality of sound or video. took shape. As per estimates, worldwide models are being quickly adapted or
over 85% of new handsets are currently incorporated into mobile devices in order
Lets look at why such digital transformation enabled to access the mobile internet to maximise revenue opportunities. It
took place in the first place. Computers and marketing and advertising through is now difficult to discuss e-commerce
perform digital computations, which can mobile has a market size of over USD 3.5 developments in isolation of m-commerce,
only work with digital media. Consequently, billion at present which is expected to grow as these two sectors have become so
all analog audio or video media need exponentially to about USD 38 billion by closely inextricably intertwined. Google’s
to be converted to digital to work on a 2015. gross revenue from mobile advertising is
computer. Once the information is digital, over USD1 billion per year, suggesting that
computers can be used to edit the data and E-commerce and m-commerce sectors are mobile internet based business models
create effects that were never possible with now entering a new phase of development can be main revenue earners under present
analogue media. Digital media is non-linear, as the traditional online commerce sector scenario.
which means it can be edited or played back merges with the newer web and mobile
by starting at any point, and is a timesaver tools of social media, cloud computing While the e-commerce sector has become
compared to working with tape. Digital and location based services. In addition, a competitive sector – other changes are
information also does not “wear out” after infrastructure required to facilitate online also occurring in terms of how merchants
repeated use like tapes or records do, which and mobile commerce is becoming a operate and manage their websites. Some
results in much better longevity for digital reality as high-speed broadband and e-retailers are outsourcing areas such as
media. mobile technologies become more closely security and payment processing, while
integrated. others are beginning to make use of cloud
Similarly, documents which were earlier computing. Cloud computing allows those
stored in printed form can be compared to The e-commerce model is now evolving e-retailers who do not have resources or
analogue data where such data is subject to and combining new elements of online capacity to manage their sites infrastructure
wear and tear over time. Earlier businesses experience. In addition, original e-retailers to tap into a cloud based service. Cloud
were conducted through traditional means are facing competition as services based computing that offer software-as-a-service,
involving paperwork and manpower where on Person-to-Person (“P2P”) model, which web-based access to storage and computing
transactions took place through physical refers to a service which allows users to power and give developers the tools to build

Mazars Thought Leadership Series | 9


and host web applications is one of the been successful in turning their business a key priority for many enterprises and
most promising area of IT. Organisations goals into reality. investors alike. Our experts believe that the
like Amazon, AT&T, Enomaly, Google, future directions of the e-commerce and
GoGrid, Microsoft, Netsuite, Rackspace E-commerce and m-commerce services m-commerce are likely to be focused on the
etc. have been rigorously dwelling into the have become so dynamic that keeping use of social media, location based services
possibilities of cloud computing and have abreast of the emerging trends has become and cloud computing for the digital economy.

Some facts about different countries in terms of e-commerce


y Despite the economic downturn, online spending was resilient in most markets and in the current year we have seen the
return of some growth, as tentative confidence in the world economy returns.
y Australia , Hong Kong, India, Japan, Singapore and South Korea are some countries in Asia Pacific which have embraced
online spending and there is room for substantial growth ahead in there country. It has also become recognised that China too
offers enormous potential in the future.
y Although the internet’s overall share of total USA retail sales remains relatively small (at less than 4% in the current year), the
same has increased from around 1.5% in 2003. However, this share is expected to continue to grow steadily over the next 5 to
10 years, with exports forecasting sales of over USD 240 billion by 2014.
y Western Europe is one of the key regions where global e-commerce has grown. E-commerce usage in Eastern Europe is also
growing strongly on the back of growing broadband penetration and internet usage.
y The opening of the telecom market and the blossoming of broadband has paved the way for a flourishing e-commerce sector
in countries like Argentina as well.
y Mobile commerce is potentially important for a wide range of industries, including telecommunications, IT, finance, retail and
the media, as well as for end-users. This will work best in those areas where it can emphasise on the core virtue of mobile
networks – convenience.
y While Dubai and Jordan have developed as the Middle East region’s major bases for web-based businesses and services, Saudi
Arabia, which is home to around one in seven Arab internet users, is this region’s most important market.
y In the United Arab Emirates, in 2010 Etisalat announced a partnership with Mobiqa which allows consumers to purchase
tickets via their mobile (m-ticketing).
y M-payment services carry more than 12% of the country’s GDP in Kenya.

Source: Research and Markets 2010

10 | Digitalisation
“Digital computing
has ushered in
an era of rapid
manufacturing and
robotics which in
turn are assisting
the manufacturing
sector to undergo
yet another
industrial
revolution”

Industrial revolution in the new age of digitalisation

The industrial revolution that swept Advanced CNC machines, which are manufacturing, mineral production,
the world in the 19th century, has been based on microprocessors and advanced printing; automotive manufacturing and
further accentuated by the digital era, with software applications, have helped the supply are by far the largest users of robots
the application of digital technologies manufacturing industry attain higher in their factories. In the turn of the century,
in modern day manufacturing industry. productivity. as many as 90% of the robots used in
Digitalisation of manufacturing manufacturing were used in an automotive
techniques has changed the way products The increasing usage of robots in the industry. Our research also shows that
are conceptualised, designed and manufacturing process has led to though this share has now come down to
manufactured. The shape of engineering minimisation of human intervention about 50%, automobile is still the largest
drawing boards have changed from pen and maximisation of quality assurance industry sector to use robots.
and pencil drawings on white paper in the manufacturing process as well as
sheets to computer simulated 3D models. the products. The first modern industrial Digital computing has ushered in an era of
This change has been brought about robot, called “Unimates”, was developed rapid manufacturing and robotics which in
by development of Computer Aided by George Devol and Joe Engelberger in the turn are assisting the manufacturing sector
Designing (“CAD”) and Computer Aided late 50’s. undergo yet another industrial revolution,
Manufacturing (“CAM”) technologies over but this time towards a high degree of
the past three decades. From 2D CAD, The robots of today are based entirely on sophistication leading to increased level
technology has moved on to 3D CAD computer technology. Usage of robotics of automation and quality control in
and direct digital manufacturing or rapid in manufacturing has been possible production.
manufacturing. While CAM has been in the due to advancements in digitalisation
market since its inception in early 1970’s, techniques. The development of computing
integration of CAD with other components and software that run the computers aide
of CAD/CAM Product lifecycle management robotics usage in factories. Software based
(“PLM”) environment that required an control panels, computer interface for
effective CAD data exchange have helped control and monitoring and mechanical
the manufacturing industry grow rapidly. robot hardware form the backbone of digital
The age of digitalisation enhanced these manufacturing in factories worldwide. Our
technologies to direct digital manufacturing research shows that 90% of all robots
or rapid manufacturing which is a process used today are found in factories. Although
of creating physical parts directly from robots help in almost every possible sector
3D CAD files or data using computer- such as aerospace, chemical, rubber
controlled additive and subtractive and plastics manufacturing, electrical &
fabrication and machining techniques. electronics entertainment, food & beverage

Mazars Thought Leadership Series | 11


“Digital technology
has been aptly
deployed by some
industry segments
to maximise
profitability and
optimally manage
their manpower,
supply chain,
operation and
business strategies”

Industry focus

Although, digitalisation has changed facets industry segments which have been most momentum. Modern technologies have
of almost every aspect of our lives, be it positively impacted by this transformation. been put to apt usage by these segments to
communication, fashion, media, food The business models of these industry sectors maximise profitability and optimally manage
processing, buying and selling of products have seen drastic changes over the last two their manpower, supply chain, operation and
etc., in this section we focus on some specific decades as digitalisation has picked up rapid business strategies.

Media and Entertainment


Over the years, digital technologies have must haves that even the most technophobic popular with more and more people turning
progressively increased their impact across consumer cannot live without. Cellular to it due to digitally enhanced pictures and
all segments of media and entertainment phones have been replaced by smart phones better sound quality and Value Added Services
(“M&E”) where digital transformation and desktop computers by laptops and (“VAS”) such as integrated internet access,
continues to expand and escalate. In the newly introduces tablet computers and the VOD, additional radio channels etc.
advent of the 20th century, three very evident internet has transformed from a medium
technologies had an impact on the M&E of communication to a global information The internet has become a great source of
industry - radio in 1920’s, television in 1940’s and entertainment network, transmitting entertainment with many different services
and cable TV in 1960’s. Later, introduction information on any topic in any category to available. As well as social networks, some
of VCRs, video games, wireless devices, anywhere in the world. Broadband and mobile of the most popular online entertainment
the personal computer, the internet and networks are proving to have the strength services include gambling, gaming, online
DVD players accelerated the speed of the and capacity to enable the rapid growth of dating, online music and online video.
technological change. Since the beginning of application development through the process Experts believe that in the next few years the
21st century, the world has seen a complete of convergence. overall global entertainment and publishing
gamut of technological change from MP3 industry (online and offline) is expected to
players, broadband, video on demand We now have tools at our disposal which be worth a couple of trillion dollars. Online
(“VOD”), satellite radio, social networking, are revolutionising our social and economic video in particular is becoming recognised
digital media adapters, high definition TV, Blu- environment. Mobile and online social as a powerful format for entertainment and
Ray and online gaming. media sites like Orkut, Facebook, Twitter, communication while providing an enhanced
MySpace etc. are good examples of how online experience. Google’s YouTube
A new dimension was added to media the new tools have been used to the level continues to dominate currently in terms
technologies with cellular phones, personal of personal interaction and show the of the number of viewers and broadcasts
computers and the internet which were potential that the internet, mobile, email streamed. New business models are also
introduced in 1980s. Once niche market and broadband infrastructure have to offer. emerging that explore alternate ways of
products for advanced technological wizards, The satellite television through the Direct to generating revenue from such sites. Leading
they are now seen, in developed markets, as Home (“DTH”) format has become most internet media companies also continue

12 | Digitalisation
Our research shows that the M&E spending billion in 2014. At the same year the overall The total global spending on consumer
of 12 leading countries was above USD 20 consumer/end-user spending is expected to magazines fell by 10.6% in 2009 and is
billion last year, led by the USA at USD 428 rise from USD 688 billion in 2009 to USD projected to follow a similar pattern till 2012
billion and Japan at USD 164 billion. Of the 842 billion in 201t a 4.1% CAGR. but with a less steep negative growth rate
leading countries, China is projected to be and modest growth during 2012–14. As a
the fastest growing with a 12% compound According to experts, the global video result, spending on magazines will total
annual growth rate (“CAGR”), fuelled by game market is projected to grow from USD 74 billion in 2014, with 0.7 % CAGR
a vibrant economy and large increases in USD 52.5 billion in 2009 to USD 86.8 from USD 71 billion in 2009.
broadband penetration which in turn are billion in 2014, growing at a CAGR of
expected to propel other segments. Japan 10.6%. This will make it the second fastest- Experts believe that electronic educational
is expected be the slowest growing of the growing segment of M&E behind internet books will grow at a CAGR of 36% globally
leading countries at 2.8% CAGR. advertising wired and mobile. However this but would still only account for less than
will be the fastest-growing consumer/end 6% of global spending on educational
Internet access is a key driver of spending in user segment ahead of TV subscriptions books in 2014.
most segments. Experts are of the view that and license fees.
increased broadband penetration will boost
wired access while growing smartphone The global television subscription and
penetration and wireless network upgrades license fee market is set to increase from
will drive mobile access. Experts also USD185.9 billion in 2009 to USD 258.1
believe that spending on wired and mobile billion in 2014, at a CAGR of 6.8%. Our
look
Internet access will rise from USD 228 research shows that this will outpace TV
Out
advertising, which will grow at a CAGR of
&E
billion in 2009 to USD 351 billion in 2014.
5.7%. Asia Pacific will be the fastest-growing
Our research shows that global advertising region with a 10% CAGR and is expected alM
is set to increase at a 4.2% CAGR from to rise to USD 47.1 billion in 2014 from the
G lob
USD 406 billion in 2009 to USD 498 current USD 30 billion.

to look for opportunities presented by areas where the digital media has seen a Popular Hollywood movies like Avatar, Toy
mobility, cloud computing, home media, sea change within last two decades is in Story, Day After Tomorrow, 2012, Matrix,
infrastructure etc. In all this emerging the special effects, with these in movies Harry Potter and the Lord of the Rings are
markets have also not escaped attention; are increasingly getting sophisticated. some astounding feats of special effects
China in particular is seen as a significant The growth of companies like Lucas being used in entertainment business
growth opportunity. Film’s Industrial Light and Magic Pixar, through computer-generated imagery
Silicon Graphics and others, means that (“CGI”) techniques. Some companies
Google remains the most popular web entertainment is increasingly blurring the which have pioneered this industry are
property worldwide. One of the other line between creativity and engineering. Pixar, Lucas Film and Blue Skye.

Mazars Thought Leadership Series | 13


Retail
Digitalisation provided a new dimension The emphasis of retailers is in utilizing Banking business of international banks
to the operational setup of the retailing IT solutions like Customer Relationship such as Citibank, HSBC, Standard
industry as a whole. The introduction Management (“CRM”), Online Analytical Chartered etc. is growing rapidly due to
of point of sale equipment, bar codes Processing (“OLAP”), Collaborative increasing use of e-cash gateways with
and billing and payment databases have Planning, Forecasting and Replenishment the growth of online retailing. Services
facilitated efficient management of large (“CPFR”) tools to conduct behavioural like PayPal are becoming highly popular
retail organisations. With the deployment analysis. Retail ERP packages have been amongst millions of consumers around the
of digitalisation, retail operations can be implemented by large retailers but one world for transacting on online shopping
recorded in a structured and systematic of the biggest hurdles in utilizing these portals.
manner, providing detailed analysis of optimally is the inadequate training to
the sales and volume of transactions. the end users. However, it is expected It is widely felt that the key differentiator
Electronic transactions have increased that the demand and utilization of these between the successful and not so
with the volume of sales. Flexibility in the packages will grow in the near future. It successful retailers is primarily in the area
payment terms ranging from interest free is estimated that about 400 to 500 MB of technology. Consequently, it is technology
easy EMI’s to cashless transactions have of data are transmitted daily between that will help the organised retailer score
helped in driving the sales northward. point-of sales counters and corporate over the unorganised players, giving both
While the introduction of a new technology headquarters of retail chains in developed cost and service advantages. Successful
may be intricate for some retailers, its countries. Relay of transaction data in such retailers today work closely with their
convenience and cost effectiveness creates volumes helps maintain a close working vendors to predict consumer demand,
the need for transformation. Large stores relationship between retailers and vendors shorten lead times, reduce inventory
need to monitor inventories and expenses to predict consumer demand, shorten holding and thereby, save cost. Wal-Mart
of establishments virtually on an online lead times, reduce inventory holding and pioneered the concept of building a
basis. With automated machines and thereby save cost. Retailing database also competitive advantage through distribution
high-end computers making the task helps in tracking purchase behaviour and information systems in the retailing
simpler, the focus of retailer is on retaining through demographic and psychographic industry. They introduced two innovative
customers with new strategies. Add to information. This clearly is an indication of logistics techniques - cross-docking and
this, digital security systems offer safer digital technology serving as an effective electronic data interchange. Today, online
shopping experience for retailers as well means to build the retail business and not systems link point-of-sales terminals to
as customers, providing immense mental just restricted to supporting and improving the main office where detailed analyses
relief to all the stakeholders. Point of the operational efficiency. Use of electronic on sales by item and classification are
sale (“PoS”) applications provide quicker communication like e-marketing is a cost- conducted for the vendors. Besides
consumer check-out and multiple payment effective form of attracting and retaining vendors, the focus of the retailing sector
options like credit cards. customers. With internet penetration is to develop the link with the consumer.
and awareness on the rise in the `Data Warehousing’ is an established
Retailers can now enhance the experience country, e-marketing proves to be a good concept in the advanced nations. With the
their customers receive with store and communication tool. Use of technology is help of `database retailing’, information on
loyalty cards which can facilitate tracking, being further extended to home shopping, existing and potential customers is tracked.
spending habits and buying trends. By direct mails and telemarketing while This facililates the flow of information on
knowing who, what, when and how people facilitating growth in newer applications like what was purchased and by whom, and also
buy certain products, retailers have been kiosks, intelligent vending machines, PC net on softer issues such as demographics and
developing individual campaigns, staff and shops, etc psychographics.
stock levels effectively.

Another new road in the technology to


improve their overall operations, safety
and communication is through the use
of radios. For all retailers, two way radios
are the perfect way to improve their
communication and performance. Not only
do two way radios allow members of staff to
communicate over a wide area but they can
be used as a health and safety tool by which
workers can report accidents, check stock
levels and stay in touch across the entire
site from the shop floor to the distribution
area. For example if a customer asks a
member of staff if a particular item was in
stock, within seconds sales person may
revert to the customer.

14 | Digitalisation
Publishing
From the prehistoric period, words have and consumer standpoint with publishing companies could limit this potential, but a
been incised in clay, inked with a quill and houses entering into a series of e-commerce strong new demand is there to be met.
later with inventions, printed on presses partnerships in the course of this year. Large
or transmitted as electronic bits in email. publishers like Hearst Magazines which Powerful digital distribution platforms
This is moving to dedicated eReaders, publishes biggest selling magazines such have already emerged, with select players
multipurpose tablets and other digital as Cosmopolitan and Esquire and Conde predominating this space: Amazon, benefiting
devices that according to experts could Nast publication which publishes Vogue from its first-mover advantage, Apple, riding
be in the hands of 15% to 20% of the are teaming up with online merchandising on the success of iTunes, and possibly Google
developed world’s population in the next 5 agencies to boost up revenue through selling in the near future. These platforms use data-
years. This new format is expected to trigger products featured in their magazines. Also, mining algorithms to extract a new kind of
a profound change in the publishing world online publishing services are fast catching consumer insight. In essence, they seek to
and start new trends in content creation. up with publishers like iUniverse, Author step into the advisory role of the individual
House, Infinity Publishing, Bookstand bookstore owner. More than that, virtual
Several factors suggest a fairly smooth publishing, promoting and selling books distributors could upend today’s book-selling
evolution toward the digital age, including through the internet. Unlike portals such as hierarchy, altering everything from its vast
most readers’ continuing attachment to Amazon, these are not only sites which sell physical distribution networks to authors.
paper, the complementary nature of eBooks the books but publish and market them too. These could even contribute to the emergence
and paper and relatively limited electronic of truly global book publishing markets.
piracy. Nevertheless, with 15% to 25% of Experts believe that the emerging scenario
book sales shifting to digital format by 2015, would see a shifting balance between Writers, in particular, may be able to carve
the publishing industry is heading into eReaders, such as Amazon’s Kindle and out a new and direct role in consumer
wholly new territory. The penetration rate multipurpose tablets such as Apple’s iPad. relationships. Social networking sites such
could reach higher levels if multipurpose Previously, eReaders could capture as much a Twitter are being increasingly used by the
tablets continue to penetrate into the as a third of the market, based on a price authors to popularise their books and create
gizmo market across the world in their advantage and a reading experience that a one-to-one relationship with the readers
current upward trajectory movements. As closely matches that of paper. Multipurpose which was an elusive situation earlier. The
USA, Korea and China are setting the pace tablets, priced above most consumers’ USD anticipation for a particular book goes
in this context and could see very high 300 psychological threshold, are still too up amongst the readers once a personal
penetration rates by 2015 whereas other expensive for mass-market adoption. Yet over bonding with the author is achieved over
countries, particularly those in Europe, time, they could predominate by capitalising such social networking sites. Hence, the role
will eventually catch up. Over the past 20 on multimedia capabilities that appeal to of author in the modern publishing world
years, digitisation of content has shaken a broader audience even as their prices becomes more vital. Authors are in an ideal
the economic foundations of industries like inevitably decline. Indeed, access to other position to benefit from the digital era.
the press, music and video. The absence media and valuable functions may open the Best-selling authors in particular should
of convenient e-reading platforms had gates on eBook penetration rates. gain more bargaining power with publishers
protected books from such a revolution and distributors, which could increase
till now. However, the emergence of new Emerging consumer behaviours will affect their share of the profit pool. A number
mass-market devices, such as dedicated literary genres differentially in terms of their of authors have already unbundled the
eBook readers or multipurpose tablets, has acceptability in digital format. In other words, physical and digital rights of their works to
put an end to that reprieve. However long distinct adoption rates and business models increase their negotiation power.
it takes, conditions are perfectly aligned for will impact fiction and nonfiction works,
readers to embrace digital devices. Prices guide books, illustrated books and children’s The advent of digital publishing raises
have sunk below consumers’ purchasing literature or information. Reference books, some fundamental questions as to how and
thresholds, with some e-Readers already such as encyclopaedias and maps, have who shall preserve tomorrow’s electronic
less than USD 125. At the same time, the already migrated to digital formats. Almost content? What is to be preserved and which
reading experience and ergonomic designs all are now available free on the internet, are to be left out? Who will decide on it and
are improving. which has dramatically depressed print sales. under which criteria? Countless libraries,
Today, the static nature of first-generation national or private, have already begun
Given the pace of transformation, authors, electronic formats has made both publishers digitising paper-based content to secure its
publishers, distributors and retailers may well and consumers focus first on fiction and preservation. This is a colossal task requiring
need to rethink their business models and nonfiction and in coming next 5 years, such equally large investments. The digitalisation
their relationships with one another. They will works will likely remain the genre which is of content and its preservation is a big
have to address several critical challenges: most widely read on digital formats. Digital business opportunity for many organisations
pricing policies that secure the industry’s offerings for other genres, such as lifestyle across the world. The digitalisation of
changing profit pools, redefined distribution guides, illustrated books and children’s publishing has opened doors to many
networks that preserve format diversity and books, remain relatively limited today. But opportunities not only to the people directly
the reallocation of value among industry their production could accelerate to meet the related to this industry but also to others
participants. Blending editorial with retail strong consumer expectations. Competition who tend to support this industry through
has become advantageous from economic from today’s magazine and internet digital technology innovations.

Mazars Thought Leadership Series | 15


Telecommunication
Telecommunications is a captivating, Growth of broadband subscriptions per an approach known as forbearance where
fast paced and one of the world’s largest 100 inhabitants in last one decade incumbents have no obligation to offer
industry sectors that influences every aspect access to other operators once they have
of our daily life like normal voice phone 25 upgraded to NGN. The European Union
calls, connectivity to the internet, satellite 20
(“EU”) is opposed to this approach and
communications, surfing the web, fax has opted for charging risk premiums for
Deve o
Developed
transmissions, video conferencing, high 15 World
or NGA access. Japan is the global leader in
Developing
Deve opin
speed data communications and cable TV. 10 deploying NGN broadband networks, but
It started with first public demonstration for successful implementation of NGN,
5
of Morse’s electric telegraph, Baltimore there has to substantial investments in
to Washington in 1844. In 1876 Alexander 0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
the fiber cable networks across the world.
Graham Bell created history by exchanging Demographics, topography, regulatory and
world’s first two way long distance telephone Source: ITU World Telecommunication/ICT Indicators database political scenario along with consumer
conversation between Cambridgeport demand are key factors that are driving
and Boston, Massachusetts. Times have Region-wise mobile phone investments in fiber cable networks that
changed since then in a dramatic manner subscriptions per 100 Inhabitants, 2010 enable NGN.
with the emergence of digitalisation in the
field of communication. Telecommunication 150 2009/2010
growth rate (%)
25 Digital infrastructure is the backbone of
today is one of the most exciting 20 telecommunication and according to the
100 reports of financial analysts, in USA alone,
Subscriptions

occupational fields that modern society has 15

to offer. New techniques through innovation 10


the overall capital investments by telecom
in digital data transfer technologies are
50
carriers, cable TV companies, and broadband
5
constantly being developed which find wireless providers was USD 51bn in 2009 out
0 0
applications in the technical systems that CIS Europe The Arab Asia & Africa of which almost 60% went to further boosting
Americas States
make up a telecommunications network. and setting up infrastructure for broadband
services. Digital switches have become
indispensable part of active infrastructure in
telecom sector. The BRIC markets comprising
Brazil, Russia, India and China are expected
to see the spending on telecommunications
grow to nearly USD 1 trillion collectively
over the next few years. It is estimated that
by the end of 2010, there were 5.3 billion
mobile cellular subscriptions worldwide,
including 940 million subscriptions to 3G
services. Access to mobile networks is now
available to 90% of the world population and
80% of the population living in rural areas.
With 143 countries now offering 3G services
commercially, people are migrating rapidly
from 2G to 3G platforms, in both developed
and developing countries. In a stage where
In the current day scenario, there are a The latest and most talked 3G has become affordable to the masses a
lot of wireless digital communication about development in the digital number of countries like Sweden, Norway,
technologies that have evolved and are telecommunication space is next Ukraine and USA have started to offer 4G
used by people all over the world. Wireless generation network (“NGN”) which wireless platforms which provide even higher
technologies like GSM, CDMA, time division denotes some key architectural evolutions broadband speeds.
multiple access (“TDMA”), universal mobile in telecommunication core and access
telecommunication systems (“UMTS”), networks that are being deployed worldwide. The emergence and continuing
GPRS and latest 3G cellular wireless network NGN is a network system that transports all commercialization of Voice over Internet
are growing at a fast pace promising high information and services (voice, information Protocol “(VoIP)” is another area that
speed data communications. & media) by encapsulating these into data impacts the telecommunications industry
packets, similar to internet technology. where voice communications are done
There is a huge growth in the mobile phone NGNs are commonly built around the over IP networks such as the internet or
subscriber base in the last five years. The Internet Protocol (“IP”). other packet‐switched networks. Some of
ensuing graphs show the region-wise the future technologies that the industry
divide in the cellular subscription and the The transition to NGN requires a is contemplating are IP multimedia
tracks the growth of broadband internet substantial amount of capital expenditure subsystems (“IPMS”), mobile TV, mobile
subscription per 100 persons in last one which has raised questions about access virtual network operator, IP version 6, and
decade. rights to these networks. The USA is taking the fourth generation cellular network.

16 | Digitalisation
Healthcare
Despite its history of innovation, the records (“EHR”) are likely to be turned into and unfriendly applications. Increasingly,
health-care sector was surprisingly reluctant searchable medical databases, providing a patient care is exploiting the new tools and
to embrace the information technology “smart grid” for medicine that will not only information that systems can provide, while
revolution of 1990’s. However, healthcare improve clinical practice but also help to maintaining a patient-centric approach to
and medicine is now catching up in the revive drugs research. In the digital world, their use.
digitalisation drive. Devices and diagnostics wireless computers pull together all of the
are also going digital, advancing such digitized pieces of patient information - vital Digital recordkeeping is only one
long-heralded ideas as telemedicine and signs, physicians’ notations, lab and test component that is changing the health care
personal medical devices for the home and results, prescription histories, X-rays and landscape. Robots, equipped with a video
smart pills. package them as repositories for real-time, screen and two-way video capability, allow a
enterprise wide electronic data delivery. That physician to control it remotely to conduct
The first technological revolution in modern essential reform will enable many other big patient visits and video conferences, check
biology started when James Watson and technological changes to be introduced. For on patient recovery and make decisions
Francis Crick described the structure of example, clinical trials are an integral part under emergency conditions.
DNA half a century ago. That established of the healthcare system. However, they are
the fields of molecular and cell biology and highly expensive and take a long time. It is Digitalisation is also changing the
the basis of the biotechnology industry. The currently possible to replicate some clinical pharmaceutical industry. Electronic
sequencing of the human genome nearly trial results without the time and expense, prescription drug systems enable
a decade ago set off a second revolution using access to EHR. Scientists have been physicians to write prescriptions directly
which has started to illuminate the origins able to do this by analysing the data of to a pharmacy. Automated machines can
of diseases. A third phase of revolution is several thousand people. dispense medications and supplies at
shaping up with convergence of biology the nursing station or from the hospital
and engineering. Experts believe tools Just as important, it can make that pharmacy directly to the nursing cart. These
such as information technology, advanced information available to the patients too, machines also record and generate bills
materials, imaging, nanotechnology and empowering them to play a bigger part and maintain inventory records and restock
sophisticated modelling and simulation are in managing their own health affairs. medications.
likely be brought to application in biology Digital technologies such as wide area
outdoor wireless (“WiMAX”), VoIP, radio The digital handheld blood monitor such
too.
frequency identification (“RFID”), among as Accu-Check is another invention that
Digitalisation promises to connect other technologies allow information to has helped diabetic patients world over.
doctors not only to everything they need be disseminated quickly and easily at the Sophisticated medical technologies save
to know about their patients but also to critical point of care. The EHR is currently thousands of lives every year, through
other doctors who have treated similar directly available to patients also for the advanced scanning systems and devices
disorders. The convergence of biology purpose of self-care. that keep people’s hearts beating and
and engineering will be led by information blood flowing. In the last century, medical
technologies, which in medicine means the Recent advances in digital technologies are technologies ably did their part to extend
digitalisation of medical records and the enabling providers improve the quality of the life expectancy. However, unlike other
establishment of an intelligent network for patient care. Today’s healthcare IT is much sectors where use of technology is bringing
sharing those records. Electronic health more than traditional isolated computers costs down, the opposite is happening to
healthcare segment. Although the same
digital technology is used for healthcare
as in some other sectors, the price of the
technology is not coming down as expected.
Two basic reasons are attributed to this fact.
First, the lack of price transparency in the
medical technology market as it is not an
open marketplace of prices and services.
Secondly, it is difficult for hospitals and
clinics to know whether there’s a better
deal elsewhere and manufacturers can
keep costs high. Thirdly, and perhaps more
significantly, medical technologies still
tend to rely on an expert class to actually
deploy the technology. Highly trained and
expensive experts are still needed to actually
put the technology to work, making it
impossible to entirely automate a process.
The result is that technology stays expensive
to use, and costs keep going up.

Mazars Thought Leadership Series | 17


“People now
socialize through
the internet and it
takes them away
from personal
socialization that
has been around
forever”

Digital social isolation

Social networking websites provide tools systems, latest interactive and intelligent
by which people can communicate, share gadgets etc. but it is important to consider
information, and create new relationships. social losses alongside the convenience
With the popularity of social networking
websites is on the rise, our social
interaction is effected in multiple ways as
we adapt to our increasingly technological
world. People now socialize through
the internet and it takes away from the
in-person socialization that has been
predominant till now. Social networking
websites effect our social interaction by
changing the way we interact face-to-
face, how we receive information, and
the dynamics of our social groups and
friendships.

Communicating through the internet and


social networking websites is a different
experience than communicating in person.
Chatting online is quick and easy and
permit connecting to an almost unlimited
number of people from all over the globe.
At the same time it changes the traditional
in person conversation that is important to
our social lives and friendships. This can
neither be attributed to have a positive or
negative impact on our social behaviors and
interaction unless and as long as people
know to strike a healthy balance between
internet interaction and face to face
interactions.

Digital media has penetrated into


our culture, invaded our values, and
overwhelmed us with information. The
digitalisation of lifestyle seems complete
at this moment with rapid transportation
using computer controlled public transport

18 | Digitalisation
of this digital living. Recent advances in have become increasingly important. music that has been a characteristic
information and media technologies have The idea that technology is responsible through much of its history. While the
dramatically altered the ways in which for the widespread social isolation of our Walkman triggered a similar isolation, the
we interrelate to the outside world. For time has got stronger and stronger in the shift from analogue cassettes – of a finite
example, instead of playing an actual match last century, walking at the same pace of length – to the endless permutations of the
on a sport field, a virtual match against the technological advance. Besides folk wisdom party shuffle has meant that the digitised
play station is preferred. and literary fascinations, recent empirical soundtrack can be a perpetual companion
studies suggest that communication through life without changing the sides of
Despite or perhaps due to the technologies like TV, cell phones and a tape or inserting a new disc.
advancements in information technology, internet may interfere with face-to-face
quality of life in technology and media- interactions. In today’s digital world, people According to experts, an average, internet
rich societies has suffered at the same can get entertainment and information user spends three hours online every
time. Issues such as the media’s impact while remaining entirely alone. day. More than half of the time is spent
on mental health, the effect of video communicating, 8.7% playing games,
games and digital entertainment on Digital gadgets like iPods immerses the 6.5% surfing and 4.3% shopping. The
child development, the use of media listener in a private world, cut away from web is but the latest in a long list of
in education, and technology addiction the community-building nature of popular technological developments that have
improved the quality of life but restricted
social interactions.

It can be argued the world is more


connected than ever before, but people
spend less time in person with those
they care about. With regards to social
interactions, quantity has replaced quality.
Video games as well as at-home games
have been a part of social life for decades.
Evolution of gaming over time from board
games to video games has led to digital
isolation. 80% of the teenagers go online
and 43% spend over an hour a day on the
internet. A study also found that people
who use social networks like Facebook or
Linkedin are 30% less likely to know their
neighbours and 26% less likely to provide
them companionship.

People’s personalities begin to extend,


grow, and pervert themselves when they
reach the digital world, bringing out
otherwise uncharacteristic attributes in
the users who interact with them, whether
those users are trying to defend a point of
view or refute one. This is not the type of
behavior the social network was planned to
instigate; since these bodies of information
and communication were created to bring
people closer together. It is a loss of social
values, a change in standards and changes
in etiquette that further alienate people into
digital isolation.

Mazars Thought Leadership Series | 19


“Three inventions
namely personal
computer,
cellular wireless
communication
and the internet
have really radically
transformed the
future of digital
technology”

Challenges & future outlook of digitalisation

Once a fiction, now a reality. This has forums across the world that the privacy movies, pyrotechnics etc. are some fields
been the story of digital technology with is being compromised in the digital age within the entertainment business that have
its limitless possibilities to transform the with almost every information being easily changed with the advent of digital tools and
weirdest of imagination of yesteryears into transmitted within a matter of seconds. techniques. With broadband internet, IPTV,
a modern day marvel. The business of With the sudden increase of information networked gaming system, VoD etc. being
digitalisation began with the invention of exchange, authenticity of such information used by of common people, the potential of
the first microprocessor and development is another critical issue being faced by the digital media is virtually limitless.
of computing technology based on world today. Another major challenge in
binary digits in the late 1950’s. There are the digital world relates to possibilities Manufacturing, aerospace and product
conflicting views as to what all can be of networks getting corrupted. Although, designing are some fields where almost
termed as the biggest inventions of the digital technologies are becoming more all processes are carried out using digital
digital era. The following list brings out and more secure, networks, both cellular technology. From ideas which are currently
some of the most effective inventions which wireless communication and the internet, under research and development such as
formed the basis of further inventions and are becoming vulnerable to attacks keeping backup of data from a human brain
modern day digital technologies. from antisocial elements. The ability to in digital media to connecting the internet
accommodate the vast and increasing directly with human neurons, scientists are
y Transistor
demand for information storage space on pushing the digital technology to its limits.
y Microprocessor the internet is cited as another challenge However, self driven cars, automated public
that has to be overcome. transport systems, digital money, time
y Desktop computer
travels, 3D holographic imaging, telepathy,
y Gaming consoles Digitalisation has changed many industries controlling weather etc. which seemed
y Modem and internet and business strategies of organisations, distant dreams are now achievable projects
to cater to digital media and the customer under active research through the use of
y Digital printing technology base that who is becoming more and more digital technologies. It is very intriguing
y Digital camera accustomed to digital lifestyle. One of the to internalise now that one day almost
business segments where digitalisation all activities would be digitally run and
y Digital audio tracking systems
has made a huge impact is the M&E controlled.
y Mobile telephony world. This industry is set to grow at a
more than 6% globally in the coming years The possibilities of digitalisation driving
y Laptop and miniature computers
and most of the growth is expected to transformation of human society to a next
come from interactive digitalisation. With level of comfort and sophistication are
Considering the above, three inventions
opportunities of growth of about 15% in the immense and only time will stand witness
namely personal computer, cellular wireless
BRIC countries, the world’s largest digital to the changes digital technology would
communication and the internet have
media companies are turning their focus to bring to our planet.
really radically transformed the future of
digital technology. However, the explosive these countries. This is just one of the many
growth in digital technology over the last examples where digitalisation is changing
few decades has raised several challenges the face of a USD 1,400 billion industry.
as well. It has been discussed in many Special effects, particularly in animation,

20 | Digitalisation
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Mazars Thought Leadership Series | 21


NOTES

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22 | Digitalisation
Kapil Gandhi
Sonali Madnaik
Apeksha Bharuka

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