Davos: Digital transformation across industries can help save trillions of dollars in cost and consumers who stand to benefit more from it provided there are policy incentives to improve societal outcomes, says a report.
The World Economic Forum Digital Transformation Initiative (DTI) report found that digitalisation can potentially generate for society would remain trapped unless efforts are stepped up to align private sector investment incentives with long term public good.
“More than half of the value that digitalisation offers is in the form of societal benefits. These include net job creation and reduced income inequality, improved health outcomes and fewer accidents, reduced carbon emissions and time and cost savings for consumers,” it said.
Bruce Weinelt, Head of DTI at WEF, said majority of the benefits of digital would accrue to society, but only if collective action is taken to assess the potential, using consistent criteria to evaluate the outcomes of specific policy actions.”Digital transformation across industries could save millions of lives and trillions of dollars in cost,” the report said, adding that digitalisation could benefit consumers more than businesses.
The report has emphasised the need for rapid re-skilling and greater alignment of education with the new demands of fast-changing markets. While new technologies have the potential to increase economic growth, reduce inequality and promote inclusivity, the report said they could be jeopardised by retreat of globalisation, the rise of political populism and social instability. There is also need for responsive and responsible leadership to proactively counter forces that would constrain innovation, trade and growth, it added, reports PTI.
The DTI project, in collaboration with Accenture, has completed value-at-stake analyses in 10 industries to help the private sector identify growth opportunities.