Philosophy of Digital Man and Digital Society - 2024
Global Network Platforms as a Factor in the Development of the Neo-Economy and the Service Factory
The Emergence and Development of Concepts in Digital Economy and Digital Management Amidst Global Transformation
New processes of societal digitalization unfold amid breakthroughs in technology that necessitate the formulation of a concept regarding global network platforms as catalysts for the evolution of the neo-economy, the establishment of an ecologically balanced and socially oriented economy aimed at enhancing the well-being of the population and improving environmental indicators, with a future vision of the emergence and development of a digital society.
Global network platforms, acting as driving forces in the realm of digital economy and management, presently represent the most dynamic and innovative sector of global development, penetrating every corner of the world. This momentum is fueled by a new Digital Generation that will collaborate with robots and will no longer be astonished by the outcomes of big data analysis—an era where cryptocurrencies, blockchain technologies, autonomous vehicles, and drones evoke little surprise. The rapidly evolving information technology landscape attests to the fact that today’s digital world is deepening at an astonishing pace, affecting every domain—science, business, entrepreneurship, insurance, medicine, and education.
Our endeavor is to analyze global network platforms as agents of neo-economic development within the context of the new industrial revolution, Industry 4.0, and the formation of an ecologically balanced and socially oriented economy amid these technological breakthroughs. One of the paramount challenges confronting developed nations is persistent unemployment, escalating wealth inequality, rapid climate changes, and the asymmetry of information.
Currently, global network platforms remain a relatively unexplored subject in the socio-philosophical and economic literature. The aim of this research is to establish a concept of digital technologies as a foundation for breakthroughs in the information technology sector and to identify pathways for enhancing these technologies and integrating them across all facets of human existence.
The technological revolution, evolving at an unprecedented pace, has birthed a new digital world marked by automation, robotics, and advancements in artificial intelligence, alongside the emergence of novel disruptive technologies commonly referred to as nanotechnologies, biotechnologies, and socio-humanitarian technologies. The conditions of informatization and digitalization are directed towards the establishment and growth of a digital society, constructed upon digital technologies that cultivate a digital culture. This digital component collectively forms "digital intelligence," which is shaped by the intellectual fabric of society and represents a priority in the development of the technological sector.
We strive to discern the conditions for the formulation of the neo-economy concept amid new technological breakthroughs, the foundation of which rests on the establishment of a digital society dominated by information asymmetry. Our aim is to unveil the new mission of the digital economy and digital management, which are poised to catalyze a shift in the dominant paradigms of social philosophy, where the critical role of scientific, technological, and intellectual achievements reshapes our reality.
In the contemporary landscape of the information society, new forms of digital economy are emerging (neo-economy, information economy, internet economy, innovation economy, knowledge-based economy), necessitating an appropriate digital format and the preparation of a managerial elite as a creative class rooted in information, knowledge, intellect, and experience. The digital society comprises a vast array of algorithms governed by information-communication and computer technologies that penetrate digital management, forming an information-oriented economy grounded in intellectual and creative components represented by human (intellectual) resources.
One of the fundamental principles of the modern neo-economy is that new technological changes are prerequisites for sustained economic growth. This notion earned Robert Merton Solow the Nobel Prize in 1987 "for fundamental research in the field of economic growth." Direct management through digital technologies enhances a good manager’s capabilities. The digital economy encompasses the digitization of an increasing volume of information, goods, and services, resulting in significant improvements in telecommunications and an augmented role of networks and standards.
Digital goods incur markedly lower marginal production costs than physical goods; bits are cheaper than atoms, to say nothing of human labor. A single producer with a website can theoretically meet the needs of millions of customers. Through technology, a digital world emerges, capable of producing more with less consumption of resources such as raw materials, capital, and labor. All manifestations of technical or technological progress hinge upon digital technologies, which serve as a powerful engine of growth and prosperity (notably, the emergence of concepts like computer wealth and computer progress).
Perry argues that, thanks to innovations and technologies, all Americans (especially those from low- and middle-income groups) are now wealthier than in previous times. We seek to demonstrate that the average worker today possesses greater wealth than his counterpart in prior generations, precisely due to the affluence brought about by innovations and technologies. Many Americans still believe they live in a land of opportunity that offers the greatest chances for economic advancement.
However, a high level of inequality may motivate individuals to work harder, thereby boosting overall economic growth. The prosperity of a nation hinges on innovation, and it is vital not to squander this innovative potential, which will ultimately yield wealth. Today, we inhabit a world where machines replace humans, where robotics and artificial intelligence evolve, and where the advent of robots threatens future employment opportunities. Automation poses a particular threat to workers with low educational attainment and qualifications.
Analysis indicates that we are currently experiencing a proliferation of big data, owned by organizations, alongside the emergence of numerous new professions related to robotics. We must now adapt to the potential ramifications of advancing technologies, facing the prospect of an "ideal storm" instigated by digital technologies flooding the world (blockchain, cryptocurrencies, fintech, insurtech). While the future remains uncertain, we must view the world ahead with fresh perspectives, as it is a realm of innovators, disruptive technological ideas, the "arrival of robots," and artificial intelligence, alongside nanotechnologies and biotechnologies that compete with the human intellect and demand new labor motivation mechanisms.
The history of the computer age began the moment computers merged with telephones, giving rise to an intelligent, artificial hybrid. Almost forty years have elapsed since that pivotal moment, during which the technological convergence of communication and computerization has intensified and expanded broadly. The Internet system and mobile technologies have taken center stage in the contemporary technological landscape. The neo-economy, underpinned by digital technologies and shaped by both its rises and falls, has evolved through sweeping digital trends that have forged global historical trajectories, which will likely maintain their momentum in the near future. "The brilliance of high-tech innovations flows through slow currents. The roots of the digital world are expressed through physical needs and the natural transformation of bits, information, and networks," notes Kevin Kelly in his work "Inevitable: Understanding the 12 Technological Forces That Will Shape Our Future."
Emerging from digital technologies are trends that will shape the forthcoming decades in the digital world and culture. Certain traditional sectors are poised to vanish, old business models will cease to function, many professions will disappear, and the nature of digital technologies will blur international borders. Once we comprehend these changes, we will be better equipped to work in harmony with their nature, rather than against it. Virtual reality becomes tangible, and we cannot halt the advancement of artificial intelligence and robotics; the creation of new companies by these technologies will become a commonplace reality. We must manage these digital processes and technologies to prevent not only existing disruptions but also potential hypothetical upheavals and destructive tendencies in their development.
We must cultivate and master these inventions for the benefit of humanity. This is both legally and technologically feasible through our practical experience and activity, as these technologies have already permeated our lives. Change is inevitable, as these technologies serve as catalysts for transformation. “Technologies make our lives comfortable. Simple to use, convenient, and rapid mobile applications and services allow us to access necessary services in a short time without leaving the couch, from anywhere in the world with internet access. I believe that in the near future we will witness the development of remote identification, biometric technologies, transactional products, and the continued migration of many aspects of life and services online.”
In the future, technological life will consist of an ongoing array of innovations, as transitions accelerate and typical parameters fade away; one menu will seamlessly transform into another, and so forth. Digital technologies demand constant updates, with an accelerating cycle of obsolescence (the average lifespan of a mobile app or phone is roughly 30 days), leaving little time to attain mastery and professionalism in the tools we currently use. Technological innovations in digital technologies compel us to continually integrate new inventions, which eventually disappear, as the emergence of the next new invention also fades or transforms into something else, compelling us to chase after the ever-new.
Technologies generate endless dissatisfaction, driving us toward new inventions; this discontent stimulates digital ingenuity and progress. “Contemporary problems are the results of yesterday’s technological successes; the technological solutions to today’s issues breed tomorrow’s challenges. This circular flow of problem-solving, with its permanent resolutions and the relentless pursuit of new inventions and problems, leads to their accumulation.”
Digital technologies, as the foundation for breakthroughs in the technological domain, have led to the creation of artificial intelligence, which underpins the development and enhancement of digital technologies. Here are a few examples of fields where the use of artificial intelligence is increasing and becoming potentially productive: 1) intelligent music; 2) intelligent marketing; 3) intelligent construction (building living forms); 4) intelligent ethics; 5) intelligent toys; 6) intelligent sports, and so forth.
Artificial intelligence has become an integral part of our daily lives, now capable of performing various tasks—playing chess, driving cars, treating patients, even “working in parliament.” Robots come in various forms, configurations, sizes, and functions, entering workshops, factories, and replacing half of the workforce.
Robotization leads to automation, which creates hundreds of millions of jobs in entirely new sectors, thus enhancing technical and technological progress. “Baxter” is one of the first examples of a new class of industrial robots designed to assist humans. It can look around and alter the position of its eyes to show where it is currently gazing. Although it is not as quick or precise as other industrial robots, it is smarter. To train this robot, one need only hold its hands and repeat the necessary movements in the correct sequence, following the principle of “do as I do.” Baxter familiarizes itself with the procedure and then replicates it. Baxter is open for use. The main costs associated with an average monthly robot are not the expense of the “hardware” but the operational costs. The price of an industrial robot is around $100,000, with programming, training, and maintenance potentially costing four times that amount.
Robots can be relied upon in both physical and intellectual realms, but they have already mastered certain cognitive processes better than humans. Thanks to computerized intelligence, robots can perform tasks we had not anticipated. A true revolution will begin when humans have personal robots, like Baxter, at their disposal.
The digital revolution thrives on the free flow of copies. The products subject to copying include software, music, films, and games, which represent a global communication system. Digital services are improving significantly faster due to operating systems and constitute part of the technological breakthrough of the digital world. The internet is a billion interconnected pages, built upon the preservation of information and active knowledge, with the basic units today consisting of information streams from Twitter and Facebook, within the context of which we read blogs and “bathe in the flow of information.” Today, we are transitioning to a mode of temporary response. The fundamental units of the third digital world are streams, tags, and webs, wherein digital information can become accessible in accordance with references.
In the context of the digital age, new tools accelerate the flow of bits and copies.
If the first revolution involves the constant copying of products such that they become consumer goods, the second revolution involves breaking down products into components, transforming them into a flow of services transmitted through a shared web. This evolution becomes a platform for enrichment and innovation. The third revolution became possible due to the first two, as powerful service streams and ready components, available at a low cost, enable the creation of new products and entirely new product categories. A stable trend toward dematerialization and decentralization signifies that streams become inevitable.
Over time, in the information society, mass printings of books have changed the way people think; printing presses began to produce books en masse, altering thought processes as the cultural power of books was disseminated through reproduction machines. People began to ignore the classical logic of books due to the reverence for inexpensive copies. Books are transitioning to affordable digital formats, appearing on any screen at any time. The book has transformed from an artifact into a flow, streaming across screens and becoming a process of being a book. Wikipedia stands as the first book— a network, a web of connections forged by collective intelligence.
If books aided the development of worldview thinking, screens stimulate utilitarian thought, allowing for swift reading and real-time contemplation. Ownership has lost its previous value, replaced by access to information. Digital technologies have accelerated all processes and begun simulating a shift from products to services. Software becomes the first product to transform into a service.
Not long ago, another form of work organization emerged: the platform. A platform is a foundation created by a firm that enables other companies to build their services and products on it. Later, a new generation of platforms emerged, exhibiting numerous traits characteristic of markets, which were, in essence, partially markets and partially platforms. One such example is iTunes for iPhones. The company Apple owns such a platform, which has also become a marketplace for mobile applications. This new generation of platforms further expanded market power. The platform ecosystem transforms into a multi-faceted marketplace, with Facebook being a prominent example. Ecosystems are governed by co-evolution—a biological interdependence wherein competition intertwines with cooperation.
Dematerialization, decentralization, and mass communication contribute to the emergence of numerous platforms akin to "service factories." The films, books, and games accessible to us reside in the cloud, a vast colony of billions of interconnected computers operating as a singular entity, functioning as a grand computer. These clouds, though invisible, govern our digital existence. The primary rationale for hosting data in the cloud lies in the profound exchange of information. There exists no singular architecture for this realm; hence, all its characteristics are in constant evolution. Today, the entirety of business and much of society depends on computers, and cloud computing facilitates the foundation for a technological revolution.
The opportunity to utilize superior infrastructure through access to the cloud is the primary reason behind the proliferation of new digital companies in Silicon Valley over the past decade. This trend towards dematerialization, decentralization, the use of platforms, and cloud technology will persist over the next thirty years.
As a result of technological breakthroughs linked to the development of the Internet, we have witnessed the commercialization of the Internet, the proliferation of open-source software, the revival of the World Wide Web, and the application of services. Technological innovations infiltrate our lives as catalysts for service development in response to demands. Networks, platforms, and artificial intelligence are transforming business, education, governance, financial markets, and the economy. Global digital technologies, governed by algorithms, reshape our lives and society, compelling individuals to think creatively.
The World Wide Web evolves into a distinct realm, and with astute reflection and data processing, vast opportunities and prospects for further development unfold. Under the auspices of Apple, a generational shift occurred: from personal computers to smartphones, and from web to mobile technologies, where the iPhone represents a platform for the inaugural launch of cutting-edge applications. Although Apple has gradually slowed its pace, the company remains a key player in the mobile phone market, with its original design solutions continuing to compel us to "think differently" about the possibilities of a new technological future. Network platforms serve as powerful instruments for shaping the economy of the next generation, wherein technologies create new forms of employment founded upon creativity, artistry, and innovation.
The digital component collectively forms "digital intelligence," which arises from the intellectual stratum of society that prioritizes the development of the technological sector. We endeavor to identify the conditions for forming the concept of a neo-economy and service factories amid new technological breakthroughs, centered on the establishment of a digital society characterized by information asymmetry. Our aim is to unveil a new mission for the digital economy and digital management, which will prompt a shift in the dominance of social philosophy, emphasizing the substantial role of scientific and technological advancements that transform our reality.
In the contemporary landscape of the information society, new forms of the digital economy (neo-economy, information economy, Internet economy, innovation economy, knowledge society economy) are emerging, necessitating appropriate digital management and the preparation of a managerial elite as a creative class grounded in information, knowledge, intellect, and experience. The digital society comprises a vast array of algorithms managed by information and communication technologies that permeate digital management, forming an information-oriented economy predicated on the intellectual-creative component represented by human (intellectual) resources. One foundational principle of contemporary neo-economy posits that new technological changes are prerequisites for sustained economic growth.
It is this idea for which Robert Merton Solow was awarded the Nobel Prize in 1987 "for fundamental research in the theory of economic growth." Direct management through digital technologies enhances the capabilities of good managers. The digital economy encompasses the digitization of an increasing volume of information, goods, and services, resulting in immense advancements in telecommunications and an amplified role for networks and standards. Despite a significant body of economic theory, no country has ever risen from poverty without an innovative system. Ukraine must focus on building a robust national innovation system.
In a digitized society and during the Fourth Industrial Revolution—interconnected processes—systemic and profound changes are occurring that affect all spheres of life, serving as driving forces that engender new megatrends in society, business, the economy, and the individual dimensions of human existence, prompted by a deep transformation characterized by points of radical technological disruption and their societal impact. The Fourth Industrial Revolution offers us the values of a more enduring, healthier, and more active life. Productivity stands as the paramount determinant of long-term growth and an elevated standard of living. The Fourth Industrial Revolution holds the potential to enhance economic growth and mitigate specific global challenges. However, despite the potential positive impacts of information technologies on economic growth, it is equally essential to consider their possible negative ramifications for the labor market.
The spread of technological unemployment outpaces our efforts to find new applications to address this issue, as the revolution in new technologies will evoke deeper social upheavals than previous industrial revolutions. New information and communication technologies are fundamentally altering, and already have altered, the nature of work across all sectors and professions, demanding swift and agile responses to these radical technological changes. As Klaus Schwab notes, "the impact of the Fourth Industrial Revolution on business is perceived as an inevitable transition from a simple shift to digital technologies (a hallmark of the Third Industrial Revolution) to a much more complex form of innovative solutions, founded on the synthesis of numerous technologies in novel ways."
New digital technologies have birthed revolutionary means of integrating products and services, eroding traditional boundaries between industries. The interconnections between the physical, digital, and biological realms lie at the heart of the Fourth Industrial Revolution, presenting the world with opportunities for immense achievements in resource utilization and productivity. Digital technologies and the infrastructure of global interaction are transforming the conventional approach to labor and compensation, giving rise to new types of employment characterized by flexibility and temporality (the so-called "on-demand economy").
Digital development knows no borders, thereby inevitably raising questions about the influence of technologies on geography—and vice versa. Automation affects the markets of developing nations, which must capitalize on the opportunities presented by the technological revolution. Analysis indicates that no country can thrive without constant nurturing of the innovative ecosystems within its cities. Therefore, within the next 10 to 20 years, the infrastructure of smart cities will be governed by digital technologies—artificial intelligence, self-driving cars, augmented reality, genetically modified food, new and more efficient energy sources, smart materials, and an innumerable array of gadgets and devices interconnected and capable of exchanging information.
Moreover, many digital technologies are interlinked and propel each other forward. Virtual reality (VR) employs computers to create simulated environments—both real and imaginary—into which we can add our physical presence and personal sensations. However intricate and multifaceted these virtual spaces may be today, in the near future, hardware and software will advance, and platforms like High Fidelity will provide us with a virtual world of the next generation—potentially as vast and complex as the tangible world we inhabit.
The boundary between human and machine, as well as between online and offline realms, becomes increasingly blurred. Augmented reality (AR) offers a direct view of the physical environment through a computer screen or mobile device while overlaying additional digital information—images, sound, video, or GPS data—in real time. Notably, manufacturers of prestigious automobiles, such as Mercedes-Benz and Range Rover, project data about vehicle speed and direction directly onto the windshield. In contrast to virtual reality, which can create entirely fictitious worlds, augmented reality enhances our perception of reality by placing useful information atop the images of the things we see around us.
Augmented reality can be utilized on any device equipped with built-in sensors and cameras—whether a mobile phone, tablet, glasses, or even contact lenses. It is anticipated that in the coming years, our gadgets will be loaded with and host 2.5 billion applications for AR. The advantages of utilizing AR are indeed impressive, and the most powerful companies are already showcasing these capabilities. The development of digital technologies is closely intertwined with robotics. Robots are increasingly equipped with additional features such as high-quality video cameras, sensory detectors, and laser rangefinders, all integrated and controlled by computers. The monumental advancements in robotics are largely driven by the "smartphone revolution," as robots rely heavily on computer chips, batteries, and sensors similar to those found in powerful mobile phones.
Thus, we find ourselves in an era of convergence, a time when bits from the digital realm merge with the atoms of the physical world. The digital values of the Fourth Industrial Revolution's digital society must evolve within the context of authentic sustainable development science—perhaps the most crucial task of the 21st century, for without it, all else will lack significance. Information technologies and digital transformations herald "revolutionary changes" or even "destruction," yet the emergence of the digital world is merely one manifestation of a broader trend toward interdependence, wherein a multitude of diverse factors interact and influence one another: trade, travel, censorship, privacy, and much more.
Digital technologies have the potential to reshape false stereotypes and prejudices while also deepening inequality. New markers of identity are emerging, based not on class, ethnicity, and political opposition but rather on the division between urban/rural or educated/uneducated populations. If we can fully harness our technologies and clearly define the potential consequences of digital technologies, adapting to these repercussions, the outcome of their implementation could indeed be far more optimistic. Navigating the correct path through these complex and intricate factors and constructing a digital society will ensure stability and prosperity for all humanity, which may prove to be one of the most pressing challenges of our era.