By Rasha Khalil

Over the past two years, the breakthrough in sci-tech innovation has profoundly reshaped the way we live, communicate and work. Disruptive technology affects the normal operation of a market or an industry. The world has witnessed many disruptive technological revolutions changing the economy and reshaping lives, such as the birth of steam engines and the electrical grid. These technologies have caused waves of complementary innovations, leading to an increase in productivity.

Currently the world is entering the era of digital revolution which would have never happened if it wasn't for the Internet. The Internet itself was a disruptive innovation that has forced businesses to keep innovating to stay relevant in the market and during the current global events.

As one of the subsequent innovations of the Internet, the mobile Internet gives people tools to become potential innovators or entrepreneurs. For many people, work is where the Wi-Fi is. People who define themselves as digital nomads move around the world frequently, integrating and sampling other cultures. As the number of digital nomads increases, the percentage of value-adding jobs in their country of residence will increase. At the same time, they will support the economy in the host country through paying taxes and investing in the domestic market.

With the availability of the Internet, the Human Cloud has surged as the largest growing segment of the gig economy. Some of the jobs that white-collar workers in advanced rich countries used to do are now broken down into individual tasks advertised online and carried out by remote workers scattered all over the world.

This 50 billion USD industry is disruptive as it affects the workforce in developed and developing countries alike. This is because the workers in developed countries perceive the gig economy as having less opportunity and being more of a threat. While for the workers in developing countries, the gig economy helps in creating new opportunities and offers a way out of poverty.

Another similar example is happening in the self-driving vehicle industry. A decade ago, the notion of having self-driving vehicles was considered an impossible industrial task. But now, it is quite achievable, especially with the availability of the needed resources and the dramatic fall in production costs.

This emerging technology trend will considerably alter consumer behavior, which will severely disrupt the car sales industry. Personal consumers will shift from needing to purchase a car to requesting a service to satisfy the same economic need. And keep in mind that vehicles will be cheaper and more convenient in the long run, as they will include a service rather than just owning a car.

In addition, this can cause side effects in the oil industry and its adjacent industries due to the lower demand, and reflection on the wide range of jobs they provide. Car and manufacturing companies will be forced to adapt by switching their production to either hybrids or only electric cars. However, it is likely that some currently dominating car manufacturers will fail to adapt to such complex shifts and will be forced out of the market. At the same time, new car manufacturers might emerge throughout the transition.

The technology will cause a dramatic shift in labor and the workforce. Estimates of job losses could be in the millions, when adding up all the workers in the oil industry, car manufacturing, sales sector, parking service and drivers. However, this unemployment will be a structural one because the change will also lead to increased economic growth as new opportunities will arise with new emerging industries, and huge numbers of new jobs will be made available.

This upsurge in innovation will bring lasting change, both good and bad. And it is up to us to hunt for the right opportunities and shape the outcomes. Therefore, it is extremely significant to understand and detect the barriers to innovation in organizations, and to create the right business environment to improve the innovation success rate. Moreover, prospective disruptors should consider certain factors, including aiming at underserved markets and leveraging technology to meet the demands of underserved customer segments at lower cost.

Policymakers and societies need to prepare for future technology. They will need a clear understanding of how technology might shape the global economy and society over the coming decade to do this well. They will need to decide how to invest in new forms of education and infrastructure and foster innovation, because some of the most innovative ideas require the right opportunity and circumstances to demonstrate their value.

Professor Rasha Khalil has two doctoral degrees and professorships in management and law. Her research focuses on environmental law, natural and human resources management, communication, etc.