Declining Costs of Distance will Change Future Economies
For hundreds of years, the cost of distance has determined where businesses produce and sell. Essentially, distance and location are two critical business circumstances that dictate a lot of the things businesses can, and can’t do.
However, new technologies breaking ground and deemed to be the mainstay of the next advanced economies, driven by technologically advanced countries are set to shake up the way we live and work. This change is observed to be happening faster and broader than many can imagine.
According to Bain.com research, over the next two decades, the cost of distance will decline sharply.
As a result of the fall in costs, the way we do business and how human capital of the future works will be significantly altered.
If the past has taught us anything, this shift will create plenty of opportunities, as well as risks for businesses and investors. Emerging technologies, namely robotics, 3-D printing, delivery drones, and autonomous vehicles will significantly reduce the cost of moving people, goods and information.
Consequently, the wrenching changes that these technologies can exert will further accelerate and shape new economic realities.
At The Codian, we think, it is time for businesses to step it up by coming up with solutions for their businesses to circumvent the constraint of distance and location. Again, we would like to advocate, businesses need to work with technology to combine and converge the things they do well and make them better.
Certainly, long-held models of work and lifestyle, are bound to be changed dramatically. Like every period of change, new-end markets, innovative businesses and career opportunities are pointing toward a future economy that is less dependent on where it is located, but focuses more on creating products and services that can deliver compelling new experiences.
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