IT and the internet of things are big business, but their impact on the country’s economy could be as big as anything else.
In a new book, The Future of the IT Economy: How the Future Will Look, It’s predicted that the global internet of Things will affect more than just the economy.
It could be a catalyst for new economic opportunities for Ireland.
Read more:Online companies, such as Amazon, are already using the internet to track customer needs and to help them sell.
It’s also used to deliver goods and services from one location to another, for example to deliver medical care or to buy parts.
But what happens if a device connected to the internet becomes the core of a business?
The potential impact on Ireland’s businesses is vast.
Online retail, for instance, is estimated to create up to 30,000 jobs in the country, and could also be an opportunity for the country to improve its trade with Europe.
The book, written by senior economist Paul Keating and business professor Mary McAleese, predicts that Ireland will see its share of the global market for internet of thing-connected devices grow from 15 per cent in 2020 to 35 per cent by 2026.
“It is the most transformative innovation in our modern economy and it is the single biggest economic driver,” said Mr Keating.
“That will be the biggest threat to Irish businesses in the next few decades, and we need to make sure that the economic benefits are maximised.”
What could happen in 2020?
The book predicts that there will be about $1 billion of value added for Ireland by 2020.
That’s an increase of $600 million on current sales.
But the impact could be even greater.
The economic impact of this technological revolution could be far greater.
According to the book, the internet is “a force multiplier”, and it’s now predicted that this technology will lead to a surge in online retail sales in Ireland, from 10 per cent of total sales to 15 per, and 20 per cent to 35.
The book is being published by the National University of Ireland, Cork.
“The internet of the future will have a profound impact on our economies,” said Professor McAlees.
“For example, if we look at how much money is being spent online today, it’s about 30 to 40 per cent.
That’s not a lot of money for us.”
We’re not looking at $1.5 billion.
The average consumer spends a dollar online a day.
“But the internet will be so disruptive, said Mr Quigley, that the Irish economy could collapse as a result of it.”
When it comes to the future of our economy, the biggest question is what happens with technology in 2026,” he said.”
Is it going to be a good or bad thing for the economy?
If it is a good thing, it will lead us to an enormous shift in our economy and our business.
“It will also mean that the number and quality of jobs that we will create in the future is going to increase, and this will have an enormous impact on a number of different sectors of the economy.””
We are going to have an increase in the number of small business opportunities,” he writes.
“It will also mean that the number and quality of jobs that we will create in the future is going to increase, and this will have an enormous impact on a number of different sectors of the economy.”
He predicts that in 2028 the number-one reason for business failures is “the lack of a salesperson, who can make a sale”.
This will be a problem in Ireland.
A lack of salespeople means there is no incentive for businesses to spend money.
The lack of business opportunity will result in companies failing.
And the lack of opportunity for business is what will lead them to take the wrong approach to their business.
“Businesses that have not done enough to attract people to the market will be at a disadvantage in the 21st century,” Mr Quiggs said.
What about the EU?
The book also predicts that the European Union will become a major player in the digital economy.
In 2026, for the first time, there will almost certainly be an increase from 15 to 35 companies based in the European region.
“In 2020, the European economy is going be a force multiplier,” said Dr McAlee.
“And that’s because the European Commission is now a major actor in the internet.”
It will be “very interesting” to see how that plays out, she added.
The Future of Information in the Digital Economy, by Paul Keasing and Mary McEese, is available to read at the University of Cork’s business school and is published by Cambridge University Press.
It can be purchased at the Irish bookshop.