Pervasive Technologies On B2c Digital Platforms

Abstract

Digitalization has reorganized markets and created new intermediators – digital platforms. However, these processes spark controversy. On the one hand, digital platform innovation leads to increase in economic efficiency. Breakthrough technologies have been proposed new format of communication with consumer, reshaped production and delivery processes. On the other hand, it might pose threat to consumers` autonomy. In this article, we aim to detect some technologies, being crucial for digitalization on consumer market. After we undertake a review of the governmental programs and investigations into global technological trends, we combine it with the qualitative analysis of Web of Science data and Google Trends Ratings. As a result, we draw a matrix of pervasive technologies corresponding with selected consumer markets. They include such solutions as Big Data & Business Analytics, Cloud computing, AI, VR/AR, Robotics, IoT, Wireless, Blockchain. We analyze possible potential ways of applying the identified promising technological solutions into consumer practices.

Keywords: Digital platformpervasive technologiesconsumer market

Introduction

Digitalization is a generally accepted trend in modern world. There is a considerable amount of literature on information economics, digital technologies, their benefits and costs, published by World Bank, OECD (OECD, 2017; World Bank, 2016).

More recent evidence (Bughin, Manyika, & Catlin, 2019) highlights that there is a gap in digital intensity between global digital platforms and traditional enterprises. Being a relatively new phenomenon, digital platforms have dramatically changed existing business models and inspired hyperscaled businesses with level of performance far higher than in other economic sectors.

Several studies provide the conceptual framework for the study of digital platforms. Gawer (2014) proposes multi-dimensional approach combined economic and technological view on digital platforms.

De Reuver, Sørensen, and Basole (2018) reveal the complexity of digital platforms due to their distributed nature and close connection with institutions, market, and technologies.

An increasing number of researchers clearly state that the boundaries between the industries are often blurred in the digital era (Yablonsky, 2018). New technologies has transformed industrial structures, economic value creation, and reshaped the competition strategies. Kenney, Rouvinen, Seppälä, and Zysman (2019) argues that information economics has changed the expenses structure. High fixed costs of building digital platforms combined with the low marginal costs of adding new participants give firms opportunities to set price below the production cost to attract clients. Companies try to make platform more valuable for participants, thereby increasing switching costs. It enables them to benefit from market power and, finally, raise price.

The article is organized as follows: in previous section, we describe data used for selection of the relevant technologies; then we discuss the influence of selected technologies on consumer market;

Problem Statement

Modern technologies allow firms to collect and use information about almost all aspects of human behavior and give them opportunities to manipulate consumers` choice. Digital platforms tend to know about consumers` needs and wants more than people themselves. In our investigation, we try to identify some breakthrough technologies, influenced the development of consumer market.

Research Questions

In the article, we concentrate on the following questions:

(1) What kind of breakthrough technologies are the most relevant to consumer market?

(2) Are they equally important for all parts of consumer market?

Purpose of the Study

The purpose of this article is aim to detect modern technologies, being crucial for digitalization on consumer market.

Research Methods

We started from MIT annual reports on breakthrough technologies. Based on these data, we have grouped given inventions into broad categories.

In the next step, we addressed to the Web of Science Core Collection to confirm the growing interest in these categories (table 01 ). It is remarkable that nearly 40% of articles in these areas were published within the last 5 years.

To consolidate the breakthrough technologies we used some investigations into foresight combined with governmental programs related to Industry 4.0 (HSE, 2017; Kostin, 2018).

It is not exaggeration to say that the breakthrough technologies spread over all areas of human activity. Thus, the experts use a term `pervasive technologies to underline their significant impact on the economy as well as on the way humans manage their lives.

According to an ambitious program for digitalization of Russian economy, pervasive technologies include, amongst others, big data, neuro-technologies, artificial intelligence (AI), blockchain hardware and software, quantum computing technology, robotics and sensor-based technologies, wireless communications, virtual and augmented reality (VR/AR) (HSE, 2017).

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We also used Google Trends to trace the popularity of the selected technologies. Google Trends has recently became acclaimed to identify trends and preferences of internet users. It shows how often a given term is entered Google search engine to the total search volume. Unfortunately, its ability to compare search terms is limited by five, therefore, we focused on the technologies grown rapidly in the last few years and dominated in various markets (Figure 01 ).

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The most intriguing is that Google Trends enables to detect an incipient interest in potentially breakthrough technologies. Whereas AI and VR were in the public eye since 2004, completely new trends arose in the last decade. In 2009-2012, cloud computing was the absolute leader among the search terms. In 2013, it lost, however, the 1^st place and ceded the leadership to big data. AR has left behind recently boomed VR and remains current leader in the list of popular queries.

Finally, we compare the results from Google Trends with the publication activities in selected fields. According to Web of Science Core Collection, the number of articles generally corresponds with the level of queries popularity (Figure 01 , 02 ). Although, there is a gap between the peak of interest in certain topic and the highest number of articles, we can conclude that selected technologies are relevant to our investigation.

Findings

In our investigation, we concentrate on pervasive technologies for consumer markets. Being flexible, service industry undergo digital transformation at first. Therefore, we have chosen a range of services that are crucial for consumers, such as retail, finance, education, health care, and transport (see table 02 ). We also add construction and agriculture, because these industries meet the basic needs of the population.

Further we consider these technologies in details.

Conclusion

In conclusion, we should note that despite the potential for life standard growth, modern technologies can threaten the consumers` autonomy and their right to privacy. Nowadays, people resist digitalization in a mild form: reject from social networks or geo referencing. We expect that digital resistance will increase as far as more and more areas will be captured by digital transformation. Consequently, there is a need in procedures and mechanisms should be established to adapt innovation and make it a part of daily routine.

Our investigations into this area are still ongoing and we suggest two questions for further research: (1) What are the sources of digital resistance? (2) What are the tools to overcome the fears and neglect of modern technologies?

Acknowledgments

The reported study was funded by RFBR according to the research project № 19-010-00352: Scenarios of overcoming the consumer digitalization resistance on digital platforms market.

References

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