To paraphrase Gramsci, when faced with the challenges of the digital transformation, realism makes us pessimistic but we are optimists because of will. This does not mean that the digital transformation should be viewed through rose tinted glasses. Yes, as it did in the past, today innovation is undermining certain businesses and destroying jobs. But refusing to engage in this inexorable transformation would be entirely counterproductive. Can anyone imagine a sound and deliberate choice that would have led any company or any country to deprive itself of the progress proffered by the steam engine or by electricity, back in the day? These disruptive innovations are not confined to the emergence of a new sector of activity, as with – to give a rather unfortunate example in France – the Plan Calcul that sought to bolster France’s computer industry or – to give a more successful example – when we latched onto digital technologies to bring the country up to speed on the telephone front. Digital innovation, which is still at its very beginning, develops in successive waves, spreading step by step and transforming every sector, commercial and non, from finance, healthcare, transportation and retail, up to manufacturing.
But let’s move away from these somewhat pat positions. The fact of accepting the radical and inexorable nature of the digital transformation does not put an end to political debates on the matter. Investing in all things digital is not solely the dominion of geeks who are oblivious to the pressing issues of our time. We can be persuaded of the dire need for an efficient energy transformation built on the steady development of soft and non-carbon energy paths, and to see in digital technology an efficient way to balance the different sources of production with consumption in real time, or to design more efficient and less polluting transportation systems. We can dedicate ourselves to creating high quality medical systems for everyone, including in rural areas, and actively promote eHealth innovations. We can support the initiatives of start-ups and be sensitive to the despair felt by young people who leave school with no training, no skills, and the hopelessness felt by workers like those at the Whirlpool plant.
It is in everybody’s best interest that France and Europe be fertile ground for digital innovation. But we need to prepare the soil. As the head of one of Europe’s leading digital market consultancies, I see at least four major challenges before us.
The first challenge is cybersecurity. We witnessed a deeply troubling rise in the number and diversity of cyberattacks in 2016. Europe provides the right scale for strengthening efficient cooperation in the fight against cyber-terrorism, establishing trust rules for the circulation of data within the EU and with our trading partners, to protect our culture by protection our personal data.
The second challenge lies in the accelerated pace of development of artificial intelligence with the advent of deep learning. Europe has very high-level researchers in the field. But this new stage in AI is rooted in the systems’ ability to be continually learning by continually processing massive quantities of data. There is no denying that we are late to the game compared to those massive platforms which are amassing phenomenal amounts of data each and every day.
The third challenge is precisely France and Europe’s ability to produce platforms that are capable of rivalling the internet’s American leaders. Here, we believe that we have to stop wanting to invent specific regulations. Over the past several months, not only in the area of taxation but also with antitrust and data protection, we have been given proof that European countries and the Commission have the means to enforce general law relatively effectively. Moreover, as it moves into the arena of B2B[1], the digital transition is opening up new opportunities. It is up to us here in Europe who are working on developing the Internet of Things (IoT) and Industry 4.0, to build the platforms for the industry of the future.
Our fourth challenge is telecommunications. They are a key ingredient in the digital transformation. On the whole, Europe has managed to create competitive markets that ensure the greatest possible benefit to consumers. But massive investments are required to deploy optical fibre and, further down the road, 5G networks across our nations. Operators can help a European TV industry and, more generally, its digital services to emerge, but they cannot escape the imperatives of fixed and mobile ultrafast access. We are concerned about the relative fragmentation of the telecommunications landscape in Europe, as compared to the situation in China or the United States. Not least when we consider that the new Trump administration will likely allow increased consolidation in the sector.
Lastly, we agree with the idea that the cornerstone of greater trust in the digital transformation lies in making investments in education and training a top priority, as much for the sake of economic efficiency as social equality. Let us rekindle our young minds’ appetite for science and technology, without falling back into futile grudge matches that seek to divide “classical” culture and “hard” science.
[1] Business to Business applications are different from innovations designed for consumers (B2C).
I would also be delighted to welcome you on the occasion of the publication of the 17th edition of the DigiWorld Yearbook in Paris, in the prestigious Salle Wagram. A great opportunity to spark debate on the major trends of the digital economy in 2025. Check out the programme and register to the big future oriented debate DigiWorld Future 2017!
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This article was published in Les Echos
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