Information Technology is the conduit to achieve real economic integration in the 21st century era; yet until today, we have not been successful. The pathway to success lies in the name itself “Information Technology”. We need to understand the kind of “information” we rely upon, who delivers such a “technology”, at what cost, and whether it can connect our economies.
Information Technology (IT) has transformed the consumer online retail (B2C, C2B, and C2C), yet 94.9% of communications in the B2B global value chains – even in G20 nations – remain manual. Despite the calls by the G20 leaders to create an E-World Trading Platform, we are yet to gather the Big Data related to global value chains due to geopolitical, monopolistic, and data privacy concerns.
Thanks to its distinctive Research and Development which spans 15 years, GCEL is uniquely equipped to collect such Big Data by addressing the geopolitical, monopolistic, and data privacy concerns and to grow the world’s economic activity.
Data management is not just about available quantity; efficiency lies in the quality of the information that can be used. The world of information can be divided into two extremes:
I. Non-Validated Data (NVD)
This is data provided by a single source, without verification.
II. Ultimate Data Quality (UDQ)
Data with UDQ is continuously updated and validated through multiple sources as the shipment progresses through the global value chain. Since the veracity of the UDQ information is close to certainty, it inspires confidence in the trade participant to move from seeing a product or service online to its acquisition, thereby delivering unprecedented conversion ratios that that the marketing industry has been seeking for a long time.
Truth is, the world of IT is primarily reliant on NVD with a high dependency on reviews, IP-address behavior, like and dislike selections, etc., and less reliant on UDQ.
For the Digital Economy to succeed it requires real time dynamic and validated information. But where can we find this UDQ?
The UDQ environment already exists in the logistics industry. An industry long underestimated, it has the enormous potential to empower the global economy. The logistics pipeline lies at the core of our economies as it is the conduit that delivers the basis of the real economy, the food that we eat, the clothes that we wear and the materials to build our cities. What is required is the integration of the four pillars of trade; commerce, finance, insurance and logistics.
Given that logistics is the weakest and most fragmented of these pillars, the issues facing the industry prevent the other three from performing at optimum levels.
Digitizing global value chains enhances logistics efficiency, thereby producing the needed operational efficiencies. In addition, such an effort generates the UDQ needed to boost the other three industries as well, allowing them to reach their full potential by realizing appreciably higher productivity levels.
The Digital Economy environment is an ecosystem that permits global integration of product and service offerings with the intelligent proficiency to match sellers to targeted buyers. This environment is based upon dynamic, validated real-time information accumulated and continuously updated through the normal course of trade activities around the world. In other words, it is based upon the UDQ, rather than the unsubstantiated information presently in use. This environment will transform the four pillars of trade to a completely new digitally integrated level through E-Commerce, E-Finance, E-Insurance and E-Logistics.
E-Commerce enables the smart matrix at the moment a buyer evaluates any seller’s products or services globally, maximizing conversion ratios from seeing a desired product or service to its acquisition. This is the starting point of Real Economic Integration.
E-Finance expedites trade finance, promoting trade increases and enabling new global market expansion for large enterprises, as well as for the SMEs which represent a main cornerstone of global economic growth.
E-Insurance minimizes underwriter risk, expedites insurance coverage, enables maximized global door-to-door coverage, enables firms’ seamless integration into the global market, and facilitates expedited claims processing by providing firms with all the data needed to process claims quickly and accurately.
E-Logistics minimizes standardization requirements, creates a point-to-world integration environment, enables real-time performance monitoring, creates an optimal and validated E-Documentation environment, and provides the tools to plan and manage global trade lanes from shelf to shelf.
The Digital Economy will be implemented by a global trusted technology network that has proven success, selected under a transparent, equal-opportunity process. Furthermore, it involves all forms of organizations, public, non-profit, and private sectors working in concert together, capitalizing on each organization’s capabilities and jurisdictions. This introduces an independent global monitoring mechanism offsetting geopolitical, monopolistic, and data privacy concerns, while ensuring rapid global deployment, and providing benefits to all participants at no cost to the end user.
If the objective of the custodians of the world economy is to deliver a tangible solution, the Digital Economy must be their top priority. This marks the beginning of a New Era of IT through the 21st century Digital Economy environment.
The foregoing has been authenticated through the G20 Nations Case Study – involving diagnostic trade efficiency assessments across all G20 countries. The results to date are staggering: 90.4% of G20 citizens do not have an integrated system and 94.5% have confirmed the need for new digital tools provided by the Digital Economy environment to improve and expand their business.