Megacities today are synonymous with economic development. Both in developed and emerging cities, those with a population. That are 10 million or greater account for one-third or one-half of their GDP. Many policymakers and analysts believe that this trend is likely to be around for the long haul. The growth of Big Data Analytics as well as mobile technology. Could spur growth as they claim, turning cities like Shanghai. Nairobi and Mexico City into smart cities that can make use of their massive population to fuel. Their economies and alter the balance of power in the world.
As tech-savvy researchers we are seeing an unfavorable future for cities. This is because crowdsourcing and digitization can actually harm the fundamentals of the megacity. Economy that’s typically built on a combination of commerce, manufacturing professional and retail services.
The exact formula varies depending on the region However. The general idea is to maximize the efficiency of their huge population. Nowadays, megacities rely strongly on the concept of economies of scale through which higher production yields costs. Advantages and the benefits and savings of the co-location of businesses and people in industrial clusters and neighborhoods. However, technological advancements are changing the old business models, and threatening the our future megacities as we recognize them.
Manufacturing In Trouble Megacities
One of the most famous examples of a revolutionary new technique is 3D printing. Which allows individuals to print everything from ice cream to parts for machines. As this method of printing is streamline is adopt. It will eliminate several of the numerous connections in the global manufacturing process. In removing all the middle men, 3-D printing could ultimately limit the supply chain down to an artist. On one end and a producer on the other, drastically reducing manufacturing costs for manufactured goods.
This is good for the margins of profit of multinational companies or consumers. However, it’s not good so for factories, in which a lot the transportation as well as warehouse. Infrastructure is likely to be decommission in the near future. Manufacturing jobs storage, logistics, and manufacturing. Which are already in danger across a variety of major locations, could soon be at risk across the world.
In short 3-D printing has transformed the scale economies which emerged from industrialization into economics of just a very few. As it grows across the globe, cities, especially Asian manufacturing centers. Such as Dongguan and Tianjin and Tianjin, both in China will likely be impact by a wide-scale. Disruption of their workforces and economies.
The Decline Of The Mall Megacities
The retail industry is going through the same change. Shopping malls for example that were once thriving in cities of immense size, are being impact by the rise of online commerce. The main benefit of shopping malls was they economies of scale that depend on location. For malls to success they need be situate close to a large population base. Megacities that were densely populate were ideal.
As stores have gone online, mega-cities have lost their competitive edge. Although online shopping hasn’t entirely replaced brick-and-mortar stores but its convenience and ease has forced many shopping centers to close across the globe. The U.S., mall visits decreased 50 percent between 2010 and 2013.
Cities in China where the Chinese government has been trying to create a national economy around consumption is likely to hit severely by this trend. China is the world’s biggest online marketplace and it is believe that one third of China’s 4,000 retail malls will close within 5 years.
The mobile revolution continues to expansion, allowing access to even the most remote communities it will increase across the globe. Soon , retailers such as Amazon, Alibaba and eBay will turn each smartphone in to a shopping mall, particularly in the event that the dream of drone delivery is realize.
The New Work Force Is AI, Robots, And The Cloud Of Human Beings
Changes in the world of business will affect cities across the globe. Artificial intelligence, also known as AI, which allows automation of many tasks that are both cognitive and manual Today, we say goodbye to human bank tellers and managers of funds, and hello robots. Even for jobs that can’t automate easily The digitize gig economy puts people in direct competition with an international number of freelancers who can perform tasks that are both simple and highly specific.
There are definitely advantages for crowdsourcing. Utilizing the power of AI and the collective knowledge of a vast number of medical professionals from 70 countries The Human Diagnosis Project has built a global diagnostic platform that is free for all doctors and patients and is especially beneficial for people who aren’t able to access to public health services.
However, by embracing collaboration that is virtual and implementing it is the human cloud business model is also rendering the concept office spaces obsolete. In the near future medical professionals of various fields will no longer need to be in close proximity to each in order to get their work accomplish. Similar is true for other areas of expertise.
If there were no office space, traditional businesses and financial centers like New York and London would suffer, because urban development, the zoning process, and the real property market megacities struggle to adapt to workers and firms ever-changing demands.