Digital economy offers unique opportunities, but also challenges

As the year draws to a close the contours of Singapore's "Smart Nation" dream have become clearer.

Trials at the Jurong Lake District of technologies such as HetNet (heterogeneous network) show that ubiquitous connectivity is the key to rolling out digital services. HetNet is a system whereby a signal is seamlessly delivered to a device via the best available means, be it WiFi, 4G or any other network. This ensures total connectivity in all environments, even basement carparks and lifts.

Even if Singapore had no ambition to become the world's first Smart Nation, connectivity would still be important as the digitalisation of economic activity takes centrestage. Four major technology trends have converged over the past few years. They are mobile connectivity via smart phones and tablets, use of social networks such as Facebook and LinkedIn, cloud computing and advanced data analytics, also known as big data. Any one of these would have brought about fundamental changes in the way companies do business. Together they are changing the paradigm with disruption not seen in several decades. This year another tech trend has become mainstream, the Internet of Things or IoT for short. All manner of devices are being connected to the Internet. Research agencies reckon that IoT can provide a potential global economic opportunity to the tune of US$17 trillion by 2020. Around 20 billion "devices" are expected to be connected to the Internet…