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Digitalization Yrjö Neuvo, Erkki Ormala & Meri Kuikka (eds.) Ormala & Meri Kuikka Erkki Neuvo, Yrjö Aalto University’s Multidisciplinary Institute of Digitalisation and Energy (MIDE) Bit Bang 8: Digitalization Digitalization | Bit Bang 8 Bit Bang 8 1 Bit Bang 8: Digitalization Yrjö Neuvo, Erkki Ormala & Meri Kuikka (eds.) Aalto University’s Multidisciplinary Institute of Digitalisation and Energy (MIDE) ISBN 978-952-60-1100-4 (printed) ISBN 978-952-60-1101-1 (pdf) Cover and layout: Nanna Särkkä Illustration: Tmeks/Istockphoto Printed by: Unigrafia Oy, 2016 Table of Contents Foreword ......................................................................................................................................6 DIGITALIZATION Is Digitization Making Work Precarious? Implications of the Global e-Lancer Economy ..............................................................11 Messianic Visions or Path to Technocorruption: Are Cryptocurrencies a Root of All Evil or Future Wealth of Nations? ............... 39 Subjective Context Awareness: Machines That Understand Personal Accounts, Feelings, and Emotions ...........81 University Education in 2035: Paving the Way for a Digital Future .................................................................................111 The Digital Health Society: Perspectives on Real, Predictive, and Preventive Care ............................................131 Digitalization Reshaping Conflicts— The Ordinary Citizen as the New Peacekeeper .......................................................... 159 Disrupting the Water Industry ........................................................................................203 Digitalization: Unlocking the Potential of Sharing ...................................................237 APPENDICES 1. The Bit Bang People .........................................................................................................264 2. Guest Lecturers ...............................................................................................................268 3. Course Literature .............................................................................................................269 4. Study Program in Seoul .................................................................................................270 5. Seoul Study Tour Reports .............................................................................................272 Bit Bang 8 5 Foreword This book is the 8th in the Bit Bang series of books produced as multidisciplinary teamwork exercises by doctoral students participating in the course Bit Bang 8: Digitalization at Aalto University. The course was facilitated by Professor, Research Director and former Nokia Chief Technology Officer Yrjö Neuvo; and Professor Erkki Ormala, former Vice President of Nokia. 21 students took part in the course during the academic year 2016-2017. The students were selected from diverse academic and cultural backgrounds: 12 nationalities were represented by students from all six Aalto Schools, leading to spirited in-class discussions and multidisciplinary teamwork. The learning objectives of the course centered on teamwork, multidiscipli- nary collaboration, and gaining global perspectives and foresight on the future of digitalization. These were achieved through weekly lectures from visiting industry leaders, writing the chapters of this book, and other teamwork assign- ments. As textbook material and to support class discussions and teamwork the students used The Second Machine Age by Erik Brynjolfsson, as well as selected chapters from previous Bit Bang publications. Working in teams, the students set out to answer questions related to digi- talization. Technological progress brings new solutions at an increasing speed. Digital convergence, next generation Internet, cloud computing, ubiquitous computing, mobile sensing, self-driving cars, and the smart grid are all examples of the new developments taking place today. Digitalization has also brought great opportunities for economic growth, productivity gain and job creation in our societies, and will change the way industry will operate in the future. Bit Bang 8 addressed the topic of digitalization from the perspective of its economic, envi- ronmental and social sustainability. The course elaborated on the interconnect- edness of these phenomena, and linked them to possible future scenarios, global megatrends and ethical considerations. How will digitalization shape our future? How can we prepare can prepare our societies to respond to these changes? By the end of the autumn term, four teams had produced four points of view on the effects of digitalization published in this book:Is Digitization Making Work Precarious? Implications of the Global e-Lancer Economy; Messianic Visions or Path to Technocorruption: Are Cryptocurrencies a Root of All Evil or Future 6 Bit Bang Wealth of Nations?; Subjective Context Awareness: Machines That Understand Personal Accounts, Feelings, and Emotions; and University Education in 2035: Paving the Way for a Digital Future. At the start of the spring term, the groups were reshuffled and set to tackle new topics: The Digital Health Society: Perspectives on Real, Predictive, and Preventive Care; Digitalization reshaping conflicts – the ordinary citizen as the new peacekeeper; Disrupting the water industry and Digitalization: unlocking the potential of Sharing. During the spring term, the course also visited Seoul for a week-long study tour. The tour program and short reports on the company and institution visits are available in the appendices of this book. The Bit Bang series of courses is funded by the Multidisciplinary Institute of Digitalisation and Energy (MIDE). The unique nature of the course has gener- ated lots of positive feedback from the academic community, and produced an extensive network of alumni connecting doctoral student sand graduated doc- tors. We are very proud of the community we have been able to gather around this unique and though-provoking course. We wish to give our special thanks to this year’s tutors and Bit Bang alumni Synes Elischka, Jussi Hakala, Vincent Kuo and Noora Pinjamaa for their tireless work with their teams and valuable advice given whenever needed. We also wish to thank our esteemed guest lecturers representing government, industry and academia. Their presentations and discussions gave valuable insight into the is- sues studied, and their role was essential for the success of the course. We wish you captivating moments with the book! Yrjö Neuvo, Erkki Ormala and Meri Kuikka Bit Bang 8 7 Digitalization 10 Is Digitization Making Work Precarious? Is Digitization Making Work Precarious? Implications of the Global e-Lancer Economy Katharina Cepa 1, Colm Mc Caffrey 2, Abdollah Noorizadeh3, Mikael Öhman4, Piia Töyrylä5 Tutor: Synes Elischka6 1 Aalto University School of Business, Department of Management Studies, PO Box 21230, FI-00076 Aalto 2 VTT—Technical Research Centre of Finland, PO Box 1000, FI-02044 VTT, Finland 3 Aalto University School of Engineering, Department of Civil and Structural Engineering, P.O. Box 14100, FI-00076 Aalto 4 School of Science, Department of Industrial Engineering and Management, PO Box 15500, FI-00076 Aalto 5 Aalto University School of Electrical Engineering, Department of Communications and Networking, PO Box 13000, FI-00076 Aalto 6Aalto University School of Arts, Design and Architecture, PO Box 11000, FI-00076 Aalto ABSTRACT: This article explores the phenomenon of e-lancing and its effects on labor relations, migration of work, and the resulting global redistribution of wealth. A compari- son of three e-lancing platforms paints a more accurate picture of what e-lancing actually means in terms of work content, organization, and potential challenges. On a national level, e-lancing sparks a discussion about social rights, the mechanisms that drive long-term sustainability of social security contribution and coverage schemes. On a global level, the question of fair wages and quality-of-living standards is taken up anew. Taking the North- ern European perspective, we present policy recommendations on how to foster the positive effects of e-lancing, while trying to minimize detrimental effects. KEYWORDS: e-lancing, labor relations, social security, taxation, global fair wage Bit Bang 8 11 1 Introduction Freelancing has long been a common term and mode of work organization [1]. The Oxford open web dictionary defines freelancing as being “self-employed and hired to work for different companies on particular assignments” [2]. A term less commonly accepted and less generally known, e-lancing leans on this definition and places it into to the virtual; Wikipedia defines e-lancing as “the recent trend of commending and taking free-lancing work through so-called e-lancing web- sites. E-lancing websites are hubs where employers place tasks, which freelanc- ers from around the world bid for” [3]. Thus, e-lancing is freelancing that occurs online and that is mediated via Internet platform providers. In consequence, there is no longer a direct, nonmediated relationship between the e-lancer and the employer. This appearance of an intermediary may have implications for e- lancers’ employment and broader social rights. E-lancing is a trend strongly driven by digitalization. The increasing con- nectivity enables more and more people to participate in this global market. At first sight, this creates a lot of opportunities and positive effects for e-lancers and organizations; employees in
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