Digital economy is an economy that is purely based on the use of digital computing technologies to conduct business whether internally or externally. On the other hand, it may also be defined as a way of doing business through markets, with the help of the internet and the World Wide Web. Apart from this, Digital economy may also be termed as Internet Economy, Web Economy, and New Economy.
Don Tapscott coined the term Digital Economy in his 1995 best-selling book. Don observed that businesses had taken a new turn, and they were more reliant on the use of technology to conduct business.
With the continued growth of the internet, the digital platform of the economy has grown exponentially as well. It is estimated that this form of economy is worth more than $3 million. This is equivalent to 30% of the S&P 500, which is six times more than the U.S. and UK’s annual trade deficit. An interesting point to note, however, is the fact that this growth has taken place within the last three decades when the internet was launched.
Impacts of Digital Economy.
The growth of the economy has a significant effect on the economy as a whole. The notion behind this argument is based on the fact that many businesses have embraced the internet as a way of enhancing growth and promoting their companies. As a matter of fact, many companies are nowadays using social media sites to advertise their products. These companies have realized that the use of social media sites brings in more clients since more consumers are using these social sites on a daily basis.
Digital networking provides a universal platform where organizations and business people can interact, collaborate, and devise new strategies to search for factual information. In a digital-oriented economy, the same principle is applied. For instance, when organizations meet, they devise new ways in which they can minimize competition and increase productivity. In such a situation, the involved companies may decide to implement the use of social media due to its power to reach out to a high number of people within a short time.
Helps to execute tasks faster and accurately.
Thanks to this digitized type of economy, organizations can highlight opportunities. Apart from this, business owners are in a better position to view the importance of technology in executing various roles within a business entity.
The use of digitized economy has also made it easier for businesses to streamline their overall operations. This can be based on the fact that the form of technology employed by Digital-mediated economy helps business owners to execute various tasks faster and accurately.
As the world’s economy turns towards a fully-enhanced digital platform, retailers and business owners are leveraging the use of technology to reach out to a high number of consumers. The notion behind this argument is based on the fact that retailers and business owners employ the use of mobile apps and online sales to identify potential buyers. They usually do this by analyzing the browsing activities of the buyers and determining their interests. There are therefore in a position to tailor-make products and services based on their consumer’s interests hence increasing their awareness and promoting their business.
With the advancement of technology and the urgency to invest in different business ventures, many people have set foot in the world of digital entrepreneurship. Digital entrepreneurship has made it easy for business owners to run and manage their businesses online, and buy and sell products at the comfort of their office seats. The good thing about digital entrepreneurship is the fact that anyone with the knowledge to use the internet can become a digital entrepreneur.
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