Digital Economy and why it’s inevitable
Digital economy can be defined as the facilitation in traditional commerce of goods and services with the involvement of digital technology, internet and IT.
Digital economy covers all the major aspects of traditional economy and their components like Products, Consumers, Transactions, Value of products, Balance between demand and supply etc.
Digital economy provides a common virtual market place for the promotion, sale and purchase of products between businesses, consumers and consumer – consumer.
- Some features of a Digital economy are:
- Increased demand for skilled labor
- Change in consumption pattern
- More effective Supply chain
- Faster responses to the requests of consumers
- Electronic commerce between organizations
- Improved efficiency of production
- Balanced demand and supply patterns
- Greater specialization
- Integration technologies like web services along with traditional centers.
- More granular business focuses i.e. more focus on the product of a business.
As the world is going on-line, digitization of economy plays a vital role in nurturing a new business in the marketplace with a minimum initial investment required and helps them develop new business relationships by understanding the presence of all the potential clients over the web.
Digital economy focuses and empowers the delivery of digital good, hence reducing the material transportation and other related cost of the product and hence, the over all cost of production. It also facilitates the traditional commercial activities and boosts up the pace of processing different activities. Digitization also supports the expansion of e-businesses, as product is digital and even if it isn’t, the mode of communication and marketing is digital which convincingly asks businesses to operate online.
Economy digitization is mainly for the digital product oriented companies like
- Digital Art
With the digitization of the economy, online transactions will become more secure from what they are now. Payment mechanisms like merchant’s accounts, payment aggregators, micro payment mechanism etc. would mark their presence even in the smallest firm involved in digital economy.