As the story of globalization progressed, it was always accompanied by several socio-cultural changes but no change was as prominent as the development of modern technology and one of the most important technological advancements of this period was the growth of the Internet. With the rapid expansion of the internet, the traditional and digital economies are slowly merging into one. And as the name suggests, the digital economy refers to the economy based on computing and digital technologies. It includes the economic, business, cultural, and social activities that are highly dependent on the internet. Digital technology in essence refers to the transactions and commerce activities that take place in the online domain.
Components of Digital Economy
In the context of the present circumstances of the world, the Digital economy can be divided into three key components that are:
Key Attributes of Digital Economy
Some of the key attributes of the digital economy are:-
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It is Digitized: Various analogue objects produce digital signals which can be easily measured, tracked, and even analyzed for efficient decision making. Also, lower costs for modern technology are allowing operators to invest more processing out into the business.
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It is Connected: The Workers, assets, suppliers, and even stakeholders are all linked together by wireless communications. It enables various people to make better decisions that promote safety, visibility, and efficiency across the enterprise.
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It is Shared: The digital economy operates on the principle of sharing. Buying only what is required often reduces costs and allows the companies to pay only for the value received.
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It is Personalized: One of the most important characteristics of the digital economy is customer personalization. Hence, it enables customers to get benefits from their favorite brands whenever and wherever they want.
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It is Direct: The Leveraging of remote intelligence to monitor, manage, report, and resolve asset problems throughout the service lifecycle, eradicates the need to have local personnel on the ground.