Conduction of business in the digital economy entails the use of Internet based system on the Internet and other Internet enabled electronic gadgets to do perform some of electronic commerce. The digital economy refers to an economy that is actually based on the digital technology, for instance digital communication network such as intranets, internet, computers, private value added networks, and other related information technology.
Forces that have led to the existence of digital economy
The forces that have led to the existence of the digital economy are the growth, integration, and sophistication of the information technology. Most consumers are now routinely utilizing computer’s networks to establish sellers, compare their prices, and evaluate products, services, and extra market leverage.
Besides, most business entities are using the internet network more extensively to conduct and re-invent the production processes, streamlining the procurement presses, and reaching out to untapped global market, as well as managing internal operations.
The other common feature of digital economy is the intense use of data, especially personal data, which constitute a major resource of the digital economy. This data enables organizations that collect them to measure and improve the performance of an application, to recommend products to their clients, and customizing their services.
The other relevant forces that have enabled the development of digital economy include: the architecture of the internet and other related network technologies; the regulation of informational content on the internet; the framework of legal rules that are required to create and buttress the new and ill-defined markets in cyberspace; and lastly, the government ...
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...s also become an intimate part of millions of people’s lives, thus showing that digital economy is deemed for further growth in future. The digital economy based industries as well as other forms of internet technology enabled business activities have been predicted to be the next significant sources of economic growth in the next decade. This includes the IT industry itself, digital delivery of goods and services, electronic commerce, and the IT-supported retail sale of the tangible goods.
Given its expected large influence, traditional organizations are actively assessing how to respond to the changes that have been brought about by the digital economy. Besides, for corporations, their response timing is very vital. Banks are innovating and utilizing digital tools to enhance their traditional business. Governments are also investing in the digital infrastructure.
Amazon.com operates in the Online Retail Industry. The sector is one of the fastest growing globally and is outperforming the ordinary retail marketplace. It was created after 1995 and it was only the Internet that made it possible for such an industry not only to be established but to become one of the most flourishing sectors in the business environment. What is interesting is that Amazon.com, together with eBay is the pioneer in the field. Both companies were launched in 1995 and are still extremely successful. The creation of e-mail in 1996 had a huge impact on the development of online retail by introducing a fast and easy way to communicate with customers. For this two-year period Internet usage doubled annually, thus, allowing for the expansion of the industry. Google is launched a year later, in 1998, only to become the most used search engine in the world and an essential partner for the online retailers by helping them tailor their websites to customer’s personal preferences and by advertising. After that, more and more people see the opportunity in the growing industry and enter it. By 2001 there are more than 513 million Internet users globally, which calls for action in terms of creating regulations and laws to protect the users and personal property. In 2003, Apple launches iTunes, and provides a platform for low-cost digital downloads. Another major change is the appearance of social media from 2004, which is one of the biggest influencer on the state of the industry. With the launch of iPhone in 2007, this trend strengthens as people get to enjoy the Internet anywhere they want to. From then on, technological advancements have made it extremely easy and fun to shop online, making it ...
In summary, “Internet activities are not most significant in competition, such as informing customers, processing transactions, and procuring inputs”. (Porter, 2001) significant corporate assets--skilled employees, proprietary product, and efficient logistical systems – these factors are the most important to keep competitive advantages. In fact, it is foreseeable that the Internet's evolution will come up in the future involve a shift “in thinking from e-business to business, from e-strategy to strategy”. (Porter, 2001)Only by integrating the Internet into overall strategy will this powerful new technology become an equally powerful force for competitive advantage.
Commonly known as the Internet, the world’s largest network is used extensively throughout the world today. Since its creation in 1983, the Internet has continued to grow in popularity and use as a commercial and private communications medium. Millions of people throughout the world use the Internet in a variety of ways, ranging from personal conversations to on-line shopping. According to a survey compiled by Nua Ltd in 1999, the number of Internet users rose from 26 million in 1995 to 205 million in 1999, an increase of almost 700% (Nua Ltd)! With such an explosive increase, how then has the Internet affected us personally, and how has it affected the way we do business? The answers to these questions include changes in the way people obtain information, interact, work, learn and conduct business.Given the Internet’s original purpose is to share information, it is no wonder that the most important asset of the Internet is the wealth of information that can be found on the Internet (Maney 3).
Brynjolfsson, E., & McAfee, A. (2011). Race Against the Machine: How Digital Revolution is Accelerating Innovation, Driving Productivity and Ireversibly Tranforming Employment and the Economy. Lexington, Massachusetts: Digital Frontier Press.
With an entity as vast as the Internet, it is not surprising that a variety of unanswered questions will arise. I’m positive that the Internet will continue to confound scholars as it continues to quickly evolve. By analyzing the views of the celebrants and skeptics, I have been able to understand the potential that the internet has. By using the PEC, I have been able to understand how democracy and capitalism relate to the issues of the Internet. In the future, I hope that society can develop a further understanding of the Internet and move toward the Internet that the celebrants had hoped for.
With the rapidly advancing technologies that are occurring in modern business, organisations are required to be ready, and able to adapt within their ever-changing environment. It is true across all diverse industries that in order to stay competitive, organisations must be able to utilise the various tools that technology has to offer. Technological factors have been of growing importance, particularly in recent years. A major factor involved in these technology issues is the use of the Internet as a major issue to modern organisations. The Internet has been rapidly growing since its inception and is now commonly used in all sectors of societies, in all corners of the...
Jens, C., Peter, M (2003) The Industrial Dynamics of the New Digital Economy, Edward Elgar Publishing
The Internet and international business is an interesting topic- discussing an area of business that will probably be around for many years and possibly centuries to come. Since its earliest days, the Internet has been a means of communication, an essential tool in almost instant communication.
The internet is changing marketing not to mention the world. "The number of internet users worldwide is expected to reach almost 1.4 billion by 2007" according to Armstrong & Kotler (2007) p. 26. The internet is also changing the ways that companies are conducting their marketing.
Business today is inextricably intertwined with technology, from the smallest home office, to a multinational corporation with multiple monolithic legacy application. It is impossible to be in business today without confronting the issues of technology. The way we do business today is different than 30 years ago. Technology has evolved around the areas of telecommunication, travel, stock market, shipping even around our daily lives. E-commerce a system by which people can buy, sell and deal without even seeing the person on the other side has taken a front seat in improving the economy of countries around the world. Technology today has made it possible for monetary institutions to help locate the customers resources and help solve their problems at any given time through online banking. The Internet, a boon to all business, is playing a part of a catalyst; it links millions of customers to its suppliers and vice versa due to this, manufactures are able to cut the role of middlemen and are able to deal with the customers, giving them the ability for direct input from the customers about their choices and views of their product. The busi...
The Internet was not always as convenient as it is today. The high speeds available have grown exponentially since the introduction of bandwidth. “Until 2007 most Americans lacked high-speed Internet connections at home” (Conlin, 2014) Also, the amount of people using the web globally has increased over a thousand million since the turn of the twenty-first century. “The Worldwide Web (WWW)2 – as a medium for entertainment and news – did not exist as an effective communications medium until the 1990s.” (Conlin, n.d.) This development of the web has created a means for Internet marketers to reach limitless potential customers all over the world.
The consistent use of information and communication technology (ICT) in modern world enables us for countless opportunities for individuals, institutions, business organisations and scientists, but it also raises difficult ethical and legal problems. In particular, ICT helped to make societies more complex and thus even harder to understand. The use of ICT has led to changes in concepts: ownership, buying and selling, right to possession, theft, justice in the distribution of resources and access rights. During the nineties, the internet has grown into all business segments resulting in a large number of questions running. It has been noted that during those time period there has been merging of computers, telecommunications, and media which is further emphasized by the emergence of new issues and strengthening old ones.
Electronic Commerce as popularly as E-commerce has become a big deal in our growing economy due to the increase use of online systems. E-commerce now of the fastest growing business in the world. The technology has change the way of business. Business that have physical location have now made it an effort to focus their online business. It is the new sort of business platform where you can make use of different technologies like electronic data interchange or transfer document electronically. Online business is an effective of sales.
The Internet has become a key ingredient of strenuous and busy lifestyle. ‘Internet’ has become the central-hub for communication, explorations, connecting with people or for official purposes. Resultantly, Internet growth has led to a plethora of new developments, such as decreased margins for companies as consumers turn more and more to the internet to buy goods and demand the best prices.
The unparalleled effect that internet had on commerce can be very well understood by studying the industrial and economical growth in late 90s, this period of high economic growth is referred to as “The .com bubble”. It won’t be wrong to say that internet made a million millionaires.