mis

676 Words3 Pages
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 ... ... middle of paper ... ...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.

More about mis

Open Document