Digital economy is the economic activity that results from billions of everyday online connections among people, businesses, and devices. It is an economy that is based on digital computing technologies such as the Internet. The digital economy is also referred to as the Internet Economy, the New economy, or the Web Economy. Many scholars see the digital economy as the fourth industrial revolution. The backbone of the digital economy is hyper-connectivity enabled by the Internet, mobile technology, and the internet of things (loT).
To give you some concrete examples of how the digital economy is influencing our everyday life. Here are three fundamental areas of digital transformation central to businesses.
Future of work
People now work regularly from different locations: offices, home, local café, or in a park. While we are on the move, we all expect the same level of connectivity to the internet. The emergence of this flexibility requires companies to manage a dynamic ecosystem of talents and to develop a digital business structure that’s effective across various location and time zones.
In the digital economy, customers are interacting with businesses at all time high, whenever and wherever they want to, and in a fashion that is most convenient to them. Moreover, customers expect the engagement to be seamless, omni-channel, and personalized.
The Internet of Things (loT)
The Internet of Things, loT, encompasses all the devices in the world that are connected to the internet, connected to each other, sharing and collecting data. Examples maybe a lightbulb that can be switched on using your mobile phone, a driverless truck, or an airplane that’s filled with sensors transmitting data to ensure its operations. loT is making objects around us more responsive and smarter, merging the digital and the physical world.
At its core, digital transformation is about using the latest technology to do what we are already doing—but better. The melding of the physical and digital world brings every asset into the digital domain and being able to understand its inventory at any given moment will become an imperative for any business in the coming years.