Digital Economy and New Value Creation
According to the world bank, 60 percent of the global GDP rely on digital communication technologies in 2022.
More individuals are connecting to the global environment anytime, anyplace through smartphones, tablets, smartwatches, and other mobile Internet gadgets. The digital economy allows millions of people worldwide to purchase and sell products and services.
The term “digital economy” refers to the economic activity done by the billions of daily online connections made possible by the Internet among individuals, businesses, devices, data, and processes. These networks are allowing new goods and services, promote new business models, and defining new forms of value generation.
The Internet, mobile technology, and cloud computing are just a few examples of the rapidly advancing technology that is driving the digital economy. These technologies have revolutionized existing businesses and given rise to new ones.
Through the application of digital technology and data analytics, the digital economy is generating new types of value creation.
Large volumes of data can now be gathered and analyzed by businesses, which may be utilized to enhance goods and services, boost productivity, and find new consumers.
Additionally, new goods and services like tailored digital marketing and online experiences may be made using this data.
The sharing economy and the on-demand economy, which are built on the sharing of assets like homes and automobiles as well as the provision of services like delivery and transportation, are two emerging business models that are being encouraged by the digital economy.
New types of jobs are also being made possible by digital technology, including remote work and the gig economy, in which employees are employed on a project-by-project basis.
By linking individuals, organizations, and nations as well as encouraging innovation and entrepreneurship, the digital economy also aids in the growth and development of the world’s economies.
However, it also has its own difficulties, including security and privacy issues, and it may have a bad effect on existing sectors and their workers.
In general, the digital economy is promoting new business models and new ways to create value. Although it is a significant component of the global economy and has the potential to be very beneficial, it is not without difficulties.
The development of laws and practices that can support the promotion of a fair inclusive, and sustainable digital economy requires collaboration between governments, international organizations, and the business sector.