The dynamic nature of business has given rise to various forms of economies. In today’s world, businesses massively rely on information technology and are heavily committed to “all digital”.
Today we have reached the stage of the fourth industrial revolution, which represents the shift in business to an increasingly digital form of operations.
The term digital economy is often confused with the term “internet economy”. However, digital economy is more complex than internet economy. Internet economy is only a part of digital economy. Digital economy means propelling economic and social activities through digital approach. It includes activities like buying and selling, advertising, transporting various goods and services using internet and various connected devices.
Over the passage of time, the forms of digital economy have changed. E-commerce, search engines, social networking sites, cloud networking, crypto currency and advertisement are some of the examples.
E-commerce is transaction of buying and selling online. E-commerce helps connect buyers and sellers directly or through various agents, ensuring global accessibility.
Many firms like Alibaba and Tencent have made a niche for themselves in e-commerce.
Similarly, search engines and social networking sites like Facebook, Twitter and Instagram are also providing professional platforms for those seeking opportunities. Digital marketing is also now trending in the market.
Crypto currencies like Bitcoin and Ethereum are serving as new means of investment for exploratory investors.
Digitalisation has made its mark in almost every sector — ranging from education to manufacturing, profit-oriented to nonprofit and household businesses to heavily regulated industries like banks.
These forms of economies have while brought a new revolution, they have also raised some concerns among those who fail to understand their benefits and challenges.
Lack of proper regulation could also create threat of underground economy, tax evasion and revenue losses. And there are issues related to cybercrimes. So, security assurance is a must while making a pitch for digital economy.
Technologies do make our lives easier but there is also a need of maintaining a constant check to ensure they do not harm us.