What is Digital Economy

The concept of digital economy or as in English and in the field of economics (The Digital Economy) refers to that global network that includes all economic activities, practical and professional interactions, and commercial transactions, which are enabled, strengthened and developed through a set of information and communication technologies that are abbreviated with the symbol (ICT), taking into account that the digital economy reflects a state of transition from the third industrial revolution to the fourth industrial revolution. The twentieth century, coinciding with the transition from work within analog electronic and mechanical devices, to work through the use of digital technologies, and it should be noted that the Fourth Industrial Revolution depends and is based mainly on the digital revolution, maintaining the continuity of current technologies to meet the needs of both the physical world and the Internet world.

It is worth noting that there is no universally approved concept of digitization or digital commerce to date, and the absence of a generally agreed definition of the term "digital economy" or "digital sector", and the lack of industrial and economic classification To clarify this concept, and the lack of products for Internet platforms and related services, is one of the biggest obstacles to measuring the digital economy. Read more: 7 Elements of the Marketing Mix.

Importance of the Digital Economy

Although some organizations and individuals are using the technologies currently available to perform current tasks on the computer, the digital economy is more advanced than that, since it is not enough to use the computer to perform tasks that are performed in a traditional or manual way, Instead, the digital economy plays a prominent role in showing the opportunity and urgent need of organizations and people, and motivates them to use these digital technologies, in order to carry out those tasks better, with higher quality and in a shorter period. of time, that is, faster, and often the results or products are completely different from the previous ones.

Furthermore, the importance of the digital economy lies in the full ability to make the best use of technologies, to perform all tasks and to ensure participation in events and activities that were not possible and available in the past, given that such opportunities are offered to professional entities in the labor market, it ensures that they do business in a better way, and in a different way far from everything traditional, and many entrepreneurs have benefited from all available digital technologies, which in turn feed the digital economy , and provide the opportunity to create new facilities, projects and companies, and introduce new business models that were not available before, may have existed before, or may have existed on a smaller and less developed scale in past generations.

Pioneers of the Digital Economy

Many entrepreneurs have taken advantage of the technologies that power the digital economy to create new businesses, and Don Tapscott coined the term digital economy for the first time in history, in one of his books, and that was the best-selling book of 1995. titled "The digital economy, the promise and the danger ". In the age of networked intelligence, he presented a set of basic and important information that formed the foundation and cornerstone for understanding the mechanics of the digital economy. Nicholas Negroponte, founder of the Massachusetts Institute of Technology, which is itself affiliated with the Massachusetts Laboratory, and who is also the author of Being Digital, described his version of The first was in 1995, in which he described the digital economy as the use of "bits instead of atoms".

Digital Economy Versus the Internet Economy

In the early days of the new economy concept, the digital economy was sometimes called the Internet economy, the new Internet-related economy, or the web economy, due to its dependence on Internet connectivity; However, economists and business leaders argue that the digital economy is more advanced and complex than the Internet, which in one definition means the economic value derived from the Internet, that is, by using only this network.

Digital Economy and Society Index

The Digital Economy and Society Index, or DESI, is a composite or dual index published by the European Commission since 2014, and published annually since then. This indicator measures the progress of the countries of the Union. Towards the Digital Economy and Society, its operating principle is to gather a set of relevant indicators on the current mix of digital policies in Europe.

Digital Economy Models

There are several models and examples of traditional companies succeeding in the digital economy, including but not limited to retailers. Most retailers initially developed websites to enable online sales, at the time As the world moves towards the digital economy more and more More broadly, forward thinking retailers work and turn to technologies modern and digital to reach customers and provide them with the right services, through a variety of channels.

These retailers use online sales and mobile apps to identify target groups or consumers, whether they are shopping online, individually or in person. They can collect and analyze the browsing and sales data of each customer to better and more accurately understand their trends and interests, and they can use this data in order to reach customers through social networks, such as Facebook and Twitter, allowing for better service and ultimately higher sales, and ensuring greater brand loyalty.

It is often referred to as the idea of ​​using information technology and modern technologies to unify the real-world customer experience and websites, as a multi-directional and multi-channel, or multi-directional, approach with the end goal. to increase profits.

New Economy

When we talk about the digital economy, we cannot ignore what is being said about the modern economy, or the new economy, since the new economy is a very important term that tries to describe all modern and new industries with high specifications, high growth and that They are at the forefront of technological development and digital power. The engine of economic growth, and it is noteworthy that the new economy began in the late nineties, when advanced technology tools were included, especially the Internet, and computers, which are increasingly powerful. and sophisticated over time, knowing that the new economy was seen as a transformation from the economy based on traditional manufacturing of basic products, to the economy that uses technology to create new products and services at a rate that cannot be compared to the traditional industry. economy, and provides products that fall into the category of secondary needs and ensures the well-being of individuals and institutions, as well as individuals.

In conclusion, the digital economy has created a true revolution, as new companies and new ways of interacting have emerged, however, many companies and industries that could not or could not catch up with the procession of development, or take advantage of the technologies to change. their operations, faced a notable decrease in sales and profits, and a clear decrease in their market share, some of them have finally reached bankruptcy or total and total collapse.