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    Chapter 10

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    Samit Shrestha
    The document discusses key aspects of the digital economy, including its 12 themes and 10 technology shifts. It outlines the components that make up the digital economy, such as government, infrastructure, industries, and intellectual property. It also describes the four layers that indicate the internet economy: internet infrastructure, applications infrastructure, intermediaries, and commerce. Overall, the document provides an overview of the digital/internet economy, its defining characteristics, and important factors that comprise it.

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    Chapter 10

    Uploaded by

    Samit Shrestha
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    The document discusses key aspects of the digital economy, including its 12 themes and 10 technology shifts. It outlines the components that make up the digital economy, such as government, infrastructure, industries, and intellectual property. It also describes the four layers that indicate the internet economy: internet infrastructure, applications infrastructure, intermediaries, and commerce. Overall, the document provides an overview of the digital/internet economy, its defining characteristics, and important factors that comprise it.

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    The document discusses key aspects of the digital economy, including its 12 themes and 10 technology shifts. It outlines the components that make up the digital economy, such as government, infrastructure, industries, and intellectual property. It also describes the four layers that indicate the internet economy: internet infrastructure, applications infrastructure, intermediaries, and commerce. Overall, the document provides an overview of the digital/internet economy, its defining characteristics, and important factors that comprise it.

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    © All Rights Reserved
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    Download as pptx, pdf, or txt
    21 views23 pages

    Chapter 10

    Uploaded by

    Samit Shrestha
    The document discusses key aspects of the digital economy, including its 12 themes and 10 technology shifts. It outlines the components that make up the digital economy, such as government, infrastructure, industries, and intellectual property. It also describes the four layers that indicate the internet economy: internet infrastructure, applications infrastructure, intermediaries, and commerce. Overall, the document provides an overview of the digital/internet economy, its defining characteristics, and important factors that comprise it.

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    Chapter-10

    Thrive in a new economy


    Digital Economy
    • Digital economy refers to an economy that is based on digital
    computing technologies, although we increasingly perceive this as
    conducting business through markets based on the internet and the
    World Wide Web. The digital economy is also sometimes called the
    Internet Economy, New Economy, or Web Economy.
    Component of Digital Economy
    1. Government
    2. Policy and regulation
    3. Infrastructure- Internet and electricity
    4. Telecommunication industry
    5. Digital service providers
    6. E-business and e-commerce industry
    7. Information and knowledge management systems
    8. Intellectual property rights
    9. Human capital and knowledge workers
    10. Research and development
    11. Emerging technologies
    Twelve theme of the Digital economy
    • Knowledge
    • Digitization
    • Virtualization
    • Molecularization
    • Integration / Internetworking
    • Disintermediation
    • Convergence
    • Innovation
    • Presumption
    • Immediacy
    • Globalization
    • Discordance
    1. Knowledge
    • Information Technology enables an economy based on knowledge
    • Economy based on brain rather than brawn
    • Rise of Artificial Intelligence (AI) and other knowledge technologies
    • Knowledge is created by knowledge workers and by knowledge
    customers
    2. Digitization
    • All information can be represented as either 1 or 0
    • Bits could be used to represent more and more types of information,
    such as graphs and photographs
    • Vast amounts of information can be squeezed or compressed and
    transmitted at the speed of light.
    3. Virtualization
    • As information shifts from analog to digital, physical things can
    become virtual – changing the metabolism of the economy, the types
    of institutions and relationships possible, and the nature of economic
    activity itself.
    • Few examples of virtualization are virtual shopping mall, virtual
    corporation.
    4. Molecularization
    • The old corporation is being disaggregated.
    • Replaced by dynamic molecules and clusters of individuals and
    entities that form the basis of economic activity.
    • Mass becomes molecular (based on the individual) in all aspects of
    economic and social life.
    5. Integration/Internetworking
    • Integration molecules into clusters that network with others for the
    creation of wealth
    • Internet worked Enterprise
    • Networking from host computer
    6. Disintermediation
    • Middleman functions between producers and consumers are being
    eliminated through digital networks; e-commerce
    • Changing the single pattern.
    • For instance: Musicians and their producers won’t need recording
    companies, retail outlets, or broadcasters when their music becomes
    a database entry on the Net.
    7. Convergence
    • In the new economy the dominant economic sector is being created
    by three converging industries computing, communications and
    content that in turn provide the infrastructure for wealth creation by
    all sectors.
    8. Innovation
    • The new economy is an innovation-based economy. It is the key driver
    of economic activity and business success. Rather than traditional
    drivers of success such as access to raw materials, production, and
    cost of labor human imagination becomes the main source of value.
    9. Presumption
    • The gap between consumers and producers blurs
    • Mass production is replaced by mass customization
    • Producers must create specific product that reflect the requirements
    and tastes of individual customers.
    • Consumers are involved in the actual production process
    10. Immediacy
    • The new economy is a real-time economy.
    • Commerce becomes electronic as business transactions and
    communications occur at the speed of light.
    11. Globalization
    • The new economy is a global economy. As Peter Drucker says,
    “Knowledge knows no boundaries”.
    • There is no domestic knowledge or no international knowledge.
    • The office is no longer a place; it is a global system.
    • The technology is eliminating the “place” in workplace.
    12. Discordance
    • Unpredicted social issues such as; privacy, access, quality of work life,
    quality of life etc. are beginning to arise
    • The nature of work and the requirements of the workforce in the
    digital economy are fundamentally different
    • The new economy is bringing high-paid, high-value jobs, but there is
    little job mobility between old and new
    The ten technology shift
    1. From Analog to Digital
    2. From Traditional semi-conductor to Microprocessor Technology
    3. From Host to client / server computing
    4. From Garden Path Bandwidth to Information Gateway
    5. From Dumb Access Device to Information Application
    6. From separate data, text, voice and image to multi-media
    7. From Proprietary to open system
    8. From Dumb to Intelligent Network
    9. From Craft to Object Computing
    10.From GUI’s to VR
    The Internet Economy and its indicators
    • Layer 1: Internet Infrastructure
    • Layer 2: Internet and Network Applications Infrastructure
    • Layer 3: Internet Intermediary
    • Layer 4: Internet Commerce
    Layer 1: Internet Infrastructure
    • Companies that manufacture or provide products and services that
    make up the Internet network infrastructure includes:
    • Internet backbone providers
    • Internet service providers
    • Networking hardware and software companies
    • PC and Server manufacturers
    Layer 2: Internet and Network Applications
    Infrastructure
    • Companies that manufacture or provide products and services
    necessary to carry out all activities in the digital market includes:
    • Internet consultants
    • Web server software and other Internet applications
    • Multimedia applications
    • Web development software
    • Search engine software
    • Online training
    Layer 3: Internet Intermediary
    • Companies that increase the efficiency of electronic markets by
    facilitating the meeting and interaction of buyers and sellers via the
    World Wide Web and Internet includes:
    • Market makers in vertical industries
    • Online travel agents
    • Online brokerages
    • Content aggregators
    • Portals/Content providers
    • Internet ad brokers
    Layer 4: Internet Commerce
    • Companies that generate product and service sales to consumers or
    businesses over the Internet and World Wide Web.
    • Online product sales
    • Fee/subscription-based companies
    • Online advertising
    • Online travel providers
    E-commerce and Digital Economy

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