Billions of connections between people, businesses, devices and data are creating economic activity we never imagined possible. This is the digital economy that connects individuals and businesses through the internet and mobile technology. Want to know what the advantages of the digital economy are and how it is changing the world? Here’s the complete information!
What is the Digital Economy?
Quoting TechTarget, the digital economy is an economic activity that connects individuals, businesses, devices, data and operations through digital technology. This includes online connections and transactions that occur across various sectors and technologies.
Unlike the traditional economy, the digital economy works in a different way. Involves many digital transformations, starting from the internet of things (IoT), artificial intelligence (AI), cloud computing, virtual reality, blockchain, big data, and many others.
Examples of the Digital Economy
Since its inception, the digital economy has evolved significantly. The following are some examples of the evolution of the digital economy.
1. E-commerce
The emergence of various e-commerce, such as Amazon, Alibaba, and eBay has succeeded in changing buying and selling behavior. Changing the retail market and creating new business models.
2. Social Media
The emergence of social networks such as Facebook, Twitter, Instagram, and LinkedIn has changed the way people communicate, connect, and do business.
3. Remote Working
The advantages of the digital economy have also changed the way businesses function and manage their workforce. Now people don’t have to come to the office, they can work from anywhere and stay connected via the Zoom, Trello, Microsoft Teams applications, and so on.
4. Omnichannel Marketing
The digital economy is changing how a business serves and approaches its customers through various channels. Both in person and online allowing them to provide better service and ultimately higher sales.
5. AI and Automation
Virtual assistants, chatbots, and algorithm-based recommendations supported by AI can create consumer experiences and provide more personalized service.
7. Digital Payments
Digital payment systems, such as OVO, PayPal, and other e-wallets have changed the way people carry out financial transactions.
8. Digital Entertainment
The digital economy has apparently also changed the game in the entertainment industry. Now people don’t have to go to the cinema to watch films, they can use streaming services such as Netflix, Spotify, or YouTube which provide instant access to various selected content.
9. Telemedicine
The COVID-19 pandemic accelerated the spread of telemedicine and enabled remote medical care via digital platforms. Even now, telehealth is an important component of healthcare delivery.
10. Sharing Economy
The sharing economy has changed the way people share resources, such as cars, accommodation and financing as exemplified by Gojek, RedDoorz and OVO.
Also read: Transaction Processing System, The Secret Behind Smooth Digital Business
Advantages of the Digital Economy
The world has changed since the advantages of the digital economy have been felt by everyone. As follows, are some of the advantages of the digital economy that we can feel today.
1. Access to Information
Digitalization means you can get access to information, education and other online services 24 hours a day.
These benefits could not be felt if you lived several decades ago. You have to wait for “office hours” to open to get the information you need. However, now you just open Google and it’s all there.
2. Speed
Never imagined that connectivity and digital transformation could make everything faster and in real time.
Just imagine how much time you can save with this. In the past you still had to go to an ATM to pay for online groceries, now there are mobile banking and other online payment features that make it easier and faster.
3. Flexibility
Another advantage of the digital economy is that it gives you greater flexibility. You can work from anywhere and stay connected with your colleagues just by using existing applications.
With all the challenges, the benefits of working from anywhere are still undeniable, right?
4. Efficiency
The digital economy has also succeeded in being key in helping to simplify and streamline tedious and troublesome analog tasks.
For businesses, it provides overall efficiency, helps reduce overhead costs, generates greater economic value and increases employee productivity.
5. Globalization
Digital technology helps break down geographical boundaries. Online shopping, digital advertising and lower entry barriers allow businesses to reach global markets more cheaply and quickly.
With available goods and services, consumers can access the products or services you offer anytime and anywhere.
6. Insightful Data
Digitalization can also give you data insights that can drive innovation and growth.
More than that, accurate and complete data will help businesses increase productivity, find and resolve problems quickly, and identify new market opportunities.
7. Personalization
Digital marketing strategies allow you to personalize customer experiences, increase engagement, and in turn create higher loyalty.
8. Transparency
Thanks to the digital economy, cash transactions are becoming less common—much more are done online. Without you realizing it, this can help reduce black money and corruption, and create a new, more transparent economy.
Read also: 10 Latest Online Business Recommendations that are Trending and Promising
9. Growth
Businesses that embrace digitalization and adapt to the rapidly developing internet have proven to be more productive in generating revenue. Not only that, efficiency in buying and selling, distribution, marketing and product development is real.
And without realizing it, this has succeeded in bringing your business to growth and increasing its scalability.
10. Security
Cyber crime is still a big PR problem for every sector. However, digital technology, such as payment authentication, makes transactions safer and more convenient.
Just like Labamu, it makes you safer and more comfortable because every transaction and business administration record is stored neatly in just one application. Hurry up and download the application via GooglePlay or AppStore and feel the benefits!
