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An Overview on Digital Economy

The digital economy is primarily a worldwide network of various economic activities and commercial transactions using different information and communication technologies. Simply put, it is the economic activities that carry out using multiple digital technologies. The term digital economy was the first coined digital economy by Don Tapscott in 1995 in his book The Digital Economic: Promise and Peril in the Age of Networked Intelligence. On the other hand, Nicholas Negroponte explained the digital economy as a critical aspect of this era that uses bits instead of atoms.

The digital economy centred on three fundamental aspects such as digital core, digital providers and digital applications. The digital core includes all the physical technologies providers such as semiconductors & processors and software & algorithm, computer and smartphones and internet & telecom network infrastructures.

On the contrary, the digital providers are the entities that use the above technologies for offering digital products and services such as hassle-free payment process through smartphones and also e-commerce platforms for satisfying the requirements. Lastly, the digital application includes digital media, virtual banks and more.

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Significance of Digital Economy

The digital economy is a way advanced aspect, and it rightly outdoes the existing systems such as the internet. It highlights the business's opportunities and requirements for using technologies in executing various tasks and speeding up the process. The digital economy makes the business process better and more advanced than before. It is also useful in controlling the technologies for executing the tasks effectively, and the digital transformation offers a new edge to economics.

The digital economy is the buzz word currently; it includes every angle of the economy and uses necessary technologies for changing the market scenario, business models and day-to-day operations. It also includes technology, media, telecom into a single platform, the digital environment. Considering the digital economy's significance, the conventional sectors like agriculture and manufacturing also follow emerging technologies.

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