The Digital Economy.
The digital economy is an economy that operates on digital technologies like electronic goods and services. The members of this economy are more informed and communicate better because of the electronic business traded through electronic commerce. (Turban & Volonino, 2010)
The digital economy is filled with digital goods and services like:
- News and Information
- Audios like lectures, speeches
- Graphics like calendars, photographs
- Financial instruments like securities, checks
- Government services like licenses, benefits
- Business-value-creation processes and transaction
- Interactive entertainment
- Social networks
Information technology has a major part to play in the digital economy because interactions and transactions are done through Web and Internet technologies. The platform provided for communication and networking in this economy is wired and wireless providing its members ways to strategize, interact, collaborate, communicate and search for information. (Turban & Volonino, 2010)
The digital economy provides several advantages over the traditional economy. Some of which are:
- Transactions are carried out faster because things are done in the real-time.
- For audio, video and books, they are being distributed in a fast and inexpensive way.
- Since everything is done via the Web and Internet in the digital economy, it becomes a global economy where interaction and communication can be done from any part of the world. (Turban & Volonino, 2010)
Turban, E & Volonino, L (2010). Information Technology for Management: Transforming Organizations in the Digital Economy. 7th ed. Asia: Wiley. p4-5.