Pratt Share this item with your network: The digital economy is the worldwide network of economic activities, commercial transactions and professional interactions that are enabled by information and communications technologies ICT. It can be succinctly summed up as the economy based on digital technologies. Don Tapscott first coined the term digital economy in his best-selling book The Digital Economy:
Definition[ edit ] The term 'Digital Economy' was first mentioned in Japan by a Japanese professor and research economist in the midst of Japan's recession of the s. Promise and Peril in the Age of Networked Intelligence. But, as Bill Imlah  comments, new applications are blurring these boundaries and adding complexity; for example, consider social media and Internet search.
In the last decade of the 20th century. Nicholas Negroponte used a metaphor of shifting from processing atoms to processing bits.
When information is embodied in atoms, there is a need for all sorts of industrial-age means and huge corporations for delivery. But suddenly, when the focus shifts to bits, the traditional big guys are no longer needed.
Do-it-yourself publishing on the Internet makes sense. It does not for a paper copy. More recently,  Digital Economy has been defined as the branch of economics studying zero marginal cost intangible goods over the Net.
Impact[ edit ] The Digital Economy is worth three trillion dollars today. What is impressive is the fact that this entire value has been generated in the past 20 years since the launch of the Internet.
It is widely accepted that the growth of the digital economy has widespread impact on the whole economy. Various attempts at categorizing the size of the impact on traditional sectors have been made. A server room at a data center can use, on average, enough electricity to powerhomes.Digital economy refers to an economy that is based on digital computing technologies, e-business (how business is conducted, any process that an organization conducts over computer-mediated networks), e-commerce (transfer of goods, for example when a book is sold online).
The digital economy endows data specific features and characteristics which might not be common in the industrial era.
Compared with the traditional physical resources, data resources, in our opinion, have the following seven characteristics from an economics perspective. MEASURING THE DIGITAL ECONOMY Thomas L. Mesenbourg Assistant Director for Economic Programs the Census Bureau developed definitions and concepts to describe the digital economy.
Our starting budget (October September ). The key characteristics of our e-business measurement strategy are described below.
E-business includes e-commerce but also covers internal processes such as production, inventory management, product development, risk management, finance, . Describe The Characteristics Of A Digital Firm. Angel Terry The Meaning of Digital Firm Business Communications The meaning of Digital Firm is nearly all of the organization’s significant business relationships with customers, suppliers, and employees are digitally enabled and mediated” (Laudon, p.
|The salient features of business are given below: Business makes goods more useful to satisfy human wants.|
|A more complete definition is: E-commerce is the use of electronic communications and digital information processing technology in business transactions to create, transform, and redefine relationships for value creation between or among organizations, and between organizations and individuals.|
This is the meaning of digital firm in which it was given in our text book. Describe the characteristics of the digital economy and e-business.
Identify the major pressures in the business environment and describe the major organizational responses to them.
Describe the role of information technology in supporting the functional areas, public services and specific industries.