The development of the Digital economy Essay Example | Topics and Well Written Essays - 3750 words

The development of the Digital economy - Essay Example These are very different from each other and are different from the earlier end products of industrialisation. The digital economy comprising of information, computing, and communications - is now the primary driver of economic growth and social changes. It has reached a stage where it is no longer possible except to adapt and enhance oneself to the digital economy to avoid being left behind. A better understanding of these adaptations help in more efficient decision making that translates into better solutions in research, products, or services. The health of any economy has gone from the dependence on farming in the agrarian age to the industrial end products in the industrial age to the current digital or information age. The time period of growth seems to be accelerated and considering that the digital age only began with the invention of the ENIAC computer about less than four decades ago, the world as seem to have progressed in leaps and bounds. Then, Tim Berners-Lee and some others joined to pioneer another great step: the Internet. The Internet has become a critical component of the digital economy and the most influential. The impact of its power cannot be estimated. Internet commerce, which is arguably the most significant component of electronic commerce ("e-commerce"), includes consumer retail and business-to-business transactions; online financial services; media; infrastructure; and consumer and business Internet access services. Recent industry research shows that over one million people in the UK became Internet users for the first time during the third quarter of 1998. Fifteen per cent of the adult population in this country have now visited the World Wide Web. This puts it some two years behind the US, where web users now represent 37 per cent of the adult population, but ahead of Germany (ten per cent) and France (eight per cent). The Issues Economic Implications Every economy is now affected by the emergence of the digital economy. It has changed all the aspects of business, social and cultural entities. The Internet, a main component of the digital age has brought about significant changes in the way business is conducted and the way people work and live. Lowered costs and increased productivity have heralded rethinking strategies in all aspects of the society. Dependency and undue influences of the digital economy has given rise to speculations of how far out these can go without backfiring on the basic aspects of life. Globally, it has seemed to widen the gap between the developed and developing nations while at the internally it has seemed to widen the gap between the rich and the poor due to the accessibility of the infrastructure. Changes in Organizations Information technology has brought with it changes in the organisational performances, policies and people. Information technology has the potential to change the structure and performance of organizations and human enterprise. It has enabled companies to go global with ease and hence forth opened up the borders of the workplace. While it has created a new dimension of