There is a sea change in business models and economic relations on a global basis due to the transformation of the digital economy. The digital revolution brought new dynamics in the marketplace that traditional industries have had time to adjust their operations and make them more compatible with the new reality of artificial intelligence, Big Data, the Internet of Things (IoT), and automation. In an attempt to get a clearer picture of what these changes have done, it is imperative to begin by defining the term economics. Economy is the research of the production, distribution and consumption.
Of services and products. In this context, the digital economy is a set of all economic activities that require the application of digital technologies and online platforms to create value and increase productive efficiency. International Monetary Fund (IMF) estimates that the digital economy constitutes over 15 per cent of the global Gross Domestic Product (GDP) and this is projected to increase by a 7 per cent increment in the next five years. The productivity of companies using the digital approaches has been recorded to go as far as 25 percent, proving how big a potential the tools bear.
What is Business Agility?
Influence of digitalization in different sectors of the economy has been immensely realized. E-commerce, which is popular in commerce, has enjoyed a 23 per cent growth in a span of one year, and Amazon and Alibaba have been dominating the market. Implementation of artificial intelligence in the sales platforms enables a personalized shopping experience, and also the shipping logistics. Digital banking and cryptocurrencies have transformed the traditional financial services in the financial sector and led to a quicker, safe and affordable financial settlement at a lower operating cost.
The number of digital payments has become exponentially large, and as per the Statista, the worldwide amount of digital transactions will surpass 10 trillion dollars by 2025. Automation and artificial intelligence are transforming the skills requirement in the work environment. According to a McKinsey report, over 30 percent of existing jobs may be replaced by automation as early as in 2030 which means that it will require workers to learn on new digital skills. Nonetheless, it is also projected that digitalization will create as well as offer millions of new opportunities in the emerging.
Why is Business Agility important?
Technologies, cybersecurity, and data analysis. Telemedicine and artificial intelligence are also changing the diseases and medicine availability and quality in the field of healthcare. Wait times have also been cut and improved with treatments as well through machine learning through the ability to make accurate assumptions with regards to diagnoses. It can be estimated that the investment in digital health by 2030 will be more than 600 billion dollars. With the emergence of technology, there has been a new profession category; a digital economist.
This expert comprising the knowledge in economic science and data science can explain the dynamics of the digital market and guide businesses during the digitalization process. According to LinkedIn information, the demand of these professionals has increased by 40 percent over the past three years. Looking even further, we can see that the digital economy will keep growing, and the innovations around the corner include the likes of quantum computing, Web3, and sophisticated automation. Failed adoption of these technologies by companies may make them lag behind in an ever competitive market.
Benefits of Business Agility to your Organisation
The use of blockchain in business models is likely to enhance transparency levels in terms of transaction and smart contract and save costs by enhancing confidence in the digital market. Further, quantum computers would transform how complex problems are solved within seconds which would make scientific discoveries and decision-making in business faster and optimized. Digital economy is a structural revolution and is changing how we transact into goods and services. Its influence in many fields, even commerce, finance, and in the labor market, makes governments, companies, and workers.
Adapt to an ever-changing world. Although digitalization is associated with massive opportunities, the challenges that should be addressed using relevant strategies are also emerging. In that regard, the digital economist and the experts of the emerging technologies will play a pivoting role to guarantee the sustainable and fair development of the new era of the world economy. Learning with digital tools and the establishment of new strategies will allow the organizations to keep up with the competition and use new sources of employment in a continuously changing economy and professionals.
Conclusion
The impact of technology on the modern economy is more than the digitalization of procedures and services. It is an impressive change and is redefining the manner in which the world markets and firms that make part of those markets are constructed and operate. In several aspects, digitalization has transformed the economy. As an instance, e-commerce has completely revolutionized the retailing business such that it provides international access to a diverse variety of goods and services. Outside of trade, technology has created innovation in different industries, manufacturing.
Financial services among others thus creating more sound and diversified economic growth. Learning to deal with these new technologies has become an important success factor to companies in the current economy. The economy and technology also are quite important towards the goal of developing more sustainably. The inventions in the field of renewable sources of energy which include solar and wind energy are also leading to a decline in the use of fossil fuel sources and curb impact on the environment. In addition to that, technology has enhanced openness and traceability automation.
Comments
Post a Comment