A Quick Walk through the Digital Economy
“Digital Economy” has grown in leaps and bounds in the past few years. Techno giants like Google, Etsy, Facebook and Amazon have created online structures that allow human beings to engage in a wide range of activities. With digital platform economy, man has found new ways of creating value, socializing and working. Indeed, firms are able to engage in healthy competition that results in lucrative profits. The ultimate effects of digital economy are both identifiable and distinct. Of course, this is not the only part of our reorganizing global economy.
What is Digital Platform Economy?
According to experts like Peter Evans and Michael Cusumano, digital economy is a multi-sided framework. It defines the way participants interact with each other. To begin with, information technology revolutionized the way services and products are sold. It played an integral role in the extreme price-based competition. By moving algorithms and solutions to the cloud, where everything can be accessed from anywhere and at any time, a new infrastructure was developed. This platform oriented market built a brand-new ecosystem for businesses. Currently, the cloud and digital platform economy is known as “Third Globalization”. Indeed, it has reconfigured the idea behind globalization completely.
Components of the Digital Economy
It is quite interesting to note that digital platform economy is diverse in structure and function. Both Facebook and Google are examples of digital platforms that offer social media networks and search results. Meanwhile, they provide platforms for other infrastructures and economies to be built. Amazon, eBay and Etsy are also platforms that support the digital economy with services and innovative marketplaces. The talk about digital platform economy remains incomplete without Uber and Airbnb. These firms use cloud-based tools and keep evolving to stay successful. On the whole, the digital platform economy is a collection of markets that work, create, capture and arrange together!
The Other Names
The digital economy has received many names. Most of these names are obtained from perceived attributes. The names depend on the transformations. Also, it depends on how the digital platforms are regulated, used and studied. Some organizations call the digital economy as the sharing- or the creative- economy. People who are not convinced of its advantageous nature call it as the gig-, 1099- or precariat- economy. Of course, the digital platform economy is a sensible and a neutral way of identifying digitally enabled tasks in social interaction, businesses and politics. If industrial revolution was all about factories, the digital platform economy is all about the cloud, information technology and web services.
- Globalie Blog Team