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How has the digital economy affected traditional industries?

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The digital economy means the economic activity that results from billions of daily online connections among people, businesses, devices, data, and processes. In recent years, massive growth has been witnessed in the digital economy with advancements in technology and increased connectivity.

The development of their digital economies has been approached by different countries in different ways. In comparison to all the countries, the United States is a well-developed digital economy with a large number of technology companies and a highly skilled workforce.

One of the key factors in the digital economy is e-commerce growth. Significant growth is observed in the online commerce business conducted in the developed world. It led to the growth of companies such as Amazon, Alibaba, and Tencent.

Another important part of the digital economy is digital service growth such as streaming media, ride-sharing, and online marketplaces. Companies like Netflix and Uber are the major service provider of such applications disrupting traditional industries and having a significant impact on the economy.

Another growth in the digital industries is in the video game industry, mobile apps, and software development. They are playing an important role to drive economic growth in many countries.

Even digital platforms such as social media impact positively in the digital economy. The platforms are replacing the traditional way of communicating and consuming information personal as well as conducting different sorts of business. It is saving time as well as makes communication faster than before.

Countries like the United States, Japan, and South Korea with well-developed digital infrastructure and highly skilled workforces led them become world leaders in the technology industries. The culture is encouraging innovation and entrepreneurship.

However, developing countries are witnessing less advancement in the digital economy due to limited access to technology, lack of investment, less skilled workforce, and lack of support for technology startups.

But the countries are working hard by investing more in digital infrastructures such as building out a network of high-speed internet and mobile connectivity. Also, the countries are working to improve the skills of the such workforce by encouraging them to enter into the technology industry.

Some developing countries are focusing on building digital ecosystems for technology startups to attract foreign investment. In the global economy, the digital economy is playing a rapid growth and having a significant growth impact on the changing field.

Source: Deloitte, santander

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