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What is digital economy?

Can you still remember the last time you bought an item physically? When was the last time you had to visit the bank to get your bank statement? As a seller or service provider, when was the last time you went through the stress of showing your goods or end product to the seller in person? If you cannot easily recollect the last time you did any of the aforementioned, then you have been enjoying the digital economy.

With the influx of emerging technologies and globalization, traditional ways of handling businesses have been carefully merged with their digital counterparts. Most transactions now take place from the comfort of one’s home on smartphones, laptops or even desktop computers as the case may be.

Simply put, the digital economy is the umbrella term for all transactions that take place on the internet or supported by the web. Consumers are now influenced by what they see on the internet and the success or otherwise of most businesses are determined by how well you have positioned your brand on the internet.

What are the branches of the digital economy?

There are three main branches of digital economy and these are:

E-business refers to all businesses that happen online. It could be buying and selling, customer service, payment processing, business collaborations, information sharing or even recruitments. It is the umbrella body for all forms of transactions or services provided on the internet.

E-business Infrastructure is the combination of hardware, software, content, and data that are used in delivering E-business services to customers and partners.

E-commerce is the buying and selling of goods and services over the internet or electronically and the transfer of payment through the same medium. 

Merits of the digital economy

Apart from the fact that the digital economy has paved way for a rise in startups and businesses, it has also greatly promoted the use of the internet- most transactions can now be completed online. What this means is that the internet has now been accepted as something integral and this has also increased the influx of online businesses.

With the dive into the digital economy, most businesses now have an online presence and have flourished without having to physically prove their integrities. Buying, selling and the distribution of goods and services are now easily done and without stress.

Another merit of the digital economy that can be easily seen is the rise of digital goods and services and this has cut across all sectors and industries. Online downloading of movies has now replaced CDs and DVDs, transactions that would have required our presence in the banking halls and probably having to queue for hours can now be done online.

Since most transactions and payment of goods and services can now be made online, there is no need for handling cash. This has helped reduce corruption and fraud as we now operate in a more transparent economy.

Conclusion

Ease, transparency and improved standard of doing businesses seem to be the bedrock of the digital economy. With the digital economy and its branches, we can be sure of the best way possible of getting the best values. If you have not started enjoying the digital economy by either getting your business a solid online presence or start e-commerce fully, I think you should not wait any further. With daily innovations, we can be sure to enjoy the digital economy for ages to come. 

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