CHAPTER 1
INTRODUCTION TO DIGITAL ECONOMY
Learning outcome
Business in the digital economy
Information Systems & Information Technology
Business benefits and challenges in the digital
economy
What is digital economy?
An economy that is based on digital technologies,
including digital communication networks (internet,
intranet, extranet), computers, software, and other
related information technologies
Also called the Internet economy, the new
economy, or the Web economy
Major characteristics of
digital revolution
Globalization
Digital system
Speed
Information overload
Electronic markets
Digitization
New business models and process
Major characteristics of
digital revolution
Fast pace innovation
Obsolescence
Opportunities
Fraud
Cyberwars
Digital enterprises
Digital enterprise
A new business model that uses IT in a fundamental way to
accomplish one or more of three basic objectives:
• reach and engage customers more effectively
• boost employee productivity
• improve operating efficiency
It uses converged communication and computing technology
in a way that improves business processes
Example: Amazon, Google
Digital ecosystem
Consumer
s
Product
and
services
Sellers
Intermediarie
s
Electronic
marketplac
e
Support
services
Brick and mortar VS
Digital company
Brick and mortar organization
Digital organization
Selling in physical store
Selling online
Paper catalogs
Electronic catalogs
Physical marketplace
Electronic marketplace
Physical transaction, during
business hour
Online transaction, anytime and
anywhere
Paper-based billing
Electronic billing
Slow and limited marketing
Explosive viral marketing
Information technology
What is information?
• Organized collection of facts that have value
beyond the facts themselves
Information technology
• The mechanism that engenders the activity of
gathering & processing data, producing...