Challenges of the Digital Economy

2010 ◽  
pp. 303-320
Author(s):  
Stephen M. Mutula

There are various challenges faced by SMEs in their endeavour to make more active use of the Internet and e-business. These challenges vary widely across different sectors of the economy as well as from country to country. The most commonly cited problems relate to being unable to apply the Internet to business; preferences for established business models; lack of an enabling environment (lack of ICT skills, poor network infrastructure); high costs associated with ICT equipment, networks, software, ongoing support, etc; and security and trust issues (the poor security and reliability of e-commerce systems, uncertainty of payment methods, etc) [OECD, 2004].

Author(s):  
Janusz Wielki

Currently there are many studies which deal with the impact of the Internet and Internet technology-based tools on organizations. Most of them are focused on such issues as the opportunities which have emerged with the development of the digital economy, possible new business models, establishing new kind of relations with customers, and security aspects. The impact of Internet technology-based tools on the internal work environment of organizations is an issue which is relatively rarely analyzed. Although more and more publications concerning this field are being released, they are only focused to a small degree on the challenges connected with the utilization, and, particularly, the misuse, of Internet technology-based tools in the workplace. Thus, this article is an attempt to deal with this issue in a more holistic way.


Author(s):  
Petter Gottschalk

As companies expand their use of the Internet from electronic commerce to elec-tronic business, the CIO emerges as the most important executive for performance improvements when selecting business models.


Author(s):  
Sabine Seufert

According to several forecasts given by Gartner Group or International Data Corporation, for example, e-learning as a new buzzword for Web-based education and its commercialization seems to be a growing market in the digital economy. This case study will analyze this new and dynamic e-learning market and the corresponding changes on the education market. A framework of the different education models that have already developed on the e-learning market will be introduced and their benefits and risks discussed. Several cases demonstrate the new e-learning models in action. Therefore, this contribution consists of several smaller cases that can be used for getting an overview of the e-learning market and for a discussion about e-learning as a promising e-commerce application on the Internet.


2020 ◽  
Vol 17 (2) ◽  
pp. 40-54
Author(s):  
L. P. Bakumenko ◽  
E. A. Minina

Purpose of research. The aim of the study is to conduct statistical research and assess the level of digitalization of the economy of the European Union and some non-EU countries. The focus is on assessing the level, dynamics and directions of information and communication technologies development in the European economy on the example of the international index of digital economy and society (I-DESI). The strongest and weakest countries were identified, and the impact of components (sub-indexes) of the I-DESI index on GDP was studied.Materials and methods. For this study, the digital economy and society index (DESI – Digital Economy and Society Index), which is a composite measure that studies the digital indicators of Europe, developed by DG CONNECT (the European Commission) to provide an evidence-based contribution to the assessment of digital development in the EU as a whole, is considered as an assessment of the level of digitalization. Based on this index, the international digital economy and society index (I-DESI) was developed in 2018, which reflects and expands the EU-28 digital economy and society index. Based on the sub-indexes of this index, a multidimensional classification of European countries was carried out. The main components method identifies the main factors that were used to identify their impact on the level of GDP in various clusters. The Statistica package is used for information processing and analysis.Results. This study examined the values of sub-indexes of the I-DESI index in five dimensions: communication, digital skills, citizens' use of the Internet, integration of business technologies, and digital public services. According to the hierarchical classification based on these sub-indexes, 2 groups of countries were identified. Using the k-means method, the features of each cluster are identified. Comparisons of cluster analysis results by sub-indexes were made based on data from 2016 and 2013. Using the main components method, five main factors were identified out of twenty indicators characterizing the I-DESI index and their influence on the level of GDP in various clusters was revealed. The analysis of twenty indicators of the I-DESI 2018 index, applied in the method of main components, by the directions of the index itself, the economy in the context of GDP and the social sphere (life of society) through the HDI (human development index) in various clusters was also carried out.Conclusion. According to the research, two groups of countries were identified by the level of digitalization. The first group in 2016 included twenty two countries with high indicators of digital development of the economy and society. All the countries of the first cluster are developed countries that have a significant share of services in their economy, as well as investments in high-tech products. The second cluster is represented by twenty three countries. This cluster is mainly represented by developing countries, which still have a large share of production in GDP. The level of GDP in the first cluster countries with a high I-DESI index was mainly influenced by factors that characterize fixed broadband and digital public services. Two groups of factors also influenced the GDP level of the second cluster countries. One group of factors combined variables that characterize new technologies in business, the other group – the use of the Internet by the population. The study of the development of the digital economy has allowed us to conclude that in general, the trend of rapid spread of modern technologies is developing around the world. This suggests that society in the context of the state and the individual needs to be mobile and ready to adopt new technologies in advance.


Author(s):  
Mika Hannula ◽  
Antti Lonnqvist

During the past decade, there has been a lot of research focusing on the Internets effects on productivity. One of the central themes of this research has been the productivity paradox. Productivity paradox is a phenomenon in which investments in the use of information technology have not resulted in productivity improvements. The objective of this paper is to present the conclusions that this extensive research of the past few years has arrived at concerning the Internets effects on productivity. This paper also includes a practical example which illustrates how the use of the Internet might result in very high productivity improvements by redesigning the entire business model.In the literature, the research results on the issue are conflicting. Some researchers have not found any evidence that would suggest that the use of the Internet increases productivity. However, there are several success stories that imply that the Internet could be an important tool in improving productivity or overall performance of a firm. In addition, it seems that in some cases the productivity paradox has occurred because of defective or unsuitable productivity measures, or even because of conceptual confusions.The key finding of this paper is that the use of the Internet may or may not increase productivity, depending on the way it is used. From the managerial perspective, there are also many other reasons for using the Internet, such as improved customer service or competitive pressure. However, a better customer service means better value for a customer. For a firm this usually means better productivity. To conclude, it seems evident that successful investments in internet technology should lead to better productivity and the greatest productivity improvements are attainable when the Internet is used to create entirely new business models.


2009 ◽  
pp. 298-317
Author(s):  
Silvia Novaes Zilber

The Internet provides a global network infrastructure that is shifting business models, strategies, and processes. Many authors reflect on the importance of incorporating e-business into the firm’s global strategy. This chapter deals with these issues in discussing the introduction of e-business activities by General Motors Brazil, specifically in connection with the launch of the Celta car, an entry-level car designed to be sold on the Internet. A historical examination of e-business strategy shows that many organizations have formulated excellent conceptual strategies for e-business but failed to deliver sound execution. A key to successful Internet strategies is the leadership shown by senior management. Technological demands may also conflict with the successful implementation of e-business initiatives, requiring greater interaction between the CEO and CIO. The organizational structure implemented for the launching and sales of Celta car warranted the integration between employees on the business side and in IT in the context of GM Brazil’s strategic objective of growing the market share for lower-priced cars.


Author(s):  
Лариса Лапидус ◽  
Larisa Lapidus

The monograph "Digital Economy: E-Business and E-Commerce Management" is the result of many years of scientific work of Doctor of Economics, Professor of the Faculty of Economics of Lomonosov Moscow State University Lapidus. This is the first complete and comprehensive study devoted to one of the most pressing issues of our time – Digital Economy. Themonographrevealstheessenceofthedigitaleconomy, substantiatesthechangestakingplaceinthemodelsofproduction, distribution, exchange and consumption. The objective reasons for digitalization of economy have been analyzed. The reasons of transition to the new model of joint consumption of Sharing Economy are grounded. The processes of reducing the life cycle of innovations, increasing competition for the Internet audience and a record growth of companies' capitalization are explained. The influence of the digital economy on various spheres of business is shown. Theoretical propositions and practical recommendations for managing e-business and e-commerce are presented in terms of the transformation of business models under the influence of the evolution of digital technologies. The branch peculiarities of e-business and e-commerce development in transport, on-line travel, in catering and in the market of on-line food delivery, in the digital content market in the segment of computer games, in the segment of music services (streaming services) and etc.are studied. The principles of business modeling, the features of building business models for different market segments (B2B, B2C, C2C, etc.), success factors and risks of electronic commerce are disclosed. Particular attention is paid to the world practice of successfully building effective business models of e-business and e-commerce from the birth of a business idea to market launch, embedding e-business tools in the development strategy of traditional companies. The business models Free-to-Play, Freemium-model, Print-on-Demand, Sharing Economy, Full-Crowdsourcing, Donation, etc., the basics of monetizing network communities, the structure of Facebook income, WhatsApp, LINE, success factors and risks of electronic business, features of building an electronic marketing system, managing advertising and business promotion in a digital economy are revealed. Particular attention is paid to innovative e-commerce technologies and their impact on consumer behavior, the formation of new markets and changing the nature of companies that conduct business on the Internet, taking into account the world trends and features of conducting electronic business in Russia. The possibilities of crowdsourcing and crowdfunding, Internet of things (IoT), BIG DATA, artificial intelligence based on Machine Learning technologies, virtual and augmented reality, robotization, 3D printers are considered. Features of management of an infrastructure of electronic business and electronic commerce are revealed.


2020 ◽  
Vol 19 (3) ◽  
pp. 7-22
Author(s):  
Małgorzata Kurleto

Background. Modern technologies, and the Internet in particular, play an essential role in the effective business model of every company. Due to the fact that social enterprises often take over business models from commercial enterprises, a question arises about their applicability in the use of the Internet in social business. The size of the social enterprise and having a strong leader in the organization should be taken into account. Research. The study identifies the increase of effectiveness of social enterprise business models through appropriate use of the Internet. The analysis attempts to demonstrate the relationship between business models and the social enterprise strategy, emphasizing the important role of the holistic model. The analysis is in­tended to show the importance of the business model in marketing and management. Methodology. The study is based on a literature analysis as well as in the empir­ical part on the results of the author’s research. The most important hypothesis of the study assumes that the direct effectiveness of using the Internet is positively associated with the effectiveness and success in creating social value. Findings. The results of analysis show that the impact of Internet efficiency was high in those social enterprises that used the appropriate business model. The efficiency of using the Internet is positively related to the size of the social enterprise and having a strong leader. JEL Codes: F69, M29.


2019 ◽  
Vol 11 (1) ◽  
pp. 303-330
Author(s):  
Fabio Jose Novaes de Senne

Purpose – Approaches that attribute inequalities in access and use of the Internet to structural economic factors and contemplate the reproduction of individual off-line characteristics in the digital environment are predominant in the specialized literature. Recently, however, the focus has been shifting to the differences in patterns of digital inclusion according to characteristics of particular communities or territories. Methodology/approach/design – The empirical study investigates to what extent the territory matters to explain the variability of Internet use and the existence of ICT skills. Based on a sample survey conducted in 2016, the study analyses data collected on the city of São Paulo/Brazil. Findings – The results indicate that, in addition to socioeconomic conditions, territorial aspects are important for understanding digital inequalities. Nonetheless, it suggests that the level of territorial disaggregation must be taken into consideration when measuring the use of the Internet and ICT skills. Practical implications – The study highlights the need for deeper theoretical and methodological considerations of social, institutional and regulatory factors that affect the scenario of online inequalities, including place-based effects of urban policies.


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