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BSc Business Management > 5000 - The Digital Economy - Lecture 2 > Flashcards

5000 - The Digital Economy - Lecture 2 Flashcards

1
Q

Three basic decisions made by all economies

A

What to produce
How to produce it
Who will consume it

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2
Q

Four main types of economic systems

A

Traditional
Command
Mixed
Market

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3
Q

What type of economic system does most of the West adhere to?

A

Mixed System - Some private, some public

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4
Q

What is the definition of an economy?

A

A system of making and trading things of value, divided into goods and services through ab assumed medium of exchange like the finance system

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5
Q

What is the definition of the digital economy?

A

All the economic processes and activities that

are based on digital technologies. It acts differently from the internet economy which is based on internet connectivity

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6
Q

Don Tapscott 12 Characteristics of the digital economy

A
  • Knowledge
  • Digitization
  • Virtualization
  • Molecularization
  • Internet Working
  • Disintermediation
  • Convergence
  • Innovation
  • Prosumption
  • Immediacy
  • Globalization
  • Discordance
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7
Q

Examples of sectors in the Digital Economy

A
  • Data Centres
  • Websites
  • E-sales - ITunes
  • E-Banking
  • E-Learning
  • Working from home
  • e-payments
  • Automation and AI
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8
Q

Pros of the Digital Economy

A
  • More info and choice
  • Saves time
  • Reduced costs for business
  • Greater Personalisation
  • Lower barriers to entry
  • Greater Flexibility in work
  • Benefits for developing world
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9
Q

Cons of the Digital Economy

A
  • Tech giants gain monopoly powers
  • Less Community
  • Addictive nature of tech
  • Privacy concerns
  • Bypassing of labour laws
  • Disrupts traditional economy and jobs
  • Potential environmental cost
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10
Q

The Sharing Economy Definition

A

The sharing economy is a socio-economic system built around the sharing of resources. Involves a way of purchasing goods and services that differs from traditional business model of companies

A company owns the customer-supply interface and mechanism. E.g Uber owns no cars but is the biggest taxi provider, AirBNB is the biggest accommodation provider but owns no property

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11
Q

Examples of the Sharing Economy

A
  • Peer-to-Peer Lending
  • Crowdfunding
  • Renting
  • Ridesharing
  • Reselling and trading
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12
Q

Economic Sectorization example

A

Sectorization is based on economic objectives, functions and behaviour of entities

An example is the private, public and voluntary sector

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13
Q

Private Sector

A

Run by individuals and companies for profit

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14
Q

Public Sector

A

Run by the government completely or in part

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15
Q

Voluntary Sector

A

Charities and other non-profit organizations

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16
Q

Primary Sector

A

Revolves around the extraction of raw materials or natural resources from the land. So Farmers, Oil Companies, Mining Companies etc

17
Q

Secondary Sector

A

Revolves around manufacturing, this involves taking from the primary sector and making new products. So, food production, building and so on

18
Q

Tertiary Sector

A

Revolves around providing a service . So, banks, internet providers, cinemas etc

19
Q

Quaternary Sector

A

Revolves around providing information services such as computing and IT

20
Q

The Service Sector

A

The largest sector in the UK, contributing to over 80% of our GDP. Services include retail, banks, hotels, real estate, media, electric and so on

21
Q

The Retail Sector

A

The sale of goods to the public for use of consumption rather than resale. Made up of shops, department stores, supermarkets, markets, internet retailers and so on

22
Q

The Grocery Sector

A

A sub section of the retail sector. Dominated by the likes of ASDA, Tesco and so on. Estimated to be worth around 190 billion pounds in trade

23
Q

The Finance Sector

A

Divided into Banking, Accountancy and Finance, Financial Planning, Insurance, Investments and Pensions and Real estate. Involves companies such as PriceWaterhouseCoopers (PWC) and others. Worth about 132 billion. And London is the financial hub of Europe

24
Q

Digital Economy Terminology - Don Tapscott

A
  1. Knowledge
  2. Digitalization
  3. Virtualization
  4. Molecularization
  5. Integration / Internet Working
  6. Disintermediation
  7. Convergence
  8. Innovation
  9. Presumption
  10. Immediacy
  11. Globalization
  12. Discordance
25
Q

Digital Economy Terminology - Richard Adam’s Seven Pillar of the DE

A
  1. The Second Economy
  2. New Economics of Money
  3. The Social Economy
  4. The Mobile Economy
  5. Big Data and Analytics
  6. Security
  7. Architecture
26
Q

Pillar 1: The Second Economy

A

Machine to Machine tech that allows both wireless and wired systems to communicate with to other devices of the same ability. Computer intensive and largely hidden to organizations and customers

27
Q

Pillar 2: New Economics of Money

A

New ways to pay such as crypto, crowdfunding, loyalty points, digital wallets and so on which are competing with traditional methods

28
Q

Pillar 3: The Social Economy

A

Taking advantage of the power of social technologies - any tech which facilitates social interactions and is enabled by communication capability such as internet and mobile devices. Examples include social media, zoom

29
Q

Pillar 4: The Mobile Economy

A

Businesses that can operate by taking transaction over smart phones and similar devices.

30
Q

Pillar 5: Big Data / Big Analytics

A

Kind of self explanatory - People Who store and or sell data

31
Q

Pillar 7: Architecture

A

A combination of social, mobile, analytics and cloud should be the aim of every company - How the business structures it digital capabilities

32
Q

Pillar 6: Security/IPR

A

Need to consider digital security against the likes of ransomware, data leaks and so on

BSc Business Management (37 decks)

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