BIS I - Digital Economy

Question 1

Characteristics of the digital economy:

Answer 1

1) Convergence
2) Digitization
3) Discordance
4) Disintermediation
5) Globalization
6) Immediacy
7) Innovation
8) Integration/internetworking
9) Knowledge
10) Molecularization
11) Prosumption
12) Virtualization

Question 2

Knowledge

Answer 2

i.e. access to an application of information to provide multiple options/possibilities to the consumer

Question 3

Digitization

Answer 3

all information is presented in binary (0,1) form an is thus amenable to computer manipulation

Question 4

Virtualization

Answer 4

physical and tangible things become virtual, represented by scenarios created by the high-speed manipulation of digital information

Question 5

Molecularization

Answer 5

traditional corporate hierarchies are becoming fragmented and fluid, with small flexible short-term teams replacing rigid hierarchical structures

Question 6

Integration/Networking

Answer 6

the new economy is a networked economy, integrating molecules into clusters that network with others for the creation of wealth

Question 7

Disintermediation

Answer 7

middleman functions between producer and consumers and consumers are being eliminated – “middle businesses, functions and people need to move up the food chain to create new value”

Question 8

Convergence

Answer 8

dominant economic sector is created by three converging industries: communications, computing and content-producing industries, that provide the infrastructure for wealth creation by all sectors

Question 9

Innovation

Answer 9

the new economy is based on innovation, using information technology to develop new products and services

Question 10

Prosumption

Answer 10

IT allows consumers to become closely involved in the production process, designing their own products and services tailored specifically to their needs

Question 11

Immediacy

Answer 11

the time lapse between ordering of a product and its creation and delivery is shrinking dramatically, again as a result of digital IT

Question 12

Globalization

Answer 12

inevitably, with the revolutionary innovations in communications technology, the new economy is a global economy

Question 13

Discordance

Answer 13

the gap between the technologically literate “haves” and “have nots” who do not have access to technology, is growing and may cause significant problems to society in future.