The Digital Economy

Question 1

What is the Digital economy?

Answer 1

An economy based on digital technologies including communication networks, computers, software, and other related technologies

Question 2

What does digital economy provide?

Answer 2

The Digital economy provides a global platform where people and businesses interact, communication, collaboration and search for information?

Question 3

How has the Digital economy impacted the way business is done?

Answer 3

It allows customers to act as co-producers of their own services and has led to an increase in retailers with no physical world presence

Question 4

How has traditional ways of doing business been affected?

Answer 4

A huge number of digitise above products have increased in popularity examples of this would be; books, music CDs, games.
Consumers and businesses conducting financial transactions digitally. Examples include; tap to pay, pay with your phone.
Consumers using mobile devices as booking tills or digital keys for access to rooms, etc.

Question 5

What are the major characteristics of digital economy?

Answer 5

Globalisation
Fraud
Digital systems
Speed
Information overload
Cashless transactions
Markets
Digitisation
Innovation
Internet of things
Obsolescence
Wars

Question 6

Explain Globalisation

Answer 6

Means that we can communicate to sell and Compete/collaborate easily with people all over the world. Hotel chains can exchange data between sites across the globe easily.

Question 7

Explain Fraud

Answer 7

Criminals are rife on the Internet and use many innovative schemes to defraud people from locking data to stealing ID’s

Question 8

Explain digital systems

Answer 8

From TV to telephones from signage to say and systems, many systems are now being converted to digital systems to increase user friendliness and flexibility. Staff and guests are now able to change and customise offerings and services instantly

Question 9

Explain Speed

Answer 9

And move to real-time transaction thanks to digitisation of documents, products and services. Many business Process can now be delivered much quicker/more efficiently. E.g. Downloading music/TV series, booking hotel room and receiving confirmation of the booking/payment

Question 10

Explain information overload?

Answer 10

The amount of information now being generated is accelerating constantly. So much so that we now require intelligent search tools to help us find what we are looking for. Imagine the volume of data generated in a hotel every day, as every digital interaction is recorded, from POS systems to online reservations everything in between

Question 11

Explain cashless transactions

Answer 11

The use of electronic digital payment devices are increasing from contactless cards, to mobile devices for micro payments

Question 12

Explain markets

Answer 12

Markets are moving online, look at tourism, and travel products. Expedia, hotels best rate guarantee, event ticketing

Question 13

Explain digitisation

Answer 13

Movies, TV, books, pictures, music and much more I digitised for first and inexpensive distribution and convenient consumption

Question 14

Explain innovation

Answer 14

Digital and Internet-based innovations are continuing at pace. VR, wearable tech, driverless cars, drones, TV, to booking rooms, two checking in and out of hotels, etc.

Question 15

Explain Internet of things

Answer 15

Physical objects are being embedded with electronics, software, sensors and network connectivity allowing them to exchange data and work independently

Question 16

Explain obsolescence

Answer 16

The fast pace of innovation creates a high rate of obsolescence in technology. Laptops, tablets, mobile phones, etc

Question 17

Explain Wars

Answer 17

Conventional wars are moving to cyber wars. The US elections, hacking, denial of service attacks, etc.