Digital Economy: How Technology Is Accelerating Business

Digital Economy: The intense use of technology and digital solutions transformed our routine habits and the strategies of companies, which had to adapt and understand how to continue operating in a scenario like this.

But what are the impacts of all this? What are we talking about when the topic is the digital economy? What does all this evolution have to tell us about our future? 

In this article, you will be able to better reflect on these and other questions and better understand the role of technology in business acceleration. Follow up!

What Is The Digital Economy?

During the pandemic or even before, you have undoubtedly already paid a bill through internet banking, made a purchase in an online store, or ordered delivery. This is the digital economy.

This reality is much more present in our lives than we realize, but it is directly related to our habits. Technology is at the heart of all this transformation, implying a restructuring in the production, distribution, sale, and use of products and services. Therefore, in the last decades, we have transitioned from the manufacturing economy to the digital economy. 

While in the last century, the large companies that dominated the economic scenario were concentrated in segments such as steel, oil, and vehicle production ( US Steel, Standard Oil Company, International Harvester ); for example, today, things are already very different.

The main highlights are companies focused on innovation and technology, which develop equipment, devices, software, platforms, and services in entertainment, communication, and IT. We’re talking powerhouses like Apple, Microsoft, Facebook, and Amazon, to name a few. The more we use and become dependent on all these tools, the more we move the digital economy.

How Does All This Affect Companies?

The pandemic meant that many companies had to accelerate the digital transformation process, as the home office was the only possible way for many organizations to keep operating.

Linked to this are all the challenges of working remotely, considering the need to work on a new management model, maintain productivity, adapt to the use of technology and its facilities, and ensure the security and availability of information, among others.

The Rise Of Startups In The Digital Economy

But even before that, we can consider the general context and observe that the structural parameters of companies have changed considerably in the scenario of the digital economy. In addition to investing heavily in digital solutions, these new business models are scalable and hybrid. 

These organizations make technological tools their primary work material, using the same volume of resources but considerably increasing their business potential. This is why startups have grown so much, especially during the pandemic. 

According to the survey, the three main fronts of public interest were for startups:

• Offer essential services;
• Facilitate adaptation to the new routine;
• They offer financial support.

There was an increased demand for essential services, such as delivery, digital account, and home office furniture. 

Likewise, the search for online education and software to support the remote study routine grew by 73%, and startups focused on retail saw an increase of at least 47% in their performance.

What Is The Future Of The Digital Economy?

Indeed, the digital economy is already consolidated. But what will become of her from now on? According to the guide released in 2015 by SAP and the MIT Technology Review, the pillars of this new model are:

• Gain customer loyalty, considering the competitive scenario and the need for increasingly personalized experiences;
• Enabling open innovation, reinventing the relationship between employers and employees, understanding the impact of digital natives on the future of work;
• Reinforce resource optimization by thinking comprehensively about how to save time within company operations and processes.

Added to these points, companies must keep up to date on trends and market possibilities, adapting the news to these pillars.

And The Challenges Of This Whole Process?

Difficulty Applying Structural Changes

The digital economy is synonymous with constant adaptation and innovation, which demands structural changes for those who want to adapt to this new context. Many companies find it challenging to make this transition because they are very attached to processes. 

Often the changes are profound and require investment in tools, employee training, and hiring specialized personnel. It is essential to open yourself up to these possibilities and take the first step.

Difficulty Incorporating Technologies

The technological trends that the digital economy can absorb are not yet being fully leveraged in many organizations. 

Artificial Intelligence, for example, is gaining increasing importance as data collection and analysis become essential and the personalization of the user experience.

Bitcoin, the cryptocurrency (or virtual currency), is also a strong trend but not yet widespread here. In Japan, it is already legalized as a payment method and is very close to the proposal of fintech, which has transformed how users deal with payments and bank transfers.

Inequality In Access To Technology

It is not always good to have younger employees in the company who are more familiar with the technology. When the owners and managers are not concerned with this, the company has more difficulty staying competitive in the market.

It is essential to spread technological knowledge to prevent teams from getting lost and productivity from falling. The digital economy aims to be inclusive and must serve different groups, an important aspect that should not be forgotten.

Also Read: Put The Customer First And Make Your Business Soar!