Digital Economy
Digital economy can be thought of as the economy that is based on the internet and digital technologies.
- E-commerce: Digital enabling of commercial transactions
Examples: Online shopping, mobile banking etc. - E-business: The use of the internet to conduct business activities, such as marketing, sales, and customer service.
Examples: Online marketing, online sales, online customer service etc.
Key characteristics
Data integration to the product process
The traditional production process is as followed:
Design → Raw Material → Manufacturing → Finished Product → Consumer
We can monetize data that we collect from the consumers by analyzing it and apply in the processes during production.
Digital products
Intangible goods that exist in digital forms. Examples: Software, music, databases, platforms & services etc.
A digital good has the following distinctive characteristics:
- Zero marginal cost: There is no cost to produce additional units of a digital good.
- Quality uncertainty: Consumers cannot determine the value of digital goods before using it.
Some digital goods also increase in value the more people use it, known as network goods.
- Homogeneous: Users perform the same action. (e.g. Whatsapp)
- Two-side: Distinct user groups (e.g. Carousell)
The types of goods are usually platforms, and it's the role of the platform owner to design and manage the playfield.