How COVID-19 pandemic accelerated the digital economic boom
A lot of industries around the world were negatively affected by COVID-19 pandemic. However, we could also see how the pandemic created an ideal environment for some industries to shine. Digital economic boom that we can see as of now is a perfect example to prove the above-mentioned fact.
- What is digital economy?
In simple terms, we can consider digital economy as the economic activity, which is using digital technologies and electronic communication in order to provide services and goods. The building blocks of digital economy include e-mail, internet, digital payments, digital automation, and even social media.
Traditional economy is primarily based upon cash payments, physical goods, and physical shops. When the global pandemic hit the world, people and businesses were forced to stay away from these. That’s where they ventured into the elements of digital economy, which include online selling and cashless payments.
- How did COVID-19 pandemic support the digital economic boom?
Along with COVID-19 pandemic, people were forced to go for lockdowns and work remotely. Due to the same reason, people started looking for ways to get their things done. That’s where they discovered the true potential of digital economy. Even though the concept of digital economy was there, not a lot of people went ahead and harnessed the maximum benefits out of it. In fact, there was no major reason for them to venture into it. However, COVID pandemic provided them with a reason to explore digital economy and reap maximum benefits coming on their way.
The benefits of digital economy
As digital economy is not something new to us, we can go ahead and take a look at the benefits that come along with it.
Convenience is one of the key benefits that come along with digital economy. All people who make transactions with digital economy will end up with saving time. For example, it is possible to order anything you want as of now from the internet. This would even help businesses to save money on labor expenses.
- Access to greater information
Another key benefit that we can see in digital economy is the access to greater information. Likewise, people also have access to better options. For example, it is now possible for a person to do a price comparison of two products quickly and figure out the best product available out thereto get.
Along with digital economy, we can even expect a high level of personalization. This is not something possible in the traditional economy. For example, a traditional shop would have limited storage space for holding inventory. When it comes to an online store, there is a possibility to have inventory in multiple locations. People have the freedom to order whatever they want and get delivered to the doorstep.
- Benefits the developing world
In the long run, digital economy will provide numerous benefits for the developing world. For example, we can see how new job opportunities are being created in the tech industry. This would further uplift the living standards of people.
It is just the beginning
We can call the pandemic as a reality check for all businesses, who were reluctant to go ahead with embracing digital transformation. As of now, digital transformation has become an essential aspect of businesses. No business out there can think about moving ahead without digital transformation. We can expect this trend to continue in the future as well.
To further support businesses with digital transformation, lots of innovative tools are being developed. Therefore, we can expect to receive many more benefits coming along with digital economy in the future.