Digitalization is when you use digital technologies and digital innovation to change a business model and provide new revenue and value-producing opportunities.
Attribution
Sandipan Chakraborty
Student – The Indian Institute of Management – Bangalore.
Former student -UC-DAVIS.
e-Mail- sandipanchakrabarty@yahoo.co.in
The Abstract
“Role of digitalization and digital innovation “
With the rapid digitalization of work, school, and social life, stimulated by the COVID-19 pandemic, the importance of technology and innovation to achieving gender equality and inclusive development has never been clearer nor more urgent. Apps and online helplines can be a life-saving line of defense for the millions of women vulnerable to a growing shadow pandemic of violence.
Yet this is a major sticking point – around the world 3.6 billion people remain offline; with girls, women, and marginalized groups least likely to have access to technology.
The global Internet user gap between women and men has been growing rather than narrowing, standing at 17 percent globally and 43 percent in the least developed countries. Women account for 56 percent of those financially excluded from the digital economy.
Benefits Of Digitalization
Digital business, as it relates to business technology, offers companies and individuals new ways to connect, collaborate, conduct business, and build bridges between people.
An organization that adopts today’s digital technologies will enable decision-makers to have access to all the information they need all the time, from anywhere, and from any device they choose. The digital revolution is powered by technology – the internet, mobile technology, computer processing, artificial intelligence, machine learning, nanotechnology, robotics, and information processors are all tools that we can use to perform tasks in various ways.
There are many reasons why companies are making this change:
- Save Cost
- Global Reach
- Customer interaction
- Conversion
- Achieve their mission and vision
- And being at par or ahead of their competitors
Some key points are interacting with digital business because of rapid digitalization.
According to BCG &Google study, an internet user in India in 2013 was 239 million, which has increased in 2017 -430 million. And according to CISCO INDEX(2018) study, smartphone users in India is almost 360 million, the main reason is smartphones are becoming more & cheaper day by day .(2011 a smartphone cost was approx..230-260 USD, now 100-200 USD), also the data rate per GB has significantly lower, INR.2.6-INR0.36.
In India due to these social media users are increasing rapidly, according to the BCG survey, Facebook users increased by 30%, youtube by 30%, Instagram by 19%, tweeter by 19%& linked in by 15%.
We are aware of the recent COVID-19 crisis, now another type of market is on thresh hold, the ED-Tech business., where many universities, schools, private tutors are taking online classes to their students.
Now companies are spending money to promote their product in this digital ecosystem, according to Google recent study, money spent by companies for digital marketing is 4950 crore to 9500 crores in India.
On another hand due to Digital Innovation, telemedicine has become reality, now a good doctor sitting in his clinic can diagnose a remote patient, not only that, one doctor can even perform critical operations by using a remote robotic arm.
Navigating industry disruptions, transitioning to a new normal.
The Platform on Digital Economy and New Value Creation help companies leverage technology to be agile in the face of disruption and to create the new digitally enabled business models for a new normal – post-COVID, purpose-driven, sustainable and inclusive.
The unprecedented disruption by COVID-19 is accelerating the urgency for agility, adaptability, and transformation. Industry structures and business models are being disrupted – and the digitalization of the economy is being rapidly accelerated. An estimated 70% of new value created in the economy over the next decade will be based on digitally enabled platform business models. However, 47% of the world’s population remains unconnected to the internet.
Business of Data
Digitalization is yielding vast quantities of data…
Intangible assets, including data, constituted 84%, or $21 trillion, of S&P 500 company value in 2018
Most data sits in private hands – by 2025, 80% of data worldwide will reside in enterprises
There will be 30 billion connected devices by 2023, more than three times the global population and up from almost 19 billion in 2018
New opportunities are emerging…
New Value: New revenue streams, products, and services for a broader range of stakeholders, enabled by data insights and analytics
- New Business Models: New collaborative business models, enabled by ecosystem partnerships combining datasets
Richer Stakeholder Experiences: More personalized, convenient, and trustworthy experiences in lifecycles and contexts, enriched by data.
- Better Decisions: Analytics-based insights for better and contextualized decision-making, beyond improvements to operational efficiency
Digital ASEAN
ASEAN(The Association of Southeast Asian Nations (ASEAN) was formed in 1967 by Indonesia, Malaysia, the Philippines, Singapore, and Thailand to promote political and economic cooperation and regional stability.) is the fastest growing Internet market in the world. With 125,000 new users coming onto the Internet every day, the ASEAN digital economy is projected to grow significantly, adding an estimated $1 trillion to regional GDP over the next ten years. But many significant roadblocks stand in the way of realizing this potential. ASEAN has laid out important policy measures and frameworks, including the AEC Blueprint 2025, Masterplan on ASEAN Connectivity 2025, and the e-ASEAN Framework Agreement, to address these roadblocks. However, these ambitious goals will demand detailed research, visionary policy-making, and substantial buy-in from regional stakeholders.
Towards a regional digital economy
The World Economic Forum, as a neutral, impartial institution, and the International Organization for Public-Private Cooperation, is leading important initiatives at a global level to craft policies, protocols and frameworks for developing and governing a digital economy. Our aspiration is to contribute to building a digital ecosystem that is sustainable, inclusive, and trustworthy. We bring together key stakeholders to debate critical issues, catalyze ideas, and incubate projects and initiatives that can support a healthy and thriving digital world.
The “Digital ASEAN” initiative is our response to demand from the Forum’s regional partners in ASEAN, both public and private. The initiative aims to work on the issues that will underpin a regional digital economy in ASEAN so that the benefits of the Fourth Industrial Revolution can be fully unlocked and become a force for regional economic inclusion.
Scope of work
The Digital ASEAN initiative comprises a portfolio of four workstreams centered on the following focus areas: Pan-ASEAN Data Policy: shaping a common regional data policy
- ASEAN Digital Skills: building a shared commitment to training digital skills for the ASEAN workforce
- ASEAN e-Payments: building a common ASEAN e-payments framework
- ASEAN Cybersecurity: nurturing cooperation and capacity building in ASEAN cybersecurity
Digital Europe
The challenge
In the Fourth Industrial Revolution, Europe is well-positioned to grow its innovation ecosystem and must do so quickly to compete in the global digital economy. With many cities and regions already home to recognized hubs, Europe boasts an abundance of STEM talent and a proven track record on cross-border collaboration. Europe also has a long history of industrial excellence and SME activity, as well as government leadership on social issues from climate change to data privacy. However, a Pan-European approach is needed to remain competitive on the global stage and allow European innovations to scale quickly, unobstructed by the fragmentation in language and regulation inherent to the European market. Today, Europe lags behind in R&D, with only 2.07%[1] of GDP invested compared to 2.76% in the US (and 4.22% in Korea); has only 37[2] unicorns compared to 166 in the US and China’s 90, and receives only 10%[3] of global VC funding. Given its outstanding assets, the opportunity for growth is immense and potential gains from a functioning Digital Single Market are estimated at €415 billion per year.
For European innovation to flourish, collaboration is needed between founders, funders, regulators, and enablers who reflect the unique European culture and character; building on their local strengths and resources while coming together to scale and respond to global competition. A fine example is Estonia is offering E-Residency to anyone to start up a business in Estonia, without leaving your home country.
Conclusion
With the help of the rapid growth of the digital ecosystem, maybe someday, people’s choices will be decided by search engines and neuromarketing.
References-
world economic forumy