Skilling for the Digital Economy: A Role-Based Approach

Safalta Published by: Ishika Kumar Updated Tue, 24 May 2022 03:51 AM IST


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Business competition and economic productivity are impacted as technology advances and becomes more deeply integrated into society. The internet has completely transformed the current world economy. In Europe alone, the internet contributes about 5% of GDP and supports roughly 7.5 million employees. Between 2001 and 2010, the number of European households using digital finance services quadrupled, indicating that the development in online trade has been matched by the growth in online assets held by consumers.
However, the digital economy is not without its difficulties. Although productivity and consumer surplus have increased in OECD countries, the internet has exacerbated income inequality between developed and developing economies.

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Furthermore, there are serious questions about whether technology is displacing labour faster than it can be replaced.
In recent years, the internet economy has expanded tremendously. It has, however, not been without its flaws. Income gaps between rich and developing countries are also influenced by the digital economy. Furthermore, there are concerns about whether it may displace labour faster than it would provide new job opportunities.

1. Role of Digital Economy in Developed Countries-

The digital economy encompasses more than just a movement in consumer spending to online services; the internet has altered how governments communicate with their citizens, businesses function, and consumers buy items. It has also had a substantial impact on economic productivity in a variety of areas, including industry and government administration. Firms have been able to be more flexible in terms of location selection, capital investment, product design, and quality control thanks to digitally connected business models. As a result, highly digital industries like the automotive industry have become more spread geographically.

2. Role of Digital Economy Developing Countries-

The expansion of the digital economy has benefited developing countries as well. Lower-income consumers around the world, particularly in China, Mexico, and Pakistan, have shown a strong interest in digital finance services. People in remote places can now access online education and expand their employment opportunities through virtual work thanks to the advent of mobile broadband networks. In India, for example, approximately 1 million women work as online employees, earning up to ten times more than they would if they didn't have access to the internet. Many poor countries have repurposed existing technologies to generate new mobile-based commercial solutions. M-Pesa, for example, is a popular technology that allows Africans to send money by text message.

3. Role of Digital Economy in the Workforce-

New technologies open doors for developing economies, but they also displace jobs in wealthier countries. Machine learning advances have enabled businesses to automate traditionally human-intensive processes. Furthermore, lower search and information gathering costs have changed traditional customer behaviour patterns. According to a study conducted by Carl Benedikt Frey and Michael Osborne of Oxford University, 47 percent of jobs in the United States are threatened by automation, which will have far-reaching ramifications for global labour markets. Furthermore, this tendency extends beyond regular duties, with professions like accounting and law becoming obsolete as a result of technological advancements.
Despite the immediate job losses that can be predicted, technology disruption is also creating new roles. Digital platforms like Etsy and Kickstarter, for example, have made it possible for artists to sell their work online. These programmes allow users to retain control over their creative product while still generating cash. According to a recent Accenture analysis, internet-facilitated business-to-business prospects across international borders will continue to rise tremendously in the coming years, increasing need for digitally savvy individuals.

4. What are the Benefits of the Digital Economy?-

Over the last two decades, the world has witnessed a digital revolution and unprecedented interconnectedness. The shift from analogue to digital technology has resulted in the creation of a worldwide market for goods, services, and ideas.
Education, health care, democratic reform, deforestation avoidance, and biodiversity protection, to name a few, have all benefited from this innovation, in addition to technological achievements and economic prosperity.
The economy appears to be one of the areas where digitalization has had the greatest impact. "The speed of change in the global economy has never been as swift as it is today, partly due to accelerating digitalization," according to a 2015 research by Thomson Reuters.
In its 2016 study on the future of financial infrastructure, the World Economic Forum declared that "a revolution is happening, driven by a convergence of technologies across the whole financial services sector," and that this transformation will be a growth accelerator. With the introduction of e-commerce systems such as Apple Pay and Google Wallet, as well as activities such as crowdfunding, banking looks to have been the most affected by digitization of all sectors.

What skills are needed for the digital economy?

These abilities – critical thinking, creativity, communication, analytical skills, teamwork, and connection building – appear on many lists of desired "soft talents" and are still in great demand in today's digitally intensive economy.

What is digital Skilling?

From simple internet browsing and emailing to specialised programming and development, digital skills are widely defined as the skills required to "use digital devices, communication apps, and networks to obtain and manage information."

What are the 4 things which help to succeed in the digital economy?

We're focusing on four primary issues for an upcoming MIT symposium on the subject: customer expectations, product advancements, collaborative innovations, and organisational structures.

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