As this is a “Reflective Journal” please use “I” in the writing. Institution do not encourage the definition as an opening of the Reflective Journal . Institution also recommended to include a reference & some pointers from this given link (http://www.mckinsey.com/insights/strategy/the second economy) Word limit is 800-900 only.
The digital economy is becoming a more widespread concept in business globally. Arthur (2011) explains this evolution as the second economy in which digital networking forms the core business transaction operations. The term interests me because of how it has revolutionized the interactions between people and businesses through the use of digital technologies. The Internet has provided an avenue for the networking of economic activities anywhere in the world. I never thought that enterprises would one day transact between each other without the need to interact physically.
However, there are risks associated with the concept that includes cyber security, with cases of unauthorized utilization of personal and corporate information. I believe that the current efforts to curb the security issues would solve the problem ensuring the progress of the digital economy. Another downside that is being felt is the effect it has on jobs; fewer people are required to undertake responsibilities as the technology use increases. I think that this would not limit the new economy as people would find a way to adapt just as when the industrial revolution occurred.
The new economy encompasses various issues that distinguish it from the physical economy (Tapscott, 2014). Tapscott provides an evaluation of the topics of the digital economy, giving the distinguishing factors of a digital economy. I understood the themes such digitization, knowledge, virtualization, internetworking, and immediacy because of their clear explanation. However, I could not comprehend properly other topics such as disintermediation, presumption, and discordance. From the discussion, I got to know the businesses that want to remain competitive have to make changes to adapt to the new economy. The exposure to the new economy topics has made me aware of the need for….