Digital economy refers to an economic system that is primarily based on digital computing technologies, though we increasingly become aware of this namely conducting enterprise thru markets based on the internet and the World Wide Web. The digital economy is also sometimes called the Internet Economy, New Economy, or Web Economy.
The term 'Digital Economy' was first mentioned in Japan by a Japanese educator and research economist in the midst about Japan's recession of the 1990s. In the west, the term accompanied and used to be coined in Don Tapscott's 1995 book The Digital Economy: Promise and Peril in the Age of Networked Intelligence. This was once among the first books to consider how the Internet would change the way we did business.
According to Thomas Mesenbourg (2001), three main components of the 'Digital Economy' concept can be identified:
E-business infrastructure (hardware, software, telecoms, networks, human capital, etc.).
E-business (how business is conducted, any process that an organization conducts over the computer-mediated networks).
E-commerce (transfer of goods, for example when a book is sold online).
But, as Bill Imlah comments, new applications are blurring these boundaries and adding complexity; for example, consider social media and Internet search.
In the last decade of the 20th century. Nicholas Negroponte (1995) used a metaphor of shifting from processing atoms to processing bits. "The problem is simple. When information is embodied in atoms, there is a need for all sorts of industrial-age means and huge corporations for delivery. But suddenly, when the focus shifts to bits, the traditional big guys are no longer needed. Do-it-yourself publishing on the Internet makes sense. It does not for a paper copy."
In this new economy, digital networking and communication infrastructures provide a global platform over which people and organizations devise strategies, interact, communicate, collaborate and search for information. More recently, Digital Economy has been defined as the branch of economics studying zero marginal cost intangible goods over the Net.
The Digital Economy is worth three trillion dollars today. This is about 30% of the S&P 500, six times the U.S. annual trade deficit or more than the GDP of the United Kingdom. What is impressive is the fact that this entire value has been generated in the past 20 years since the launch of the Internet.
It is widely accepted that the growth of the digital economy has a widespread impact on the whole economy. Various attempts at categorizing the size of the impact on traditional sectors have been made.
The Boston Consulting Group discussed “four waves of change sweeping over consumer goods and retail”, for instance.
In 2012, Deloitte ranked six industry sectors as having a “short fuse” and to experience a "big bang” as a result of the digital economy.
Telstra, a leading Australian telecommunications provider, describes how competition will become more global and more intense as a result of the digital economy.
Digital Economy of Bangladesh
Access to information in Bangladesh or a2i is a UNDP and USAID-supported Access to Information Programme ran from the Prime Minister’s Office of Bangladesh. This program is mainly helping the growth of the Digital Economy in Bangladesh.
Policy Reform Made Digital Economy of Bangladesh
1. Out Sourcing Policy
2. ICT Policy
3. Right to Information Act
4. National Broadband Policy
5. Cyber Security Policy
6. National Telecom Policy
7. Rural Connectivity Policy Guideline
8. National Science and Technology Policy
9. ICT Act 2013 (amended)
10. Secretariat Instructions 2014 (amended)
11. Proactive Information Disclosure Guidelines 2014
12. Mobile Keypad Standardization Policy
13. Guidelines for Utility Bill Payment
14. E-Krishi Policy
15. National e-Governance Architecture
16. Guidelines for Mobile Financial Services (MFS) for the Bank
17. Innovation Team Gazette
18. National Portal management gazette
19. Mobile Banking Policy Guideline
Digital Centres across the country
1. Reaching the Unreached through an Innovative PPP Model Service at the doorsteps.
2. Fulfill the need for millions of underserved citizens.
3. Reduce Time, Cost and Visits.
4. Endure considerable hassle.
5. 5,286 DCs Providing 116 Public and Private Services.
6. 6 Million+ Services access Per Month.
7. USD 35 Million+ Transaction through Agent Banking.
E-Filing in the Government Offices
1. Increasing Efficiency in Public Service Delivery
2. Ensuring convenience to citizens
3. Faster movement of files and documents of government offices
4. Improving service delivery
5. Ensuring accountability
6. The active user at all the Government Offices
7. Disposed 916K+ Files
8. 744K+ Beneficiaries of E-Filing
9. 19K+ offices by 2018
National Portal - Gateway of all Public Information and E-Services
1. 43 K Government Offices in a Single Platform
2. 90 M hit/Month
3. All Government information in one portal
4. 25K+ web link Interconnected
5. Strong Implementation of Rights to Information Act.
1. Ensure Services in the Rural Areas
2. 482 Hospitals are connected in Mobile health Services and Advice with free of charge
3. 24-hour health helpline. Average service has taken daily by 5500+ persons
4. 68 Hospitals under the Health Ministry
5. 30 Union Digital Centers through Skype
1. Reducing ‘Digital and Educational Divide'.
2. Multimedia Classrooms in 70% of rural areas
3. 35K+ Multimedia Classrooms
4. 150K+ Teachers are trained for Multimedia Classrooms
1. Setting the Foundation for 21st Century Learning
2. Communication+ Collaboration+ Co-creation hub 170,000+ teachers (72% rural) 125,000+ content (60% content by rural teachers)
1. "MuktoPaath" is an E-Learning Platform for Skills Development
2. Teacher training (200,000 teachers by 2018) - 70% rural
3. Youth development (60% rural youth)
4. Expat training (100% rural migrants)
Digital Financial Inclusion
1. Creating Access to Financial Services at the Doorsteps
2. Agent Banking Introduce 1,843 Digital Centres
3. Opened Bank Account 78,780
4. Total transactions USD 24+ Million
5. 13,000 ATM booths of 26 Banks are Connected
10. Mobile Financial Services
11. Agent Banking
12. Social Safety Net allowances
The Sustainable Development Goals (SDG) Tracker
1. Bangladesh Development Mirror
a) Data repository
b) Data visualization
d) Progress tracking
f) Policy decision
2. Public representatives
5. Government Agencies
6. Development partners
8. International organizations
10. Private Sectors
Potential TCV Reduction in G2P through
1. Old age allowance
2. Widow, Deserted and Destitute Women allowance
3. Financially Insolvent Disabled
4. Poor Lactating Mothers
5. Honorarium for Freedom Fighters
6. Honorarium & Medical Allowances for Injured Freedom Fighters
TCV (Time, Cost and Visit)
1. Simple Measurement in Public Service Innovation
2. 70 TCV (Time, Cost and Visit) Studies Show Significant TCV Reduction by Mostly Underserved Communities
3. Saved in 2016
a. 1 Billion Man-days
b. US$ 1.51 Billion
c. 400 Million visit
4. Projection for 2021
a. 8 Billion Man-days
b. US$ 11.51 Billion
c. 3 Billion Visit
Dream Trajectory for Bangladesh
1. VISION 2021-Middle Income Country
2. SDGs 2030 -Development Junction
3. 2041 DEVELOPED COUNTRY-Prosperous Nation
4. 2071 100 YEARS of INDEPENDENCE- DEPENDS on our ability to translate the vision
5. 2100 DELTA PLAN- Safe Delta
Value of Digital Economy in the World
1. The digital economy is currently valued at $12.9 trillion, 17.1% of global GDP.
2. The global digital economy has been growing at a rate 2.5 times faster than global GDP over the past 15 years.
**Global Connectivity Index 2018 HUAWEI
Response for Digital Economy
Given its expected broad impact, traditional firms are actively assessing how to respond to the changes brought about by the digital economy. For corporations, the timing of their response is of the essence. Banks are trying to innovate and use digital tools to improve their traditional business.
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