The Economic Crisis Through Digital Economy Information Technology Essay

Already a circulated topic which puts thoughts investors and businessmen, the economic crisis seems to be invincible. The solving and minimizing the effects exerted at the microeconomic and macroeconomic level are still a challenge for economists, both globally and nationally. In fact, today we are at the confluence of two crises: the first (short term) but there is a second economic crisis in the long term, which is about the changing business climate.

Following studies carried out internationally, it was concluded that these two crises have in common that one possible solution is to develop the digital economy. Digital economy seen as a new economy is the effect of coexistence of computer systems, Internet, telecommunications, electronics and their sustainable development. The trend toward digital systems integrated values pose a new life cycle of e-business. This new model of economy is characterized by several features quite different from traditional economy.

First, new economy presents new market and business models (e-business, E-commerce, e-banking, etc.) achieved through the intranet and the Internet, bringing a radical change in their efficiency, to reduce the cost. In recent years, electronic commerce (e-commerce) has emerged as the concrete form of realization of business, also involving the definition of sui generis markets scientific knowledge, driven by an increasingly developing research and development sector.

Second highlight the application needs of consumers and their ever more active involvement in design, implementation and use of goods and services from early stage research and development. In the light of these realities, the new economy is non-interactive, participatory, thus achieving a more rigorous interaction between supply and demand, in time and space. Thus the consumer is without the knowledge, the main innovation pawn. It is he who offers ideas for innovational producer, who must maintain and expand markets, increase comfort and provide sustainable economic development.

Third, we talk about competition and cooperation, two inseparable sides of the digital economy (taking account of the interaction between supply and demand, above). Forms of manifestation of competition between producers suffer due to temper consumer transformation, how it perceives and chooses a product or service name of the manufacturer at the expense, making vital cooperation between producers. All these lead to the creation of virtual organizations as being achieved exploitation of business opportunities by sharing resources (skills, cost and market access).

Lastly, the most delicate of the economy, that is on a power greater than design work. But as in anything less pleasant there a good side, we see that the advantage of creating new jobs that require highly skilled.

Read also  What Are System Of Systems Projects Information Technology Essay

Digital economy is regarded as superior to the wider economy. This is given its economic effects, namely reducing resource consumption, increased innovation and entrepreneurial spirit, increase productivity, speed change production and economic phenomena and processes, increasing value added, etc. The term digital economy refers to the transformation produced in the economic activities resulting from the use of information and communication technology (ICT), which provides access, information processing and storage in a low-cost time low.

Antithetical on the old economy growth was driven by mechanization of production, particularly manufacturing and agriculture, and the new economy, a promoter of development is generally digitization (using information technology to produce and distribute goods and services) and in particular , using the Internet and other information technologies (smart cards, voice-based computing, wireless, databases, telecommunications and expert systems) in the service sector, which encompasses 80% of jobs. Information technology revolution has transformed virtually all industries and is the main developer of economic efficiency and productivity growth, living standards, the customization of products and services to meet individual needs and desires. So on this evolving digital economy is developing an increasingly see knowledge as raw material of economic activity currently living in a knowledge revolution. This revolution means a fundamental change and transformation processes based economy almost exclusively on natural resources in the economy based mainly on knowledge. On the basis of this revolution is the decisive role that the knowledge they have acquired in recent decades, increased economic importance of information technology, business processes, human capital, capabilities and organization skills – knowledge related to organic factors.

The exponential growth of mobile communications and the number of Internet users, the contribution of the ICT sector (ICT) to economic growth and job creation, restructuring of companies and business in general to better benefit from new technologies, accelerated development of electronic commerce and the essence of the digital economy – supporting the transition to a knowledge-based society. It offers the most promising prospects for overcoming the crisis and stop efecto social exclusion, but require social protection systems to become more active, provide incentives for work, ensuring sustainable retirement system for elderly people and a stable environment the transition to knowledge-based economy can be run.

Read also  The Function Of Food Ordering Online

SMEs – the mainly pawn

In order to achieve the digital economy should focus on using technology within firms, both in terms of Exeter and the environment when it comes to the firm’s external environment. It is understandable that the field could have the biggest Benefits after investing in technology – the SME sector. Importance of SMEs can be seen in their effect on the most important aspects of life inhabitants of a region and the level of economic development. Thus, the importance of SMEs lies in reality following:

– offers the largest supply of goods and services for a nation in a modern society;

– is the main supplier of value added in economic sectors that have purpose,

– offers most jobs;

– firm level performance influence the state and the performance of national economy and standard of living of the population.

In the countries of Central and Eastern Europe, seeking to become states with mature economies, the SME sector is considered the pillar supporting the economy. “On average, 99.7% of companies present in the 27 EU countries, generating more than two thirds of total employment and 60% of added value,” said Helge Boschenbroker, director of the Zeb/ and author of Serving SMEs by banks in CEE. “

Information and communications technology, with electronic trading systems offer benefits in increased turnover after business processes. Transfer documents via existing network and computer network within the enterprise increases the efficiency of the economic process in terms of documentation, data processing and other administrative functions. Also in the SMEs, ICT and communications applications in this area may be the company much faster and can bring value and management company offering its effectiveness.

Using advanced ICT systems, such as being ERP (Enterprise Resource Planning) and KMS (Knowledge Management System) enables enterprises to store, distribute and use their knowledge and know-how.

For example, databases with a history of clients increase the flexibility and support given by managers and employees to customers.

Regarding the internal environment of enterprises, the Internet and electronic commerce, offers significant potential in reducing transaction costs and time. If the type of B2B commerce, digital technology reduces the information asymmetry between buyers and suppliers provided. In fact, adoption of electronic commerce will reduce costs of transfer; increase transaction speed and superior build business relationships.

Read also  Studying The Logiwiz Warehouse Management System Information Technology Essay

Prerequisites for participation in a digital economy are the availability of accessible ICT with reasonable price and ability to use them. Currently, there are still many people who can not benefit fully from the opportunities offered by ICT because these prerequisites are not met.

Using ICT in SMEs is important economically. E-business idea is crucial when talking about ICT, but refers to accessing, providing and sharing information in the networks business, ie making business into advanced digital economy.

Although companies today continue to use cost savings by using ICT, ICT is increasingly recognized as an important tool for innovation and revenue growth. New services and new ways of working in networks of value occurred. Competition between enterprises is conducted in new ways and cooperation lies in their work. Knowledge-intensive activities have become more important. Companies are increasingly focused on their core competencies and outsource processes such “non-core business.”

Currently, the vast majority of world countries have adopted proactive policies priority to create an environment conducive to sustainable development information and communication technologies (ICT) especially that between developed and developing or poor countries has created a digital gap (Digital Divide). Romania, like other emerging countries, is faced with the phenomenon known as the digital gap, that gap that exists in use of ICT in organizations, between different layers of society in the country to other countries. Digital divide concept is closely related to information society theory. Using these indicator researchers measured the extent to which certain segments of the population can participate in the information society.

The gap is caused by social and economic inequalities between groups that influence access to digital information. These differences or inequalities arising from operating knowledge of computers and technology use by those present on the labor market and the marginalized, rich and poor, young and old.

No wonder that the current economic crisis digital divide, in terms of Romania, to provide a surge. As the economy continues to be in crisis compared with other EU countries, differences in adoption and development of ICT will continue to increase. Finally it is possible for Romania to face a new crisis, a crisis of e-accessibility, but only if no measures are taken to support the adoption of sustainable ICT

Order Now

Order Now

Type of Paper
Number of Pages
(275 words)