Digital economy: A leveller or a source of economic inequality
When digital transformation is done right, it’s like a caterpillar turning into a butterfly, but when done wrong, all you have is a really fast caterpillar.
Digital economy has turned the curtains for the massive transformations. That transformation can be considered as a positive or negative. Because with every upstream rides, there are resistance from streams. Current era belongs to digitalization and technology. The actions that are once in our dreams turning out to be true. People are penetrating to this change with willingness yet stumblings are there to block too.
Technology is innovation and science,
It's for helping human compliance,,
Learning both the positives and negatives,
Analysing topics makes appropriate narratives,,
Constructive Consequences of Digital Economy -
Uber, the world’s largest taxi company, owns no vehicles. Facebook, the world’s most popular media owner, creates no content. Alibaba, the most valuable retailer, has no inventory. And Airbnb, the world’s largest accommodation provider, owns no real estates.
1. Enhancing the buisness or entrepreneurship scope - start ups are the new face of our nation more than 100 unicorns has been accomplished by Bharat. Vocal for Local are actually building the street buisness and thus helping everyone to grow. Spreading of Cultural heritage products which raises our rich old and beautiful tradition along with earnings. Scope for youth has been increased a lot besides doing government job or corporate job only. Indians transforming to job givers from job seekers. Ease in digitalization has broken all bars of gender biasness, now in India, it's 20% women entrepreneurs are progressing. Ease of learning the business strategies at much affordable price is another milestone to enrich the business building environment in the country.
2. Financial Inclusion - this term earlier was very hectic and tedious because of less awareness and more of incorrect knowledge. Now Just at a single click we are away from being more financial stable and investing for our financial concrete future. Small caps to big capsules, both investor and investee are relishing the profits. Youth at the age of growing learning to save by acquiring right knowledge.
3. Ease of Learning and Development - We are always students as learning never stops but owing to deficiency in resources to upgrade our knowledge, at certain times our skills stangnants, but this was the problem before digitalization, now any time and any where if we want to learn we can very conveniently.
4. Sky is the limit or conquering the unrealistic - Space Exploration - for humans landing anywhere is not at all a difficult task. Be it Mars, deepest trench at Pacific, Antartica or Artic, Moon etc. Acquaintance of man kind with the space can be done only because of digital expulsion. Touring to see the debris of Titanic and making Dwarka under water a tourist destination is magnificent accessories of digitalization.
The challenges and issues with a digital economy - digital economy has became a source of inequality as some industries, manufacturers and some countries are highly benefitted while others who lacks in some way has left behind in the race of conquering. Some other challenges can be quoted as :-
1. The Great digital divide - World is divided as per the digital infrastructure, internet speed, digital education of the population. Wealthy countries and businesses are far more connected digitally than poorer ones. Well over 90% of the world's data centres are in richer countries of Western Europe, North America and East Asia. Conversely, Latin American and African states are home to less than 2%. And 75% of cloud computing and blockchain patterns as well as 50% of IoT spending happens in the US and China. Richer one get equipped well with digitalization are earning more while deprive one is still searching for the remaining one only.
The monopolization of dividends -
Out of 6000 start ups only 1000-1500 start ups actually get success and becomes huge buisness and industrialists whereas small scale business are missing used or harassed by the big enterprises.
Amazon, Alphabet, Apple, Google, Facebook, and Microsoft alongside Alibaba, Baidu, Huawei, Tencent, WeChat etc. Their dominance is forcing smaller organizations and manufacturers to invest heavily in restructuring and digitizing their operations, or face the risks of being extinguished.
The environment impact - biggest myth is that digitalization is much sustainable. The amount of energy required to save such database is contributing to the fossil fuels burning to produce electricity. Emails of gmai account if you don't delete, storing such huge database required millions hertz of electricity. Then internet speed is because of satellites at the space and after getting expired these satellites are wandering at space freely causing abundance of space debris.
Hardware and digital infrastructure is expensive enough and need huge technology to dispose off. Particularly it's very difficult to degrade then causing unnecessary land fills turning soil pollution and air pollution if burnt eithere.
The rise in cyber-crime - common man and less educated people are target of these cyber criminals. Hard earned money is stolen by cyber criminals affecting such innocent people economically and emotionally. Even third type of war ie gray war or cyber war where countries are hacking the confidential data to harm other country in the worst manner they can. To stay competitive, and mitigate risk, the automation of security, scanning and assessments are required to match the rate of innovation and speed to market.
Conclusion -
It’s no longer the big beating the small, but the fast beating the slow. Changes are the law of nature and those changes at right time reaches to the right place. The biggest part of our digital transformation is changing the way we think.
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