Impact of Digital Growth in Modern Business

Abstract

Target research in this paper is the assessment and analysis of content of digital progress and its impact on modern business. Business digitization has been introducing increasingly dynamic changes across the entire global economic sphere, whereas its content increasingly maintains to affect the competitiveness of national economies. At the microeconomic level, digital technologies lead to a change of economic structure and quality of production factors, based on knowledge and innovations. This paper should provide specific answers on how to apply new technologies and digital techniques in a quality manner within the knowledge economy. This is not the only answer provided in this paper. On the contrary, the paper shall respond to question how to minimize the risks of all kinds, in order to increase labour productivity. The immediate objective of this paper is to adequately locate and understand the problem of economy digitization and the changes it brings, as well as to provide specific ideas and practical solutions for better and more efficient business operations. The new information, i.e. digital economy fundamentally differs from the traditional ones. This very synergy of workforce, its emergence in such manner, as well as increase in its presence, will be the biggest challenge to what we now call the digital economy. The IT revolution and communication technology affect the development of the new economy on a global scale, which significantly contributes to the modern business. The impact of digital growth on modern business should be reflected in increased productivity, knowing that the increase in productivity is a key issue in any economy, including the digital economy. Increasing productivity implies an increase in the results achieved with the same consumption of resources or achieving the same results with less consumption of resources. Numerous studies have been performed on this subject at the global level, demonstrating that there are serious analyses and research that show exactly how much the investment in IT does actually increase productivity. It is believed that the majority of the growth in productivity since 1995 to date is to be primarily credited to investments in information technology and business process automation. Increasing productivity is evident almost anywhere: in individual companies, industries and economies, which actually represents the essence of modern business activities.

The Impact of Ict Use in Promotional Activities on Export Performance: An Empirical Investigation

“…:8 Issue:2 Year:2020 2388 digitalized economies on the basis of ICT accounted for more than 22% of the global modern business world. Therefore, in the light of these results, it can be concluded that ICT cannot fully integrate and influence the modern business world (Mastilo, 2017).…”

“…By means of ICT, enterprises can innovate their products and services, publish information and news related to enterprise in digital media, develop creative and flexible business strategies and take many more actions (Weill, Subramani, & Broadbent, 2002). Furthermore, ICT is the most important tool that can be used to maintain and strengthen the strategic competitive advantage in a constantly changing and developing business world (Mastilo, 2017). Bhatt and Grover (2005) suggested that advanced ICT features give the enterprise the skill to protect against threats and to intervene rapidly in assessing the opportunities that will arise.…”

Digital Transformation and Its Influence on GDP

“…Some authors stated that the increase of the IT production in economic output may increase the overall level of productivity of a country (Albers, 2006). Some research showed that 22% of the global economy is actually digital economy which proves that countries as well as business and individual should invest more in ICT as a development potential area (Mastilo, 2017). Additionally, same paper quotes Oxford study in 2016 which predicts that the development of the digital economy by 2020 would contribute to the economic growth of 25% (Mastilo, 2017).…”

“…In one of his papers Mastilo identifies four key impacts of the digital economy on today's global economy: it created a new use-value of products and services, it has a destructive impact which threatens traditional business, it created a new way of communication and it a chance for creation of new jobs (Mastilo, 2017). In the USA it has influenced in creation of 500000 new jobs which could be also a role model and example for economies of the Southeast European countries (Mastilo, 2017). Some authors stated that the increase of the IT production in economic output may increase the overall level of productivity of a country (Albers, 2006).…”

“…Some research showed that 22% of the global economy is actually digital economy which proves that countries as well as business and individual should invest more in ICT as a development potential area (Mastilo, 2017). Additionally, same paper quotes Oxford study in 2016 which predicts that the development of the digital economy by 2020 would contribute to the economic growth of 25% (Mastilo, 2017). However, all this requires further research in order to prove that investment in ICT and digital economy can have significant effect to GDP and economic growth.…”