INTRODUCTION
1. DEFINITION OF THE ECONOMY COMPUTERIZATION AND DIGITALIZATION
2. INFORMATION TECHNOLOGY TRENDS
3. ELECTRONIC BUSINESS
4. DIGITAL ECONOMY
5. MANIFESTATIONS OF COMPUTERIZATION IN ECONOMY
CONCLUSION
LITERATURE
INTRODUCTION
Today, economy is undergoing fundamental changes as a result of the rapid development of information technology and its use is also very fast. Especially the dynamics of the development of informatics and its products and business development opportunities based on the use of Internet technology have enabled the growth of the role and importance of using information technology in business processes in terms of the new economy. The world economy has changed due to the great development and application of this technology. Enterprises are forced to survive in a modern economy where the global market is characterized by competition, diversity of products and services and short cycle life of the product. In terms of the economy, information technology creates opportunities for specialization and cooperation between companies from different regions by reducing transaction costs, creating ease of access to foreign markets and facilitating the development of new models of electronic business.
The world is witnessing a new dawn with regard to the potential of information and communication technologies to contribute in the fight against poverty. For the first time, there are now realistic opportunities for inhabitants of remote locations in low-income countries to be connected via information. Farmers, fishermen as well as entrepreneurs in urban areas are rapidly adopting mobile phones as a key tool to advance their commercial activities, and some poor people are finding new livelihoods on the back of this trend. Whereas the knowledge base needs to grow considerably, the evidence presented in this report suggests that more attention should be given by policymakers and other stakeholders to this new set of opportunities.
The purpose of this paper is to present the importance of information technology in economy, computerization trends and the opportunities offered by this technology where consumers have quick and easy access on the global market, as well as in information about goods and services.
1. DEFINITION OF THE ECONOMY COMPUTERIZATION AND DIGITALIZATION
The beginning of the 21st century has seen a rapid change from the industrial economy to a digital economy built on computers, connectivity, and human knowledge. In the world of free trade where competition grows speed is vital for each sector if the use of information technology in the production process, management or other business processes. Since the business environment is constantly changing and evolving, the business itself changes all the time and with the growth and development information needs to ask businesses will vary. At the same time information technology and computing system needs to support growth, change and development. Information Technology has influence on changing the society, economy and business.
The economy is the institutional means by which goods and services are produced, distributed, and consumed. Goods range from necessities (things you must have to continue living) to luxury items. Services also have a large range, being that any activity that benefits others is considered a service. The complex economy that we have today has evolved from a preindustrial society. It took years and years of technological innovation and social change to derive into the postindustrial society of today.
Our study shows that economy has moved to digitalization and usage of information technology become important, if not the most important resource for economic development of a country. Furthermore, the usage of information technology are regarded as primary source of competitive advantage for any enterprises which have become to understand the importance of this technology as an enabler of social and economic development [3].
Computerization of the economy effectively integrates the organization of employees, management, technology for the flow of information, materials, and funding in the ongoing effort to produce high quality and low price and excellent service and clean environment.
2. INFORMATION TECHNOLOGY TRENDS
Looking back at 2019, the world of tech has had an exciting and tumultuous year. For one, the evolution of artificial intelligence and machine learning reached new heights. This in turn aided the development of self-learning algorithms, autonomous cars, and virtual assistants. Block chain expanded way beyond the financial industry and created a wealth of future opportunities. It is already setting the stage for other information technology trends to emerge.
21st century has been defined by application of and advancement in information technology. Information technology has become an integral part of our daily life. According to Information Technology Association of America, information technology is defined as “the study, design, development, application, implementation, support or management of computer-based information systems.”
Information technology has served as a big change agent in different aspect of business and society. It has proven game changer in resolving economic and social issues [7].
Advancement and application of information technology are ever changing. Some of the trends in the information technology are as follows:
1) One of the most talked about concept in information technology is the cloud computing. Clouding computing is defined as utilization of computing services, i.e. software as well as hardware as a service over a network. Typically, this network is the internet.
Some of the benefit of cloud computing is as follows:
- Cloud computing reduces IT infrastructure cost of the company.
- Cloud computing promotes the concept of virtualization, which enables server and storage device to be utilized across organization.
- Cloud computing makes maintenance of software and hardware easier as installation is not required on each end user’s computer.
3. ELECTRONIC BUSINESS
The Internet, as the most convenient and accessible global system for exchanging information between users, is more actively implementing and developing business processes every year. Electronic business is actively developing in many countries of the world.
The modern world is impossible to imagine without information technologies, which have changed and eased various spheres, opened new market opportunities. The emergence of new digital infrastructures, the development of computer technology and digital communications creates new opportunities in the field of information technologies, their implementation in the sociopolitical and economic life of society, form the new system of the international economy is digital. The digital economy is based on the production of electronic goods and services by high-tech business structures and the implementation of these products through e-commerce.
In the traditional economy, the manufacturer played the main role in the relationship between producer and buyer, as he belonged to the generation of product ideas. The buyer made a selection from the list of benefits already produced and offered by the manufacturer. In the digital economy, the modern buyer has the opportunity to become a participant in the process of creating new consumer value, generate ideas for new products and services [2].
Information technology trends are one of the relevant factors, which today are helping businesses to penetrate new markets for being innovative and producing new products and services. Therefore, with full right, we can conclude that the role of information technology in the manufacture of new products and services is enormous. If an enterprise does adequately identify the information technology for its competitive business market by providing appropriate software, it will be able to perform the organization and accumulation of data and information necessary and timely to develop new products and services.
4. DIGITAL ECONOMY
Digital economy is one collective term for all economic transactions that occur on the internet. It is also known as the Web Economy or the Internet Economy. With the advent of technology and the process of globalization, the digital and traditional economies are merging into one.
Digital economy is defined as an economy that focuses on digital technologies, i.e. it is based on digital and computing technologies. It essentially covers all business, economic, social, cultural etc. activities that are supported by the web and other digital communication technologies [4].
The term was first coined in a book “The Digital Economy: Promise and Peril in the Age of Networked Intelligence” by author Don Tapscott in 1995.
There are three main components of this economy, namely,
- e-business;
- e-business infrastructure;
- e-commerce.
In the last 15 years, there is seen the tremendous growth of digital platforms and their influence on our lives. Now consumers are influenced by things they see on social media (Facebook, Twitter, Instagram) and other such popular websites (youtube etc).
Therefore, this economy is a way to exploit this opportunity. Now it is integrated into every aspect of the user’s life – healthcare, education, banking, entertainment etc.
Digital economy has given rise to many new trends and start-up ideas. Almost all of the biggest companies in the world (Google, Apple, Microsoft, Amazon) are from the digital world. Let us look at some important merits of the digital economy.
The massive growth of technology and the internet that began in the USA is now a worldwide network. So there is a dramatic rise in the investment on all things related – hardware, technological research, software, services, digital communication etc.
5. MANIFESTATION OF COMPUTERIZATION IN ECONOMY
The rapid and rapid information technology has influenced informatics have an important role in business development.
Manifestations of computerization in the current economy mostly reflected in the application of information systems for planning and strategic analysis different, especially when making long-term decisions. These systems consist of several information systems and management control systems for decision support. By the construction of these systems was originally a requirement for strategic planning of top managers and had primary goal easier access to important information, especially those that were classified as information and critical factor to success the enterprise [1].
While information now increasingly as a basis for new business models in different business processes known as electronic business. Electronic business is something more than selling and buying products through the Internet, which also included customer service, cooperation with other business partners and distribution and supply. While e-commerce is also an internet business as e-business, but that is a part of it. E-commerce is focused only on buying and selling products and services online. These two concepts are used as synonymous with one another, so even today most people use the term e-commerce instead of the term e-business.
We can say that information and knowledge-based economy are producing different products and services in unpredictable values, mention electronic business forms: electronic market; electronic marketing; electronic scholarships; electronic banking transactions; electronic distribution of knowledge and services etc. While e-business models are classified into the following categories:
1) business - to - business - these terms are identified all interactions between businesses, companies and firms. Delivery, exchange of documents, orders, financial flows, coordination, joint activities - all of this is the interaction of one business with another.
CONCLUSION
Theoretically, information is supposed to increase wealth.
Since the rate of change of technology is a function of information. Information technology is the technology that increases the rate at which technology advances. Therefore, one would assume theoretically that information could only have a positive influence on productivity.
To achieve economic and social development, as well as higher standards of living should be paid special attention to information society development, use and spread of information technology in all business activities. That businesses be successful it is vital the use of new technologies. Information constantly being advanced is helping businesses to compete in the global market. Information creates opportunities for increased efficiency and flexibility of business processes and collaboration in the group. All successful companies are using this technology and are creating entirely new business and competitive advantage.
We should be realistic and accept that electronic business opens the way to become part of global business processes to cope with international competition, therefore, the importance of digitizing becomes inevitable because of this technology depends on the growth of competitiveness in global scope. The global nature of the digital economy will limit the capacity of the national economy. It should therefore work in this direction in order to be absorbed benefits that brings the digital economy.
The first type of technological advancement is that which requires human beings to learn additional information in order to utilize the additional efficiency potential of an advancement. An example of this would be purchasing a new word processor for a computer. The new word processing program gives users the potential to be much more efficient than with their old word processing program. However, the users' lack of familiarity with the new software causes them not to materialize their efficiency potential right away.
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