BUSINESS IMPACTS:

INDIVIDUAL
ORGANIZATIONAL SYSTEMS
ECONOMIC SYSTEMS
GLOBAL SYSTEMS

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 What is Digital Economy?
• Digital economy is an umbrella term used to
describe markets that focus on digital
technologies.”
• It refers to the full range of our economic,
social and cultural activities supported by the
Internet and related information and
communications technologies. “These
typically involve the trade of information
goods or services through electronic
commerce.
• It operates on a layered basis, with separate
segments for data transportation and
applications” (OECD 2012).
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 Digital economy Building Blocks
• A widely-accepted understanding about digital
economy is its activities on and around the
digital world.
• Thomas Mesenbourg (2001) has provided three
main components for Digital Economy:
1. e-business infrastructure (hardware, software,
telecoms, networks, human capital, etc.),
2. e-business (how business is conducted, any
process that an organization conducts over
computer-mediated networks),
3. e-commerce (transfer of goods and services).

3
 The Digital Economy System
• Digital economic activity results from billions of
online connections among people, businesses,
devices, data, and processes.
• The backbone of the digital economy is thus
hyper-connectivity which creates
interconnectedness of people, organisations,
and machines that based on the Internet,
mobile technology and the Internet of Things.
The internet of things, which is known as the
infrastructure of the information society
connects physical devices, smart devices,
buildings, and other items embedded with
electronics, software, sensors etc. to engage in
the exchange of data. 4
 A paradigm shift
• As social media, virtual reality and
cloud services are expanding, the
boundary between the traditional
economy and digital economy is
getting difficult to be identified.
• The OECD has included both ICT
goods and services under digital
economy. This means that software
services are also part of the digital
economy. 5
INDIVIDUALS VS COMPUTERS
Supercomputer
Main Frame
Workstations
Mini Computer
Microcomputers / PC’s

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Microcomputer Systems
• Handheld Computers
– PDA, Information
Appliances
• Notebook Computers
• Desktop Computers
• Workstations
• SMART Cards
• Network Server
– Powerful microcomputer
used in small LANs
Name Common Input Devices ??
Common Input Devices

• Keyboard
• Pointing Devices
• Pen Based Computing
• Speech Recognition
• Optical Scanning
• Magnetic Ink Character
Recognition
• Smart Cards
• Digital Cameras
Input Technology Trends

First Second Third Fourth Fifth

Generation Generation Generation Generation Generation

Voice
Keyboard Data
Punched Recognition
Punched Key to Tape/ Entry
Cards Touch Devices
Cards Disk Pointing Devices
Paper Tape Handwriting
Optical Scanning
Recognition

Trend: Towards Direct Input Devices that Are More Natural

and Easy to Use
Common Output Devices

• Video Output
– CRT
– LCD
• Printed Output
– Inkjet
– Laser
 Communications Media

Audio Computer
 Tape/cassette/record/CD/DVD  Digital video interactive
 Teleconference / Audio conference  Compact disc interactive
 Sound digitizing  Computer simulation
 Microphone Motion / Still image
Graphic materials  Slides / Overheads
 Pictures  Videodisc (cassette)
 Printed job aids  Motion pictures
 Visual Displays  Broadcast television
Text  Teleconference/videoconference
 Printouts  Animation & Virtual Reality
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Output Technology Trends

First Second Third Fourth Fifth

Generation Generation Generation Generation Generation

Video Displays
Video Displays
Punched Cards Punched Cards Printed Reports Voice Responses
Audio Responses
Printed Reports Printed Reports and Documents Hyperlinked
Printed Reports
and Documents and Documents Video Displays Multimedia
and Documents
Documents

Trend: Towards Output Methods that Communicate Naturally,

Quickly, and Clearly
Emerging Display's

OLED – Organic light-

emitting diods

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Primary & Secondary Storage Media

Semiconductor Direct
Memory Access
Magnetic
Disks
Floppy Disk
Hard Disk, RAID

Sequential
Magnetic Tape Access

Optical Disks
Direct
CD-ROM, CD-R
Access
CD-RW
DVD
Basic Components in a Telecommunications Network

Telecommunications 4
Processors
1

2 3 2 5
Telecommunications
Software

PCs, NCs, Telecommunications

and Other Channels and Media Computers
Terminals
 Wire vs. Wireless Media

Wire
Wireless
 Twisted pair wire  Cellular radio
 Coaxial cable  Microwave transmission
 Satellite transmission
 Fiber optic cable  Global positioning system
 Radio & Infrared light
 Bluetooth

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Telecommunications Strategic Capabilities

Overcome Geographic Barriers: Capture information about

business transactions from remote locations.

Overcome Time Barriers: Provide information to remote locations

immediately after it is requested.

Overcome Cost Barriers: Reduce the cost of more traditional

means of communications. – Centralized Management

Overcome Structural Barriers: Support linkages for competitive

advantage.
 Impact of Networks
1. Need to share data, software,
and hardware
2. Centralized management
3. Share access to outside
sources

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 Various types of Networks
The Internet
Extranets
Intranets
WANs
LANs
PANs
VPNs
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Other E-business Networks

The
Internet
Router
Extranet
Fire wall
Intranet
Server
Fire wall

Router
Intranet Host System
Server
Network Equipment
1. Guided
2. Unguided
3. Repeaters
4. Bridges (DSU/CSU)
5. Routers
6. Hubs / Switches
7. Interface Cards (NIC)
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 Connectivity Technologies

Connectivity Services Connectivity Speeds

 POTS  56 Kbps
 xDSL  T1 – 1.544 Mbps
 ISDN  T3 – 43.232 Mbps
 Cable Modem  OC3 – 155 Mbps
 Frame Relay  OC12 – 622 Mbps
 Dedicated  OC48 – 2.5 Gbit
 OC192 – 9.6 Gbit
 ATM

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 Topology
The topology of a network is the
physical layout and connectivity of
a network.

 Ring topology

 Bus topology

 Star network
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 Types of Software
 Application software - set of computer instructions that
directs computer hardware to perform specific processing
activities.
 General Purpose
 Specific

 Systems software - controls and supports the computer

hardware and its information processing activities between
hardware and applications.
 System control programs
 System support programs
 System development programs

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Common General Purpose Applications

• Electronic Mail
• Word Processing
• Presentation Graphics
• Multimedia
• Personal Information Manager
• Groupware
• Presence Awareness (IM)
Web Browsers

Launch
Discussion Surf the Net
Information
Groups Searches

Typical uses of a Web

Browser in Internet,
Intranet, and Extranet
Environments

Multimedia
File E-Mail
Transfer
 Database Management Systems
 The program (or group of programs) that provides
access to a database is known as a database
management system (DBMS).
 There are many specialized databases, depending on
the type or format of data stored.
 A geographical information database

 A knowledge database

 A multimedia database

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Multimedia Technologies
Video Capture Authoring
Card Language

Compact Disk
Storyboard
Interactive
Key
Sound Board Technologies Compressed
Audio
of
Multimedia
Computer
MIDI
Edit System

Interactive
Digital Audio
Video Digital Video
Interactive
Internet Applications

Surf and Download and

E-mail Computer

Popular Uses
Transfer
of the
E-Commerce Protocol (FTP)
Internet
and Telnet

Internet Chat
and Search Engines
Discussion Forums
Categories of Programming Languages

Machine Languages High Level Languages Markup Languages

Use binary coded Use brief statements Use embedded
instructions control codes
1001 1001 Compute X = Y + Z <H1>First heading</H>
1100 1101 <!ELEMENT Product
(#Item | manuf)>
Assembler Languages Fourth Generation Object-Oriented
Use symbolic coded Languages Languages
instructions Use natural statements Define objects that
contain data and actions
LOD Y SUM THE FOLLOWING
NUMBERS Document.write
ADD Z (“Hi There”)
 Corporate Portals
 A corporate portal refers to a company’s Web site
that is used as a gateway to the corporate data,
information, and knowledge. (Single Point of
Entrance)
1. Knowledge bases and learning tools
2. Business process support
3. Customer-facing sales, marketing, and service
4. Collaboration and project support
5. Access to data from disparate corporate systems
6. Internal company information
7. Policies and procedures
8. Best practices and lessons learned
9. Human resources and benefits
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 Information Architecture Pillars of
Digital Economy
 Information architecture is a high-level map or plan of
the information requirements in an organization.
 In preparing information architecture, the designer
requires two kinds of information:
1. The business needs of the organization—that is, its
objectives and problems, and the contribution that ICT can
make.
2. The information systems that already exist in an
organization and how they can be combined among
themselves or with future systems to support the
organization’s information needs.
Electronic Framework

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E-commerce: the use of the Internet and the web to transact
business.
Features of E-commerce System:
 Digital Markets
 Digital Goods and Services
 Ubiquity: Internet is available everywhere, anytime.
 Global reach: the technology reaches across national boundaries.
 Universal standards: one set of technology standards.
 Richness: video, audio and text messages are possible.
 Interactivity: the technology works through interaction with the
user.
 Information density: the technology reduces information costs and
raises quality.
 Personalization/customization: the technology allows personalized
messages to be delivered to individuals as well as groups.
E-commerce Impacts:
• Disintermediation: The elimination of organizations or
business process layers responsible for certain
intermediary steps in a value chain, reducing costs to
the consumer

The Benefits of Disintermediation to the Consumer

 Internet Business Models
Business Model: Defines an
enterprise
• Describes how the enterprise
delivers a product or service
• Shows how the enterprise
creates wealth
 6 Internet Business Models the Digital Economy
1. Virtual storefront: Sells goods or services online
(Amazon.com)

2. Online marketplace: Provides a trading platform for

individuals and firms (eBay.com)

3. Content provider: Creates revenue by providing

content (WSJ.com, TheStreet.com)

4. Online service provider: Provides online services for

individuals and businesses (Xdrive.com)

5. Virtual community: Provides an online community to

focused groups (Friendster.com, iVillage.com)

6. Portal: Provides initial point of entry to Web,

specialized content, services (Yahoo.com, MSN.com)
Various Types of Electronic
Commerce
• Business-to-customer (B2C): Retailing
of products and services directly to
individual customers
(Wal-Mart.com)
• Business-to-business (B2B): Sales of
goods and services to other businesses
(Grainger.com, Ariba.com)
• Consumer-to-consumer (C2C):
Individuals using the Web for private
sales or exchange (eBay.com )
Interactive Marketing and Personalization Technologies

Clickstream tracking tools: Collect data on

customer activities at Web sites and store
them in a log

• Web Personalization: Create unique

personalized Web pages for each customer
• Increased closeness to customer increases
value to the customer, while reducing costs of
interacting with the customer

• Blogs: Personal Web page that contains a

series of chronological entries by its author,
and links to related Web pages.
 Technologies for New Efficiencies and Relationships
• Electronic Data Interchange (EDI): Enables the
computer-to-computer exchange between two
organizations of standard transactions. Currently 80%
of B2B e-commerce uses this system. EDI is being
replaced by more powerful Web-based alternatives.

• Private Industrial Networks: The largest Web-based form

of B2B commerce. Private B2B extranets that focus on
continuous business process coordination between a
small group of companies for collaboration and supply
chain management.

• Net marketplaces (e-hubs) provide a single marketplace

for many different buyers and sellers.
A Net Marketplace
• M-commerce: The use of the Internet for purchasing
goods and services and also for transmitting messages
using wireless mobile devices
M-COMMERCE SERVICES AND APPLICATIONS
• Information-based services: Instant messaging, e-mail,
searching for a movie or restaurant using a cell phone
or handheld PDA
• Transaction-based services: Purchasing stocks, concert
tickets, music, or games; searching for the best price
for an item using a cell phone and buying it in a
physical store or on the Web
• Personalized services: Services that anticipate what a
customer wants based on that person’s location or data
profile, such as updated airline flight information or
beaming coupons for nearby restaurants
 M-Commerce Challenges

1. Slow data transfer speeds on second-

generation cellular networks, resulting
in higher costs to customer
2. Limited memory and power supplies
3. More Web sites need to be designed
specifically for small wireless devices.
4. Keyboards and screens on cell phones
are still tiny and awkward to use.
 Electronic Commerce Payment Systems
Credit cards The most common form of payment.

Digital wallets Electronic storage of I.D. and digital cash.

Accumulated balance Used for micro payments. Similar to monthly telephone bills.

Stored value Used for micro payments. Pre-payment of funds, debited on use.

Smart Cards I.D. and credit information stored on a chip attached to a card. Used in Europe.

Digital cash Electronic currency that can be transferred over the Web.

Peer-to-Peer payment Interpersonal transfer of funds such as PayPal.

Digital checking Electronic checks with digital signatures, used most often in B2B commerce.

Electronic billing presentment Used by consumers to pay bills online, provided by many banks.
and payment