Chain Reaction Forum 2024: EY Expert Reveals Two Digital Business Categories
Date
9/10/2024 5:21:30 AM
(MENAFN- Trend News Agency)
BAKU, Azerbaijan, September 10. The digital
economy is distinguished by two primary types of digital
businesses, leader of the advisory sector at Ernst & Young (EY),
Mohammad J. Sear, stated during the panel discussion "Immersing in
the Digital and Metaverse Economy" at the "Chain Reaction 2024"
forum in Azerbaijan's Baku, Trend reports.
“For me, the digital Economy encompasses businesses that
originated and exist solely in the digital era, which did not exist
before. Often, the terms 'digital' and 'IT' are confused and used
interchangeably. Many so-called 'digital strategies' are merely IT
strategies disguised under a trendier term. The true digital
economy represents something new, previously nonexistent, that has
transformed our approach to online business-how we consume
information and interact with one another,” Sear explained.
According to Sear, there are two primary types of digital
businesses.
“The first type is fully digital companies. These operate
exclusively online and provide their services through the internet.
An example is Netflix, which emerged in the digital age and
dramatically changed the content market. Unlike traditional media
formats, Netflix offers a completely online experience where users
access all content via the internet without ever needing direct
interaction with company representatives.
The second type is digital hybrid companies, such as Uber. These
businesses start in the digital realm but offer physical products
or services. For instance, I book a ride through Uber online, but
the ride itself occurs in the real world. Thus, Uber integrates
both digital and physical elements into its business model,” he
stated.
Sear also noted that other businesses tend to fall into the
category of IT or technology companies.
“Critical roles are played by organizations that support digital
infrastructure, including digital identification systems, payment
platforms, and data exchange technologies between companies. This
ecosystem relies heavily on infrastructure that ensures
connectivity and data transfer. Without reliable connectivity,
digital businesses cannot function. Whether it's e-commerce, where
products are ordered online but delivered physically, or cloud
kitchens, which operate entirely online but deliver offline
products-these are integral parts of the digital economy,” he
added.
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