Chapter 4 the Digital Economy, New Business Models and Key Features
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Amazon.Com E-Tail Customer Fulfillment Networks Pioneer
Customer Fulfillment in the Digital Economy Amazon.com E-tail Customer Fulfillment Networks Pioneer “The logistics of distribution Scorecard are the iceberg below the 1 waterline of online bookselling.” B-web type • Aggregation (e-tail) /Agora —Jeff Bezos, (auctions, Zshops) hybrid model founder and CEO, Amazon.com KEY PARTICIPANTS “Ten years from now, no one Customers • Consumers and business buyers will remember whether Context providers • Amazon.com and online Amazon.com spent an extra merchants (Amazon.com $100,000 upgrading shipping associates, Zshops, auctions) from the West Coast to the East Content providers • Amazon.com and small online merchants (Amazon.com Coast. All that will matter is associates, Zshops, auctions) whether electronic commerce • Suppliers and b-web partners gave people a good or bad (publishers; producers [OEM]; distributors e.g. Ingram Micro, experience.”2 Baker & Taylor Books, and others) —David Risher, senior vice president for Commerce services • Amazon.com and merchants merchandising, Amazon.com participating in auctions and Zshops “This [the Amazon.com • Third party shippers (UPS & USPS) distribution warehouses and Infrastructure providers • Amazon.com Drop shippers such as Ingram CFN] is the fastest expansion of • • Technology providers such as distribution capacity in Oracle, Net Perceptions, and i2 peacetime history.”3 Technologies Third party shippers (UPS, USPS) —Jeff Bezos, • founder and CEO, Amazon.com Offering • The largest online e-tailer of books, music, videos, toys, and gifts • Recently expanded service offering to include auctions (March 1999) and Zshops (September 1999)—an aggregation of merchants on its Web site • Aspires to become a one-stop shop for merchandise on the Web CFN value proposition • “Earth’s largest selection” of merchandise at competitive prices, 360 Adelaide Street W, 4th Floor a validated product assortment, Toronto, Ontario. -
How Should We Measure the Digital Economy? 2
Hutchins Center Working Paper #5 7 January 2020 How Should We Measure the Digital Economy? Erik Brynjolfsson MIT Initiative on the Digital Economy MIT Sloan School of Management Avinash Collis MIT Initiative on the Digital Economy MIT Sloan School of Management A BSTRACT Over the past 40 years, we’ve seen an explosion of digital goods and services: Google, Facebook, LinkedIn, Skype, Wikipedia, online courses, maps, messaging, music, and all the other apps on your smartphone. Because many internet services are free, they largely go uncounted in official measures of economic activity such as GDP and Productivity (which is simply GDP/hours worked). If we want to understand how the internet is contributing to our economy, we need better ways to measure free services like Facebook, Google and Wikipedia. We developed techniques with Felix Eggers of University of Groningen that allow us to estimate the internet’s contribution to the economy. Our research suggests that there has been a substantial increase in well-being that is missed by traditional metrics like GDP, or productivity. The authors did not receive financial support from any firm or person for this article or from any firm or person with a financial or political interest in this article. Neither is currently an officer, director, or board member of any organization with an interest in this article. ________________________________________________________________________ THIS PAPER IS ONLINE AT https://www.brookings.edu/research/how- should-we-measure-the-digital-economy 1. Introduction How much would we have to pay you to give up Google search for one month? $10? $100? $1,000? How about Wikipedia? Perhaps you don’t use Google or Wikipedia at all, and so your reply is $0. -
Agricultural Structure in a Service Economy
LUTHER TWEETEN Agricultural Structure in a Service Economy INTRODUCTION Highly developed market economies have been described variously as affluent, technocratic, and urban-industrial (see Ruttan 1969; Tweeten 1979, cbs. 1, 2). Such economies may also be characterised by service economies because a large portion of jobs are in service industries, such as, trade, finance, insurance, and government (see Table 1). Approxi mately three out of five jobs in the United States were in service industries in 1982. If service jobs in transportation, communications and public utilities are included, then nearly two out of three jobs were in service industries. Perhaps more important, as many as nine out of ten new jobs were in service industries. Non-metropolitan counties (essen tially those not having a city of 50,000 or more) did not differ sharply in structure from metropolitan communities; the major difference was relatively lower employment in service industries and higher employment in extractive (agriculture and mining) industries in non-metropolitan counties (Table 1). As buying power expands, consumers seek self-fulfilment and self-realisation as opposed to simply meeting basic needs for food, shelter and clothing. Income elasticities tend to be high for entertainment, health care, education, eating out, finance and insurance. Thus, normal workings of the price system cause advanced market economies to become service economies. The thesis of this paper is that transformation of nations into post-industrial service economies has pervasive implica tions for agriculture and rural communities. A number of such implications are explored herein. SERVICE INDUSTRIES Service industries and servcie employment are too diverse to be easily classified. -
The New Digital Economy and Development
UNCTAD UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT THE «NEW» DIGITAL ECONOMY AND DEVELOPMENT UNCTAD Technical Notes on ICT for Development N˚8 UNITED NATIONS UNCTAD, DIVISION ON TECHNOLOGY AND LOGISTICS SCIENCE , TECHNOLOGY AND ICT BRANCH ICT POLICY SECTION TECHNICAL NOTE NO8 UNEDITED TN/UNCTAD/ICT4D/08 OCTOBER 2017 The ‘New’ Digital Economy and Development 1 Abstract : This technical note frames the ‘New’ Digital Economy (NDE) as including, most prominently: 1) advanced manufacturing, robotics and factory automation, 2) new sources of data from mobile and ubiquitous Internet connectivity, 3) cloud computing, 4) big data analytics, and 5) artificial intelligence. The main driver of the NDE is the continued exponential improvement in the cost-performance of information and communications technology (ICT), mainly microelectronics, following Moore’s Law. This is not new. The digitization of design, advanced manufacturing, robotics, communications, and distributed computer networking (e.g. the Internet) have been altering innovation processes, the content of tasks, and the possibilities for the relocation of work for decades. However, three features of the NDE are relatively novel. First, new sources of data, from smart phones to factory sensors, are sending vast quantities of data into the “cloud,” where they can be analysed to generate new insights, products, and services. Second, new business models based on technology and product platforms — platform innovation, platform ownership, and platform complimenting — are significantly altering the organization of industries and the terms of competition in a range of leading-edge industries and product categories. Third, the performance of ICT hardware and software has advanced to the point where artificial intelligence and machine learning applications are proliferating. -
Comércio Eletrônico
Comércio Eletrônico Aula 1 - Overview of Electronic Commerce Learning Objectives 1. Define electronic commerce (EC) and describe its various categories. 2. Describe and discuss the content and framework of EC. 3. Describe the major types of EC transactions. 4. Describe the drivers of EC. 5. Discuss the benefits of EC to individuals, organizations, and society. 6. Discuss social computing. 7. Describe social commerce and social software. 8. Understand the elements of the digital world. 9. Describe some EC business models. 10. List and describe the major limitations of EC. Case: Starbucks Electronic Commerce (EC) EC refers to using the Internet and other networks (e.g., intranets) to purchase, sell, transport, or trade data, goods, or services. e-Business • Narrow definition of EC: buying and selling transactions between business partners. • e-Business refers to a broader definition of EC: – buying and selling of goods and services – Servicing customers – collaborating with business partners, – delivering e-learning, – conducting electronic transactions within organizations. – Among others e-Business Note: some view e-business only as comprising those activities that do not involve buying or selling over the Internet, i.e., a complement of the narrowly defined EC. Major EC Concepts: Non-EC vs. Pure EC vs. Partial EC • EC three major activities: – ordering and payments, – order fulfilment, and – delivery to customers. • pure EC: all activities are digital, • non-EC: none are digital, • otherwise, we have partial EC. Major EC Concepts: Pure -
A Common Framework for Measuring the Digital Economy
www.oecd.org/going-digital-toolkit www.oecd.org/SDD A ROADMAP TOWARD A COMMON FRAMEWORK @OECDinnovation @OECD_STAT FOR MEASURING THE [email protected] DIGITAL ECONOMY [email protected] Report for the G20 Digital Economy Task Force SAUDI ARABIA, 2020 A roadmap toward a common framework for measuring the Digital Economy This document was prepared by the Organisation for Economic Co-operation and Development (OECD) Directorate for Science, Technology and Innovation (STI) and Statistics and Data Directorate (SDD), as an input for the discussions in the G20 Digital Economy Task Force in 2020, under the auspices of the G20 Saudi Arabia Presidency in 2020. It benefits from input from the European Commission, ITU, ILO, IMF, UNCTAD, and UNSD as well as from DETF participants. The opinions expressed and arguments employed herein do not necessarily represent the official views of the member countries of the OECD or the G20. Acknowledgements: This report was drafted by Louise Hatem, Daniel Ker, and John Mitchell of the OECD, under the direction of Dirk Pilat, Deputy Director for Science, Technology, and Innovation. Contributions were gratefully received from collaborating International Organisations: Antonio Amores, Ales Capek, Magdalena Kaminska, Balazs Zorenyi, and Silvia Viceconte, European Commission; Martin Schaaper and Daniel Vertesy, ITU; Olga Strietska-Ilina, ILO; Marshall Reinsdorf, IMF; Torbjorn Fredriksson, Pilar Fajarnes, and Scarlett Fondeur Gil, UNCTAD; and Ilaria Di Matteo, UNSD. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. -
The Taking Economy: Uber, Information, and Power
ESSAY THE TAKING ECONOMY: UBER, INFORMATION, AND POWER Ryan Calo∗ & Alex Rosenblat∗∗ Sharing economy firms such as Uber and Airbnb facilitate trusted transactions between strangers on digital platforms. This creates eco- nomic and other value but raises concerns around racial bias, safety, and fairness to competitors and workers that legal scholarship has begun to address. Missing from the literature, however, is a fundamen- tal critique of the sharing economy grounded in asymmetries of infor- mation and power. This Essay, coauthored by a law professor and a technology ethnographer who studies work, labor, and technology, furnishes such a critique and proposes a meaningful response through updates to consumer protection law. ∗. Lane Powell and D. Wayne Gittinger Assistant Professor of Law, University of Washington School of Law. ∗∗. Researcher and Technical Writer, Data & Society Research Institute. The authors would like to thank Christo Wilson, Yan Shvartzshnaider, and Michelle Miller at Coworker.org; Nayantara Mehta and Rebecca Smith at the National Employment Law Project; participants in the Berkeley Law Privacy Law Scholars Conference; participants in the Loyola Law School faculty workshop; participants in the University of Pennsylvania IP colloquium; and danah boyd, Stacy Abder, Shana Kimball, Janet Haven, Julia Ticona, Alexandra Mateescu, Caroline Jack, and Shannon McCormack for thoughtful insights, comments, and feedback. The Uber Policy Team also provided helpful comments, which we try to address throughout the paper. Madeline Lamo, the librarians at Gallagher Law Library, and Patrick Davidson provided excellent research and editing. Rosenblat’s ongoing qualitative research on ride-hail drivers from 2014–2017 is vari- ously funded by Microsoft Research (FUSE grant–Peer Economy, 2014); the MacArthur Foundation (Intelligent & Autonomy Grant, 2014–2016); Open Society Foundations (Future of Work, 2014); and the Robert Wood Johnson Foundation (Mapping Inequalities in the On-Demand Economy, 2017–2018). -
Notes on Structural Change and Economic Development Vivianne
ISSN 2222-4815 A service-based economy: where do we stand? Notes on structural change and economic development Vivianne Ventura-Dias WorkingPaper # 139 | Septiembre 2011 A service-based economy: where do we stand? Notes on structural change and economic development Vivianne Ventura-Dias LATN – Latin American Trade Network ([email protected]) Abstract The purpose of this paper is to provide a comprehensive view of the state of the art of economic research on services and the service economy and thereby contribute to the discussion of a model of inclusive and sustainable development in Latin America. The economic literature on services is widely dispersed in different academic fields that study services, namely economics, marketing, urban and regional studies, geography, human resources and operations research, with very little exchange between these disciplines than it is desired. Although the literature covered much of the empirical ground, it still proposes more questions than answers on macro and micro issues related to growth, employment and productivity in service-based economies. The paper is divided into five sections, including this introduction. Next section is focused on two aspects of the services debate: (i) the definition and measurement of services; and (ii) the determinants of growth of services. Section 3 discusses new trends in international trade that gave prominence to the formation of international supply chains through widespread outsourcing. Section 4 proposes a discussion on the role of services in Latin American -
The Neoliberal Rhetoric of Workforce Readiness
The Neoliberal Rhetoric of Workforce Readiness Richard D. Lakes Georgia State University, Atlanta, USA Abstract In this essay I review an important report on school reform, published in 2007 by the National Center on Education and the Economy, and written by a group of twenty-five panelists in the USA from industry, government, academia, education, and non-profit organizations, led by specialists in labor market economics, named the New Commission on the Skills of the American Workforce. These neoliberal commissioners desire a broad overhaul of public schooling, ending what is now a twelve-year high school curriculum after the tenth-grade with a series of state board qualifying exit examinations. In this plan vocational education (also known as career and technical education) has been eliminated altogether in the secondary-level schools as curricular tracks are consolidated into one, signifying a national trend of ratcheting-up prescribed academic competencies for students. I argue that college-for-all neoliberals valorize the middle-class values of individualism and self-reliance, entrepreneurship, and employment in the professions. Working-class students are expected to reinvent themselves in order to succeed in the new capitalist order. Imperatives in workforce readiness Elected officials in state and national legislatures and executive offices share a neoliberal perspective that public school students are academically deficient and under-prepared as future global workers. Their rhetoric has been used to re-establish the role of evidence-based measurement notably through report cards of student's grade-point-averages and test-taking results. Thus, states are tightening their diploma offerings and consolidating curricular track assignments. -
E-Commerce Business Models and Concepts
CHAPTER 2 E-commerce Business Models and Concepts LEARNING OBJECTIVES After reading this chapter, you will be able to: ■■ Identify the key components of e-commerce business models. ■■ Describe the major B2C business models. ■■ Describe the major B2B business models. ■■ Understand key business concepts and strategies applicable to e-commerce. Tweet Tweet: Twitter’s Business Model witter, the social network phenomenon based on 140-character text mes- Tsages, continues in the long tradition of Internet developments that appear to spring out of nowhere and take the world by storm. Twitter provides a platform for users to express themselves by creating content and sharing it with followers, who sign up to receive “tweets.” Twitter began as a Web-based version of popular text messaging ser- vices provided by cell phone carriers. The basic idea was to marry short text messaging on cell phones with the Web © Kennedy Photography / Alamy and its ability to create social groups. You start by establishing a Twitter account online. By typing a short message called a tweet online or to a code on your cell phone (40404), you can tell your followers what you are doing, your location, or whatever else you might want to say. You are limited to 140 characters, but there is no installation required and no charge. Coming up with solid numbers for Twitter is not easy. By 2013, Twitter had an esti- mated 550 million registered users worldwide, although it is not clear how many continue to actively use the service after signing up. According to Twitter itself, it had 200 million “active” users worldwide as of July 2013. -
The Growing Importance of Service Employment
This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title: The Service Economy Volume Author/Editor: Victor R. Fuchs, assisted by Irving F. Leveson Volume Publisher: NBER Volume ISBN: 0-87014-475-8 Volume URL: http://www.nber.org/books/fuch68-1 Publication Date: 1968 Chapter Title: The Growing Importance of Service Employment Chapter Author: Victor R. Fuchs Chapter URL: http://www.nber.org/chapters/c1156 Chapter pages in book: (p. 14 - 45) 2 THEGROWING IMPORTANCE OF SERVICE EMPLOYMENT In 1947 U.S. employment stood at 58million.The comparable figure for 1965 was 71 million, an increase of 13 million over eighteen years. Nearly all of this net growth occurred in the Service sector; modest in- creases in manufacturing and construction have been almost completely offset by declines in agriculture and mining. Between 1929 and 1965 Service sector employment grew by 20 million. The Industry sector in- creased by only 10 million and Agricultural employment declined by 5million.This chapter is primarily concerned with delineating the growth of service employment from several different points of view. Trends in recent decades are examined in detail, but longer-term trends are also considered. The growth of the Service sector's share of employ- ment in individual states and in foreign countries is discussed. Greatest attention is given to the distribution of employment by industry and sector, but some occupational data are presented as well. The chapter begins with a discussion of the sector definitions. It concludes by examin- ing some of the reasons for the shift to service employment. -
The Spectre of Monetarism
The Spectre of Monetarism Speech given by Mark Carney Governor of the Bank of England Roscoe Lecture Liverpool John Moores University 5 December 2016 I am grateful to Ben Nelson and Iain de Weymarn for their assistance in preparing these remarks, and to Phil Bunn, Daniel Durling, Alastair Firrell, Jennifer Nemeth, Alice Owen, James Oxley, Claire Chambers, Alice Pugh, Paul Robinson, Carlos Van Hombeeck, and Chris Yeates for background analysis and research. 1 All speeches are available online at www.bankofengland.co.uk/publications/Pages/speeches/default.aspx Real incomes falling for a decade. The legacy of a searing financial crisis weighing on confidence and growth. The very nature of work disrupted by a technological revolution. This was the middle of the 19th century. Liverpool was in the midst of a golden age; its Custom House was the national Exchequer’s biggest source of revenue. And Karl Marx was scribbling in the British Library, warning of a spectre haunting Europe, the spectre of communism. We meet today during the first lost decade since the 1860s. In the wake of a global financial crisis. And in the midst of a technological revolution that is once again changing the nature of work. Substitute Northern Rock for Overend Gurney; Uber and machine learning for the Spinning Jenny and the steam engine; and Twitter for the telegraph; and you have dynamics that echo those of 150 years ago. Then the villains were the capitalists. Should they today be the central bankers? Are their flights of fancy promoting stagnation and inequality? Does the spectre of monetarism haunt our economies?i These are serious charges, based on real anxieties.