Digital Transformation is Economic Transformation For All
We are in the midst of an amazing technological revolution. Transformative change is being driven by digital technologies. The economic paradigm is changing. New technologies are redefining product and factor markets, as well as affecting business and work in profound ways. The digital revolution’s frontiers are being pushed farther by recent advancements in artificial intelligence and related innovations. In the aftermath of the COVID-19 outbreak, digital change is speeding up. The future is approaching far faster than anticipated.
The new technologies have a lot of potential. They open up new paths and prospects for a brighter future. They do, however, provide additional challenges. While the brilliance and prowess of digital technologies’ applications have dazzled, they have yet to completely yield the predicted payoff in increased productivity growth. Indeed, in many economies, overall productivity growth has slowed in recent decades. As a result, economic growth has been slowing.
In order to achieve digital transformation, organizations will need to improve their skills and promote the expansion of digital enterprises. As more businesses begin to use digital solutions as a result of the COVID-19 epidemic, the demand for digital skills has increased. Updates to curriculum and teacher training, as well as stronger links between tertiary educational institutions and companies, will be required to improve digital capabilities. Additionally, digital enterprises have the potential to create new employment and boost productivity. Support initiatives to expand worldwide market reach, strengthen the ability of support institutions (such as incubators and venture capital funds), and improve access to funding will be required to promote the growth of digital firms.
The digital age necessitates a rethinking of competition policy. Antitrust laws must be reinforced, as well as their enforcement. The digital economy brings with it new regulatory challenges, such as data regulation (the digital economy’s lifeblood), competition issues with digital platforms that have emerged as gatekeepers in the digital world, and market concentration caused by tech giants that resemble natural or quasi-natural monopolies due to economies of scale and network effects associated with digital technologies. Policymakers must ensure that financial markets remain competitive and solve regulatory concerns related to the new world of digital financial products, platforms, and algorithms, just as they do in product markets. New structures are also required for international collaboration in sectors such as environmental control.
The digital age necessitates a rethinking of competition policy. Antitrust laws must be reinforced, as well as their enforcement. The digital economy brings with it new regulatory challenges, such as data regulation (the digital economy’s lifeblood), competition issues with digital platforms that have emerged as gatekeepers in the digital world, and market concentration caused by tech giants that resemble natural or quasi-natural monopolies due to economies of scale and network effects associated with digital technologies. Policymakers must ensure that financial markets remain competitive and solve regulatory concerns related to the new world of digital financial products, platforms, and algorithms, just as they do in product markets. New structures are also required for international collaboration in sectors such as environmental control.
Enabling more enterprises to participate in the innovation economy, broadening the dissemination of new technologies, and developing complementary labor capabilities can all lead to greater and more equitable economic growth. Reforms in these areas are more successful than fiscal redistribution in reducing inequality and economic insecurity. The growth and inclusion agendas are inextricably linked when it comes to realizing the full potential of digital transformation.
As the world recovers from the COVID-19 epidemic, the digital remaking of economies will accelerate, and leveraging these developments will be critical in ensuring that underdeveloped economies benefit. To nurture the potential and imperatives of inclusive digital transformation, DT Global is committed to incorporating digital best practices into current and new programmes.