Page 112 - SAMENA Trends - June-August 2021

ARTICLE SAMENA TRENDS

infrastructure, digital services and data. and ecommerce fulfillment centers. development, particularly as nations move
The public sector is also providing a away from resource-based economic
The emergence and evolution of the digital similarly seamless digital experience models. To facilitate this transition,
economy is characterized by three key through initiatives such as national governments and policymakers should
trends that help us better understand the government service portals, national focus their efforts on critical enablers of
new economic construct: digital identities, and more. the digital economy. As such, there are
1. Dominant Digital Business Models 3. The Rise of Industry Ecosystems four aspects that are foundational to its
The digital economy is often referred Traditional and linear value chains with evolution, addressing them head on will
to as a platform economy, where limited partner engagement are now multiply economic growth in the future:
digital business models and platforms giving way to integrated ecosystems 1. Digital Strategies and Regulations
that enable them, dominate. In some that use software platforms to The digital economy requires focused
industries, such as transportation deliver value, create resiliency, and attention, tailored strategies and
and tourism, digital platforms have foster innovation through connected policymaking efforts. China, for
caused severe disruption to traditional processes. For example, leading banks example, has put significant emphasis
models: think the likes of Uber and engage with Financial Technology on the digital economy in its national
Airbnb. In sectors such as banking and (FinTech) players to enhance services strategy for 2021–25 and expects
government, digital is now the primary and innovate rapidly within the Financial it to become the core component
mode of service delivery, leading to Services Industry (FSI). Such industry fueling its commercial transformation.
branches and customer service centers ecosystems thrive on data sharing and The country plans to use data and
closing down. use digital platforms for intercompany applications to not only upgrade and
2. The Shift from Providing Services to collaboration and multiplied innovation. transform traditional industries but also
Creating Experience foster new business models.
Organizations differentiate themselves The Four Key Enablers of the Digital 2. Digital Infrastructure
by creating digital experiences for Economy The digital economy requires
customers in the digital economy. For The global economy is on its way to organizations and individuals to
example, today's leading retailers inspire fulfilling its objectives— more than 65% connect seamlessly regardless of
customer purchases by using AI-based, of global Gross Domestic Product (GDP) their location and therefore relies on
personalized marketing messages as is predicted to be digitalized as soon as robust, reliable, responsive, secure and
well as delivering in-store and online 2022. Accelerated investment in digital scalable digital infrastructure. Digital
Augmented Reality (AR) and Virtual transformation will further spur the creation infrastructure, today, is comprised of
Reality (VR) experiences. They create of digitally-enabled products, services a myriad of technological elements
seamless digital and physical shopping and experiences across all industries, such as telecommunication networks
experiences through automated stores significantly impacting economic and storage infrastructure — including

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