Well, if you haven’t realized it by now, and yes, we are living and doing business in the New Economy. The basic idea behind this economy is that computer and Internet technology are fundamentally changing the way we are doing business.
Let us contrast the “old” with the “new”. Old economy differs from new economy in that it relies on traditional methods of doing business. On the other hand utilizes the new economy leveraging of new cutting-edge technology. This traditional economic system dates back to the Industrial Revolution and revolves around producing goods as opposed to the exchange of information (James Chen, Investopedia)
What is this New Economy?
New economy is a term often used in the media to describe changes that have taken place in business since the widespread adoption of the Internet. The term has been applied to a wide range of situations and issues. For example, the rise and fall of high-tech and Internet startup companies (inc.com).
What are we doing differently?
|Doing things in the 'Old economy'||How things work in the 'New economy'|
|Doing local business||Doing business anywhere|
|Waiting for customers to visit your shop||Customers go online and click on your website link|
|Shopping hours 9 am to 9 pm||Customers shop 24/7|
|Pay rent and salaries||Pay web hosting and data|
|Shop owner carries stock||Manufacturer carries the stock|
|High prices because of high costs||Lower prices because of low costs and risk|
|Little information available about products||Products are described in detail on retail websites|
|Difficult to compare product and service prices||Product and service prices can be compared instantly|
|Limited variety in product lines||Large range of products and brands available|
|Reach thousands of people with advertising||Access millions of people through social netwo|
Knowledge and new ideas
Knowledge and new ideas are crucial for a business to grow and survive in the “New Economy”. Therefore, the more you know and the more creative the ideas your business can generate, the better chance it will stand in this fast changing environment.
In this economy digitization enabled that we can be in touch with whomever we want, twenty four hours a day. As result, social networks such as Facebook and Linked have transposed our daily lives. And Twitter telling us in real time of an event anywhere…
The validity of electronic contracts, the protection of personal details and data, and secure online payment methods are a concern for many people. Also, there is the possibility of job losses and industries shutting down…
Well, at the end of the day we’ve move on where we are now, starting the 4th industrial revolution. Furthermore, have you heard lately about artificial intelligence, internet of things, big data, or augmented reality or chat bots – the list go on…