0 comments on “Regulating a Digital Economy: An Indian Perspective”

Regulating a Digital Economy: An Indian Perspective

The “fourth industrial revolution” which has been characterised by end-to-end digitalisation has led to unprecedented increases in connectivity and data flows. By 2017, Asia had the largest number of internet users in the world, with 1.9 billion people online.

Joshua Meltzer, Senior Fellow, Global Economy and Development at the Brookings Institution, spoke about regulating the digital economy at a Brookings India Development Seminar on April 20, 2018.

In 2014 cross-border data flows were 45 times larger than in 2005, raising global gross domestic product (GDP) by approximately 3.5 per cent, equivalent to $2.8 trillion dollars in 2014. According to the World Bank, it is expected that a 10 per cent increase in internet penetration in the exporting country would lead to a 1.9 per cent increase in exports. In fact, in the U.S. alone internet and data use increased GDP by 3.4-4.8 per cent, as per estimates of the United States International Trade Commission.

In India, the digital economy is expected to contribute $550bn-$1tr in GDP by 2025, and add 1.5-2 million jobs by 2018 through its Digital India initiative.

The economic opportunities from technologies such as cloud computing, big data and the internet of things are also not limited to the IT sector but are economy-wide, including in sectors such as manufacturing and agriculture, Meltzer argued based on his working paper “Regulating for a digital economy: Understanding the importance of cross-border data flows in Asia”.

Over 40 per cent of India’s goods and services exports consist of software services and IT-enabled services (ITES) from financial analysis, accounting, medical transcription to the provision of applications for smartphones. Cross-border data flows remain vital for India’s exports of services.

Governments, however, are increasingly introducing measures that restrict data flows.

In order to build the digital economy, India will need to determine a fit-for-purpose regulation especially in privacy, consumer protection, intellectual property and financial regulation.

Cross-border data flow restrictions can take one of several forms, from restrictions on data being transferred outside national borders and requiring prior consent for global transfers. According to a study by Bauer et al, the cost of proposed and enacted data localisation measures in India would reduce its GDP by 0.1 per cent.

Meltzer argued that restrictions on cross-border data flows harm both the competitiveness of the country implementing the policies and other countries that rely on that data from those countries.

In India, a few examples of government regulations and rules include the Information Technology Rules (2011) that limits cross-border transfer of sensitive personal data. The National Data Sharing and Accessibility Policy (2012) which requires government data be stored in India, particularly for cloud providers. The Companies (Accounts) Rules (2014) which requires backups of financial information, if stored overseas, to be stored in India. The National Telecom M2M roadmap (2015) which requires gateways and app servers that serve Indian customers to be located in India.

Data flow restrictions are enacted with several goals in mind – from protecting citizens’ personal privacy, to ensuring national security and protecting local businesses. The capacity to move large quantities of data seamlessly and rapidly across borders can undermine domestic regulatory standards in areas such as privacy and consumer protection.

Meltzer argued that such data restrictions limit access to digital commerce networks and online resources and the ability of businesses to synthesise large data sets, on a wider scale they affect business models, reduce productivity, innovation as well as business competitiveness by forcing businesses to invest in lower quality data facilities.

So, while this wave of digitisation has massive economy wide positive impacts, data localisation could have massive economic costs, he added.

Meltzer recommended that the realisation of legitimate regulatory goals such as privacy and security must happen alongside maximising the economic and trade opportunities cross-border data flows offer. The focus for regulators needs to be using existing technologies to harness economy-wide benefits.

Robust domestic privacy laws that manage risks and maximise opportunities and the proper enforcement of security protocols through laws offer a way of ensuring data restrictions don’t negatively impact businesses and trade flows.

At the centre of all of this lies building a trustworthy environment where mutual assistance is offered and data-sharing agreements and contracts are negotiated bilaterally and multilaterally. In essence, government backdoors that erode trust in the internet must be avoided under any circumstances.

The discussants during the seminar provided unique perspectives and critiques to some of Meltzer’s arguments.

Former diplomat Asoke Mukerji spoke about how interdependent countries were when it came to data flows. He focused on how in addition to maximising the impact of data flows for economic growth, India also needs to look at data and its flow in terms of its socio-economic sustainable development goals, anchored in its inclusive “Sabka saath, Sabka vikas” policy.

The focus of data and data flows in India remains as much on the citizen as on the market, he said.

Bringing an aspect of human nature as well as the issue of the concentration of data in the hands of a few private players, Mudit Kapoor, associate professor at the Indian Statistical Institute, warned of the pitfalls of this free market of digital data flows.

He pointed out that flow of data is distinct from flow of goods and services across borders. This is largely due to the inter-relationship between industry and security concerns of each country. Given the asymmetry in data-sharing rules between companies and government agencies across the world, we are likely to over-simply the true and complex nature of international data flows by treating it like any other commodity or services.

Kapoor also highlighted the markets for fake news and the limited capacity of the governments to regulate such markets. These can have phenomenal implications on institutions in democratic countries.

Avik Sarkar, OSD of the Data Analytics Cell at NITI Aayog, spoke about the digitisation efforts of the government, giving examples of how machine-learning, artificial intelligence and big data analytics could help bring about profound impacts on policies and programmes, especially those in health and early disease prevention.

In order to build the digital economy, India will need to determine a fit-for-purpose regulation especially in privacy, consumer protection, intellectual property and financial regulation. The big push needs to be from the top, ensuring governments at all levels – national, state and local — go digital and consider the delivery of services through digital technologies.

Overall the vibrant debate on this forum and many alike on cross-border data flows in India remains a part of a larger global discussion on the need for an international framework to provide predictability, security and stability of cyberspace.

source:www.brookings.edu

0 comments on “Creative economy has new impetus in digital world”

Creative economy has new impetus in digital world

Fast-paced changes in the digital economy are shaking up the creative industries and producing new opportunities to advance development and diversity.

The intersection of the creative and digital economies – and the emerging opportunities at this nexus – was an important discussion point at a recent services trade fair in Beijing, China, with UNCTAD and the others focusing on how the digital world is shaping new economic and trade models.

The 2018 Beijing International Forum on Creative Economy and Summit on Augmented Reality Industry Development took place as part of the China Trade in Services Fair in Beijing from May 28 to June 1.

“Services are a powerful economic driver,” UNCTAD Deputy Secretary-General Isabelle Durant said during a keynote speech to open the fair “They made up 56% of developing countries’ total GDP in 2016, and 54% of their total employment in 2017.”

UNCTAD Creative Economy Programme Chief Marisa Henderson was also a keynote speaker at the creative economy forum. She was joined by UNCTAD’s Creative Economy Programme team which participated in several side meetings and events to highlight the growing role of the creative economy for economic development.

New engine

The forum was held on 29 May and was jointly hosted by the World Tradepoint Federation and the Beijing Municipal Commission of Commerce with the participation of UNCTAD.

It tackled the theme of how technological innovation promotes the development of creative economy. Participants looked at how augmented reality, technology and the creative industries are combining to form a new engine for economic growth.

Ms. Henderson spoke about the creative economy in the digital era.

“In terms of development, digital creation, distribution and participation have revolutionized the creative and many other industries and are driving new economic and trade models forward,” she said.

“Creative workers and creative content are already integral to bringing the digital world to life – and it is critical that we understand both this contribution and how it promotes socio-economic development.”

Ms. Henderson’s keynote was supported by a presentation by team member, Carolina Quintana, on the trends in international trade in creative industries, led by dynamic markets in East Asia. It focused on the region’s increasing digital content market share in services sectors related to architecture, audio-visuals and personal, cultural and recreational services.

More than 200 people attended the forum, including experts and officials of international organizations, the Chinese public sector, chambers of commerce and enterprises.

Ms. Quintana was also invited to speak at the Beijing Forum on International Industry Development.

At this event she discussed the important integration of the “exhibition industry” in the creative industry ecosystem.

“Exhibitions are an important way to showcase destination and goods and services offerings – especially creative goods and services. They contribute to creative enterprise, trade, export development and tourism, as well as knowledge bases and community cohesion.”

Creative China rising

The fair took place just over six months after the 19th National Congress of the Communist Party of China (CPC), where the cultural and creative industries were highlighted as one of the main pillars of the national economy.

In his address at the CPC, President Xi Jinping’s issued a call to boost the vitality of the domestic cultural and creative sector by upgrading its industrial structure, fostering major brands and boosting consumption.

China has consistently moved toward a more creative, consumer-driven economy. The value added from China’s culture-related sectors clocking $463.9 billion in 2016 a 13% rise from the previous year, according to data from the National Bureau of Statistics and reported by China Daily.

This value added accounted for 4.14% of China’s gross domestic product (GDP), up 0.17 percentage point from the share in 2015.

“Chinese and more broadly Asian growth represents great opportunities for other developing countries which wish to strengthen cultural exchanges and creative industries cooperation with these fast-growing economies,” Ms. Henderson said.

UNCTAD also took part in meetings with the Beijing Municipal Government to jointly organize a Creative Economy Forum in 2019 and participate in Exhibition Industry International Trade Forum, part of the renowned annual China International Import Fair in Shanghai, due to take place on 6–7 November.

source: http://unctad.org

0 comments on “The iWorld Expo 2018 Themed on Digital Economy Kicked Off in Chengdu”

The iWorld Expo 2018 Themed on Digital Economy Kicked Off in Chengdu

On August 16, 2018, the iWorld Expo 2018 grandly kicked off at the Century City New International Convention and Exhibition Center in Chengdu. During the three-day period, under the theme of “Digital Economy in the New Era”, a wonderful event about artificial intelligence and the mobile Internet ecosystem will come onto stage in three major dimensions: exhibitions, international forums and supporting activities.

The iWorld Expo is supported by the Chengdu Municipal People’s Government, jointly hosted by the Chengdu Municipal Commission of Economy and Information Technology, Chengdu Bureau of Expo Affairs and Management Committee of the Chengdu Hi-tech Development Area, and organized by the International Data Group (IDG). This exhibition has attracted more than 200 domestic and foreign brand exhibitors, 100 industry leaders, 300 news media, and 100,000 visitors.

In the report of the 19th National Congress of the Communist Party of China, there was a proposal to build China’sstrength in digital networks, the digital economy, smart society and the sharing economy and to foster new growth areas and drivers of growth. This marks the advent of golden explosion of data economy era. In addition, recently, the Third Plenary Session of the 11th Sichuan Provincial Party Committee has issued the “Decision of the Sichuan Provincial Committee of the Communist Party of China on Comprehensively Promoting High-Quality Development” and clearly proposed to seize the commanding heights of the digital economy. The theme of the iWorld Expo coincides with the path of Chengdu’s vigorous digital economy, showcasing Chengdu’s ambition and confidence in the digital economy.

Eight exhibition areas are being put on show

Innovation is the first driving force for development. At the iWorld Expo 2018, a large amount of companies have brought the audience their cutting-edge innovations.

Covering an area of 22,000 square meters, the exhibition area consisted of eight major sections, namely artificial intelligence, smart life of the future, virtual reality/augmented reality, innovation and start-ups, smart cities, digital entertainment, and smart hardware and intelligent autos.

With the in-depth development of artificial intelligence, the application of artificial intelligence technology has gradually expanded to more industries and fields such as unmanned vehicles, smart homes, consumer electronics terminals, and education. As the key exhibition area of the iWorld Expo, the artificial intelligence exhibition area covers about 2,500 square meters and gathers well-known enterprises such as BOE, Hammer Technology, Pangolin Robot, Deocean, Codoon, and I Winner, attracting a large audience. Meanwhile, at the BOE booth, the BOE 5.99-inch dynamic suspension flexible AMOLED screen, with a thickness of only 0.03mm and a resolution of 1080×2160, is becoming the star of the BOE booth.

At present, the entire smart car industry has entered a new period of development, with more and more industrial opportunities emerging. In the smart car pavilion, leading companies such as BAIC BJEV, Weizuche, and Auto Financial Service gathered to show the cutting-edge technologies of the future car in smart driving, life service, security protection, location service, car assistance and other systems from different perspectives. BAIC BJEV has demonstrated the new era of national pure electric SUVEX360. In terms of technology, BAIC BJEV has introduced the vehicle-based artificial intelligence “Darwin System”, which is a self-learning and self-growth vehicle intelligent technology system independently developed by BAIC BJEV by integrating artificial intelligence and deep learning.

In addition, Tianfu Software Park and Techcode Global Industry Incubator also come onto the stage of the Innovation and Entrepreneurship Exhibition Area to showcase the power of innovation and entrepreneurship to the public.

The international forum created smart peak feast

The digital economy has brought new opportunities for the transformation of traditional industries. Meanwhile, the information economy, represented by a series of high-tech technologies such as cloud computing, big data and artificial intelligence, is becoming the core of the development of the digital economy. How does the digital economy integrate with the traditional industries? What new formats and new models will the digital economy bring forward? The iWorld Expo is showcasing numerous ideas from a range of mobile internet industries.

Synchronizing the opening ceremony are the 16th China International Software Cooperation Conference and iWorld Conference 2018. Participants at the forums include representatives from National Ministries and Commissions, Sichuan Provincial Party and Government, Chengdu Municipal Party and Government, Foreign consular agencies in Chinaattended this eye-catching forum, along with other significant visitors from pioneering enterprises, scientific research institutions, advanced academic and industrial organizations at home and abroad.

Liu Liedong, Deputy Mayor of Chengdu Government, shared his analytic and profound opinions at his speech. Mr. Liu holds that China is facing with an essential opportunity for scientific and technological revolution and industrial innovation. Information network technology has become an important engine driving economic and social development, and software acts as the core and soul of the new generation of information network technology, playing a more and more significant part in a new round of development in Chengdu. Accordingly, the exhibition will fully perform its characteristics as internationalization and specialization, armed with stronger interaction and experience, aiming to promote interpersonal communication and idea-sharing. Chengdu is making full preparation for providing high-level services and heading for a promising future.

Jennifer Xu, Vice President of IDG Asia, delivered a speech on behalf of the host organization. From her words, it is at the third year that iWorld has landed in Chengdu led by IDG. The exhibition hands out a gathering platform for both new and old friends to make joint efforts for developing emerging technic industry and innovative entrepreneurship in Chengdu. Open to the whole world, iWorld aims to boost emerging industries and especially the advantages of high-tech innovation and entrepreneurship, achieving a global appraised brand of Chengdu.

Nine parallel forums are held, including “Linking the Future” Block Chain Summit, VR/AR: a perfect mix of hardware and software, Global Creative Mobile Internet Development Competition (Chengdu Station), Science and Technology Innovation Summit, Changing the Future  Crossover Artificial Intelligence, Build the development of business space with new consumption mode and new experience, Elite Strategic Layout – the Match Point of Internet Industry, Intelligent Road of Intelligent Vehicle. Internet experts from both home and abroad gather together to discuss the development of digital economy under the new era of artificial intelligence.

Featured events ignite the passion of the exhibition

The iWorld Expo 2018 brings not only feasts of innovative technology and ideas to the audience, but also a wonderful journey of smart technology. Various special events take turns to ignite the entire scene, which are quite amazing.

As the classic old-fashioned activities of iWorld Expo, “The Best 2018 Award” and “Talent Award” still continue to be wonderful as they were in previous years. The authoritative selection of high-quality mobile Internet products manufacturers and excellent developers and technicians reserve a new force for the development of the industry.

In addition, iWorld e-sports stage an eye-catching performance. The two popular game projects, including King Gloryand StarCraft, attract top-notched players and wellknown teams from both home and abroad to launch a fierce confrontation and improve the interactive viewing experience of the live events through the on-site esports game.

The Robot Fighting Competition highlight this year’s variety show. By following the trend of the times, iWorld Expo 2018 staged Battletech: The Crescent Hawk’s Inception, a fighting robot carnival full of fun and technology. 36 top teams from all over the world are fighting for the squad and vying for the crown, thus giving the audience a unique viewing experience.

In conclusion, the iWorld Expo 2018 boasts cool smart technology products, innovative ideas from opinion leaders, and fascinating interactive activities.

source: www.prnewswire.com

0 comments on “Digital economy plays key role in high-quality growth (China)”

Digital economy plays key role in high-quality growth (China)

chinaChina’s manufacturing industry is aiming to transform itself from “Quantity” to “Quality”. The key strategy is to develop a digital economy, said Li Yizhong, the former minister from China’s Ministry of Industry and Information Technology on Sunday.

Speaking at the 2018 World Forum on Scientific and Technological Innovation in Beijing,Li said “A digital economy means a deep integration of Information technology (IT) and the manufacturing industry.”

“It is the trend of a global economy as well as a national strategy for a high-quality growth in manufacturing and internet development,’ he added.

Then, how to develop a digital economy?

Li noted that cutting-edge technologies like big data, internet, cloud computing, and Artificial Intelligence (AI) need to be closely integrated with the manufacturing industry to develop new products and business models.

There are three areas where China’s digital economy has developed the most in recent years, Li summarized, firstly, the IT industry has seen a fast growth and contributed 8 percent to the overall GDP growth last year.

Secondly, enterprises have played bigger roles in developing a digital economy. They have realized the significance of the integration between manufacturing and IT. For instance, Alibaba has rolled out an industrial system that integrated the internet and its companies. The IT industry includes telecom manufacturing, communication services, software and the internet industries.

Thirdly, the benchmarks in digitalization have been improved. For example, indoor broadband penetration has reached 86.7 percent while mobile broadband penetration has risen to 86.3 percent, and the internet surfing fee has been reduced by 46.2 percent, which has exceeded the goals set for 2020.

The number of robots used by every 10,000 workers on average has been increased from 23 in 2013 to 50 as of now, which is close to the world’s averages. The patents held by every 10,000 citizens on average have doubled since 2013. Moreover, enterprises hold over 60 percent of the overall patents.

He also pointed out the challenges faced by digital economy developments.

Core technologies are still controlled by other nations. The Chinese economic structure is still at the low-end. There are significant gaps between China and other developed countries in chips, integrated circuits, software, and data processing techniques. Ninety-five percent of high-end chips are from overseas. Therefore, technological innovations are vital for developing a digital economy.

Most enterprises lack awareness when it comes to digital transformation. They need technical assistance and support. Their understandings of how technologies could enhance productivity require further education. Meanwhile, tech companies lack the knowledge of the industrial demands.

Li suggested strengthening the communication and education for digital transformation among enterprises and leading industrial enterprises by collaborating with internet giants to develop new applications.

On the one hand, interdisciplinary talents who have both knowledgeable of technologies like big data and have the industrial expertise are extremely scarce. On the other hand, loads of traditional workers have been laid off. In France, 3 million jobs will disappear because of digitalization. While in the Guiyang hi-tech industrial development area, 42,000 jobs were created by the digital economy and related industries, Li said.

source: http://en.xfafinance.com

0 comments on “Germany – Digital Economy Monitoring report 2018”

Germany – Digital Economy Monitoring report 2018

germany DEMR 2018

The DIGITAL Economy Index provides a number to show the level of digitalisation in the
German economy. It is based on a survey of high-ranking decision-makers from 1,061
businesses. Three aspects are incorporated in the economy index: the use of digital
devices, the state of internal company digitalisation, and the effect of digitalisation on the company.

Report here and  Library

source: www.zew.de

0 comments on “Competition challenges in the digital economy”

Competition challenges in the digital economy

Competition21-750x400Slow productivity growth and rising income inequality have shaped the world economy in a time of rapid technological change. A variety of explanations have emerged to help us understand these related trends, but one overarching theme is the decline in competition.

The combination of increasingly concentrated markets, rising market power of large firms, and slowing business dynamism suggest that competition among firms is weakening. The concern is that the rise of dominant firms will hinder the diffusion of technology and exacerbate income inequality.

Adding to these concerns are two key features of the digital economy—the potential for scale with digital platforms and the growing importance of intangible capital—that, by their very nature, lend themselves to bigger and more dominant firms.

These characteristics of the digital economy present challenges on how we think about and implement competition policy. Policies aimed at ensuring a level playing field and fostering a dynamic and inclusive economy will therefore need to adjust to better reflect a growing reality.

POTENTIAL FOR SCALE WITH DIGITAL PLATFORMS

First, market concentration is especially high in markets with large returns to scale and network effects. Going digital can come with high capital expenditures, like setting up data centers and other digital infrastructure. But it also comes with the ability to reproduce digital offerings instantly and at low or zero marginal cost, implying large returns to scale and lower prices for consumers. When network effects are involved, the potential returns to scale are even greater.

The argument for bigger firms in these markets is that consumers are the biggest winners. Free digital services and a plethora of user data used to customize and cross-sell products help raise consumer welfare and offer greater choice. (In some cases, firms controlling “big data” can extract more consumer surplus through sophisticated algorithmic pricing and customization of offerings.)

Small businesses and entrepreneurs also benefit, the argument goes. Digital giants like Amazon, Google, and Microsoft, among others, reduce startup costs for small firms by offering cloud services and open-source software, make it easier to reach distant markets through their platforms, and offer venture funding and financing.

Due in part to the potential to scale up quickly, the threat of disruption is higher in the digital economy than in the past. Many argue that this threat strengthens competition among big firms as well as smaller firms who can unseat the giants (see herehere, and here).

However, it is not so clear that these arguments for bigger firms always hold. Less than one percent of startups end up as $1 billion companies and are often acquired or imitated by the giants along the way. In addition, industry lines are increasingly blurred as big firms leverage their user’s data to offer a broader range of goods and services, providing more valuable data on spending habits, and, ultimately, reinforcing the competitive advantage of big firms across industries.

A challenge for policymakers and regulators comes when assessing who indeed the biggest beneficiaries are. Diane Coyle of the University of Manchester points out that although the network effects of digital platforms produce real economic welfare gains, it is unclear how big those gains are or who captures them. Advertisers also place great value on free services and, as Luigi Zingales and Guy Rolnik of the University of Chicago notes, users do pay for these services in the form of very valuable information.

More economic tools are needed to quantify consumer benefits in such markets where traditional pricing does not provide the same kind of signals on market power as in other industries. Such assessments would better help policymakers and regulators ensure a level playing field and better distinguish between competitive and anti-competitive behaviors.

GROWING IMPORTANCE OF INTANGIBLE CAPITAL

A second feature of the digital economy that advantages larger firms is the growing importance of intangible capital.

Unlike tangible capital like buildings and equipment, intangible capital is not physical. It consists of ideas, branding, business processes, software, supplier relationships, licensing agreements, and other immaterial assets that generate value for a firm.

As digitization changes business models, firms are placing greater emphasis on intangibles. In the U.S., U.K., and some European economies, intangible investment already exceeds investment in tangibles.

As Jonathan Haskel and Stian Westlake describe in their book Capitalism Without Capital, there are four key economic properties of intangible assets that differentiate them from tangibles. Those properties are “scalability” (multiple people can use them simultaneously), “sunkenness” (the cost of producing them is mostly sunk), “spillovers” (easy for others to appropriate), and “synergies” (can be combined effectively).

With these properties, firms can achieve much larger scale, go to great lengths to prevent spillovers to competitors who can appropriate their sunk investments, and acquire other firms with intangible assets that offer synergies (like human capital or branding). Haskel and Westlake argue that these properties help explain the rise of superstar firms, more mergers and acquisitions, and higher market concentration in industries with a larger share of intangible investment.

In industries with greater intangible investment, small firms may have a harder time finding financing to invest and boost productivity. Small firms typically rely on bank lending that often require collateral from borrowers. But intangibles cannot offer physical collateral, are hard to measure, and, in the case of investments in knowledge and research and development, can easily be appropriated by others. These characteristics of intangibles make private equity financing more attractive for intangible-heavy firms, not only to undertake investments in assets where the cost is mostly sunk, but also to have an easier time protecting intellectual property when privately held.

In addition, private equity financing and venture capital for small firms can be difficult to scale up. These difficulties are partly due to the importance of social relationships and the large role of public subsidies in supporting a vibrant venture capital industry, which takes a long time to develop.

Large firms, on the other hand, can use their economies of scale (and buying power to acquire firms) to capture spillovers and exploit synergies. They also more easily attract capital.

LOOKING AHEAD

Are we headed into an economy dominated by big firms? Even techno-optimists, who believe that it is only a matter of time before the potential for today’s technological advances drive faster growth, are pessimistic on the implications for distribution. Concentrated markets may become the new normal. Policies would need to adjust to ensure level playing fields. In addition, better intellectual property protections, broad and inclusive financing ecosystems, new measurement standards, and greater investment in skills are examples of policies better suited for an intangible economy that is dynamic and inclusive. The possibilities are limitless, but the promise won’t realize itself.

source: www.brookings.edu

0 comments on “Digital Entrepreneurship & Digital Disruption – Course.University of Warwick”

Digital Entrepreneurship & Digital Disruption – Course.University of Warwick

AS_318113021661196@1452855462861_lThis module represents the confluence of two of the most critical developments in modern business: the growth of digital enterprises and the digital economy; and the importance of digital technologies in the disruption and reshaping of many industries and the creation of new business models.
To the former, the importance of digital technology in the modern economy is undeniable. Indeed, McKinsey Global Institute have estimated that 98% of the US economy is impacted by digitalisation to some degree (Manyika, 2016).

For new business and for the entrepreneur, digital technology offers the transformative potential to reduce costs, increase agility and speed to market, and for “growth hacking” (rapid experimentation based, primarily, on digital tools).
In some instances, the integration of digital technology into an organisation’s operations, or the inception of new digital enterprises, can go beyond this to a process of digital disruption, whereby technologies come to entirely reshape the whole industry they are applied to. There are numerous examples of this, including: Amazon and book retailing; Uber and the taxi industry; Airbnb and in hotel and accommodation retailing; and many more.
The principal aim of this module is to introduce participants to this exciting, dynamic and highly relevant area of modern business management. Participants will be given the tools, case studies and best practice strategies required to develop a digital enterprise, and to identify and act upon opportunities for digital disruption.

_____________________________________________________
Manyika J (2016). Digital Economy: Trends, Opportunities and Challenges. https://www.ntia.doc.gov/files/ntia/publications/james_manyika_digital_economy_deba_may_16_v4.pdf

Objectives

Upon successful completion participants will be able to:

1. Develop a comprehensive understanding of digital entrepreneurship and digital disruption.
2. Critically evaluate relevant case studies.
3. Critically evaluate markets and industries, and identify opportunities for disruption and innovation.
4. Demonstrate a thorough comprehension of, and an ability to apply best practice in digital entrepreneurship.
5. Create, evaluate and develop a digital business model.

Syllabus

1. What is a Digital Enterprise?
a. Definition and comparison with traditional businesses.
b. Case studies.
2. What is Digital Disruption?
a. Definition.
b. Case studies.
c. Identification of opportunities for Digital Disruption.
3. Forming a Digital Entrepreneurship
a. Market research and idea development.
b. Digital business model development.
c. Digital technology development and innovation.
d. Funding – including seed funding and crowdfunding.
4. Growing a Digital Enterprise
a. Digital technology development and enhancement.
b. Growth and digital hacking.
c. Managing a digital enterprise.
d. Continuous deployment.
e. Innovation, dispersion and diversification.

Assessment

3750 Words Post Module (60 hours, 70% weighting) and In-class presentation (1.5 hours, 30% weighting)

Duration

1 week, to include lectures, seminars, workshops and presentations, approximately 36 total contact hours.

source: https://warwick.ac.uk/fac/sci/wmg/globalcontent/outlines/digital-entrepreneurship-and-digital-disruption

0 comments on “German politician calls for corporate break-up of U.S. digital tech giants”

German politician calls for corporate break-up of U.S. digital tech giants

Social Democrats (SPD) Hold Federal Party CongressGerman Social Democrats (SPD) leader Andrea Nahles has called for the break-up of major U.S. technology companies on Monday to prevent the formation of digital monopolies.

Writing in the newspaper Handelsblatt, Nahles urged policymakers to use antitrust regulation to “reign in internet giants” like Facebook, Google and Amazon as soon as their behavior began to “contradict the principles of the social market economy.”

Amongst others, she proposed a “data-for-all” law which would require companies which had acquired a dominant market position to give away a share of their anonymized data for free.

Furthermore, Nahles warned that digital monopolists which failed to assume their responsibility to society would have to face the prospect of involuntary disintegration at the hands of competition authorities.

“In such cases, we will have to hold discussions in the European Union (EU) over whether a corporate break-up is necessary,” the SPD leader said.

In hindsight, Nahles argued, it had been a mistake to allow the concentration of digital market power in a handful of companies as had occurred during the takeover of WhatsApp by Facebook. However, she noted that it would not be unprecedented for governments to reverse these mergers again. It was hence in the “enlightened self-interest” of the sector to take recent criticism of industry business models to heart to avoid the need for such radical steps.

The SPD leader is not the first senior German politician to demand reforms of the way data-driven Silicon Valley companies operate in the EU. Earlier, chancellor Angela Merkel (CDU) proposed introducing a tax on data in the digital economy.

“The pricing of data, especially that of consumers, is the central injustice issue of the future,” the Christian Democratic Union (CDU) leader said. She emphasized that such data had become fundamental to the business model of many companies in the digital economy which generated income with targeted advertising.

According to Merkel, ongoing discussions in the EU over how to tax large U.S. companies like Google and Amazon only underscored the urgency of problems in the current regulatory regime governing e-commerce. The situation raised the question of whether traditional corporation tax models were still appropriate, or whether policymakers should instead resort to revenue-taxing to ensure a level playing field between digital and non-digital firms.

Many online businesses pay considerably less tax in Europe than traditional industrial manufacturers or brick-and-mortar retailers. The digital companies hereby benefit from their non-locational character which allows them to channel European profits through low-tax jurisdictions such as Ireland and Luxembourg.

The EU Commission has already announced tentative plans to tax the revenue of large digital companies with at least 750 million euros in annual global revenue and online sales worth 50 million euros in Europe at a three percent rate. The taxes would be levied in the countries where users are physically based.

But the plans also require unanimous consent from EU members, which remains elusive on the issue. While Germany and France are seen as the major driving forces behind the changes, low-tax countries like Ireland, Luxemburg and Malta have warned that the reforms could open a new front in the temporarily-stalled trade war between Brussels and Washington.

Writing on Monday, Nahles insisted nevertheless that closer regulatory scrutiny of the commercial activities of major digital technology firms was required in the bloc. She argued that digitalization would only become a force for good when its potential was harnessed by society as a whole, rather than an elite circle of corporate beneficiaries.

source: www.xinhuanet.com

0 comments on “Jack Ma Launches $10M African entrepreneurs prize”

Jack Ma Launches $10M African entrepreneurs prize

jack_sa-3-editedAlibaba founder Jack Ma has established a new contest that will see African entrepreneurs compete for $10 million in funding, with the aim of supporting businesses that are growing the continent’s nascent digital economy.

Called the Jack Ma Foundation Netpreneur Prize, small businesses in Africa will vie for $1 million in prize money every year for the next decade, starting in 2019, a statement said. The Jack Ma Foundation will host an annual pitch competition, with all 10 finalists receiving grant funding and access to the Netpreneur community of African business leaders for mentorship and other resources.

“As a fellow entrepreneur, I understand the importance of getting support during the early days,” the Alibaba executive chairman said. “This prize demonstrates our support of a next generation of young entrepreneurs across Africa that is paving the way for a better future and impart positive change in their communities.”

While the competition will be open to entrepreneurs in all industries, the prize will focus on internet-led businesses that help advance technology and innovation in Africa. Applicants must be African nationals leading mission-driven organizations, and the 10 finalists will be selected by a team of judges from five regions representing the entire continent. Applications for the first year open in January, with the finalist pitch competition broadcast on television and online in the second half of 2019.

The prize was announced at the “Netpreneurs: The Rise of Africa’s Digital Lions” conference in Johannesburg on Wednesday, which drew 800 entrepreneurs, venture capitalists, researchers and policymakers. In addition to Ma, United Nations Conference on Trade and Development Secretary-General Mukhisa Kituyi and South African Minister of Science and Technology Mmamoloko Kubayi-Ngubane, UN Women Executive Director Phumzile Mlambo-Ngcuka and Lin Songtian, China’s ambassador to South Africa, were in attendance.

“The rise of the digital economy provides growth and opportunity to the developing world, but it is up to us to make sure no one is left behind. The work that Jack Ma and UNCTAD are doing together will help empower the emerging generation of young African business leaders to participate in and lead that growth,” Kituyi said.

source: www.alizila.com

0 comments on “Putin calls on Caspian littoral nations to focus on development of digital economy”

Putin calls on Caspian littoral nations to focus on development of digital economy

Russian President Vladimir Putin has called on his counterparts from other Caspian littoral nations, namely Kazakhstan, Azerbaijan, Iran, and Turkmenistan, to focus on the development of digital economy.

“Russia calls on the Caspian littoral states to focus on cooperation in the sphere of digital economy, to introduce information and communications technologies and electronic commerce, to digitalize foreign trade operations, the shipments and logistics sectors,” Putin said at the Caspian summit on Sunday.

He said he hopes an intergovernmental agreement on cooperation in the sphere of transport on the Caspian Sea will help develop a common integrated infrastructure.

“Transport links is a key factor for sustainable growth and close cooperation between our states,” he stressed, adding that Russia is implementing a strategy for the development of sea ports in the Caspian basin till 2030. Thus, it is planned to build a deep-water port near Caspiysk by 2025. The port will be capable of handling heavy-duty vessels with a payload of 15,000-25,000 tonnes.

source: www.tass.com