Perspectives of the digital economy

The world as we know is continually changing and one of the fundamental drivers is digital transformation. At its core, digital transformation isnt about Internet ‘’unicorns’’. Its about using the latest technology to do what you already do- but BETTER. So, you may ask what digital economy is and do we really need it?

The digital economy is the economic activity that results from billions of everyday online connections among people, businesses, devices, data and processes. The backbone of the digital economy is hyper-connectivity, which means growing interconnectedness of people, organizations, and machines that results from the Internet, mobile technology and the internet of things. Benefits of digital economy are contributes to economic growth, create new jobs, improves public services, digital delivery of goods and services, transparency.

Simply going digital isn’t going to cut any more. For companies, a digital business strategy is viewed as means of transforming their business, streamline processes, and making use of technologies to enhance their interaction with customers and employees, and deliver excellent customer experience at the same time. In Customer experience the digital economy, all customers – business-to-business as well as business-to-consumer alike – want to interact with businesses when and where they want and in a fashion that is most convenient for them. Additionally, customers desire engagement with brands through experiences that are seamless, omnichannel, direct, contextual, and personalized. Trends in emerging digital technologies are: blockchain, data analytics, artificial intelligence, 3D printing, internet of things, automation and robotics, cloud computing.

  1. Blockchain technologies-are a form of distributed ledger technologies that allow multiple parties to engage in secure, trusted transactions without any intermediary.
  2. Three-dimensional printing-(3D) printing, also known as additive manufacturing can potentially disrupt manufacturing processes by boosting international trade in designs rather than in finished products.
  3. Internet of things-Internet of things refers to the growing array of Internet-connected devices such as sensors, meters, radio frequency identification chips and other gadgets that are embedded in various everyday objects enabling them to send and receive various kinds of data.
  4. 5G mobile broadband -Fifth generation (5G) wireless technology is expected to be critical for IoT due to its greater ability to handle massive volumes of data. 5G networks can process around 1,000 times more data than todays systems. In particular, it offers the possibility to connect many more devices. While 72 mobile operators were testing 5G in 2018, 25 of them are expected to launch the service in 2019, and another 26 in 2020. It is estimated that by 2025, the United States, followed by Europe and Asia Pacific will be leaders in 5G adoption
  5. Cloud computing-Cloud computing is enabled by higher Internet speeds, which have drastically reduced latency between users and far away data centres. Data storage costs have also plummeted. The cloud is transforming business models, as it reduces the need for in-house IT expertise, offers flexibility for scaling, and consistent applications rollout and maintenance.
  6. Automation and robotics-Automation and robotics technology are increasingly used in manufacturing, which could have significant impacts on employment. There are concerns that such technologies may constrain the scope for developing countries to adopt export-led manufacturing as a path to industrialization, and that the more developed economies may increasingly use robots to restore” manufacturing jobs.
  7. Artificial intelligence and data analytics-Developments in Artificial intelligence, including machine learning, are enabled by the large amounts of digital data that can be analyzed to generate insights and predict behavior using algorithms, as well as by advanced computer processing power. Artificial intelligence is already in use in areas such as voice recognition and commercial products.

The President of Turkmenistan signed the Resolution, having proved the Concept of Development of Digital economy in Turkmenistan in 2019-2025. The document reflects current condition of national system of information and communication technologies, goals and objectives of the concept, ways and methods of its implementation and expected outcomes. The world economy is transforming fast as a result of the rapid spread of new digital technologies, with major implications for Agenda 2030 on Sustainable Development. Greater levels of digitalization of both economies and societies are creating new means for tackling global development challenges.

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 Amanbagt Ussayeva,

Student of International Law Faculty
of The Institute of International Relations of 
the Ministry of Foreign Affairs of Turkmenistan.

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