Elements of Information Technology Which Have Enabled Digital Economy - Essay Example

Essay ( Business Report ) Name of the Student: Name of the Instructor: Name of the course: Code of the course: Submission date: Essay (Business Report) Introduction The digital economy is quickly creeping into the world. This has been as a result of the continuous development of computers and other related digital technologies. The following paper will give an insight into three areas which will probably have an immense transformation with respect to the adoption of digital technology. Elements Of Information Technology Which Have Enabled Digital Economy Hardware Developments First of all, the development of the elements of information technology will have enabled digital economy. One of the elements which will transform the economy will be hardware developments. The development of hardware which has a lot of abilities as compared to the present hardware will transform the economy towards digitalization. For instance, the development of smart phones which have the ability to support all the programs supported by the computer will be a great move towards a digital economy. The current use of ipads and other similar pads has digitalized the economy to some extent. By 2020, the hardware at that time will be on another level; enabling every person to make transaction from the comfort of the pocket. By this year, it is expected that hardware which has capacities to boost business, for instance remote stock taking for businesses, which will make it possible for organizations to take the stock of their business organizations without doing the manual stock taking. Software Development The development of software with immense capabilities to digitize activities which are presently done manually will also transform the economy to a digital one. For instance, the accounting solutions of many organizations are slowly being transformed from manual operations to being computer generated. By the year 2020, it is expected that most of the operations in business organizations will be fully supported by software. For instance for an individual to get financial accounts of his/her from, he will not have to have a deep accounting background as it is today, the simple inputting of data into software will provide most of the financial calculations for him. Voice command prompt will be a more advanced capability of most hardware due to the advancements in applications. For instance, making withdrawals from the ATMs will follow voice command prompts; hence in association with other security details, it will be easier to make withdrawals and transactions using plastic money. Networking The use of super networks such as cloud networks, will be an in thing in2020. The various benefits of using cloud networks will have driven most organizations into adopting it. By this time it is expected that almost all the business organizations will make use of cloud networking services. This is due to the various benefits associated with cloud networks. For example, cloud networks provide businesses with a chance to use software and sometimes hardware applications without undergoing the costly process of purchasing, installing and maintaining software at the physical business locations (Thomas, 2009). Local servers will have paved way for cloud servers and most probably, the largest part of the IT departments of many organizations will be substituted by cloud networks. Development Of IT Infrastructure Which Supports Business Electronic Stock Trading The development of IT infrastructure which supports business will also transform the economy to a digital one. The need for quick and automatic trading of shares and securities will lead to the increased use of electronic stock trading which does not limit a trader to being a broker. With the increasing need for investors to make quick cash in the stock exchange, investors are slowly turning to electronic stock trading (Ghazawi & Alkhouri, 2008). Therefore by 2020, there will be more fast track selling and purchasing of shares and securities as a result of the adoption of electronic stock trading. Brokerage firms will also adopt electronic stock trading in their firms so as to adapt to the changing business environment. The famous tea and coffee auctions will be no different from this. Business organizations will slowly monitor the market forces; hence make prompt transactions when the figures are favorable as opposed to the bidding systems which are commonly used in the market. Due to the ability of investors to monitor the market forces more closely and make transactions when they please, electronic stock trading will also see more of derivative market as opposed to today. Digital Money By 2020, the use of liquid cash will be limited and the use of digital money will be more advanced. The use of mobile money transfers, plastic money (e.g. visa and master cards) will be used in every business organization. It will be possible for a person to move without liquid cash and be able to buy a fruit salad at the local vendor on the streets, pay his/her bus fare with a swipe of his card and pay for his/her bills using digital money (Cynthia, 2003).The adoption of the mobile money transfers into many business organizations will be the in thing. Payments via plastic money will also be normal phenomenon. Moreover, the use of prepaid payment systems will also be more advanced into other services, for instance gas stations, electricity and water services, sewerage services and transport systems. Automation The increased use of digital systems in the operations and management of businesses will lead to increased automation in business organizations. For instance, at present there is an increased use of robot automation systems in the industries. By 2020, there will be an increased use of automation, even to the common man, for instance the recent developments on robots for housekeeping services in homes and offices will be a reality by then. Many manufacturing companies will have automated their systems fully. This will increase the efficiency of the operations in the companies due to the elimination of human errors in the operations. The use of automatic dispensing machines will also be more advanced as opposed to today. By 2020, it is expected that the research and development in digital technology will make it possible for consumers to make more transactions at automatic dispensing machines in addition to an increase in the number of products which can be dispensed over the automatic machines. The Use Of Digital Technology In The Organization Of Business Organizations Virtual Offices The use of digital technology in the organization of business organizations will also create a digital economy. The increased use of the internet and other digital technologies like cloud computing will make it possible for people to have their offices even in the comfort of their beds. This will lead to the creation of virtual offices. With the advancement in the use of technology in business organizations, it will no longer be demanded of an organization have a physical offices which are practically finically demanding in their construction and maintenance (Shekher, 2006). With the reduced operational cost associated with virtual offices, more organizations will go for this option. Moreover, the increased use of the internet in business operations will not require for an individual to be physical present at an office, but would rather require for an individual to be present on the web, which will also lead to the adoption of virtual offices. Matrix Management With the increased use and development of digital technology, many professionals and organization will opt to use it for matrix management. For instance, a professional will be undertaking several tasks, hence reporting to different people. He/she will be using digital technology to liaise with all the supervisors involved. The increased use of shared services models in business organizations will require that professionals do more tasks for different departments and organizations, hence being answerable to more supervisors and managers (Harris & Raviv, 2002). This trend of matrix management is slowly creeping into more and more organizations due to the various benefits associated with it. Flatter Organizations With the development and increased use of digital technology, middle men/ middle management will be eliminated in the management of organizations. Many managers will prefer to have a touch with the ideal situation on the ground, hence will resort to using digital technology to coordinate with the people on the ground (Ernst & Mason, 2011). Due to the rising needs for the managers and business owners to have a direct touch with the situation on the ground, the adoption of digital technology to link up the people on the ground with the managers will be more advanced, hence making the jobs of most middle men obsolete. Conclusion In conclusion, the advancement in the research and development of the digital technology will have transformed the world by a substantial margin by the year 2020. This paper has identified there aspects which will have undergone a substantial change. The first one is the development of elements of information technology which have enabled digital economy. On this point it is noted that there will be a complete transformation in the hardware developments, software and networking. Secondly is the development of IT infrastructure which supports business. On this point, it is noted that there will be a lot of developments in electronic stock trading, automation and the use of digital money. The paper notes that these aspects will transform the economy towards a digital one. Lastly, there will be a lot of developments in the use of digital technology in the organization of business organizations. On this point it is noted that there will be an increased development in the use of virtual offices, flatter organizations and matrix management. Summing up, it is expected that the use of digital technology in business operations will have transformed the economy to a digital one by 2020. References Ernst, C., & Mason, D., (2011). Flat World, Hard Boundaries: How to Lead across Them, MIT Sloan Management Review,52 (3); 82-92 Ghazawi, N., Alkhouri, 2008. The effect of electronic trading on market volatility and liquidity in emerging markets: Evidence from Amman Stock Exchange, Journal of Derivatives & Hedge Funds, 14 (3); 222-238 Harris, M., & Raviv, A., 2002.Organisational Design, Management Science, 48 (7) ; 852- 866 Shekher, S., 2006. Understanding The Virtuality Of Virtual Organizations, Leadership & Organization Development Journal, 27, (6);465-483 Cynthia, W. (2003). Money’s Digital Future, The Futurist, 37 (1); 14-16 Thomas, D., 2009.Cloud Computing- Befits and Challenges, Journal of Object Technology, 8 (3); 34-41 Read More