The 5 Nature of Digital World

The Nature of the Digital World

1. Globalization

- The system of interconnected economies
    - Based on capital markets
    - Characterized by the use of technology
- Presents opportunities for growth
- Requires an understanding of:
    - Local customs
    - Local laws
    - Regulations of foreign countries

2. The digitization of goods

- Change in format of many creative products
    - MP3s
    - DVDs
    - Software
      Download virus protection files automatically to protect your computer
    - Digital documents
      - Newspapers – NY Times
      - Electronic library databases

3. Speed

- Digital availability includes the expectation of rapid availability and delivery
    - Anytime
    - Any place
- Speed of change

4. The merger of products and services

- New ideas at the heart of IT innovations
- Digitalization makes theft much easier
    - Web-site design
    - Digital images
    - Digital content
- Protection of intellectual property
    - Patents
    - Copyrights
      Digital watermarks - Digimarc
- Trademarks
- Trade secrets

5. New markets and pricing

Digital markets have created new businesses
    - Travel
        - Orbitz
        - Expedia
    - Customer-to-customer exchanges and auctions
        - eBay
        - Yahoo auctions
    - Financial
        - Fidelity
        - eTrade