Basic Economic Models for the Digital Economy

Description

This short document introduces five fundamental concepts of the digital economy that will help managers evaluate the possibilities, and dangers, of digital transformation. It does not aim to replace a more in-depth analysis for each of the topics described. Such analysis can be undertaken by following the references provided in different parts of the text.

Learning Objective

This manuscript is divided into segments. Each segment introduces and develops a concept or business model and finishes with one or two directly applicable lessons for the reader to remember as well as a question for reflection at the top management and firm governance level.

Keywords

creation of value digital economy Digital transformation envelopment strategies Low Transaction Costs Enable Long Tail Business Models power of platforms