The Societys Informational Economy

Published Date: 02 Nov 2017

DIGITAL ECONOMY

THE SOCIETY`S INFORMATIONAL ECONOMY

Summary

The new digital technologies allow access, storage and transmission of information increasingly easier and more accessible, so we deal with digital information that can be converted into new economic and social values, creating huge opportunities for developing new products and services. In these conditions we can say that the information is the key resource for the new type of economy, digital economy. The new economy is characterized by the increasing incorporation of knowledge in new products and services, growing the importance of learning and innovation, globalization and sustainable development.

In this paper I propose to address this new type of economy, highlighting specific features and main components. Because to the digital economy are characteristic a set of procedures that fundamentally change the relationship between business partners and contributors, introducing a consistent growing civic consciousness, I thought it to summarize. Because of the global character of this type of economy, we have presented some aspects of the digital economy in the European Union, considering that it could be a possible solution to the economic crisis, issue of new economy based on digital economy, being analyzed in its various aspects by many political factors and various institutions and international organizations. I ended by presenting the most significant trends in the digital economy and a set of conclusions, in which is pointed the role and the importance of this new type of economy.

1. Introduction

Broad use of information and communication technologies and the need to move to the Informational Society and to the society based on knowledge ensure economy growth under conditions of increased environmental protection, accelerating the reduction of physical consumption in favor of information and knowledge capitalization, moving the center of gravity of the investments in fixed assets, to investments in human capital. It goes without saying, so that the Information Society is integrating sustainable development objects, based on social rights and equal opportunities, freedom, cultural diversity and innovative development, ecological protection, restructuring of industry and business.

Feature of the organization in the digital economy will be replacing of traditional pyramid hierarchy with a horizontal hierarchy. In management plans will be registered a growth of activity by optimizing creativity, capacity for innovation and intellectual training of subordinates.

Teamwork, collaboration and cooperation between employees will lead to generations change in management. Competitiveness of the organization will depend almost of the ability to shift from hierarchical and individual character to workplace, to promote collaborative work, leading to a new relationship of proportionality between individualism and solidarity, two major features of contemporary society.

Individual initiative, solidarity, cooperation and mutual trust in the workplace are key factors for success in the informational society. The digital economy is citizen oriented, so we face to a new orientation of the citizen who is subdued to the institutions, to that which has provided services, to that which is paying taxes to obtain facilities and to see how public money is spent. The Digital Economy has dynamic facts which correspond to structural updates and in information plan.

2. The characteristics of digital economy

The concept of digital economy refers specifically to the current transformation of economic activities as a result of using digital technologies, which ensure the access, processing and storing information in a way cheaper and easier. The new economy is characterized by increased incorporation of knowledge in new products and services, increasing the importance of learning and innovation, globalization and sustainable development.

The significant volume of information is changing the way markets work, enabling enterprise restructuring and the emergence of new opportunities for creating value from information available.

This new type of economy, as a result of interaction between computer, telecommunications, Internet and electronic, is characterized by several features that set it apart from traditional economy:

creating a new business model (e-business, e-commerce, e-banking, etc..) - Radically changes their efficiency, in order to reduce costs, including transaction;

place in the center of attention, the demand, consumer needs who engage in a measure increasingly higher in designing, implementation and use of goods and services, beginning at the stage of their research and development. So, new economy has an interactive, participative feature, increase consumer role can become an important source of innovative ideas for the manufacturer;

competition and cooperation are two inseparable sides of the digital economy;

requires a higher consumption of design work, high level that creates a high added value, new jobs, segments that are unlimited business opportunities and creativity by the existence of flexible and interconnected standards which facilitates the need to integrate and / or individualization of different consumers.

In conclusion, we might say that the new type of economy is required increasingly more due to its economic effects and the reduction of resource consumption, the increase of innovative and entrepreneurial spirit, the increase of productivity work, speed production and the change of economic events and processes, increasing value added.

If any market economy to become operational must meet minimum requirements, so, an economy to be in the category digital economy must also be registered with a number of features, presenting a particular importance, the availability to quantify, manifested by state’s authorities, to know exactly the real available resources, and especially to direct financial resources to the defining operational digital economy.

1.The existence of large numbers of networked computers which may exist in state companies, in private companies, in administration, shops, banks, schools, especially in homes and particularly at street corners, railway stations and elsewhere where man wants to solve a problem.

2. Operationality of general interest database. The existence of a correct and complete database is the starting point for a true digital economy, but is necessary an update of its in real time, as there is a new development of an phenomenon, a new stage of an individual journey and a process of achieving interoperability of computer applications to access databases from other systems considered until now included. The existence of a complex system of national databases must be characterized by controlling the level of redundancy and flexible ways of retrievals, customer oriented and characterized by satisfaction of applicants, in relation to the application.

3. The existence of a strong contingent of IT who implement applications made ​​by others, but who, taking into account to the specificity of the Romanian economy, firstly to develop a strategy for information society development, then, step by step, to proceed with implementation of this strategy in life. Huge amount of problems which must be solved requires not only the specialization of designers but also the elimination of redundancies. Transparency that accompanies all stages of development of information society is meant to orient clear training of labor to clear objectives which really means elements of social progress. Workforce is complex in structure as dynamic if we take into account the accelerated pace obsolescence of knowledge, computer technicians and instruments. In a digital economy must be created an optimal ratio between those who produce and develop IT applications, respectively, those who use, without causing distortions in the intermediation process by creating monopolies.

4. Availability for investment effort of all actors in society. Using budgetary resources are created fundamental elements of national infrastructure, private investors and especially of the local citizens, accounting for the financing of projects tasks that come to complete a complex construction, multipurpose.

5. The depolarization of society through access to people and performance by delivering complete and natural streams to micro-level. The society in which information has a peripheral role is steady state polarization, on one side are the few percent, billionaires, and on the other side at the other pole is poor people, very poor, the middle class is insignificant. The digital economy is the economy based on knowledge in which the initiative and individual performance take the place of engineering and legislative cracks. Complete flows are the only which introduce a self control to subsystems levels of society with levers that regulate developments of these subsystems, pushing the corruption to the periphery, for real and healthy competition.

These features of the digital economy are built step by step, by decisions deriving from government programs, medium-term political decisions, with adjustments which ensure continuity and development especially, without replays from zero at each election cycle. It is the basic condition of modern information society’s dynamic.

3. Digital Economy’s components.

By using new digital technologies, information storage, their access and transmission is becoming easier and more accessible, leading to the creation of several opportunities for developing new products and services for digital economy. The digital economy requires the creation of new markets, new markets law, new patterns of behavior for both producers and for consumers, new types of money, new distribution networks. The components of digital economy are:

Internet infrastructure increases companies of the other three areas and can be called the backbone of the digital economy. At this level enables companies to produce goods or services which form the Internet infrastructure:

Telecommunication Companies

Internet Service Providers

Suppliers of network equipment and related services

Providers servers and hardware companies

The applications of the digital economy infrastructure- in this level are found organizations whose products and services enable optimal use of infrastructure, to make electronic transactions:

Consultants

Applications for Electronic Commerce

Multimedia Applications

Development of Web software

Software search engine

Training Online

Web Databases

Hosting sites and support services.

Intermediaries in the digital economy act as a catalyst in the process by which investment in infrastructure and applications are processed in transactions. While playing a major role to supplement the information and knowledge’s required for the digital economy, intermediaries occupy a relatively small share in it, their incomes are not necessarily directly from transactions, but from advertising, charges and commissions. Intermediaries include:

Dealers on various types of activities

online travel agencies

Online Brokers

Portals

Advertising Brokers

Online Advertising

Virtual Stores

The on-line transactions include all categories of participants in the supply chain which carries out operations on-line:

E-retailers - distribution of books, music, appliances, flowers, etc.

Manufacturers that sell their products

Transportation service providers that sell tickets online

Online entertainment and professional services online

Shipping Services

4. Proceedings of the Digital Economy

To the digital economy are characteristic a series of procedures that fundamentally changes the relationship between business partners and contributors, introducing a coherent growing way of civic consciousness?

Internet auction procedure manages the database of bidders and the client database and the result of the adjudication is made ​​public,together with all other alternatives. This procedure is completed with electronic payment of provider to the customer and the partners coverage in the management of transactions automatically.

The procedure of using software for sending email messages with special significance, is a simple but generous way to connect citizens to a minimum number of services.

Digital economy implies a new kind of citizen, the citizen who understands that he is an actor only if they operate directly in a complex system, as an inseparable part of its.

The procedure which is aimed to use Internet resources for information. The citizen has access under reasonable conditions in terms of the costs at Internet resources. Each organization must have Internet address put on official documents headers, on buildings reported in the media, on business cards. People who visit a site well constructed, find a natural ordering of information, also a natural use of keywords. A site is created for the target group which is not addressed and not to those who built it, it must contain complete and accurate information and find the methods that makes the difference between items that have special importance, deadlines, admission terms, costs, risks. Information must be honest and fair, not including traps or ambiguous elements or deliberately misleading. Between what is written on the site and what is on the ground, there must be a full accordance, the website must be certified.

The procedure for storing a high volume of data as bar code and the repeated use of this information to perform database updates of makeing the sale or supply, respectively, to search after the correct code defined. Bar code is the first step of the great interconnections database being vital in the interaction of applications. Interaction becomes particularly effective when based on bar code are interacted two more complex applications.

The procedure to remove the paper support in daily life. For this direction are necessary and proper safety approaches in creating official databases and especially the definition of ways of adding items. Support removing paper assumes a clear evidence of input / output messages with limiting the ability of operators to operate on database. Computer applications which don`t apply to support on paper must include a special rigorous , the history of operations and many operations ongoing certification ways.The elimination of paper leads to a new approach, increasing the responsibilities, doubled by the maximum reliability ensured especially to databases.

Another procedure, concerns on the naturalization of flow merchandise / services - money / information - goods / services. As long as it is working with hybrids on payments through a mandate or a special account for online shops, the application is not for electronic commerce. Through appropriate mechanisms economic operators are incentived for developing Web pages and especially electronic commerce processes, respectively to provide products, prices, possibility receiving orders, delivery and especially the possibility of making electronic payments and receipts.

The procedure for creation income account and expenses account of the citizen is a specific goal only to digital economy. Of each citizen is associated with a complete construction in a database that registers all transactions (receipts, payments, transfers, movements, activities, donations, gifts) significant. The digital economy is a new approach to financial flows, which now is considered as banking secrecy, banking technique, takes on a new valence, whereas the existence of databases and access to complex chains, allows for analysis and providing hazardous or preferential - visibly diminishes credit hazardous.

The procedure for the details of citizen hierarchy. The data on a citizen has a confidential feature in relation to a particular context, except when it goes to the marital status for filing the documents for marriage. Digital economy excludes free and abusive interpretations on transforming any information in confidential information, protecting the functioning market economy mechanisms effectively.

These procedures create a new economic environment, produce changes to competitiveness and the economic miracles have already ground of the productivity and product quality, services processes.

If now we can talk about current e-tendering, e-administration, e-governmental, e-education, e-university, the future will bring new and important changes that will deepen the digital character of the economy, making the economy to bear this name, called digital economy.

All these approaches are possible only when at the level of the economy the conditions were ripe and were made ​​such connections that lead to such a direction and to show that another approach is not possible.

Along with the development of typologies of e-business,is developed mobile telephony which is accompanied along a new way of communication, by the implementation of specific informatics applications, some mobile applications or m-applications.We can not speak about a digital economy if we can not connect to the database through m - applications, whatever they are.

The vulnerabilities embedded in mobile phones should be reduced to provide adequate protection for all transactions, so to the technological explosion in the past years is associated permanently reliable solutions compared to maximize criterion of the protection.

The limitations given by the amount of information that is displayed on a mobile screen requires the development of theories which to structure optimal human-mobile interfaces to make operational this new type of interaction. The reliability of conception makes cell phone in a simple intermediary transmission of information to a laptop with opportunities to integrate of their applications in complex constructions, extremely elaborated.

Both the e - and m applications - are developed based on a single strategy, even if the approach is embodied by elements of simultaneously.

Unitary concept is primarily aimed at the elements`s interface with the ensuring of continuity, and then ensures the completion of several stages, rigor is provided mostly by the existence of a certification process.

In the context of the digital economy, is designed a nucleus around which are developed the other applications, which induces compliance with rules by all other actors, thus achieving a coherent structure of the entire construction.

5. Digital economy in European Union

On the European continent, the authorities intend to encourage, in a sustained manner in the coming years, the development of the digital economy in the belief that it will raise about 110 billion euros. To enhance the digital economy can act in different ways, the primary being the establishment of an economy of scale for service providers and liberalization of certain European citizens, which would be a true powertrain to achieve unique digital space, accessible from any European country.

The issue of the new economy, based on the digital economy, is analyzed in its various aspects by many political factors and by various institutions and international organizations (UN, PNUD, OECD, G7, G8 and others).

Any reference reports are based on the following main ideas, as signals of the digital economy:

The digital revolution

The expansion of of the Internet

E-commerce

The supply of goods and digital services

The electronic supply of tangible assets

Challenges for government / public sector and private sector

The digital revolution

The digital economy is growing use of IT (hardware,

software applications and telecommunications) in all aspects of the economy, including the internal activities of organizations (business, government and non-profit) in transactions between organizations, between individuals, acting both as consumers and organizations. IT enables the collection and processing large volumes of information, stimulate innovation, which gives organizations greater opportunity and incentive to increase quality and efficiency. In this way, we can say that this is the main driver of the global economy. Digital economy has produced enormous benefits, the most important is that developed countries, even in developing countries should ensure appropriate policies and programs to implement digital transformation.

To be successful in today's economy, people need knowledge and understanding of computer and Web skills. IT has increased considerably the ability to develop new business models, products and services, processes and inventions. Technologies that underpin the digital economy are not only personal computers and the Internet, they are incorporated into a wide range of mobile phones, PDAs, GPS units, MP3 players and digital cameras, practical, is found in consumer products daily. Information technology materializes at the consumers, through lower prices, higher quality products and better service.

U.S. leads in terms of investment in IT (hardware, software,

and telecommunications), which grew faster than in other major OECD countries

(Canada, France, Germany, Italy, Japan and the UK). The use of IT has led to stronger productivity growth in developed countries, but also in some developing countries has led to increased productivity (Malaysia and Thailand). In China, IT plays a key role in economic growth, contributing 38% to total productivity increase and a 21% increase in GDP.

In the last years, in the economies of the European Union countries, was noted pregnant the mark of the digital economy, although it is difficult to measure the overall impact of IT on the economy, some facts are clear:

information technology industry has achieved a significant growth rate, providing one third of the economic growth achieved in the last years (without considering indirect effects);

IT investment companies (from the total investment in equipment) have increased significantly;

rapid decrease of the prices of products and IT services, have contribute to the loss of the annual inflation;

IT industries were the main source of investment in research and development;

EU economy, based on Internet services has increased, there are several key factors that justify it: low priced of computers, fast Internet penetration, both in housing and in the enterprises, combined with entrepreneurship and risk in business and with the dynamic capital markets.

The expansion of the Internet

The Internet has become a true multi-billion dollar industry being a vital infrastructure for the global economy. At the end of 2011, almost all companies in OECD countries were connected to the Internet. Extending Internet connectivity was an oasis of fresh air for the ICT sector during the crisis, showing an influence on revenue growth for top firms of 6% per annum between 2000 and 2011 and the increased production of 5% -10% in 2012. Basically, the Internet reshapes the way people live, bringing a greater variety of goods and digital services, lower prices, improved data collection, several channels and social networks. Regarding firms, transition to digital technologies forced them to rethink their business models and constantly adapt to survive in a global market.

Policy makers from all governments are increasingly focused on Internet and ICT policies, dependence on them increases with the challenges of the global financial crisis, in this regard, governments seek new ways to implement online many government services.

There are a number of factors that have led to changes in trade rules and competitiveness in a knowledge-based economy, where globalization and information and communication technology plays a central role. The main feature of the knowledge economy is continued expansion and employment growth in science and technology across the economy. Knowledge has become the main source of economic growth, improving the competitive advantage of companies in the economic system that moves from the abundance and size of the market, to increase elasticity and speed information.

In order to better understand the role of ICT in economic growth, it is important to realize that the digital economy is more than an economy over the internet. IT has enabled the creation of modern tools to create, manipulate, organize, transmit, and store information in digital form.

The advances made in the communications sector and of computers converge to the Internet, investments in information technology involves improving communications both within an organization and between organizations, between iorganizations or between individuals:

Internet rhythm adjustment overshadows all other technologies that preceded it;

customers of electronics companies, the media giants, the telephone companies, computer companies, software companies, cell phone companies and satellite manufacturers, cable television had invested heavily in Internet technologies;

EU budget allocates a lot for investments in high performance computing and communications, of which an important share to ensure a research network faster than the current Internet, are also provided investment for development of new network-support of some applications, such are telemedicine, distance learning and collaborative work in real time;

the population has opportunities to access to the Internet at speeds becoming higher.

Electronic commerce means in the accepted "traditional" value-added use of applications such as electronic transfer of documents (EDI), of fax communication, bar codes, files transfer and electronic mail. The extraordinary growth of the interconnectivity of computers in Internet in all segments of society, has led to a more obvious trend for companies to use these networks in the area of ​​a new type of commerce, electronic commerce on the Internet, to appeal - besides the old services mentioned - and new ones. It is, for example, by the possibility to make purchases through electronic catalogs consulting network "on" Web and pay via credit card or of the electronic wallets .

The supply of goods and digital services - the software programs, newspapers, airline tickets and CDs, not until recently were being sold in shops, kiosks or at home, now, are delivered electronically via Internet:

Sales and marketing costs much smaller, the grouth of the potential for selection and convenience of customers led to the rapid growth of Internet use for entertainment, tourism, software distribution, banking and insurances services;

90% of Web users get on-line news and informations for large utility;

The turnover for commercials broadcast via Internet has increased significantly in the last period;

The sale of tickets, the reservation of hotels, tourist programs for holidays or weekend car rental services are provided on the Internet with a lot of success;

Banks generalized online services offer to customers, the costs of an Internet banking transaction sharply, while offering customers new services;

billing and electronic payments had led to massive savings in the budget of the companies;

IT has contributed to the acceleration of labor productivity, which shows high rate of return of investments in this area, although IT equipment depreciation period is very short. The results of many firms shows that IT investments were more profitable as they were accompanied by investments in organizational changes and less effective in their absence.

The main issues for global digital services economy scale is based on the principle by which private sector should be the leader of this process, and governments should avoid the restrictions.

European authorities intend to encourage strong digital economy in Europe, with the conviction that this buoyant market will raise about 110 billion euros.

The increas of the digital economy may follow different paths for the achieving of a goal upward, the recipe relying mainly on the establishment of economies of scale for providers, ingredient to which is added the liberalization of certain services for European citizens.

In a European Commission report (http://ec.europa.eu/romania/news/raport_ competitivitatea_digitala_ro.htm) on digital competitiveness is made stating that "Europe's digital sector has made great progress since 2005", thus that 56% of Europeans now regularly use the Internet (80% of them use high-speed connections) so "old continent" is the first continent truly "mobile" of world, the number of subscribers mobile communications services exceeds that of citizens (a level of 119%).

6. The digital economy - a possible solution to economic crisis.

Although several years have passed, and affected the entire world economic crisis seems that never ends, basically, we are now at the confluence of two crises: the economic and climate change that takes by long-term business. The settlement and the minimalization of effects performed at microeconomic and macroeconomic level still remain a challenge for economists, both globally and nationally level, a possible solution beeing the development of the digital economy scale.

The digital economy is regarded as the top of economy in general because of its economic effects, that is the reduction of resource consumption, the increase of innovator and entrepreneurial spirit, increase of labor productivity, of speed production and the change of economic phenomena and processes , the increase of the added value, etc.. In the new economy, a promoter of development is the digitization (using information technology to produce and distribute goods and services) and in particularly, the use of internet and other information technologies (smart cards, voice-based computing, wireless, databases, telecommunications and expert systems) in the service sector, that includes 80% of jobs.

The revolution of the information technology has transformed virtually all industries and is the main developer of the increase the economic efficiency and productivity, of living standards, of the personalization of products and services to respond to individual needs and desires. It made ​​almost a fundamental change and transformation of the processes of economy based almost exclusively on physical resources in a predominantly knowledge-based economy.

Noting the evolution of the digital economy, we see more and more pronounced a development of knowledges, as a raw material of economic activity, so stands the new type of development premises of knowledge-based society.

The exponential growth of mobile communications and the number of Internet users, the contribution of ICT (information and communication technologies) to economic growth and jobs creation, restructuring of companies and business in general to benefit more efficient of new technologies, accelerated development of electronic commerce and in the essence of the digital economy - support the transition to a knowledge society. It offers the most promising prospects for stopping crisis effects and the overcome of the social exclusion, but requires that the social protection systems to become more active, to provide incentives for work, to ensure sustainable pension systems for the elderly population and a stable environment in which the transition to knowledge economy can be performed.

The economic crisis and Europe's sustainable recovery can be achieved by using the potential of the digital economy, especially, that is continent which has a generation of young, good professionals in digital technologies, which is a powerful incentive to develop and market innovation. This "resource" is a powerful incentive to develop market towards development and innovation, because, since the start of work, influence and dominate the growing market.

7.Trends in the Digital Economy

The digital economy, puts in first place the needs of consumers, the needs of consumers have an interactive character, participatory, realizing the interface between offer and demand on an area of volume and structure, in space and time more rigorously. the new economy is providing after the principle of "the more people involved, the bigger benefit for everyone involved". It is expected that by 2016, digital economy will double, increasing from 2300 billion in 2010, to 4200 billion dollars in 2016.

According to BCG is estimated that in 2016 will be 3 billion internet users worldwide, witch means 45% of world population, the value of digital industry of G20 countries will double by 2016 and by 2013 will be more mobile broadband connections then fixed connections. The technology that will lead the increase from 2,3 trillion to 4,2 trillion dollars will be the spread of mobile internet.

By 2016, China will have 800 million internet users, as France, Germany, India, Japan, England and U.S together and China's internet economy will be developed at the level of the U.S. in addition ,medium and small companies witch are significantly present and the internet is expected to grow with 5% faster than the companies witch aren't .In the next 5 years, the internet will occupy a key role in the growth of the digital economy in the countries that are a G20's member, an billion opportunity witch decently remain unexploited.

According to the estimates suggested in the report "the digital economy" by the 2016, the economy of the digital universe will reach 4200 billion dollars. Active internet population will go from 1,9 billion in 2016 that means almost 45% of the entire population of the globe. Emerging popularity of mobile devices and the important social role that media plays in the entire economic environment will lead to changes in the approach of the internet by the companies witch will take advantage of the new business opportunities by no doubt. According to data from the report, access to the internet through mobile device, especially smart phones will grow until 2016, reaching about 80% of the number of broadband connection. Quick drop in cost for smart phones with cheap versions reaching, approximately 80% of the internet users will access the virtual space by using a cell phone.

According to government data, Romania is ready to step up to fully exploit the advantages of the digital economy by providing faster broadband and Internet services in the public trust by improving citizens' skills and encourage further innovation in IT &C ".

Google has ordered a study on the evolution of digital economy, and according to him provided that in four years three billion people will use the Internet, approximately 50% of the population.

Research suggests that Britain is one of the most advanced economies in the digital world. In 2012, the digital economy of the G20 group of countries was 2.3 trillion, larger than the economies of Italy or Brazil, but only 4.1% of the total savings from the G20 countries.

In the following period, approximately 80% of internet users will access the virtual space of the mobile Internet will become a social one, allowing customers and businesses to communicate with each other. This trend will be coupled with another huge technological trend that will fundamentally change how business is done, the development of so-called "Internet of Things", where all sorts of devices, from sensors to the car and the radiator will be connected to the Internet.

The giant technology IBM estimates that by 2015, a trillion devices will be connected to the Internet. Virtual space and real space will get so businesses need to adapt employees, processes and structures for the digital economy. BCG believes that entrepreneurs who are building their digital business overtakes their rivals which incoming digital economy.

Based on the strategy adopted for the period 2010-2020, the European Commission at the end of December 2012, adopted a "digital agenda" which were added some new priorities for the economy and digital society (http://tribunaeconomica.ro ). Although digital economy registered a growth rate seven times higher than the rest of the economy, this advance is diminished by the existence of a division of the Pan-European policies. European Commission Vice-President Neelie Kroes, believes that "2013 will be the busiest year for the digital agenda. The main priorities are increasing investment in broadband and maximize of contributions digital sector to the recovery of Europe".

Full implementation of actions under the Digital Agenda levels (increasing investment in ICT, improving labor skills, facilitating innovation in public sector, reform framework conditions for Internet-based economy), will increase European GDP with 5% or 1 500 EUR per person in the next eight years and achieve the digital single market by 2015.

The conditions under which not taken certain measures at pan-European, there is risk remain unfilled approximately one million jobs in the digital domain until 2015, and by making infrastructure will be created 1.2 million jobs work, which would result in an increase to 3.8 million the number of jobs in the economy, long term.

The main priorities which are outlined for the next period, 2013-2014, can be summarized as follows:

 creation of a new regulatory framework stable in broadband services - need more private investment in broadband networks, fixed and mobile high speed;

 creating a digital infrastructure for public services will accelerate the expansion of digital services for cross-border interoperability;

 formation and launch of the "Great Coalition to promote competence", which will aim: to increase the number of training sessions on information technology, the realization of direct connections between education and the business environment, adopt professional profiles and promote certification standard skills to support job mobility;

 ensure cyber security at EU level, providing the most online secure environments in the world, with due freedom and privacy of users;

 updating European copyright framework, revising and modernizing the EU legal framework will be realized full by 2014;

 stimulation system "cloud computing" based on the purchasing power of the public sector and creating the largest ICT market of kind globally, by dissolution narrow national frameworks and current negative perceptions of consumers;

 launch of a new industrial strategy in the electronics industry, to propose a strategy for micro-and nano-electronics, to increase the attractiveness of Europe for investment in design and production and to achieve a larger market share globally.

Although online shopping rate increased, the growth e-commerce of cross-border is too slow. Also, broadband high speed, know impetus during this period, stands still major differences between the various Member States, leading to the need for measures active at European policy level to be minimized and eliminated.

8. Conclusions

Digital economy requires increased knowledge in new products and services, increasing the importance of learning and innovation, globalization and sustainable development. Enormous amount of information change the functioning of markets, making possible the restructuring of enterprises and the emergence of new opportunities for creating value from information available. The digital economy is a state of the economy, the information obtained in many ways is stored in databases and its complex use is made of the premises or placed in public positions and corresponding activities and transactions by individuals and organizations.

The digital economy raises new plan information, focusing on the transparency of processes and to substantiate decisions is economics rigor, the accuracy and completeness in terms of updating data.

The digital economy is the increasing use of information technology (hardware, software, applications and telecommunications) in all aspects of the economy, including internal operations of organizations (business, government and non-profit), transactions between businesses and transactions between individuals, acting both as producers and consumers. IT enables the collection and processing large volumes of information, stimulate innovation, which gives organizations greater opportunity and incentive to increase quality and efficiency. In this way, we can say that this is the main driver of the global economy. Digital economy has produced enormous benefits, but the most important is that the developed countries and developing countries should ensure appropriate policies and programs to implement digital transformation. To be successful in today's economy, people need knowledge and understanding of computer and Web skills. IT has increased considerably the ability to develop new business models, products and services, processes and fundamental inventions.

The digital economy is the increasing use of information technology (hardware, software, applications and telecommunications) in all aspects of the economy, including internal operations of organizations (business, government and non-profit), transactions between businesses and transactions between individuals, acting both as producers and consumers. IT enables the collection and processing large volumes of information, stimulate innovation, which gives organizations greater opportunity and incentive to increase quality and efficiency. In this way, we can say that IT is the main engine of the global economy. Digital economy has produced enormous benefits, the most significant is that the developed countries and the developing policies and programs to ensure adequate to implement digital transformation. To be successful in today's economy people need knowledge and understanding of computer and Web skills. IT has increased considerably the ability to develop new business models, products and services, processes and fundamental.

Define clear procedures for verification of how the operators made additions to the database is essential to ensure all further processing. In the new economy we are witnessing important changes on the work, the focus will be increasingly more creative thinking and the products created are such intangible - information and knowledge.

The new laws, rules, standards and regulations developed - with the support and business opinion and civil society - have stimulated the development of some new information society services (commerce and electronic transactions, computerization of public services, citizen access and economic agents to public information, etc..), and also ensures ethical rules to work and live in a new company (protection of privacy and personal data, confidential transactions, consumer protection, etc..). In turn, the business community technologies must provide information and communications products and services of high technological level and also more affordable prices and rates. Also, ways must be found to form a new culture of competitiveness of undertakings in all sectors in the new economy, digital economy.

1. OECD Internet Economy Outlook, http://www.oecd.org/sti/interneteconomy/internet-economy-outlook-2012-highlights.pdf

2. Laura Lengel, THE INFORMATION ECONOMY AND THE INTERNET, JOURNALISM AND MASS COMMUNICATION – Vol. II - The Information Economy and the Internet - ©Encyclopedia of Life Support Systems (EOLSS), http://www.eolss.net/Sample-Chapters/C04/E6-33-03-01.pdf

3. INFORMATION ECONOMY REPORT 2012 , http://unctad.org/en/PublicationsLibrary/ier2012_en.pdf

Robert D. Atkinson,  and Andrew S. McKay, Digital Prosperity: Understanding the Economic Benefits of the Information Technology Revolution, March 13, 2007

http://www.itif.org/files/digital_prosperity.pdf

http://unctad.org/en/PublicationsLibrary/ier2012_en.pdf

Edward J. Malecki, Bruno Moriset, The Digital Economy: Business Organization, Production Processes and Regional Developments, Routledge, Business & Economics, 2008

EZZAT MOLOUK KENAWY, and MOHAMED FATHY ABD-EL GHANY, KNOWLEDGE-BASED ECONOMY VERSUS TRADITIONAL ECONOMY:

COMPETITION OR INTEGRATION, Ozean Journal of Applied Sciences 5(1), 2012 - 33 –

JOURNALISM AND MASS COMMUNICATION – Vol. II - The Information Economy and the Internet - Laura Lengel

©Encyclopedia of Life Support Systems (EOLSS)