New Media and New Digital Economy

- Overview

New Media is a 21st Century catchall term used to define all that is related to the Internet and the interplay between technology, images and sound. In fact, the definition of new media changes daily, and will continue to do so. New media evolves and morphs continuously. What it will be tomorrow is virtually unpredictable for most of us, but we do know that it will continue to evolve in fast and furious ways.

New media are forms of media that are native to computers, computational and relying on computers for distribution. Currently, some examples of new media are websites, mobile apps, virtual worlds, multimedia, computer games, human-computer interface, computer animation and interactive computer installations. 

Digitization is important because it is the foundational step for businesses to adapt to the New Digital Economy (NDE) and remain competitive. By converting physical information and processes into a digital format, companies can build the infrastructure needed to leverage digital technologies for efficiency, innovation, and growth. 

Digitization itself is a means to an end, a crucial step toward broader digital transformation and the development of next-generation digital platforms.

1. Key characteristics of new media: 

• Computer-native: New media are inherently digital and depend on computers for their functionality and distribution.
• Constantly evolving: The field of new media is dynamic and rapidly changing, making its definition and future trajectory unpredictable.
• Relies on the Internet: It is intrinsically linked to the internet and other telecommunications networks for its reach and communication.
• Interactive and Participatory: Unlike traditional media, new media platforms allow for seamless interaction, collaboration, and the active participation of users.

2. Examples of new media: 

• Websites and mobile apps 
• Virtual worlds and computer games
• Multimedia, computer animation, and digital installations
• Social media platforms
• Podcasts and streaming services
• Digital newspapers and e-books

3. Role in the digital economy: 

New media are forms of media native to computers and reliant on computational technology for their creation and distribution, encompassing a continually evolving range of internet-related content like websites, mobile apps, virtual worlds, computer games, and digital animations. 

This encompasses digital content such as music, podcasts, social media posts, and digital newspapers, fundamentally differing from traditional media by its reliance on digital technology for broad distribution and interactivity. 

New media plays a crucial role in the new digital economy by enabling communication, collaboration, commerce, and community building on a global scale. 

Businesses leverage new media to create and distribute content to raise brand awareness and increase product sales, while individuals use it to stay informed, connect with others, and access entertainment and educational content.

- Digital Changes Driving the New Digital Economy

The key digital changes driving the "New Digital Economy" are "sharing, collaboration, and on-demand access" facilitated by technology, "hyperconnectivity" through the proliferation of interconnected devices and data streams, and the rise of "artificial intelligence and machine learning" which enables advanced data analysis and automation, fundamentally altering how information is produced, consumed, and utilized in the digital age.

• Sharing, collaboration, and on-demand access: Digital technologies like the internet and social media platforms make it easy to share information freely, fostering collaboration across borders and creating new business models based on on-demand access to services.
• Hyperconnectivity: The Internet of Things (IoT) and other connected devices generate vast amounts of real-time data, enabling seamless communication between machines and people, leading to increased efficiency and automation.
• Artificial intelligence and machine learning: AI and machine learning algorithms allow for sophisticated data analysis, prediction, and decision-making, enabling the development of new products, services, and business models that were not possible before.

- Why is Digitization So Important? 

Digitization is important because it is the foundational step for businesses to adapt to the New Digital Economy (NDE) and remain competitive. By converting physical information and processes into a digital format, companies can build the infrastructure needed to leverage digital technologies for efficiency, innovation, and growth. 

Digitization itself is a means to an end, a crucial step toward broader digital transformation and the development of next-generation digital platforms.

Key reasons for the importance of digitization include: 

• Fuels the New Digital Economy: Digitization provides the essential data for firms to capitalize on the NDE, which is reshaping markets and daily life. It enables companies to collect information on assets, suppliers, workers, and stakeholders, which is necessary to drive strategic decision-making in a data-driven economy.
  
• Increases efficiency and productivity: By automating repetitive tasks, such as converting paper records to digital files, digitization streamlines business operations. This reduces manual labor, eliminates time spent searching for physical files, and frees up employees to focus on more complex, value-added tasks.
  
• Enhances data-driven decision-making: The process of digitization provides companies with a wealth of digital data that can be analyzed to gain valuable insights. This data can help businesses understand customer behavior, identify market trends, and make informed strategic decisions to improve operations and drive growth.
  
• Creates a shortcut for services with limited resources: For areas with few resources, digitization offers a "shortcut" to developing useful, data-driven services for people. This can improve access and efficiency in industries like healthcare and finance, benefiting both customers and businesses.
  
• Drives innovation and new business models: By providing the raw material of data, digitization enables next-generation digital platforms that are central to modern business. These platforms foster innovation by supporting agile development, real-time feedback, and the creation of entirely new services and applications. The emergence of new platforms, including those incorporating AI, allows companies to experiment with different business models.
  
• Enables wider participation: Digitization can help level the playing field, allowing smaller players to capture value and compete with larger corporations. Digital platforms and e-commerce can reduce barriers to market entry, giving smaller businesses access to a global market and greater price transparency.
  
• Improves customer experience: In the digital age, customers expect fast, seamless, and personalized experiences. Digitization allows businesses to meet these expectations by collecting customer data and using it to offer tailored services, improve accessibility, and provide instant communication.
  
• Fosters agility and flexibility: By moving processes and data to cloud-based systems, digitization allows businesses to be more flexible and respond quickly to changes in the market. This enables them to scale operations up or down as needed without significant investment in infrastructure.
  
• Secures information: Properly implemented digitization, including the migration to secure digital platforms and cloud storage, can protect sensitive data from physical damage and enhance security through encryption. Digital backups can also ensure better data recovery in case of a catastrophic failure.