ECONOMYTECHNOLOGY

The Information Technology Economy: 7 Key Things to Know

Are you tech-savvy? As the pandemic takes over the world and we are reaching a point where the digital revolution that has been talked about for so long is finally here.

So what impact will this have on the economy? And what is the technology economy like now? How can you take advantage of it to suit your needs?

If you’re thinking of setting up an online business and want to know how it shapes up compared to the traditional market, here’s everything you need to know.

1. Nearly 7% GDP

At the moment, according to current statistics, U.S GDP for the digital or technology economy is around 7% or $1.35 trillion, according to the U.S Departement of Commerce.

This is a huge sector of the economy and shows just how much tech is dominating every aspect of our lives and the role of information technology in the economy.

The digital economy is worth more to the economy than wholesale trade, retail trade, construction, accommodation, and home services, and a host of other services.

2. This Will be Higher Due to COVID

Because of the Corona crisis, everything is going online, and GDP for the digital sector will likely increase dramatically over the next few years. This is one of the benefits of technology in the economy.

While most industries were moving in the direction of the online world. This was happening gradually. The 2019-20 pandemic has accelerated that process, ten-fold as businesses are rushing to keep up with the situation and find a way forward.

This means that businesses that were face-to-face will now be included in the digital or technological economy.

The book industry is one industry which it has moved to the online world almost overnight. Although publishers in Britain have moved some of the publication days forward because of Corona Virus, many authors have opted to do all of their events online. And the market is also oversaturated with it.

3. Everything Is Going Online

Many industries previously had one foot in the online world and still had a foothold in the retail world. Corona has changed that, and now all industries, including those we never traditionally thought of, are going online.

If you need help in setting up your business to make sure it is ready for this brave new world, please reach out to ADVANTEX to see if we can assist you.

4. The Online Work Revolution on the Housing Marketing

Offices around the country are all being closed down as companies start to see the value of letting their employees work from home and how that can free up space. These empty buildings can then be sold off to solve the housing crisis.

There is a major exodus away from the major city hubs of Los Angeles, New York, and London as people realize they no longer need to live there anymore.

This will lower rent prices across the country and see a greater diversity of different accents and cultures represented in the major business sectors.

5. Food and Drink

Food and drink delivery services increase their revenue by selling off their dine-in restaurants and just serving from a kitchen.

The sale of physical premises and all the furniture that comes with it means that rent payments are less of a burden. But it also means these businesses need to increase their investment in online marketing and an online platform to help them get their goods to customers.  Services like Uber Food can work here.

6. The Art and Entertainment World

With art galleries closed around the world because of the pandemic, most of them have novel ways to go digital and become part of the digital economy.

Many of them have posted lectures by experts talking about their collections and have provided high-quality images of their portraits and pictures for users to see. This will increase traffic to the website and shift the focus away from physical events making art galleries part of the digital economy for the first time too.

While some cinemas have delayed the opening of their films, such as the new James Bond films, other distributors have opted to release them straight online to streaming platforms.

Interviews with the cast and directors are streamed online in lively events rather than red carpet event. Stars can even still get dressed up from the comfort of their own homes.

7. Television in Decline

More and more people are turning to YouTube as a viable business model and replacing this with traditional television. Viewing figures for partisan news networks such as Fox and MSNC are in terminal decline like never before.

Meanwhile, You-Tubers on both sides of the political debate has developed their own shows to professional quality. They can generate income through contextual based product placement and advertising.

You-Tube can provide an excellent business for young and aspiring actors and stars who can’t get a foot in the traditional industry. Since television shows often have to be filmed at home now, You-Tubers are better placed at filming remotely.

The economic impact is huge as it means the decline of traditional channels, and some may even start to shut down.

Technology Economy

The technology economy is booming like never before. Every industry is moving online because of the pandemic, and this is having a transformative effect on society at large.

Space in large warehouses and offices is becoming available for development, and people are moving out of the big cities. This will, in turn, change how people spend their money and where they spend in.

If you are interested in reading more about the technology economy, be sure to check out the rest of our site.