Analysis of Digital Economy Report: [University Name], Semester 2

This report provides an in-depth analysis of the digital economy, focusing on the Australian context. It examines the definition of the digital economy and its importance, referencing key concepts such as the 'Internet Economy' and the impact of digital technologies. The report analyzes a specific paper by the Australian Government regarding its strategy for the digital economy, which aims to maximize the potential of digital technology, improve productivity, and enhance competitiveness. It discusses the strategy's focus on government, businesses, and communities adapting to digital transformation, including emerging technologies and the growth of Australian industries. The analysis includes an assessment of Australia's readiness for the digital economy, its performance in global rankings, and the uneven rate of digitalization across various sectors. Furthermore, the report explores digital trade in Australia and the government's efforts to create a stable environment for businesses, as well as initiatives to improve digital literacy, particularly among young Australians. The report concludes by emphasizing the need for strategic development to fully realize Australia's digital economy potential, highlighting the importance of robust communication and the cultural implications of technological advancements.

Running head: ANALYSIS OF DIGITAL ECONOMY
Analysis of Digital Economy
[Name of the Student]
[Name of the University]
[Author note]

1ANALYSIS OF DIGITAL ECONOMY
Table of Contents
Introduction:...............................................................................................................................2
Discussion:.................................................................................................................................2
Analysis of the Paper:................................................................................................................2
Main aim of this paper:..............................................................................................................3
Analysis of the strategy:.............................................................................................................4
Analysis of the readiness of Australia:.......................................................................................5
Analysis of digital trade in Australia:........................................................................................5
Analysis of the improvement of digital literacy:........................................................................6
Conclusion:................................................................................................................................6
References:.................................................................................................................................7

2ANALYSIS OF DIGITAL ECONOMY
Introduction:
Digital Economy mainly refers to the economy which is mainly based upon the digital
computing technologies. Digital economy is also referred to as the “Internet Economy”, “the
New Economy” or the “Web Economy”. The definition is made much harder when the term
“digital economy” is intertwined with the traditional form of economy (Tapscott, 2014). It
can also be described as the range of economic and the social activities which are enabled by
the technologies related to communication and information. Some of the major things
included in the digital economy are banking, buying and selling, accessing the entertainment
or education and many more. The contents of the paper named “The digital economy:
Opening up the conversation – the Australian Government” have been analyzed in this report.
The report also discusses about the various things that are related to the digital economy of
Australia. The Australian Government is thinking of developing a new strategy for the
“Digital Economy” which will be a forward looking plan for the maximization of the
potentials of the digital technology. Along with this it will also be helping in the
improvement of the nations productivity. Besides this the strategy will be helping a lot in the
improvement of the competitiveness which is mainly associated with the minimization of the
negative effects. The main focus of the strategy will be on the various ways in which the
Government, businesses and the communities are capable of adjusting so as to seize the
various benefits of the digital transformation (Frey & Osborne, 2015). The strategy would
also include the new the emerging technologies which are associated with the digital
infrastructure and will be helping in the growth of the Australian industries and jobs.

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Discussion:
Analysis of the Paper:
The success of Australia is greatly dependent upon the “Digital Economy” along with
the technologies that underpin it. Many new opportunities are created for the communities as
well as for the business. Along with this it also drives the competitiveness, productivity and
the connectivity of strengths across the whole country (Weber & Burri, 2012). Digital
business will be allowing the business to work in a smarter way along with the saving of time
as well as accessing the new markets, customers and information (Whittle et al., 2012). The
business which are digitally advanced are more innovative along with more likely to be
growing revenues along with creation of new jobs.
As the technology and science are developing at a rapid rate making them capable of
changing the ways of life along with the work and the ways in which a business is done.
There are various challenges which rises due to this changes. Along with this many
opportunities are presented so as to increase the wellbeing of the peoples of Australia along
with securing their jobs. There is an immense potential by the Digital technologies to drive
the competitions along with the innovations and the productivity (Ng, 2014). The evidences
show that the investment of the business in the digital technology ultimately results in the
high production.
Main aim of this paper:
This paper mainly indicates the starting of the conversation amongst all the
Australians about gathering of their ideas so as to help in developing new strategies. Once the
responses are gathered, the Government of Australia will then be able to identify all the keys
issues along with the key challenges and the opportunities (Tapscott, 2014). Followed by the
identification process will be the development process.

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Three broad themes are considered in this paper for the purpose of broader digital
economy and they are listed below:
 Enabling followed by the starting so as to support the digital economy.
 Building of the competitive strength so as to drive the productivity along with the
rising of the capabilities related to digital business.
 Providing empowerment to all the Australians by means of digital skills and
inclusions.
Analysis of the strategy:
The announcement of the Australian Government on 19th September in the year of
2017 stated that they will be working for the development of National Digital Economic
Strategy. This strategy would be developing a roadmap for the Government of Australia
(McWilliams, 2015). This strategy will also be working as a roadmap for the private sectors
as well as the community so as work for different purposes and this includes the following;
 Building up of the competitive strength along with the development of new strategies like
the
 Driving of the productivity that are existing within the industries right now.
 Taking advantages from the various type of changes that are taking place right
now in the economy.
 New sources of growth are to be opened so as to make Australia sustainable in
the future
 Development of the capabilities of the world leading digital business so as to engage in
the high growth of the business of different sizes.
 Driving of the culture as well as the mind-set so as to support the life-long learning along
with a global outlook which in will be helping in positive response to the changes.

5ANALYSIS OF DIGITAL ECONOMY
 Addressing the people of Australia about the digital divide skills and the conditions so as
to help them succeed in the digital economy.
They government of Australia also stated that they will be launching all these
strategies by the starting of 2018. This will be done after following an open conversation with
the Government along with various businesses and communities.
The Government of Australia have been supporting various actions on a diverse range
of digital economy. This initiative has been taken by various agencies (Yip et al., 2012). The
main purpose of this strategy includes the drawing together along with complement and
building of the initiatives that are already existing.
According to the Government of Australia when this strategy will be implemented in
the year of 2018 then it will be capable of creating a scenario. This scenario would be
continuation of the discussion and debate with the Australian public on the digital future.
They should also make sure that they are up to date. By staying updated the strategy will be
continuing to evolve in future as well.
Analysis of the readiness of Australia:
The paper helps to understand that Australia is having a mixed performance in the
digital economy. Australia has been ranked 18th in the World Economic Forum’s Readiness
Index after slipping two places from the previous years. This Index mainly measures the
capacity that a country is having for leveraging the Information and Communications
Technology so as to make improvements in the competitiveness along with the wellbeing
(Huws, 2014). A recent report of McKinsey stated that there in an uneven rate of
digitalisation in the industries of Australia which means that it is far away from its full
potential. There is a low level of digitalisation in the construction and agriculture field
whereas the financial and professional services are leading in digitalisation. By 2025 the

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contribution of digital technologies will be around $140billion to $250 billion in the GDP of
Australia.
Analysis of digital trade in Australia:
Certain rules are being pursued by Australia for the purpose of creating a consistent
environment which will be predictable as well as stable for the business. by the Australia’s
Aid for the investments in trade, the Australian government will be greatly helping in the
building up of the capabilities of partners of the developing country so as to implement the
regulations and the standards which will be facilitating the global trade. By these type of
investment, the developing countries will be encouraged so as to uptake the technologies
which will be making the trade much more efficient (Dijk et al., 2013). There are notable
technologies and expertise in the Australian firms in this field.
Analysis of the improvement of digital literacy:
Australian Government is trying very hard for the improvement of digital literacy.
Various initiatives are contained in the National Innovation and Science Agenda so as to
equip all the Young Australians for the purpose of creating and using the new digital
technologies along with inspiring of STEM literacy at the early stage of education (Weill &
Woerner, 2013). Expansion of opportunities for the women are being included in the stem for
which there has been an investment of about $13 million in five years. This is to encourage
more women’s so as to choose STEM along with staying in STEM research which is related
to their career, start-ups and entrepreneurial firms.
Conclusion:
Australia is having much more strength in some significant areas. There is a need of
developing strategies that will be greatly helping out the country of Australia in fulfilling the

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various potentials. To work and function in the best way there is an essential need of robust
communication. Along with many opportunities caused due to the changes in the technology
there is also a wider implication of the technology in a cultural way. It has also been
recognised that the technology and humanity are responsible for shaping each other. This
helps in understanding the fact that a deeper understanding needs to be developed for the
purpose of understanding how the cultural and the ethical values are retained. This is
included as one of the important factor. The dependency of the people on internet is growing
more and more for the purpose of conducting the activities on a daily basis.

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References:
Dijk, A. I., Beck, H. E., Crosbie, R. S., Jeu, R. A., Liu, Y. Y., Podger, G. M., ... & Viney, N.
R. (2013). The Millennium Drought in southeast Australia (2001–2009): Natural and
human causes and implications for water resources, ecosystems, economy, and
society. Water Resources Research, 49(2), 1040-1057.
Frey, C. B., & Osborne, M. (2015). Technology at work: The future of innovation and
employment. Citi GPS.
Huws, U. (2014). Labor in the global digital economy: The cybertariat comes of age. NYU
Press.
McWilliams, D. (2015). The flat white economy: How the digital economy is transforming
London and other cities of the future. Gerald Duckworth & Co.
Ng, I. C. (2014). New business and economic models in the connected digital
economy. Journal of Revenue and Pricing Management, 13(2), 149-155.
Tapscott, D. (2014). The Digital Economy Anniversary Edition: Rethinking Promise and
Peril in the Age of Networked Intelligence New York, NY: McGraw-Hill, Reviewed
by Howard A. Doughty.
Weber, R. H., & Burri, M. (2012). Classification of services in the digital economy (Vol. 53).
Springer Science & Business Media.
Weill, P., & Woerner, S. L. (2013). The Future of the CIO in a Digital Economy. MIS
Quarterly Executive, 12(2), 65-75.

9ANALYSIS OF DIGITAL ECONOMY
Whittle, J., Ochu, E., Ferrario, M. A., Southern, J., & McNally, R. (2012). Beyond research
in the wild: Citizen-led research as a model for innovation in the digital
economy. Proc. Digital Futures.
Yip, M., Shadbolt, N., Tiropanis, T., & Webber, C. (2012). The digital underground
economy: A social network approach to understanding cybercrime.