Task Two ( Old Economy and New Economy )

Question 1
Read any articles on Digital Economy. Summarize, then differentiate 'Old Economy' with 'New Economy'.

It may be helpful to describe the “old economy” before we talk about the “new
economy.”
 
From around 1938 to 1974, the economy was built on a manufacturing base geared toward standardized production. It was organized into stable, hierarchical and generally autocratic organizations. These organizations achieved a competitive edge in the market by making standardized products faster and more economically. They focused on incremental cost reductions and a national market-place. This is how success and prosperity were achieved in most states. In Alabama, examples of this type of organization could be found in textile and steel mills. This economic order began breaking down between the mid-1970s and the early 1990s.

The Old Economy will be least using computer, the people won't use online to buy or shop online to search and purchases. They will go outside purchase some goods. But now a day, they are changed. It is the New Economy, they already learn how to purchase product by using Internet. They will search for the product and compare the price, the quality of the product and so on. (Old Economy and New Economy, 1999)

                               Table 1 : Comparison of The Old Economy and The New Economy
                                            Sources : Old & New Economy Article


Question 2
Look for any organisation on the net. Discuss on how the organisation is currently using the Internet, to perform digital Economy. For an example: Amazon organisation
- This organisation is using the Internet to conduct virtual organisation. Through amazon.com/amazon.co.uk, all business activities, buying and selling of products, offers of services, all being provided online.
- Also outline the benefits and challenges of the services/digital economy.


Barnes & Noble is the organisation that also using the Internet to conduct virtual organisation.
All business activities, buying, selling, comparing, searching the right product and so on.

The Benefits is the customer or consumer no need to go outside to search for the product. They can only sit down at home open their PC, online to purchase the product that they want. It is easy to do online shopping.

The Challenges of the organisation is there are so many digital economy organisation.
(Barnes and Noble, 2011)



References :
Old Economy and New Economy
Old & New Economy Article
Barnes and Noble