Digital Economy

Description

1. Understand what the digital economy is: Definition of the digital economy (scientifically, the digital economy studies intangible goods, which by definition are non-rival goods with zero marginal cost). It contrasts with the traditional economy where: costs and revenues evolve together linearly; progress and change are gradual (linear over time); value is often labor-based. The decoupling from physical goods justifies this non-linearity, which appears at all levels (virtualization is an example of decoupling from physical goods, but this applies to all software). 2. Business phenomena: understand what digital changes in business. Start-ups and scale-ups (how they differ from small and medium enterprises). Valuation (difference between discounted cash flow and narrative valuation). Innovation and disruption (what they really are and why they matter). Winner takes all. Network effects. Disintermediation. Collaborative economy. Third-party monetization: advertising, interaction (two-sided market). 3. Legal phenomena: what every digital actor must know about the law. The importance of data - GDPR. In the pre-digital world, it was easy to be on a do-not-contact list or hide one's address. More difficult in the digital world where traces are less controlled. Patents and copyrights: engines and brakes, possible strategies. 4. Transformation towards digital and consequences. The course continues...