Digital Economics from Development Side

Alex

IT

Published on:

October 18, 2021

According to the Bitkom Research of 2021, 90% of those involved can no longer imagine life today without the new digital technology. At the same time, 80% voted in favor of new digital technologies making life easier. 

Among the respondents out of a total of 1004, 76% were able to operate a computer or smartphone properly.

The world as we know is continually changing. Billions of connections among people, organizations and devices over the Internet. This affects of course also how businesses are structured, firms interact and consumers obtain services and products. 

The traditional boundaries and value proposition of the industry changed over the last decades. This process of digital transformation can be summarized under the term Digital Economy. Often you can find a translation of the term as Internet Economy, New Economy, Web Economy.


What can be understood by the term digital economy?

The term defines the adoption of digital technology to transform services or businesses.

This is done by replacing manual (non-digital) processes with digital ones. This also includes replacing outdated digital technology with upgraded technology.

“It’s about using the latest technology to do what you already do – but better.”

The mountain term should first be understood as a generic term. This generic term is subdivided into subcategories such as Big Data, IoT, Industry 4.0 and Work 4.0 etc.

In this article, we will first mention the basic features of the digital economy. Later on, the most important factors will be discussed from the perspective of software development.

What leads to the digital economy?

Especially in the time of the pandemic, it has become important to stay connected with the company even while working at home. It is an expectation to have the same level of connectivity as in the physical office.

On the consumer side, everything is ordered and managed online these days. 

These two sides are combined in the model of networking. 

Digital technologies are making communication at work more transparent, no matter where you work. Examples for this are tools like Asana or Slack. Digital technologies give companies a better understanding of how business processes work or should work to adapt to the digital transformation. It can be used to optimize and improve processes. This leads to the fact that processes can also be simplified and rethought. 

For consumers, it means that products and services are individually tailored through automated processes. That’s why it’s becoming increasingly important for companies to be accessible online.

The interface between the entrepreneur and the consumer can be e.g. web applications, smartphone apps. These require special knowledge of the software developers who stand as a bridge between these two. It is important not only to be able to program, but also to recognize what is needed and how to implement this process in the best possible way. The main focus is on economic efficiency and sustainability.

What does “Big Data” mean as a Software Developer?

Big Data generally stands for a complex, large and rapidly growing collection of data that cannot be used without further mechanisms and processing.

The volume of data that is stored is initially unstructured. In today’s companies, this can be in the order of tera or petabytes.

Velocity describes the speed at which data is generated and transmitted simultaneously. For example, this data is stored directly on storage media or processed directly, as in the case of a filter unit.

The diversity of the collected data is reflected as the data can be unstructured with different data types.As an example would be text, audio or video data.

Depending on the type, it requires a different approach to the data.

Determining the informative value of data and drawing the right conclusions is an important Key-factor for a company. As a software developer it is the task to use this data correctly and to process only the key data because of the amount of data.

How can the amount of data be used as a Software Developer?

As new technologies allow data to be stored in smaller and smaller spaces, the ability to store larger data more conveniently grows. In the field of software development, data is filtered by keywords. In the process, what the user is looking for is used to make future predictions.This principle is for example also used by Netflix. As a software developer, it is crucial to transform this information correctly in order to create a better customer experience.The customer experience is essential in the development of apps. Often it is decided in the first few minutes whether the user will keep an app or look for another alternative.

For developers it is also important to avoid mistakes before they happen. It helps therefore to interpret the data correctly and to exclude possible sources of error.

The importance of data security and data protection compliance

Nowadays it is more and more important for the users that their data is secure. We often hear about data breaches at large corporations like Twitter, Facebook & co. To prevent this, important training and external courses in companies have become a big factor. The role and possibilities are increasing more and more due to digital networking. This is of course also necessary because digital growth also leads to more risks of being attacked. As a software developer, the most important thing is to have the latest data protection capabilities and to prevent data leaks. Also here it helps to process and analyze the data correctly. Control mechanisms must be in place before a security risk can even arise. 

What are the requirements for IT security systems in terms of cost-effectiveness?

The required measures should be as efficient and sustainable as possible. Sustainability means systems that are long-lasting and at the same time adaptable in order to prevent newly emerging risk factors.

How can the profitability of a company be supported as a software developer?

Basically, the benefits of IT can be divided into two main areas. One is the monetary benefit and the other is the non-monetary benefit.Non-monetary benefits include the reduction of workload and the simplification of processes. One goal is to increase customer satisfaction, which leads to the creation of repeat customers or the interest of new customers in products. Not only the satisfaction of the customers is in the foreground but also the satisfaction within a company. This also includes new applicants who are acquired through software applications or applicant portals.

It is also important to provide added value for the company, for example, in the marketing uses. Monetary benefits include providing more revenue while using less material or labor. This is mostly done through automated processes. In this area, the correct handling of data plays a role.

As a software developer the job is to realize customer wishes. There is a scheme according to which is proceeded. The first step is to create a requirement specification with the dialog to the customer. In this first step the framework of the IT project is defined. This is based on the customer requirements and the expertise of the developer in how far and with which solutions the project can be implemented. All functions to be performed are included and prioritized as far as possible. A good developer has, depending on experience, certain implementation variants already as a solution and can support the customer in selecting the right models.The right models include, as in the previous sections, security and user experience strategies. The next step is the design of the software in the form of flowcharts such as use cases diagram. It is important here to be in constant exchange with the customer in order to respond to individual wishes.  The implementation is done in the programming language appropriate for the application. The last two steps are to implement and test the software solution. It is important that the customer receives the software optimized for its purpose. It is important that also technically less experienced users are offered the best possible user experience.

Conclusion

In an ever faster spinning world and growing digital growth, it is important to remain adaptable. The economy is undergoing a transformation that brings both benefits and risks. This is where creative solutions are needed, especially as a software developer. By analyzing large amounts of data, it is possible to make predictions that lead to an increase in sales for the company. This influences the profitability of a company. At the same time, risks such as cyberattacks and data leaks are growing. The amount of data must therefore also be well protected. Here, it is becoming increasingly important how the data is handled. Companies must act now to remain competitive. One goal is to choose the right strategies.