Digitization for Economic Growth and Job Creation MyAssignmenthelp

Question: Discuss about the Digitization for Economic Growth and Job Creation. Answer: Introduction The mass adoption of the digital technology by different sectors of the society, governments, enterprises, consumers has materialized in the recent time. This acts a major economic driver which facilitates creating the jobs and speeds the development factors up. In the present scenario of the lethargic international economy, the digitization can play a significant role in encouraging the financial development and growth (Katz, Koutroumpis and Martin 2014). The analysts indicate that, even if the environment of international economy is quite unfavorable, digitization has provided a huge economic boost to the global financial output and created around six million global jobs in 2011 (Quaadgras, Weill and Ross 2014). However, the impact of digitization may have been different in different sectors. In addition to that, where the developed economies have higher financial developmental benefits of around twenty five per cent, the developing economies do not have the scope of having higher benefits (Turber and Smiela 2014). The primary reason behind this may be the conflicting impacts of digitization on the different economic structures. In this literature review, the specific economic impacts of the digitization on the targeted sectors are discussed. To define the digitization To investigate the impact of digitization on different sectors within any organization To evaluate the impact of digitization on employment To analyze the gap in the literature Defining Digitization According to Gooding, Terras and Warwick (2013) the level of digitization of a country can be determined through six major traits, such as, ubiquity, reliability, affordability, usability, speed and skill. The factor, ubiquity is the degree to which the organizations and consumers would have the global access to the digital applications and services; affordability is the degree to which the digital services are valued so that it is available to as much as people in the country; reliability is the quality of the affordable digital service; the speed is the degree which can determine the access of the digital service; usability is the easiness of using the digital services and the capability of the domestic services in boosting the service applications; the skill is the capability of the users in integrating the digital services as a part of their business and life. If the definition of digitization is concerned, according to Goldfarb, Greenstein and Tucker (2015) Digitization is the process of transforming analog material into binary electronic (digital) form, especially for storage and use in a computer. With the help of digitization, the materials can be converted to the analog formats which are read by people in a digital format that can also be read by machines. There are numerous devices such as the cameras, scanners which can be used in the digitization of the knowledge contents. These technologies enhance the process of digitization of almost all the materials including the photographs, rare paper documents, videos and sound recordings (Greenstein and Tucker 2015). Digitization helps in improving the access of the data resources. The projects with digital access allow the clients in searching for the rapid and comprehensive approach at any time anywhere. However, it is an expensive and time consuming venture, yet it is an influential met hod to deal with the issues with the continuous shortage of resources in the developing countries. The digitization comes with a lot of opportunities that ease the entire procedure of working. Especially the technologies like smart machines such as machine learning, robots; smart devices such as laptops, personal computers, smart phones, mobile networks and other smart digital techniques like big data, cloud computing, have shown some major advancements in the past decades. These improvements have huge social and economic impacts on the global scenario. In addition to that, these changes have important implications on employment. Several industries have been created due to digitization. Moreover, numerous industries have created millions of jobs for them who are involved with the technological sectors and for the advanced clients who may have the opportunity of using advanced tools and software as a primary component of their work across different industries. However, using the digital tools and technologies, the people have the ability of connecting anyone at any time. From using a simple mobile phone to the online platforms, the connectivity amongst people has increased in a larger way. According to Heeks (2013) the amount of potential beneficiaries has also increased who use the digital technologies as a part of their work or regular life. The approximate numbers of people who use mobile services on a daily basis have already crossed 3.6 billion. In the developing countries, the employment in the digital sector has increased in a remarkable way. According to Borowiecki and Navarrete (2017) in most of the OECD countries, the employment in the information and communication industry has generated around 5.74 per cent of the entire employment in the business sector. The countries of G 20 generated membership around 4.66 to 6.45 per cent. The countries with emerging economy have also benefitted as Bachi et al. (2014) shown that the IT industry of Brazil have generated around sixteen per cent of jobs between 2010 and 2013. The IT BPO industries of developing countries are flourishing and it has generated around 3.5 million workers all over the world. Sectored Impact of Digitization In order to understand the impact of digitization on the economic sectors, one should discuss the job creation opportunities and productivity across the developed and emerging economies. The application of digitization can affect various functions of any organization. The functions of any organization can be divided in four areas such as production, business, operation and market. Digitalization has a reflective effect on these sectors. The idea of digitization has an influencing effect on the management of production assets of the organization. The enables the company to shift the labor intensive jobs to the promising economies while it develops the client interfaces. This creates a huge amount of jobs in the market as it leads to the emergence of fresh and new technologies for manufacturing (Reed 2014). For instance, it can be said that Samsung works with Apple for the iPhone products but they also compete in the consumer market in an aggressive way. With the advancements of the 3D technologies, there are new ways to manufacture the complicated products; therefore it leads to the importation of jobs back to the emerging economies. Digitization has a huge impact on reshaping the business models. This helps in lowering the obstacles in expanding the business market and entering a new market. Therefore it helps the markets to expand its reach. For example with the emergence of the video calling facilities such as Skype or WhatsApp calls, it is possible for the companies to deal with their employees all over the world (Reed 2014). These digital facilities offer telephonic facilities to around five hundred million customers who can use the voice over Internet protocol technology and connect with anyone in the world who also uses the same. Therefore, these disrupts the existing business models for the operators all around the world, therefore numerous companies avail this facility for connecting to their employees. This enhances the opportunities of the companies to enter in a new market, therefore leading to generate new job opportunities. Digitization has changed the notion of building the products, brands and products and communicates with the customers. The organizations are now depending the social media and other new communication services to build their brands. Moreover the users are now finding more buying options online, even if they opt for buying new products offline. According to Coreynen, Matthyssens and Van Bockhave (2017) around forty per cent of the allover buyers use the online services to research about the items they are going to buy in the physical outlets. The digitization therefore enables the organizations in creating more products online that can align with the tastes of the consumers. The function of online technologies as a retail channel often tends to create a significant expansion in the market reach that leads to generate more job opportunities. The emergence of online technologies has created a new market online that has emerged more job opportunities in the market. The digitization also has a great impact on the companies in operating so that they can generate more competitive advantages. Due to digitization, more global entities have been created and that had ensures to be in touch across countries. Reed (2014) show that one of the four American employee telecommunicate on a daily basis showing the outsourcing of resources. Therefore, it makes them more efficient and it enables to create more job opportunities. Impact of Digitization on employment The degree and types of the impact that digitization has on the employment sector is mostly derived through the economic factors. As the digitization enhances the market access in a significant way, the growth of jobs tends to increase at the same time. However, for understanding the dynamic relation of employment and digitization, the scholars have examined the major economic activities in the market. Coreynen, Matthyssens and Van Bockhave (2017) have identified that there are five key areas that can divide the entire economy in three significant sectors: primary, secondary and tertiary. The primary sector includes farming, agriculture, mining and the processing of the natural products; the secondary sector includes the manufacturing such as building, making and assembling the primarily finished products; the tertiary sector includes the provided services to the businesses and the consumers that includes transportation, retailers, entertainment organizations, healthcare providers, b anks etc. Most of the literatures have focused on the analysis of the subsectors of the tertiary and secondary sectors where most of the activities are affected by digitization. However, in most of the literature, it is found that it tends to cluster on the manufacturing, financial services, retail and the hospitality sectors. Digitization has shown the least impact on the primary sectors. According to Coreynen, Matthyssens and Van Bockhave (2017) the nature of employment is changing in a broad way. These changes have influences not only in the quality of jobs and earnings; it also increases the individual risk that an employee bears. The links between the employers and the employees are shifting rapidly. The short term works now involve more micro jobs and online works. This review has mostly focused on the developed countries and the economy. Digitization has a huge impact primarily on three variables: growth per capita or GDP, creation of jobs and the innovation. Classifying the production functions models of assessing the economic impact has a huge impact on the economy of any country. If there is a continuous increase of the digitization by ten percentages, it triggers around 0.50 to 0.62 percent gain in the per capita GDP. However, most of the studies have focused on the penetration of broadband services that have established that there is a continuous gain of ar ound 0.16 to 0.25 percent. In addition to that, the below table shows that how the industry productivity, output and the employment with the development of digitization in different sectors. However, most of the literature on this issue has insufficient information in creating the job opportunities in certain sectors in the rising markets. It illustrates that the financial services and the manufacturing business in the world creates more job opportunities as they are able to transform their support activities to other countries where they have to spend lower cost for the labors. The companies have taken opportunities for off shoring their legal, financial, logistics and the communication services. The productivity gains in the financial fields are mostly the result of abilities in decreasing the labor costs while it tends to increase the output. Conclusion After conducting the literature review, it can be said that, there are not much sufficient data in the impact of digitization in the creation of job opportunities in the secondary sector. As the tertiary sector has been influenced mostly by the innovation and emergence of the digitization, most of the literatures have focused on that sector itself. The secondary sector includes the building, making and assembling the products. Therefore, from this literature review, a gap has been identified in the researches in the job opportunities in the secondary sector. Therefore, the further researches will be conducted on this issue. Reference list Agrawal, A., Horton, J., Lacetera, N. and Lyons, E., 2015. Digitization and the contract labor market: A research agenda. InEconomic analysis of the digital economy(pp. 219-250). University of Chicago Press. Bachi, V., Fresa, A., Pierotti, C. and Prandoni, C., 2014, November. The Digitization Age: Mass Culture Is Quality Culture. 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