INTERNATIONAL JOURNAL ON ORANGE TECHNOLOGIES

www.journalsresearchparks.org/index.php/IJOT e- ISSN: 2615-8140|p-ISSN: 2615-7071

Volume: 02 Issue: 12 | December 2020

The emerging business models in the digital economy

PhD. Porsayev G.
Samarkand State University
--------------------------------------------------------------***--------------------------------------------------------------
Abstract: The article highlights various business models Various online retailers initially adapted the business
in the modern economy under the circumstances of the model of brick-and-mortar stores by selling traditional
digital economy. In particular, the impact of physical goods (for example, books) digitally. Online
digitalization in sectors of retail, healthcare, intermediaries that allowed the discovery, sale, and
manufacturing, education and others are discussed. purchase of goods and services such as vehicles, homes,
and jobs were another early category. Other digital
Key words: digital technologies, business model, players specialized in the online selling of traditional
cost, integration, start-up. services (for example, online insurance brokers).
Retailers then began selling digital products and
1. Introduction services, like downloadable and streaming music and
The rapid development over the last ten years of movies, executable code, games, and services based on
digital technologies fundamentally changes the nature data processing, increasingly blurring the line between
of the productive forces and market relations in the goods and services as businesses continued to develop.
world, offers completely different forms and ways of Online advertising similarly started from traditional
development based on combining digital opportunities advertising business models, becoming more
and human resources. sophisticated as the potential of digital technology
All sectors of the economy have adopted ICT to became fully integrated into the industry. New online
enhance productivity, enlarge market reach, and reduce services enabling a sharing and service economy have
operational costs. Together, these technologies have also appeared, allowing people to rent out their homes,
expanded market reach and lowered costs, and have vehicles and skills to third parties.
enabled the development of new products and services. As technology has advanced and costs of ICT
These technologies have also changed the ways in which have continued to fall, ICT has proven to be general-
such products and services are produced and delivered, purpose technology that has become embedded in and
as well as the business models used in companies central to the business models of firms operating across
ranging from multinational enterprises (MNEs) to start- the economy. Businesses across all sectors are now able
ups. They also support activity by individuals and to design and build their operating models around
consumers, and have led to the creation of new payment technological capabilities, in order to improve flexibility
mechanisms including new forms of digital currencies. and efficiency and extend their reach into global
The advent of the Internet brought major changes first markets. Businesses across all sectors have changed the
to the entertainment, news, advertising, and retail way their business is conducted by taking advantage of
industries. In those industries, the first major digital advances in communications and data processing
players initially started from traditional business capacity to lower transaction costs and extend their
models, adapting them to better end-user equipment reach into global markets.
(both inside and outside organizations) and more These advances, coupled with liberalization of
extensive interconnection through the Internet1. trade policy and reduction in transportation costs, have
expanded the ability of businesses in all sectors to take
advantage of global value chains in which production
1
OECD. The digital economy, new business models and key processes can be geographically dispersed in locations
features. Chapter 4. P 70
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 INTERNATIONAL JOURNAL ON ORANGE TECHNOLOGIES
www.journalsresearchparks.org/index.php/IJOT e- ISSN: 2615-8140|p-ISSN: 2615-7071
Volume: 02 Issue: 12 | December 2020

around the world to take advantage of the features of - identification of state and economic bodies,
local markets. For example, in sectors relying heavily on local self-government bodies on the basis of necessary
technology and research and development, design and information systems and resources, implementation of
production can be managed centrally, while the software and electronic services;
assembly can be fragmented in different countries to - creation of favorable conditions for attracting
take advantage of skilled labour and local resources. foreign investments in the country by organizing the
2. Literature review. technology market and technology parks on the basis of
The emergence of modern communication tools the digital economy, information technologies market,
and digital platforms-aggregators, access to which can including public-private partnerships;
be provided from the smartphone, have united people, - coordination of modern telecommunication
assets and information, and created new ways of infrastructure, development of communication
consuming goods. Thus, contacts in a virtual network technologies and networks, introduction of modern
are established almost free of charge. The new business telecommunication services;
model was called the economy of joint use, sharing - increase of the digital economy through the
economy, as it is not based on the possession of assets, introduction of electronic services in the field of public
but on temporary access to them, rent, barter [1]. For administration and economics, development of the e-
the consumer it is often more profitable to pay for commerce and software market;
temporary access to the product than to own it. - development of proposals for the development
Media Strategy Specialist Tom Goodwin notes: of the national segment of the Internet, organizational,
“The world's largest taxi company, Uber, is not the material and technical and economic support for digital
owner of vehicles. The most popular media owner in the media content;
world Facebook does not create content. The most - development of "intellectual systems" for the
expensive retailer Alibaba does not have a stock of management of urban and regional infrastructure, in
goods. The world's largest provider of temporary particular housing and communal services, transport
residence services Airbnb is not the owner of real logistics, safe and "smart cities";
estate” [2]. -improvement of the system of training qualified
The sharing economy is also known as a personnel.
cooperative economy or peer-to-peer economy. One of The functions of the Commission are as follows:
the pioneers in the sharing economy, Ms. Robin Chase, - in 2 months, the state of the information and
Founder and CEO of Buzzcar, co-founder and former communication technologies in state agencies, including
CEO of Zipcar has the formula for the sharing economy: the inventory of information systems and the provision
𝐼𝑑𝑙𝑒 𝑟𝑒𝑠𝑜𝑢𝑟𝑐𝑒𝑠 + 𝑝𝑙𝑎𝑡𝑓𝑜𝑟𝑚 + 𝑝u𝑏𝑙𝑖𝑐 𝑝𝑎𝑟𝑡𝑖𝑐𝑖𝑝𝑎𝑡𝑖𝑜𝑛 = 𝑡ℎ𝑒 of personnel;
𝑠ℎ𝑎𝑟𝑖𝑛𝑔 𝑒𝑐𝑜𝑛𝑜𝑚𝑦. [3]. - submit proposals to the Cabinet of Ministers to
Uzbekistan is also paying attention to digitalize improve this direction until 2018.
its economy. According to the Ministry of Information At the same time, by 2030 it is planned to
Technologies and Communications, the draft implement measures to develop the concept of "Digital
resolution of the Cabinet of Ministers sets the Uzbekistan". The draft resolution will continue to be
following directions for the development of digital discussed until August 31 this year.
economy in the Republic of Uzbekistan2: 3. Main part.
Sectors as diverse as retail, logistics and
education have changed and keep changing due to the
2
https://kun.uz/en/news/2018/08/18/the-main-directions-of- spread of ICT:
development-of-the-digital-economy-in-uzbekistan-are-
determined
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 INTERNATIONAL JOURNAL ON ORANGE TECHNOLOGIES
www.journalsresearchparks.org/index.php/IJOT e- ISSN: 2615-8140|p-ISSN: 2615-7071
Volume: 02 Issue: 12 | December 2020

Retail: The digital economy has enabled retailers routine processes and agricultural equipment can be
to allow customers to place online orders (often fulfilled managed through automated systems.
from a local store) and has made it easier for retailers to Education: As the digital economy spreads,
gather and analyse data on customers, to provide universities, tutor services and other education service
personalised service and advertising. It has also enabled providers are able to provide courses remotely without
retailers to manage logistics and supply stores with the need for face to face interaction through
products, which has had a significant, positive impact on technologies such as video conferencing and streaming
productivity. and online collaboration portals, which enables them to
Transport and Logistics: The logistics sector has tap into global demand and leverage brands in a way
been transformed by digital economy, which enables not previously possible.
the tracking of both vehicles and cargo across Healthcare: The digital economy is
continents, the provision of information to customers revolutionizing the healthcare sector, from enabling
and facilitates the development of new operational remote diagnosis to enhancing system efficiencies and
processes such as Just In Time delivery in the patient experience through electronic health records. It
manufacturing sector. Vehicle telemetry also helps also allows opportunities for advertising, for example of
maximise fuel efficiency, ensure efficient use of the drugs and other treatments.
transport network and support fleet maintenance Broadcasting and Media: The digital economy
activities. The information collected by fleets can also be has dramatically changed the broadcasting and media
used to create datasets with commercial value. industry, with increasing broadband access in particular
Financial Services: Banks, insurance providers opening new avenues for delivery of content for
and other companies, including non-traditional traditional media players, while also enabling the
payment service providers, increasingly enable participation in the news media of non-traditional news
customers to manage their finances, conduct sources, and expanding user participation in media
transactions and access new products on line, although through user-generated content and social networking.
they still continue to support branch networks for The digital economy has also enhanced the ability of
operations. Better use of data also allows growth in companies to collect and use information about the
customer insights and associated products, such as viewing habits and preferences of customers, to enable
personalised spending analysis, which can be used to them to better target programming.
generate advertising revenue. The digital economy has 4. Conclusion.
also made it easier to track indices and manage As digital technology is adopted across the
investment portfolios and has enabled specialist economy, segmenting the digital economy is
businesses such as high-frequency trading. increasingly difficult. In other words, because the digital
Manufacturing and Agriculture: The digital economy is increasingly becoming the economy itself, it
economy has enhanced design and development, as well would be difficult, if not impossible, to ring-fence the
as the ability to monitor production processes in digital economy from the rest of the economy.
factories and control robots, which has enabled greater Attempting to isolate the digital economy as a separate
precision in design and development and ongoing sector would inevitably require arbitrary lines to be
product refinement. The products being produced are drawn between what is digital and what is not. As a
also increasingly knowledge-intensive. In the result, the tax challenges and base erosion and profit
automobile industry, for example, it is estimated that shifting (BEPS) concerns raised by the digital economy
90% of new features in cars have a significant software are better identified and addressed by analyzing
component. On farms, systems can monitor crops and existing structures adopted by MNEs together with new
animals, and soil/environmental quality. Increasingly, business models and by focusing on the key features of

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 INTERNATIONAL JOURNAL ON ORANGE TECHNOLOGIES
www.journalsresearchparks.org/index.php/IJOT e- ISSN: 2615-8140|p-ISSN: 2615-7071
Volume: 02 Issue: 12 | December 2020

the digital economy and determining which of those

features raise or exacerbate tax challenges or BEPS
concerns, and developing approaches to address those
challenges or concerns.

References

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age-of-disintermediation-the-battle-is-all-for-
the-customer-interface/
3. UCHAIN WHITEPAPER “The next generation
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economy-in-uzbekistan-are-determined
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