What is the network economy?

The network economy is the economic order within the Technological Information Society. Unlike economies inspired by the Industrial Revolution, the network economy uses technological progress, such as information market and social network platforms to create the value of goods and services. There are several main aspects of the network economy: its inherent structural differences from industrial economies, the role of digital revolution, value network and intellectual property rights. Combined with changes in cultural and social styles, the information revolution initiated a change in how business was done. The importance of the business administration and the decision of the meeting room was reduced by the ability of consumers to share knowledge on a large scale through an information highway. This caused significant shift in business transactions; The arrival of electronic trade and mostly digital economy restructured how many businesses work. If once the company has been determined only the value of the product or serviceY, now by sharing information by digital means, it has now been fundamentally intended for the consumer.

The value networks were revolutionized by the onset of the Internet economy. Extensive information sharing through social networks could achieve or break the success of the product or service. With greater power in the hands of consumers, businesses also found that they are more responsible for their actions. At the same time, however, they saw the financial benefits of this new network economy. Suddenly, sales were not limited to certain demographic areas, but were able to achieve all the corners of the world.

There are complicated problems with intellectual property rights connected virtual economy. Acts on intellectual property grants of exclusive rights to asset owners considered intangible, such as works of art. In the context of the network economy, the company is accused of protecting its intellectual property by ensuring that competitors do notRadli's ideas, products or price structures - a very real possibility at information age.

Despite the change, the network economy and the popularity of electronic business have brought the change, the basic economic laws remain unchanged. Creating quality products, setting prices to maximize value, using positive criticism of consumers and maintaining business models focused on customer are timeless economic laws. With or without technology, these facts help maintain and develop any economic configuration and, as the network economy illustrates, can attract fields of exciting new directions.