Pros and Cons of Digitalization

Abstract

Digitalization has changed the rules in both private and public sectors of economy. The study of effects of digitalization has more significance and that can be studied by index of digitalization (which reflects the state of digitalization at the country level), and by validating the index of digitalization using panel data model. To study the digitalization level of the countries, the digital economy and society index is used. During some misery (ex: COVID-19) will cause the dramatic effect on the world’s economy, business and activists and the people in that situation digitalization will help in many ways to adopt and overcome the misery. The negative side of the digitalization is loss or displacement of jobs because of automation and challenges brought by e-commerce (ex: higher rates of the products return because of unrealistic online reviews). Digitalization also affects the work place. Digitalization has been changing organizations from the discovery of internet forward. Digitalization has created many challenges as well as opportunities for organizations. Digitalization improves the job satisfaction; blur work/life balance and promotes more workers autonomy. In digitalization with respect to public transport there are number of challenges that needs to be addressed. There are both technical challenges such as data collection issues, interoperability, scalability and information security and non-technical challenges such as business models, usability, privacy issues, and deployment. Present study presents pros and cons of digitization in different sectors.