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DIGITAL ECONOMY IN BUSINESS ENVIRONMENTS 
М.T. Asqarova, L.Sh. Sharipbayeva
Tashkent State University of Economics 
Digital economics is an activity directly linked near the improvement of 
numerical computer technology, which includes online services, electronic 
payments, virtual transactions, crowd funding and more. Usually, the main elements 
of the digital economy are e-commerce, internet banking, electronic payments, 
internet marketing, as well as internet games. Moreover, it is new area for national 
economy especially for emerging markets. 
Digital economy has its various names and features which benefits to improve 
effectiveness of the process. On the other hand, digital economy is essential for many 
purposes for the improvement labor market and other areas. A comprehensive 
numerical extent of the different influence of the digital economy can help in 
considerate the undercurrents and the physical shifts in the economy and eventually 
the power of this economy on national and worldwide financial commotion, the use 
of the atmosphere and the excellence of lifecycle of characters. 
The implications of digitization on business models are diverse. For instance, 
digital technologies allow shifting the boundaries of firms towards more 
collaborative models. Firm resources and capabilities have become more modular, 
connectable, and conveniently shareable. Firms that primarily build their business 
models on digital and internet-based technologies generally differ from non-digital 
businesses. In general, digital business models generally lead to higher levels of 
connectivity between different actors. Such businesses typically compete on a larger 
scale then physical businesses due to low geographic boundaries and resource 
requirements for reaching customers. Since costs of search and communication have 
decreased considerably, transaction costs are generally much lower than for physical 
businesses. Besides, higher transparency among offerings and prices leads to easier 
imitation and lower differences between competitors’ products and services. Internet 
technologies have intensified the level of competition, reduced entry barriers, led to 
more substitutes, and increased the power of customers. Hence, profit opportunities 
have decreased in most industries. As digital businesses generate more and more 
information about the customer’s preferences and buying behavior, they can design 

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customized value propositions and determine individualized prices for customers. 
Consequently, digital businesses induce economic environments that are often 
characterized by a dynamic competition and high consumer surplus. The emergence 
of new business models is, however, not only a consequence of the new possibilities 
of digital technology, but also a response to the increased velocity and turbulence of 
the digital business environment 
You do not need to manage all your business over the Internet to take 
advantage of operational commerce opportunities. Small businesses may need only 
an email address to converse with their clienteles, clients and suppliers in electronic 
form. Other companies can use their website to run their entire online business. 
Some welfares of online business are following: 
worldwideadmission and no time limit; 
developedcustomer service through greater flexibility; 
cost savings; 
faster transfer service of products; 
increased professionalism; 
less paper waste; 
opportunities to accomplish your business from anyplace all over the world. 
Paying for online transactions traditionally required providing some amount 
of financial information, such as bank account or credit cardinformation, to a vendor, 
which requires a high degree of trust that is not always present in the case of an 
unknown vendor, particularly in the case of a C2C transaction. Online payment 
service providers help address this concern by providing a secure way to enable 
payments online without requiring the parties to the transaction to share financial 
information with each other. 
A number of other alternative online payment options are in use as 
well,including: 
• Cash payment solutions, in which a customer buys online, and pays in cash 
with a barcode or payment code at participating shops or settlement agencies, 
offering a way for customers unwilling to use other online payment methods to make 
online purchases in a secure manner. 
• E-wallets or cyber-wallets, which are previously charged with credits and 
can be spent online as an alternative to the use of a credit card. These are often used 
for micropayments because the use of a credit card for frequent small payments is 
not economical. 
• Mobile payment solutions, which encompass all types of technologies that 
enable payment using a mobile phone or smartphone, including, among others, 
mobile card processing using card readers connected to smartphones, in-app 
payments for virtual products, and near-field communications solutions which use 
short range wireless technology to exchange information. 
Online advertising uses the Internet as a medium to target and deliver 
marketing messages to customers. Internet advertising offers a number of 
advantages over traditional advertising. For example, many Internet advertisers have 
developed sophisticated methods for segmenting consumers in order to allow more 

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precise targeting of ads. Many Internet advertising publishers have also developed 
ways for clients to monitor performance of ads, tracking how users interact with 
their brands and learning what is of interest to current and prospective customers. 
Online advertising takes a number of forms, the most prominent of which are display 
ads, in which an advertiser pays to display ads linked to particular content or user 
behavior, and search engine ads, in which an advertiser pays to appear among 
Internet search results. 
Diversity of revenue models.The diversity of businesses in the current digital 
economy is illustrated by the variety of ways in which businesses turn value into 
revenue. The most common revenue models include the following: 
i. Advertising-based revenues. One version of this model offers free or 
discounted digital content to users in exchange for requiring viewing of paid-for 
advertisements. Other models rely on providing advertising through mobile devices 
based on location or other factors. A third type concerns social media websites or 
platforms who typically build up a large online user community before monetizing 
their captive audience through advertising opportunities. 
ii. Digital content purchases or rentals. Users pay per item of download –for 
instance, e-books, videos, apps, games and music would fall into this category. 
iii. Selling of goods. This category, which overlaps to a degree with, would 
include online retailers of tangible goods but could also cover online gaming, where 
users are offered a free or discounted introductory product but are also offered 
purchasable access to additional content or virtual items to enhance the experience. 
iv. Subscription-based revenues. Examples include annual payments for 
“premium delivery” with online retailers, monthly payments for digital content 
including news, music, video-streaming, etc. It could also include regular payments 
for software services and maintenance such as antivirus software, data storage, 
customer “help” services for operating systems, and payment for access to the 
Internet itself. 
Business leaders who see new competitors move into their traditional markets 
are driven to make their companies more agile in order to respond. The Digital 
EconomyeBook has useful insights and tips to help business leaders move beyond 
the digital enterprise, and become successful in the expanding digital 
economy.Getting your business online can provide new opportunities and benefits. 
There are many different ways to do business online, and it's a good idea to consider 
which ones might suit your business.