BAKU – At the “Chain Reaction 2024” forum, Mohammad J. Sear, a leader in the advisory sector at Ernst and Young (EY), delineated the evolving landscape of the digital economy, identifying two distinct categories of digital businesses that dominate the sector.

According to Trend News Agency, during the panel “Immersing in the Digital and Metaverse Economy,” Sear articulated the nuances that differentiate true digital businesses from traditional IT strategies. He emphasized that the digital economy is characterized by entities that were conceived in and operate solely within the digital realm, offering new, transformative approaches to how services are consumed and interactions occur online.

Sear classified digital businesses into two main types: fully digital and digital hybrid companies. Fully digital companies, like Netflix, operate entirely online, revolutionizing industries such as content distribution without physical interaction. Netflix, as an example, allows users to access a vast array of content solely over the internet, significantly altering traditional media consumption patterns.

On the other hand, digital hybrid companies, such as Uber, merge online engagement with physical services. Sear explained how Uber’s business model encapsulates the hybrid nature, where services like ride-hailing are initiated digitally but are fulfilled physically, integrating both aspects seamlessly.

Additionally, Sear highlighted the critical role of support organizations that underpin digital infrastructure, like digital identification systems and payment platforms, which are essential for the connectivity and operational efficiency of digital businesses. He stressed that these components are indispensable in sustaining the digital economy, impacting sectors from e-commerce to cloud kitchens.

This delineation by Sear at the forum provides a clearer understanding of the digital economy’s structure, offering insights into how businesses can navigate and thrive in this increasingly digitalized world.