The digital economy in times of Covid-19

Abstract

In this chapter we trace the impact of the unprecedented Covid-19 crisis on all the aspects of digital transformation discussed in the book.We start by showing how a crisis born out of globalisation has pushed the world towards digital globalisation. Cross-border flows of data surged with the sharp rise in the consumption of digital goods and services, online shopping, remote work, and education. We discuss the long-term consequences of the massive shift towards remote work, focusing on the changing work culture, progressing datafication of work and growing rift in the labour market between the position of highly-skilled and low-skilled workers. Next, we assert that the fraying of value and supply chains may advance the budding trend to relocalize production.We emphasise that the crisis proved the virtues of digital transformation, as it was the more digitally mature companies that survived best. Turning to markets, we take note of the mounting dominance of the BigTech companies, stemming from the functional importance of digital infrastructures, products, and services during the Covid-19 crisis.Their dominance, in turn, contributes to growing anxiety on the part of the traditional sources of power: the nation-states. In our conclusion, we discuss the prospects of the digital economy by returning to its two defining features: datafication and networks.We argue that only robust networks, providing an equal access to every user, and datafication that benefits all, will ensure that the humanity makes the most of the opportunities that the digital technological revolution is creating.