Platform Capitalism And The Digital Economy Assignment Sample

Introduction of Platform Capitalism And The Digital Economy Assignment

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The emergence of new and innovative forms of digital economic circulation has resulted in the movement of ideas, labour and knowledge occurring between geographically connected regions and online communities. Such economic circulation is considered to be apparent across "digital economic ecologies" involving online marketplace, crowd funding, social media and the manifestation of sharing economy.

Platform economy refers to the activities of various companies such as Google, Facebook, Apple, and Uber to provide an opportunity to people to conduct their own business. Platform capitalization is now becoming an important thing to regulate the own business of many people. Platform capitalization offers a good platform to introduce and maintain the business more effectively and easily. Platform capitalization is constructed by platform capitalization. The study will shed light on the emergence of platform capitalization and its development and benefits of it in today's modern world. The study will further focus on the conveniences and benefits of the digital economy. It will further discuss the importance of the digital economy in modern daily life. Nowadays, platform capitalization holds an important value in business. The digital economy is further helping people in many ways. It promotes the E-business, which further introduces the electronic technologies in the transition of the business. Platform capitalization and the digital economy are closely related in today's modern world. The successful implementation of the platform economy is largely dependent on the digital economy.

The aim of the study focuses on understanding the significance of platform capitalism in transforming the digital economy.

Research Question

How is platform capitalism changing the global economy?
How do different facets associated with platform capitalism contribute toward changing the global economy?
What are the challenges associated with platform capitalism

Platform capitalism and its impact on the digital economy

"Platform capitalization" is primarily symbolized as a modern communication technology and information system. This specifically mentioned capitalization initially captures the modalities, which are mediated by the aspects of digitalization. According to Ng (2020), “platform capitalization” primarily reflects the widener range of political and societal changes. However not only the social aspects, thus the “platform capitalization” is taken an important role in the economic changes. According to Mihelj et al. (2019), in modern life this specifically mentioned capitalization importance is huge. In the current scenario, digitalization is a necessary requirement in human being’s daily life. Digital capitalization is generally providing the actual aspects of contributory effort and conceptual clarity of the economic development. The four major types of capitalization are sharing digital economy, crowdsourcing economy, platform economy and gig economy” (Srnicek, 2021). Those are the key aspects of “digital capitalization”.

According to Edward, (2020), the platform digitalization is primarily seen as the creative fuel for the expansion and transformation of the modern socialized market. In a few decades earlier, such as 18s century, very few people are primarily obligated about the actual concept of "digital transformation". Thus in the 19th century, "digital capitalization" is an important part of modern human beings' life. According to McMillan, (2020), the actual ascent of the "digital capitalization" is symbolized as a hugely complex phenomenon, which initially testified to the ambivalent relation towards the modern working world. The "platform capitalization" has multiple research from the multiple types of disciplinary, which can be included that the "employment, work, sociology and innovation” the above mentioned "platform capitalization" has a derivative digital conceptual angle. The grandeur and hype database is primarily envelope the current debates on the aspects of “digital capitalization”. The specifically mentioned “digital capitalization” is conducted around the various themes, novelty and freshness. The

Facets associated with platform capitalism

The "platform capitalization" is the primarily interrelated with the modern digital economy. The most relevant and popular digital platforms are "Airbnb, Uber, Amazon and Baidu". Those above-mentioned platforms are the most demanding "digital capitalization" platform. According to Montgomery and Baglioni (2020), the second relevant "innovating platform", that initially provides the common framework technology. Those specifically mentioned platforms, which work as an independent digital platform developers, such as "Microsoft platform".

The "platform capitalization" is primarily divided into four important segments, such as the four major types of capitalization are sharing digital economy, crowd-sourcing economy, platform economy and gig economy".

Sharing Economy

Lessig first invents the concept of “sharing economy” in the year of 2008. The specifically mentioned "sharing economy" is primarily emphasize the predominant act of exchanging and sharing the proper resources without operating the digital conceptualization and transfer the power of the share. However, it can be demonstrated the actual procedure and act of the distribution. As opined by Vallas, (2019), this above-mentioned act it can initially signify what the leader of the organization can use and what is the general aspect, that the other people can use is primarily demonstrated in this act. According to Light and Seravalli, (2019), the "sharing economy" is primarily symbolized that it is hugely premised on the actual notion of the "peer-to-peer" collaboration. However, some of the organizations are extended the Peer to peer consumption. As opined by Rainnie and Dean, (2020), most of the predominant organizations is initially suggested that the actual; procedure of transactions in the "sharing economy" can primarily conduct between the business and an individual. The actual notion of the predominant sharing is premised as an older version, which is "Quid pro quo" logic as opined by Dal Maso, et al. (2021), the “sharing economy” operation is primarily community based and it in initiated as the “Non-for-profit” cooperation. In crowdsourcing, the term called crowdsourcing is invented by Howe.

Crowdsourcing is primarily described as the emerging association of outsourcing. According to Edward, (2020), the crowdsourcing related job is initially performed by the designated agents. A large organization team primarily conducts the outsourcing procedure. The term of crowdsourcing is invented less than 20 years ago. The actual concept of the predominant cloud sourcing primarily helps to solve the proper "longitude problem". The procedure of crowdsourcing is relying on the common people. The public can primarily share the different types of digital media segments, such as online databases, and scientific data analysis through the crowdsourcing methods. According to Edward, (2020), the multiple types of the example can show the clouds rising is primarily premised on a well-organised idea, which can initially solve the problems the expert capabilities. The crowdsourcing process is primarily more complex, when it first appears in the market, however, after the proper digital transaction; it becomes one of the most relevant platform capitalizations.

In context to Gig economy, the prominent term of the gig economy is primarily references the predominant music industry. In the above-mentioned gig the musicians primarily invent economy. According to Montgomery and Baglioni, (2020), the three types of segments, such as “erratic, precarious and temporary”, primarily conduct the gig economy. The development of the macroeconomic policy towards the low wages of the country is initially conducted through the Gig economy. In "platform economy" term is initially rooted in engineering purposes. It was primarily developed through the technological system. The "platform economy" is primarily based on network communication. As opined by Rainnie and Dean, (2020), the specifically mentioned platform economy is conventional in two different types of markets, such as the triangular relationship between customers and marketers.

Importance of platform capitalism in strengthening the digital economy

The new aspects of "Digital economic circulation" have initially emerged within the actual concept of knowledge and proper ideas. The "digital economy circulation" is primarily apparent across the huge number of economically oriented ecologies that includes the "online marketplace, social, media, crowd funding, crowd sourcing and various types of manifestation. The above-mentioned manifestation is initially called as the "Sharing digital economy". The "digital economy" is a working process is initially conducted through various different capitalizations, such as "Co-production, peer-to-peer and presumption". As opined by Rainnie and Dean, (2020), the above mention three conduction mediums of the digital economy are symbolized the working procedure of the "digital economic circulation". Platform capitalizations are integrated as a "Network exchange relation".

The digital working system is primarily characterized by three-dimensional qualities, such as collaborating, democratic and disintermediate qualities. Those above-mentioned characteristics initially help to change the globalized digitalization in a more progressive way. The predominant mode of digital-socio-technological arrangement and business mediatory is primarily incorporated into the actual progression of the "digital capitalization". In the centre of "digital economic circulation" it primarily helps to generate multiple nations’ oriented segments, such as business platforms enrol, that are initially used through the mobilized code and participatory based economic culture". According to Light and Serially, (2019), coordination with the network effects and data analytics are derived as one of the mainstream work, which conduction procedure is possible due to the "Digital capitalization", the "platform economy" is conducted as the social and economic activity, which is facilitated by the different digital platform. The above-mentioned platform is typically symbolized as the technological framework and online sales perspective. The most common term for "transaction platform” is primarily known as the "Digital matchmaker".

Methods

Economic conditions are evolving rapidly. In the context of platform capitalism, it can be stated that the platform is the digital infrastructure, enabling smooth interaction between two groups. Platform capitalism is either the firm or an extended part of it that differs from traditional markets in varied aspects. As opined by Rainnie and Dean, (2020), the current study focuses on the consideration of qualitative study to address the search question relevant to the context. It is found that the platform economy is very much beneficial in the context of conducting the business of the people of today’s world. The qualitative study serves to be beneficial in exploring various concepts regarding platform capitalism and its impact on the transformation of the global economy. According to McMillan, (2020), a Qualitative study emphasizes a collection of authentic data and information in the context of platform capitalism and its challenges associated with it. Furthermore, the qualitative study proves to be effective in accumulating relevant information for the study purposes thereby resulting in obtaining valuable data about platform capitalism.

Case study

Blockchain Technology and Cryptocurrencies

The blockchain-oriented distribution oriented database is primarily shared in the nodes of the computer network. The blockchain is initially stored the important information in the "electronic digital" format. As opined by Rainnie and Dean (2020), the blockchain is primarily taken a crucial role in the base of the cryptocurrency system, which includes, Bitcoin. Bitcoin is needed for maintaining the decentralization and securing the record of digital transactions. According to McMillan, (2020), the actual key difference between the block chain and critical database is their proper data storage capacity. The Block chain initially collects the data together and structures the data into the table format.

Analysis

Platform capitalization is a way of business that involves a large number of people doing their own business and working for themselves by using the various company's platforms. Over time Facebook, Google, Microsoft, and Apple these farms are evaluating themselves into platforms. These platforms provide software and hardware foundation and give other people the opportunity to operate freely and effectively. This plays a major shift in how the capitalist firm operates and how they set the interaction with the rest of the economy. Platform capitalization serves as a high definition of the snapshot in the current political; and economic situations. It includes many things in a tight frame. It demonstrates a clear view of the current position of capitalist development. According to Dmitrieva (2020), platform capitalization is important in various aspects. Nowadays, it is found that many entities and series, namely "platforms, are rapidly increasing and spreading all over the world. This particular fact is creating inconvenience among the users.

The platform capitalization and digital economy are very much connected. The digital economy serves as one of the major parts of the platform economy. The platform economy cannot be conducted effectively without the successful application of the digital economy (Cerya et al. 2021). Apart from platform capitalization, the digital economy is also becoming an important thing that should be considered in various ways. The digital economy is very important in today's context. In the digital economy, organizations and people can communicate, interact, collaborate and search for information. The storing, transmission and processing of information can be exchanged easily and smartly. It is mainly based on digital technologies (communication and networking) that give the platform in which the organization and people can collaborate and interact. It further directly promotes platform capitalization and contributes to the global economy considerably (Edward, 2020). The digital economy helps the user with the convenience of the digital product. They can digitally access the products. It further includes the financial transaction in a digitalized way. As opined by Avram et al. (2019), everyday appliances and objects can be equipped with computing facilities. The digital economy helps significantly in globalization by providing the facility of various digitally available facilities to the users. In modern times it has become one of the major key factors impacting the global economy. Nowadays, people tend to use everything digitally, and they are also utilizing the facilities of the digital economy in this context. It is impacting globalization in a more effective way. It allows the users to access the information they need without any botheration of physical labour. It also innovates various things in the context of marketing and business, which further helps in globalization. The digital economy also provides new opportunities to the people and organizations. The platform capitalization and digital economy both place a considerable role in globalization. Nowadays, the economy is changing rapidly, which directly affects the globalization. The new innovations and technologies are creating a major difference in the traditional market and platform capitalization.

According to Gault (2019), further elaborates on the fact that the traditional market is a venue where people can access anything. The traditional market has no owner, whereas a platform is generally owned by a firm, and the firm has control over who can access it and also selects the specific terms and conditions. In the platform capitalization, the globalization is effecting increasing than the traditional marketing system. People of the new generation are engaging themselves and doing more activities using these kinds of platforms. The platforms are now becoming a popular medium to extract analysis and monopolize and use a large amount of the data that are being recorded.

According to Mukhtorovna (2021), platform capitalization is affecting the global economy in major ways. In the traditional ways of marketing, the people got a less chance of having the access to their business and products. The fundamental aim of the platform economy is to further facilitate the commerce between the business parties and the consumers. The various economic platforms serve as a greater way to reach their customers. As opined by Mackenzie (2018), platforms are driving the experiences of the people and connecting them across every sector and industry. The platforms are always ready to provide the necessary answers asked by the consumers, and this helps them in the understand of the thing regarding this matter. The platform helps small businesses exponentially to reach their customers and have the opportunities for innovations. Thus, the platform capitalization helps in the global economy through the participation of all kinds of customers. As opined by McMillan Cottom (2020), it enables the seller and buyer to have greater access to their products. In the traditional marketing system, the opportunities for better connections were not established between the business provider and the consumers. In the traditional way of marketing, the customers have to access their products in a physical way (Papadimitropoulos, 2021). According to Park and Ozel (2019), in the platform capitalization, the customers I got the opportunity of direct and easy access to their desired needs and products. It further contributes to globalization by easy access to products (Sturgeon, 2021). It further helps spread the economy and globalized the economy more effectively.

Some challenges include platform capitalization. Al over the world, numerous series of the platform capitalization is emerging. Facebook is often blamed for spreading fake news (Velikorossov, 2019). Amazon is increasingly transforming logistics and creating an automated jobless generation in future. Platform appetite in the data means that the business is rapidly increasing. The platforms are working as the logic mainly based on the data logistics and capitalist centralization. In this context, it includes the disadvantages and risk factors to the consumers’ personal data base. There seems to be a great competition in the platform capitalization. This further creates disadvantages among the users and the consumers. The literacy rate is also affecting the spread of platform capitalization.

The uneducated people are still deprived of the concept of platform capitalization and the global economy. They are still unaware of the benefits and advantages of the platforms. Even today's theories are less interested in investing in the platforms. They prefer the traditional way of business in the context to conduct their own business. The usage of the digital economy is not yet familiar to many people around the world. Most of them still do not know the benefits and usages of the digital economy and, therefore, they prefer to use traditional money transactions regarding their purpose and business. This particular factor is responsible for the less globalization of platform capitalization and the digital economy. More awareness is needed in the matter to gain the benefits of platform capitalization and the digital economy. As opined by Watanabe et al. (2018), overt antagonism that happens between the majors is now at low ebb because when these platforms ate spreading to the new areas, they come into contact with direct competition. It is further noted that Google and Amazon are more dominating in this matter.

Conclusion

The role of platform capitalization and the digital economy contributes to today's modern business strategies. The moral implication of platform capitalization and the digital economy further helps the seller and consumer in a more specialized and convincing way. Both o they can utilize the benefits of platform capitalization and the digital economy. Both platform capitalization and the digital economy majorly contribute to economic globalization.

References

Journals

Avram, G., Choi, J.H.J., De Paoli, S., Light, A., Lyle, P. and Teli, M., 2019. Repositioning CoDesign in the age of platform capitalism: from sharing to caring. CoDesign, 15(3), pp.185-191.

Cerya, E., Wahid, R.N., Maulidina, Y. and Hildayati, A., 2021, November. The Use of Digital Economy Learning Media in the VUCA Era: A Literature Review. In Seventh Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA 2021) (pp. 290-295). Atlantis Press.

Dal Maso, G., Robertson, S. and Rogers, D., 2021. Cultural platform capitalism: Extracting value from cultural asymmetries in RealTech. Social & cultural geography, 22(4), pp.565-580.

Dmitrieva, E.I., 2020, December. Digital Platforms as a Base for Forming a Digital Economy. In 2nd International Scientific and Practical Conference on Digital Economy (ISCDE 2020) (pp. 553-558). Atlantis Press.

Edward, W., 2020. The Uberisation of work: the challenge of regulating platform capitalism. A commentary. International Review of Applied Economics, 34(4), pp.512-521.

Gault, F., 2019. User innovation in the digital economy. Foresight and STI Governance, 13(3), pp.6-12.

Leonardi, E. and Pirina, G., 2020. Uber in the Portuguese gig economy: a laboratory for platform capitalism. Work Organisation, Labour & Globalisation, 14(2), pp.46-63.

Light, A. and Seravalli, A., 2019. The breakdown of the municipality as caring platform: lessons for co-design and co-learning in the age of platform capitalism. CoDesign, 15(3), pp.192-211.

Mackenzie, A., 2018. 48 million configurations and counting: platform numbers and their capitalization. Journal of Cultural Economy, 11(1), pp.36-53.

McMillan Cottom, T., 2020. Where platform capitalism and racial capitalism meet: The sociology of race and racism in the digital society. Sociology of Race and Ethnicity, 6(4), pp.441-449.

Mihelj, S., Leguina, A. and Downey, J., 2019. Culture is digital: Cultural participation, diversity and the digital divide. New Media & Society, 21(7), pp.1465-1485.

Montgomery, T. and Baglioni, S., 2020. Defining the gig economy: platform capitalism and the reinvention of precarious work. International Journal of Sociology and Social Policy.

Mukhtorovna, N.D., 2021. Importance of foreign investments in the development of the digital economy. ResearchJet Journal of Analysis and Inventions, 2(04), pp.219-224.

Ng, E., 2020. No grand pronouncements here...: Reflections on cancel culture and digital media participation. Television & New Media, 21(6), pp.621-627.

Papadimitropoulos, E., 2021. Platform Capitalism, Platform Cooperativism, and the Commons. Rethinking Marxism, 33(2), pp.246-262.

Park, H.W. and Ozel, B., 2019. The rise of blockchain technology: Overcoming theoretical poverty and its implications for developing countries. Journal of Contemporary Eastern Asia, 18(2), pp.1-8.

Rainnie, A. and Dean, M., 2020. Industry 4.0 and the future of quality work in the global digital economy. Labour & Industry: a journal of the social and economic relations of work, 30(1), pp.16-33.

Srnicek, N., 2021. Value, rent and platform capitalism. In Work and Labour Relations in Global Platform Capitalism. Edward Elgar Publishing.

Sturgeon, T.J., 2021. Upgrading strategies for the digital economy. Global Strategy Journal, 11(1), pp.34-57.

Vallas, S.P., 2019, January. Platform capitalism: What’s at stake for workers?. In New Labor Forum (Vol. 28, No. 1, pp. 48-59). Sage CA: Los Angeles, CA: SAGE Publications.

Velikorossov, V.V., Rechinskiy, A.V., Chernenkaya, L.V., Filin, S.A. and Chernenkii, A.V., 2019, October. Digital Economy as a Tool for Reducing of Uncertainty in Strategic Managerial Decisions. In Proceedings of the XI International Scientific Conference Communicative Strategies of the Information Society (pp. 1-6).

Watanabe, C., Naveed, K., Tou, Y. and Neittaanmäki, P., 2018. Measuring GDP in the digital economy: Increasing dependence on uncaptured GDP. Technological Forecasting and Social Change, 137, pp.226-240.