Why We Shouldn't Overstate The Pandemic's Effect On Productivity Progress
Asia’s e-commerce transactions account for 25% of the enterprise to shopper market in the world, led by the People’s Republic of China , where firms like Alibaba and Tencent have grown at a break-neck pace. The transaction volume of the PRC’s retail e-commerce market has increased from CNY1.32 trillion in 2013 to CNY5.33 trillion in 2016, with an estimated CNY7.57 trillion in 2017. For the rest of us, digital transformation refers to the adoption of digital know-how to transform companies or companies. This is achieved by replacing manual (non-digital) processes with digital ones or changing outdated digital know-how with upgraded digital know-how. In conventional production, marginal value decreases with volume due to economies of scale and learning curve effects. For digital products and services, such as data, insurance, e-books, even films, this effect is magnified, because after the primary unit, production costs for every further unit are nearly zero. It’s a similar story for...