Industrial processes in the digital economy

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Olivier BOMSEL

Assistant director, CERNA, Ecole des mines de Paris

Seminar Management of Innovation | Wednesday March 15, 2000

The use of signal digitisation and transmission using fibre optics results in huge increases in productivity. These increases in productivity disrupt the normal modus operandi of a company and interfere with traditional mechanisms which regulate industry (such as price, competition, financing, regulations, etc.). The process of digitisation, which originated in the telecommunications sector, has widened the scope of the Internet and is currently spreading throughout companies which are based on a network system. The digital economy is keeping an eye not only on such growth which generates competition, but also on the relationships between physical and new information networks. What is the impact of the digital economy on ‘bricks and mortar’ companies ? How do these companies cope with the problems of this new technology and make use of the opportunities offered by it ?

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