Digital economy refers to an economy that is based on digital computing technologies, although we increasingly perceive this as conducting business through markets based on the internet and the World Wide Web.

It is essentially the economic activity that results from billions of everyday online connections among people, businesses, devices, data, and processes.

The backbone of the digital economy is hyper connectivity which means growing interconnectedness of people, organisations, and machines that results from the Internet, mobile technology and the internet of things (IoT).

The digital economy is taking shape and undermining conventional notions about how businesses are structured, how firms interact, and how consumers obtain services, information, and goods.