The networked economy refers to a modern economic system where businesses, individuals, and devices are interconnected through digital networks, enabling seamless communication, collaboration, and transactions. Unlike traditional economies that rely on linear supply chains, the networked economy thrives on real-time data exchange, automation, and global connectivity, powered by technologies like the Internet of Things (IoT), blockchain, cloud computing, and AI.

Key Features of the Networked Economy
Hyper-Connectivity – Businesses and consumers interact instantly across borders via digital platforms (e.g., e-commerce, social media, fintech).

Decentralisation – Power shifts from centralised institutions to distributed networks (e.g., cryptocurrencies, peer-to-peer marketplaces).

Data-Driven Decisions – AI and big data analytics optimise operations, marketing, and customer experiences.

Collaborative Ecosystems – Companies form dynamic partnerships (e.g., Uber’s gig economy, Amazon’s third-party sellers).

Impact on Business & Society
Efficiency & Innovation – Faster product development, automated supply chains, and personalised services.

New Business Models – Subscription services, sharing economy (Airbnb), and digital marketplaces dominate.

Challenges – Cybersecurity risks, job displacement, and digital inequality.

The networked economy is reshaping industries, making agility and digital adaptation essential for success in the 21st century.