"The pie is getting bigger" is a valuable phrase to describe the growth of the digital world in contrast to the physical in terms of the production of value and its distribution based on available resources.
I think the telling contrast between the two comes in the form of natural limitations, where resources in the physical world are finite and growth often comes at the expense of others. Of course, the latter also happens in the digital realm but it is to a much lesser degree.
In addition, what I've seen is that it isn't just about making more of the same pie, but also about baking a whole new one, fueled by innovation and creativity. In which case, the overall value and opportunities within the digital economy are continuously increasing.
Several factors come together to fuel this new and constant expansion of the pie. One of the main ones is obviously technological innovations.
Technology at the Forefront
This has contributed immensely in creating, managing and exchanging value digitally. A good example is with the advent of e-commerce and how it has connected buyers and sellers all over the world, which brought global access for all kinds of goods and services, while also creating new ones along the way.
Globalization at this point seems inevitable and it has progressed to a great degree. The digital world transcends physical borders, connecting people and markets worldwide.
Effects of that include a larger customer base for businesses and a wide talent pool for employers. On the markets front, trade barriers are generally minimal, allowing businesses from across the globe to compete in new markets on a more level playing field.
New pies come in the form of new industries and business models. For instance, thanks to e-commerce, there are different types of online marketplaces or platforms such as direct-to-consumer(dtc)(e.g Amazon), business-to-business(b2b)(e.g Alibaba) to consumer-to-consumer(c2c)(e.g eBay).
Cumulatively, the global retail e-commerce sales is predicted to reach nearly $6 trillion this year according to a report by Insider Intelligence.
Given that they're inherent in the digital realm, this new industries and business models can create network effects and scale exponentially, which means more overall value for the entire digital realm. Another great example in that regard is social media.
Dynamism And Diversity
Democratization of digital tools gives easy access and lowers entry barriers for entrepreneurs and creators. This is a key driver in the pie's diversity and dynamism, which many of us have come appreciate.
At the same time, it also presents many opportunities to connect with like-minded individuals, co-create, and build vibrant communities that can shape the future of the digital landscape.
"The pie is getting bigger" in the digital age encapsulates the ongoing expansion of possibilities, resources, and value within the online space. While resources in the physical world are finite and subject to competition, the digital sphere offers a seemingly boundless potential for growth through innovation and creativity.
Logically, this creates unique and boundless opportunities(and challenges) for the players on the playground, who have to understand and adapt to its ever expanding nature. Challenges may include achieving sustainability in terms of growth and perhaps, inclusivity in terms of creating fairer models.
Individually however, I think the main challenge lies in not falling into a scarcity mindset like we often do with physical resources. Adopting an abundance mindset can be an eye opener. On top of that, one or two dimensional thinking will definitely not help, practice multi-dimensional thinking.
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