Artificial Intelligence and Its Importance in Digital Business

This report discusses the importance of artificial intelligence in digital business operations. It covers the benefits of AI, demands for IT professionals, use of digital technology, and the application of AI in global business operations. The report also includes a PESTLE analysis and STP analysis.

Digital business and
new technologies

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................4
Summary of findings...................................................................................................................4
Short set of conclusion................................................................................................................5
Artificial business and its importance to traditional business.....................................................5
Demands for IT professionals in digital business:......................................................................5
Use of digital technology............................................................................................................5
Application and need of Artificial intelligence in global business operations............................6
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Digital business is a type of business which includes the application of information and
technology in different business operations (Borges, 2021). In the recent times major famous
companies are shifting from traditional businesses to perform accurate and quick operations.
This project includes various findings about artificial intelligence and its different dimensions. In
this report the importance and role of artificial intelligence is taken into consideration which
plays a major role in systematic growth of a company. This project concludes the strategic plan
and recommendations for a company to apply the application of Artificial intelligence in a
business entity.

MAIN BODY
Summary of findings
From the coursework, it is learnt that the application of Artificial intelligence helps a
business to grow at rapid speed in the marketplace. It includes the development of human
intelligence by merging with the information and technology for better and accurate operations.
The Artificial intelligence helps a business to cut the cost associated with major objectives
achievement in a specified period of time. In the long run, artificial intelligence also helps and
supports a business to overcome various issues and challenges (Härting, 2019). The cost saving
for a company is also developed by artificial intelligence in order to gain competitive advantage
in a framed time period. Companies in international marketplace prefer to choose the help of
Artificial intelligence in order to develop and achieve business goals on time. The different
companies in international market hires professional and skilled workers in order to achieve
goals and objectives.
In the competitive world the artificial intelligence is now the major technique that helps a
company to develop human intelligence based products and services at the marketplace. In order
to increase the effectiveness and efficiency of a business firm it is important for a business to
take help of artificial intelligence for sustainable growth. It is very much crucial for a company
to also adopt ethical practices in using artificial intelligence for maintaining privacy of the
customers. The technology also helps employees of a company to develop management
information system which helps a business to manage different employees. Artificial intelligence
will also help the company in long run to survive with competitive edge. In a business entity, the
application of artificial intelligence helps a company to deliver best practices that requires
maximum technological efforts. In corporate world, many traditional business organisations are
adopting information and technology for long term growth of the company. The artificial
intelligence supports a business entity to remain competitive in the marketplace by adopting
technological practices (Kovynyov, 2019). Artificial intelligence will also help the company to
perform operations related to production in a quick manner for desired growth of the company.

Short set of conclusion
Artificial business and its importance to traditional business
In the current competitive scenario, it is important for a traditional company to shift from
traditional business practices to advanced in order to lead the marketplace. Major successful
international and national companies nowadays are involved in developing effective practices
which helps in developing information and technology. The companies in international
marketplace are also trying to deploy big data management system with the application of AI to
maintain large set of data in a synchronised manner (Luz Martín‐Peña, 2018). Also for the
traditional business organisations it is hard to manage the complexity of operations which are
eased by digital technology. The companies in global marketplace, also takes into account major
policies and plans that are effective in providing desired successful growth in competitive
marketplace.
Demands for IT professionals in digital business:
There is increasing opinion and development of Artificial intelligence which states the demand
of IT professional is increasing at a faster pace. For instance, in 2018 in United States around
1600 senior commercial enterprise leader are asked for AI but among which only 19% of people
has knowledge about it. IT professionals helps a digital business to gain systematic advantage at
the marketplace by developing knowledge in a crucial manner. The IT professionals will help
digital business to rule the marketplace with major techniques and advancements. IT professional
will also help the company to raise market share in a short span of time by deploying IT related
models and theories.
Use of digital technology
The digital technology will help the company to deliver best products and services by
applying major tools and techniques. Company will also develop an effectiveness in operations
and functions with the use of digital technology. Many successful companies in the international
and national marketplace apply the digital technology to perform accurate and quick operations.
The privacy of customers is also maintained with the help of digital technology in order to
remain competitive at the marketplace (Popkova, 2019). Companies should also use digital
technology in order to also take edge over different competitors. In most of the business cases, it

is important to perform brief and skilled audit of technology to lead the marketplace. Companies
should also follow the organisational policies and plans related to digital technology in order to
develop goals and objectives. The digital technology is also mainly used in a business to deliver
fair business practices with safe measures. Companies used latest software and computer systems
in order to gain organisational growth (Remane, 2017). The companies should also use digital
technology in order to formulate effective management system which is beneficial for company's
growth. In corporate world, many companies also use digital technology for overall good of the
business entity. In many different cases related to advanced technology, companies prefer to
develop competitive approach that is useful in developing edge over competitors.
Application and need of Artificial intelligence in global business operations
In many different organisations, the artificial intelligence is playing a major role by
developing global business operations. Major companies in the international marketplace
performs huge investment on digital technology and its adaptation. The companies should also
take into account organisational policy which is designed for long term growth of the business
entity. Artificial intelligence is also developing many robotics related techniques that are great-
full in minimising human efforts. The workload and pressure related to operations is minimised
with the application of artificial intelligence in a systematic manner. Companies also prefer to
develop major business plans with the help of strategic and top level management to gain desired
market growth (Santos, 2018). Also with the precise application of digital technology, a business
can easily put efforts that are helpful in formulating competitive strategy. Main companies in
international marketplace, also take a major help of top level and strategic management in order
to develop marketing objectives.
PESTLE analysis
 Political factors- The political factors are related to rules and regulations developed by
government related to a business. Political factors also include, the corporate laws which
are designed and formulated by government related to artificial intelligence operations.
There are various cyber laws for maintaining the interest of the customers are applied by
companies to remain competitive at the marketplace. It is the major responsibility of top
level and IT management of a company to follow all the rules and regulations developed
by concerned government.

 Economic factors- In the functioning of a business, there are various economic factors
that impacts on the organisational policy of the company. The economic factors are
related to monetary policy which is developed by finance ministry of the country. Also
the gross domestic product and national income impact on the major operations of a
company. The different companies in the international marketplace, also take into
consideration the economic policy which helps in minimising the impact of economic
factors that are against the company.
 Social factors- These are the major factors which are related to society and its trends that
impact business functions in a major sense. The living standard of society is also a major
competitive factor that impacts on functioning of a company. Companies should also take
help of human resource management in order to develop precise internal environment on
the basis of social factors (Schiavone, 2021). The social factors are also majorly effective
in providing base line for developing employee trends. Companies in international market
takes into account ethical and honest practices related to IT professional for overall
development of the company.
 Technology factors- The technological factors are related to use of advanced software
and tools related to the information and technology. It is very much essential for a
business entity to use latest software and techniques in the development of artificial
intelligence. The technological factors play a crucial role in developing effective
parameters that helps a business to perform rapid operations. Also in order to get desired
success in the marketplace, it is crucial for the company to develop desired strategy. Most
of the successful business organisations in the marketplace, also take help of IT experts to
decide usage of technology for business operations.
 Legal factors- The legal factors are related to legal procedures and rules which are
developed by local authorities for a business (Scuotto, 2017). In the international
marketplace, company should follow all the legal factors in order to conduct ethical
business. Many companies in international marketplace also takes support of legal
advisors to formulate effective organisational goals and achieve them in a short span of
time.
STP(Segmentation, targeting, positioning)

 Segmentation- The segmentation is a major technique in the STP analysis which
includes dividing of market into different parts. This helps a business to sell products
with unique sales preposition at the marketplace. Companies also take into account the art
of segmentation in order to enhance revenue and turnover of the business. It is very much
necessary for a company to develop segmentation approach in order to achieve market
success (Tekic, 2019). Also with the help of segmentation approach a company is able to
achieve desired market goals in a set period of time. The artificial intelligence helps the
companies to develop quick segmentation in the market for better growth and stability.
 Targeting- The art of targeting includes, selecting appropriate approach for identification
of target customers of the company. Business entity should target customer and serve
them with priority to increase sales. The target customers are god for a company and its
important to deal with target customers using appropriate techniques. The companies in
international market firstly targets the major customers and sells the products
accordingly. Many companies also take into account target customers for selling products
with unique advantage and it also includes serving target customers on priority basis.
 Positioning- In the functioning of a business at the marketplace, it is important to select a
good place for selling the product. In this approach, a business entity selects suitable
geographical location for the business which later sells product to main customers
(Vemuri, 2017). The art of positioning helps a company to overcome various challenges
and issues that are effective in development and growth of the company.

CONCLUSION
From the above stated report it can be concluded that digital business is a modern
practice of conducting business with major advantage to succeed at the marketplace. This project
concludes that it is essential for the company to manage all operations and functions with the
help of digital technology to remain competitive at the marketplace. Many different companies in
the international marketplace take into consideration the advancement of digital technology with
huge investment in order to perform systematic operations. The companies also take into account
deployment of IT experts for performing all operations with accurate approach. This project also
concludes that it is important for a company to develop information and technology related
operations with the help of precise strategy.

REFERENCES
Books and Journals
Borges, A.F., Laurindo, F.J., and Mattos, C.A., 2021. The strategic use of artificial intelligence
in the digital era: Systematic literature review and future research directions. International
Journal of Information Management, 57, p.102225.
Härting, R.C., Reichstein, C. and Sochacki, R., 2019. Potential Benefits of Digital Business
Models and Its Processes in the Financial and Insurance Industry. In Intelligent Decision
Technologies 2019 (pp. 205-216). Springer, Singapore.
Kovynyov, I. and Mikut, R., 2019. Digital technologies in airport ground
operations. NETNOMICS: economic research and electronic networking, 20(1), pp.1-30.
Luz Martín‐Peña, M., Díaz‐Garrido, E. and Sánchez‐López, J.M., 2018. The digitalization and
servitization of manufacturing: A review on digital business models. Strategic Change, 27(2),
pp.91-99.
Popkova, E.G. and Gulzat, K., 2019, May. Technological revolution in the 21 st century: digital
society vs. artificial intelligence. In Institute of Scientific Communications Conference (pp. 339-
345). Springer, Cham.
Remane, G., Hanelt, A.,. and Kolbe, L.M., 2017. Discovering digital business models in
traditional industries. Journal of Business Strategy.
Santos, G., Murmura, F. and Bravi, L., 2018. Fabrication laboratories: The development of new
business models with new digital technologies. Journal of Manufacturing Technology
Management.
Schiavone, F., Mancini, D.,. and Lavorato, D., 2021. Digital business models and ridesharing for
value co-creation in healthcare: A multi-stakeholder ecosystem analysis. Technological
Forecasting and Social Change, 166, p.120647.
Scuotto, V., Santoro, G., and Del Giudice, M., 2017. Shifting intra‐and inter‐organizational
innovation processes towards digital business: an empirical analysis of SMEs. Creativity and
Innovation Management, 26(3), pp.247-255.
Tekic, Z. and Koroteev, D., 2019. From disruptively digital to proudly analog: A holistic
typology of digital transformation strategies. Business Horizons, 62(6), pp.683-693.
Vemuri, V.K., 2017. Mastering digital business: How powerful combinations of disruptive
technologies are enabling the next wave of digital transformation, by Nicholas D. Evans:
London, UK: BCS—The Chartered Institute for IT, 2017, 181 pp., 48.97(hardcover), 34.99
(Kindle edition), ISBN 978-1780173627.