Trends and Advantages of Digital Technology in E-commerce Business

This document provides an overview of the trends and advantages of digital technology in the management of virtual business. It discusses new digital business models for cyber security and ethics, and explores the impact of collaborative relationships and strategic alliances through digital technology. Additionally, it covers the e-commerce principles used in business.

ASSESSMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Overview of trends and advantages of digital technology and its implication in the
management of virtual business...................................................................................................1
Evaluation of new digital business models for cyber security and ethics....................................3
Impact of new collaborative relationship and strategic alliances through digital technlogy.......5
E-commerce principles used in business ....................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
E-commerce business is that type of business which allows the organization and
individuals to purchase or sell things on the internet. These businesses are companies which
provide online shopping experiences to the customers. In this project the e-commerce business
chosen is ASOS plc. This company is a UK based fashion and cosmetic online retailer which
was founded in the year 2000. The aim of this company is to make products for the young Adults
of the society. This business is known for selling over 850 brands of fashion on its websites and
has its business spread in more than 196 countries. This project will provide the overview of key
trends and advantages for the implication of digital technology in the management of this
business. In this project critical evaluation of new and emerging digital business models have
been discussed in the context of cyber security and ethics of the business. This project will
provide the impacts of new collaborative relationship and strategic alliances in the business of
digital technology. With the help of this project the e-commerce principles of the business is also
discussed.
MAIN BODY
Overview of trends and advantages of digital technology and its implication in the management
of virtual business
The trends of the e-commerce have been influenced very heavily after the Covid-19 in
UK. The digital technological improvements is also one of the reasons. In the latest technologies
the market for e-commerce have witnessed changes in the deploying of applications and also the
introduction of artificial intelligence. This has completely changes the experience of the
customers. Businesses like ASOS plc have experienced increase in the online sales. This has
happened because the customers. The reason for such change of events was the Covid-19
pandemic due to which the economy of UK went into recession although the online businesses
were continuing in its growth. Customers increase their purchasing activities on the internet as it
was a safer option. It is the growth of such business is also due to the fact that in the current time
everyone is digitalized and have access to a smart phone. This increased the potential customers
of such business (Zhang and et.al., 2021).
Digital technology is the transformation of digital factors in the business which affects
the business relating to its cost of operations. The advantages of digital technology and its
implication in management of virtual business are,
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Enhances the data collection :
For virtual business like ASOS which deals in the online businesses activities related to
fashion and beauty products of young customers. For the marketing of the business this business
requires data about the customers. With the help of digital technology the such businesses are
able to collect significant amount of data. This data is a real benefit for the business for moving
forward in the direction of success. Data collected from the digital technology about the
customers allow such business for gathering the right information which is used for planning
strategies of business for incorporating the business intelligence in high levels.
Great resource management :
Digital transformation helps to merge loads of resources, facts and statistics/figures in a
series of tools for business purposes. Resource management is an essential part of digital
transformation which means having access to analytical and precise data for maintaining
resources, activities and allocating tasks. To cope up with the unstable changes in the working
environment, digital transformation helps in improving efficiency, growth and to set up a well
planned, strategic, technology- driven organizational structure (Uktamova, 2020).
Data driven customer insights:
By prioritizing digital transformation strategy, productivity boosts, returns on investment
increases and customer oriented services can be improved. Studying customer behaviour,
changing statistics with the help of personalized data, social media, AI tools, clouds, etc. and
making technology based innovation and customizable products and services can induce
customer satisfaction.
An overall better customer experience:
Better Customer experience and customer satisfaction is the primary motive of most of
the organizations. With the help of mobiles, apps and different devices, customers can have
access to millions of products, and they can order anything, whenever they want, at anywhere.
Rising customer's expectations and increasing market competition has compelled the companies
to go digital and to produce qualitative goods at lower prices and offer better services. Digitally
transformed companies can reach out to their customers anytime with the help of social media,
mails, advertisements etc. It helps companies to have highly engaged customers with the help of
data driven marketing strategy (Uktamova, 2020).
Improved productivity:
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Digital transformation refers to acquisition of different technological tools to improve
cost-effectiveness, increases returns on investments and to improve efficiency to attain
organizational goals. By having well organized data, the decision-making process can be
improved, manual resources can be replaced by technological resources for faster operations,
profit or loss margins can be measured. Improved efficiency, better customer satisfaction will
create more surplus which can help the company to have access to more resources that will boost
productivity(Saberi and et.al.,2019).
Evaluation of new digital business models for cyber security and ethics
The main purpose of digitalization in the business like ASOS has been the influence of
different business activities which is a part of its business model. This has enabled different types
of cooperation in between businesses which has developed new products and services which the
business are trying to offer its customers. The business model is also designed for influencing the
relationship between the customers, employees and business. Digital innovations in the business
has also increased the pressure on this company which is directly reflected on current strategy
and new opportunities presented to the business(Osborn and Simpson, 2017). With the help of
research it has been found that digitalization in the business of ASOS has increased the attention
which the business got. This has increase the threat of cyber attack on the business. The main
aim of such businesses is to rapidly evolve the digital economy by maintaining structure in the
internal departments and hiring criteria. This process is done developed for the distribution and
development of product. Increase in the cyber threat imposes hindrances in the cyber security
process and practises which is required for a stable business organization. These practises do not
change the objectives of the business which is rapidly responding the new opportunities which
are presented in the market. Due to these reasons the business is forced on utilization of the top
five cyber practices in the organization for the adapting to safety of the business data and
procedure. The cyber practices are as follows,
Data encryption :
Encryption as the term is defined as the translation of some data and generation of a code.
Data encryptions is considered to be an effective way of securing the data. For getting the access
to an encrypted. The person needs to have the access of a secret password or key which will
enable them to decrypt it. Cyber crime and hacking is known for selling the corporate data of
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businesses(Osborn and Simpson, 2017). Due to this encryption of corporate data has been found
very effective initiative for the protection of information.
Data Masking :
Data masking is a method which is known for the creation of structurally similar version
of data which is the inauthentic version of the organizations original data. This strategy is
considered very effective in the performance in real world tests meaning that the website is open
to all the users on the internet. This is the scenario in which the organization has been seen
exposing their sensitive information to non production users. For understanding the effectiveness
of this process in is also important to provide the non-productive access to some important and
original data. This makes the data masking process a functional substitute of original data
(Weking and et.al., 2019).
Data reduction :
This process is mainly utilized in the production environment wherefore protection of
sensitive data a reduction is used for disguising it easily in two different styles. This process is
defined as the process of suppressing sensitive data for example personally identifiable
information into patterns that are considered comprehensive. For example converting codes
numbers into alphabet.
Multi factor authentication MFA.
This solution is considered to be must have for all the organization in the current market.
This is because they have strategies for advanced security. This is a critical tool which helps
businesses protect their identity from theft. Use of this tool in the organization create security
with the help of the traditional username and password login method. Although this process also
contains time based one time password method which is generated from smart phones or other
devices. As the user now needs two pieces of information it is very difficult to breach this
security(Srinivas, Das and Kumar, 2019).
Business uses these methods for also making sure that the data of the users are protected.
Data protection is a very important ethical behaviour which the e-commerce businesses need to
follow for making sure that business is getting effective relationship with the customers. The
digital business work because the customers have developed trust with the business. As they
expect to get the exact product as they have ordered. It is also important for the business to
understand the importance of maintaining trust with the customers (Schallbruch, 2018).
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Impact of new collaborative relationship and strategic alliances through digital technlogy
Collaborative relationship between the digital businesses is increasing Lee becoming a
very common phenomenon in the market. Large scale businesses I’ve seen to join forces with
new digital start-ups for bringing innovation in the market. These relationships of collaboration I
strategic partnerships or alliances which are made for harnessing innovation and ringing new
capabilities quicker to the business and also increasing its profit by blocking competition. These
companies are tech companies which can be retailers another business organization that create
collaboration for their own needs (Ozdemir, Kandemir and Eng, 2017). The following are the
impacts of Collaborative relationships with the help of digital technology on the business of
ASOS,
Digital partnership trend. :
In the current market it has been considered that little partnership is the key for making
an impact under market in this digital era. By joining forces with other companies, organization
can develop expertization Far the creation of innovative products and services. There has been
cases in which it has been seen that digital partnership can also benefit and organization in its
management and operations. The needs of the consumers have been seen to change rapidly and
very fast, this has created increasing competition for the business. This company can collaborate
with companies which are famous in the youth as its products are four young adults mainly
(Singh, 2016).
Growth and success. :
In the current situation it has been considered that groups and success is directly related
to the technological improvements a business can have in its products operations and
management. Technological improvements comes with some expenditure which the company
has to make to satisfy its leverage (Bouncken and et.al., 2018). Due to this reason many
organizations consider the option of partnering with another company which offers digital
strength and growth. It will help the company to gain an upper hand in the competition. Digital
technologies is also a great way for business to understand the needs of the customer prior to the
market with the help of anticipating the needs and expectations which will change in future of
the customers. Collaboration with another company can provide ASOS development in its e-
commerce website which will help it in understanding the needs of the customer.
Business economy :
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According to a study it has been founded that digital collaboration has increased a lot
between large companies and entrepreneurs (Khamseh, Jolly and Morel, 2017). This has been
affecting the GDP of the country. The study also states that organization which has been a part of
collaboration have contributed more to the GDP than the companies which have not. With the
help of this it is understood that digital collaboration increases the growth of the economy of the
business. Increase in the economy is very beneficial for the business of ASOS as its business will
also growth along with the economy.
Innovation :
Innovation is very important for all the business. Without innovation the business will not
grow and potentially lose its customers to other business which has brought innovation. This is
how the market of fashion works. Innovation is very easily brought in the business with the help
of digital partnership. Collaboration can provide the company funds, technology and even ideas
which the business can utilize for developing their products, services, operations and also
management. Some collaborate also provides business with customers base as the business
which collaborates also has a customer base that will also prefer this business (Arslan, 2018).
Thus, it can be said that bringing digital changes is important for the business so that it
can implement changes in the strategies of its products, services and operations. Digital changes
can occur in two ways. The company can either spend on resources required for the digital
changes which will require a researching team and the company can also join forces with a
digital company which will develop the business of this company with the help of its
technological guidance.
E-commerce principles used in business
Online shopping have become the major part for the well-being. While through which
many facilities of getting product delivered at door and e-commerce websites are gaining much
more for making their business successful. Therefore, the availability of the online products is
making the business more difficult in earning sources. While this might be also important for
taking the benefits from e-commerce sector (Schlecht, Schneider and Buchwald, 2021). Major
number of customer presence and make their major focus towards the e-commerce sector. Here,
some of the e-commerce principles that can used by the business:
User friendliness:-
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An e-commerce business such as fashion industry can make the use of their websites and
also allow easy to navigate. These websites also provides the visitors with the ample details and
make sure about the picture of their products along with without touching or seeing this could be
real. The more having the chance for realistic and easily having the better chances of getting the
conversion between the consumer and products dealers.
Unique design elements:-
While seeing the tough competition in the fashion business for cosmetic or clothing the
organization needs to make their branding websites something much better. While through which
easily customer can make their attraction and also have rivals for making the shoping through
online. As many of the people prefer for having the online shopping through which they keep
their attraction (Tayibnapis, Wuryaningsih and Gora, 2021). As same thing organization can also
offers many chances to impress the consumer. As they should also remembers, the first
impression is of utmost important.
Responsive technology:-
As business can use the heavy html coding, large size images and big flash while for
improving the design and look over their websites. This could be also important for e-commerce
site in any way for keeping the customer attraction and make their sites to be work fast, if they
sites will work slow than customer cannot afford the websites working with slow loading.
Moreover, having responsive websites that could definitely affect to the business and make the
loss of some potential clients.
Know target audience:-
In having the fashion business for clothing and cosmetics the many of the ladies will
having their e-commerce online shopping (Chen and et.al., 2021). For which the business have to
make sure about those kinds of words which can be easily used and make their easily brand
promotion. While designing the attractive websites that could lead for having the identification
of the targeted audience and that could be easier for making more strategies. This could be in
such way that, business will able to enhance their user experience and would also directly perk
up the revenue generation for their products.
Emphasize on security:-
Each person on their websites, need assurance about their personal or financial details
should be safe while through which they can also include the better security in designing the
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websites (Pagallo, 2021). Make sure about the payment should be done on safe modem sign up
and this could also resulting in hammering their sales targeting badly. It is important for the
business to emphasize on its security as it allows it to protect the crucial information of business
and its customers. In E-commerce practices the chances of fraudulent activities is always there
and recently it has been seen that many organizations are hacked which put their business at risk.
In e-commerce the customer's monetary informations related to their banks is shared. It is very
important for any e-commerce business to make sure that they are kept safely.
CONCLUSION
With the help of this project it can be concluded that the digital technology is considered
to be very important for an e-commerce company in many ways. This project showed how
digital technology is utilized in the business of ASOS plc. It also explained the advantages of the
use of digital technology and an overview of the current trends of the digital technology in the
business. This project also showed how with the implications of virtual business in the global
market the business of ASOS can grow. With the help of the latest digital business models this
project was successful in finding was of resolving the key business issues and ways of
addressing issues like ethics in the organization. It also provides the evaluation of the impact of
new collaborative relationship and strategic alliances with the help of digital business in the
organization. With a brief discussion this project is able to understand the e-commerce principles
of ASON Plc.
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Online
Singh., N. 2016. the rise of digital partnership.[Online] Available trough:
<https://www.itproportal.com/2016/01/11/the-rise-of-digital-partnerships/>
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