Different Approaches to Digital Transformation

BTEC LEARNER ASSESSMENT SUBMISSION AND DECLARATION
When submitting evidence for assessment, each learner must sign a declaration confirming that
the work is their own.
Learner Name:
Assessor Name:
BTEC Programme Title: BTEC Level 5 Higher National Diploma in
Business(Accounting and Finance)
Unit or Component Number and
Title: Unit 14: Digital Business in Practice
Assignment Title: DBP1: Digital Business Approaches (1 of 2)
Date Assignment Submitted: 20/02/2022
Please list the evidence submitted for each task. Indicate the page numbers where the evidence can
be found or describe the nature of the evidence (e.g. video, illustration).
Assessment Criteria Page no Evidence submitted
P1Explain the range of digital approaches taken by
organisations. 3 - 4
Report:
- 1850 words
- 5 pages
P2Explore the relationship between contemporary
approaches to digital business and their impact on
meeting KPIs successfully.
4 - 5
M1Evaluate the importance of digital business to
organisations in a global context. 6
P3 Investigate a range of digital technologies used
by organisations to achieve business objectives. 5 - 6
M2Assess the effectiveness of the use of digital
technologies on business objectives in a range of
global organisations.
6 - 7
D1Critically evaluate a range of digital business
approaches within global organisations to promote
new business growth.
7
Learner declaration
I certify that the work submitted for this assignment is my own. I have clearly referenced any
sources used in the work. I understand that false declaration is a form of malpractice. I am aware
that any case of plagiarism will be handled according to school policy.
Learner signature: Date:

Table of Contents
Introduction.................................................................................................................3
1. Digital approach (p1).........................................................................................3
2. Relationship between KPI and Digital Approach (P2)......................................4
a) Amazon, the online retailer, sold 100 million products in April 2018...........4
b) Alibaba - Singles' Day sales will climb 1.5 times by 2020.............................4
3. Digital Technology (P3).....................................................................................5
4. Functions of digital business (M1).....................................................................6
5. The effectiveness with which technology is employed to accomplish a
commercial purpose. (M2)..........................................................................................6
6. Encourage the growth of new firms (D1)..........................................................7
Conclusion...................................................................................................................7
References...................................................................................................................8
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Introduction
I am part of the Digital Services and Transformation promotion team, understanding digital
businesses of all sizes. The purpose of this summary is to gather information and knowledge so
that our team can provide seminars and forums to solve SME issues.
1. Digital approach
To apply these above-mentioned emerging trends in digital transformation, companies have to
adopt suitable and potential approaches to be successful. When examining the current adoption of
digital transformation among big and forefront organizations, three common and contemporary
approaches are defined.
The first contemporary approach to digital transformation is innovating by experimenting. The key
feature of this approach is that companies will use experiments to assess, adjust, and improve
strategy implementation (Li, 2020). Under the unpredictable digital business environment,
generating and implementing a new strategy over a lengthy period of time is no longer suitable
and effective. Meanwhile, companies use strategies as a broad direction, which allows them to
regularly assess and adjust to fit with changes and trends. From that basis, firms can better react to
changes in the external and internal digital business environments (Li, 2018b). This is the reason
why many multinational firms and big enterprises have applied this approach to digital
transformation. For instance, Alibaba, which is a Chinese global technology firm specializing in
retail, e-commerce, and technology, has applied the innovating by experimenting approach. The
company’s key secret is to experiment with different business ideas and apply effective and
potential ones while eliminating ineffective ones. Such an approach significantly contributes to the
company’s success (Li, 2018a).
The second approach to digital transformation by forefront organizations is the incremental
approach to radical transformation (Li, 2020). The key idea of this approach is that companies will
adopt a central radical transformation, followed by a series of interlinked steps and strategies to
gain increasingly profound changes (Li, 2020). Companies can dramatically innovate numerous
initiatives at once in modest increments by separating huge projects into strategic investments and
monitoring competence at each level. This strategy also reduces the chance of a single large
project failing and helps firms to choose which initiatives will provide the best returns or have the
most impact on their investment (Armstrong, 2020). An example of the incremental approach is
Walmart, which is an American multinational retail corporation. Instead of adopting disruptive
innovations, Walmart has broken down its digital transformation processes into smaller areas and
implemented digital into every area (Roy, 2021). The company digitalizes many aspects of its
business, including supply chain, marketing, sales, customer service, store operations, etc. For
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