Digital Business and Disruption

This report explores the impact of digital business and disruption on traditional business models. It covers strategies for new organizational environments, such as marketing, e-procurement, and infrastructure. It also compares old and new business models and evaluates digital business principles. The case study focuses on Daily Essentials Company and its transition to digital business.

Digital
business and
disruption

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
A Brief description of the business..............................................................................................3
TASK 2............................................................................................................................................5
Digital techniques strategies for new organisational environment and their description
(marketing, e-procurement, infrastructure)..................................................................................5
TASK 3............................................................................................................................................6
Comparison of old business with new business to formulate what changes have occurred after
digitisation...................................................................................................................................6
TASK 4............................................................................................................................................8
Evaluation of digital business principles.....................................................................................8
TASK 5............................................................................................................................................9
Traditional business models and process.....................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
In the era of stiff competition most of the national and international companies are looking
forward to perform full digitisation of business. Digital business is the new way of completing
major business tasks and operations with the help of information and technology (Boojihawon,
2018). Digital business is considered as safe and convenient way of doing business transactions
in order to perform operations in a better manner. In this report all the major aspects and
elements of digital business are covered in a precise manner. This report also includes digital
business strategies for a new organisation environment and comparison of old business with new
business to formulate different challenges. In this report example of company Daily essentials is
taken into consideration which is headquartered at Sydney. The company daily essential is doing
traditional business of selling consumer durable goods at the marketplace. Management of daily
essentials has now decided to convert business to digital business for increasing business
efficiency.
TASK 1
A Brief description of the business
Daily Essentials Company is operating in the market of Sydney since a very long time and
earning a good amount of profit. The company is involved in selling major consumer durable
goods at the marketplace using traditional business techniques. The company has several
branches in Sydney and it actively distributes several products at the marketplace. Daily
essentials have hired several employees in order to perform different operations and functions.
Recently the management of Daily essentials has decided to expand the operations in a company
meeting. In order to meet different objectives and goals of the company, management of
company has decided to convert major activities and operations into digital business. Daily
Essentials Company has decided to include role of information and technology in the business in
order to maximise revenue of whole business organisation.

Figure 1Digital business strategy elements

TASK 2
Digital techniques strategies for new organisational environment and their description
(marketing, e-procurement, infrastructure)
In functioning of an organisation in a precise manner there is a crucial role played by
different strategies. It is the major responsibility of management present in a company to
implement formulated strategy in a precise manner to develop a competitive edge. The
explanation and formulation of different strategies for Daily Essentials Company is given below:
 Marketing- In today’s stiff competition world most of the companies are involved in
performing different marketing operations with help of digital technology. In order
to lead the marketplace it is essential for a company to take support of information
and technology. It is necessary for Daily Essentials Company to hire professional IT
experts for performing marketing operations in order to attract large number of
customers. In order to expand business in the market of Australia it is essential for
the company to keep a dedicated digital marketing staff. Major advertisements
related to products and services of company should be published on social and digital
media in order to attract maximum customers.
 E-procurement- In digital business world e-procurement is considered as a way
through which a business sells its products and services to different customers over
internet. This technique is practiced by famous e-commerce companies like Amazon
and E-bay in a precise manner. It is a need for Daily essential company to consider
formulation of an effective e-procurement strategy in order to expand its business at
the marketplace. The company should take help of professional IT experts in
formulation of precise strategy and must also consider different aspects of policy
formation. It is necessary for Daily Essentials Company to develop a safe and secure
online website in order to sell different products and services.
 Infrastructure- There is need of effective and professional infrastructure at the
marketplace in order to perform different operations and functions. If a business has
precise and professional infrastructure then its internal environment will be
considered as very strong. In business development there is a crucial role played by
the infrastructure in order to maintain efficiency in business operations. Daily

Essentials Company will have to perform effective investment in order to develop a
crucial infrastructure for the business. The management of company will have to
work hard in order to synchronise different managerial task for performing digital
operations (Dellermann, 2017). The main challenges related to infrastructure will be
related to financial management and manpower handling which will be faced by
taking help of strategic management.
TASK 3
Comparison of old business with new business to formulate what changes have occurred after
digitisation
There is a huge transformation observed by a business when it converts from traditional
business to digital business. There are many changes and challenges faced by a business
whenever there is transformation observed. The various changes which are occurred after
digitisation in Daily Essentials Company are mentioned below:
 Management- In traditional business of Daily Essentials Company most of the
operations related to management are changed in a precise manner. Earlier the workload
and pressure was immense on management in order to perform different operations at the
marketplace. Now the management related activities are changed due to influence of
digital business and technology. The roles and responsibilities of management have also
changed with the introduction of different techniques in Daily Essentials Company.
Earlier management was given training for performing different functions for traditional
business. Now the management of Daily essential company is given training about
handling different operations related to online functions (Gupta, 2019). The major
departments of company like financial and marketing management are changed a lot after
business change. In the era of stiff competition it is essential for management to focus on
different techniques which are helpful in providing good managerial functions.
 Operations and functions- All the operations and functions related to the business
organisation are changed in a precise way with the change in business. The major
functions are now performed with help of digital technology in Daily Essentials
Company. In organisational functions and activities most of the times there was a use of
pen and paper in major operations. With the change in operations and functions different

roles and responsibilities of workers and manpower are also changed. In order to handle
various functions and activities it is responsibility of professional management which is
present in the company. In organisational development various challenges are faced by a
business at the marketplace. The management of Daily Essentials Company should focus
on generating new revenue techniques in order to perform precise survival of the
company. Production and quality management role has been changed in a precise manner
after introduction of digital business. It should be priority of management to develop
different operations and strategies in order to handle major tasks for business
development.
 Distribution and marketing- In traditional business there are many types of distribution
and marketing techniques which are completely different from digital business. The
techniques which are performed in traditional ways of doing a business are majorly
facilitated by professional management. In organisational development in traditional
business it is essential for a business to perform costly and hard work related functions to
survive at the marketplace. In digital business the marketing and distribution functions
are performed in a precise manner with less cost that increases business revenue. In
marketing related functions it is essential for IT experts to install different software which
facilitates sales development. It is essential for marketing and operational management to
perform advertisement on social media and internet in order to attract large number of
customers.
 Organisational policies and plans- With the transformation of traditional business into
digital business all the major organisational policies and plans also change. The structure
of whole company changes in a different manner when the company shifts to digital
business techniques (Levine, 2019). The whole plans and policies related to Daily
Essentials Company are changed in a precise manner. The strategy and plans related to
achievement of different goals and objectives are also changed with digitisation. It is
essential for the company to follow new rules and regulations in a precise manner to gain
competency edge.

TASK 4
Evaluation of digital business principles
In the field of digital business in era of information and technology it is essential for a
business to follow major digital business principles. It is essential for a business to follow all the
principles in a precise manner to be successful at the marketplace (Sathananthan, and et. al,
2017). Most of the successful business organisations are involved in effective implementation of
these principles. The various business principles in context of Daily essential company in digital
marketing are explained below:
 Keep it simple- The major functions and operations which are related to digital
marketing are to be kept simple in order to attract a specific customer. Complexity in
different functions can make a customer unhappy with the business and can change
business choice of the customer. Simple web content and website will always make a
customer to purchase something. Daily essential company has to perform specific
activities and tasks which are related to simplifying the business needs in digital
marketing sector.
 Security and privacy- It should be the utmost priority of management that is working for
a company to provide safe website to customers. In the era of stiff competition between
different companies in Australia it is essential for Daily essentials to provide security to
users (Scuotto, 2017). There are many cases of cyber crime which are arising in Australia
on day to day basis so it is necessary to take care of online frauds. It is essential for
company to take care of all the necessary aspects of security.
 Quality management in products and services- In starting a digital business at the
marketplace it is need for maintaining effective quality in products and services. The
management of concerned company should keep in mind quality management of
different products and services. Management of Daily Essential Company should keep in
mind all the necessary aspects of quality and must hire professional quality management
staff for better operations. In the era of stiff competition between E-commerce companies
the quality management is essential part of maintaining effective operations.
 Ethics and integrity- It is one of the main principles in field of digital business to keep
in mind and perform major operations with ethics and integrity. The management of
company should teach and train all employees to perform all operations with ethics and

integrity in order to maintain smoothness in operations (Singh, 2017). In business
environment it is essential for major companies to perform operations with ethics and
integrity. In development of a business organisation values and operations should be
performed with honesty and integrity.
 Sustainable business- The digital business should focus on performing all activities and
functions with sustainability in order to facilitate future generations. The operations of a
business should be performed while keeping in mind importance of ecosystem. Less
paperwork is performed in sustainable business to facilitate the whole ecosystem. It is
very much important for a business to perform sustainable operations at the marketplace.
TASK 5
Traditional business models and process
The traditional businesses operate at the marketplace with old techniques and process in
order to sell respective product at the marketplace. Earlier Daily Essentials Company also
followed traditional business model to perform different operations at the marketplace. Most of
businesses organisations which are competing with each other are indulge into old practices of
digital business (Sousa, 2019). Following are traditional business models and process which are
followed by major companies:
 Start a business- It is considered as primary stage in starting of a business which deals
with all major transactions of business commencement. In this stage an entrepreneur
starts a business in a traditional way that is without taking any help from information and
technology. Start ups in an economy are considered as major backbone and traditional
businesses are helpful in generation of effective for employment and revenue at the
marketplace.
 Creating product and service- In traditional business a company generally formulates
effective goals and objectives at the marketplace. The entrepreneurs in traditional
businesses are generally concerned with creating effective products and services or
purchasing them from local suppliers. It is considered as secondary stage in achievement
of different goals and objectives for traditional business. In this stage operations related
to marketing are also performed by taking help of simple marketing management.

 Work hard to get customers for business- As compared to digital business in
traditional business the concerned entrepreneur effectively works hard to attract
customers for business. In business development the traditional methods are less effective
as compared to digital business. The main function of an entrepreneur is to formulate
effective and precise strategy to gain customers from marketplace (Tziogas, 2019). In
traditional businesses it is important for a person to formulate business development
goals and to achieve them in a specific period of time.
 Business operations/customer handling- This is considered as last or final stage in
traditional business models which is concerned in handling different types of customers
for the business. In the era of stiff competition it is very much hard for a business to
perform all business operations and handle different customers at a particular moment of
time (Wiesböck, 2020). Daily Essentials Company will earn a huge profit at the
marketplace by formulating different strategies with help of professional IT experts. In
traditional business it is complex for an owner to perform major operations related to a
business. The management handling is also complex and hard in traditional business as it
includes different tasks and objectives on daily basis (Urbach, 2019). In a business it is
also essential for a company to perform different marketing operations with precise
strategy. Traditional business model ignores various aspects of customer handling to
develop different operations.

CONCLUSION
From the above stated report it can be concluded that digital business plays a crucial role in
development of major transactions. In order to gain competitive advantage at the marketplace it
is essential for a company to hire professional IT experts. In order to survive at the marketplace it
is necessary for a company to implement various strategies in a professional manner. In business
development it is the major responsibility of top level management to support all the major
elements of digital business in a precise manner. In the era of information and technology it is
essential for a company to develop a professional approach in performing digital operations.

REFERENCES
Books and Journals
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business model design process. In 2017 Internet of Things Business Models, Users, and
Networks (pp. 1-8). IEEE.
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Wiesböck, F. and Hess, T., 2020. Digital innovations. Electronic Markets, 30(1), pp.75-86.