Digital Business Approaches of Amazon and Google

This report explores the digital business environment, emerging trends, and contemporary approaches. It highlights the effectiveness of digital technologies for attaining business objectives and developing a transformational digital strategy. The report explains the range of digital approaches taken by Amazon and Google, their impact on KPIs, and the importance of digital business.

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Contents
INTRODUCTION....................................................................................................................3
Explaining the range of digital approaches taken by organisation..............................................4
Exploring the relationship among contemporary approaches to digital business as well as their
impact on meeting KPIs successfully .........................................................................................7
Importance of digital business to Amazon and Google...............................................................9
Examples of digital technologies Used by Amazon and Google to attaining the business
objectives...................................................................................................................................10
Illustrating the ways in which digital technology can support organisations............................11
Constructing a digital strategy plan for supporting the implementation digital technologies
within an organisation................................................................................................................12
CONCLUSION .............................................................................................................................17
Covered in ppt............................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
Digital transformation can be understood as procedure of using virtual
technologies for creating and modifying business processes in order to create value for
customers as well as meet changing dynamic market requirements in an effective
manner (Abdelaal, Khater and Zaki, 2018). It can be adopted by organisations through
introducing intangible as well as customer-centric virtual tools which aid in improvising
customer journey in a strategic manner. In nutshell, digital transformation regarded as
capabilities which make operations of business organisations efficient and rapid which
aid them to stay ahead of their competitors in a rational manner. Business organisations
use descriptive plan for using the virtual solutions regarding manufacturing and
engineering of their services. It is considered as beneficial for organisations to maintain
a pace with emerging and dynamic customer demands which help them to survive in
future. It also aid establishments in competing in a better way in relation to economic
environment which is considered as dynamic in regards with technological evolutions.
Future of digital transformation is considered as important as it provides access in
relation to remote operations as well as organisational priority. It also help in analysing
varied aspects in relation to improved productivity, intelligent operations, timely delivery
and fast fulfilment of tasks in an effective manner. In order to have better understanding
regarding aspects of digital transformation, varied examples of differential organisations
have been taken into consideration.
This project report highlights an understanding of digital business environment,
emerging trends and contemporary approaches. This project report also demonstrates
the effectiveness of the use of digital technologies for attaining business objective. It
also consists of developing a transformational digital strategy for supporting virtual
technologies in an effective manner. In order to have better understanding about the
digital approaches, two organisations are considered namely, Amazon and Google

Explaining the range of digital approaches taken by organisation
Digital approaches are considered as necessary for transforming the
organisation on a virtual basis. Digital approaches can be adopted by organisational
managers through virtual strategy which aid them in maximizing the benefits in relation
to technology-focused initiatives in an effective manner (Andriole, 2017). It is vital for
organisations to develop their digital transformation strategies which aid them in
analysing, interacting as well as satisfying their customers in an effective manner. This
systematic approach is begin with understanding behaviour, preferences and demands
of customers. Numerous organisations have adopted practices in regards with digital
approaches which aid them in generating the growth opportunities for their operations in
an effective manner. Business models and digital approaches in relevance with
Amazon and Google are as follows:
Freemium model is used by businesses whereby an organisation offers basic or
limited features free to users and after some time ask for a premium price. This model
is used by Amazon through their digital streaming site, Prime by providing free trial to
their users and then ask them to subscribe it for using it on a continuous manner. This
help them in maintaining the value of their products in the eyes of customers.
Google does not use freemium business model for leveraging its growth in
marketplace. However, it can use this by providing regular searches as free feature
while for some typical searches they can charge extra fees.
Digital marketplace model can be understood as integration of information
technology through a e-commerce site which act as a facilitator among buyer and seller.
Amazon is an e-commerce business which led them to bring seller and buyer at
one place for generating their revenue in an effective manner.
Google has planned to adopt it but failed in its execution. Managers of Google
believes that lack of commission fees can be an attractive proposition but it reduces
their revenue streams. Marketplace advertisements plays a signifiant and effective role
than search advertisements which led Google to build a marketplace.
On-Demand service model is concerned with availability of services at any time
which is suited to individuals. Amazon can adopt this model by providing their products

through on-demand service. This would help them to increase their revenues by
catering diverse needs of customers and making their position viable.
Google provide on-demand search results to their users which help them to
smoothly function their operations. Through this, they have earned people's trust and
made this brand viable in the eyes of millions of users.
Business to business model is concerned with dealing with companies and
selling their products or services to them. At contradictory to this, business to
consumer type is concerned with whereby an organisation deals directly to consumers
for their specified transactions.
Amazon follows the retail business model whereby they procure the goods from
vendors and sell them online as well as deliver them to doorstep of their customers.
Managers of Amazon can use business to business model by dealing and collaborating
with companies to procure their products at wholesale prices.
Google use business to business model whereby they deal with companies for
advertising their products or services and generate revenues from them. Their
advertisements are seen by their uses through their research and persuade them to buy
them.
Varied digital approaches in relevance with Amazon are mentioned below:
Use of artificial intelligence and machine learning – Artificial intelligence is
considered as important as it acts like a stimulator which helps in understanding human
intelligence in regards with generated machines (Berman and Schallmo, 2021). It is
adopted by organisations for providing personalised experience to their customers in
relation to their search as well as purchases on virtual basis. It is considered as
significant as it acted like a main driver for emerging technologies in regards with big
data as well as robotics. For example, managers of Amazon leverage artificial
intelligence by providing smooth customer identification as well as authentication
process which leads to deepen the relations with customers. This has provided them to
store the large data sets regarding personal information of their customers in an
effective manner. Company is boasting mature artificial intelligence applications for their
varied operations such as logistics, warehousing and many more. They essentially
works on the principle of customer obsessed instead of competitor-focused. Through

using artificial intelligence they can provide their customers personalised product
recommendations which helps them to attract massive number of customers and grow
their business in an apt manner.
Alexa enabled voice shopping- Amazon has designed their voice-enabled
Alexa in such a way that it allows users to discovered and procure products through
voice prompts rather than clicking or tapping a screen. Through this, they are providing
excellent customer experiences to their customers by doing their transactions hands-
free. With the aid of Alexa, people can activate it and start their shopping by sitting
anywhere on a remote basis. It also helps them to gain an understanding of their
products in an effective manner.
Digital approaches undertaken by Google are as follows:
Use of Google Cloud- Managers of Google has built and provide their own
cloud system to their client companies and individuals which help them to provide
unique features of saving their information for longer period of time. Through this, users
can collect, assimilate and keep the desired information with them for long-run.
Google Ads- These digital approach has helped Google to open up many revenue
streams by accelerating massive number companies to use this feature in an effective
manner. Through this, managers of Google collaborate with other companies in order to
be viable in customer search in regards with search. Pay-per-click concept is also
getting popular whereby business organisations have to pay for the website clicks as
well as received calls regarding their operations (Brock and Von Wangenheim, 2019).
Business model of Google
Business model of Google is somewhat called as hidden one as it is the not the
user who pay for the desired services. Their revenue streams is majorly comprises of
paid media whereby companies pay a specific amount to Google in order to be viable
for the customers. Google earn their revenue from Google Ads, AdSense, AdMob and
many more. Business model canvas of Google is as follows:

Figure 1: Business model canvas of Google
Source: Google Business Model. 2022
Business model of Amazon
Business model of Amazon is providing a platform to numerous retailers for
selling their goods and reaching to massive number of customers. Apart from this,
Amazon has followed varied revenue streams such as:
Amazon Prime is a subscription model whereby it provides online streamlining
regarding music, movies and web series. Amazon Web Services is an IT structure
platform which is a low-cost model provide services to establishments on a global scale.
Business model canvas of Amazon as follows:
Source: Amazon Business Model. 2022
Exploring the relationship among contemporary approaches to digital business as well
as their impact on meeting KPIs successfully
It is imperative for business organisations to adopt contemporary approaches in regards
with performing activities in an effective manner (Ciasullo and Lim, 2022).

Contemporary digital approaches which are followed by Google as well as Amazon are
social media platforms, enterprise resource planning and many more.
Through using social media platforms, managers of Amazon have advertised their
products, services and varied offers which can stimulate people to visit their site and do
shopping as per their choice as well as time.
Managers of Google use social media platforms for analysing their overall ranking
algorithms in an effective manner. For advertising, they use You Tube, Orkut and many
more. This made their brand more viable and engaging for customers.
Enterprise resource planning is used by managers of Amazon by recording their
transactions in relevance with supply chain, accounting, risk management in an
automated manner. This help them in leveraging their time in productive work rather
than wasting it in clerical things.
Managers of Google use enterprise resource planning in generating a consolidated data
of their operations which led them to engage in more productive work as well as
generate revenues.
Social retail store can be described as a practice of using social media platforms for
engaging with customers and sell their offerings by using both physical as well as digital
channels simultaneously. Amazon operate its operations through an e-commerce
website whereby it provides a social platform to its customers and retailers for procuring
as well as selling their specified products. Managers of Amazon also use Facebook and
Instagram for promoting the products they offer on their e-commerce platform.
Impact of digital business operations regarding key performance indicators
Key performance indicators can be described as quantifiable measures which
are used by business organisations for evaluating their progress and performance in an
effective manner (Heavin and Power, 2018). These KPIs are termed as a guide which
helps in setting targets and milestones for gauging the progress of business operations
in a real-world situation. These key performance indicators aid in gaining insights which
help organisational managers in taking the critical decisions in a better way. It is
considered as important as it helps in communicating business objectives to employees
and provides direction to them. Key performance indicators which are used by
managers of Amazon works essentially to visualise their comparison among a target as

well as key value in an effective manner. Varied key performance indicators in context
to Amazon are as follows:
Advertising cost of sales KPI- This KPI is used by Amazon for measuring their
performances in regards with marketing campaign. It is measured on the basis of
generated revenues as well as cost of marketing campaign in an effective manner
(Kane, 2019). This is considered as significant for measuring traffic segment, product
category and keyword profitability data of Amazon in a strategic manner. It can be
disadvantageous for Amazon as it is time-consuming process which can compel
managers to uphold other significant operations.
Ad conversion KPI- This is concerned with measuring percentage of clicks in
relation to an advertisement which can be converted into sales. An ideal conversion rate
determined by managers of Amazon is 2 to 5%. Amazon ad conversion rate is
essentially based on procurement of products and advertised commodities reports. This
KPI has a limitation of providing accurate results to managers of Amazon.
Inventory performance index KPI- This key performance indicator is essentially used
by managers of Amazon which aid them in managing their inventory as well as stocking
up their products on a constant basis. This can be disadvantageous for Amazon as it
can not help in measuring an accurate rate of excess inventory in case of sales return.
Varied key performance indicators used by Google
Number of sessions and users- This Google analytical tool is used for
monitoring the traffic in an effective manner. This KPI is used by managers of Google
for monitoring quantitative development for future analysis. It has a limitation of not
providence of privacy to the users.
Bounce rate – This is concerned with monitoring the percentage of sessions in
relation with single page of website (Kotarba, 2018). This is considered as an important
indicator which helps to evaluate whether desired content is reached to users or their
demand are satisfied. This is used by Google for have a quick evaluation in regards with
website traffic. It can be disadvantageous for Google as it based on the sampled data
which is considered as complex in nature.

Average time on page- This key performance indicators is concerned with page
tracking which led to measure the average time of user spend on a specified page. This
key performance indicator is used by managers of Google for evaluating their
performance in an effective manner. It can be disadvantageous for Google as through
this, managers can interfere in privacy of the users.
Importance of digital business to Amazon and Google
Digital business is considered as important for organisations as it helps in
providing value to customers as well as enhancing their viability in market (Loonam and
Et. Al., 2018). Through this, organisations can make their positions viable and engage
massive number of customers towards their brand. With the help of adoption of digital
strategies in an effective manner, they can grow on rapid basis, uncover varied markets
and form strategic partnerships in an effective manner. Managers of Amazon took
varied benefits of applied digital approaches in an effective manner which leads them to
make their operations viable. Managers of Google also adopts digital strategies in a
critical manner which led them to engage large number of customers towards their
brand. Digital technologies is considered as helpful for enhancing the business
operations in a rational manner.
Examples of digital technologies Used by Amazon and Google to attaining the business
objectives
Digital technologies are concerned with the using electronic tools, systems and
resources which is used by business organisations for generating more revenue as well
as enhance viability in their operations (Manfreda and Štemberger, 2018). These digital
technologies have transformational impact on business organisations and helps them to
create value for their customers in a strategic manner. Contemporary digital
technologies in relevance with Amazon are as follows:
Use of artificial intelligence- Managers of Amazon has secured a competitive
edge by using artificial intelligence for improvising their effectiveness. It is imperative for
an e-commerce business to gain insights regarding demands and preferences of
customers in order to provide those personalised recommendations (Pihir, Tomičić-

Pupek, and Furjan, 2018). It is advantageous for Amazon as it lead to reduction in
human errors which help them to attain their business objectives. However, it has some
drawbacks too such as security concern and higher rates of unemployment.
Use of robotics- Managers of Google are working on a new robotics technology
which helps them to have access to make robots learn about navigating directions in an
effective manner. Google is concentrating on enhancing their machine learning for
making robots learn how to grasp things as well as navigating directions on a constant
basis. This is considered as beneficial for Google as it helps them to improve their
productivity as well as brand reputation. This is considered as disadvantageous as it led
to losses of potential jobs and also incur investment cost at initial level.
Data analysis and use of artificial intelligence- Google has developed their
strategies in accordance with data analysis and artificial intelligence in an effective
manner. While adopting new digital practices by using virtual technologies, business
organisations have chances in digging more into personal life of human for the sake of
providing personalised recommendations to them (Gong and Ribiere, 2021). Managers
of Google has implemented these strategies in an effective manner which led them to
create valuable as well as relevant content for their users. Artificial intelligence is
considered as disadvantageous as it does not intend creativity and innovative practices
in users in an effective way.
Use of Google cloud platform- Google has designed a platform for the
processes in relations to cloud computing. It has competitors such as Amazon web
services as well as Microsoft Azure in an effective manner. Google cloud platform aid is
making collaborations with other corporates for generating higher revenues in an
effective manner. Varied services which are provided by Google cloud platform are
computing, machine learning, securing big data, machine learning and many more.
Managers of Google use enterprise resource planning software known as SAP for
streamlining its cloud information in a globalised as well as decentralised manner.
Google use mobile technologies for enhancing its operations and make its more
successful.

Managers of Amazon use software for enterprise resource planning for assimilating
their vast data sets properly for providing recommendations to users. Through e-
commerce website of Amazon, people can shop from any time through their mobile.
Mobile technologies are considered as costly to procure as well as requires huge
maintenance costs. Enterprise resource planning software are complicated to use and
needs proper training to run them smoothly.
Illustrating the ways in which digital technology can support organisations
Digital technology is considered as helpful for organisations as it help them to
position themselves in a viable manner (Shahi and Sinha, 2020). Establishments can
enhance their viability as well as influence on industry by adopting digital technology
while performing their operations. Varied ways in which digital technology help
organisations in relevance with Amazon and Google are as follows:
Increases efficiency and productivity- Digital technology helps in enhancing
efficiency as well as productivity of an organisation and its employees. For example,
with the help of digital technology, managers of Amazon have made their operations
customer-centric for attractive prospective buyers. In relevance with Google, due to
adoption of suitable digital technologies, they have secured competitive edge in a
strategic manner.
Improved customer engagement- It is imperative for businesses to engage as
well as retail customers for a longer period of time. Implementation of digital technology
aid establishments in engaging customers by adding value to customer experience in
an effective manner. For example, with the adoption of digital technologies like Amazon
Prime and web services, they have engaged a large number of customers in a strategic
manner. With the help of new advancements in artificial intelligence technology,
managers of Google can engage more users towards their search engine.
Greater innovative practices- Digital technology has opens up the varied ways
for larger innovative practices as well as emerging unique ideas. Through using
digitalised techniques, innovative practices can be enhanced into a more attractive and
appealing manner. For example, managers of Google as well as Amazon have led are
trying to bring innovative practices in their operations through digital technology.

Constructing a digital strategy plan for supporting the implementation digital
technologies within an organisation
Digital strategy can be described as written descriptive plan which is created for
clarifying the virtual goals as well as determine to adopt right technology and processes
for attaining those objectives. Digital strategy plan in accordance with Amazon is as
follows:
Aligning the digital transformation strategy
Amazon is a company which has digitally transformed its overall business
operations. However, it is planning to come with new digital transformational strategy by
upgrading its on-going operations. Its Amazon Web Services is planning to launch a
digital suite for small businesses. Through this digital strategy, small businesses are
provided with low-cost software which help them in varied procedures such as
accounting, managing human resources and engaging customer support in an effective
manner. They are planning to introduce this new system in next 6 months.
SWOT analysis of Amazon
Strengths
 Managers of Amazon have focused
on adopting digital technology
which is a great strength of
Amazon. Through e-commerce website of
Amazon, they have gained
competitive advantage.
Weakness
 Managers of Amazon operates their
e-commerce business through a
non -zero profit margin model which
can dent their profitability.
 Lack of proper training for using
their cloud system can poses as a
weakness for them.
Opportunities
 Adoption of advanced technologies
are considered as an opportunities
for Amazon. People's choices towards digitalised
shopping and transactions poses as
Threats
 Security concerns and identity thefts
poses as a threat for Amazon for a
long run.
 Amazon can face competition from
varied online retailers who are

an opportunity for Amazon. coming in light with their digitalised
tactics.
PESTLE Analysis
Political factors: It is considering as an crucial factors because it related with
political condition of the nation. For improve their performance level, it is important for
Amazon to implement all the government rules and regulations within their activities
which may help in enhancing the productivity level at market place. As a famous e-
commerce company, Amazon operate their activities in various countries so that they
have to consider all the political factors within their business to execute their activities in
appropriate way.
Economic factors: It is related with inflation rates, economic cycle, interest rate,
foreign exchange rates and many more. All these are directly affect the organizational
activities. Thus, it is crucial for Amazon company to efficaciously assess as well as
evaluate all the factors to manager their entire activities in suitable way which helps in
improving overall performance of the company. In this, it is more complex for Amazon to
effectively develop all the resources in appropriate way which may leads in reducing the
chances of any kind of risk factors.
Social factors: Basically the growth level of telecommunication is very high in
which number of company run their services with the purpose of achieving desirable
success. In this customers belief, attitude, taste and preferences play vital role in market
place because in this company easily enhance their profitability level by understanding
all these social factors. In context of Amazon, they serve prime services to its customers
according to needs and wants in order to attain their satisfaction level.
Technological factors: Changes are rapidly take place in technologies so that it
is important for Amazon to adopt as well as use advanced technologies within their
business activities in which they easily provide high speed network to its customers in
order to attain their higher satisfaction level. If firm does not focus on high speed
technologies as well as network then they reduce their performance level at market
place and also reduce their profitability as well.

Legal factors: This is one of the major element which consider legal structure
which is essential for business organization to follow all the laws and standard in order
to protect their rights of property. Thus, it is necessary for company before implementing
all the activities which may leads in rising their performance level at market place.
Basically, it includes various factors like discrimination law, data protection act and
many more. All these help in maintaining ethical performance of Amazon.
Environmental factors: This type of factor which is important for business
organization to reduce the negative impact on environment. In this context, the main
focus of Amazon is to reduce the carbon emissions which helps in protecting the
environment. In this recycling, endangered species, waste management and many
more which is important for considering for business organisation to improve their
productivity level at market place.
Objectives for this implementing a digital suite for small businesses is to provide them
confidence so that they can beat the external competition
SMART objectives in context to Amazon
 To reduce security concerns through adopting automated security software by
15% till 2023.
 To improvise conversion rate on e-commerce site by 10% till the end of 2022.
Managers of Amazon are planning to develop a mobile application which contains
software of accounting and other related aspects which help small retailers to run their
business operations on a smooth basis. This application will known as Amazon Digital
Suite.
Amazon has determined to use key performance indicator of Percent of Sales New to
Brand KPI. Through this, managers of Amazon can evaluate that they have collaborated
with how many new retailers and how they are performing in an effective manner. They
can track by using their software how and at what level their performance have
enhanced.
Preparing for cultural change
In order to successfully proceed with the digital transformation, varied stakeholders like
employees, top management and customers have to be informed as they are also have

to get involved in the certified processes. Employees need to get understood about
varied drawbacks and benefits of the change. Investors are ought to be told for new
process indulged in digital transformation strategy in an effective manner. An appealing
market campaign should be presented for attracting the retailers to inform them about
the software.
Agile leaders are considered as change agents and plays a significant role in
business transformation process. Although, it is not for the first time for employees to
Amazon to watch digitally transformed processes. However, agile leaders are those
who are trusted by employees and they have the ability to make employees to embrace
changes in a strategic manner. They have valuable insights and are capable to take
critical decisions. Managers of Amazon can appoint agile leaders from their top
management for bring changes in a radical basis which are followed by slow and steady
processes. Through this, they can enhance their digital transformation practices in an
effective manner.
Potential challenges that can arise in digital transformation strategy and ways to
solve them in relevance with Amazon are as follows:
Resistance to change- Employees and other stakeholders can resit the
changes which can hamper the performance as well as viability of Amazon. This can be
solved by agile leaders who narrates the benefits of digital transformation of Amazon in
a strategic manner.
Complexity of software and technology- New processes as well as
technologies can act as intimidating which can create challenges in influencing the
users for its adoption. This can be solved by providing proper training to users.
Start small but strategic
Managers of Amazon should adopt modular approach through which tasks can
be bifurcated into small denominations in order to make their execution successful.
Managers of Amazon are determined to provide this digital suite applications to
residents of USA. This has been chosen for initiating modular approach as
headquarters of Amazon is situated there. USA is considered as a country whereby
technological and digital changes are approved whole heartedly.
Mapping out digital technologies

Managers of Amazon have chose to adopt artificial intelligence for designing the
mobile application. They are also determined to use their own mobile application which
is named as Amazon Digital Suite. Through mapping out their digital technologies,
managers of Amazon can implement the software effectively for enterprise resource
planning. They can also gather vast information regarding their digital technologies
through mapping out their technology.
Seeking out partners and expertise
It is imperative for businesses to discover their strategic partners as well as
expertise in relation to digital technology in a strategic manner. However managers of
Amazon has their own technical team for developing their mobile application. For their
relational database services, Amazon has used varied services such as Oracle, AWS,
MySQL and many more.
Gathering feedbacks
In order to collect feedbacks in relevance with digital transformational strategy,
interviews, surveys can be used. Through interviews, a face-to-face interaction is made
between departmental manager and strategic officer. With the help of focus groups, a
small number of stakeholders can be questioned in a moderate manner regarding digital
transformational strategy developed by managers of Amazon.
Scaling and transforming
At this stage, it is the time for managers of Amazon to analyse their formulated
strategy and execute that in a strategic manner. By using modular approach, managers
of Amazon have gain insights regarding their digital transformational strategy in an
effective manner. After getting success from their modular approach, managers of
Amazon are planning to rolling out their campaign in other parts of world.
Digital transformation aid business organisations in securing a competitive edge
through formulating a strategic plan. Through this strategic plan, managers of Amazon
have gain insights regarding potential challenges and ways to solve them. They have
also gathered feedbacks in relation to their digital transformational strategy. Using
digital technologies helps organisations in modifying and enhancing their operations as
well as processes which help them to gain competitive advantage. Managers of

Amazon has determined to digitally transform their operations and are planning to
develop a mobile application known as Digital Suite. This application would provide
them to engage small retailers by providing an application. This strategy can be
implemented by managers of Amazon through having access of their strengths,
weaknesses, opportunities and threats. This can be implemented after taking proper
feedbacks from varied stakeholders.
CONCLUSION
From the above presented information, it has been assessed that digital
transformation help organisations in using technology for adding value to customer's
experiences in a strategic manner. It is imperative for establishments to adopt digital
practices in their business operations effectively which helps them in making their brand
viable and offers added value to their customers.
Covered in ppt

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