Digital Business: New Venture Formation and Argumentation for Decision Lens

Running head: DIGITAL BUSINESS
Digital Business
(Decision Lens)
Name of the student:
Name of the university:
Author Note

1DIGITAL BUSINESS
1. Executive summary
The study demonstrates processes of new venture formation and argumentation for digital business
model or systems and resources for Decision Lens, UK. It is an end-to-end, complete software
solution. Moreover, it is a business process to identify, analyze, prioritize and measure various
resources, projects and investments. It is the time for Decision Lens to put away engineering design
schematics and display clients travel brochures. The main problem is to make digital assets stand
out, be visible and noticed in this noisy and crowded world. Return on Investment for Decision Lens
has been depending on how fast and well the clients have been responding. Their unique selling
proposition has let them stand apart from competitors and focus actively on energy to create things
catering ideal group of customers.

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Table of Contents
2. The process of new venture formation:.............................................................................................4
3. Background & branch:.......................................................................................................................7
3.1. Understanding industry structure:...............................................................................................7
3.2. Value proposition:......................................................................................................................8
3.3. Competency matrix:....................................................................................................................9
4. Resources:........................................................................................................................................10
4.1. Goals and methods of achievement for Decision Lens:...........................................................10
4.2. Argumentation for resources and business system/model:.......................................................12
5. Market research: overall perspectives:............................................................................................13
6. Believable marketing:......................................................................................................................20
7. Planning and Costing:......................................................................................................................22
8. Budget and sales forecast:...............................................................................................................23
8.1. Budget forecast:........................................................................................................................23
8.2. Sales per quarter:......................................................................................................................24
9. References:......................................................................................................................................27

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Digital business is a development of new industry designed blurring physical and digital
world. It has promised to usher an unprecedented convergence of things, business and people
disrupting current business models1.
A digital edge has been existing where physical resources and digital information has been
combing new ways for creating revenue and value. Enterprises asking digital side have been
transforming business models, customer experiences and converting processes2.
The following report discusses processes of new venture formation and argumentation for
Decision Lens’s business model or systems and resources at U.K. It has also included believable
marketing, budget and sales forecast, market research and planning and costing.
1 Sia, S.K., Soh, C. and Weill, P., 2016. How DBS Bank Pursued a Digital Business Strategy. MIS Quarterly
Executive, 15(2).
2 Matt, C., Hess, T. and Benlian, A., 2015. Digital transformation strategies. Business & Information Systems
Engineering, 57(5), pp.339-343.

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Figure 1: “The key elements of business plan”
(Source: Overdiek 2018, p.23)
2. The process of new venture formation:
The proposed business plan is a digital store. Thus, it is required to provide a quick history of
the products as well as explain the primary market as well as the solution of the organization. It is
necessary for the business owner and management of the organization to show the market
opportunity to the investors3. As the present digital store is dealing with rememorizing the old trends
3 Fleisch, E., Weinberger, M. and Wortmann, F., 2015. Business models and the internet of things. In Interoperability
and Open-Source Solutions for the Internet of Things (pp. 6-10). Springer, Cham.

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and stylized product, the proposed business can bring enormous business opportunities to the
market. Identifying the following areas can be explained as followed.
Market and industry consist of identifying market size, segmentation of the market,
development of market prospects, focusing on new trends as well as technologies and barriers to
entry. Demonstration of complete comprehension of the challenges from the outside competitors in
large as well as small is essential for the management to attract investors in large scale4. It consists of
an explanation of the products of competitors, distribution channels, partnerships as well as pricing.
Development of the factors can bring competitive benefits as well as positioning need to be analyzed
well in the organization.
Customers, as well as end users, are essential for any organization. Hence, the proposed
business plan needs to outline for the target customers for products or services. Sales, as well as
marketing strategies, are required to manage in the organization. Sales and marketing strategy will
get the particular product into the hands of the customer. It provides a revenue model as well as
explains the sales cycle and procedure. Products and services emphasize the specific products or
services that include photos or screenshots. Detailing the product is scalable as well as planning to
launch the whether it is already done. Providing outline research and development steps to develop
and enhance offering. The competitive advantages of online shopping and supporting 24*7 hours in
365 days are required to highlight to the investors. On the other hand, it is necessary to emphasize on
the digital a store can bring investors in a large number. Financials need including the fundamental
assumptions as well as providing the scenarios are required to show to the investors.
4 Chaffey, D., 2015. Digital business and E-commerce management. Pearson Education Limited.

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Sourcing of funding as well as using the proceeds explain investment by principals, prior
equity investments, cash operations of the business need to be planned efficiently along with total
funds are required to design by the management of the organization5. Utilization of proceeds can be
helpful to use the process of funding. The instances may consist of sales as well as marketing,
research as well as development, recruitment of costs and salaries of new employees. The
equipment, expenses of capital, legal and accounting are the total amount of targeting to raise
outside financing. Based on the proper timelines for achieving the milestones and detailing the
actions of the team emphasize on the development of the value of the organization. The effects need
consisting the key hires, new financing, milestones of sales, launching of new products as well as
strategic partnerships.
Also, the organization needs to finalize an initial investment in the business. It is important to
control to relinquish to the investors. However, planning of short and long-term profit is significant
for the proposed business plane. The investors expect a return on their money. Thus, rough planning
regarding the way of gaining profit is required by the business organization for showing the
investors. Along with these, projected profits of the proposed business over the time would be
helpful for the organization6. However, ensuring that the business will not fail in upcoming days may
bring some investors for the organization. It is also important for the company to set up plan and
include procedures that can be able to mitigate the risks and challenges faced by the company.
5 Horlach, B., Drews, P. and Schirmer, I., 2016. Bimodal IT: Business-IT alignment in the age of digital
transformation. Multikonferenz Wirtschaftsinformatik (MKWI), pp.1417-1428.
6 Darics, E. ed., 2015. Digital business discourse. Springer.

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3. Background & branch:
3.1. Understanding industry structure:
Decision Lens is a leading SaaS organization situated at U.K. It has been transforming
enterprise supply chains. With the help of advanced flexible and analytics, custom visualizations, a
small business in the UK quickly witness effects and trade-offs of choices made between various
investment options. Here Decision Lens helps in improving quality and speed of prioritization and
optimization maximizing ROI of their portfolio7.
Industrial leaders of Decision Lens have been digitizing essential functions under their
internal processes of vertical operations and horizontal partners across the value chain. Additionally,
they have been developing product portfolios with introducing innovative data-based services and
digital functionalities. A survey is done to employees of Decision Lens. They are expected to raise
their entire digitalization level dramatically.
These developments fundamentally change individual companies and transforming market
dynamics around a complete industrial range. It has been crucial for countries around the world. The
annual digital revenue has been seen to be increasing on about 29% on an average.
Cost reductions for Decision Lens are seen to be of 3.6% on an average per year. Digital
technologies have been enabling shorter operational lead times, maximum quality of products and
higher asset usage. For generating those extra revenues, businesses have introduced latest industrial
products with digital features and augmenting their current portfolio 8. Digital services by data
analytics and complete digital solutions have served as a customer ecosystem. This has been driving
7 Fitzgerald, M., Kruschwitz, N., Bonnet, D. and Welch, M., 2014. Embracing digital technology: A new strategic
imperative. MIT sloan management review, 55(2), p.1.