Digital Business Transformation and Innovation Strategies

This assignment requires students to analyze the differences between traditional and digital businesses, exploring how digital technologies have transformed business operations, innovation strategies, and customer relationships. Students will examine various research articles and case studies to identify key factors driving digital transformation, including technology adoption, workforce skills, creative ideas, and customer experience. The assignment aims to help students understand the importance of digital transformation in achieving long-term sustainable growth and operational efficiency.

Digital business

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
1.) Brief description of business, modes of operation and market segment. .............................4
Brief description of The Walt Disney Company.............................................................................4
2.) Detailed explanation on the key factors which have been responsible for the growth of
digital business of Walt Disney...................................................................................................7
3.) Assessment of how these external forces influence operations of business..........................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Digital business helps in finding new ways to collaborate, connect and conduct business
operations by building effective connection between people and effectively manage the business
operations. Digital business implements new and improved technology which helps in effective
communication and experienced services which leads to sustainable growth and success.
This study will highlight, key understanding of digital business and also highlight key
difference between digital business and traditional business models. This report will also
highlight factors which affect the business growth and also consider key essentials for
sustainable digital business models. This report will also include, how external forces impact
business operations and leads to unsustainable growth and success.
The Walt Disney Company is an American diversified multinational entertainment and
mass media company headquartered in Burbank, California, United States. It was originally
founded on 16th October, 1923 by Disney brothers i.e., Walt Disney and Roy O. Disney. The
Walt Disney Company is known for film studio division, Walt Disney Studios which mainly
includes Walt Disney Pictures, Disneynature, Walt Disney Animation Studios, Pixar, Marvel
Studios, Blue Sky Studios, 20th Century Fox. The other main division are Disney Parks, Disney
Media Networks, cable television, publishing, amusement parks, broadcasting, films, music,
radio, video games, web portals, merchandising and theatre division. The main mission of Walt
Disney Company is to inspire and entertain people across the globe by implementing innovative
and creative technologies that makes Walt Disney world's most premier entertainment company.
Digital business has profoundly changed the way of doing business. Implementation of
new and innovative technology helps in achieving sustainable growth and success of business in
efficient manner. Digital business leads organization to digital transformation, holistic
optimization of business, disruption, integration, convergence and humanization for greater
operational efficiency, performance and productivity around the world. Digital business helps in
creating more valuer to the business which leads to long term sustainable growth of business.
Digital business helps in providing right information to the right people and the right time
through efficient channels of communication (Digital business: transformation, disruption,
optimization, integration and humanization, 2016).

Emergence of new technology and software like cloud computing, mobile, big data,
internet, automation, artificial intelligence helps in improved digital business and helps in
achieving customer value which leads to higher competitive advantage. Digital business helps in
optimizing all business function in an integrated manner with employees, customers, mangers for
more profitable business activities. Digital business helps in transforming business by delivering
core value to customers which increase customer experience and satisfaction.
Digital business helps in creation of new business practices by adapting to improved
technology like social media platforms, online marketing and services, virtual reality, artificial
intelligence, cloud computing which helps in sustainable growth of business. Traditional
business is a plan where products and services are provided to customers from a local store
through face to face interaction. Digital business models helps in effective business practice
which leads to higher operational efficiency with lower overhead cost as compared to traditional
business practice. Digital business can be done from anywhere and anytime by catering large
number of customer from across the globe, whereas, traditional business models aims at face to
face interaction with people where customer will have to present themselves at store physically
(Consider the differences between traditional and digital businesses, 2019).
Key factors which transformed digital business in recent times which helps in the
transformation of business includes innovative and improved technology, environmental factors,
consumer behaviour and market demand. Digital business aim at putting customer value at first
and aims at providing speedy and effective service and experience to its clients which leads to
higher operational efficiency and productivity.
MAIN BODY
1.) Brief description of business, modes of operation and market segment.
Brief description of The Walt Disney Company
The Walt Disney Company is a diversified entertainment company with operations in
four varied business divisions such as media network, amusement parks, entertainment studios
and consumer products and international media. Amusement parks aim at giving experienced
services and products to the customers by bringing Disney's stories, characters through theme
parks, resorts, cruise, vacation experience, apparel, books and video games. Studio entertainment
provides quality movies, live stage plays and music to customers throughout the work effectively

and efficiently. Direct to consumer and international segment of Walt Disney Company aims at
providing various services through aligned technology. It also provides content sales and
advertisement sales to the people across the globe by delivering customized service and
experience to customers all across the globe.
Modes of operation of The Walt Disney Company
The Walt Disney Company is an American multinational company which has operation
all across the globe. Walt Disney Company is a multinational mass media company and
entertainment company. They mainly operate in television network, studio entertainment,
amusement parks, media networks, radio, web portals, publishing, film, music, video games
broadcasting, radio, direct to consumer and international (Matt, Hess and Benlian, 2015). The
media network segment aims at broadcasting television productions. Walt Disney Company has
developed a new theme park and resorts with major attractions and experience. The studio
entertainment division of Walt Disney Company focus on producing animated motion films,
musical recordings, live action pictures and stage plays. Walt Disney has also developed games
for mobile and published various other books and magazines. The other segment of Walt Disney
Company comprises of media network known as ESPN and provide programming services.
Walt Disney Company also consist of Hollywood themed studios for entertainment purpose and
recreational activities. They also own Disney Junior cable network where they target kids of age
group between 2 to 7 where animated and live action is featured to entertain kids(Reis and et.al.,
2018).
Disney digital network helps bring fresh and original content directly to the customers all
across the globe. They remain connected with customers through various social media platforms
like Facebook, Instagram, Twitter, YouTube by building strong digital network. They use
content media marketing and advertisement to communicate with customers effectively on a real
time basis. Disney digital network results in ever evolving method to digital media and content
creation. This helps in increased distribution of information using digital platforms and also leads
to higher customer base and development of audience to increase long term sustainable growth
and success of the company (Kane and et.al., 2015).
Disney digital network aims at improvising robust social media platforms, automation,
cloud computing, bid data and artificial intelligence for higher operational efficiency, experience
and performance of business and leads to excellent customer satisfaction and experience. Walt

Disney Company aims at providing unique and personalized services to customers by building
lifetime value and excitement. Walt Disney amusement parks aim at implementing improved
and innovative technology by contentiously changing cordoning to the need, trends and
preference of consumers. Their main aim is to target new market with the aim of higher market
share and customer base.
Market segment of Walt Disney Company
The Walt Disney Company is a global entertainment company which provides fun and
entertainment services to the customers by carrying the core values of the family effectively and
efficiently. Walt Disney Company main strategy is to build and design consumer segment
characters like Mickey Mouse, Snow white and aim at targeting kid for higher customer
segmented experience. Walt Disney Company uses demographic, geographic and psycho-
graphic segmentation to identify the target markets which helps in higher operational efficiency
and sustainable growth and development (Segmenting & Targeting Markets, 2011). Geographic
segmentation consists of region or market of a country. It also includes market density, size that
are used to locate Disney's amusement parks which mainly comprises of Disneyland and Disney
world. These amusement parks are strategically in Europe, Japan, India and United States which
are one of the most visited places in the world for vacation. This helps Walt Disney Company in
strategic growth and development by attracting large number of customers from all across the
globe. Demographic segmentation mainly refers to as age, income, ethnic background, gender
which helps company in determining where to position their chain stores which attracts larger
customer base and increases long term sustainability of business. Walt Disney Company also
focus on psycho-graphic segmentation which mainly focus on the personality, belief, motive and
lifestyle of individuals which helps in determining the interest of customers.
Disney aim at delivering value products and services to its target customers. The Walt
Disney Company mainly targets children and their family members. They use multi segment
targeting strategy two serve varied target segments to attract large customer base from across the
globe. Walt Disney Company intrigues people of all age groups which mainly comprises of
kids, teen, adults or parents. Disney attract kids by providing them with animated movies, toys
through its segment called “ Playhouse Disney”. Disney also aim to launch a website by
developing games and learning quiz for children between the age group of 2-6 years (Giroux and
Pollock, 2018). For much older kids or teens, Disney mainly focus on radio, Disney channels

and live action films to keep them entertained. Disney has built theme based amusement parks
for family for more experienced services and refreshing experience(Pagani and Pardo, 2017).
2.) Detailed explanation on the key factors which have been responsible for the growth of digital
business of Walt Disney.
Digitalization is increasing at a faster pace and Walt Disney Company aim is to adapt to
change according to the needs, trend and preference of customers from all across the globe. The
Walt Disney Company use advanced technology like cloud computing, bid data, artificial
intelligence, automation and various other social media platforms like Facebook, Instagram,
YouTube and Twitter to cater large number of customers from worldwide for long term
sustainable growth and success of the Walt Disney Company. Adaption of new and innovative
technology like content writing, e-commerce, internet advertising, digital marketing, search
engine optimization helps in increased operational efficiency, performance and productivity.
Walt Disney Company created ESPN channel which leads to broadcasting favourite sport games
to its customers through effective media and television networks.
Key factors which are majorly responsible for the growth of digital business of Walt
Disney is that they are adaptable to change continuously by keeping in mind the need and trend
of its customers for refreshing and exciting experience. Walt Disney Company aim at using
innovative technology which ads more value to the development and growth of the company.
Implementation of modern technology like big data, cloud computing, content writing, social
media platforms helps in effectively flourishing the market by attracting large number of
customers from all around the globe (Key factors transforming business – the digital way, 2018).
Walt Disney Company helps in creating innovative amusement parks with improved
technology which will attract large number of visitors from across the globe which will lead to
longer sustainability growth with improved experience. They also gain high revenues from
resorts and increased viewership for ESPN streaming services leads Walt Disney Company
towards growth (Gershon, 2016). Effective improved services helps in creating new market
segments and enhanced customer services. Improved digital business helps Walt Disney
Company in enhanced operational efficiency and productivity by offering new products with
increased speedy delivery which helps Disney in maintaining competitive advantage. Adaption
of improved technology leads to lower cost and increased operational efficiency which leads to
responsible growth in the digital business of Walt Disney. Digitalization impose long term

sustainability growth on the operations of business with higher operational efficiency and
productivity. Increase market demand of customers led to improved themed based amusement
parks, entertainment studio, apparels helps in increased sustainable growth of Walt Disney
Company.
3.) Assessment of how these external forces influence operations of business.
Walt Disney Company get influenced by various external factors such as political, social,
legal, environmental, technological and economical which affects the long term operations of
business. This macro- environmental forces impact competitive advantage of Walt Disney and
reduces the overall profitability of the business (Batchelder, 2016).
 Political factors: There are various rules and policies implemented by the government of
various countries in which Walt Disney Company operates. The major opportunity to
Walt Disney is that it has strong intellectual property protection and stable political
condition in the markets in which it operates. Shifting in free trade policies impose a
major threat on business and affect its operational efficiency and sustainable growth.
 Economic factors: Change in exchange rate, inflation rate, interest rate, gross domestic
product, income, economic condition largely influence the operational efficiency of Walt
Disney Company. Per capita income largely affect the operations of Walt Disney. As
people with higher income level will get attracted towards entertainment and amusement
industry. Country with strong GDP plays a main factor in contributing to the sustainable
growth and success of Walt Disney. Increased level of disposable income and strong
economic development is a major opportunity to the Walt Disney Company(Whitley,
2016).
 Social factors: Walt Disney Company face a major ethical and social pressure which
affect the operational efficiency of business. Improved innovative technology. Walt
Disney operates in different parts of world which leads to increased cultural diversity.
This varied cultural diversity impose major threat to the business which leads to lower
operational efficiency. Increased consumers behaviour towards movies, video games,
amusement parks and television programs which is a major opportunity to the Walt
Disney and helps in sustainable growth and development of business.
 Technological factors: Technology is changing at a faster pace and are becoming
obsolete very frequently. Technology influence Walt Disney Company and they aim at

adapt to change by using augmented reality, cloud commuting, social media networks,
automation and artificial intelligence to provide excellent experience to its customers by
providing innovative and improved products and services. This helps Walt Disney in
maintaining its completive advantage with the firms like Universal Studio, Time Warner,
Viacom, Sony and Comcast. Innovative technology and improved services helps in long
term sustainable growth and success of Walt Disney (Piccinini, Gregory and Kolbe,
2015).
CONCLUSION
From the above study it has been summarized that, digital business helps in more creative
and innovative technology by using social media platforms, cloud computing, big data for
effective operational efficiency and long term sustainable growth and development of business.
Digitalization adds value to the business by providing unique and personalized products and
services to the customers by adapting to change frequently. It also includes that, digital business
helps in improved interaction with customers all across the globe, whereas, traditional business
aim at face to face interaction and focus on physical presence.
It also states that, Walt Disney company mainly target on kids, teens and family by
building attractive amusement parks and position themselves where they cam attract large
customer base. This report also highlights key macro environmental factors like political, social,
technological and economic factors which influence the operation efficiency of Walt Disney
Company.
Implementation of improved and innovative technology helps in increased operational
efficiency and productivity which leads to long term sustainable growth and business. Skilled
information technology workforce helps in profitable and sustainable digital business. Creative
and innovative ideas helps in attracting larger customer base and efficient experience this helps
in long term operational efficiency of digital business.

REFERENCES
Books and journals
Batchelder, D., 2016. Facsimile score for a Disney animated film. Notes. 73(1). pp.157-162.
Gershon, R.A., 2016. Digital media and innovation: Management and design strategies in
communication. Sage Publications.
Giroux, H.A. and Pollock, G., 2018. Is Disney good for your kids? How corporate media shape
youth identity in the Digital Age. In Kinderculture (pp. 73-92). Routledge.
Kane, G.C. and et.al., 2015. Is your business ready for a digital future? MIT Sloan management
review. 56(4). p.37.
Kane, G.C. and et.al., 2015. Strategy, not technology, drives digital transformation. MIT Sloan
Management Review and Deloitte University Press. 14. pp.1-25.
Matt, C., Hess, T. and Benlian, A., 2015. Digital transformation strategies. Business &
Information Systems Engineering. 57(5). pp.339-343.
Pagani, M. and Pardo, C., 2017. The impact of digital technology on relationships in a business
network. Industrial Marketing Management. 67. pp.185-192.
Piccinini, E., Gregory, R.W. and Kolbe, L.M., 2015. Changes in the producer-consumer
relationship-towards digital transformation. Changes. 3(4). pp.1634-1648.
Reis, J. and et.al., 2018, March. Digital transformation: A literature review and guidelines for
future research. In World Conference on Information Systems and Technologies (pp. 411-
421). Springer, Cham.
Whitley, D., 2016. The idea of nature in Disney animation: From Snow White to WALL-E.
Routledge.
Online
Consider the differences between traditional and digital businesses. 2019. [ONLINE]. Available
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Digital business: transformation, disruption, optimization, integration and humanization. 2016.
[ONLINE]. Available through:<https://www.i-scoop.eu/digital-business/>
Key factors transforming business – the digital way. 2018. [ONLINE]. Available
trough:<https://yourstory.com/2018/08/factors-driving-business-digital-transformation>
Segmenting & Targeting Markets. 2011. [ONLINE]. Available
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