The Impact of Digital Business on Corporate Financial Performance

This report explores the impact of digital business on corporate financial performance, with a focus on the finance industry in the UK. It discusses the importance and development of the topic, the technology used (hybrid cloud servers and cybersecurity), and its effectiveness as a business tool. The report also covers theories, models, and concepts of digital technology and its impact on the finance industry.

Digital Business &
New Technologies
(The impact of digital business on the
corporate financial performance)

Table of Contents
Introduction......................................................................................................................................1
Part 1................................................................................................................................................1
Why is this topic important....................................................................................................1
How has topic developed........................................................................................................1
A detailed description of the technology used in this topic and what it is used for...............2
What technological platforms and software are used in the topic..........................................2
What type of business and organisation uses the technology.................................................2
How is it used as business tool and is this effective...............................................................3
Part 2................................................................................................................................................3
Theories, models and concepts of digital technology............................................................3
Impact of digital technology on an industry...........................................................................4
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

Introduction
The topic chosen for the current report is based on the “The impact of digital business on
the corporate financial performance”. Financial industry in UK is chosen to undertake the current
report for better analysis of the digital business and its financial performance while adopting the
emerging technologies within an organization. Technology used is the Hybrid cloud servers and
cybersecurity in the digital financial businesses. The following discussion is based on the
importance and development of topic chosen along with the technological platforms used in the
financial business as an effective tool. Moreover, theories and its impact of finance industry is
also discussed.
Part 1
Why is this topic important
The impact of digital business on the corporate financial performance is important
because digital business uses several emerging technologies which directly affects the profits of
the organization. The reason being is that technologies such as hybrid cloud servers and cyber
security are taking the finance industry up to the next level of its operations and strong security
of its financial information in a more potential manner. That is why this topic is deemed to be of
importance. There is a positive impact of digitalization of business on the financial performances
of the firm because it provides accuracy and improved productivity or strategic decision making
process which ultimately benefits the industry in the generations of their sales, revenues and
profits (Ukko, Nasiri, Saunila and Rantala, 2019).
How has topic developed
This topic is developed due to several reasons. Such as when the business were operating
in a traditional manner, they were facing the problem of accuracy and fast working of the
company and also the security of the data was the major concerns. Finance industry stores big
amount of data and personal records of various clients which incudes the private credentials of
the customers as well. Is this type of data is leaked the the company can suffer the great loses and
the bad reputation in the market place. Therefore, due to all such reasons, development of such
topic is emerged in order to take out the solutions of the problems faced by the finance industry.
Hybrid cloud servers and cybersecurity are the important technologies which must be used by the
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digital businesses in finance industry in order to improve the financial performance of the
business (Park and Mithas, 2020).
A detailed description of the technology used in this topic and what it is used for
Hybrid cloud servers and cybersecurity technology is used in the topic and they have
various uses within the businesses. Hybrid cloud servers can be defined as the environment
which is designed in order to store the data and also to perform calculations while providing the
technical services to the clients. It basically contains the public form of cloud and private form of
cloud as well and also the on premises infrastructure. They are enough capable of rendering the
real time data to institutions in an integrated and customised manner so that in depth analysis of
the information can be performed. Cybersecurity can be defined as the security which is made
against any cyber attack on data and helps in the information from breaching and losses
(Böttcher and Weking, 2020).
What technological platforms and software are used in the topic
There are several technological platforms in hybrid cloud servers which are used in the
digital businesses in order to improve the financial performance of the company. Infrastructure
as a service which provides cloud based services and paid services such as storage and
networking along with the visualization. Platform as a services provides the hardware and the
software tools to the business over the internet. Software as a services provides the software
through the third party over the internet. There are several technological platforms in cyber
which are used in the digital businesses in order to improve the financial performance of the
company. There are different five technological platforms used in the cybersecurity. Such as
critical infrastructure security, application security, network security, cloud security and internet
of things security (Keskin, Dincer and Dincer, 2020).
What type of business and organisation uses the technology
There are several types of businesses and organization who uses the technology of hybrid
cloud servers and cybersecurity. But the current report majorly focuses on the financial sector
and the digital businesses who have improved their financial performance while adopting such
technologies. Digital businesses has a wide reach to the customers which further helps in growth
and expansion of the business. This improves the operations of the business at low cost and time.
Such benefits ultimately leads to the enhanced financial performance of the business while
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adopting the digitalization within the firm. Other sectors which highly uses this technology are
the retail, construction, banking and many more (Hutahayan, 2020).
How is it used as business tool and is this effective
Hybrid cloud servers is used as a business tool which is proved to be effective in nature
for the financial sectors. This is because. It is the technology which helps the financial
institutions to introduce the short as well as the long term strategies in a flexible manner. It
further helps in keeping pace with the changing digital environment of the business in a scalable
manner. Cybersecurity is also used as a business toll which is proved to be effective in nature for
the financial sectors. Financial institution always work on the cybersecurity technology in order
to protect their private and important data from breaches and losses. It ensures strict security with
proper compliance and regulations within the business (Riera and Iijima, 2019).
Part 2
Theories, models and concepts of digital technology
Hybrid cloud servers are simply the creation of single information technology
environment which is further formulated from more than one environments which is connected
through local area networks and wide area networks along with the virtual private networks and
metropolitan network and many more networks as well. It has complex features such as it
includes minimum of one private cloud and minimum of one public cloud. It can be more than
two private clouds or public clouds. It basically provides three types of services such as
infrastructure as a services and platforms as a service along with the software as a service. These
are mainly hosted by the third parties providers which are made available to the users over the
internet. All these three types services facilitates with the flow of data of the user from the clients
who are at front end with the help of internet to the cloud servers providers systems. There are
basically two types of hybrid cloud architectures that are heterogeneous and homogeneous.
Enterprises selects according to their needs and requirements of the expected cost and
performance along with the ease of management. Heterogeneous hybrid cloud servers has the
environment which is build up with public and private technologies which are from different
vendors. Homogeneous hybrid cloud servers has the environment which is build up with public
and private technologies which are from the same vendors (Deng and Li, 2020).
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Cybersecurity has various strategies and practices which is provided to the organization
in order to safeguard their data and information from any breaches and losses. Employee
education is one of the practice. It is important for the organization to train and develop the
employees regarding usage of the technical resources in a protected manner. Password
management and multi factor authentication is an another practice. It is essential for the company
to keep the strong passwords and recheck process if device is logged in from other system.
Frequent backup is also one of the practice. It is necessary for the firm to take up the frequent
backup of data in order to have the safe recovery of the information. Using of anti virus software
is also an another practice. It is significant for the enterprise to install the safest software of
antivirus for secure and protection of the systems. Frequent updates of systems is one of the
practice. It is vital for the administration to update the technical devices on the frequent basis for
better security concerns. Firewall is an another practice. It is crucial for the organization to make
use of the firewall so that the network mediums can be protected such as Wi-Fi. Access control is
also one of the practice. It is imperative for the company to make the control of the access by the
people who are unauthorised and unauthenticated to the data. Encryption and decryption is also
an another practice. It is required for the firm to send and receive the private messages in an
encrypted and decrypted form for strict security of the information (Alkaraan, Albitar, Hussainey
and Venkatesh, 2022).
Impact of digital technology on an industry
There are both the positive and negative impact of hybrid cloud servers on finance
industry. Talking about positive impact, hybrid cloud servers are highly cost efficient which
provides the good scalable advantages to the company. It renders good security practices and
also provides the good speed and ease of working as well. Moreover, it helps in the equal and
unique balance of control and performance along with the scalability as per the needs and
requirements of the firm. It supports in business agility and effective speed of deployment. It is
also reliable and flexible in nature which aids in the efficiency of working within the company.
Talking about negative impact, hybrid cloud servers has the complicated nature in the initial use
and in its maintenance as well. Its implementation is an issue as it requires heavy technical
resources. Sometimes, firm faces the problem of bottleneck while transferring the data among
private and public networks. Moreover, it has complicated security and also having the visibility
issues as well. Company also faces the problem in compatibility and networking along with the
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control of system. All such issues can be tackled by simply encrypting the data and not
depending on the cloud vendors for security. It is important for the company to determine that
which data and workloads along with the applications are suitable for each of the type of cloud.
It is beneficial to use the container orchestration platform. It is a good practice to use automation
where possible and the company must also invest in the cloud visibility tool (Putri, Nurwiyanta,
Sungkono and Wahyuningsih, 2019).
There are both the positive and negative impact of cyber on finance industry. Talking
about positive impact, cybersecurity helps in the protection against the unwanted programs and
viruses along with the worms and spyware and many more cyber attacks. It also protects the
important and private data from any theft or breaches or losses in any condition. It also supports
the technical systems in getting the protection from being hacked in any cases. Moreover, it also
aids in minimising the freezing and crashes of the computer. Talking about negative impact,
cybersecurity has one of the major aspect that is the firewall which is difficult to configure in a
correct manner. This can result in blocking of the users from performing any activity over the
internet and this happens until the firewalls is configured correctly. It also leads to the slower
working of the systems (Cho, Chung and Young, 2019).
Conclusion
It is concluded that digital business is an important concept as it improves the financial
performance of the company. Hybrid cloud servers and cybersecurity are majorly in use by the
finance sectors in order to operate the digital business in a successful manner. Therefore, it is
crucial to assess the importance and the development of technology. It is vital evaluate the
technological platforms and its effectiveness as business tool. It is imperative to study the
theories and models along with the concepts of digital technology and its impact on industries.
Hence, the above discussion covers all such areas in order to better understand the conception of
digital business and financial performance.
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References
Books and Journals
Alkaraan, F., Albitar, K., Hussainey, K. and Venkatesh, V.G., 2022. Corporate transformation
toward Industry 4.0 and financial performance: The influence of environmental, social, and
governance (ESG). Technological Forecasting and Social Change, 175, p.121423.
Böttcher, T.P. and Weking, J., 2020. Identifying Antecedents and Outcomes of Digital Business
Model Innovation. In ECIS.
Cho, S.J., Chung, C.Y. and Young, J., 2019. Study on the Relationship between CSR and
Financial Performance. Sustainability, 11(2), p.343.
Deng, X. and Li, L., 2020. Promoting or Inhibiting? The Impact of Environmental Regulation on
Corporate Financial Performance—An Empirical Analysis Based on China. International
Journal of Environmental Research and Public Health, 17(11), p.3828.
Hutahayan, B., 2020. The mediating role of human capital and management accounting
information system in the relationship between innovation strategy and internal process
performance and the impact on corporate financial performance. Benchmarking: An
International Journal.
Keskin, A.İ., Dincer, B. and Dincer, C., 2020. Exploring the impact of sustainability on corporate
financial performance using discriminant analysis. Sustainability, 12(6), p.2346.
Park, Y. and Mithas, S., 2020. Organized Complexity of Digital Business Strategy: A
Configurational Perspective. Mis Quarterly, 44(1).
Putri, W.H., Nurwiyanta, N., Sungkono, S. and Wahyuningsih, T., 2019. The emerging fintech
and financial slack on corporate financial performance. Investment Management &
Financial Innovations, 16(2), p.348.
Riera, C. and Iijima, J., 2019. The role of IT and organizational capabilities on digital business
value. Pacific asia journal of the association for information systems, 11(2), p.4.
Ukko, J., Nasiri, M., Saunila, M. and Rantala, T., 2019. Sustainability strategy as a moderator in
the relationship between digital business strategy and financial performance. Journal of
Cleaner Production, 236, p.117626.
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