Digital Business- Individual Report

This report discusses the advantages and key trends of digital business, new and emerging digital business models, evaluating the impact of new collaborative relationships and strategic alliances through digital technology for the company, and the impact of crypto currency on business.

Digital Business

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
Overview of advantages and key trends ................................................................................1
New and Emerging Digital Business Models.........................................................................4
Evaluating the impact of new collaborative relationships and strategic alliances through
digital technology for the company........................................................................................5
Description of the crypto currency with the help of examples...............................................7
Critically comment on the Bit coin adaptation by EL Salvador.............................................8
CONCLUSION................................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
Digital Business plays a very crucial role in today's time. In context to organization, there
are various constant updates in the field of technology that helps the company to basically
survive in the market. The organization chosen for this report is Amazon. It is a US based
organization which is operating worldwide. In reference to digital business, they are very
important in today's time and these constant updates helps the company to survive. Also there is
a discussion in relation to the different trends. The company was founded in the year 1994 and is
considered to be one of the most popular organization in the e-commerce sector and offers a
wide range of services and goods through offering deliveries through application and websites.
The present report basically comprises of the various key trends and advantages, various
emerging digital models, collaborative relationships through digital technology and lastly the
influence of the crypto currency on the organization.
MAIN BODY
TASK 1
Overview of advantages and key trends
In reference to digital business, it is all about the use of different internet, tools and
software for the purpose to provide services and products. The main objective of doing digital
business is to basically apply the digital technology with the aim to carry different operations and
offering better experience to the consumers. Such type of business, generally takes place through
application, social media and websites. In reference to traditional method, the customer need to
visit a physical store in order to shop the goods and but with the help of digital technology, it has
become so easy for the customers. In case of Amazon, the organization is working while being
dependent on the digital technology and also the organization focuses on the various trends in
order to offer better customer service (Luz Martín‐Peña, Díaz‐Garrido and Sánchez‐López,
2018).
Key trends of digital technology
In case of digital technology, it comprises of different changes and innovations as per the
modern era which helps in offering innovative experience, connection with the consumers and
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effective workplace. Therefore, it is very important to understand the current trends which are
important for the purpose to drive new changes into the market and also taking effective growth.
Below are few of the current trends:
Artificial Intelligence: This is one of the most important trend when it comes to digital
technologies. In context to artificial intelligence, it plays a very important role in generating
online content and also contributes in analysing the needs and wants of the customers for the
purpose to enable the services or the products as per the requirements of the customer. In case of
Amazon, this trend is basically used and helps in providing products opinion as per the search
which makes the experience of the customer quick and easy (Wentrup, Nakamura and Ström,
2018).
Robotic process automation: This trend and tool basically enables features of the machine
learning. With the support of these trends, it helps in enabling automation operations such as
accepting payments, sending mails and data analysis. Also it comprises of acknowledging the
repeated actions and records for future use. It is basically less time and effective time taking
software which basically enable less time for the users while they are basically paying or
shopping.
Personalisation and Chatbots: In reference to this trend, it has become of the key trend in the
digital technology (Sousa and Rocha, 2019). Various organizations provide services which are
highly personalized in nature and are in demand as the individuals wants their products as per
their tastes and preferences. With the help of digital technology, it enables services which
supports the organization in order to grow into the market. In reference to Amazon, the company
is providing personalization and chatbots services through offering variety of products and
fulfilling the demand of the customers.
Digital Technology's Advantages
In reference to the digital technology, it basically comprises of the all the benefits and
advantages in order to earn and grow in the competitive environment. In context to organization,
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the company is working globally and is widely using trends, tools and software. Below are few
of the advantages mentioned below:
Learning Opportunities: In reference to digital technology, it is considered to be one of the
wider platform for both the customers and business (Schallmo and Williams, 2018). Through
using different internet services, the organization could also learn new elements, approaches and
trends. It is basically a pool of data and information which supports the company in adopting
various changes and how to implement them in the company. The managers and employees
could learn from the digital courses in relation to the competition and practices of market for the
purpose to carry out better decisions for the company.
Social Connections: In reference to digital technology, another advantage is social connections.
The organizations always look forward for the purpose to build connection with the consumers
and making them well aware about the practices involved in business. The internet and social
media helps the company in seeking growth at different locations. In reference to Amazon, the
company focuses on establishing connection with the potential consumers through notifying
about various offers and deals through emails, text and also using different social media
platforms (Sabri, 2019).
Communication: It is considered to be one of the great advantage of using different technology.
Moreover it makes the process of communication effective and easy with large number of
individuals. In context to Amazon, the company makes sure that they provide best customer
services through actively communicating with the global customers.
Implications for managing the virtual business
Managing virtual business has become one of the quick and easy with the support of
digital technology. In reference to individuals, they are giving much more importance to the
virtual platforms through earning and growing from the companies. With the help of being
virtual, it provides greater assistance with no delay in operations.
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Seek Feedback: In reference to feedback, it plays a very important role in managing the
operations of the company virtually. In context to individuals, they need to get their issues and
queries solved as quick as possible. In case of Amazon, the company makes sure that they enable
frequent feedbacks from the customers every time they make any purchases. Furthermore, it will
help in taking decisions for the future operations (Kane, 2019).
Regular Meetups: It is very important when it comes to managing the virtual business and the
with the support of regular meetings, it can help in solving business issues and customer queries
through involving face to face meetings. The organization need to involve in meetings for the
purpose to provide assistance and prepare strategies.
New and Emerging Digital Business Models
In reference to business environment, there are various changes which leads to
innovation. For business organizations, there is a need of changing the way the companies
basically work for the purpose to compete globally. The use of emerging models and new models
supports the company to gain competitive advantage. In case of business organizations, it is very
important to use the models which will support the company in carrying out different operations
in this competitive world. Below are few of the digital models used:
Freemium Model: In reference to this model, the customer enjoy free services and products.
The consumer need not to pay any charge for the services availed by them. Through this, it will
support the company to improve their customer base and reaching out potential customers in a
effective manner. Such model is generally used by the organizations in order to reach the
customers effectively (Gobble, 2018).
Pyramid Model: Such type of model is basically used for the purpose to enhance the sales of the
organization. For the purpose to manage the flow of money, this model is considered to be one of
the widely used models. In case of enterprises, each one of them wants to improve their sales
with the help of using a pyramid model. The use of technical aids will support the company in
helping the organization to avoid the chances of any kind of malpractice or fraud. Such type of
model helps the company to get secured against any online crime.
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Ecosystem Model: It is considered to be one of the most effective and important model which
helps the organization to sell variety of products. In case of Amazon, the organization provides
platform for the purpose to sell different products on the same platform. Such type of model
helps the company to save themselves against cyber security. This is basically used for the
objective to facilitate the online payment gateway of the organization. The use of ecosystem
helps in providing vendor lock system in the website which helps in tracking the company's
performance (Wade and Shan, 2020).
On-demand model: Such type of model is totally based on the theme of time. The major role is
to manage the work in accordance with the time for the purpose to satisfy the customers. Such
type of model basically provide instant services to the customers. This model is basically used by
the organization for the purpose to provide extra services to the prime members. With the
support of technological updates, the company is also updating different models and which is
contributing to operate in a smoothly manner. In online business, there are high chances of issues
such as unethical behaviour and cyber security and therefore, it is very important to adopt
principles and models which helps them in working in a effective manner.
Evaluating the impact of new collaborative relationships and strategic alliances through digital
technology for the company
In case of Collaborative relationship, it basically takes place when two or more
individuals work together for the purpose to achieve company's objectives. In addition to that, it
helps in providing various solutions to the individuals who have different point of view and
allows individuals to work together(Osmundsen, Iden and Bygstad, 2018).
Advantages
 In online collaboration, it helps in providing team to carry out the work with the
professionals at any location. With the support of remote working, it helps the
company to work on flexible hours and to keep them highly motivated and
working in a effective manner.
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 There is no need of infrastructure for the organization and also helps in
minimizing the cost of operations. Through working online, it reduces the
overhead costs and also helps in saving money (Reck and Fliaster, 2019).
 In addition to that, it allows the organization to reach more customers and also
getting a competitive advantage of having two minds and getting advantage of
targeting the right customers.
Disadvantages
 In reference to online collaboration, the major threat is basically related to security.
Through sharing data and information on various platforms, it could result in misuse of
information.
 It involves high chances of conflicts and leads to ineffective communication.
 There is lack of coordination in case of collaborating online and individuals are unable to
cooperate with each other due to online mode of working (Viriyasitavat and et.al, 2019).
Strategic alliance can be basically described as the arrangement of two companies. The
concept is less complex and binding as compared to the joint venture. It is basically done by the
organization for the purpose to enter the new market and expand its business operations. Both the
organizations sets the objectives for the purpose to achieve benefits mutually.
Advantages
 It basically allows the company to attain objectives and goals in a effective manner.
Moreover, the organization is able to expand their business operations in order to target
the customers in a effective manner and enhancing the reach of the brand.
 The business company is able to attain great level of motivation. It can adopt innovation
and satisfy the wants and needs of the customers in a effective way. Also, it assist in
better utilisation of resources for the benefit of the enterprise (Noorit, Thapayom and
Pornpundejwittaya, 2020).
 The alliance of two organizations could help the company on the work with the use of
effective ideas and in a effective manner.
Disadvantages
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 There are high chances of conflict which could be faced by the company which could
lead to delay in different actions.
 For starting any business, it requires huge cost and it is very important to maintain
confidentiality.
 The problem of intercultural issue could be seen in operations.
In context to Amazon, the organization is working in a effective manner for the purpose
to sell their business. The company is able to take advantage and benefits of selling their
products online. It is basically a platform that provides opportunities in reaching out more
customers and enhances the reach of the company to improve the productivity.
Description of the crypto currency with the help of examples
In reference to crypto currency, it is basically a type of currency that unites the generate
data. It also helps in offering all the features of transferring, buying and selling the currency in
terms of trade. It is basically a self generated process of mining which is created through
Cryptographic algorithms. It is a decentralise system for the purpose to record the transactions.
The concept of crypto currency is generally developed through engaging the hardware and
computer systems and it is basically a kind of digital token which is kept secured. Also it runs as
in the public ledger which is known as the block chain. There are various types of crypto formed
till the date(Vardarlier and Zafer, 2020). The first ever currency introduced in the market is
Bitcoin which was founded in the year 2009 and is highly popular. Other examples basically
comprises of Ripple, Etherum and Litercoin. After the Bitcoin, the ETH is considered to be the
most traded and famous currency. Examples such as Litecoin and Ripple are highly useful in
order to track the various transactions in order to allow more transactions, making fast payments
and crypto transactions.
Impact of Crypto on business
In reference to businesses, there are various organizations who uses crypto currency for
different purposes. With the help of modern transactions, it really helps in providing benefits to
the company and also to individuals. With the use of crypto currency, it helps in creating a
negative and positive influence on the business in reference to security and safety reasons. In
context to Crypto, the company helps in providing access to the new locations for the company
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such as Amazon to make transactions in a easy manner. It is therefore important for the company
to include in the marketing concept of crypto currency. In addition to that, it will influence on the
company if traded in a fair manner. The company will achieve more success in the market.
Critically comment on the Bit coin adaptation by EL Salvador
In addition to that, it is very important to adopt EI Salvador of Bitcoin as a wake up call
for many other countries. It is considered to be one of the first country which has the tender of
Bitcoin. The influence of this bitcoin involves payment modes for the purpose to purchase the
services and goods into the country. Therefore, it is important for the country to accept legal
recipient through trading Bitcoin. In addition to that, it can result in creating a influence on the
purchasing power of the economy which makes the individuals depended on the remittances
which is average of the gross domestic product. It is very important for the company to obliged
to perform effective working which will enable free trade of bitcoins but with exponential rise in
the economic currency (Le Dinh, Vu and Ayayi, 2018).
CONCLUSION
From the above report, it can be determined that there is a need of adopting various
digital technology for the purpose to carry out the operations of the business in a effective
manner. Also the trends in the digital technology are basically analysed. In reference to different
emerging models, it helps the company to avoid cyber crime and other ethical issues mentioned.
The pros and cons of collaborative relationships and strategic alliance is basically a part of the
report. In the end, the report basically helps in better understanding about the crypto currency. In
addition to that, it helps in better understanding about the different trends and emerging models.
Also it helps in better understanding about the benefits and problems related to strategic alliance
and collaborative relationships.
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REFERENCES
Books and Journals
Gobble, M.M., 2018. Digital strategy and digital transformation. Research-Technology
Management, 61(5), pp.66-71.
Kane, G., 2019. The technology fallacy: people are the real key to digital
transformation. Research-Technology Management, 62(6), pp.44-49.
Le Dinh, T., Vu, M.C. and Ayayi, A., 2018. Towards a living lab for promoting the digital
entrepreneurship process. International Journal of Entrepreneurship, 22(1), pp.1-17.
Luz Martín‐Peña, M., Díaz‐Garrido, E. and Sánchez‐López, J.M., 2018. The digitalization and
servitization of manufacturing: A review on digital business models. Strategic
Change, 27(2), pp.91-99.
Noorit, N., Thapayom, A. and Pornpundejwittaya, P., 2020. Guidelines for adaptation of the Thai
industrial business to support the digital economy. Academy of Strategic Management
Journal, 19(6), pp.1-15.
Osmundsen, K., Iden, J. and Bygstad, B., 2018, September. Digital Transformation: Drivers,
Success Factors, and Implications. In MCIS (p. 37).
Reck, F. and Fliaster, A., 2019. Four profiles of successful digital executives. MIT Sloan
Management Review, 60(3), pp.1-7.
Sabri, E. ed., 2019. Technology optimization and change management for successful digital
supply chains. IGI Global.
Schallmo, D.R. and Williams, C.A., 2018. History of digital transformation. In Digital
Transformation Now! (pp. 3-8). Springer, Cham.
Sousa, M.J. and Rocha, Á., 2019. Strategic knowledge management in the digital age: JBR
special issue editorial. Journal of Business Research, 94, pp.223-226.
Vardarlier, P. and Zafer, C., 2020. Use of artificial intelligence as business strategy in
recruitment process and social perspective. In Digital Business Strategies in Blockchain
Ecosystems (pp. 355-373). Springer, Cham.
Viriyasitavat, W., Da Xu, L., Bi, Z. and Pungpapong, V., 2019. Blockchain and internet of things
for modern business process in digital economy—the state of the art. IEEE Transactions
on Computational Social Systems, 6(6), pp.1420-1432.
Wade, M. and Shan, J., 2020. Covid-19 Has Accelerated Digital Transformation, but May Have
Made it Harder Not Easier. MIS Quarterly Executive, 19(3).
Wentrup, R., Nakamura, H.R. and Ström, P., 2018. Uberization in Paris–the issue of trust
between a digital platform and digital workers. Critical perspectives on international
business.
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