Digital Businesses and New Technologies

This report explores the importance and development of digital businesses and new technologies. It discusses the significance of Moore's Law, the technology used, its effectiveness as a business tool, and its relationship with management theories. The report also highlights the types of businesses and organizations that use this technology.

Digital businesses and
New technologies

Contents
INTRODUCTION...........................................................................................................................1
Main body........................................................................................................................................1
A. why this topic is to be important.............................................................................................1
B. How this topic has developed.................................................................................................2
C. Description of technology used in topic and what it is used for.............................................2
D. What technological platform and software are used in topic..................................................2
E. Type of businesses and organisation uses the technology......................................................3
F. How it is used as business tool and its effectiveness...............................................................3
Nature of the relationship between digital technologies and both old and newly emerging
theories on business and management.........................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Digital businesses and new technologies are the essential term in today's business
environment because it helps in designing the business model and understanding the customer
experience very effectively and efficiently. Now-a-days every small to large organisation can
turn towards the use of new technology. This report is based on the Moore’s law that was
proposed by the Gorden morre and this report is talking about their importance and their
development. It also includes the description of using technology within the business
organisation and how it is effective in the organisation for gaining the profits and high market
share. At last it shows their relationship between digital technologies and both new and old way
theories on the management structure & practices and business ventures (Matt, Hess and
Benlian, 2015).
Main body
Moore's Law is proposed by the American engineer i.e. Gordon Moore since 1965 in
which they predict the major revolution in the digitalisation where they expect double the silicon
chip in every number of transistors every two year. Gordon set the path for Intel so that they
work faster, smarter and affordable. It can beneficially have impacted the economic, societal and
technological aspects. It is effective in the operating the business and gaining the profits
(Westerman and Bonnet, 2015).
A. why this topic is to be important
Morre law's is a digital term that includes varieties of importance in their concern. As it
includes the importance in various factors such as technological, societal and the economic
aspects which can be shown below.
 Technological aspects- According to this term the major importance of using this
Moore's law is that they fulfil the needs of people by developing the smarter computer in
an affordable cost. Where people are using advanced technology day by day as from
internet they now move toward the social media and innovation.
 Economic aspects- the major importance of Moore's law in economic term is that it
includes the basic two term i.e. power that means performance and cost. By following the
Moore's law in the digital development it will helps the user to use the gadgets effectively
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and comfortably with high energy and reasonable price. This helps the people to invest
more and businesses to earn more profits (Gordon, 2015).
 Societal aspects- By using this Law society people using smarter and affordable
technology that helps in comfortably spend their life by doing all their work through
electronic gadgets.
B. How this topic has developed
Moore's law is developed by Gordon Moore in 1965 in which he predicts that every two
years the silicon chip is doubled due to which use of transistors is smarter and affordable. But
when the engineer worked according to this law this silicon chip is doubled in every 18 months
that is the major achievement. For example- Itanium 2 that is developed in 18 months in Dual
core Itanium 2 processor. In developing the Moore's law designers and developers face the major
challenge to change and modify the technology that is convection to use by the user (Singh and
Hess, 2017).
C. Description of technology used in topic and what it is used for
Moore's law is based on the Silicon chip technology in which it is developed and
modified every 18 months and it is used in computers which is now turn into tablet form and
telephones that is now converted in smart cell phones. This silicon chips are used in
manufacturing the goods, integrated circuits and making the machines like computers that will
now turn into laptops and tablets. This is the great achievement in the innovation world. This
term is used in the industry based on semiconductor for guiding the long term based planning
and set the goal for research and development (Nylén and Holmström, 2015).
D. What technological platform and software are used in topic
In Moore's law the technological platform is based on the silicon chip that is used on
computers, mobile phones and other electronic gadgets. This term is very effective in digital
technologies and at the time of operating new businesses. In this Intel software is used in which
using the transistors by single microchip are double in every eighteen months. In Intel there is a
hidden in-chip is fixed in the operating system that is based on networking and web server. It is
used in mainly all type of businesses to done their routine and specific work so that target can be
achieved within a time period.
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E. Type of businesses and organisation uses the technology
There are various types of businesses and organisations are involved that helps the person
to generate profits and enhance their living standards. In context of Moore's law basically new
and large type of organisation is used because it includes more cost and maintenance in installing
the Moore's software i.e. Intel. It is used in varieties of businesses such as schools, hospitals or
healthcare department and other food sector organisation so that work can be done in a smart and
effective way. Because using this law helps in giving the accurate results to the complicated task.
In this Moore technology is used to satisfy the customers with the company products and
services because they can innovate present the offering to the people so that they get attracted
and purchase the same (Horlacher and Hess, 2016).
F. How it is used as business tool and its effectiveness
Moore's law is very effective and efficient because it is used as a business tool and it also
very effective in nature. According to the technological advancement business tool includes
software, e-mail, video conferencing, note-taking apps etc. In all this factors Moore's law
software Intel is effectively work. Previously businesses use messaging app only but due to
advancement in Moore's law company can transfer their information via video conferencing, E-
mails etc. this helps in connecting with the customers and outside clients which gives more
profits and revenues with longer sustainability in the marketplace (Horlacher and Hess, 2016).
Nature of the relationship between digital technologies and both old and newly emerging
theories on business and management
The course content is based on digital technology and the influences which digital
technologies has upon the business environment. As Moore’s law defines that the transitions
doubles every two years, it provides an understanding that how every year computers and digital
devices are becoming massively efficient. There was a time when one music track required one,
one entire device to store but today thousands of music tracks can be stored in a device that can
fit in one’s pocket. The law of Moore has changed the technological world and redefined the
digital technology due to which it can be said that the topic of Moore’s law is highly related with
the course content of digital technologies (Otley, 2016).
There are various theories in the field of business and management which are related with
the digital technology of Moore’s law. These theories are both old and new emerging concepts
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which are indirectly or indirectly related with the Moore’s law. The relationship and the nature of
relationship between business management theories and Moore’s law is analysed below:
Old management practice theory: Democratic theory
Democratic theory is an old management theory introduced in 20th century. This theory
supports the democratic style of leadership under which each and every member of the
organisation has a value in the organisation and has the permission to share their ideas and
thoughts. This theory of management is highly applied in the procedure of decision making in
which leader or manager of the organisation seeks advice of their subordinates. By this following
this management practice theory, the leader and organisation is benefitted by the effective
decisions and growth. The main aim of applying the democratic theory in an organisation’s
management is to acquire growth. When numerous minds are engaged in the process of decision
making, it is possible to experience chaos and high time consumption but this procedure also
ensures growth of the organisation and its employees (Postill and Pink, 2012).
Democratic theory of management has a main agenda to acquire growth in operations. In
current scenario, this growth is acquired using digital technologies as these technologies are
growing with fast pace that can match the fast growing rate of organisations implementing
democratic theory. The variables of democratic theory and the digital technology of Moore’s law
are related to each other. This relationship can be evident with the argument that Moore’s law
states that the transitions in a microchip doubles up in every two years. Looking at this rapid and
constant growth in this digital technology, it is important for an organisation to also adopt a
management practice theory that can complement enhancing technology speed and one of such
theory is democratic theory. This relationship can further be explained with a real life example of
an organisation. Apple Inc. is a market leader organisation which operates in personal computers
and smart phones. This company was established in year 1976. The first ever computer
manufactured by this company was Apple 1. This computer weighed around 16.5 pounds and
had 4 Kilobytes RAM with 8 KB expendable memory. This personal computer was the
breakthrough of its times. After few decades, Apple has launched its latest personal computer
MacBook which weighs only 2 pounds but has 8GB RAM and 512GB memory. This growth of
Apple Inc. was the result of high growth in microchips whose transitions were doubled up in
every 2 years.
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The above analysis and example makes it clear that digital technology of Moore’s law
and management practice theory of democratic management has a positive and powerful
relationship.
New management practice theory: Modern quantitative theory
This management practice theory is a 21st century contemporary theory in which all the
decisions are undertaken after quantifying the data of the projects. This theory provides a data
driven approach which eliminates the factor of probability and provides accurate results. This
theory is modern theory as it is developed for modern businesses that do not only focus on
earning high profits but also focus on sustainability and growth. This theory is considered as
more effective than classical management theories as according to the modern approach an
organisation can follow different leadership and growth theories but they must also use
quantitative approach to analyse their data and then make reliable decisions (Unger, 2011).
The modern theory and digital technology of Moore’s law is related to each other as both
theories have the same objective of acquiring growth. The relationship between these theories
can be analysed by using the example of Tesla. Tesla is the most growing and innovative car
manufacturing organisation. This company is using both the modern quantitative theory and
Moore’s law to acquire growth. This company analysed their data and observed that the future
relies upon electronic cars as petroleum and other fuels are non renewable. This data was gained
by Tesla used quantitative theory. This observation was converted as an idea for Tesla and later
converted as a reality. By analysing this evidence, it can be said that the nature of relationship
between Moore’s law and Modern quantitative theory is positive (Verčič and Verčič, 2013).
From the analysis of both the theories, it can be analysed that the digital technology of
Moore’s law is a theory related to the growing aspect of an organisation due to which it is
positively related with both old and new management theories.
Business model: Ansoff matrix
Ansoff matrix is a growth business model which provides growth directions to business
organisations. As shown in the figure below, there are 4 growth directions which are Market
development, product development, market penetration and diversification.
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(Source: Ansoff matrix, 2020)
Moore law is a scientific concept which relates to the growth of technology. Using this
scientific technology, an organisation can select one growth direction out of the 4 analysed in
Ansoff matrix.
Business model: Boston matrix
This business model is a portfolio which helps in analyse an organisation to identify their
portfolio of brands. This model is usually used by large scale organisations to analyse that in
which portfolio of products they require to invest in. There are four types of portfolio according
to this model which are identified in below figure:
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(Source: Boston matrix, 2018)
This business model can be linked to Moore’s scientific theory in which transitions in a
digital device doubles up every two years that increases its capability to store data. This theory of
Moore is developed to assist growth of the organisation using which a company can acquire
growth and can decide the appropriate portfolio for their business investments.
CONCLUSION
From the above report, it has been concluded that the Moore’s law is a significant topic to be
investigated as it is highly related to the growth of an organisation. The above report helps in
providing a conclusion that it is important for an organisation to adapt growth by adapting
growth strategies in order to align the organisational operations with high pace of digital
transformations.
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REFERENCES
Books and Journal
Gordon, S., 2015. The Future of the Music Business: How to Succeed with New Digital
Technologies Fourth Edition. Hal Leonard Corporation.
Horlacher, A. and Hess, T., 2016, January. What does a Chief Digital Officer do? Managerial
tasks and roles of a new C-level position in the context of digital transformation. In 2016
49th Hawaii International Conference on System Sciences (HICSS) (pp. 5126-5135). IEEE.
Matt, C., Hess, T. and Benlian, A., 2015. Digital transformation strategies. Business &
Information Systems Engineering. 57(5). pp.339-343.
Nylén, D. and Holmström, J., 2015. Digital innovation strategy: A framework for diagnosing and
improving digital product and service innovation. Business Horizons. 58(1). pp.57-67.
Otley, D., 2016. The contingency theory of management accounting and control: 1980–
2014. Management accounting research. 31. pp.45-62.
Postill, J. and Pink, S., 2012. Social media ethnography: The digital researcher in a messy
web. Media International Australia. 145(1). pp.123-134.
Singh, A. and Hess, T., 2017. How Chief Digital Officers promote the digital transformation of
their companies. MIS Quarterly Executive. 16(1).
Unger, D., 2011. Modern innovation management theory and the evolving US lighting
industry. Journal of Management History.
Verčič, A.T. and Verčič, D., 2013. Digital natives and social media. Public Relations
Review. 39(5). pp.600-602.
Westerman, G. and Bonnet, D., 2015. Revamping your business through digital
transformation. MIT Sloan Management Review. 56(3). p.10.
Online
Ansoff matrix, 2020. [Online]. Available through:
<https://corporatefinanceinstitute.com/resources/knowledge/strategy/ansoff-matrix/>
Boston matrix, 2018. [Online]. Available through:
<https://expertprogrammanagement.com/2011/04/bcg-matrix-boston-matrix/>
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