Digital Business: Merits, Disadvantages, Models, Collaborative Relationships, Strategic Alliances

This document explores the concept of digital business, including its merits and disadvantages. It evaluates new and emerging digital business models and discusses the impact of collaborative relationships and strategic alliances. The case study focuses on Lantum, an NHS total workforce platform. The document provides insights into the application of e-commerce principles in the organization.

Digital Business

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. What is Digital business along with merits and disadvantages..............................................1
2. Evaluate new and emerging digital business models...............................................................3
3. Impact of new collaborative relationships and strategic alliances...........................................4
4. Discuss how e-commerce principles could be used in an organisation...................................7
CONCLUSION................................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
The term digital business is to create a new value new innovations in marketplace and
support their internal capabilities of operations (Agrawal and Narain, 2018). It is mainly used
for customer who uses new technology and transformation in digital brands that are transforming
their enterprises. The aim of this report is to identify various key business issues and evaluate
their strategies that are applied in digital business. It is also shifting in buying power to
determine how those applications will suit their needs instead of mistrust on IT changes. Selected
organisation is Lantum – NHS total workforce is a workforce platform for healthcare enterprises
that transform how healthcare staffing operates. The vision of Lantum how medical workforce
connect and engage of employees. For this assessment, various topics are covered which are
named as merits and demerits of digital business, evaluate new and emerging business models,
collaborative relationship and strategic alliances along with impact, define e commerce and how
e-commerce principles are applied to this organisation.
MAIN BODY
1. What is Digital business along with merits and disadvantages
It is creation of new business and adoption of new technologies and ideas to transforming
goods and services with digital procedures (Akhter, 2017). It is important to analyse data that all
marketing efforts are captured can help too understand clients better and take decision making in
a proper manner and also impact on return on investment (ROI). For Lantum, it is helpful in
business to enhance sales and better savings. Various technologies are decreased in automatic
participation that becomes more faster and beneficial for organisations. Key essential merits and
demerits that are used in digital business with context to Lantum are as described below:
Advantages of digital business:
 New contact channels with customers: Digital business create a new ideas and
innovations that's why customer are increasing but also way of communicating with
customers also enhance through emails, Facebook and other social networking sites. For
Lantum, new clients are enhanced this has impact of multiple ways to contact with
customers. To increase their sales, loyalty and new responsibilities and sometimes they
provide a new channels of communication way of doing things.
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 Better decision making: It is helpful to make a better decision making and knowledge
to contact with customer allows firm to further apply data when making decision in
business (Bereznoy, 2018). With relation to Lantum, firm used digital business to make
efficient decision because if customer are increasing then they can make good quality of
products and communicate customers can help to make decision better in term of
profitability an productivity of an enterprise. There is more information in business that
will allow to make better decision making and technologies can faster.
 Improves efficiency and productivity: Digital technologies improves their profitability
to develop new ideas and innovation are enhanced. Digitalization in firm can lead to
importantly increment their productivity and reduce costs. This technology helps to
improve those areas for many years. For Lantum, it makes information more useful and
in case increasing profits is having access further improves efficiency and impact on
productivity.
 It makes communications and team work easier: Communication is very important in
business this will impact on profitability and productivity. To facilitate excess
information, digital communication is much easier for team building and maintain
employees to be more productive. For Lantum, it helps to adoptive a good
communication that improve work between head or staff members which can improve
morale and goodwill in an enterprises.
Disadvantages of digital business:
 Data security: It is helpful in digital business and technologies means a huge amount of
various information are collected and stored. Some stored information are useful for
organisations and individual person which is compromising (Bican and Brem, 2020). For
Lantum, firms used data to analyse various information of customers and report of
management through various social networking sites all around world and some firms
have some privacy in data that they cannot leak.
 Digital technology creates dependence towards many social media networks:
Sometimes they can use online and offline games, other websites can be sensitised to
become addictive. Nowadays customers are more involved in social networking sites and
destroy ability and they give maximum time to perform significant task in daily life. In
case of Lantum, it is helpful for organisations because they can search any customers in
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any place through various sites and deliver their product or services at right people to
maximise their profitability and productivity in an enterprise.
 Plagiarism and copyright: It is hard to determine that some information are implement
through social media sites and track each and every data is become harder. Sometimes
data are copied so it is easily to find through plagiarism which is worthless and everyone
can copy or paste data through internet and spent less time to learn them. With context to
Lantum, firms used plagiarism to check data if they are copied or not because some
customers are track their information through internet and do not learn various useful
information.
 Privacy concerns: Digital business used some software to have personal privacy in
enterprise and it dangers that someone has stole their data or sold in market. With
reference to Lantum, employees can control their personal information is very difficult
and impossible way to determine their information and various hacker who hack this
information.
2. Evaluate new and emerging digital business models
The term digital business models that describes how firms can creates and deliver product
or services to their customers and it is based on development of benefits of customers though
using digital technologies (Cusumano, Gawer and Yoffie, 2019). They can deliver their services
and construct model to market, customer and role of a firm. It is often used start-up and set a
ventures for help them to designing and build and maintain their new ventures. To identify
various business plans in terms of profits of products or services where firm can sell and target
their identified market. It is important for both established business or new business. With
relation to Lantum, firms used this model to focus on profits and incomes which bring to
disciplines and procedures, growing of business enterprises. Various business models that are
used with context to Lantum are as mentioned below:
Freemium model: This is most frequently use in business models which are used in
received a product or services free of cost. It is used only basic functions should be offered such
as premium functions, no branding or enlargement of various services and most important
customer should be pay. This type of model are allows those users to utilize their basis
characteristics of software and upgrades games to basic package. In case of Lantum, it is very
easy model to reach their customers base and expand their business into new markets when they
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can generate their revenue. It is applicable for low margin costs in product or services or where
customer information are gathered has a higher value as compare to operating costs. It is
important or successful for firm to allow new venture and attract a user base without extending
their resources on a costly basis.
Subscription model: This model used in offer various subscription to customers in
products or services (Gobble, 2018). The aim of this model is to bring customer for long term
and in case of one time purchase system, benefits of customers through improvements and
expand their service. This model consist of customers pay at a recurring price at a particular
product for a regular interval. With context to Lantum, firm use these model only for ideas for
selling their product or services which receive yearly or monthly. It can mainly focus on how to
generate revenue for goods and services.
Experience premium: This premium model are used in good experience for customer
that adds a value to exchangeable products are there. Various brands and services are especially
for improvement in customers and premium prices are charged. In case of Lantum, it is
important for business for customer experience this will enhance to customer expectations.
Brands have to be accurate and provide services they guaranteed.
Free offerings: This model is only gained for popularity for instance google. Many
owners expect that they are utilize their services on a free basis but such business models usually
evaluate their services for potential information about customers. In case of Lantum, to profitable
business they can utilize their services for a long period of time and it is popular for those
companies who are selling their product on a free of cost.
3. Impact of new collaborative relationships and strategic alliances
Collaborative relationships: When two or more people can work together with great
efforts in order to accomplish their goals and objectives. Each and very people have different
mindset and different point of views (Gupta, 2018). It is an complex process that sometimes
people can force to communicate and listen with each other in may ways. Impact of
collaboration relationships are to increase employee satisfaction which helps to create an
environment where employees are valued for key skills and impact towards positive firm
culture. For Lantum, it is helpful to maintain and build a relationship and trust with each other.
Communication is properly between employees and customers in terms of techniques and
debates. Key advantages of collaboration relationship that defined are as under:
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Advantages of collaboration relationships:
 Enhanced creativity: If there is a greater innovation means people are bringing together
with various skills and knowledge to engage their many activities. Many people in
business are using their creativeness especially in team collaboration to solve their
various problems and innovate something new. In case of Lantum, it is helpful for firm to
learn new things, new ideas and innovative things cane be done for bringing together and
try to solve their problem for their creativeness.
 Communication and participation: When two or ore people bring together they can
communicate easily about work and solve their problem. Team knows that how to
comfortable they can share their ideas and collaborate most firms. The level of
participation defies that each team members can communicate with each other in a clear
and definite manner. With relation to Lantum, manager can communicate properly with
team members and bring forth new innovations and the way to develop their team
members should be improved.
 It helps people to learn with each other: One of best things that they can learn with
each other because each and every person have different point of view, different
knowledge and skills so they can understand with each other better (Kane, 2019). They
can learn something new innovative ideas have to be developed and finding out hoe
collaborators approach of this project and gain better knowledge. In case of Lantum, firm
used this collaboration because team can collaborate and have a opportunity to learn
something new, sharing ideas and knowledge with each other. They will also
understanding with each other perspectives.
Disadvantages of collaboration relationships:
 Conflicts in working styles: Sometimes when two or more people work together so
everyone has different understanding so there is conflict are upgrade in individuals. For
Lantum, there is a negative aspects of collaboration because they can accomplish their
goals and objectives and team members are used a different method to use their work.
 Lack of trust issues between team members: Employees related to team members have
a trust with each other if there is not then there is conflicts are arises and firm goodwill
will down. With context to Lantum, team leaders sets their clear expectations in a group
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and they can help to prevent it. Each an every team members have their work are allotted
and they can complete their work before deadlines and maintain a trust with each other.
 Too many false leaders: When there is a collaboration group sometimes team members
can end up with so many people are trying to lead their group, this will lead to impact on
various staff members may cause tension in group and not even involved in any effort of
collaboration. With relation to Lantum, firm has a disadvantage where team leaders are
false and it include all heads and staff members are tensed in organisation and their
goodwill is also down.
Strategic alliances: It is an agreement between two companies with a particular set of
objectives and agreed to share a common goal but it will remain independent (Kollmann, 2019).
In case of Lantum, firm used this alliance to decide and join their forces to develop new products
or services or enter into a new market. Key advantages and disadvantage of strategic alliance are
as follows:
 Increase sales: Firm used to increase their sales to maximise their profitability and
productivity in an enterprise. For Lantum, They can expand their business with other
firms which is very difficult for an organisations.
 New market penetration: Most of firms can expand their market with a best possible
solution that would not have been possible to other firm. In case of Lantum,
Organisations going internationalisation with a trusted local partner and get a advantages
in local market related with products or services.
Disadvantages of strategic alliance:
 Poor management: In strategic alliances, many organisations have known their own
culture and they are liable to part of other business activities and they can handle those
activities which result in poor management over firm alliance.
 Risk of goodwill: If firm can produce goods and services then there is chances of some
percentage to risks no matter how they can maintain their trust with customers risk of
failure enhance reputation and also influenced the actions of organisation.
 Conflicts arises: If there is risk for two companies then there is conflicts are also arises
when they don't understand their conditions and cant trust with each othe (Kraus, Roig-
Tierno and Bouncken, 2019). For Lantum, work are sought out if all problem and
conflicts might take place in future and take proper precautions is necessary.
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4. Discuss how e-commerce principles could be used in an organisation
E- commerce: This term consists of buying and selling of goods and services over
internet. They can transfer data to execute such transaction dealings and it is used to sale a
physical products online (Kreutzer, Neugebauer and Pattloch, 2017). Business transactions of
money, funds can also be influenced for E- commerce. Their benefits of E- commerce are to sell
their products or services globally, it can raised income and personalized online experience.
These transactions are business to business (B2B), business to consumer( B2C), consumer to
consumer(C2C), consumer to business ( C2B). Key principles of E commerce that are used in
context to Lantum are as mentioned below:
User friendliness: It is easy to be navigate their websites and allows users to search
several products they they want to buy. With relation to Lantum, firm can reach their users and
should provide various details about products or services so that they can satisfied with their
products and understand well.
Design are unique: There are various competitors in this business and many tough
competition from rivals. Market are full of buying option and there is a chance to impress those
customers who interested in their products or services. For Lantum, they should be implement
their design and again to reach their customers for their unique design of product and determine
how to improve impress customer through their unique products or services.
Emphasize on security: Each and every person who are buying their products or
services it needs to be assure that there is a security for financial details and safe that they are not
going to third party (Nwankpa and Datta, 2017). To make sure that customers payments that they
are invested in buying product or services is safe and secure which will directly affects leads,
ultimately their results are based on sales targets. For Lantum, it is very important for
organisation to used their security for secure their data and transactions in firm. It is also make
sure that there is a timely payments to customers through these data.
Know target audience: It is very important to know their customers like how they can
purchases products or services. Their design, website serves them better and they have to
understand about what type of products or services they want so that they can make them feel at
ease and provide them with services to win their trust. In case of Lantum, firm need to be
identify target audience where they can sell their products or services and check buying patterns
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of customers. It has impact and would be increase their user experience in which they can
directly achieve their income through their target audience.
Effective product descriptions: The descriptions of product or services are very
essential for customers because they need to be identify what was product is and influence their
buying behaviour patterns. In products the more features are there, the more customer are attract
such as their descriptive text, images and videos are better that will related to buying needs. With
relation to Lantum, it is useful for organisation because this will help to increase their Return on
investment (ROI) definitely.
CONCLUSION
As per above information, it has been understood that digital business create a new
innovation, new ideas and assistance to internal and external control of operations. It is important
for organisations to increase their sales and better savings and its directly impact on digital
technologies so that they can directly reach their customers. In this report, various topics are
covered such as benefits or limitations of digital business, to discuss new and emerging business
models to determine how firm can deliver their product or services to customers, impact on
collaborative relationships and strategic alliances along with merits and demerits and defined E-
commerce for buying goods and services deals with various business transactions and how e-
commerce principles used in this organisation.
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REFERENCES
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