Digital Business: Advantages, Disadvantages, and Collaborative Relationships

Digital Business

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK ..............................................................................................................................................3
1- digital Business............................................................................................................................3
1.1 Digital business ....................................................................................................................3
1.2 Advantages ...........................................................................................................................3
1.3 Disadvantages ......................................................................................................................4
1.4 Application ...........................................................................................................................4
2: New emerging business models and business issues...................................................................5
2.1- New emerging digital business model.................................................................................5
2.2- Discussion on digital business models................................................................................5
2.3- Business issues faced by company......................................................................................6
3: Impact of new collaborative relationship.....................................................................................7
3.1- Collaborative relationship and strategic clliance.................................................................7
3.2- Advantages and disadvantages of collaborative relationship..............................................7
3.3- Application for company to use collaborative relationship.................................................9
4: E-commerce principles................................................................................................................9
4.1- E-commerce.........................................................................................................................9
4.2- E-commerce principles........................................................................................................9
4.3- Application of e-commerce principles for company.........................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Digital business is the mode of doing business which is done through the means of internet. Uber
is the chosen organization for the analysis within the report. Uber tend to provide its services all
across the globe through the means of internet. In which customers are able to rent cars for
making their travel arrangements. Organizational customers can book their desired ride through
company's mobile application and company website. Study on the overview of Uber's operations
is done within the report, with that analyses on the associated advantages and disadvantage.
Evaluation on the new emerging businesses models is analysed in the report. With that analyses
on the impact of new collaborative strategic alliance through the means of digital technology is
also being analysed within the report.
MAIN BODY
TASK
1- digital Business
1.1 Digital business
According to Swaminathan, (2019) digital business is defined as the venture which utilises
technology for creating value to business and for improving internal capabilities. Such types of
businesses use technological advancements to improve the customer experience. In order to
embrace the digital transformation organisations are also required to bring cultural shift. In
addition to provide efficiency and elimination of redundancy digital businesses also emphasis
upon creating new user experience and value by differentiating services. Weill and Woerner,
(2018) stated digital business strategy as the capacity to leverage various digital technologies so
that customer value equation can be transformed and competitive benefits can be gained.
1.2 Advantages
The key benefit of digital transformation is that it enhances data collection and better
resource management. With globalisation the scope of business is continuously increasing and
thus for growth opportunities organisations must collect right data and its full exploration. This is
possible due to large capacity and efficacy of digital technologies (Murawski and Bick, 2017).
Such types of businesses integrate software hardware and database into a central system for
business intelligence. With the digital processes it is also possible for the organisations like Uber

to use both structured as well as unstructured data to predict the customer behaviour and
preference. It gives customers a personalised experience and satisfaction.
Another advantage of digital business is that it not only affects the business operations but
also influences the behavioural and attitude perspective. Unlike other technological development
digital businesses also establish balance between technology and human being. It works with
agile process and people centric view so that people can optimise business functions for
increased profitability. Along with the improved productivity digital businesses are also
beneficial in improving agility in business operations which encourages adaptation and
innovation.
1.3 Disadvantages
Digital businesses have increased the communication and transparency in the business
operations. However, it has also resulted in several disadvantages. The foremost disadvantage is
security threats. There has been constant debate over the extent up to which organisations like
Uber are accessing or using customer’s personal data. The increasing cyber or networking threats
always impose a challenge for organisations to protect the data privacy and related regulations.
Though with technologies companies are able to reform the business process but it has risked the
privacy of individuals. Customers as well as employees of the business are always on continuous
monitoring through digital tools. It not only cause privacy concern but can also result in safety
issues. Another disadvantage of such digital services is that they had made industry highly
competitive. For competitors as well as customers it is possible to keep regular track of service
provider (Swaminathan, 2019). Thus with constant monitoring it is very challenging for the
organisation to cope with pressure and to come up with improvement in services. Competition
like in price wars or promotional tactics are clearly visible to every stakeholders and thus it has
been very tough for the organisations to compete with each other. The digital business has also
increased expectations of customers which sometimes make it hard for organisation to fulfil.
1.4 Application
Uber has been one of the most successful technological player operating across the globe.
The online booking system and real time update to customers about their orders and services has
made organisation highly trustworthy and quality service provider. The use of accurate
technology also creates a sense of security and safety among customers which is one of the
unique feature which helps in attracting new customers. With digital culture and services, it has