Digital Business: Trends, Advantages, and Emerging Models for Amazon

This report explores the latest digital business trends and advantages for Amazon, including the use of digital technology for managing business across global markets. It also evaluates the impact of collaborative relations and strategic alliances through digital technology, and emerging models for improving cyber security and ethical business practices. The report concludes with an examination of the use of virtual or digital business techniques in the global market, and the impact of cryptocurrency on Amazon's activities.

Digital Business

EXECUTIVE SUMMARY
It has been explained that digital technology refers to the utilisation of latest technology
or gadgets such as the internet, computers, mobile phones, systems, cloud computing etc. for
generating, organising, managing, storing and producing data that could help the organisation,
groups or individuals to enhance their performance. It described that digital technology and
transformation across the globe is occurring at very fast rates and the companies need to adopt
changes accordingly.
The report has focused on describing various digital transformation trends and its
advantage for managing the business of the company throughout the global markets. It has
explained that due to the rise of digital transformation trends like CBD, multi cloud architecture,
artificial intelligence etc. the organisations have gained various advantages for growth.
Along with this, it has described the applications for managing the business across the
globalized economy and the international market. It has also elaborated that the emergence of
digital models such as E-Commerce, free model, subscription model etc. has provided
opportunities to the country to improve cyber security and business ethics of their digital
business.
Moreover, report has provided evaluation of the impacts of collaborative relations and
strategic alliance of the organisation through digital technology and application of digital
alliances with the company. Along with it, the collaborative relationship and strategic allowances
of an organisation are explained that provides various advantages to the company.
Furthermore, report has described the various trends and advantages that can be gained
by utilising virtual or digital business techniques in the global market. Impacts of cryptocurrency
on the activities of Amazon will be also evaluated at the end of this report. In the end it has
discussed the meaning of cryptocurrencies and its impact on the digital businesses and evaluation
of the Bitcoin adoption by El Salvador.

Table of Contents
INTRODUCTION...........................................................................................................................1
Overview of the Key Trends and Advantages.................................................................................1
Definition of Virtual/Digital Business....................................................................................1
Advantages of virtual/digital business....................................................................................2
Key trends in digital business.................................................................................................2
Digital Business in chosen organisation.................................................................................3
Emerging Models of Digital Business.............................................................................................4
Definition of the new emerging Models.................................................................................4
New emerging digital Models on improving the cyber security and ethical business...........5
Application of these digital models in the business...............................................................6
Evaluation of the impacts of collaborative relations and strategic alliances through digital
technology........................................................................................................................................7
Defining collaborative relations and Strategic alliances........................................................7
Advantages and disadvantages of strategic alliances or collaborative relationships.............7
Application of digital alliances through digital technology...................................................8
Impacts of Crypto Currency on the chosen organisation.................................................................9
Definition of Crypto currency and Examples.........................................................................9
Impacts of Crypto Currency on digital business....................................................................9
Critical evaluation of Bit coin Adoption by El Salvador.......................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Digital technology can be stated as the utilisation of latest technology or gadgets such as
the internet, computers, mobile phones, systems, cloud computing etc. for generating, organising,
managing, storing and producing data that could help the organisation, groups or individuals to
enhance their performance. In the rapidly growing world the use of digital technology and its
transformation has occurred with great speed that was not experienced by the world ever before.
In the constantly growing world the use of digital technology has not only supported the
organisations to store huge amounts of data and utilise them appropriately but it has also created
a wider network across the globe. Amazon is an American multinational technology company
which is involved in the E-Commerce and cloud computing business, established in the year
1994 and is headquartered at Seattle, US. The report will focus on describing various digital
transformation trends and its advantage for managing the business of the company throughout
the global markets. Along with this, it will describe the applications for managing the business
across the globalized economy and the international market. Moreover it will provide evaluation
of the impacts of collaborative relations and strategic alliance of the organisation through digital
technology and application of digital alliances with the company. Furthermore, it will be
describing the various trends and advantages that can be gained by utilising virtual or digital
business techniques in the global market. Impacts of cryptocurrency on the activities of Amazon
will be also evaluated at the end of this report.
Overview of the Key Trends and Advantages
Definition of Virtual/Digital Business
Digital technology does not have any well-structured or well-designed definition but in a
rough manner digital technology can be elaborated as the utilisation of latest technology such as
cloud computing, software, internet, computer algorithms, system generators etc. in order to
procure, classify, present, produce, analyse, Store and manage useful data and information for an
organisation, groups or individual to enhance overall performance. Gather has defined digital
transformation as "the process of utilising and simulating latest technology to support the
manpower for building a robust new business model.
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Advantages of virtual/digital business
The digital transformation and its advantages in the current generation are elaborated
below:
 Availability of Customer data platform or CDP: CDP is utilised in Companies for not
only enhancing the marketing activities but also for improving the information technology
and finance department by providing research insights and data to the company.
 Democratization of artificial intelligence: The increasing use of artificial intelligence due
to the liberalization of AI technology across the world has developed the trend to create
better artificial intelligence in organisations as early as possible.
 Digital payments have become a major part of the activities within Amazon because most
of the payments are accepted through the digital means of payment within the
organisation. It has helped the organisation to easily accept the payments and carry their
business activities smoothly and effectively.
 Automation: The automation trend has affected the utilisation and functioning of
technology within an organisation and improved the activities by utilising robotic process
optimisation for automatic activities and functions within the organisation.
 Customer insight: Companies utilizes the digital technology to stay connected to the
customers at all the times so that their demands, feedbacks and complaints can be addressed
continuously. It helps to produce best products and services for the customers to fulfil their
demands.
Key trends in digital business
The digital transformation trend can be defined as the utilisation of people process and
combining them with the technology for creating best customer experience (Anwar and Gill,
2019). For doing so, Amazon has developed and structured its organisational structure so that it
could sustain the competitiveness within the market by creating competitive results.
 Availability of CDP: As per the survey conducted by OECD Economic Survey, UK, it was
discovered that the businesses across the global markets have more data about their
customers in comparison to that of any other time. This was due to the utilisation of digital
technology and transformation trends in the business activities of the company.
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 Multi cloud architecture: The rapid increase in the use of cloud technology in the highly
developing world is among the main reasons for the occurrence of virtual businesses
(Domnina and et. al., 2021).
 Multi cloud architecture: Due to the ill effects and consequences of COVID-19 many
companies have faced severe losses and some of them were reduced to dust. Due to this the
companies has adopted cloud technology and multi cloud architecture to help and manage
the activities of organisations remotely and enhance its activities even in the time of
pandemic.
 Advancement of digital payment system: The use of digital payment system is another
digital transformation trend which includes utilising the digital payment methods for
processing the payments and transfer of funds through the easy means of internet technology
and mobile phones.
 Automation: With high speed of changes in the digital technology which has also brought
the trend of automation among the activities of the company. It has improved the activities
by utilising robotic process optimisation for automatic activities and functions within the
organisation.
 The occurrence of spectrum technology: Due to the trends of the internet and
advancement of 4G, 5G and 7G internet technology the world has taken another step into
virtual businesses.
 Data driven Customers: The rapid utilisation of technology by customers has led to the
advancement of digital technology in the business. The customers are more affected by the
advance technology and their preferences are moulded by the utilisation of digital
technology trends.
Digital Business in chosen organisation
In order to manage the business effectively and gain opportunities for higher rates of
growth and increasing competitiveness, Amazon should utilize digital technologies. The
utilization of digital technology by Amazon improves the business systems and generates higher
customer experience and efficiency of their performance (Levallet and Chan, 2018). Digital
technologies are the upcoming future and the companies like Amazon should adopt the digital
trends to stay competitive in the future market.
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 CDP: By utilising the CDP, Amazon constantly interacts with its customers to understand
their preferences and develop the best products and services that are in the demand of their
customers so that maximum profit can be gained.
 Multi cloud architecture: The Amazon has adopted cloud technology and multi cloud
architecture to help and manage the activities of organisations remotely and enhance its
activities even in the time of pandemic (Limani, and et. al., 2019).
 Democratization of artificial intelligence: This led to the strategic alliances among the
companies or the development of artificial intelligence solutions within the organisation
with the help of improving the service providers from Microsoft, Google and AWS. Amazon
has integrated itself with other companies and developed its own artificial intelligence
solutions to support the overall growth of the organisation.
 Atomisation: Amazon has adopted digital technology in order to improve their supply chain
by tracking their products in real time through the utilisation of artificial learning, real-time
data detection, etc. This has reduced the efforts of employees to constantly keep eyes on the
processes and has optimised the speed of working within the organisation.
 Use of Spectrum: Amazon utilises this technology for improving the automation and
bringing the changes to customer experience. By utilizing the spectrum technology the
company can easily create big data, enhance customer experience, and improve the online
business activities across the globe.
 Knowledge of Customers due to data driven customer insights: Amazon has utilized
digital technology for improving the growth of business in a successful manner by providing
better inside to the customers through effective virtual and digital trends (Love and
Matthews, 2019).
Emerging Models of Digital Business
Definition of the new emerging Models
Weather rapid advancement of the technology across the global market the chances of
digital threads and cyber security as well as threats to the business ethics are occurring. The
new emerging models refer to the development of new creative structures for utilising the digital
technology within the business. This digital model helps to improve and tackle the situations
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regarding the cyber security and ethics of Amazon for containing its digital operations. The
digital business cannot be considered neutral in terms of ethics towards their customers because
they digitally collected the information of the customers which may also be confidential and may
not be supported by them.
New emerging digital Models on improving the cyber security and ethical business
There are many digital models that have the company to grow their business. There is a
significant threat of cyber security and ethics that can be tackled by using these models which are
elaborated below.
 Free model or add supported model is designed or developed for providing the complete
information about the products and services to its customers without any additional cost for
availing that information.
 Freemium model: This form of model is developed for providing unlimited control over the
information and data that is provided to the customers. In this form of online business
models the customers get free access to the basic functions and are limited to the use of
advanced functions of the company.
 On demand model: Under this form of model the customers are provided with online video
services on their demand with certain cost (Luciano and Wiedenhöft, 2020).
 E-Commerce model: This form of model is very successful selling physical products with
the help of online stores, sites or applications (Matarazzo and et. al., 2021).
 Ecosystem model: It is also said that digital ecosystems were the most complex but the
most powerful and important digital business models in the current world.
 Access over ownership model or sharing model: This form of model allows the customers
to use a product or service or offering without actually owning it and paying a limited
amount for taking it on lease.
 Subscription model: This model allows an individual to subscribe or gain unlimited access
by paying an already decided amount for subscribing the content for specific duration like
monthly, half yearly quarterly or yearly.
 Open source model: It is among the most successful of open source models that they are
open to everyone and all the people can access it.
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Application of these digital models in the business
These business models have highly affected the ethical and cyber security of the business
because they are a part of customers' lives. The business models that are utilised by Amazon
have an impact on the customers therefore it must be made very secure and reliable for them.
 Free model or add supported model: Amazon utilizes the free model in order to offer all
services and information to the customers that are available on its website for enhancing
customer experience. It also provides the information about the products and services it
offers as per the requirements of the customers.
 Freemium model: The Amazon utilises freemium model to provide customers with limited
online music services by providing a basic control to its customers that can be fully
controlled by making payments or subscribing.
 On demand model: Amazon provides online Amazon Prime services on its online
platforms and applications through this model (Mizintseva and Gerbina, 2018).
 E-Commerce model: The best exam is the online store of Amazon that provides an E-
Commerce business model for selling physical products through its online stores and
applications.
 Ecosystem model: The ecosystem model is the combination of interconnectedness and
multiple digital tools of organisations that operate virtually such as Google, Tesla, Apple,
Amazon and many others who provide their services through interconnected networks
across the virtual web.
 Access over ownership model or sharing model: Amazon tried to utilise this model in a
way back period but it has its own consequences because the ownership can be lost for some
time by doing so.
 Subscription model: Amazon utilizers this model for providing Amazon prime membership
to its customers through subscription.
 Open source model: Amazon has never utilised the open source model but it developed its
content to be published so that it can be available to everyone and the company can gain
opportunities for improving its software.
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Evaluation of the impacts of collaborative relations and strategic alliances
through digital technology
Defining collaborative relations and Strategic alliances
The collaborative relationship alliance refers to the co-existing work of two organisations
by sharing mutual understanding and knowledge to gain better growth. Amazon has developed
collaborative relationships with PayPal, Tele-com E-com Express and other various digital
solution providers so that it can enhance its operating activities effectively and efficiently.
Advantages and disadvantages of strategic alliances or collaborative relationships
The main advantages for collaboration and strategic alliances by an organisation are to
gain competitive advantage and develop new ideas to help the company to grow effectively and
efficiently.
 Higher revenue generation: It is among the major aspects and reasons for adopting digital
transformation technology because it has to improve the organisational performance and its
marketing and sales activities.
 Development of new products: The utilisation of digital technology has helped to create
and develop new products and services by understanding the critical demand of customers.
 Unified customer data: With the help of strategic alliances and collaborative relationships
the customer experience can be streamlined and the company can focus on common
objectives for transforming its digital practices.
 Optimisation of work flow: The strategic alliances and collaborative relations with the
other organisations and digital companies can improve the performance of employees at the
work.
 Enhancing customer experience: By the use of strategic alliances and collaboration the key
stakeholders of the organisation are its customers, whose experience can be improved
(Perkin and Abraham, 2021).
The main disadvantage of utilising the strategic alliances and collaboration through digital
technology is the sharing of information and data of the customers with the other strategic units
with whom the company wants to collaborate. It may lead to the theft of vital data of the
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customers and the organisation increasing the chances of its misuse and degradation of
organisational image and reputation in the market.
Application of digital alliances through digital technology
 Higher revenue generation: With the help of utilising digital technology and synchronising
the activities of organisation in a more effective and efficient manner Amazon tried to
enhance its payment activities. With the help of utilise in the digital technology and the
various collaborative and strategic alliances with digital payment platforms it improves
payment options across its operations.
 Development of new products: Amazon new solutions and Amazon cloud are among the
most important components of Amazon's collaboration and strategic alliance with cloud
computing organisations so that new products can be developed as per the demands of
customers. The collaboration of Amazon has helped in collecting data from customers and
directly utilising it to diagnose processes and enhance their selling activities.
 Unified customer data: With the help of collaboration and strategic alliance with Tele-
performance and E-Com Express, Amazon is able to provide better customer support
services. This has also improved the collaboration among the employees at different levels
of work to provide better insight for their working.
 Optimisation of work flow: Amazon has improved the work flow within the organisation
by collaborating with the e-Com Express to track their products and services on real time
detection for providing best services to its customers. It has improved the collaboration
among the employees at various levels and various departments to improve the delivery
services of their products.
 Enhancing customer experience: The strategic alliance helps to facilitate greater
connectivity of Amazon with its customers to enhance customer support and experience.
The statistics alliance of Amazon with telecommunication companies has improved its
remote customer feedback operations and query resolution.
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Impacts of Crypto Currency on the chosen organisation
Definition of Crypto currency and Examples
Crypto currency can be explained as an encrypted data script or strings of data that denotes
a unit of currency which is monitor and classified by a hand-in-hand network or interconnected
network that is called block-chain, which performs as a secure ledger for transitions regarding
the purchase, sales and transfer of funds (Rikap, 2020).. In simple manners cryptocurrency can
be stated as a digital form of real currency that may or may not be authorised by the government
or some organisation to uphold and maintain its existence. Some of the digital currencies that are
authorised by the government are regarding the digital transitions that are used in the NEFT and
others which do not fall under the category of cryptocurrency. Another example of
cryptocurrency is bitcoin which does not have any authorised body maintaining its existence and
up holding its responsibility.
Impacts of Crypto Currency on digital business
The use of cryptocurrency within an organisation or digital business activities can
potentially facilitate huge growth opportunities for the organisation (Thite ed., 2018). The
business needs to understand why they want to utilize the cryptocurrencies within the
organisation by understanding and simulating its unknown dangers. It is very clear that the
cryptocurrency within any economy may provide huge opportunities for growth because it has
already shown 1000% growth in the previous decade after its occurrence. For Amazon and its
digital business operations the cryptocurrency may be an alternative for balancing assets to cash
and performing its business transactions which may be a little difficult due to the fluctuating
market conditions. The use of cryptocurrencies on the digital businesses may be an investable
asset because some of the cryptocurrencies like Bitcoin have performed very exceptionally in the
previous decade after its occurrence.
Critical evaluation of Bit coin Adoption by El Salvador
In the last quarter of the year 2021, El Salvador has accepted Bitcoin as a legal tender and
has become the first country to do so (Voelpel and Leibold, 2018). It is a very contrasting
decision because the idea for adopting the cryptocurrency as an official legal tender may be very
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dangerous for the developing countries as well as the developed countries across the globe. The
cryptocurrencies may have provided the opportunities for huge growth but they are unstable and
can lead to the degradation of the economies in a single impact. The adoption and acceptance of
Bitcoin or cryptocurrency as the legal tender is highly doubtful because they are not designed to
fulfil any requirements of the real cash, unit of account or store of value. The cryptocurrency are
very volatile and they do not have any precise backup and authenticity from any institution or
government which make it complex to operate with it. The use of Bitcoin or Crypto currency
may lead to certain advantages and chances for growth in the upcoming future World but in the
current era if the crypto currency is utilised without any proper authentication and backed by
authorised body maintaining it existence may certainly lead to damaging the outputs. Therefore it
can be confused that cryptocurrency may be a digital tool for the future generations but it should
be awarded by the companies in today's world until they are backed-up by some governing
bodies who are willing to take its responsibility.
CONCLUSION
It has been concluded from the above report that digital technology and transformation
across the globe is occurring at very fast rates and the companies need to adopt changes
accordingly. It has been obtained that due to the rise of digital transformation trends like CBD,
multi cloud architecture, artificial intelligence etc. the organisations have gained various
advantages for growth. Moreover it has been understood that the emergence of digital models
such as E-Commerce, free model, subscription model etc. has provided opportunities to the
country to improve cyber security and business ethics of their digital business. Along with it, the
collaborative relationship and strategic allowances of an organisation are explained that provides
various advantages to the company. In the end it discussed the use of cryptocurrencies and its
impact on the digital businesses and evaluation of the Bitcoin adoption by El Salvador.
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REFERENCES
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Chances of Knowledge Based Economy (pp. 149-157). Springer, Cham.
Levallet, N. and Chan, Y. E., 2018. Role of Digital Capabilities in Unleashing the Power of
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Limani, Y., and et. al., 2019. Digital transformation readiness in higher education institutions
(HEI): The case of Kosovo. IFAC-PapersOnLine, 52(25). pp.52-57.
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