Digital Business: Trends, Models, and Impact on Marks and Spencer

This report discusses the concept and advantages of digital business, key trends, and emerging business models. It also covers the impact of collaborative relationships, strategic alliances, and cryptocurrency on Marks and Spencer's digital business.

MARKS AND SPENCER

Abstract
The company that was chosen for the digital businesses was Marks and Spencer and the report
has covered the the concept and advantages of digital business and various key trends that the
company uses in order to effectively operate its business. The report has covered about various
digital business models which helps in making various improvements and also helps in
increasing the efficiency of the company and also increase the brand presence of the company in
online platforms. The report has also covered various advantage and disadvantage of the
collaborative and strategic alliance.

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Overview of key trends and advantages of digital technology and implications for managing
virtual business in the global environment..................................................................................3
New and Emerging Digital Business Models..............................................................................5
Impact of new collaborative relationship and strategic alliance through digital technology .....6
Impact of crypto currency such as Bitcoin (₿) and others on businesses. .................................8
Crypto Currency...........................................................................................................................8
Impact of Cryptocurrency on Digital Business. ..........................................................................8
Conclusion.....................................................................................................................................10

INTRODUCTION
Digital business is defined as the process of applying the technology to reinvest the
overall business model and transformation of the products and services of the company. With
the changes in the technological factors , it is mandatory fr the company to evaluate the various
technological factors and make modification in its business structure in order to build the brand
image of the company and also increase the sales of the company by innovating new products in
the market that is according to preferences and requirements of the customers. By delivering
innovative products in the market results in creating new value and also helps in connecting with
the customers requirements , experiences(Senyo, Liu, and Effah, 2019). The importance of
digital business enable the company to better engage with their customer by reinventing the ways
of communication with the customers and employees, helps in restructuring of the business
models and also helps in building innovative products according to the current demands of the
customers in the market. The present report covers the advantages of digital technology
and its concept , current trends in the digital business and its application on the organisation.
Critical evaluation of various digital business models in context of cyber security and ethics.
The report also highlights the the impact of new collaborative relationship and alliance through
the use of digital technology and impact of crypto currency and Bitcoin in the company and the
chosen organisation is Marks and Spencer.
MAIN BODY
Overview of key trends and advantages of digital technology and implications for managing
virtual business in the global environment
Digital business refers to the process of application of digital technology in the operations
of business. With the help of digital technology, the company can restructure their business
models and can make modifications in the products and services of the company according to
the reference's and requirements of the customers(Verhoef, and Bijmolt, 2019). Digital business
uses the latest technology as a tool in order to make innovation in the internal operations of the
business which helps in achieving the goals and objectives of the company by taking advantage
of the technology and transferring the business into digital. In the present time every company
has applied the used of digital technology in its business operation sin order to increase the
capacity of the productions ad also to deliver the products and services in the market according

the requirements and preferences of the customers which result in increase in the customer base
of the company.
Wit the various changes in the business environment such as internal factors ad external
factors which includes the technological factor as the scope of technology is increasing rapidly
which results in the various other alterations in the management of the company With the helps
of transferring the business into digital it has resulted in increase in the efficiency and
productivity of the business as technological factors has always resulted in driving the efficiency
of he business(Rangaswamy, and et.al, 2020.). In order to yield effective results the organization
should ensure that their system is up to date and various process which help the employees to
work smarter and with less wastage of time. In order to increases the customer base and to spread
the presence of their brand in the market, it is very necessary for the company to have strong
online presence that is they should have well designed website and use various social media
platforms in order to promote its products and services offered by the company.
Digital transformation by the business involves the use of digital technologies that enable
the company to apply and reinvent their business models or make various modification in the
existing structure which help in operating their business functions effectively(Sousa, and Rocha,
2019) .The key trends in the digital business are :
 Artificial intelligence: With the rapid changes in the technology , the companies are also
moving towards the application of various updated software that is artificial intelligence.
With the help of this, the data is collected from various sources which helps evaluating
the current performance in the market ,customers needs and requirements which help the
managers to take decisions accordingly .
 Data Democratization: It refers to the process by which the information collected from
the data can be easily accessible to the end users(Aagaard, and et.al, 2019). With the data
collected it helps in identifying the customers preferences and can be analysed by any
departments by using various approaches. With the use of effective tools results in
increase in the efficiency of the company.
With the emergence of COVID-19 on the almost all the retail stores around the world ,
Marks and Spencer introduced the wide expanded scan and pay ago app services in their stores
across the country. Currently the organization is using is applying artificial intelligence and
machine learning in order to avoid wastage of the food an the food stores of the company.

Furthermore, M&S is planning to speed up the digital transformation plans. The management of
the company is making strategies plans in order to modernise the stores of the company an also
accelerated the change in order to provide batter customer experience where the maximum
demand is online purchasing by the customers(Bouncken, and et.al, 2020) . By taking these
actions the company an effectively promote the products they offer and also considering the
current demand of the customers for providing better customer experience.
New and Emerging Digital Business Models
A business model is based on the form of creating value of the benefit of their customers
with the application of advanced technologies in their operations(Vendrell‐Herrero, and et.al,
2018). It is observed that various changes in the technology factors and preferences of the
customers , it is important for the organisation to mould itself as per the demands of the market
in order to sustain in the market. With the application of such technologies , the company can
reduces its cost and increase the capacity of production an various technological tools will helps
in reaching to the customers requirements which can be applied In their management system in
order to produce effective output and as per the demands of the customers both online and
offline(Luz Martín‐Peña, et.al, 2018). The new business model is characterised by the various
innovation which is to be made within the business and is new in the market .
If the company is moving towards digital transformation, it will result into delivering
new and innovative product in the market and also increase its online presence which is
necessary for the company in order to increase its sales and also build brand image in the market.
The business model of the company determines the interdependent activity that the organisation
undertakes in order to conduct business with their customers , partners etc. With effective
application of business model with the application of various technologies will helps the
organization to bring new products in the market and fulfilling the requirements and preferences
of the customers(Kotarba, 2018). It is observed that digital transformation starts with the
employees and if the productivity of the employees is increased in the company will result into
increase in the overall productivity of the company.
Various kinds of digital business models are : Free model, Freemium model, On- demand
model, E-commerce model, Marketplace model, Ecosystem model etc.
It has been observed that the cyber crime has increased rapidly in past many years and it
is important of the organisation to make effective digital marketing strategies in order to avoid

such activities that can hamper the business growth. It is observed that if the organisation rapidly
adopts the various digital technologies helps the company to implement new and disruptive
business models. With the various changes in the technological environment , the company also
faces various challenges related to the cybersecurity(Härting,and et.al, 2018.). Various risk are
involved in cyber attacks such a loss of data and hacking the important information of the
customers and the company which can result into loss to the company. It is important for the
company to make effective strategies in order to avoid such risk and using the effective digital
business models and technologies will help to secure the data and information of the customers .
With the help of application of latest technology and on the other hand it can also have negative
impact on the company as proper strategies are not implemented which can impact the company
and impacts its efficiency.
Business ethics refers to the appropriate use of the policies and procedure and also
implementing it in order to effectively run its operations successfully and in corporate
governance. The organization operating in any sector have to follow the ethical practices which
helps the company to build positive image in the market which reflects its market share. The
unethical practices involve the misuse of the personal information. With the adoption of various
business models , the company can restructure its business with the help of technology which
will involve more protection of the data of the company and its stakeholders which will avoid the
misuse of the information.
Marks and Spencer uses E-commerce in their business models in order to provide the
services to its customers. In 2018, the company became first brand digital chain in order to
improve the customers experience and also created various basis for further growth in the
technology . In order to increase the sales of the company , they plan to move towards digital
transformation by providing the customers with the services of intelligent virtual assistant for
better experience of the customers and also generates more revenue through sales.
Impact of new collaborative relationship and strategic alliance through digital technology
Collaboration relationship takes place when two or more people work together for
achieving the common goals. It can benefit in many ways as every person has its own views
which can benefit in achieving the goals of the company. With the helps of this process people
can communicate with each other and also listen to the opinions of the others which was not
done before in order to make the strategies which helps the company to achieve the objectives

and also helps in building coordination among the persons. When two coordinate in order to
achieve common goal there should be clear understanding of the objectives to be achieved. The
collaboration is two way process that the points should be effectively communicated as it
requires effective communication skills in order to meet the objectives of the company. Strategic
alliance refer to the arrangement between two companies in order to undertake an activity while
each retains its independence. The agreement between both the parties is less binding as
compared to the joint venture(Nasiri, and et.al, 2020). The main purpose behind strategic alliance
is to expand its business operations in new market and also focus on improving its products
line(Manfreda, and Štemberger, 2018). With the helps of this both the companies can work for
common goals which will benefit both the business.
The advantages of Collaborative relationship:
 Productivity: With the help of online collaboration, people will be aware about the tools
to be used in their business from any location. Efficiency : It has been observed that much amount of time in invested in writing emails
and with the help of these tools can eliminate a lot of work as all the communication is
done using online platforms .
Disadvantages
 Personal contact between the parties are reduced that can result into confusions.
 It is important in online collaboration that all the team members should be responsible for
their own task and are accountable to their superiors.
The advantages of strategic alliance:
 It is considered as an effective way in order to enter into new market as with the alliance
with other firm, the former company can easily reach to their customers (Siachou, and
et.al, 2021). Companies will be able to learn more abut the skills and capabilities of other companies
which will helps in achieving and securing its position n the market in the future.
Disadvantage
 In strategic alliance each company is responsible for their activities which results into
poor management.
 Difference in the opinions of the companies due to poor communication can sometimes
leads to poor decisions which can negatively impact both the companies.

In June 2018, Microsoft corporation and Marks and Spencer announced their strategic alliance
that focuses on evaluating the integration of Artificial intelligence of Microsoft into the M&S's
customer experience and its operations(Solesvik, and et.al, 2018). The main motive of this
alliance is to explore the technologies related to the artificial intelligence can be applied in the
retail sector to improve the customer experience and optimise operations. In this the team of
members who are expert in AI will with work together with the M&S Retail labs in order to
accelerate digital transformation .
Impact of crypto currency such as Bitcoin (₿) and others on businesses.
Crypto Currency
Crypto Currency is a virtual currency which has a digital system of payment. The currency does
not need verification from banks for completing the transactions, as it is based on a peer to peer
system which enables the people to send and receive the payments from anywhere in the world.
The crypto currencies are not issued by Governments or any financial institutions thus it is
decentralized thus ensuring no interference of government or manipulation by them. While
transferring the currency , advanced coding and encryption is used to store and transmit the data
of cryptocurrency to the public ledgers or wallets. It was introduced to eliminate the interference
of intermediaries in making online payments(Feinstein, and Werbach, 2021). The
cryptocurrency 's coins are generated by solving the complicated problems of mathematics with
the help of computers. This process of creating the crypto currency units is termed as mining.
Some examples of cryptocurrencies are :
Bitcoin – It is the first and the most traded currency in crypto currency.
Ripple – It is a ledger system used for tracking all the different types of transactions including
cryptocurrencies.
Litecoin – It is sane as bitcoin and it captured the market with new innovations and process
including faster payments.
Ethereum – It is a platform of blockchain which owns a cryptocurrency named as Ether (ETH).
After Bitcoin, this is the most popular cryptocurrency in the digital world.
Impact of Cryptocurrency on Digital Business.
The use of Cryptocurrencies in the business is still a topic of discussion as most of the business
allowed it as a form of payment but most of them not because of the backlashes in the

cryptocurrency. Using crypto currency for the digital business will spur awareness about new
technology and hold a position in the future market with the new digital currencies. Crypto
currencies will help the businesses in strengthening the control on the capital and manage the
risks associated with the digital investments of the digital business. It helps the digital business
in by reducing the transaction fees as compared to the other payment intermediaries which
charges up-to 4% of the transaction cost. There is both positive and negative impact of the crypto
currency on the digital business. The cryptocurrencies are highly risky and vulnerable as hackers
can steal the information and data about the business and its crypto currencies through the social
media platforms or by blocking the sites. Investment of digital businesses might be affected by
the volatile nature of the Crypto Currencies as fall in the value of bitcoin or other currencies will
lower down the value of investments thus resulting in loss for the business(Zhao, and Duncan,
2018). The digital business which are operating most of their part in India ha a negative impact
on its operations because still the cryptocurrency is not accepted widely, some people prefer the
traditional modes of payment only. Thus, using cryptocurrency may have negative impact on the
digital business due to its complex and uncertain nature.
In the present world most of the business transactions takes place or done through virtual
currency or credit type of system(Ćosić, and Čeh Časni, 2019). Cryptocurrencies refers to the
digitally created assets that stores each transactional data in the immutable distributed ledger in
the for of encryption. It is observed that in crypto current market, there in no delays and there is
a security in these markets provides guarantee through effective methods of processing time and
cost. Bitcoin can have various positive impacts on the overseas remittances that helps in creating
various options in terms of pricing and various conversion rates . Every company wants to have
strong online presence which reflects its sales and increase the customer base with the help of
advanced technologies which they sue in their operations(Holtmeier, and Sandner, 2019) .
Automation, crypto and artificial intelligence are the examples of technology and the scope of
which is increasing rapidly in the market and will increase overtime .
EL Salvador is the first country that adopted Bitcoin as legal tender after congress
approved their landmark proposal(Al-Yahyaee, and et.al, 2020). The President Nayib Bukele
assumed that Bitcoin will counter the EI Salvador low banking rate and cut the cost of sending
remittances. Such transfers are associated with the the Salvadorans that are working in US. EL
Salvador bought around 400 bitcoins worth around $20 million.

Conclusion
From the above report it can be concluded that with the various changes in the business
environment and various technological factors , it is necessary for the company to evaluate these
changes and implement strategic plans which can positively impact the operations of business. It
is important for the company apply various advanced technology which will helps in building its
brand image with the use of various social media platforms which helps in building brand image
and also helps in understanding the requirements of the customers. The report summarize the
definition and advantages of digital business which can have positive impact on the organisation
and also the trends that can be used by M&S in their business. Furthermore, various types of
digital business model is also discussed in the report and the application of the e-commerce
business model on the company is also discussed. With the help of strategic alliance, both the
company can combine their skills and knowledge and achieve the goals and objectives of the
company.

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