Digital Business: Key Trends, Organisational Models, Collaborative Relationships, and Impact of Cryptocurrency on Businesses

This report discusses the impact of digital technology on managing virtual business, evaluating new digital organisational models in the context of cyber security and ethics, impact of new collaborative relationships and strategic alliances through digital technology, and the impact of cryptocurrency on businesses.

Digital Business

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Give an overview on the key trends and benefits of digital technology and implications
in managing virtual business within the business environment.......................................3
Evaluating new digital organisational models in the context of the key issues of the
business such as cyber security and ethics.........................................................................5
Evaluating the impact of new collaborative relationships and strategic alliances through
digital technology..................................................................................................................6
Critically discuss the impact of crypto currency such as Bitcoin (₿) and others on
businesses. What do you think of El Salvador’s legal tender of adoption ₿ in early
September 2021?...................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
Books and Journals:..............................................................................................................11
Online:..................................................................................................................................11

INTRODUCTION
Digital business may be defined as a process in which digital technology is apply by the
management of the firm within their business not only for recreate the organisational model but
also for the better customer experience(Senyo, Liu and Effah, 2019). The following report is
based on the Amazon company which is a well known multinational online brand of United
Kingdom. The respective company company posses the 4th highest ranking site within the UK
and 42nd all across the globe. The organisation started its online business in 1998. The following
report is going to discuss about the key trends and the benefits of the digital technology in
respect to the company. This report also focus on the implication in managing the virtual
organisation in the dynamic international environment. Afterwords, this report discuss about the
new digital business model for ethics and cyber security and impact of new collaborative
relationship and strategic alliance on digital technology in respect to the chosen company. In the
end, a discussion has been done on the impact of crypto currency on organisation.
TASK
Give an overview on the key trends and benefits of digital technology and implications in
managing virtual business within the business environment
Key trends of digital technology-
In the today's world, digital technology lays a very important role for the different types
of organisation. The advancement in the digital technology is done in a very rapid manner. It is
very important for the management of the organisation to stay focus on the latest technology and
be updated always. This assist them in operating their business function in a very effective
manner. Their are different types of latest key trends of the digital technology which assist the
Amazon in managing their virtual business proper manner. The key trends has been discussed
below: -
 Artificial Intelligence (AI) and Machine Learning- artificial intelligence is becoming
the latest trend in the global business environment (Wirtz, 2019). This is the most usable
technology all across the globe. This digital technology is used by the management in
identifying the underlying insights and connections. This technology assist the Amazon
in predicting the demand of their offerings in proper manner that allow the management
to take better decision. Along with this, behaviour of the customer is also detect with the

help of this technology by examining their data in the real time. Through this revenue
and customer experience has been improved which assist in managing the virtual
business in international business environment.
 Robotic Process Automation (RPA)- this trend is used by the organisation in
automating their different business process like transaction processing, interpretating the
applications, automatic reply of mails and many more. This digital technology assist the
Amazon company in minimize the mistake or repetition of the task through which
management operate their business smoothly in proper manner.
 Quantum Computing- this also being considered as the most effectual trend in the
digital technology. With the help of this trend the organisation are able to monitor,
analyse the query in better manner. By using this technology the management of
respective firm easily find the applications which are related to banking and finance and
also detect the fraud that help in managing the business in global market in smooth way.
 Block-chain- this is being considered as the most emerging trend in the development of
the digital technology. Security is offer by the this trend to the user as this prevent them
form the negative impact of the cryptocurrencies (Park and Mithas, 2020). If this
technology is utilize by the Amazon then this provide total security to their important
data for misuse and fraud. By which they can manage their virtual business in the
international business environment.
Advantages of digital technology: -
Different types of advantages is enjoy by the management of the companies by adopting
latest technology within the business management. These latest digital technology assist the
organisation in achieving the successful position in the global market. In relation to the Amazon
the advantages which are enjoy by them has been discussed below: -
 Increased efficiency and productivity: -with the effective use of digital technology
within the business, the process as well as operation of the firm is getting speed up. This
assist the organisation in improving their productivity in order to achieve the goals and
objectives. This enable the management of the respective firm to adopt the business

intelligence and data analytics which helps in collecting and analysing the data in
effective and fast manner.
 Better resource management- with use of digital technology the management can
effectively replace the worker services with the latest IT methods (Orji, 2019). By using
this technology important can be flow in all the department in a very effective manner. In
relation to the Amazon, by using latest digital technology the management can manage
their all resources in proper manner a which assist them in attaining successful position in
the international business environment.
 More resiliency- by using the latest digital technology within the business the
management can effectively adopts the changes in a very fast manner. This result in
making their operations faster and productive. The management of the Amazon can
develop the resilient environment by using the technology in the business. Through this
they can achieve a successful growth in the international market.
 Improved customer engagements: -if company wants to develop a good image in the
market then they have to focus on customer engagement. With the use of latest digital
technology Amazon can effectively examine their customers data. This assist them in
making changes in their products according to their preferences which result in smooth
managing of the firm in the global business environment.
Evaluating new digital organisational models in the context of the key issues of the
business such as cyber security and ethics
It is very essential for the management of the to connect all their business operation with
the internet to do in rapid manner. But this develop a risk in front of them in different ways.
Phishing, Ransomware and unsecured devices are considered as some of the cyber frauds which
result in loss of important data (Gauthier, Bastianutti and Haggège, 2018). Ethical issues directly
impact on the standards of the business which result in affecting their position in the competitive
marketplace. Ethical issues in the digital business is totally related to the misuse of important
data of the firm. It is very important for the management of the Amazon to determines all the
cyber security issues and ethics in proper manner so that they can effectively manage their
business in the global market.

In the today's world, the development of the digital organisational model became an
important task for the business. It is very essential for them to be always innovative and advance.
By analysing the digital business model the firm can effectively overcome form the cyber
security and ethical issues. The digital business model which can be develop by the management
of the Amazon has been mentioned below: -
 Free-Model (Ad-supported Model)- this is basically a free business model which are
only used by the two well known companies all across the globe. The motive of this
model is to provide free services to the user so that they purchase the product. If this
business model is adopt by the management of Amazon then they have to offer free
services to their consumer for making the purchase of the item.
 Freemium model-this is the most commonly used business model through with user get
the free access of the basic version. Subscription must be taken by the user is they want to
use the more feature of the model (Nosova and et. al., 2019). If this model adopt by the
management of the respective firm then they have to offer basic services in free and so
that they make the purchase which result in access of subscription.
 On-demand model- in Amazon this model is used which assist the user to user to use the
right services and for limited time period. This not only assist the company in
maximizing their profit but also helps them in overcome from the cyber attacks.
Evaluating the impact of new collaborative relationships and strategic alliances through
digital technology
Strategic alliances and new collaborative relationships is basically an agreement between
the two or more firms in order to attain common objectives. In this agreement they decided to
share their resources in order to achieve the set mutual goals. This is being considered as the
most common method which are utilized by the organisation in order to expand their business at
the international level in proper manner. Due to the advancement in the digital technology,
company can easily make the partnership with the other company in order to expand. In relation
to the Amazon the advantages of utilizing the digital technology in strategic alliances has been
discussed below: -

 Easy to access local distributor and company of another country: - if the
management of the company wants to expand their business then it is very important for
them to get the information about the local distributor. This assist them in trading their
product in proper manner. Amazon is a well known brand in all across the globe and
they provide their services by using online method. By using the latest technology the
company can effective make the partnership agreement with the local vendor due to
which they can attain a potential growth in the international market.
 Opportunity to reach new market- Strategic Alliances is the most effectual method
which can be used by the organisation in order to move their firm in the international
market (MEDVEDEVA, 2019). With the help of digital technology the company can
effectively reach to the new market which result in growing their business. If effective
digital technology is used by the management of the Amazon then they can easily enter
into the foreign market and increases their customer base.
 Brand Awareness- the combination of digital technology and strategic alliance assist the
organisation in spreading the good image of the brand all across the globe. Partnership
with the local vendor of the another country develops different types of opportunities for
the company like this assist them in increasing their market base, increase in the revenue
and sales and many more. As Amazon is a most popular E-commerce brand who provide
their services in almost all across the globe. This is the reason behind becoming the top
brand(Jabłoński and Jabłoński, 2020).
 Access to new customer base: - the most important reason behind using the strategic
alliance by the organisation is to enter into the new market and increase their customer
base. If latest digital technology is used by the organisation then this make them more
creative and new methods can be developed by them which assist in increasing their
customer base or attract the potential customers. The management of the Amazon can
increase their customer base by using Strategic Alliance which result in increasing their
sales and profit.
 Increased competitive advantages- an opportunity has been offer to the organisation if
strategic alliances has been used by them. This not only help them in enter into the new
market but also helps them in utilizing their all resources at the optimum level. Digital

business is being considered as the latest trend in the modern world which assist the
consumer to purchase the goods form anywhere and anytime. The management of the
Amazon utilized this method in order to provide their services all across the globe in fast
manner.
 Enhanced customer experiences: - By the way of aid from the local partners of the
other states, the company can get to know more about the requirements of the targeted
customers which further helps the company in formulating and designing the products
and services as per the needs and choices of the customers (Reijnen, 2018). Similarly the
said measure will also aid Amazon UK to realize the requirements of the of their
customers so that they can make the outlining of the effective services for the purpose of
enhancing the experiences of their targeted customers.
Critically discuss the impact of crypto currency such as Bitcoin (₿) and others on
businesses. What do you think of El Salvador’s legal tender of adoption ₿ in early
September 2021?
Cryptocurrency is found to be an encrypted data string that is particularly denoted as a
unit of currency. It is organised and monitored with the help of peer to peer network which is
known as the block chain (Wątorek and et.al., 2021). It also serves as a secure ledger of
transactions such as selling, transferring and buying. It is identified that cryptocurrency is
becoming a good investment. It is found to be risky but at the same time, it has the potential to
become extremely profitable. If any individual or group of individuals want to gain direct
exposure to the demand for digital currency then cryptocurrency is found to be a good
investment. It is found that cryptocurrency is the less lucrative alternative. It is identified that
cryptocurrencies are generally decentralized which means they are not issued with the help of the
government or any other financial institutions. It can be secured and created with the help of
cryptographic algorithms. These algorithms are confirmed and maintained in the process of
mining where computers network such as application-specific integrity circuits. It includes
Bitcoin, Litecoin, ether and monero. These are the best examples of popular cryptocurrencies. It
is identified that cryptocurrencies have the power to transform the future business forever (How
Cryptocurrency Will Transform The Future Business Forever, 2021). This statement shows that
cryptocurrency is provided with a great impact on the business. It provides positive as well as
negative impacts on economies.

Bitcoins are started in 2009 and it has been very apparent for the public as it is the new
form of currency that was established itself as a popular and viable source of currency. It is
identified that cryptocurrencies provide positive as well as negative impact on businesses which
some of them are mentioned below:
 It is found that cryptocurrency provides many incentives for entrepreneurs as it makes it
easier for them to reach the international market. It becomes very easy for them to trade
in the international market (The Economic Impact of Cryptocurrency, 2021). It results in
creating a relationship and fostering trust in the market. In the last three months of 2020,
it is identified that an average of 287 thousand transactions of Bitcoin was confirmed
each day worldwide.
 It is found that crypto currency has provided new technology-based business in the
market in which many new buyers are allowed for international trade. It is identified that
an increasing number of companies that are dealing in Bitcoin and other cryptocurrencies
are found to be in unknown dangers but it is not wrong that they have a strong chance of
incentives.
 But still, there is some disadvantage in online currencies such as failure to protect buyers.
This is due to sites are using by the third party in which they are many buyers are left
scammed (Cryptocurrency has an impact on economies. That’s why some are afraid of it
– and some welcome it, 2022). This is the reason that Bitcoin is only accepted by a small
group of buyers.
 Cryptocurrency has the power to access new demographic groups. It values transparency
in the transactions which is found in one recent is study that 40% of customers who pay
are found to be new customers of the company. It is also identified that trips to currency
enable the company to access new capital and liquidity pools with the help of traditional
investments.
It is identified that El Salvador is found to be the first country which adopts a
cryptocurrency. Bitcoin is found as a legal tender in this country but this idea is found to be
highly dubious. In addition to this, this idea becomes dangerous for developing countries in
terms of economy. It is identified that Bitcoin has not been well received in this country.
Domestic residents are found to be not accepting Bitcoin and the international market become
unenthusiastic. In 2021, this country become the first one who introduced coin as a legal tender

which is found to be a pure folly idea (El Salvador’s adoption of bitcoin as legal tender is pure
folly, 2021). It includes many disadvantages in which one important disadvantage is it involves
the risk of forgetting passwords and because of that they can lose their Bitcoin. It is analysed that
half of countries population has no access to the internet so how they can manage Bitcoin and
deals in such type of cryptocurrencies. It is necessary to understand that there are many risks and
returns involved in cryptocurrency and that's why it is not good for any country to adopt
cryptocurrency as a legal tender (Amsyar and et.al., 2020). It is a digital currency that provides
many negative impacts on the business environment if they get to fails. It is necessary to
understand by each and every organisation that they need to take care of adopting
cryptocurrency.
CONCLUSION
It can be concluded from the above discussion that digital business or E-Commerce
business is becoming very important in today's time. The reason behind this is it becomes a trend
and provides many benefits when organisations are using digital technology. This report
discussed important trends and advantages of digital technology. It also discussed the
implications of managing the virtual business in a global environment. This report also discussed
some new and emerging digital business models which are playing a very important role in the
success and growth of the organisation. It is also analysed that collaborative relationships and
strategic alliances are providing a positive impact on the organisation if it is found from digital
technology. This report also discusses the impact of cryptocurrency on businesses. There are
many benefits are identified with the help of cryptocurrency organisations such as it provides
incentives for the entrepreneur.

REFERENCES
Books and Journals:
Amsyar, I., and et.al., 2020. The Challenge of Cryptocurrency in the Era of the Digital
Revolution: A Review of Systematic Literature. Aptisi Transactions on
Technopreneurship (ATT), 2(2), pp.153-159.
Wątorek, M., and et.al., 2021. Multiscale characteristics of the emerging global cryptocurrency
market. Physics Reports, 901, pp.1-82.
Online:
The Economic Impact of Cryptocurrency, 2021. [Online] Available through:
<https://globaledge.msu.edu/blog/post/57042/the-economic-impact-of-cryptocurrency>
Cryptocurrency has an impact on economies. That’s why some are afraid of it – and some
welcome it, 2022. [Online] Available through: < https://theconversation.com/cryptocurrency-has-
an-impact-on-economies-thats-why-some-are-afraid-of-it-and-some-welcome-it-175911>
How Cryptocurrency Will Transform The Future Business Forever, 2021. [Online] Available
through: <https://www.forbes.com/sites/mikeswigunski/2021/04/17/how-cryptocurrency-will-
transform-the-future-business-forever/?sh=21380cb14368>
El Salvador’s adoption of bitcoin as legal tender is pure folly, 2021. [Online] Available through:
< https://www.theguardian.com/business/2021/sep/24/el-salvador-adoption-of-bitcoin-as-legal-
tender-is-pure-folly>
Senyo, P.K., Liu, K. and Effah, J., 2019. Digital business ecosystem: Literature review and a
framework for future research. International journal of information management, 47,
pp.52-64.
Wirtz, B.W., 2019. Digital business models. Cham: Springer International Publishing.
Park, Y. and Mithas, S., 2020. Organized Complexity of Digital Business Strategy: A
Configurational Perspective. Mis Quarterly, 44(1).
Orji, C.I., 2019. Digital business transformation: towards an integrated capability framework for
digitization and business value generation. Journal of Global Business and
Technology, 15(1), pp.47-57.
Gauthier, C., Bastianutti, J. and Haggège, M., 2018. Managerial capabilities to address digital
business models: The case of digital health. Strategic Change, 27(2), pp.173-180.
Nosova, S.S., Kolodnyaya, G.V., Bondarev, S.A., Verigo, S.A. and Kudryashov, A.B., 2019.
Digital business as a driver of economic growth in Russia. Espacios, 40(24), p.11p.
MEDVEDEVA, A.M., 2019. Artificial Intelligence as a New Tool for Growth of Innovation and
Competitiveness of the Digital Business. Revista ESPACIOS, 40(35).

Jabłoński, A. and Jabłoński, M., 2020. Social Business Models in the Digital Economy. Palgrave
Macmillan.
Reijnen, C., 2018. The OMC Approach-Towards a method for digital business strategy
formulation (Master's thesis).