Digital Business: Key Trends, Business Models, and Collaborations

This report discusses the importance of digital technology and its implications for managing virtual digital technology. It evaluates new and rising digital business models and the effect of new merged relationships and strategic alliances through digital technology. Moreover, the usage of e-commerce principles in the organization is also mentioned.

Digital business

Table of Contents
INTRODUCTION...........................................................................................................................3
Sum up of key trends and benefits of digital technology:......................................................3
Evaluation of new and rising digital business organization model........................................5
The effect of new collaborative relations and collaborations by digital technology..............7
How e-commerce principles could be utilised by organisation..............................................8
CONCLUSION..............................................................................................................................10
REFERENCE.................................................................................................................................11

INTRODUCTION
Digital business is the initiation of new enterprise designs by blurring the digital and
physical worlds. They use automation to create fresh value in business models, consumer
occurrence and the interior capabilities which supports its central operations. It concentrates on
how technology enables organisations for creating new worth and experience that separate firms
and offer them with competitory advantage over rivals. In this report Tesco is considered , which
is a multinational groceries and retailer company established in 1919 by Jack Cohen in United
Kingdom. They are specialized in providing many products from different industries such
clothing, financial, software and so on. In this report, key importance of digital technology and
implication for managing virtual digital technology is discussed. Along with this, evaluation of
new and rising digital business models in context of important organizational issues and the
effect of new merged relationships and strategic alliances through digital technology. Moreover,
the usage of e-commerce principle in the organisation is also mentioned.
Sum up of key trends and benefits of digital technology:
Important trends of digital technology are mentioned below:
Artificial intelligence: It is a latest technology trends as it is utilised to analyse
interactions for identifying underlying connections and insights. They are also known for its
superiority in image and speech recognition, navigation applications, ride sharing applications
and so on. AR switches the shopping experience in particular industry such as fashion and house
décor as the consumer could get better experience for the product without seeing it in person
(Audretsch and et. al., 2019).
Machine learning: It is a subset of AI that is deployed in all types of industries,
developing great demand of skilled professionals. It is a technique of data analysis which
automatically does analytical model building. As it is a sub part of artificial intelligence based on
the idea which system could understand from data, identify patterns and make selection with
minimum human intervention.
Robotic process automation (RPA): It is the utilisation of software to automate processes
such as transactions, interpreting applications, managing data and also responding to emails. It

automates repetitive tasks that individuals used to do. Robotic process automation streamlines
workflows that increases the profitability of the firms, responsive and flexible (Bronson, 2019).
This elevates employee satisfaction, engagement and productivity by eliminating dull activities
from homefrom their working. By using RPA, the organisation provides a customer support and
send the live updates to consumers. This makes the customer support more quick and convenient.
Delivery drone: It is an aerial machine which helps in transportation of goods. Many
organisations have an intent to initialize commercial operations. Tesco is doing two minute
delivery drone trial for launching into a much larger location (Tesco is expanding its 2-minute
drone delivery trial, 2021).
Benefits of digital technology
Social connectivity: Digital technology assists in staying in contact with family, friends
and ork from the ease of the home even if the person is in another region. They could
communicate by words, videos, audios and so on. Regarding this, various applications, websites
has been developed to aid users to socialize.
Communication speeds: Through internet, speeds have increased exponentially which
allows the transfer of large pack of data on the internet and making it doable to stream audio and
video , sending of large data files and accessibility of data virtually across the globe (de Rezende
Francisco and et. al., 2017).
Versatile working: The nature of work has been totally changed by digital technology.
Elevated connectivity depicts that many infrom homedividuals have the opportunities to work
from their homes.
Information storage: Digital technology allows storage of huge amount of data in
compact spaces. A lot of media such as contact information, photo, audio, videos and documents
could be stored on small devices. Along with this, the data could also be kept online, which can
be accessed from anywhere in the world who has an internet access.(DeStefano, De Backer, and
Moussiegt, 2017).
Implications for managing virtual business
Poor communication: There are many digital tools that assists remote group of
individuals to stay connected but these instruments could have a problem of personalisation of
face to face interaction. Communication through writing which includes emails and text
messages, they lack the body language, tone and other subtle non-verbal cues which employees

receives from peer to peer interaction, elevating the possibility of misinterpretation. The
individuals might be more reserves on digital channel and less chances of participating in
meeting of working from home
Delegation issues: Failure in communication creates confusion staff roles and
responsibilities. The leader should delegate the assignments avoiding the confusion and
misinterpretation. Clearing confusion of their work responsibilities and when the people in the
team feels that they are at risk. They should also make sure to avoid the temptation to
micromanaging the teams, knowing when to take a hand off approach and trusting their
colleagues. They must scale the need to set clear-cut and concise expectations and trust they they
will be met. (El-Khoury, 2017).
Work ethic differences: Evidence conclude that some individual works harder at
workplace because they are with people. If an employee perceives that co-worker are not putting
significant effort on them, it could lead to not trusting them, this could lead to disturbance of
individuals in team and derailing projects. Leaders should be alert in assessing team worker's
piece of work and offering current feedbacks to address issues.
Lack of personal connection: Remote workers could frequently feel isolated and this
could create a harmful effects on team unity. Lack of personal contact might lead to lowering
team cohesion and lack of reputation among people who are in team thus making it hard to copy
in a virtual setting.
Evaluation of new and rising digital business organization model
Few of emerging digital business model are mentioned below:
Business to business (B2B): In B2B business mode, the organisation sells its
commodities directly to another business. Wholesale e-commerce comes under the category of
B2B model. This could be separated into two main models such as vertical and horizontal. The
vertical B2B model includes manufacturing firms and is characterized by upstream and
downstream. Downstream model means a manufacturer creates business relationship with parts
while upstream B2B model is the opposite of vertical. The upstream model means when parts of
forms a relationship with manufacturer (Erl and Stoffers, 2021).
Horizontal B2B model includes services and products but do not include parts and is utilised by
the firm in different ways.

Business to customers (B2C): In business to customers, the organisation market their
services or products straightaway to the end user. This is one of the most widely used digital
business model. This model relies on having a platform which could be adjust quickly as well as
adapt to new customer needs without causing delay in services. Tesco is using business to
customer model as they offer customers with products in easily navigable platform. The
organisation engages with its customers using various kinds of social media channels by live
interaction with food and health experts. They have around 16 social media accounts for Tesco
club cards, social offers, food, jobs and wins, Tesco actively responds to each and every
consumer's enquiry (Successful B2C Marketing Campaigns, 2016).
Business to government (B2G): This happens when an organisation market their product
and services straight off to government agencies and these agencies could be local, state, federal
agency or county. E-commerce organisations could bid on government contracts. For example, a
local government agency could make an order directly from e-commerce firm for repairing of a
piece of equipment.
Business to business to consumer (B2B2C): It is a collection of business to business and
business to consumer. It is a position where an organisation sells commodities to another
organisation which are then sold to consumers (Geissinger and and et. al., 2019). For illustration,
when a wholesale distributor sells commodities to retail stores that then sells the product to end
user. This model comprises of three parts which is business, an intermediary and end user.
There are various business issues which e-commerce site of organisation could face. One
of the major issue is cyber security and ethics in which could harm the organisation. Under this,
there are different types of issues which are mentioned below:
Financial fraud: This is one of the common issue that people faces and the two
common frauds are to target the e-commerce such as credit card and fake returns. This kind of
fraud happens when the criminal steals the credit card and then uses it to make transactions on e-
commerce website. Another fraud is fake returns where unauthorised transactions are made in
greed of false returns.
Phishing: Phishing is a type of cybercrime which has an aim for stealing user's
confidential data such as login and passwords. This is done with the help of mass media
campaigns which runs on behalf of popular brand and personal messages in social networking
sites (Khanchel 2019).

Spam: There are many online spammer which send lots of letters to obtain private
content. Also, the comment section of blog is open for hackers to see the details. This could
harm the speed of site, security and also to customers as well.
Bots: Bots are created to drag websites for the data of their pricing and inventory .
Cybercriminals use it for changing price of online stores and also to store the best marketing
stock in shopping cards which results in decreasing of sales and income.
Trojan horses: Malware is a software which a customer can download as a legal
software. This program collects data about debit or credit cards, transfer the details to hacker and
to crash user's computer. This software can easily get any sensitive data easily and could also
create impact on the website.
Cross-site scripting: It is a security vulnerability which comes in the form of a
piece of web browser code script (HTML). When the attacked user opens the browser and the
website, the malicious script starts running and get approach to the variety of user’s sensitive
data which must be protected (Kucirkova, 2017).
The effect of new collaborative relations and collaborations by digital technology
Alliance and partnerships are key staple in business strategies for firm. Collaborating
with another firm has the capacity to make digital offering powerful and help in increasing the
growth. It is one of the greatest mode for organisations to distinguish themselves and stay
preferable of its customers by evaluating how their needs and demand might change in the
future.
Tesco have a relation with world-wide digital knowledge management provider Yext to
make sure the constancy in understanding about their brand across the leading maps,
applications and search engines that their consumers use. Using the Yext Knowledge Engine,
Tesco would be capable to modify stored data across the web in real time such as from addresses
to contact numbers, to hours, to number of commodities sold-out and many more so that
consumers finding online would always brainstorm the right information no matter where they
look. The Yext Knowledge Engine is a cloud-based platform for businesses to tackle some
general facts about its brand which shows on Google, Facebook, Yelp and many other online
sources.
As partnering with Tesco, Yext Knowledge Engine would support more than 4000 Tesco
locations which includes supermarkets, pharmacies, opticians, phone shops and cafes in the UK

and the Republic of Ireland (Tesco Partners with Yext to handle digital knowledge for over 4,000
Locations, 2017).
The impact of new collaborative relationship and strategic alliance could be both positive
and negative which are mentioned below:
Positive impact
Organisational advantage: Collaborative and strategic alliance would provide necessary
skills an obtain certain capabilities from the strategic partner. These partner might also assists in
enhancing the productive capacity, offer distribution systems or expanding supply chain
(Martens and et. al., 2018). They may also provide goods and services which complements the
commodities organisation provide this developing synergy.
Economic advantage: The selected organisation has already selling products as reduced
costs and they could distribute into the members of alliance. The firm could also get considerable
economies of scale in an association as productivity volume could elevate, causing cost per unit
to decrease.
Gives right to greater level of innovation: consumers always looks for good worth and
they would balance the quality of skilfulness with the cost they are mandatory to do regular
payment. When collaborative with other organisation, the resources are able to go further that an
individual is developing resources on their own and would create more value (Meier, 2020).
Negative impact
Creates conflicts in ownership claims: When two organisation collaborates together for
bringing to new product or service into certain marketplace, sometimes it creates battle in
context to all those who is having the right on product, manufacturing site or copyright and
trademarks that are included.
Lead to discrepancies of interpretation: When a statement is doubtful and it is stroked
out, then it leaves every person to understand what the words depicts when the time comes to
apply the strategy. That could create many efforts in what all organisation consider is relevant to
them. This could lead to conflict over how long the business is intended to last.
Cause delays in implementations: There is problem of execution if they are not able to
set up their services effectively. An open, genuine lines of connection is necessary in a global
strategic alliance to make sure that this issue does not occur. If delays occur, this might allow
rival organisation or strategic partnerships to gain competitive advantage.

How e-commerce principles could be utilised by organisation
E-commerce principles
First Impressions: In e-commerce website design, consumers are needed to be pleased
by how it looks and functions as it is the very first aspect which anyone notices. Users would
have a negative impression of organisation if the website looks unattractive or outdated and this
may cause them to go to a rival’s page (Ponsignon and et, al., 2019). Tesco could make sure to
develop their website in such as manner that captivate user's attention. They could attach
captivating pictures, text, logo, designs for creating their site
Information: The way website is designed would identify the amount, quality and what
type of information consumer would receive. The decision to buy commodities depends on the
information a consumer could get about it on website. Presentation of this information matters a
lot for Tesco.
Customer Service Impression: The website offers individuals an impression of how they
could be treated just by taking a glance at the website. If Tesco's website is appealing, modern
and inviting, individuals would get the impression which business is up to date and welcoming.
Making site mobile friendly: The selected organisation could make sure that they are
able to develop their website in such a way that it is mobile-friendly. The site which runs on
browser is different from site which operates on mobile (Saragih and Harahap, 2020). The
organisation need to develop mobile-friendly site so that user could easily access on their mobile
device.
Improve page loading speed: Slow page loading speed is one of the biggest contributive
component in poor tract bounce rates. Now a days, persons who run online stores have very less
patience and would tend leave the site if they are enforced to stop. The site could be optimized
by reducing image file sizes, using browser caching and reducing redirects. These could aid in
making site burden fast.
Make the shopping process easy: This is vital to not to provide customer explanation to
leave site and not finalize their purchase. The organisation should be sure that they develop the
site in such a way that user could easily see the 'Buy' and 'Checkout' button to purchase their
product and make payment easily.
Make payment easy: This is essential to make payment procedure as easy as feasible and
not give customer a reason for not completing their purchase. The organisation have to make

sure that they have added all types of payment method so that customers could pay as per their
choice. This is also the best idea to clearly define the transportation costs and returns policy. All
these elements would assists in increasing the customer’s belief and increases interpretation.
Use email communication: Email is best for communicating to consumers. Tesco could
easily communicate them for sales or the let going of new products. It is also a strong instrument
in re-engaging with consumers who have rejected their carts. The firm could also make belief in
brand by quickly emailing receipts and transferring updates.
Using high quality photos and videos: Optical content on website could be utilised to
transfer information about the product and also strengthen brand identification. The large number
of shoppers depend on pictures and video recording of products to aid them in making their
judgement (Semuel and Wijaya, 2017)(Telegescu, 2018).
Drive sales with a blog: Blogging is a best mode of increasing sales. It provides an
opportunity to further give details about product and make customers more familiar about this.
This would help customer in knowing about the product more and with this, customers can easily
do transaction.
Build trust with an about section: The organisation could build a stable relations with
consumers by providing them genuine and clear data about their brand name and enterprise. In
the 'About' area on site, Tesco can provide data about how the commodity is made, who makes it
and other information that firm sense is applicable. Building this relation give them an
opportunity to turn a consumer into a returning customer.
CONCLUSION
From the above discussion, it can be evaluated that digital business concern provides
organisations and individuals fresh ways to link, cooperate, regulate business and close gaps in
the middle of people. This creates impact on the basis of business practicality and decides the
mode organisation is managed presently. This allows organisation to engage their customers by
creating disruptive business models, creating go-to-market approach and envisioning and
building innovative products, services and experiences. In this report, it includes the key trends
of digital technology, their advantages and show for managing realistic business. It also includes
fresh and rising digital business model, effect of new collaborative relations and strategical
connections by digital technology and rule of e-commerce which can be utilised by firm.

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