Digital Business: Trends, Models, Collaborative Relationships, and Crypto Currency Impact

This report discusses the definition of virtual business, key trends and advantages of digital technology, new and emerging digital business models, impact of new collaborative relationships and strategic alliances, and impact of crypto currency on digital business.

Digital business, individual
report

TABLE OF CONTENT
EXECUTIVE SUMMARY ............................................................................................................3
INTRODUCTION...........................................................................................................................4
1. Overview of key trends and advantages......................................................................................4
1.1 Definition of virtual business.................................................................................................4
1.2 Advantages of Virtual Business ............................................................................................4
1.3 Key trends in Virtual Business .............................................................................................5
1.4 Application of using digital business with advantages and key trends on organization.......6
2. New and Emerging Digital Business Model................................................................................6
2.1 Defining new and emerging digital business models ...........................................................6
2.2 Discussing on new, emerging models in context of business issues such as cyber security
and ethics.....................................................................................................................................6
2.3 Applying the new emerging business models on the organization........................................7
3. Impact of new collaborative relationship and strategic alliance by digital technology ..............8
3.1 Definition of New collaborative relationship and strategic alliances....................................8
3.2 Advantages and disadvantages .............................................................................................8
3.3 Application to the organization to use new collaborative relationship and strategic alliance
through digital technology...........................................................................................................8
4. Impact of Crypto Currency .........................................................................................................9
4.1 Defining Crypto currency with examples..............................................................................9
4.2 Impact of crypto currency on digital business.......................................................................9
4.3 Critically evaluating on Bit coin adoption by EI Salvador..................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

EXECUTIVE SUMMARY
Digital business is defined as the working that is used to apply the digital technology to
reinvent their business and the business models. The current report is based on the ASOS Plc.
Which is the British online fashion and cosmetic retailer in the market. The report will conclude
about the definition of virtual business, key trends and advantages of the digital technology.
In the second part the report is concluding about the definition of the new and emerging
digital business models and has also discussed on the new and emerging models in context of
business issues such as cyber security and ethics. These new and emerging models are applied on
the business organization to have safety regarding cyber security and ethics.
In the third part the report has described about the impact of new collaborative
relationships and strategic alliances. Further it has also described about the advantages and
disadvantages of both and its application on ASOS.
In the last part, the report has concluded about meaning of crypto currency and the impact
of crypto currency on the digital business and commenting on the Bit coin adoption by EI
Salvador.

INTRODUCTION
Digital business is defined as the working that is used to apply the digital technology to
reinvent their business and the business models. The organization using the new technology
helps them to the innovative product. By this it will help the organization to create the new value
and have the new connections among the people. This term includes both the digital brands and
the traditional players that helps in transforming the business by having the digital technologies.
The current report is based on ASOS Plc. Which is the British online fashion and cosmetic
retailer in the market. The report will outline the definition of virtual business, key trends and
advantages of the digital technology. Further this report will outline the implications of the
virtual business working in the global environment. The report will also outline the new and
emerging business models which are related to business issues. Further this report will also
describe about the impact of new collaborative relationships and strategic alliances. At last this
report will outline the impact of crypto currency on the digital business and commenting on the
Bit coin adoption by EI Salvador.
1. Overview of key trends and advantages
1.1 Definition of virtual business
The virtual business is defined as the business that are used to conduct the all or most of
the business by using the internet. This type of business may or may not physical presence or
have the office at any place. As it is the large business dealing the various countries will have no
changes physical presence in the market (Mercer, Hennessy and Warwick, 2019). The Virtual
business used to employ the electronic means to transact the business and these are opposed to
the traditional brick and mortar business. ASOS is the virtual business that used to have the
online fashion and retail store. The organization used to sell over 850 brands and these are very
well-known for having the range of clothing and the cosmetics accessories. The organization
used to facilitate the consumer-to-consumer and business-to-consumer selling.
1.2 Advantages of Virtual Business
Social connectivity: By using the digital technology it makes easy for the organization in
touch with the large number of people in the global market. ASOS Plc. uses the websites in order
to facilitate the consumer to consumer or business to consumer so this helps the business a lot to
have social connectivity. By having the digital technology it helps the organization to know
about the changes and the changing needs of the customers in the market.

Helps in Digital working: The nature of the working of the online business has changed
by having the digital technology (Hanelt and et.al., 2021). Increase in the connectivity options
makes the organization to have more options in order to grow by having the great work in the
global market. As people in the market are now more aware about the work which helps the
organization to work by knowing about the changes in the market.
Automation process: The use of the digital technology is increasing and organization are
becoming smarter to by using the new and innovative websites and machines. The cited
organization can use the new and innovative machines t have the faster products as it is dealing
in the 850 brands. This will help the organization to great working by having new machines
which makes the work easier.
Large stores at various places: Digital technology helps the organization to have the
massive storage of the information in the small spaces. The company can open its online stores
in the various countries which helps them to save the cost of opening of stores and selling the
products by suing the websites (Manokha, 2020). This will increase the productivity and
profitability of the company by having the large number of selling.
1.3 Key trends in Virtual Business
Artificial intelligence
The AI has gained and achieved the lots of speculation in the previous year which causes
difficulties. But now in the current era it is one of the new and innovative trends in the digital
technology (Anthony Jnr, 2021). Artificial Intelligence helps the organization for its superiority
in the image, navigation apps, ride sharing apps, smartphone personal assistants, etc. By using
this it will help the organization to analyse the interactions and also to determine the underlying
connections in the market.
Robotic process Automation
This is the another very famous technology that is used in the automating jobs. This is the
use of the software to the automate business process which includes interpreting applications,
processing transactions, dealing with data, etc. The RPA use to offers the career opportunities
which includes developer, project manager, business analyst and many more. This will help the
organization to provide services to people (Whitelaw and et.al., 2020).

1.4 Application of using digital business with advantages and key trends on organization
The cited organization can continue working as the online fashion and cosmetic retailer
which helps them to have the great market share. The advantages that the company will get by
working in the digital market is having the social connectivity in the market. This will help the
organization to work by using the digital technology or by having the automation process (Ting
and et.al.,2020). By this it will increase the productivity of working and selling the more brands
by using the websites.
As there are the key trends in the digital technology such as Artificial Intelligence,
Robotic process automation which makes the company to produce the goods at the faster rate. As
these will also help the company to provide the career opportunities to the people in the market
such as for developer, project manager, analyst etc.
2. New and Emerging Digital Business Model
2.1 Defining new and emerging digital business models
The digital business model is defined as the model that used to leverage the digital
technologies that helps the organization to improve the several aspects related to the digital
marketing. The new and digital business are the models that is used to helps in enhancing the
value and proposition. It helps the company to know about the developing products, finding the
clients and creating and delivering the value to make profit (Vargo and et.al., 2021). There are
various business models that can be used by the organization such as e-commerce model,
marketplace model, on- demand model, etc. This model will help the business on order to have
the cybersecurity and ethics.
2.2 Discussing on new, emerging models in context of business issues such as cyber security and
ethics
The new and emerging business models that helps the organization to have the cyber
security and ethics which are as described below:
1. E- commerce model: This refers to the business models that allows the company
and individuals to have bought and sell the goods and services by using the
internet. This digital business model used to describe about the four segments that
can be conducted over the computers, tablets and by using the smart devices
(Zelizer, 2019). This model used to provide the security that is related to the cyber
security and ethics. The cybersecurity is the system which used to have the

control to protect the systems, networks and data from cyber attacks. This will
make the proper code of conduct by reducing the risk of cyber attacks and helps
in protect against the exploitation of network and technologies.
2. Ecosystem Model: Digital ecosystem is the one of the most complex model but
with this it is the most powerful model for digital business. The organizations like
Amazon, Apple, Tesla, etc. are leveraging the customer with the different services
by using the different platforms (Senyo, Liu and Effah, 2019). By using this
model the organization can have the knowledge and data that helps them to
increase the sell by having the existing customers and attract the new customers.
By this it helps the business to have the security against the cybersecurity and also
related to the ethics.
2.3 Applying the new emerging business models on the organization
The new business model can be applied by the organization that helps them to describe
about the current issues that are faced by the business leaders in order to have the digitalization.
ASOS can use the e-commerce business model and the ecosystem model which helps them to
protect by having the business issues related to the cyber security and ethics in the organization.
1. E- commerce model: In this model, it allows the company and individual to buy
and sell the goods and services via internet. By having the proper selling and
buying the products it will protect the company to have the safety related to the
issues that are cybersecurity and ethics. This will make the proper code of conduct
and regulations related to trading that will help them to reduce the risk of cyber
attacks and helps in protect against the exploitation of network and technologies.
2. Ecosystem Model: This is one of the complex model but the most powerful mode
in the new and emerging digital business. This will helps the organization to have
the knowledge and data that helps them to increase in the sales by attracting the
new customers. If the company use this it will help the company to have the cyber
security and ethics in the business working.

3. Impact of new collaborative relationship and strategic alliance by digital
technology
3.1 Definition of New collaborative relationship and strategic alliances
Collaboration relation happens when the two or more people used to work together in the
same order in order attain the same goals and objectives. The digital collaboration is the process
of collaborating and making the work done by using the digital technology and the devices
(Verhoef and Bijmolt, 2019). This includes the apps tools, processes, procedures, software and
the entire new technique of doing the work.
A strategic alliance is the process of having the arrangement between the two companies
in order to undertake the mutual beneficial tasks and projects. This agreement is the less hard and
complex process in which the two organization used to pool its resources in order to create the
separate organization (Rangaswamy and et.al.,2020). By having the strategic alliance through
digital technology helps the organization to improve its business performance by creating the
new products or reimagine the current process.
3.2 Advantages and disadvantages
Advantages and disadvantage of new collaborative relationship
Advantages Disadvantages
Improves Team Interactions Creates frustration and lack of trust.
Quick Information access Personal contact is reduced
Removing Organizational Silos Leads to confusion
Advantages and disadvantage of strategic alliances
Advantages Disadvantages
Helps in aligning and setting the goals Fear of market insulation by having local
partners (Bican and Brem, 2020).
Helps in analysing and tracking Creates the ineffective communication.
3.3 Application to the organization to use new collaborative relationship and strategic alliance
through digital technology
The impacts of new collaborative relationship through digital technology are

Improves Interactions in team: The new digital collaboration play the crucial role in
improving the team interactions by having the growth of the team members relations. By this it
makes the cited organization to bring smoother workflow for maintaining the digital
collaboration and helps the team members to have real and meaningful interactions (Wirtz,
2019).
Quick Information access: Due to the spending of the organization the most important
work of the digital business of ASOS. It helps organization to have the information of the
Business to business and customers relationships (Cui, Yang and Vertinsky, 2018).
The impacts of strategic alliance through digital technology are:
Aligning and helps in setting goals: The main factor of this is to make the partner more
reliable and have the good strategic alliances. The aim of this is to make the businesses
considered the factors that used to influence teamwork. By this it will increase the productivity
between two different business that is able to work by using digital technology.
Helps in analysing and tracking: The successful alliance will work very effectively if
the organization decide not to work on the opportunities but also work on the continuous process.
By using the new and innovative technology helps the organization in recognition of the new
areas. By this the creation of the new method will help the company to have new strategies. For
this business the creation of tracking method is helpful to provide the business new strategies.
4. Impact of Crypto Currency
4.1 Defining Crypto currency with examples
Crypto currency is the encrypted data string that used to denote the units of the currency.
This method is organized and monitored by having the peer- to peer network that is commonly
known as blockchain (Elia, Petruzzelli and Piscitello, 2019). The crypto currencies are created by
using the crypto graphic algorithms that are maintained and confirmed in the procedures called
mining. This is the process where the network of computers are there and validates the action.
The crypto currencies are decentralized which means that they are not regulated and issued by
the government or by any other financial institutions. Some examples of the cryptocurrency are
Bitcoin, Litecoin, Bitcoin cash, Zcash, Ethereum, etc.

4.2 Impact of crypto currency on digital business
There is the great advantage of having the cryptocurrency in the digital market by having
the digital business (Honak, 2021). The impact of cryptocurrency on the digital business are as
follows:
1. Easy transactions: The online marketing is facilitated by using the e- commerce
like ASOS that make money by charging the money from both that is from the
seller and buyers (O'Dwyer and Gilmore, 2018). But this used to makes the
completing the digital transactions time raking and complex.
2. Basic attention Tokens: This is the another impact of the crypto currency that
helps the virtual business to transform to have the good digital marketing. This is
the type of digital advertising the token that used to serve as an exchange where
the publishers and users to have the good communication in the decentralized
manner.
3. It facilitates international trade: The inter- country financial transactions are
somehow expensive and complication. But if the organization used to adopt the e-
commerce transactions it will help them to have the easy international trade. As
these are not regulated by the government so the organization not have to face
difficulty in trading.
4. Companies will buy data directly from customers: As virtual business is
dependent on the customers than the data is extracted the majority from the social
media (Dudin, Shkodinskii and Usmanov, 2021). By having the advertisements, it
will help the organization to run the adverts that will need to purchase needed
information directly from the customers.
4.3 Critically evaluating on Bit coin adoption by EI Salvador
The El Salvador's legal tender adoption was done on the 7th September. This is the first
country in order to adopt the crypto currency as a legal tender. This adaptation led to the protest
done by the citizens of the country which used to causes the technological glitches. Thee was the
dip in the crypto currency clouded in the roll-out. By having the high expected benefits of
macroeconomic stability the out weight the country has the made the loss of economic
sovereignty, monetary independence and face value of the banknotes. The purchasing power in
the cited country used to fell at the increasing rate (Park and Mithas, 2020). This use to causes

the negative result in the economy of the country. The country's economy has faces the downfall
of approx 20% gross domestic product in each year. There are some valid reasons for which
crypto currency should not be taken as a legal tender in a country which are described as below:
Volatility: There was the great changes used to take place in the value of these crypto
currencies is extremely volatile for the economy. This used to have varied in the prices of the
products and by these demand affected in the country's economy. So, this causes the potential
loss for the investors as well as increase in the breach of the security.
No government regulations and restrictions : The lack of restrictions and regulations
of the government has make the negative impact on the country's crypto currency. So, this is the
another factor that impacts the monetary regulations of the central banks which impacts the
economy of the country.
Irreversible amount : By having the unfavourable disadvantage of having the lack of
security done through Bitcoin and irreversible or the final amount have to be considered as the
loss of Bitcoin users (Kane, 2019). This used to cost the high loss for the investors who have
investment in the Bitcoins.
Limited Use : The popularity of this currency increased very rapidly but the use of this
currency for daily transactions was not witnessed anywhere in the world. So by this it also puts
the limit to the expenses that can be done by the users by unlinking the credit and debit cards.
CONCLUSION
From the above report it is concluded about the meaning of virtual business, various key
trends in digital business and advantages of the digital technology on the organization. Further
this report has evaluated about the implications of the virtual business working in the global
environment. The report has also described about the new and emerging business models which
are related to business issues. Furthermore, this report has evaluated on the impact of new
collaborative relationships and strategic alliances. At last this report has also concluded about the
impact of crypto currency on the digital business and commenting on the Bit coin adoption by EI
Salvador.

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