Digital Business: Trends, Models, Collaborative Relationships, and Cybersecurity

This report discusses the significant trends of digital technology and their advantages, emerging and advanced business models, new collaborative relationships and strategic alliances, and cybersecurity issues in digital business. The report also provides an application of these concepts to ASOS Plc, an online retailer company based in the UK.

Business

Contents
INTRODUCTION ..........................................................................................................................4
TASK 1............................................................................................................................................4
Overview of significant trends of digital technology and their advantages ................................4
1.1 Explanation of virtual business .............................................................................................4
1.2 Benefits of doing virtual business .........................................................................................4
1.3 Key trends in virtual business................................................................................................5
1.4 Application of digital business with its benefits an varied key trends for evaluating in
chosen organisation .....................................................................................................................6
TASK 2............................................................................................................................................6
Emerging and advanced business models....................................................................................6
2.1 Defining emerging and new business models .......................................................................6
2.2 Discussion of digital business in context with cyber security issues ....................................7
2.3 Application on how chosen organisation use the specific business model............................7
TASK 3............................................................................................................................................8
Defining new collaborative relationship along with strategic alliances......................................8
Analysing advantages and disadvantages of new collaborative relationship and strategic
alliances through digital technology............................................................................................8
Application on chosen business on how they use new collaborative relationships and strategic
alliances through digital technology............................................................................................9
TASK 4..........................................................................................................................................10
Defining crypto currency with the help of examples.................................................................10
Discussing the impact of crypto currency on digital businesses................................................10
Critically comment on Bit coin adoption by El Salvador..........................................................11
CONCLUSION..............................................................................................................................11
REFRENCES ................................................................................................................................12

INTRODUCTION
Digital business can be described as a concept whereby organisations use virtual
technology for creating differentiated value in their workings in order to enhance customer
experiences (Batran and Et. Al., 2017). It is beneficial for organisations as collaborative
leadership team can be made by combining business insights along with digital technology.
Through the use of digital technology, businesses can strive their goals, bring innovations and
establish their vision in a significant manner. Aim of this report is to gain valuable insights
regarding digital technologies used in business operations. Digital business is flourishing
tremendously in UK and this technological-driven environment create varied opportunities for
differential sectors. In order to better understand concept of digital business, ASOS Plc has been
taken into consideration. ASOS Plc is an UK based online retailer company majorly deals in
fashion clothing and cosmetics. This organisation was established in 2000 and has its
headquarters at England, United Kingdom.
This project report highlights on the discussion about varied key trends along with thier
advantages in an organisation. It also delves into new and advanced business models which can
be adopted through the use of digital technology. This also reflects on the influence of strategic
alliances which are done through digital technology. This project report also throws light on the
concept of crypto currency along with its benefits.
TASK 1
Overview of significant trends of digital technology and their advantages
1.1 Explanation of virtual business
Digital business can be understood as an exercise of transforming business operations into
virtual means in order to enhance customer experience and securing competitive advantage
(Chaffey, Edmundson-Bird and Hemphill, 2019). It also aid business houses in bringing some
unique or innovative product or service. For getting better experience through digital technology,
machine learning, artificial intelligence and cloud computing is used extensively.

1.2 Benefits of doing virtual business
Digital presence- It is significant for marketing professionals to increase the viability of
their organisation. For gaining digital viability, marketers uses varied tools as well as frame
differential strategies through the use of virtual channels, blogs, social networking sites and
many more. It help organisations in increasing their conversion rate as well as revenue
generation.
Better decision making- Adoption of digitalised practices helps in recording and
assimilating lot of information through cloud computing technique (Kreutzer, Neugebauerand
Pattloch, 2017). This practice further helps in taking critical decisions in an effective manner on
the basis of collected information.
Encourage innovation – Information collected through digital means forces organisational
managers to act upon them and bring innovation. Digitalisation aids in get to know varied
dynamic market trends on a timely basis and to take a proactive approach towards them.
1.3 Key trends in virtual business
Customer data platforms – It is imperative for every business house irrespective of their
size to make updated and agile connections with their customers for addressing their issues and
satisfying their desires. Customer data platforms perform the same in a strategic manner. They
analyse, regulate and store information of their customers while interacting with other devices. It
is used to regulate data of first party when they make a purchase or enter into any transaction.
Connected cloud solutions- This is a one of the flourishing trend in digital business.
Through this adoption in organisation, they can make a connected networks of varied servers or
customers which help them to gather a lot of information in their system. Although with its
varied benefits, it has certain limitations for corporations and customers (Loonam and Et. Al.,
2018). As sometime, it just violate the regulation which supposes to protect personal information
of customers. For this concern, UK government has framed a law named as General Data
Protection Legislation which compels every organisation operating there to not outsource any
personal data of their customers. There are varied cloud management software designed by
differential companies as per their convenience such as AppFormix, Wrike, IBM Orchestrator
and many more.
Machine learning- It is used by numerous companies who wish to transform their business
operations in a virtual means. It is beneficial for organisation to process huge volumes of data in

an accurate manner as well as in real time. Machine learning along with artificial intelligence
assists in integrating infrastructures and applications regarding businesses for efficient data
processing (Remane and Et. Al., 2017).
1.4 Application of digital business with its benefits an varied key trends for evaluating in chosen
organisation
In the era of digitalisation, it is imperative for every business digitally transform their services
which helps them in gaining competitive edge in market as well as brand recognition and
viability in marketplace. ASOS Plc is an e-commerce business which deals on virtual basis
around the globe. It provides numerous benefits to organisation such as reach to a large customer
base, increased in conversion rates and enhances customer experience which makes them to loyal
to brand as well as retain them for long time period (Aithal and Aithal, 2019). Managers of
ASOS Plc have implemented varied digital techniques which makes it competitive in market.
Managers of ASOS Plc uses machine learning and artificial learning for improving their
customer experience. They also use cloud computing which helps them in assimilating huge data
of varied customers. This practice enables them to make connections to their customers through
sending them personalised e-mails. ASOS Plc have also perform extensive digital marketing
through social media sites and virtual channels. This exercise helps them to inform their loyal
customers about launch of their new product line. This also assists them in attracting their
potential customers for stimulating them to make a purchase.
TASK 2
Emerging and advanced business models
2.1 Defining emerging and new business models
A new and emerging digital business model described as those model that helps in
leveraging the digital technologies in order to improve the several aspects of the business
organisation in better. As there are many kind of business models are developed within digital
technology that help company to make their business operations more innovative in order to gain
various advantages (Gupta, 2018). In context of ASOS Plc, some of the latest and emerging
digital business model that helps in enhancing their business value are described below:
Open source model- It is a licensed model and it was developed and maintained by the
developer of independent community. This refers to freemium model that provides full control

on its distribution when they developed it in their business. By the development of this model in
their business help ASOS Plc to make their distribution effective with the help of free licensing
in their software.
Free Model- This model is an quite pervasive model in digital business this makes
company to offer their service and products firstly free in the market and after it make effective
growth then the company charging higher cost to their customers in order to purchase them. This
will help ASOS Plc to increase their customer base by providing free service in first.
Freemium Model- This refers to growth and branding strategy for the company that
makes them to provide free service to the majority of people and then convert the certain people
from this majority into the paying customers for the company with the help of sales funnel or
marketing (Le Dinh, Vu and Ayayi, 2018). This will help ASOS Ltd to increase more customer
base for their products.
Subscription based model- In today's world people are living in subscription economy.
Most of the customer centered services and entertaining services are follows subscription model.
Using this model provide a loyal user base as well as a continuous stream of predictable
revenues.
2.2 Discussion of digital business in context with cyber security issues
It has been observed that cyber security issues are affecting digital business in many ways
that creates problem for the company in order to operate their business in better manner in digital
platforms. There are many kind of cyber security threats are there that affecting digital business
in many ways which includes financial frauds, phishing, spamming, malware, bots, brute force,
e-skimming, and man in the middle (Sousa and Rocha, 2019). While developing digital business
model ASOS Ltd faces many problems related to cyber security. The financial fraud not only
affected companies but the customers also as the cybercriminals stole the money from their
account digitally which also affects digital businesses. In phishing some fraudsters present the
fake copies of their websites in order to hack or trap the users which not only harm their potential
customers but also decreases their brand image in effective manner.
2.3 Application on how chosen organisation use the specific business model
As per the above discussion, it has been analysed that the management of ASOS Ltd
should freemium digital business model in their company in which they have to just offers an
limited services in free cost to their uses and then charges a premium amount for the purchase of

their advanced features. As this will helpful in making the customers pressure free as the chance
are provided to them in order to interact as well as explore the product properly without making
a purchase. This will make company to offer effective product and service in order to attract
more customers and then make them to spend in order to properly use it. This will help company
to increase the customer base for their product as well as earn more profit.
TASK 3
Defining new collaborative relationship along with strategic alliances
New collaborative relationship arise when two or more companies are ready to work
together in order to accomplish their common goals and objectives in better manner. This makes
companies to share their resources, ideas and personnels in order to gain competitive advantages.
This will make company to share their risk and profit while operating their business in effective
manner. Whereas strategic alliances is an example or type of new collaborative relationship that
help company to achieve their goals in better manner (Loonam and Parry, 2018). This refers to
an traditional method in which two or more companies are combined together in order to share
their knowledge and resources in order to work together for achieving their combined goals in
effective manner. This refers to an effective method for the companies in order to fill the gap of
knowledge and resources in their business.
Analysing advantages and disadvantages of new collaborative relationship and strategic alliances
through digital technology
New collaborative relationship and strategic alliances are defined as an agreement in
between the two and many companies in order to achieve their common goals by sharing their
resources and strengths in better manner. This method is most useful for the company when they
expanding their business in another countries in which they can make their effective growth in
international market in better manner. The technologies are developing daily which creates an
easy way for the company to make partnership with the other company in better manner. The
advantages and disadvantages of new collaborative relationship and strategic alliances with the
help of digital technology in ASOS Ltd are described below:
Advantages-
Speed up the entry into a new market- It describes that the new collaborative
relationship and strategic alliances are effective methods that help company to enter in new

market in order to gain the customer base for their products (Sousa and Wilks, 2018). The digital
technology make this more easier for the company as it helps in attracting the customers of
another market in effective manner. By the use of this ASOS Ltd can increases their market in
order to provide their product and service in their digital platform.
Enhance sales- By making partnership with another company with the help of strategic
alliances and new collaborative relationship help company to increase their sales. As these
methods conduct low risk and cost which makes profitable for the ASOS Ltd in order to operate
their business through digital technology by attracting more customers.
Learn new skills and technology- As the technology are developing regularly which
creates opportunity for the company in order to expand their business in another country in
effective manner (Steininger, 2019). By making partnership with many companies creates makes
them to learn more about skills and technology of each others which also helps in enhancing the
growth of their business. This will also help ASOS Ltd to learn new skills and technology and
make their digital strategy more effective.
Disadvantages-
Poor management of the business alliances- In strategic alliance and new cooperative
relationship both the companies are responsible for their part of business and does not take
responsibility of the other's business which create poor management in whole business. This will
affects the digital performance of ASOS Ltd while operating their business in another country.
Poor communication- As there are many chances in the companies which affects the all
over the performance because of the lack of proper communication in between the staff of each
other company. Without proper communication decision are also not make proper that results in
decrease in company's creditability and profitability. Using these methods, may affects the whole
business of ASOS Ltd which may create problems in their digital performance.
Benefits are unequal- In strategic alliances and new cooperative relationship companies
are not always get equal benefits which many creates conflicts in between them (Heavin and
Power, 2018). This makes ASOS Ltd to found difficulties in getting the equal benefits from the
other company which are providing their products in other market through digital technology
affects their business operations also.

Application on chosen business on how they use new collaborative relationships and strategic
alliances through digital technology
According to the above discussion, it has been analysed that the ASOS Ltd use new
collaborative relationship and strategic alliances when they want to enter in new market in order
to provide their product and service through their digital platforms. This helps in gaining the
more and more customers for their product as well as gain more competitive advantages. These
methods decrease their risk and cost which may incurred more while entering in another country
in order to sale their product and service in better manner. This will also helps me in knowing
about the another company skills and technology in better manner.
TASK 4
Defining crypto currency with the help of examples
Crypto currency refers to a virtual or digital currency and secured by the cryptography
that makes impossible for double spend and counterfeit. The main feature of the cryptocurrencies
is that they are not issued by the central authority of the country. It is a kind of digital asset and
based on a network as well as distributed in many computers (Vigliotti and Jones, 2020). This is
a most faster and safer method of money transfers as well as decentralised systems that does not
collapse within a single point of failure. There are many types of cryptocurrencies are available
in the market that helps in order to earn more profit while making investments on it. These
includes Bitcoin, Ethereum, Tether, Binance Coin, USD coin, etc. Bitcoin refers to the first
decentralised cryptocurrency that usage block-chain technology in order to serve effective
payments and digital transactions.
Discussing the impact of crypto currency on digital businesses
Cryptocurrencies are new and trending way of payment that help company to operate
their business effectively and efficiently. By the use of cryptocurrencies in digital business
affects the company negatively and positively. The positive and negative impacts on digital
business of ASOS Ltd are mentioned below:
Positive impacts-
It is secured and fast- Payment method in cryptocurrencies, encryption is used for the
verification of each transaction in order to make the transaction safe and secured. Within its
transaction processes as well as data transmission, advanced method coding is used for making

the safety and security of users in better manner. In the digital business of ASOS Ltd it helps in
making their each and every transactions safe and secured.
Growth of the company- The cryptocurrencies helps in providing the fastest and easiest
service to the customers which helps company to increase the growth of their business in better
manner. People are emerging on use of digital technology for their daily tasks which creates and
opportunity for ASOS Ltd to various of cryptocurrencies methods in their digital business.
Negative impacts-
It is highly volatile- Cryptocurrencies is volatile in nature because its value changes
time to time. Some times the value of cryptocurrencies are dropped which may creates loss for
the ASOS Ltd in order to operate their digital business in better manner (Aithal and Aithal,
2019).
It is not widely accepted- This system of method is not accepted by the all people
because many of them prefer traditional method for making their payment as it was more secured
from cryptocurrencies. This may also create problem ASOS Ltd in order to operate their digital
business in better manner.
Critically comment on Bit coin adoption by El Salvador
El Salvador was the first country that officially announced that it accepted Bitcoin as
their national currency through legal tender on 7 September, 2021 in all over the world. They
allows their all citizens in order to use cryptocurrencies in their daily transactions. This create the
greatest protest in the country of Latin America about the fear of instability and inflation within a
country. This creates boost in all over the world in order to use cryptocurrencies as their payment
mode.
CONCLUSION
From the above mentioned report, it has been concluded that digital business helps
companies to offers their goods and services in digital platforms in order to attract more and
more customers towards it. Digital presence, Better decision making and Encourage innovation
are the benefits of digital business that help company operate their business in digital platform in
better manner. Open source model, Free Model, Freemium Model and Subscription based model
are different types of digital business model that are available in digital market. Speed up the
entry into a new market, Enhance sales and Learn new skills and technology are advantages of

new cooperative relationship and strategic alliances whereas Poor management of the business
alliances, Poor communication and Benefits are unequal are some its disadvantages.
REFRENCES
Books & Journals:
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Campus Verlag.
Chaffey, D., Edmundson-Bird, D. and Hemphill, T., 2019. Digital business and e-commerce
management. Pearson UK.
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service innovation. International Journal of Management, Technology, and Social
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Vigliotti, M.G. and Jones, H., 2020. The executive guide to Blockchain: Using smart contracts
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