Digital Business: Key Trends, Emerging Models, and Implications for Managing Virtual Business

This report discusses the key trends and advantages of digital technology and implications for managing virtual business in the global environment. It evaluates the new and emerging digital business models along with key business issues such as cyber security and ethics. It also discusses the impact of new collaborative relationships and strategic alliances through digital technology and the impact of crypto currency on the performance of business. The chosen organisation for this report is eBay, which is an American multinational company dealing in e-commerce services through facilitating consumer-to-consumer and business-to-consumer transactions via its online website.

Digital Business
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Table of Contents
Introduction.....................................................................................................................................3
Main body .......................................................................................................................................3
Key trends and advantages of digital technology and implications for managing virtual
business in the global environment.............................................................................................3
New and emerging digital business models in the context of key business issues such as cyber
security and ethics.......................................................................................................................6
The impact of new collaborative relationships and strategic alliances through digital
technology...................................................................................................................................8
The impact of crypto currency on businesses.............................................................................9
Conclusion.....................................................................................................................................10
References.....................................................................................................................................11
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Introduction
Digital business refers to the approach of applying modern technologies and
advancements in conducting business operations. There are various technological models that are
applied through various organisations in order to cater to requirements of customers digitally.
Through using modern advancements, companies attempts to bring transformation and provides
more value to consumers by improving their experiences. The chosen organisation for this report
is eBay, which is an American multinational company dealing in e-commerce services through
facilitating consumer-to-consumer and business-to-consumer transactions via its online website.
It was established in 1995 and is headquartered in San Jose, California, United States. In this
report, concepts of digital technology and its application in business are broadly discussed in
context to the chosen corporation. It evaluates the new and emerging digital business models
along with key trends and advantages of using digital technology. It also evaluate the impact of
new collaborative relationships and strategic alliances through digital technology. In addition to
this, it also discuss the impact of crypto currency on the performance of business.
Main body
Key trends and advantages of digital technology and implications for managing virtual business
in the global environment
Digital businesses use various technologies and computerised systems in order to create
value to their products or services. It conducts their operations through adopting modern
advancements in their course of activities and adopts specific systems and software to facilitate
their working. eBay is the leading web-based company which offers a personalised market to
buyers and sellers via its online website. The key trends used by the company in performing their
digital operations are discussed below:
Artificial intelligence: AI refers to the ability of a computerised systems or programmes to
perform tasks which were usually performed by humans manually. The application of artificial
intelligence is extremely crucial in the operations of a digital business organisation. In context to
eBay, the company mainly operates its functions through using services of artificial intelligence.
The company make effective use of AI tools and techniques to offer personalised experience to
its customers (Añaña, 2022) . It uses artificial intelligence for numerous processes including
search, insights, translation, image recognition and photo clean-up etc. moreover, AI helps the
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company to forecast demands, formulate better pricing strategies and for the purpose of product
placement optimisation. This allows consumers to choose right products and offer them with best
alternatives to make their purchasing decisions. The company implement usage of various
applications of artificial intelligence including AI-powered assistants, personalised shopping and
learning, fraud prevention, voice assistants etc.
Management information systems: It refers to the use of software which helps business
organisations in the process of decision-making and helps in coordination and controlling
business operations. In context to eBay, the company make effective use of VMWARE virtual
server which contains approximately more than 100 terabytes of flash memory. This flash-based
approach helps in facilitating internet small computer system interface and assist in application
of over 10Gbit Ethernet. Moreover, the company use Java to enable its server-side infrastructure
and also make effective use of oracle database in its processes. The application of Java helps in
performing numerous web-based functions (Oppong, G.Y.S., Singh, S. and Kujur, F., 2020).
Cloud computing: The application of cloud computing is becoming widely popular in
performing functions of a business organisation. The services of cloud computing allows user to
storage important information and data so that it could be easily accessible. It has become
critically relevant for any business to adopt services of cloud computing to organise complex
business data. The services of cloud computing can only be assessed with the use of high internet
connectivity (Busulwa, Pickering and Mao, 2022). In context to eBay, the organisation use
Openstack private cloud platform which was created by the company itself. The company
currently controls 95% of its marketplace traffic through making effective use of Openstack
cloud.
Advantages of digital technology
The operations of e-commerce businesses are mainly dependent upon the usage of
modern advancements and technological inventions. In order to make their services accessible to
consumers, digital businesses use a number of web based applications, programming languages,
software, cloud computing, artificial intelligence and other techniques. In context to ebay, it is
one of the most prominent e-commerce business which facilitate the marketing of a range of
products including antiques and supports auctions. The company has expanded and achieved
significant growth through adopting advanced techniques which made it one of the most
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prominent global online marketplace. The company has benefited from numerous advantages
offered through digital technology which are explained as follows:
Online marketplace: The application of digital technology has facilitated the creation and
development of websites through which businesses conducts their operating activities. The
invention of digital advancements has enabled the process of web management. It refers to the
activities which are performed in posting and maintaining content of a website on world wide
web. In context to eBay, the development of technology has made it possible for its founder to
create one of the most largest global online marketplace. The creation of online global
marketplace has eliminated the need of physical resources for construction of infrastructure for
the market (Chan and Asni, 2022). The development of virtual marketplace enabled the company
to attract worldwide customers to a great extent.
Better customer experience: The role of digital technology in the functioning of an organisation
is highly crucial in improving customer experience. The application of digital technology in
routine operations of the company enables to interact with customers globally on a regular basis.
The online marketplace provides customers with a wide variety of product choices and
alternatives. The online marketplace attracts a large customer base towards its services by
offering ease and more convenience to consumers. The application of digital technology helped
the company in adding advanced features to the online website. It enhances the consumer
experience through making virtually access a wide range of choices facilitating better decision-
making.
High profitability: Operating business functions wholly with the application of digital
technologies has enabled organisations to reduce costs. It has eliminated the requirement of
investing in costly infrastructure development in order to create a real marketplace. The creation
of online market place allows an organisation to avoid spending on expensive interior and other
assets (Santos, G., Murmura, F. and Bravi, L., 2018).
Consolidated management of resources: Digital technology has gave birth to modern inventions
and innovative applications designed to fulfil various specific purposes. The implementation of
various software and computerised systems helps the business in proper management of
resources (Chen and et. al., 2022). The information management application helps in inventory
control, tracking orders, better organisation of warehouses and other various functions.
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Helps in gaining consumer insights: Digital businesses use various software which enables
them to track activities of their consumers in order to know their preferences better. eBay has
been successfully catering to requirements of audience through constantly updating their systems
and processes which best suited to their customer preferences. The company use artificial
intelligence to ease the transactional process through providing features of translation and voice
search optimisation (Neves, B.B. and Vetere, F., 2019). The organisation has been adding
innovative features to their online marketplace through analysing consumer interests and
complying with them.
Better productivity: The growing use of digital technologies in business are widely promoting
and fostering productivity of the organisational operations. The application of digital
advancements helps in attaining more accurate results through eliminating the factor of manual
human errors. The leading e-commerce company eBay mainly conducts its commercial through
using advanced technologies and digital infrastructure. It helps the company through achieving
better productivity by saving both time and efforts of their personnel (Edeh, 2022). The use of
digital technology in performing various functions helps in producing more accurate and reliable
results. It saves a lot of time through availing advanced features which also allows employees to
detect errors and solve them using IT techniques (Barykin, S.Y. and et.al., 2021).
New and emerging digital business models in the context of key business issues such as cyber
security and ethics
The functioning of e-commerce companies highly relies upon usage of digital
infrastructure and information technology. They facilitate their functioning and allows customers
to avail their services through using online websites and indulging in digital applications. The
excessive use and reliance on platforms of digital technologies increase the risk of cyber threats
and security issues. The computerised systems and internet use wide networking features which
creates privacy concerns for the users (Uhlig and Remané, 2022). The wide usage of digital
technologies implies businesses to focus upon ethical considerations and protect the interests of
the customers. The cyber issues and security threats related to the intensive use of digital
technologies are discussed below:
Malware attacks: Ransomware attacks are serving as a major threat through which hackers gets
access to sensitive data and information of the company (Mancha, R. and Shankaranarayanan,
G., 2020). It give birth to unfortunate events where hackers literally steal all organisational
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database and use that against them to attain misleading advantages. These attacks can disrupt the
working of systems and results in loss of confidential data and important files.
IoT threats: The internet of things (IoT) is widely used by businesses and individuals all over
the world. Due to easy accessibility and more convenience, internet is being used by billion users
for numerous purposes. The huge connectivity and wide networking features makes IoT more
adaptable and support a range of motives. The year 2021 has dealt with over billion cases of IoT
attacks which are attackers are attempting to steal data. The pandemic has even skyrocketed the
internet usage to a great extent (Godin and Terekhova, 2022). It resulted in numerous attacks and
scams where hackers are attempting to gain misleading benefits through engaging in fraudulent
activities. The users of eBay are highly reliable upon internet in order to avail its online services.
Thus, internet usage for using services results in privacy breach and allows hackers to gain
sensitive data and personal information.
Threats of cloud attacks: Cloud computing has became a prominent platform which is used by
businesses on a significant level. The services of cloud is facilitated with wide networking and
internet connectivity due to which it is prone to vulnerabilities. The application Cloud computing
leads to theft of data and information which can be used against a company to attain deceptive
benefits mainly financial gains (Belik, E.B. and et.al., 2019) .
Phishing scams: It refers to a type of online scam where imposters attempts to gain deceptive
advantage through sending mails by false pretence. Phishing attacks are frequently rising where
imposters try to gain access to important passwords or bank details through faking their
identities.
Software vulnerabilities: Despite installing most advanced software and using best features in
the application of digital techniques, every software is prone to vulnerabilities. The growing
inventions and advanced techniques is enabling individuals to develop and enhance their hacking
skills. Hackers are becoming highly tech freak due to which they are able to identify
shortcomings even in most advanced software (Kasim and Yusof, 2022).
Digital business models to deal with cyber issues
E-commerce businesses who substantially rely upon use of digital technologies should
focus upon creating a value chain where preventing cyber crime should be among top priorities.
To continue operating using methods and techniques of digital systems, the company use
effective tactics in order to avoid the risks of cyber threats. Cyber crime cannot be eliminated
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completely as digital services are becoming more innovative day by day which leads to invention
of new hacking tactics. The risks of cyber crime and security issues can only be reduced or
minimised through complying with security protocols along with adopting of other strategies.
The digital business models which helps to protect the interests of their customers and conduct
business in ethical way are discussed below.
Effective installation of antivirus: In order to reduce the risk of malware, the company ensures
the installation of most appropriate and suitable anti-virus software. eBay is a well-established
business which is dealing in e-commerce services from a long time. It has well developed
systems of software including anti-virus programmes to ensure protection against harmful
attacks. Moreover, constantly updating software is extremely important in order to eliminate the
risk of hackers stealing data (Katuse, 2022). The company owns an individual IT department
which are mainly hired for keeping check with fraudulent activities of hackers.
Increasing awareness of cybersecurity: Most of the cases of cybercrime are successful due to
negligence of users resulting in breaching of privacy. While availing services of the e-commerce
company eBay, users sometimes provide personal information to hackers unintentionally with
their negligence and inappropriate use of internet (Usai, A. and et.al., 2021). Customers grants
permission to numerous sites to access their private media through which hackers are able to
attain personal information. Moreover, many times cybercrime is promoted through employees
unknowingly due to their lack of knowledge and attention. Therefore, the company attempts to
make both their customers and employees aware regarding the threats of cybercrime. The
website instruct users to create strong passwords and teach their employees to comply with
important protocols and algorithms.
Cyber liability insurance policy: The policies of insurance enables an organisation to shift the
burden of risk to the respective insurer. The risk of cybercrime is increasing to a extent which
cannot be avoided completely (Loonam and O'Regan, 2022). However, these risks can be
minimised using strategies like granting insurance so that financial losses due to cybercrime
could be shared with third party.
The impact of new collaborative relationships and strategic alliances through digital technology
The collaborative relationships and strategies alliances refers to a association or
cooperation which aims to achieve more benefits through integration of efforts and resources.
Digital businesses often make alliances with other strong associations which are also indulged in
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techniques of digital platforms. Through creating collaborative partnerships, businesses achiever
growth and success through optimisation of combination of techniques and resources. For
instance, the strategic alliance of Microsoft and eBay has enabled the company to offer more
advanced services to their customers. With effective applications and platforms of Microsoft the
company has been able to provide more options to its users (Martínez-Caro, E., Cegarra-
Navarro, J.G. and Alfonso-Ruiz, F.J., 2020). The Microsoft. NET platform was suppose to
expand the eBay application programming interface, resulting in increasing accessibility of
eBay's engine to millions of developers globally. This strategic alliance helped the company in
enhancement of its services through a wide range of applications and platforms apart from
browsers (Puito, 2022). The deployment of Microsoft technologies through eBay helped in
enhancing performance and increasing reliability and ensuring cost effectiveness as well.
Another strategic alliance of the company was formed with Yahoo! For the purpose of increasing
revenue through better optimisation of resources. One of the world's largest online company,
yahoo formed collaborative partnership with eBay being the largest auction company. It helped
eBay in promoting their online payment services, PayPal on the website of yahoo! through
considering it as the most preferred method.
The impact of crypto currency on businesses
Cryptocurrencies refers to the payment method which use digital platform to in order to
perform transactions. It uses encrypted protocols and complex algorithms to secure and verify
transactions. The transactions performed through using cryptocurrencies are recorded in digital
wallets. The use of cryptocurrencies offers numerous benefits to businessmen all over the world
(Pirola, F. and et.al., 2020). It help in fostering growth of entrepreneurs through investing in
foreign markets rather than only limited to national markets. It has invented a new method to
perform transactions which allows online businesses to make payments through using crypto.
eBay promoted usage of cryptocurrencies through PayPal which added a new feature in march
2021. it enabled users to make payments with the use of crypto coins to completer transactional
processes. These currencies could be kept in digital wallet of PayPal which are then convertible
into flat currency and without any additional charges. The adoption of Cryptocurrencies through
businesses promotes low cost of transactions in comparison to other conventional methods. The
security offered through use of cryptocurrencies is very high as it performs transactions which
are highly encrypted and are secured with complex algorithms (Sarker and Datta, 2022).
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However, there are also various risks associated with implementing crypto coins as payment
method. Fluctuations in market value of cryptocurrencies is a potential risk which leads to
uncertainty. The decrease in their market value could results in heavy losses to the businesses.
Conclusion
From the above report, it has been concluded that digital businesses are providing
services to their customers with using high techniques and modern advancements. The
application of digital techniques enables e-commerce businesses in improving customer
experience and enhancing productivity of their operations. Digital businesses use various digital
platforms and computerised software to facilitate the functioning of the company. However,
there are various security risks and privacy concerns associated with increasing use of digital
platforms. These risks are almost impossible to completely eliminate but they could be
minimised using effective digital tactics. It has been analysed that strategic alliances of digital
businesses fosters growth and performance.
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References
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