Digital Business: Key Trends, Implications, and Strategies

This report provides an overview of digital business, including key trends in the digital industry, implications of managing work in a virtual global environment, and digital marketing strategies. It discusses the impact of collaborative relations and strategic alliances in the digital business landscape. The report also explores digital business theories and the application of digital marketing in organizations. Case study of Zara's digital marketing strategies is included.

DIGITAL BUSINESS
ASSIGNMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Key trends in digital industry and their advantages.....................................................................3
Implications of managing work in a virtual global environment................................................4
Digital models and managing business issues.............................................................................5
Managing of business issues like cyber security and ethics........................................................6
Impact of collaborative relations and strategic alliances.............................................................6
Digital business theories..............................................................................................................7
Digital marketing strategies in practical context.........................................................................8
Digital marketing multi-disciplinary applied in an organization...............................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
2

INTRODUCTION
The report is on digital business. Digital business means online use of tools for making products
available for purchase. It has become the norm nowadays, which the study emphasises. The
report focuses on key trends and advantages of digital technology and implications for managing
business virtually in global environment. The evaluation of new and emerging models and key
business issues like cyber security and ethics have been evaluated. Impact of new collaborations
and strategic alliance through digital technology has been discussed. Relevant digital theories
and strategies in practical context have been discussed. A multi-disciplinary approach to
application of E-commerce principles in a chosen organisation has been discussed.
Key trends in digital industry and their advantages
5G new trend
In the current situation, digitalisation has been taken to the next level by 5G. It provides speed
which is faster and connectivity which is better to fulfil demand for bandwidth increase and also
provides connectivity which is reliable. It can increase customer experience and can speed up
transformation of businesses digitally. Organisations have been promoting business to be done
from homes by employees and also remote areas where new branches have to be set up and 5G
provides the advantage of speed and connectivity (Kannan, 2017).
Blockchain
It has come in picture with fast-moving technology. It is adopted for use in financial
organisations. This is going to play a crucial role in cybersecurity measures and the focus is on
exploring the expansion of technology of block chain in many industries.
Cybersecurity being prioritised
Cybersecurity has become relevant with hacking taken place in many companies. As many of the
organisations changed to work from home, it aroused a need for measures which were better and
secure. The cybersecurity practice was one of the priorities in business going through
3

transformation digitally. Digital transforming of companies has to be on par with security
strategy of the organisation.
Digital Banking
Finance sector have been the impacted industry with digitalisation. Online payments have made
it very easy to transfer funds through digital banking apps with now trend coming in machines
installation where self-service of automated accounts can be opened, application for loan can be
put up, queries can be put up, passbook printing can be done This has enhanced digital
experience with transformation brought up digitally (Chaffey and Smith, 2017).
Customer Data Platforms
This has become the new norm where data gathering of customer helps companies know their
target segment. The age group, habits and preferences, what products are searched online and
what are bought are all updated in the customer data forum. The collection of data is done from
many sources and organised. Accordingly, company makes personalised mails about offers on
products customer would like to re-buy.
Implications of managing work in a virtual global environment
Virtual business has no doubt, increased business expansion and has made it possible to sit in a
nook or corner of the world and conduct business with people in other nook or corner. It has
dissolved geographical boundaries where now people can have access to communication through
data channels and conduct deal offshores. Virtual business has led to firms outsourcing their
business in other countries where operational work is done by outsourced firm and deals can be
done via mode of intranet and internet connections. This has led to revenue generation like never
before and made global boundaries dissolve (Bala and Verma, 2018).
However, it has come with its challenges too. The foremost challenge has been of connectivity
being lost sometimes. It leads to communication barriers which may lead to loss of business with
client. Also, in virtual communication, it may happen that information is not perceived in the
manner it should have been. It arises due to not being in contact directly and thus the task
accomplishment can not reach the client expectations.
The requirement for an internet presence
4

For authentication purposes, a client verifies whether or not the firm name heard exists. Thus,
being physically active in customer service isn't enough; you also need to be present online and
in business directories, where you can gain confidence and reputation through favourable
evaluations. Many sorts of businesses have realised the importance of being featured in a
business directory since clients may visit the sites on a regular basis and thus make a decision
(Hanlon, 2018).
Digital models and managing business issues
Innovation through a platform
The digital businesses has innovation through platforms which are owned not directly of
resources but handles the operations and employees. For example, Ola does not own taxis but is
one of the registered big companies in taxi industry. Swiggy does not own any hotel but is one of
the largest restaurant food providers in hospitality.
Disruption through data
The business model is driven through data collection of customers. Data holds the utmost value
in business today.
Creation of network effect
There are networks with many types of opportunities in business model:
a) Developer network: Users make use of applications where developers build platforms
increasing the appeal for example: Android, iOS etc.
b) Content which is user generated: Users create content which is contributed from others
which then attract more contributors (Bala and Verma, 2018).
Managing of business issues like cyber security and ethics
The digital transformation has spurred growth and bought new industries to the forum with IT
sector. However, issues like cybersecurity have emerged which can cause loss of data. Hacking
of systems can lead to loss of reputation and also loss of valuable customer data. Thus, in order
to retain them, cybersecurity has to be managed. It can be managed through installation of
5

recommended anti-virus and fire wall which can report and stop mischievous acts which can
save business data from going out.
Ethics are also the other concern for business management. It is necessary that employees follow
ethics and do not leak information outside. Thus, there is a compliance department in
organisations which sees that there is follow of rules and regulations by the employees in which
clean desk policy, where no piece of information lies in open, no to use of pen drives and no
wrong use of I-card is done. Employees are told in the compliance huddles the procedures to
follow for safeguarding the company interests. Monitoring the steps in compliance can help
invoke responsible behaviour from employees.
Impact of collaborative relations and strategic alliances
Digital relations have become common where organisations are taking support of digital
technology and collaborating with partners to give a boost to their products and increase sales.
Companies like IBM and Box, Blackberry and Samsung have formed strategic alliances for
gathering innovation and bringing capabilities to market quickly (Hanlon, 2018).
Ecommerce
Everything that is offered in a physical store is now available online through e-commerce sites
like Amazon, which signifies collaboration of a digital company with physical stores. The store
is open 24 hours a day, 7 days a week, and bookings can be made at any time of day or night to
be delivered the next day. This service is not available through a physical channel. Customers
can return after they've made up their minds, which is unlikely at a real business. As a result, it
has prevented consumers from being forgotten and improved revenue for the organisation (Vieira
and et.al., 2019).
Ecommerce collaboration has helped small businesses to operate even when they lack office
space by allowing them to work from anywhere. The accessible space is being modified in some
way, and people can put their shop there. Aside from that, geographical barriers have been
removed, and consumers can now monitor their businesses using their mobile phones and the
internet.
6

Customer queries
Customer inquiries may be answered promptly with the use of collaboration with social media
tools, allowing the customer care presence to be felt 24 hours a day, seven days a week. On
Amazon, there are features such as chat bots that can answer consumer questions 24 hours a day,
seven days a week, and e-mail that customers may use to get answers to their complaints.
Customer queries cannot be answered immediately through offline channels, and solutions
require time, which is not the case online (Vieira and et.al., 2019).
Customers have also been able to reply through social media.
Collaboration with telecom
Increased telecom usage around the world has had a tremendous impact on the online business,
resulting in a significant alliance of telecom and online companies. With the majority of the
world's population now owning smartphones, individuals are turning to digital websites to fulfil
their wishes or needs. Shopping has become a simple affair with just a few mouse clicks. The
youth demographic, in particular, has been a crucial component for the growth of online
businesses. People nowadays prefer not to stand in lines and prefer to order their things online,
which saves them time and provides ease.
Digital business theories
Customer led positioning theory
The theory says that customer is one which shows marketers of what they require in product or
any service. Customer can give leads to product team through gathering of data about price,
features of product, its function etc. For instance, when customers buy a personal care product,
the customer would be interested in knowing its variety of uses and whether it can combine with
other products, the theory lays emphasis on these attributes (Kaur, 2017).
7

Mobile phone economy
The theory revolves on people using their phones for online shopping. Now many significant
steps have been taken to conduct online business through phone. It has led the economy of
digital business to a phenomenal growth.
Digital marketing strategies in practical context
Focusing on conversion: Data is a critical component of a successful digital marketing plan.
Every decision made by a marketing team is influenced by data. Conversions are most likely to
occur when customers spend time on a category specific to a brand or a product.
Creating a foundation for long-term value
Marketers can consider long-term value when developing strategies for social media platforms
and solutions, rather than investing all of their resources in a one-time campaign. To thrive in the
long run, social media platforms and solutions must be tailored to client specifications (Kaur,
2017).
Increasing customer satisfaction
It is being done by improving tools that reduce web traffic and direct customers to the most
relevant link based on their search, as well as reducing unwanted adverts and offers and
facilitating rapid product purchases. The buyer remembers the smoothness of the transaction and
so wants to return to the site. Another method that connects the customer to the business, similar
to what Amazon does, is to send an instant e-mail requesting feedback after the purchase has
been completed.
Change with the times.
Digital marketing is always changing, and technology can change dramatically in a matter of
months or years. As a result, using digital marketing in company must be enhanced in the
process with the addition of new apps that can speed up the process while also keeping track of
client purchasing habits (Key, 2017).
8

Review for Digital strategies
According to the Key (2017), because online sales are not one-on-one, it is vital for online firms
to build trust with their clients. This means that, in order to provide value to clients, the product
they selected after reading the specifications on the website must satisfy their expectations once
they receive it. When a consumer orders a product online, the delivery system must be adequate
to ensure that the product is delivered on time and to the correct location.
According to the Zhu and Gao (2019), the customer must be viewed as the centre of the business,
with the firm putting itself in the shoes of the consumer and assessing the client's desire, and then
promoting items that resonate with the customer. Consumer satisfaction should be achieved
through feeling the vibrations of the business, understanding their demands, taking customer
input through an online forum, and executing actions to achieve customer happiness.
As the Olson and et.al. (2021) points out, businesses are creating an online community in which
they can communicate directly with customers. Customers might also be kept informed about
social topics that are important to them. This might give the company a more humanistic touch.
Sustainability is always a good approach to engage with customers. Customers have been
engaging on social media platforms about a variety of issues that affect them, with corporations
leading the way.
Companies are have a blog post on their website where they can announce new impending
business launches, and the links to the blog post can be emailed to customers. If the product
description to be launched is written well and contains high-quality material, it can pique clients'
interest in the product while also saving money on marketing and advertising.
According to Zhu and Gao (2019), when a company needs to promote a new product, it can post
on social media that the company is having a webinar that customers can participate whenever
they have free time to learn more about the product. People enjoy this venue because they can
communicate on the platform, view relevant product presentations, and ask questions during a
separate query session held during the webinar. This is also more engaging than other
promotional activities where the presenter's originality may benefit the business.
Digital marketing multi-disciplinary applied in an organization
Zara is a Spanish clothing company that was started in 1975 and now has over 6500 locations in
88 countries. Zara specialises in fast fashion, which implies that the latest retail trends are
9

promptly passed on to customers (Olson and et.al., 2021). Zara also offers special deals and
discounts on first-time purchases, as well as according to the season. Zara has organised the
product categories in such a way that customers will have no trouble finding the appropriate
segment. Zara also employs digital marketing techniques to clear web traffic and reduce client
search time by redirecting them to the appropriate page.
The behavioural engagement strategy can be defined as the behavioural expressions of
motivating factors toward an object of engagement. Customers' efforts and time spent on a brand
are also factors.
When it comes to client involvement, Zara does not attempt to be a fashion innovator, instead
opting for the quick fashion way. Unlike stores who invest a lot of money on research and
development to become trend setters, Zara undertakes the work of following current trends,
which appeals to Zara's younger demographic.
Zara places a high value on consumer input. They take into account customer feedback on an
article, relay the message to headquarters, and communicate with in-house designers, who
subsequently incorporate the feedback into future work. The in-house designers are professionals
in their sector and ensure that the consumer receives the level of quality that they desire. As a
result, Zara has a high level of brand loyalty.
Digital technology is also used to capture actions of customer when trying out new products.
Digital technology captures the moment and suggestions are sent to customer through e-mail on
options available of the product along with the pricing to choose from. Zara employs this
strategy effectively (Krishen and et.al., 2021).
Zara's ecommerce approach relies on an automated marketing technology to send relevant
notifications and e-mails to customers, with everything from order status updates to inventory
stock notifications taken into account. Throughout the customer journey, the brand recognises
the need of personalised marketing via emails and text messages. Digital technology is also used
by the company to track clients' behaviour while trying on a new product, such as a coat. The
person trying on the coat is photographed and forwarded to the purchaser via e-mail with options
for similar coats in the same price range, as well as the option to purchase online.
One suggestion for Zara's customer digital engagement approach is to expand its online contact
with customers on social media sites and create a community to debate issues that are important
10

to the public. The general public also wishes to express their views on a variety of social
concerns. Second, the corporation can enhance its image on digital platforms as a responsible
environmental steward by supporting plantation programmes, corporate meetings to reduce
carbon emissions, and government attempts to align with the environment. This will not only
assist the firm in carrying out its social responsibilities, but it will also project an image of a
company that cares about the community. People have always backed this up.
CONCLUSION
It can be concluded that digital marketing is here to stay and progress. In the report, it was
highlighted about the trends in digital marketing. The advantages of virtual environment and
challenges highlighted the scenario of digital environment. New emerging models based on
digital business were discussed and it was also depicted in organisation. Digital business impact
of collaboration was also highlighted.
11

REFERENCES
Books and journals
Kannan, P.K., 2017. Digital marketing: A framework, review and research agenda. International
Journal of Research in Marketing, 34(1), pp.22-45.
Chaffey, D. and Smith, P.R., 2017. Digital marketing excellence: planning, optimizing and
integrating online marketing. Taylor & Francis.
Bala, M. and Verma, D., 2018. A critical review of digital marketing. M. Bala, D. Verma (2018).
A Critical Review of Digital Marketing. International Journal of Management, IT &
Engineering, 8(10), pp.321-339.
Herhausen, D., Miočević, D., Morgan, R.E. and Kleijnen, M.H., 2020. The digital marketing
capabilities gap. Industrial Marketing Management, 90, pp.276-290.
Krishen, A.S., Dwivedi, Y.K., Bindu, N. and Kumar, K.S., 2021. A broad overview of
interactive digital marketing: A bibliometric network analysis. Journal of Business
Research, 131, pp.183-195.
Hanlon, A., 2018. Digital marketing: Strategic planning & integration. Sage.
Vieira, V.A., de Almeida, M.I.S., Agnihotri, R. and Arunachalam, S., 2019. In pursuit of an
effective B2B digital marketing strategy in an emerging market. Journal of the Academy
of Marketing Science, 47(6), pp.1085-1108.
Kaur, G., 2017. The importance of digital marketing in the tourism industry. International
Journal of Research-Granthaalayah, 5(6), pp.72-77.
Olson, E.M., Olson, K.M., Czaplewski, A.J. and Key, T.M., 2021. Business strategy and the
management of digital marketing. Business Horizons, 64(2), pp.285-293.
Key, T.M., 2017. Domains of digital marketing channels in the sharing economy. Journal of
Marketing Channels, 24(1-2), pp.27-38.
Nikunen, T., Saarela, M., Oikarinen, E.L., Muhos, M. and Isohella, L., 2017. Micro-Enterprise's
Digital Marketing Tools for Building Customer Relationships. Management
(18544223), 12(2).
Zhu, G. and Gao, X., 2019. Precision retail marketing strategy based on digital marketing
model. Science Journal of Business and Management, 7(1), pp.33-37.
12