Digital Innovation and Online Business: A Case Study of Mark and Spencer

This report discusses the impact of digital innovation on online business, including key trends, advantages, and new business models. It also explores the importance of cyber security and ethics in online business, and the effect of new collaborative relationships and strategic alliances through the use of online technology. The report concludes with an analysis of the impact of digital currencies on digital businesses. The case study of Mark and Spencer is used to illustrate these concepts.

Individual report

Table of Contents
INTRODUCTION...........................................................................................................................3
1. Key direction and benefits of the digital innovation....................................................................3
1.1 Online business.................................................................................................................3
1.2 Merits of the digital business............................................................................................3
1.3 Key trends in digital business...........................................................................................4
1.4 Used the digital enterprise with rewards and fundamental trends in mark and spencer. 5
2. Discuss the new and rising online business model by taking the key factors such as the cyber
security and ethics that the company follow or wants to use. ........................................................5
2.1. Define fresh, rising digital business organization model................................................5
2.2. Estimate the new and recent online business model in the view of key factors like cyber
security and ethics. ................................................................................................................6
2.3. Estimate how the selected company is using the new business model in the market ...7
3. Analyse the effect of new collaborative relationship and strategic alliance through the use of
online technology.............................................................................................................................8
3.1 Collaborative relationship................................................................................................8
3.2 Advantages and disadvantages of the collaborative relationship and strategic alliance. .8
3.3 Use of strategic alliance and collaborative relationship in the organisation....................9
4. Consequence of digital currencies in the digital businesses......................................................10
4.1 Advantages of virtual currencies in market ...................................................................10
4.2. Critically discuss the impact of recent crash of digital currency on digital businesses 10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Digital technologies helps to generate or produce, stow and process the data. These
technologies include devices and resources, electronic tools, systems such as multimedia, online
games, social media and mobile phones. It permits the large quantity of information or data that
can be closed on small storage devices. These data or information can be easily conserved and
shifted. It's main purpose is to improve the services, enhance the internal collaboration and
efficiency and so on. Mark and spencer is a public limited company that deals in retain industry
also operate the e commerce business. It has been founded in 1884 in UK. It serves their
products and services on global level. This organization is growing day by day in e-commerce
business by supply the products at the national, local, international level that will help in getting
higher position in future. The digitalization of the business helps in enhancing the sale, market
share and reducing the cost of the commodities. In present scenario, the digital sector helps in
economy by the 118 billion in 2015 and the amount exportation of the digital commodities and
services is 50 billion. The UK is enhancing the digital clusters over the many nation (Babiak,
Thibault and Willem, 2018). In this report, many things has been discussed such as digital
business, advantages of that, key trends, digital models, new collaborative relationship and
strategic alliances that aids in growth of the business at higher position in e-commerce sector.
1. Key direction and benefits of the digital innovation.
1.1 Online business
Online business utilizes the several technologies to generate the new values in the models
of business, consumer experiences and capabilities which helps in supporting their crucial
operations. The term involves all the digital that are brands as well as traditional players. These
are shifting the organization along with digital technologies. In other words digital organization
is the procedure of utilizing these technologies to recreate the company or business models and
shift a business's commodities and consumer experiences such as initiating the other new
products that generate the new value and doing relate with the individual with things,
experiences and insights (Bican and Brem, 2020).
1.2 Merits of the digital business
Digital existence: It is the most feasible advantages. It refers to the existence on the internet with
the help of tools like blogs, online stores, corporate pages, social networks and so on. It

presents the visibility of the organization and channels of sales. It focuses on the digital
strategy.
New contact channels with consumers: The digital existence is only not able to inform about
sales channels but also furnish the new ideas to communicate with the consumers through
apps, email, social networks and so on. The customer of any company with digital existence
can contact to the organization through many ways. It is the other method to enhance the
loyalty, sales as well as profit (Brooker and Meyer, 2018 ).
Efficient decision making: Digitization keeps the data management, data consists the
knowledge and this helps to take better decisions. Many organization utilises the another big
data while making the decision that impacts on the entire company.
Helps in efficiency and productivity: The digitalization and intelligently of business can assist
in enhance the company efficiency as well as productivity. It can decrease the cost. The
digital technology aids to business in improving the area of their organization through out
the years.
Induces the innovation: The transformation of the digital triggers the business to consider about
innovation. It permits to be more alert regarding to new trends and the expectation that
would be offered by the new technologies. It does not relay on digitalization, it will aids to
achieve.
Makes communication and teamwork easier: The business digitalization helps to improve the
internal communication as well as teamwork with the help of communication channels.
It amends the working conditions: It covers the huge area so it aids in improving the working
scenario. These offers the number of benefits for employees as well as the company. It aids
reduce the job turnover and enhance the talent retention. The employers of new generations
demand digitalization in the jobs (Dezi and et.al., 2018).
1.3 Key trends in digital business
1. Data protection and security: As per the January 2021, 4.66 billion worldwide internet
users are there and it has been enhanced by the 4.99 billion in January 2022. It increases
more than 6% in an year. E-commerce business's owner should have assured the data
protection and security because consumer seeks surety about it (Fenech, Baguant and
Ivanov, 2019).

2. Hybrid workplace: The e-commerce business has provided the opportunity of hybrid
workplace which means sometimes employees can work from their offices and sometime
from their home as well but it is found that work from home is not suitable for every
person in every company (Gupta, 2018).
1.4 Used the digital enterprise with rewards and fundamental trends in mark and spencer
The mark and spencer has utilized many sources to set up the online business. It create
the connection with the customer at the global level. This makes the easy way to the customers to
purchase the commodities at any time from any place. With the help of the digitalization
technology, it encourages the innovations and also these tools helps to know the customer needs
and wants and enhance the productivity. The digitalization holds the data of the mark and
spencer that aids in taking the decisions efficiently in proper way. Mark and spencer has cover
the vital area with the help of digital technology that improve the working conditions of the
company. Advantages of the digital business [online]. Available through
<https://ehorus.com/digitalization-of-business/>
Mark and spencer has collect the information or personal data of consumer and provide
assurance to them to not leaking their data or information. Because now a days, people is
focusing more on the data protection or data security (Halaška and Šperka, 2018). It will helpful
to create the trust between the consumer and the company. This organization also provides their
employee to hybrid facilities so that the employee can work according to their convenient.
2. Discuss the new and rising online business model by taking the key factors
such as the cyber security and ethics that the company follow or wants to
use.
2.1. Define fresh, rising digital business organization model.
A online enterprise model is referred as a model that uplifts online innovations to upgrade
various factor of an entity like the customer acquisition power of entity or type of product or
services offered by the organisation. It is like a digital technology that improves the value
proposition of an enterprise. It aims at creating a significant benefit for which consumers are
willing to spend money (Ingaldi and Ulewicz, 2018). It defines the way of making money by an
entity. For initiating a digital business model it is required to be much more connected, real time
and updated. A digital business model has three components namely:

 Content which defines what is consumed
 Consumer Experience which defines how it is being packaged, and
 Platform which refers how it is delivered
The models of digital business have several features that are discussed underneath:
1. The purpose of digital technologies is to add the value in the business. For example there
are two reputed company Amazon or uber which can not execute the operations without
using the online sources. (Jabłoński and Jabłoński, 2020).
2. The model of business is denoted by the innovations and new findings in the online
business. It means to provide new services in to the market.
3. The channel of distribution or to acquire the customers is based on the online platforms.
Company which has created the tools of the online business utilize the online
technologies to target the potential customers.
4. Customers are wishfully to make payment for the online service. Online business helsp to
build the special value to the consumers which can be measured in the monetary terms. It
is the autonomous criteria of value is the attributes of the online business model. (Kamal,
2020).
2.2. Estimate the new and recent online business model in the view of key factors like cyber
security and ethics.
Instead of being a hurdle, cybersecurity provides a stable based on which to innovate and
can be the path for re-designing of business model. An entity focuses to keep pace with the fast
evolving digital economy, many entities are reorganising internal departments, recruitment
criteria and the procedure by which the entity develop and distribute products, all along with
predominant objective of becoming more skilled at fast responding to new opportunities in the
marketplace.
E-Commerce Model
The first and the successful model is used in the business for selling the goods with the
help of an online shop and the Amazon commerce business model. In present scenario it is the
most knowing business model on the internet to purchase any thing at any time it is open for 24
hours.

On the contrary to a marketplace model, which is Amazon today too, pure E-Commerce models
relies on a one-sided sales approach. An entity is selling its own stocks to customers.
Marketplace Model (Peer-to-peer, two-sided marketplace)
The two-sided marketplace is something which is quite often observed on the internet. The
sellers and the buyers utilises a third party platform to trade their commodities and services. The
main objective with this business model is that it is complex and dynamic (Liff, 2019). A two
sided platform requires to carefully scale demand and supply at the same time to keep both sides
attracted. In case of no seller or no buyer.
Ecosystem Model
Online ecosystems is one of the vital knotted and the very powerful methods in the
models of the business in recent time (Özoğlu and Topal, 2020). Ecosystem adapters like
Amazon, Alibaba, Google, Apple, Tesla, and many more are uplifting the customer with various
services across different platforms. By using this knowledge and information, the business can
focus on the existing customers to aquire potential customers because of the ''vendor lock in''
affect the ecosystems they created.
2.3. Estimate how the selected company is using the new business model in the market
An online trade business signifies the how e commerce company is developing the ways
to attract the customers and to drive the sales. Company uses the multiple types of methods of
business model that supports to attain position in the market and to reach the customers in
efficient way. The Mark and Spencer company sell the products and services by using the
internet or the extranet facility and the electronic data interchange system. The good e-commerce
model is the direct marketing channel. The organisation utilizes the email, digital sources and
the digital movement to create the new leads. It bring loyalty among the customers. Emails is the
most useful path for increasing conversation rates.
An e-commerce business model is how an entities e-commerce business is organized
conceptually in order to reach customers and drive sales. There are various kinds of e-commerce
business models that assists different types of entities to position themselves in the market and
reach their customers in an effective way. Retail e-commerce sales which are the sale of goods
and services where the Marks and Spencer and transaction take place on the Internet either
through an extranet, Electronic Data Interchange (EDI), or similar online systems. Direct

marketing channels remain the most effective e-commerce models. By using email, social media,
and digital campaigns, Marks & Spencer continue to generate new leads. To convert them into
loyal customers requires an effective e-commerce business model. From the available channels,
emails are the most effective channel for improving conversion rates.
3. Analyse the effect of new collaborative relationship and strategic alliance
through the use of online technology
3.1 Collaborative relationship
It is the term in which company is enter in to contract or agreement to share the resources
for sustaining the mutual objectives (Panda, 2019). In this it is the engagement of more than
two parties which give consent to share funds, raw materials, technology and the employees.
Through this they are able to work in a coordination and helps each other on several problems.
Generally this relationship is generated for the long term purpose and to render mutually gains
by working in a team group. It helps to gain the knowledge of different field or by providing
expert advice if there is any need.
Strategic alliance: It refers to the planning between the two organisation to take their businesses
online. It may be in the form of joint venture in which both of the organisation has significant
control on over the business. This strategy is used for expanding, modernisation or the
diversification of the businesses. It is utilized to enter into fresh product line, for wide reach of
the customers and to capture the huge share of the market. It helps to make the relationship
between the businesses and the information technology department. It aids the business to take at
higher level by sharing the knowledge, money and skills.
3.2 Advantages and disadvantages of the collaborative relationship and strategic alliance
Advantages of collaborative relationship
1. It helps to enhanced the creativity and attracts new talents in the company and to bring
fresh ideas. The accumulation of various ideas, project approaches, and brainstorming
method uses the innovative methods to improve the quality of products and services.
Advantages of collaboration relationship, [online]. Available through
<https://www.wimi-teamwork.com/blog/6-benefits-collaborative-working-for-
businesses/>

2. It aids to provide new skilled force in the company and attract fresh talents in the human
resource department. It boosts the morale of the workers and motivate them to provide
assurance that they are the important assets of the organisation (Qermane and Mancha,
2021).
Disadvantages
1. It can arise disputes between the members because every organisation has different style
of working. Sometimes there is deficiency of trust among the members which cut down
the effectiveness of the staffs to complete their task.
2. The digital business of the company can leak the confidential information so it is the
threat to privacy and the security.
Advantage of strategic alliance
1. Alliances of two businesses helps to reduce the cost of the product, furnishes the
distribution system and to expand the supply chain. It creates the competitive advantage
by the immense use of skills (Sander and et.al., 2018).
2. It allow the clients to scaling the businesses briskly and provides innovative results for
the customers. It will reduces the chances of any risk most probably.
Demerits
1. In this company transfer some ownership to other so there is loss of control in the
businesses. Sometimes one party hides the important facts and cheated the other party.
Partners of both the company can share trade secrets to each other (Stouthuysen, 2020).
2. Companies invest huge money in strategic alliance so it rises the liability of the
organisation to achieve the objectives of digital technology. If customer is not happy with
the organisation than there is equally sharing of capital and losses.
3.3 Use of strategic alliance and collaborative relationship in the organisation
The Marks and Spencer organisation has partnered with the Microsoft AI technologies
and with the many retail stores to modify the value of stores for the consumers and the
skilfulness for the vast trading operations of the and this can be game changer for the company.
This collaborative relationship and strategic alliances has helped to expand their stores and
develop new technologies to make it convenient for the customers. With this collaboration
Microsoft organisation has helped to records the tastes of the customers and make a separate
customer data base marketing. It also introduced cash less transaction concept in the businesses.

4. Consequence of digital currencies in the digital businesses
4.1 Advantages of virtual currencies in market
1. It reduces the use of paper currencies in the country so it is simple to don't carry the
cash with them at every time. By using the online payments platforms it ensures
speedy and quick transactions. It reduces the chances of risk and helps to make
digitalised country.
2. The scope of using the digital currencies is increasing in today's world. It helps to
conduct the transactions smoothly between the company and customers. These digital
currencies like electronic money, crypto and virtual currencies helps the customers to
make faster payment to the company (Tesch and Brillinger, 2019).
3. The transaction fees of the digital currencies is low and the charges for transferring
the funds is also minimum. It enhances the safety and security in the transactions
because it is regulated by the government network system. The concentration of the
government is to keep the confidential information secret and to prevent from any
hacking of accounts (Vaz, 2021).
4. It build the loyalty with the customers because there is no involvement of any kind of
credit card number. There is encrypted code which is used for processing the
transactions. This will provide security to the financial data in the processing system.
5. It also aids to make the link with the customers at the global level. It will increases
the revenue of the business. This will help the customers of different nations to make
payment in digital currencies for purchasing the goods and services
Advantages of digital currency. [online]. Available through
<https://www.bizjournals.com/bizjournals/how-to/growth-strategies/2017/06/7-benefits-of-
using-digital-currencies.html>.
4.2. Critically discuss the impact of recent crash of digital currency on digital businesses
The major issue is that digital currencies and the online assets assist in new services and
develops more rivalry in the financial market. They ensure the payment should be at the lower
cost for national or cross border transactions. It helps to solve the problem of the payment system
and supports real time payment system. Furthermore, these new assets support programmability,

which can be used for conditional payments and more complex applications such as escrow
(Yang, 2018). These online technologies threats the financial middlemen and it is the highly
debated issue. There is guideline which is issued by the Federal Reserve Bank to analyse the
benefits of digital currency and show the awareness among the cybersecurity, hacking of
accounts, privacy and risk in financial currency. Impact of crash of digital currency on digital
business, [online]. Available through <https://hbswk.hbs.edu/item/after-the-crypto-crash-whats-
next-for-digital-currencies>
While recent events underscore that the risks cryptocurrencies entail cannot be ignored, it is also
clear that it does not provide a satisfactory answer. The issue arises that burden of an expensive,
outdated, and slow payment system. This article surfaces the potential impact on small and
medium businesses, which embed significant consequences for economic growth and stability.
CONCLUSION
It has been determined from the above report that the digital technology is essential for
every company. There has been discussed about the key trends and advantages of the digital
business that this company has utilized for their growth in future. In this we study the digital
business model and the implementation of this methods in the company. Strategic alliances and
collaborative partnership helps the company to share the resources, funds, staffs and capital for
gaining the benefits and accomplishing the target mutually. The use of digital currency has
helped the company to make the transaction quickly.

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