Digital Technology and its Implications for Managing Virtual Business Globally: A Case Study of Amazon UK

Digital Technology

INTRODUCTION
Digital technology is the system which provides ease in performing tasks. It may includes
devices, resources, electronic tools and processing or storing of data. Nowadays most of the
businesses use digital technology which help them in development in growth. Examples of
digital technologies are multimedia, digital learning, online games, social media and mobile
phones. This report is in reference of Amazon UK which is headquartered in Washington US. It
was established in July 5, 1994 by Jeff Bezos. They mainly focus on digital streaming, cloud
computing, e-commerce and artificial intelligence. It also provides services of supermarket
through its website all over the globe. This report includes key trends and advantages of digital
technology and implications how to manage virtual business globally. It also includes emerging
digital business models in relation to business issues such as ethics and cyber security which
business uses. The impact of new collaborative relationships and strategic alliances through
digital technology are also discussed in this report. Impact of crypto currency and others are also
included in this report.
MAIN BODY
TASK 1
Key trends and advantages of digital technology and implications for managing virtual business
in the global environment
Digital technology help people in efficient working, coordination and communication at
the workplace. It gather relevant data from different sources in short time period which can be
used in the business for growth. Amazon uses digital technology in day to operations and its key
trends are as follows:
 Artificial intelligence: AI helps in navigation apps, making image superiority, speech
recognition and assistants in smartphone personal. It helps in forecasting future demands
for the business which results in proper use of resources(Vargo and et.al., 2021).
 . Amazon uses artificial intelligence which predicts the future changes like tastes and
preferences of customers by analysing real time data which help in manufacturing
products according to market demand.

 Robotic process automation: This technology interpret business operations which
includes dealing with data, interpreting applications, replying email and transaction
processing with the help of software. Amazon uses this software which reduces repetition
of tasks in their business. This will increase their efficiency and profitability.
 Block chain: This software provides security to the users as it prevent changes and
alteration in data. It controls various data and make business system more secure.
Amazon uses block chain which eliminates interference of third party for data security
and thus it results in cost effective operations.
Advantages of digital technology
Digital technology helps in reducing the risk factors from the business and improves the
performance of the employees. Amazon uses digital technology which is very beneficial to them.
Various advantages of technology are:
 Social connectivity: Digital technology provides easy ways for interaction with various
apps like texting, video calling, texting and audio calling. Amazon can easily connect
with suppliers, manufactures and promoters with the help of digital technology. It also
helps in effecting marketing on digital platforms which increase their sales.
 Automation: It helps in making machineries automatic which operates without manual
resources(Zelizer 2019). It reduces labour cost and makes operations much more easier
with the perfection in outcomes. Amazon install upgraded machines which work more
smarter with maintaining safety standards.
 Information storage: This advantage of digital technology helps in storing important
informations safely and securely in small storages. Large and confidential data of
Amazon can be preserved without any risk with the help of digital technology. It prevent
risk of accessibility of third party by storing data with high safety and security.
 Banking and finance: Online transactions and payments facilities are easily carried out
with the help of digital technology. It create ease in operations of businesses with
managing their funds in online accounts. They can transfer money with one click in short
period of time. Amazon also added feature to their website of money transactions which
enhance the engagement of the customers.
Implications for managing virtual business