Importance of Blockchain in Digital Business: A Case Study of Amazon

This report discusses the importance of blockchain in digital business with a case study of Amazon. It covers the development of blockchain, its technology, software and platforms, its use as a business tool, and its effectiveness. It also relates to course content and discusses the relationship between digital technologies and emerging theories.

Digital Business &
New Technologies

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
Importance of blockchain.......................................................................................................3
How this technology has developed.......................................................................................3
A detailed description of the technology used in this topic and what it is used for...............4
What are the technological software and platforms are used in the blockchain?..................4
What type of business and organisation uses blockchain?.....................................................4
How is it used as a business tool and is this effective?..........................................................5
Task 2...............................................................................................................................................5
How does this relate to course content and discussion on the nature of the relationship
between digital technologies and both old and newly emerging theories..............................5
CONCLUSION................................................................................................................................8
REFERENCES:...............................................................................................................................9
Books and Journals.................................................................................................................9
Online.....................................................................................................................................9

INTRODUCTION
Digital businesses use advanced technologies so that they can effectively create new
business values in their customer experiences, business models and enhance internal capabilities.
The products and services of an organisation can be transformed and upgraded with the help of
introduction of new technologies in operations (Pantano and Vannucci, 2019). This report is
based on Amazon which is multinational technology company majorly focus on cloud
computing, e-commerce, artificial intelligence, digital streaming, etc. it was founded in 1994, 5
July in Washington, US. The founder of Amazon is Jeff Bezos who offer number of products and
services in all over the world. This report includes the importance of topic which is blockchain
and how it is developed. Different technological platforms and software are used for this
technology is mentioned in this report. The types of organisations which use this technology are
involved and effectiveness of this business tool is discussed in this report. Different emerging
theories are used in order to discuss relation between digital technologies are mentioned.
MAIN BODY
TASK 1
Importance of blockchain
Blockchain helps in increasing transparency, trust, traceability and security while
businesses share their data across the network. The cost of delivery can be effectively reduced by
organisations with the help of this technology. Amazon enjoys high speed data transfer which
helps them in maintaining healthy relation with their stakeholders (Heavin and Power, 2018).
Amazon deals in large number of services which includes Amazon prime, Amazon music,
Amazon Luna and many more which needs to be managed with the help of technological
platform. The digital records can be easily maintained b y businesses in order to track who holds
what. Businesses enjoy the fact that their data not be deleted, destroyed or altered without any
authority.
How this technology has developed
Blockchain is a Digital Ledger Technology that consist or hold records. This was
launched before 10 years by Satoshi Nakamoto in 2008. This technology was initially developed

for bitcoin cryptocurrency transactions. This was the first digital currency which was
implemented in cryptocurrency in order to resolve the double spending problem (Pencarelli,
2020). Blockchain also considered sometime as a payment rail along with used in the business
operations. It works with the help of multistep process which describes that an authorised person
can input a transaction which should be authenticated. Currently, at least 1000 blockchains are
there along with four types of network. It has transformed the scenario of businesses by adding
utility in their operations. Amazon also uses two networks of blockchain which are Ethereum
and Hyper ledger fabric.
A detailed description of the technology used in this topic and what it is used for.
The technology which is used in blockchain is encryption and hashing in order to
maintain the security of data. It majorly rely on SHA256 which secure information in appropriate
manner. It is decentralised which maintain the record of different digital assets which can not be
modified for the further use (Sahut, Iandoli and Teulon, 2021). Amazon uses blockchain which
secure their payments and other transactions so that they can eliminate unnecessary risk and
threat. Different types of blockchain technologies are private blockchain, public blockchain,
hybrid blockchain and consortium blockchain. It is used by organisations to eliminate hacking,
cheating, alteration and theft of confidential data. Intangible assets can be secured in appropriate
manner with the help of blockchain which make operations and transaction more easier for the
individuals.
What are the technological software and platforms are used in the blockchain?
Blockchain uses solidity which is among the one of highly popular languages. It is
influenced by python, C++ and JavaScript as it is majorly designed to assist Ethereum Virtual
Machine(EVM). The other platforms which are used by blockchain are Qurom, R3 Corda,
Ripple and many more (Asgari, Naimi-Sadigh and Abdolshah, 2019). All these assist Amazon
also in managing their intangible assets including transactions which makes them more loyal and
trustworthy. The security which is maintained with the assistance of this technology increase the
value of organisation among customers. These technologies which are used by blockchain are
highly recommendable in order to maintain the safety purposes. Each platform is unique in their
own way which provides positive factor to an organisation in order to grow and expand their
business.

What type of business and organisation uses blockchain?
Large number of businesses can use blockchain in their operations in different cases so
that they can increase the utility of their services. Organisations which are involved in the
operations of supply chain, insurance, healthcare, real estate, government and many more. It was
majorly used in the banking sector but later on it is used by number of industries. Organisations
like Barclays, Unilever, Shell, British airways, it assist them in maintaining the smart contracts
which eliminate the requirement of middlemen and third party or evaluator (Marushchak and
et.al., 2021). It transform the operations of businesses by improving their regular activities which
increase the engagement rate of the customers. Varied number of organisations can uses this
technology in order to safe their consequentiality which is important for achievement of
competitive advantages. The potential of blockchain has provided number of solutions to the
organisations which improves their productivity.
How is it used as a business tool and is this effective?
Businesses used blockchain in maintaining better transaction which does not involve any
third party. It build trust and efficiency of the organisation which results in improvement of their
revenue generation in appropriate manner (Büyüközkan and Göçer, 2018). Participants who have
permission can only access the data and transactions which can eliminate risk from the
operations. Amazon have increased the loyal customer base with the assistance of block chain in
their organisation. They maintain their appropriate supply chain, payment of employees, cloud
storage and many other operations. It increases their product delivery efficiency which was
slower in the past.
Task 2
How does this relate to course content and discussion on the nature of the relationship between
digital technologies and both old and newly emerging theories.
Digital technology plays important role in changing the scenario of business which is
according to the current market trends. Amazon uses blockchain in their operations which
improves their brand image in the market. Their management structure is changed and updated in
effective manner which help them in increasing their profitability. Technology make operations
according to the requirements of customers which proves beneficial for both customers as well as

for organisations. Some of the old and newly emerging theories which are used in business and
management structure is mentioned below:
Decision making theory: This theory shows the choices of individuals in context to
particular topic. It assist organisations in deciding best alternative for their operations so that
they can generate higher revenues (Bennett and McWhorter, 2020). Amazon uses decision
making theory before indulging themselves in important activities. This includes three types of
uncertainty which are consequences, states and actions. It have two branches which are
normative decision theory and optimal decision theory. Normative generally analyses outcomes
of decisions and decide final alternative based on that particular outcomes. On the other hand
optimal decision theory works based on the assumptions of an individuals in order to carry out
effective decisions.
Quantitative theory: This theory is based on approach which suggest organisations have
to use mathematical techniques and computers in order to solve complex issues which are related
to management. Amazon also uses this approach in some of their areas so that they can formulate
effective decisions for better growth. This theory consist of three branches which are operations
management, management science and management information system. All these assist
organisations in analysing the factors of respective field so that they can formulate best possible
decisions for their operations. Quantitative techniques like information models, statistics,
computer simulations and other techniques allows organisations in improving their decision
making strategies.
System theory: It is the interdisciplinary study which is interdependent components and
cohesive groups that can be human made and natural. Adaptation of the changing component
assist organisations in improving their operations (Kane, 2019). The basic elements of this theory
is process, output, feedback and input. This is open system which keeps evolving and emerging
with the help of interaction with the respective environment.
Contingency theory: This theory suggest that leaders should make plans for increasing
the effectiveness of an organisation. Leaders of Amazon uses most effective leadership style for
influencing the teams so that they can manage operations in better manner. The employee
turnover rater can be managed appropriately with the help of this theory. Specific situations can
be easily handled with the help of making contingency plans which is appropriate for the
business environment.

Online businesses uses various types of e commerce models in their operations which
assist them in conducting operations in appropriate manner. Market segmentation plays
important role in identifying best e commerce model. Amazon uses number of business models
which are mentioned below:
Business to consumer (B2C): This suggest that businesses sell their products and
services to end users with the help of middlemen and third party. They involve retailers and
whole sellers in the process of delivering products in appropriate manner. Amazon sell wide
variety of products to large number of customers in all over the world. Their virtual presence of
business helps them in increasing their revenue generation rate to great extent. This assist them
in maintaining direct relation with their customers which increase their sales in appropriate
manner. this eliminates the risk of alteration in products and services by their party which is
positive factor for organisations.
Business-to-business (B2B): Organisations who offer their products and services to
other businesses in order to generate revenues out of it (Plumpton, 2019). Amazon sell large
number of electronic items and other products to various organisations so that they can further
sell them to their final customers. The prices in this are negotiable which can be a positive factor
for organisations. The organisation and their business customers develop healthy relationship in
order to involve in better business. Different organisations purchase products from Amazon in
bulk which generates higher profits.
Subscription based models: Some of the application based businesses offer their services
through the option of subscription. One time purchase option is also offered by Amazon for their
various services such as Amazon prime. The services availed by customers for their
entertainment purposes. Company earns revenues with the help of monthly or annually
subscription. Regular incomes which are earned by subscription assist organisation in
maintaining their sustainability. Customers can pay their subscription monthly by paying equal
amounts or annually in one go.

CONCLUSION
From the above report it can be concluded that digital businesses provide advanced services
in short period of time. Technology reinvents the operations according the requirements and
current market trends which results in better growth and expansion. Use of internet improves the
customer experience to great extent which results in better growth and exposure of a business.
This report includes about technology which is used by organisations in order to upgrade their
services. Description and importance of technology is discussed in this report. Different
technological platforms which are used by this technology are also mentioned in this report. How
individuals use this technology as business tool is discussed in this report. Different old and new
emerging theories on the structure of business and management is discussed.

REFERENCES:
Books and Journals
Asgari, T., Naimi-Sadigh, A. and Abdolshah, M., 2019. Developing new strategies in the
banking industry based on digital technologies. Strategy, 28(3), pp.5-34.
Bennett, E.E. and McWhorter, R.R., 2020. Digital technologies for teaching and learning. 2020
Handbook on adult and continuing education, pp.177-186.
Büyüközkan, G. and Göçer, F., 2018. Digital Supply Chain: Literature review and a proposed
framework for future research. Computers in Industry, 97, pp.157-177.
Heavin, C. and Power, D.J., 2018. Challenges for digital transformation–towards a conceptual
decision support guide for managers. Journal of Decision Systems, 27(sup1), pp.38-45.
Kane, G., 2019. The technology fallacy: people are the real key to digital
transformation. Research-Technology Management, 62(6), pp.44-49.
Marushchak and et.al., 2021, September. The Economy of Digitalization and Digital
Transformation: Necessity and Payback. In 2021 11th International Conference on
Advanced Computer Information Technologies (ACIT) (pp. 305-308). IEEE.
Pantano, E. and Vannucci, V., 2019. Who is innovating? An exploratory research of digital
technologies diffusion in retail industry. Journal of Retailing and Consumer
Services, 49, pp.297-304.
Pencarelli, T., 2020. The digital revolution in the travel and tourism industry. Information
Technology & Tourism, 22(3), pp.455-476.
Plumpton, D., 2019. Cyber-Physical Systems, Internet of Things, and Big Data in Industry 4.0:
Digital Manufacturing Technologies, Business Process Optimization, and Sustainable
Organizational Performance. Economics, Management & Financial Markets, 14(3).
Sahut, J.M., Iandoli, L. and Teulon, F., 2021. The age of digital entrepreneurship. Small
Business Economics, 56(3), pp.1159-1169.
Online
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