Key Trends and Advantages of Digital Technology for Managing Virtual Business

This document discusses the key trends and advantages of digital technology for managing virtual business in the global scenario. It explores topics such as digital security, cloud computing, data analytics, and artificial intelligence. The document also highlights the benefits of digital technology, including effective data collection, cost reduction, larger target market, increased selling opportunities, and data-driven customer insight. Additionally, it examines the impact of new collaborative relationships and strategic alliances through digital technology for an organization, using Amazon as a case study.

DIGITAL TECHNOLOGY

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Highlight key trends and advantages of digital technology and implications for managing
virtual business in the global scenario.........................................................................................3
Identify new and emerging digital business model in relation to business issues such as cyber
security and ethics for organisation.............................................................................................6
Define the impact of new collaborative relationships and strategic alliance trough digital
technology for an organisation....................................................................................................7
Argue how e-commerce principles can be used by organisation................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Technology can be used by digital businesses to produce new value in business models,
consumer experiences, and internal capabilities that support their core operations. To obtain
strategic possibilities, digital businesses use information technology to execute daily company
activities. In other words, digitalization, also known as digital transformation, is the process of
using digital technology to carry out all management operations and functions in a company
(Baron, 2017). Amazon is a global technology corporation based in the United States that
provides services such as e-commerce, cloud computing, artificial intelligence, and digital
streaming. In the year 1994, Jeff Bezos started the company. Audible, Zappos, and a number of
other subsidiaries operate under the Amazon brand. Individuals and businesses may sell and
advertise their items for sale on Amazon's e-commerce platform, allowing them to attract and
acquire valuable consumer information. Amazon is one of the most well-known online e-
commerce retailers, with a strong brand image. This research focuses on the benefits and
developments of digital technology, as well as how virtual business is managed. The study will
describe digital business models in connection to business challenges and their influence on
collaborative partnerships and strategic alliances, as well as how e-commerce principles are used
in the workplace.
TASK
Highlight key trends and advantages of digital technology and implications for managing virtual
business in the global scenario
Digital technology- Digital technology refers to the systems, equipment, and resources
that aid in the generation, storage, and processing of data (Berg, Lopez and Berland, 2017). As a
result, these are electronic instruments that assist a firm in performing its job through the use of
technology. Amazon is one of the most well-known companies that uses and provides e-
commerce platforms for the sale of goods.
Key trends of digital technology for managing virtual business in the global scenario
Digital transformation allows businesses to leverage digital technology in their day-to-
day operations, allowing them to provide more value to their consumers. Businesses use a variety
of digital technologies and transformation trends to carry out their tasks and operations. The

following are some of the digital developments and how they've been used to Amazon's
operations management:
 Digital security- Digital security is a resource that aids in the protection of an
organization's online data, assets, and information. It is one of the most important trends
in the present digital business era, as it aids businesses in ensuring the security of all
acquired data and information in a competitive corporate environment.
 Cloud computing- Cloud computing is a well-known digital technology trend that many
businesses have adopted. Cloud computing is the supply of computer services such as
server, storage, networking, analytics, database, and other services through the internet
(Bucci, Schwannauer and Berry, 2019). In other words, it has to do with the on-demand
availability of computer system resources, particularly data storage, which is cloud
storage that does not need the user's active administration. Amazon Web Services (AWS)
transformed the goods hosting sector and has been a key engine of the company's growth.
 Data analytics- Data analytics is a key trend of digital technology which helps in
processing and examine data sets for identifying trends, understanding data and raw
material which will be helpful in forming decisions and getting conclusions. With the
help of data analytics, it will help individual as well as whole organisation to analyze and
understand the collected data.
 Artificial intelligence or Robotics- Artificial intelligence or robotics is the key trend of
digital technology in today’s era which supports a business to perform all managerial
activities effectively. Artificial intelligence has strengthened its roots in the business
industry for years and supports many organisation to perform all managerial task and
activities with the help of such trends that can be a helpful approach for performing daily
operations of business, maintaining performance standards and is also helpful in gaining
competitive advantage by ensuring business progress towards fulfilment of objectives and
organisational success (Casey, Goodyear and Armour, 2016). In relation to Amazon, the
company created Amazon robotics which is a product of artificial intelligence and help
the organisation in forming the daily chores of the business. These robotics helps
Amazon in managing inventory from moving one product to another place. Such key
trends of digital technology are helpful in saving time, cost, place, enhances innovation

and use of technology in the workplace which will be helpful in completing the assigned
job role effectively and efficiently.
Advantages of digital technology for managing virtual business in the global scenario
Business benefits from digital technology in a variety of ways. The following are some of
the benefits of digital technology for Amazon:
 Effective data collection- When a company accumulates a large quantity of data on its
customers, it may provide significant benefits to the company by optimizing data for
analysis and driving the company to success (Dodgson and et.al, 2015). Amazon uses
digital technology to acquire suitable data, which aids in the conversion of raw material
into insights and the gathering of all essential and important information that may assist
in satisfying consumer requests.
 Cost reduction- Digital technology and e-commerce platforms make it simple and
inexpensive to manage storefronts, resulting in cost savings and lower overhead costs. In
terms of Amazon, the firm uses digital technology to provide opportunities to various
sellers, which helps to reduce inventory costs and other overhead costs that a seller and
business may face.
 Larger target market- Clients may make purchases anywhere and at any time using e-
commerce and digital technologies, allowing businesses to access customers all over the
world. In terms of Amazon, digital technology and e-commerce platforms have been a
key source of selling goods and services to a huge number of customers across the world,
and they provide sellers with the chance to market and sell their products globally.
 Incline in selling opportunities- By providing an e-Commerce platform for sellers,
digital technology expands their selling options and allows them to distribute their items
internationally (Falco and Kleinhans, 2018). With the aid of their E-Commerce platform,
Amazon has gained a number of benefits, including the ability to distribute items both
domestically and globally, which expands the seller's selling options and target market.
 Data driven customer insight- Digital technology assists businesses in gaining data-
driven customer insight, allowing them to collect more data related to customer demands,
allowing them to meet those demands. It also assists Amazon in collecting all data-driven

data related to customers, which is more factual and allows the company to meet the
demands of their customers globally.
Identify new and emerging digital business model in relation to business issues such as cyber
security and ethics for organisation
Cyber security is the approach of protecting and safeguarding of interconnected systems
which involves hardware software and data from any unwanted and unauthorized cyber threats
(Huda and et.al, 2017).
Cyber ethics are set of guidelines and protocols which must be followed for or ethical
online activity.
In relation to amazon, it can be seen that the company use suppliers, multichannel and core
business model through which they can target huge number of customers, meet demands of
various customers in many locations and divide the operations of the organisation in different
units through which the operations can be performed effectively and can be helpful in meeting
organisational objectives. Amazon's business model is based on e-commerce, which allows them
to deliver services globally and reach a broader geographical target market. Despite the fact that
e-commerce has grown by advancements in recent years, it still presents several of the ethical
issues. Security is one topic that has attracted the interest of computer experts. Security issues in
E-commerce will only grow in the upcoming period as new software raises the price in search of
more safety. These business models followed by Amazon helps the organisation in creating value
based on development of the customer benefits with the help of using digital technology and
work with the prime motive of generating significant advantage for which customers are willing
to pay the required amount that can lead to incline in sale, higher revenues and maximize the
profitability of the business (Madon and Krishna, 2018). the business model of amazon emphasis
on delivering quality customer experience and the core model involves several business units
through which the functioning of the organisation can be done effectively and help in maintain
the goodwill in the industry. According to Amazon Web Services, customers can restrict access
to their data, and the company uses "proven cryptographic techniques" to validate anybody
seeking to access it. Despite this, "Computer World" states that cloud computing security is a big
worry for businesses. Their major concerns are how to control who gets access to their data, the

risk of data leakage due to human error, and how much access Amazon will have to the data it
manages on their behalf.
Define the impact of new collaborative relationships and strategic alliance trough digital
technology for an organisation
Collaborative partnership is the relationship among collaborative partners which will
be in benefit for long term partnership which is dependent on another. This partnership depends
on involvement of two parties who have mutual consent of sharing different resources which
involves people, knowledge and personal.
Strategic alliance is the agreements between two or more parties which will help all
parties to achieve their objectives (Matzler and et.al, 2018). Strategic alliance and collaborative
partnership enables a business to collaborate and operate through with each other which will aid
in achievement of targets and organisational objectives.
Digital technology is a responsible factor which can create an impact on collaborative
relationship or strategic alliance of a company, as this can usually affect the approach of
performing daily operations. Amazon is one of the leading company which make effective use of
digital technology in their daily operations, as the company offers an e-commerce platform
which creates an opportunity for the suppliers to share, sell and promote their products and an
opportunity for customers to have a diverse range of products which are available on their E-
Commerce platform that can be purchased by the customers. The strategic alliance of Amazon is
with their suppliers where the company allows the suppliers to promote and sell their products
and services which can be helpful for generating higher revenues, increasing sale and
maximizing profitability for suppliers and for Amazon itself. Such strategic alliance between
amazon and suppliers creates an opportunity for suppliers to target large number of customer’s
geographical and enhances the brand value of Amazon in the industry. As strategic alliance can
be influenced through digital technology, some of the impact of collaborative relationship and
strategic alliance through digital technology in relation to Amazon are explained underneath:
 Infrastructure innovation- Strategic alliance, collaborative relationship and digital
technology is an innovative approach for improving the infrastructure and driving
innovation in the managerial operations of the company (McDougall, Readman and
Wilkinson, 2018). In context of Amazon the organisation lead to infrastructural

innovation by collaboratively working with suppliers that supported in saving cost
effectively, managing inventory, saving space, increasing customer insight and
engagement, improved ability to meet customer demand by working together to make
business more profitable and successful.
 Shared profits and risks- Strategic alliance and collaborative relationships facilitates
various new approaches which are helpful in sharing equal profits and risks which will be
faced by all partner organisation. Such practices will require different strategies for
defining the sharing of risk and profit more precisely (Molinillo and Japutra, 2017).
Large business organizations must understand that corporation is not based on the size of
the form or not basically for the single organisation and for that innovative strategies
must be formed which will define the ratio in which the profits and risk will be shared by
all collaborative partners who mutually agreed for such practices.
 Larger target market-In the digital economy a business can affect the target market by
collaborating with creative startups that will help in bringing innovative products and
services to the market that will support in attracting customer attention. For targeting a
large market area, a business must not only involve financial resources but should also
engage actively in sharing ideas, intellectual property and bringing innovation to the
markets. The strategic alliance of Amazon with their supplier’s offers an opportunity to
the suppliers and the platform to sell their products on such e-commerce and digital
platforms which will support in targeting huge number of customers at wide geographical
area and this will help in enhancing the profitability of business and will lead to incline in
sale and revenue of Amazon as well as their suppliers (Odgers and Jensen, 2020). The
strategic alliance of Amazon with various types of suppliers working in diverse fields
creates an opportunity for the business to attract more customers and enhance the brand
image of company in the industry. The use of digital technology in relation to strategic
alliance, support suppliers to understand, analyze and meet demands of the customers that
can drive advantage for both the organizations.
 Ability to meet customer demands- Digital technology helps in understanding the
customer demand and if technological advancement is effectively used, this will enhance
and improve the ability of an organisation to meet customer demand. The change in
digital technology can influence the demand, success and customer satisfaction. Through

collaboration and strategic alliance with other organisation, it creates an opportunity for
strengthening business at digital platform and lead to organisational growth, whereas this
also involves high competition. In context of Amazon the company has collaborated with
their suppliers which supports suppliers as well as the organisation in meeting customer
demand regularly by continuously monitoring and analyzing the market need and using
innovative approaches for ensuring timely delivery of services which are helpful in
meeting customer demand and maintaining the brand image of the organisation in the
industry.
Amazon created strategic alliance and collaborative relationship with their suppliers that
help the organisation in understanding and meeting the demands of the customers, drive
innovation in the organisation, increase opportunities for suppliers, partners and organisation
itself and create and Win-Win situation for both the partners which will be helpful in maximizing
the profitability and sustaining for a longer period of time span in the industry by regularly
updating and using innovative digital technology.
Argue how e-commerce principles can be used by organisation
E-commerce is one of the business models that many firms use to sell their products to a
huge number of people all over the world. While operating through an e-commerce website,
businesses must adhere to a number of standards (Sharma and et.al, 2018). In terms of Amazon,
the firm adheres to a number of e-commerce principles, some of which are listed below:
 User-friendly- An e-commerce website should be simple to use and search, allowing
users to quickly access numerous pages or items. Amazon focuses on making their
website user-friendly, which helps them satisfy consumer needs by providing product
data and images that assist buyers comprehend the items being sold, making it more
realistic and a credible source.
 Identify your target audience- The firm should keep track of its consumers' requests on
a regular basis, since this will assist them understand their changing needs and purchasing
patterns. Such an approach will improve the user experience while also increasing
income (Verner and Merksamer, 2015). Amazon focuses on monitoring consumers'
purchase behaviors on a regular basis, which assists the company in satisfying client
requests by recognizing their buying patterns.

 Minimalistic layout- The layout of an e-commerce firm should be minimalistic, and this
is the ideal strategy since it stresses simplicity, uses appealing typography, and employs
the correct design components, which will aid in the development of the site and allow
customers to load it quickly. Amazon's e-commerce website has a simple design that
focuses on providing complete and accurate information and data about the items that the
firm sells, making it easy for users to purchase from their website.
 Adequate product description- Companies must present an effective and complete
product description of the selling items and services given by their e-commerce platforms
in order to ensure the confidence and dependability of the company's products and
services (Wessel and et.al, 2021). In context of Amazon, the firm focuses on providing
detailed product descriptions for items offered on the company's e-commerce platform,
which assists customers in making informed decisions and generates more sales and
profits.
 Include a search option- The search option is more important because when clients are
seeking for a certain product to buy, the search option may be quite useful in satisfying
their needs. Customers will benefit from the addition of the search option since they will
be able to quickly locate the goods they want. In terms of Amazon, the firm uses a search
option on their website and e-commerce platform to assist their consumers in finding the
necessary goods quickly. This makes their customers' job easier and is a useful strategy
for keeping a big number of customers.
 Utilizing type and color to influence consumers- The firm must use type and color to
influence customers since the branding and logo will serve as a representation, attracting
and keeping more customers (Xu and et.al, 2017). In the case of Amazon, the firm use
good typography and design to persuade a large number of people and advertise the items
and services provided on their e-commerce platform. The corporate logo is used by
Amazon to help identify their brand from those of competitors.
CONCLUSION
Based on the current report, digital technology and digitalization have been a pillar of
support to businesses in executing everyday operations through the use of new ideas, as well as
in dealing with a competitive global economy. Digital technology may be applied through a

variety of platforms that can be a useful tool for managing corporate operations on a day-to-day
basis. As shown, there are a variety of techniques and trends that a company may use to integrate
digital technology in its operations; some of these trends include robotics, cloud computing, and
many more. Technological tools and approaches provide a variety of benefits for businesses,
including the ability to target a broader market area, produce more revenues, understand and
satisfy consumer expectations, and conduct tasks more conveniently and effectively. There are
certain digital technology principles that organizations must follow in order to fulfil the
standards and criteria that can help them execute their functions and accomplish their objectives
on a daily basis.

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