Digital Business: Key Trends, Benefits, and Implications for Managing Online Businesses

This document explores the key trends, benefits, and implications of digital technology for managing online businesses in the international marketplace. It focuses on Zalando, a global e-commerce company, and discusses how digital technology improves productivity, customer experience, and profitability. It also covers new digital business models, cyber security measures, the impact of strategic alliances, and the use of e-commerce principles in driving sales and building trust.

Digital Business

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Determine key trends and benefits of digital technology and implication for managing digital
businesses in the international marketplace in the context of the chosen organisation...............3
Determine new and emerging digital business models in the context of key business issues that
your chosen business uses or may use.........................................................................................5
Discuss the impact of new collaborative relationships and strategic alliances through digital
technology for your chosen business...........................................................................................8
Evaluate how e-commerce principles could be used by your chosen business...........................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
With rising technological advancement, digital platforms have become easier for
businesses to reach out the target customers. Digital technology helps to deliver value to the
customer by accumulation of resources which not only turns profitable to the business but
convenient for the customers as well. Through digital technology the businesses can easily
operate in international market. Digital technology reduces the cost of the business be it
advertising, fixed assets and other business related cost, businesses can switch to digital
platforms over the traditional businesses to improve profitability, customer satisfaction and attain
competitive advantage in the marketplace. In the context of the Zalando Which is an e-commerce
company that delivers apparels to the customers. This company Is founded in the year
2008, headquartered in Berlin, Germany. The founders of the company are David Schneider and
Robert Gentz. It is on Digital e-commerce company delivering fashionable apparels to the
customers, a global business operating in more than 17 countries. In order to deliver supported
examples to the report, Zalando is the chosen organisation, this report covers key trends and
advantages of digital technology and implication for managing the online business in the global
market place, new digital business model in context of business issues such as cyber security and
ethics, impact of collaborative relationship and strategic alliance through digital technology, e-
commerce principles (Bärenfänger and Otto, 2015).
MAIN BODY
Determine key trends and benefits of digital technology and implication for managing digital
businesses in the international marketplace in the context of the chosen organisation
Key trends in the digital technologies discussed as:
Internet of things(IoT)
Internet of things is an Emerging trend in digital technology. Which means connecting different
devices to the internet. The internet of things in future will help to connect each of devices such
as home appliances or even car to the internet. With the forecast research that by 2030, there will
be around 50 billion IOT devices. Internet of things are massive web of connected devices via
Internet platforms (Berghaus and Back, 2016). These helps businesses in order to exchange

information with businesses and other organizations that improves the standard of business
functioning. With internet of things Businesses specially e-commerce businesses can connect to
each and every consumer irrespective of the location, there in the consumer just need to have a
strong Internet stability and a smart phone to connect to the e-commerce businesses. Zalando
Uses internet of things in order to get access over relevant customer information and
communicate to the targeted customers via internet.
5G
5G is an emerging and advanced trend in the digital technology that would revolutionize The
lives of people. From businesses to the consumer 5G will add value Over internet. 5G will enable
do hands on advanced technologies like AR and VR. businesses it would help to improve smart
retail, safety and traffic management and other utilities, wherein consumers could have axis two
advanced technologies and improve services. By the end of 2022, dissociation would adopt a 5G
technologies in order to communicate one-on-one to the consumers and improve the customer
experiences by adopting advanced technologies.
Edge computing
The advanced technologies such as cloud computing has become an important tool for
businesses. Edge computing act like many data centers that can be accessed even from remote
location. The association uses cloud computing in order to store relevant business data using
internet platforms. The businesses do not have to make physical units of storing in maintaining
the data, it not only saves the cost but it is one of the most important and secure technology that
helps businesses in order to store and maintain important data of the business (Boojihawon and
Ngoasong, 2018).
There are different set of benefits from the digital technology that benefits Zalando in many
ways, these benefits are discussed below in brief:
Improved productivity
Digital technologies help to improve productivity at work by adopting to technologies such as
cloud productivity solutions that can help the employees in order to work at a very effective rate.
adapting to digital technologies a business can collaborate with other teams and ensure better

working in the organisation. The quality and accuracy in the work by adoption to different
technologies which reduces the workload and leads economical to the organisation. In Zalando,
the managers and executives of the business collaborates with teams and other organisation to
enhance productivity by adopting applications and software in order to rightly manage different
task assigned, meet the targeted expectations of the business. Apart from that as Zalando is an e-
commerce business, adopting to latest trends in the digital technologies such as cloud services,
5G networks and internet of things or some digital solutions that the business uses in order to
manage business functioning and performance (Coupey, 2016).
Improves customer experience
It is no brainer that using digital technologies improves customer experience in many ways. The
association Uses online presence wherein customers irrespective of the location can access to the
services of the company with limited internet connectivity, where in a customer just needs to
click and the company delivers the products at the doorsteps. Moreover, the customers can
frequently communicate to the business and can actually get whatever they are looking for all
together in their e-devices. thus, the improved customer experience helps the business to develop
a strong consumer relationship that draws traffic in the online presence of the business.
Improves profitability
Digital technology improves the profitability of the business, Zalando does not spends on
unnecessary cost on acquiring fixed assets such as infrastructures, land for physical outlet,
marketing of the products and services and saves other business cost. With easy customer reach
the business can communicate with the targeted consumers and deliver the marketing objectives
through different social and online platforms. The business records the customer responses from
email platforms and websites and also adopts flexible improvements in the offerings delivered
(Darics. ed., 2015).
Determine new and emerging digital business models in the context of key business issues that
your chosen business uses or may use
The association uses different cyber security measures in order to prevent the business
data from any threat and data stealers. Cyber security is important to both businesses and
customers to prevent any risk of loss of data of the business and the personal information of the

customers. There are different new and emerging business models adopted by the association in
order to combat with the business issues such as cyber security and business ethics, these are
discussed below in brief:
Use strong passwords
As Zalando is an e-commerce website where a good online security is must. The business asks
its customers to set a strong password for secure transactions. When customers sign ins to new
accounts in the company’s website, there are certain guidelines for setting a strong password
such as combination of capital and lowercase letters, using approx. 12 characters, avoid the use
of any personal information, changing the password frequently, using to fact authentication.
Apart from that the association also sets a password policy in order to practice security in the
organisation the business adopts to different technologies such as scheduled password reset in
order to ensure security and in first password policy (Härting, Reichstein and Schad, 2018).
Control access
The business adopts two operating systems and network software is in order to control the
physical access of computer networks and manage security levels by distracting the control to
unauthorized users. Other approaches used by the business limit exchange of email certain types
attachments, limit the access of data service.
Firewall
Firewall is a crucial security measure used by the association in order to practice security of the
important business data. Firewall acts as a wall or gatekeeper between the system of the business
and internet. The major benefit of firewall is that it helps to prevent from all cyber threats and
data hacking. Zalando have proper firewall set up with timely firewall updates to make it more
effective.
Update programs in system regularly
Updating the programs and the system is an important measure taken by the association in order
to ensure that the embedded programs are free of bugs and other vulnerabilities. It also helps to
avoid falling prey to the data Steelers with malicious intent (Larjovuori and et.al., 2018).
Security software

The association adopt software such as anti-spyware, anti-malware, and antivirus in order to
detect any such viruses and malware in the network and implement corrective measures to
remove any such unauthorized code.
Raise awareness
The most important measure taken by the association is that the executives where is the
employees and the working staff about the data security and assigns responsibilities to ensure
data privacy and security. In order to do so, the employer renders training and proper guidance
about cyber security so that all employees rightly understand their responsibilities (Leischnig,
Woelfl and Ivens, 2016).
Monitor for intrusion
Intrusion detectors helps to monitor the computer systems. Wherein such detectors quickly detect
any suspicious threat and delivers and message Such as email alerts to the business.
Secure configuration
Configuration management helps in order to detect any such threat and vulnerabilities that can
increase the risk of data loss. Secure configuration helps to improve the security of the systems,
it removes any unnecessary functionalities and fixes the unknown bugs and vulnerabilities.
Network security
Zalando is an e-commerce company which connects to different networks via internet, thus, the
business is grown and exposed to potential attack. Network security simply helps the business
system and technologies embedded, the business is prone and exposed to potential attack.
Network security simply protects the technologies and software embedded in the system by
unknown attacks, the business focuses on delivering network security of where the data is stored
and processed and the grey areas of the business which can act as an opportunity for attackers to
steal the data (Libert, Beck and Wind, 2016).
Managing user privileges
The Association avoids rendering any unnecessary privileges to the data users and the customers
of data access rights as this would increase the risk of miss use of the business data. Thus, the

business executives of the Association limit the privileges of the users to access the business
data.
Discuss the impact of new collaborative relationships and strategic alliances through digital
technology for your chosen business
Strategic alliance and collaboration helps the business in different ways where it
improves the productivity, reduce uncertainties, helps to attain competitive advantage, improves
financial capabilities of the business and delivers many other business opportunities in the
marketplace which is crucial for any business to achieve growth and stability. Zalando builds
collaborations and strategic alliance with other businesses in order to carry the business
functioning in the most ethical manner. The impact of strategic alliances and collaborations are
discussed below:
Zalando works in collaboration with cloud computing software providing businesses in order to
manage the storage of business data. Cloud computing software are such platforms that stores
and maintains the data wherein The businesses do not need to maintain physical data centers.
Strategic alliance with organizations providing edge computing positively impact the business as
the Association do not need to spend on maintaining physical data centers which saves huge
business cost, maintains privacy and security of the data, Zalando does not have to think about
maintaining the Big data, it is the most convenient approach where the association collaborate
with the other organisation and they are very small sum of money wherein association can access
the data from any location with the help of the electronic devices from limited or no internet
connectivity (Sathananthan and et.al., 2017).
Zalando works in coordination with businesses that provides research and development
approaches. In the fast growing dynamic market it becomes important to analyze the market
trends and changing customer preferences so that the business can adopt favourable policies to
with stand in the marketplace. Research and development is A crucial tool which helps the
business to gather information about current market trends and customer needs. Strategic alliance
with such businesses helps in greater way that benefits the business to develop products that best
matches and satisfies the market demand. With the help of market research, the Association
carries further marketing and product development strategies of the business, the strategic
alliance with such businesses also helps to evaluate the effectiveness of the of offered products to

the customers which further benefits the organisation to adopt desired improvements in the
product aspect the changing customer preferences. When business rightly address the customer
satisfaction and needs when business rightly address the customer needs and market demand the
business attains its profitability and sales margin, further strategic alliances with such business
also helps to conduct the market analytics by determining the consumer perception of the
delivered products, that supports the business to make right decisions pertaining to the product
improvement, drop of the products, and continue more supply of the products in the marketplace,
when the businesses are able to do such, it largely helps the business in order to attain
competitive advantage by building strong consumer perception and brand identity.
Evaluate how e-commerce principles could be used by your chosen business
The different e-commerce principles adopted by the association in order to improve the
consumer engagement, these principles are discussed below in brief:
Build trust
The association builds trust and a strong consumer relationship but delivering transparent
information about the business. In the e-commerce website of the association the business deliver
clear information of each product that how is it made all the fabric used, who makes it and other
relevant information about the product. It helps to earn trust of the customers wherein a
consumer enjoys taking services of the company when it delivers transparent and true
information about the offerings delivered (Seo, 2017 ).
Drive sales with the blog
The society news blogging in order to deliver more Detailed information to the consumers. The
blogs contain all the FAQs, and other related information about the Delivery, the distribution
channel the product, that helps the consumer to feel more reliable and comfortable for making
purchase.
Using high-quality photos and videos
It is no-brainer that visual contents Attracts the consumers to purchase the products, the high-
quality in HD videos in the websites reinforce the brand identity and delivers right information to
the consumers. In majority of cases consumers Make online purchases by checking the reviews

and images uploaded by other customers, but checking at the images and reviews the Consumers
are able to get reliable information and influence them to make for the purchase. Thus, Zalando
Uses high-definition photos and videos to deliver all the relevant information to the consumers
about the product.
Email communication
Email communication is an effective tool in order to engage with the targeted consumers. The
association uses email communication with the specified and important customers to give them
updated information of the release of new product, prices and discounts, information about the
purchase made, payment history and all such relevant information to the consumers in order to
promote effective communication. The association also uses email communication in order to
collect consumer feedbacks of the services offered by the business. Apart from that email
communication also helps he business in order to deliver the marketing objetives by promoting
the new products and flash sales to the consumers. Email communication thus play an important
role that not only improve communication but helps to build strong consumer relationship
(Vendrell‐Herrero and et.al., 2018).
Make paying easy
When consumer makes final decision of purchase, the checks the payment option. The
association uses easy as possible payment option so that the customers faces no inconvenience
while paying. The association also delivers right information about the shipping cost, return
policy, the discounts and the total payment information to the customers.
Improve page loading speed
When consumers serve on the internet for making of online purchases, the customers show very
little patience and leaves such site with which takes huge time for page loading. Thus, the
association develops online platform by browser caching, reducing redirect, reducing file sizes of
images and videos in order to improve the page loading speed
Use good UX design
It becomes crucial to use a good UX design where in the association uses easy site navigation,
engaging pages, detail information, menus in order to attract the customers. A good UX design

also helps to differentiate the website as compared to the other businesses in the marketplace
(Wirtz, 2019).
Make the shopping process easy
Zalando uses easy steps to complete the purchase transaction such as navigation to buy,
checkout, Wish list, add to cart and other button easily and clearly visible. The association uses
measures in order to improve the customer experience so that the customers feels comfortable
and convenient while shopping in the company site.
CONCLUSION
Thus, above report delivers how digital technology helps businesses in order to establish
global market presence. Digital technologies not only reduce the business cost but also helps the
business to easily reach the target market. Digital business has turned the most cost-effective and
efficient technique of reaching out the customers and bringing accuracy and Quality business
engagement to meet out the business objectives. The above discussion clearly states the
advantages of digital technology in the global environment wherein the businesses have to take
measures to focus on delivering effective message rather than spending on unnecessary
traditional business approaches, different digital models in order to cope up with the business
issues, how positively or negatively the collaborative and strategic alliance through digital
technology impacts the business, e-commerce principles which any business needs to take for
developing and effective digital business plan.

REFERENCES
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