Advantages and Trends of Digital Technology for Managing Virtual Business

This report discusses the advantages and trends of digital technology for managing virtual business in a global environment. It explores the key trends such as data analytics, digital security, cloud computing, and robotics. The report also highlights the advantages of digital technology, including enhanced data collection, data-driven customer insight, cost reduction, increased selling opportunities, and a larger target market. Additionally, it examines the influence of new collaborative relationships and strategic alliances through digital technology and discusses how e-commerce principles can be implemented by businesses.

INDIVIDUAL
REPORT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Define key trends and advantages of digital technology and implication for managing virtual
business in global environment...................................................................................................3
Determine new and emerging digital business models in relation to business issues related to
cyber security and ethics for selected business............................................................................6
Identify the influence of new collaborative relationships and strategic alliance through digital
technology....................................................................................................................................6
Argue how e-commerce principles can be implemented by business.........................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Digital business uses technology to create a new value in business models, customer
experience and the internal capabilities that supports its core operations. Digital business takes
benefits of information technology to perform the daily operations of business to gain strategic
opportunities (Blaschke and et.al, 2017). In other words, digitalization or digital transformation
has been a medium of opting digital technology for operating all managerial activities and
functions of business.
Amazon is an American multinational technology company which offer various services
such as- e-commerce, cloud computing, AI and digital streaming. The company was founded by
Jeff Bezos in the year 1994. There are various subsidiary companies which are operating under
the label of amazon, some of the subsidiary companies are Audible, Zappos and many more.
Amazon offers opportunities to individual as well as business to sell and display their products
for sale on their e-commerce platform through which they can attract and gain huge customer
insight. Amazon is one of the largest online e-commerce retailer and have strong brand image in
the industry.
This report revolves around the advantages and trends of digital technology and how
business in managed virtually. The report will define digital business models related to the issues
faced by business and its impact on the collaborative relationships and strategic alliance and how
e-commerce principles are implemented on business.
TASK
Define key trends and advantages of digital technology and implication for managing virtual
business in global environment
Digital Technology- Digital technology are system, devices and resources which are
helpful in generating, storing and processing data. Therefore, these are electronic tools which
support a business to perform their function is with the help of technology (Chi and et.al, 2018).
Amazon is one of the leading company which uses and offers e-commerce services through
which the products can be sold. Some of the trend and advantages of implemented e-commerce
and digital technology has been explained underneath:

Trends and implication of digital technology for managing operations of business
Digital transformation facilitates the use of digital technology in daily operations of
business which helps in delivering value to customers. There are various trends of digital
technology and transformation which are opted by business to perform their functions and
activities. Some of the digital trends and their implementation for managing operations of
Amazon are discussed below:
 Data Analytics- Data analytics is the process of examining data sets for determining
trends, analyzing the data and raw material through which decision and conclusions can
be made (Coupey, 2016). Data analytics enables individuals and organization to
understanding and making sense of data which has been collected.
 Digital security- Digital security can be described as the resource which helps in
protecting the online data and other assets and information of the company. It is one of
the most required trend in the current era of digital business which helps business to
ensure data security of all the collected data and information from competitive business
scenario.
 Cloud computing- Cloud computing is one of the famous trends of digital technology
which has been used by many companies. Cloud computing is the delivery of computing
services which involves- services, server, storage, networking, analytics, database and
other services. In other words, it is related to on demand availability of computer system
resources specially data storage which is cloud storage without direct active management
by the user. Amazon Web services (AWS) changed the hosting industry for goods and
has been one of the drivers of success for the business.
 Robotics or AI- Robotics or artificial intelligence is another key trend of digital
technology which business is performing to meet the daily operations in an innovative
and effective manner that can support in meeting business objectives and performance
standard and can be helpful in gaining competitive advantage by making progress
towards success (Darics, ed, 2015). In relation to Amazon, the company introduced
Amazon robotics which helps the company in managing daily operations and move
products from one place to another that can be helpful in meeting the fulfillment of the

center. It also supports in reducing time, saving space, enhancing innovation and
technology in the workplace that can help in completing the work effectively and quickly.
Advantages of digital technology for managing operations of business
Digital technology drives various benefits advantages to business. Some of the
advantages of digital technology for Amazon has been outlined below:
 Enhanced data collection- As business collects huge amount of data related to
customers which offers real benefits to business in optimizing data for analysis and it can
drive business towards success (Holotiuk and Beimborn, 2017). Digital Technology
supports Amazon in collecting appropriate data which helps the business in converting
raw material into insights and helps in gathering all necessary and valuable information
that can be helpful in meeting customer demands.
 Data driven customer insight- Digital technology helps business to gain data driven
customer insight through which business can gather more data related to the demands of
customers through which the demands can be met and it helps Amazon to collect all data
driven data related to the customers which is more factual and helps company to meet the
demands of their customers globally.
 Cost reduction- Digital technology and e-commerce platforms offers easy and affordable
infrastructure to maintain the stores which lead to reduction in cost and decline in
overhead cost. In relation to Amazon, the company use digital technology through which
they offer opportunity to various sellers which helps in reducing the inventory cost and
other overhead cost which can be faced by the seller and business.
 Increased selling opportunities- Digital technology brings more selling opportunities by
providing an e-Commerce platform for seller which will help the seller in delivering their
products globally (Ismagilova and et.al, 2017). Amazon has gain various advantages with
the help of their E-Commerce platform as it supports seller to deliver their products
nationally as well as internationally which increases selling opportunities and target
market for the seller.
 Larger target market- E-Commerce and digital technology allows business to reach
customers all around the globe, as customers can make purchases anywhere and anytime.

In relation to Amazon, digital technology and e-commerce platform has been one of the
major source of selling the goods and services to large number of customers worldwide
and offers opportunity to seller to promote and sell their goods globally.
Determine new and emerging digital business models in relation to business issues related to
cyber security and ethics for selected business
Cybersecurity refers to the safeguarding of internet-connected systems, including
hardware, software, and data, from cyber threats. The term "cyber ethics" refers to a set of
guidelines for ethical online activity (Kaplan and et.al, 2015). We must act properly in the cyber
world just as we are taught to act responsibly in normal life with principles like "Don't steal what
doesn't belong to you" and "Don't injure others."
For businesses dealing with digital disruption and digitalization, developing digital
business models is a critical challenge. A first stage, but not a separate digital business model, is
the addition of a digital component to an existing analogue business model (e.g., online ordering
of products from a stationary shop). As per 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, businesses considering cloud computing consider security to be
a key issue, according to "Computer World." Their primary concerns are how to control who has
access to their data, the risk of data leakage due to human error, and how much access Amazon
will have to the data it stores on their behalf.
Digital business model
A digital business model is a way of producing value by leveraging digital technology to
generate consumer advantages. The goal of the digital solution is to provide a substantial benefit
for which clients are ready to pay a surcharge. Amazon use E-commerce business model through
which they can provide services worldwide and covers larger geographical target market.
Although e-commerce has risen in leaps and bounds in recent years, it still faces a number of
ethical challenges. One issue that has piqued the interest of computer experts is security
(Larjovuori, Bordi and Heikkilä-Tammi, 2018). Security risks in E-commerce are only going to
grow in the coming days as new software raises the price in search of better security.

Identify the influence of new collaborative relationships and strategic alliance through digital
technology
Collaborative relationship- Collaborative partnership is the relationship between
collaborative partners which can be helpful for long term partnership which rely on one another.
This rely on participation of atleast two parties who mutually agree to share various resources
such as knowledge, personnel and people.
Strategic Alliance- Strategic alliance is the agreement between agreement between two
or more parties through which they can pursue and accomplish the desired objectives.
Strategic alliance and collaborative relationship can help business to collaborate and
work mutually through which they can accomplish the targets and organisational objectives.
Digital technology can influence the strategic alliance as this can create an impact on the
operations of the company (Leonhardt and et.al, 2017). Strategic alliance of Amazon is with its
suppliers, in which the company offers e-commerce platform through which suppliers can
promote, share and sell their products on the platform that can be a medium for generating higher
revenues and targeting large number of customers. Some of the impact of collaborative
relationships and strategic alliance through digital technology for Amazon are discussed below:
 Target market- Organizations can affect their markets in the digital economy by
collaborating more effectively with creative startups to collaboratively develop new
goods and services. That implies businesses should not only fund but also actively engage
in startup innovation by sharing ideas, assets, and intellectual property. Through strategic
alliance Amazon offers opportunity for their suppliers to sell their products on their e-
commerce platform through which they can target large number of customers
geographically and generate higher revenues. Strategic alliance and use of digital
technology helped suppliers to understand the demands of their customers and brings
advantages through which they can use innovative approach for selling their goods and
services.
 Share risk and benefits- It will also necessitate new methods to more equally share risks
and benefits. Large organizations must recognize that cooperation cannot continue to be
done on their terms, on their premises, or just for their benefit on the road to innovation
(Morabito, 2016). It will also demand new strategies for sharing risks and profits more

evenly. On the journey to innovation, large organizations must recognize that cooperation
cannot be done on their terms, on their grounds, or just for their benefit.
 Ability to meet customer demands- If properly utilized, technology's tectonic changes
may have a significant influence on corporate success and consumer happiness.
Partnering with another firm has the potential to strengthen business digital offering and
promote growth but it also has the ability to limit competition. In relation to Amazon, the
strategic alliance of the company is with their suppliers which helps the company to meet
the demands of their customers on time by using their timely delivery of the products and
services which helps the company in meeting the demands of their customers on time that
can be a helpful approach for maintaining the rand image of the company the industry.
 Infrastructural innovation- Through collaboration and strategic alliance and effective
digitalization will be a helpful approach for enhancing the infrastructure and brining
innovation through which the functions of the business and collaborative companies can
be carried out effectively (Nwaiwu, 2018). In relation to Amazon, the company use
infrastructural innovation through collaboratively working with their sellers which helps
them in saving cost, managing inventories easily and will be a helpful strategy through
which they can meet the demands of the customers by gaining better customer insight and
meeting timely demands which will make business more profitable.
In relation to Amazon, the company use strategic alliance and collaborative working
through which they can work with suppliers and other sellers which will helps the business in
meeting customer demands, enhancing business innovation and creates opportunity for business
to maintain a win-win situation for both the parties.
Argue how e-commerce principles can be implemented by business
E-commerce has been one of the source of the business through which many companies
sell their products to large number of customers globally. There are several principles which
must be followed by business while operating through an e-commerce website. In relation to
Amazon, there are several e-commerce principles which are followed by the company, some of
the principles are described below:
 User- friendly- E-commerce website should be easy to navigate and have easy search
process which supports user to reach various pages or products (Otto, Bärenfänger and

Steinbuß, 2015). Amazon focuses on making website user friendly which helps them in
meeting the customer demands by offering details and pictures of the products which
help the customers to understand the products which are offered and make it more
realistic and a reliable source.
 Know your target audience- The company must regularly check on the demands of
their customers which will be helpful for understanding the changing demands of their
customers and their buying patterns. Such approach will be helpful in enhancing the user
experience and generate higher revenues (Remane and et.al, 2016). Amazon focuses on
regularly analyzing the buying patterns of the users which helps the organisation in
meeting the demands of their customers by identifying their buying patterns.
 Effective product description- Business must give effective and full product description
of the selling products and service which has been provided by their e-commerce
platforms through which they can ensure trust and reliability of the products and services
which are rendered by the company. In relation to Amazon, the company focuses on
giving full products description of the product which are sold on the e-commerce
platform of the business which helps them in helping customers in forming effective
decision and generate higher revenues and maximum profitability.
 Minimalistic layout- The layout of the e-commerce business must be minimalistic and is
the best approach which emphasizes simplicity, use appealing typography and by using
right design elements will be helpful for developing the site effectively and customers
will be able to load the website effectively. Amazon use minimalistic layout of their e-
commerce website and focuses on delivering full and reliable information and details
regarding the products which are sold by the company through which they can make
easier approach for their customers to shop from their webpage.
 Using type and color to influence- The company must use type and color to influence
the customers as the branding and logo will act as representative which will be a driver
for attracting and retaining more customers (Schumann and Tittmann, 2015). In context
of Amazon, the company use effective typography and designing through which they can
convince large number of customers and promote their products and services which are
sold on their e-commerce platform. Amazon use logo of the company which helps them
to differentiate their brand from other competitor companies.

 Add search option- The search option is more indispensable, as when the customers are
looking for a specific product to purchase the search option can be most helpful for
meeting the demands of their customers. By adding the search option, it will be helpful
for the customers through which they easily find the products which has been required by
the customers (Seo, 2017). In relation to Amazon, the company use search option on their
website and e-commerce platform through which they help their customers to find the
required product easily on their website that can make the work of their customer easy
and will be a helpful approach for retaining large number of customers.
CONCLUSION
According to the report, it can be summarized that digital technology and digitalization
has been a source which helps the company in performing the daily operation by using
innovative ideas and also help business in facing the competitive business environment. Digital
technology can be implemented through various platforms that ca bean helpful approach for
managing the daily operations of business. It can be seen that there are various approaches and
trends through which a business can implement digital technology in the business, some of these
trends include- Robotics, cloud computing and many others. Such tools and techniques bring
various advantages for business through which they can target larger market area, generate
higher revenues, understand demands of their customers and meet their requirements and
perform the activities easily and effectively. There are several principles of digital technology
which must be followed by business in order to meet the standards and requirements that can
support in performing the function of organisation and meet the organisational objectives
regularly.

REFERENCES
Books and journals