Digital Business: Key Trends, Advantages, and Collaborative Relationships

This document discusses the importance of digital business in today's changing environment. It explores key trends and advantages of digital technology, implications for managing virtual business, and the impact of collaborative relationships and strategic alliances. The document also discusses how e-commerce principles can be applied to a chosen business. The chosen business for this analysis is Amazon.

Digital Business
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Table Of Contents
Executive Summary…………………………………………………………………….3
INTRODUCTION………………………………………………………………………….3
TASK1
1.1 Amazon………………………………………………………………………………3
1.2Provide an overview of key trends and advantages of digital technology and implications
for managing virtual business in the global environment by drawing on your chosen
business………………………………………………………………………………….3
1.3Critically evaluate new and emerging digital business models in the context of key business issues
such as cyber security and ethics that your chosen business uses or may use…………………..5
1.4Evaluate the impact of new collaborative relationships and strategic alliances through digital
technology for your chosen business………………………………………………………………7
1.5Discuss how e-commerce principles could be used by your chosen business………………...9
CONCLUSION………………………………………………………………………………10
REFERENCES………………………………………………………………………………11
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Executive Summary
Digital business is very important in terms of with the changing period of time. It tells
about the key trends in the digital technology and the advantages related to it. And how the
implication of it affect at the global environment. The critical analysis is also required for the
purpose of new emerging digital business. The impact of collaborative relationship and
strategic alliance with the support of digital technology also plays a very important role at the
international level. And the e-commerce principles also contributes into the digital
technology environment which has a very positive impact at the organisational level.
INTRODUCTION
Digital business can be defined in the manner that it uses the technology for the
purpose of creating value in the business models, customer experience and the internal
capabilities which support its core operations. The term includes both digital only brands and
traditional players that transforms the businesses with digital technologies. In the today’s
changing environment, people are spending mostly money on the online mode which has
shifted the business emphasis to digital sources of revenue and digital channels. In this report,
the analysis has been done on the major changes and the related strengths of digital
technology and the implications for managing the virtual business in the global environment.
The analysis has also been done on the new type of digital business with reference to the
issues of business. (Bronson, K., 2019). The research has been done on the impact of the new
collaborative relationships and strategic alliance. The research has also been done on how e-
commerce principles has been implemented into the business. The chosen organisation or
digital business is Amazon. Amazon is an American multinational technology company
which aims for the e-commerce, cloud computing, digital streaming.
Amazon
In the today’s fast moving changing environment there are some key trends which has
been observed in terms of the digital technology. The top trending new digital technologies
of the current year which has been discussed in the following manner.
1.2Provide an overview of key trends and advantages of digital technology and implications
for managing virtual business in the global environment by drawing on your chosen
business
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 Artificial Intelligence and machine learning: Artificial intelligence is already
known for the speech recognition and superiority in terms of image, smart phone
personal assistants, navigation apps and ride-sharing apps. For determining
underlying connections and insights to help predict demand for services artificial
intelligence will be further to analyze the interactions. (Lema, and et.al., 2017). When
artificial intelligence has been spreading across different sectors, new job
opportunities has been created, programming, testing, support and maintenance.
Artificial Intelligence creates different types of jobs like AI research scientist, AI
engineer
 Robotic Process Automation: It is that kind of technology which process the use of
software to automate business processes such as interpreting applications, processing
transactions.
 Edge Computing: Edge computing is for the purpose of helping some of those
problems as a way to bypass the latency caused by the cloud computing and getting
data to data centre for processing. (Muzellec, and et.al., 2015). There are jobs like
cloud reliability engineer, cloud infrastructure engineer
 Quantum Computing: This type of technology is involved in preventing the spread
of corona virus and to develop potential vaccines, monitor , analyze on data. This
technology is also used in the field of banking and finance for managing credit risk,
high frequency trading and fraud detection.
 Virtual reality and augmented reality: This technology has been primarily used for
the purpose of gaming. It has also been used for the purpose of training.
There are lots of advantages of digital technology. With the changing period of time, it has
been used in the various sectors. Digital technology gives the advantage of increasing the
social connectivity due to which its easier to connect with number of people. Through this
type of technology the communication has become faster. It provides the versatile type of
working which supports for the every type of operations on the digital media. It gives the
learning opportunity also so that people do not depend on others in terms of their growth.
Digital technology act as in terms of automation because machines gives the opportunity to
humans to free themselves and all the work has been executed with the support system of
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machines. It also provides the facility for storing the information in a large amount at the
large scale.
With reference to the Amazon company, for managing the virtual business at the global level
it is very important to understand that doing the business with the support of digital
technology needs lots of attention and safety and security. (Asad, and et.al., 2018). Amazon is
such a strong company that it serves to the number of people of different countries. This kind
of business not only make it smoother, faster and in terms of result –oriented manner also.
This type of online business also needs lots of safety and security where it has to deal with
cyber security attacks and viruses. They need to protect their data in a very strong manner so
that it lead towards the positive outcome of the company. This type of business not only
saves the time of the customers but it also provides various options at a very large scale and
due to its brand name the people also trust them into the positive manner. Digital business
also gives the company a new opportunity to explore themselves into various sectors and
gives the advantage of increasing their revenue at a very large scale. (Duffy, K. and Ney, J.,
2015). When the company has maintained its standard from such a long period of time then it
also gives confidence level to the company that it can serve to the different kind of people
according to the current trend of the market. It has also maintained the standard of good
customer service and maximum time it always tried that they can satisfy their customers into
the positive manner.
1.3Critically evaluate new and emerging digital business models in the context of key business issues
such as cyber security and ethics that your chosen business uses or may use
There are some new and emerging digital business models according to the current period of
time. It includes certain models which are named as freemium model, subscription model,
free offerings, marketplace model and user experience premium.
 Freemium Model: The customer get those products and services which don’t have any
charges under this model. Only basic functions are offered and for premium functions
and also there is no branding and extension of services. After that the payment has
been done by the customer. (Park, and et.al., 2018).Through this way, its easier to
reach to the large customer base, increases the business into new markets and also
generates new incomes when converting customers into paying ones.
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 Subscription Model: Products and services can be offered into the form of
subscriptions. Binding the customer for the long term is the main focus here. The
customer get benefits from improvements and extension of the service with respect to
the one-time purchase. Amazon is one of the good example of it. It is very powerful in
terms of nature as it allows to generate the income over the period of time and gives
the opportunity to grow the company without too much “ highs and lows”.
 Free Offerings: Under the free offerings, through google a model has gained its
popularity. (Vendrell-Herrero, and et.al., 2018). Customer data has been evaluated by
the business models for advertising or personalized offers purpose. Taking the
consideration of a free service, it is required that to plan for the ramp-up phase.
 Marketplace Model: Market places are already a disruptive potential for some
industries. It is the digital market place where the buyer and seller connects with each
other and comes on a common platform. It can generate money through advertising
and positioning premium services and it is also possible to use membership fees on
the platform.
 User experience premium: It can be easily observed using apple. For the
exchangeable product, into the product the good customer experience adds value.
Different kinds of services, brand and especially the experience of the customer are
improved and premium prices are charged accordingly.
In terms of the cyber security and ethics these models somewhere can’t support into the
positive manner. With the context of these models, some models only offer basic services in
terms of their products. (Saura, and et.al., 2019). And on the basis of that they have started
earning the income. Overall it means to say that the customers are not receiving any special
services, after all the customers are ready to make payment for it. Through the subscription
model although they can bind the customer for long term but once they have received the
negative feedback then there are chances that the Amazon can loose their customers also. In
terms of free offering when the company has evaluate their data for the purpose of
advertising and other reason then it is important that it should be protected from cyber attacks
and viruses can’t harm the whole system of the entire company. For following the ethics rule
if the company do not follow the proper rules and regulations and any kind of negative
impression in the market can degrade the value of the company. The platform which has been
provided by the Amazon company should be free from cyber attacks otherwise there are
chances that they have lost their customers on a large scale. (Williamson, B., 2015).
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Its a very challenging part to do the digital business because it needs lots of protection on a
large scale and it needs to be highly maintained by the technical team. If the customer
experiences a good experience in terms of the products and services of the Amazon company.
Then it will be beneficial for the company. If the customer give negative feedback on the
online platform and on the large scale it does not deal with this kind of feedback then it
becomes difficult for the company to stand strongly in the market.
1.4Evaluate the impact of new collaborative relationships and strategic alliances through digital
technology for your chosen business
There are various companies who collaborate with Amazon company. There are thirty well-
known companies from across the globe who have collaborated with the company. It includes
Microsoft, Baidu, Tencent, Qualcomm, Mediatek, NXP semiconductors NV(NXPI). (Hanna,
N. K., 2016). Due to the collaboration with lots of companies the company’s success rate has
been increased at a large scale. At the global level when it has come into notice that the
shopping online company has collaborated with lots of companies then its worth
automatically gets increased. Also the value of the company has increased at a large scale in
the eyes of customers.
Then the perception also gets stronger in terms of quality of products into the positive
manner. When the collaboration has done in such a manner then it involves lots of ideas,
experiences and changes the face of the company in terms of the technical manner also.
Within the company the employees work satisfaction level has increased on al large scale.
Due to employees also feel valued with their unique skills and qualities. With the increased
level of satisfaction of customers and happy nature of the employees also impacts the culture
of the company into the positive manner and also increases the retention rate of the
employees of the company. (Bodó, B., 2019). It also increases the productivity and delivery
service quality of products has also get enhanced. Efficiency of the company has also
increased with the support system of the large number of companies. Whenever the company
has faced problems in some particular sector then with the support of companies it will be
easier to find out the solutions on a very fast pace manner. It also gives the opportunity to the
company to see the picture on a very large scale with a broad spectrum. It also increases the
chances of creating the innovation over the period of time in terms of their services as well as
their products. (Popper, N., 2015). With the changing period of time, it is very important to
understand that innovation leads the company towards the more closure level of the success
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rate. It also gives the opportunity to learn new things and skills from each other and it
involves various point of views due to which consideration of different backgrounds have
been there. As a result, it can offer something very different to the market which is very
unique as compared to other types of companies.
Strategic alliance of the Amazon company has created a very positive impact into the
marketplace. Amazon has announced its strategic alliance with the Future Group. To sell its
private labels such as Lee Cooper, Converse, Indigo nation, Scullers and Jealous 21 among
others future will use the Amazon platform. (Newman, and et.al., 2015). The company has
portfolio of forty brands. By using the platform of the well renowned company, it has
become a very grateful situation for the Future group company. Now it can earn revenue on a
large scale and profits can also earned by the company. Through this way, customers also get
to know about this company and attract the customers on a large scale. The company can also
distribute their profits according to the terms and conditions. First products that has been sold
by the future group is of fashion and food items.
Their items also create a unique value into the eyes of the customers. So the strategic alliance
of the Amazon company has come up with lots of benefits not only from the perspective of
the customers but from the perspective of the company also. (Dahlman, and et.al., 2016). By
having the common goal of the companies then it becomes easier to tackle with the market at
the global level. Because it carries the strength to handle such a large number of customers at
the international level.
There are certain e- commerce principles which is followed by every e-commerce company.
It includes making the mobile-site friendly, improving the page loading speed, making the
process of shopping easier, use of good UX design, make the payment easier, use of email
communication, use of high quality of photos and videos, developing the consistent tone of
voice, drive the sales with a blog and build the trust with an about section. Under the mobile-
site friendly head, it is important to maintain it into the proper manner because mostly people
use the mobile phones to do the shopping rather than the desktop computer. (Cavanaugh, and
et.al., 2016). Ultimately it saves their time and internet usage also. Under the head of page
loading speed it is the most important criteria because if the site takes longer time to load the
page then the customers have the other options to switch over that. Because people don’t
have time to wait for the loading of page so they can move towards the other sites also. Under
the head of making the shopping process easier it also plays a very important role in the
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online shopping. If the customers feel that they have to take lots of efforts for ding the
shopping from particular website then they leave in the middle path of it and switch to the
other site. Under the head of UX design it is very important to take care about the look and
design of the website because this is the only criteria which attracts the customers to do
shopping from the particular website. Under the head of payment, its very necessary that it
should be secure and reliable in terms of making the payment. So website has to give the
experience to the customers that they can totally trust on their website. (Wiig, A., 2016).
Under the head of email communication, it should be fast and prompt in the nature so that
customers can rely on the particular company. Under the head of high quality of videos and
images it gives the chance to the company as well as to their customers to explore themselves
into the new way. Under the head of consistent voice of the tone, if the company uses
somewhere on the website regarding the voice note then its important that the tone of the
voice should be soft, clear and crisp into the nature so that everybody can understand what
they want to convey to their customers.
Under the head of driving the sales through the support of blog then its important to notice
that the blog should be so much effective, clear, crisp and to the point so that it can attract the
customers on a large scale.
1.5Discuss how e-commerce principles could be used by your chosen business
With reference to the Amazon company it has majorly followed the four principles with
respect to the e-commerce company. (Blayone, and et.al., 2018). It includes customer-centric
thinking, empowering shoppers, speed and optimized for discovery.
 Customer-centric thinking: Amazon company always focuses on their customers
because they are the base of their earnings and their standard in the market place.
That’s why the first priority should be to always take care of their customers and
always satisfy them into the positive manner.
 Empowering shoppers: The company always gives the opportunity to their customers
to buy their products. Because they always come with new offers, innovation, festive
offer which encourage their customers to buy products from their company
particularly.
 Speed: The company always takes care of their speed in terms of delivery of products.
They always tried that they never loose the hope and trust of their customers. The
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company always tried to fulfil the promise of their company and satisfy their
customers according to their satisfaction level.
 Optimized for discovery. The company is always positive in terms of new invention
and innovation which gives the reason to the company to explore themselves and give
the chance of the customers to try their products. (Geissinger, and et.al., 2019).
Discovery not only enhances the customers for doing the shopping but it also create
urge into the market place that the competitors also have to come up with unique
ideas and different kind of products.
CONCLUSION
In today’s competitive world, the digital business have come up with a boom into the
market at the global level. It changes the way of doing the business and adopt different kind
of process for giving the services to their customers. (Hassan, A. and Rahimi, R., 2016).
Digital business not only increases the speed but it also makes the communication faster and
to the point while sitting into any corner of the world. This kind of business can connect to
the world on a very large scale and attract the customers of international market. Digital
business is the new way of earning the revenues and earning the international currency level
at a very fast pace. (Scaringella, L. and Radziwon, A., 2018). So digital business is the
demand of today’s period of time so its important to understand the need of the market and
respect the changing technological advancement at the global level. That’s why digital
business is very important at the international level also.
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REFERENCES
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Bronson, K., 2019. Looking through a responsible innovation lens at uneven engagements
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