Procurement & Management of Construction for MSc CPM and QS

DIGITAL BUSINESS
TECHNOLOGY

Table of Contents
EXECUTIVE SUMMARY..................................................................................................................3
INTRODUCTION................................................................................................................................3
Question 1. Key trends and advantages of digital technology and implications for managing
virtual business in the global environment......................................................................................3
Question 2. Emerging digital business models and key business issues such as cyber security in
managing effective e-business.........................................................................................................5
Question 3. Impact of new collaborative relationships and strategic alliance through digital
technology........................................................................................................................................5
Question 5 Multi-disciplinary approach to apply E-commerce principles in business sector
organisation......................................................................................................................................7
CONCLUSION....................................................................................................................................9
REFERENCES...................................................................................................................................10

EXECUTIVE SUMMARY
The presented report is being based on role of digital technology in attainment of respective
business goals as well as objectives considering wide global business environment. This meta-
analysis will provide a guide on emerging digital business models that is used by various business
enterprises to boost and shape operational activity of the firm towards attainment of respective
business objectives and goals in given time period. With addition to that, related theories, concept
and principles of E-commerce is also being highlighted in this document.
INTRODUCTION
As per the current trend in business environment, wherein managers as well as leaders of
various business firms are concentrating on building uniqueness in company's products and services
for capturing market demands of customers. Not only presence of cut throat competition in
respective business environment, effective operational working of a business firm also has to deal
with various uncertainties in its operational environment (Blau, Shamir-Inbal and Avdiel, 2020)
. A slight change in operational environment of a business firm could lead to failure in respective
business plans and strategies of an operational firm. Considering all these factors, digital
technologies had gain its importance in such business environment. Concerned authorities of the
company with an approach to increase productivity of the firm uses various means of digital
technologies. It helps in simplification of respective business activities and also bring in innovation
in respective operational working of an organisation. The present report is being based on
operational working of ASOS plc. Respective company is a British manufacturer of brand clothing
products which is being headquartered in London, UK (Broekhuizen and et. al., 2020). It was
founded recently in 2000 i.e. 20 years from now by its founder Nick, Andrew, Quentin and
Deborah. Presented report will highlight advantages of digital technologies with its concepts and
models and will also spread some light on E-commerce principles.
Question 1. Key trends and advantages of digital technology and implications for managing virtual
business in the global environment
The term virtual business refers to carrying respective business activities through internet or
any other online sources. These types of business firm may or may not have physical existence of
its stores of outlets. Considering expansion objective for most of the business organisation,
operational working of a business firm has to go through various uncertainties in its business
environment (Hohlfeld and et. al., 2017). In order to provide global existence of a firm, virtual
business plays an important role in reaching out to large number of market customers and also have
better approach of business activities considering global business environment of the company.

Key Trends for managing virtual business in global environment
As by upcoming of virtual businesses, operational working of a business firm is able to
grasp large customer market and also defined importance of delivering great deal of quality services
with products of the company (Murphie and Potts, 2017). However, there are certain aspect which
needs to concentrated for effectively managing these virtual business in global environment, these
are as follows:
Managing pros and cons of virtual work: Although with the fact that, being an employee of a
virtual business reduces job stress and also saves time of travelling. However, it could lead to
upbringing of a lazy employee. On the other hand, working at home could lead to hinder motivation
and also could increase loneliness of various staffs. Therefore, managing these pros and cons is an
important responsibility for a manager of virtual business.
Embracing technologies: Use of various digital technologies could prove to be an effective
tool for boosting up operational activities of a business firm. It provides strong helping hand for
operating business activities globally.
Advantages of digital technologies
 Large reach: With introduction of digital technologies, respective managers and leaders of
the business firm are able to capture large area of customer reach. Managers of various
business firms by using respective digital means are able to operate its operational activities
ensuring effective cost techniques of the workforce.
 Storing of information: Digital technology granted advantage to a business firm to store
important data and information which could prove to be useful for business firm in
operating its respective business activities.
 Communication Speed: Use of digital technologies boosted spread of information and
needful data among various employee of a business firm. It helped in taking quick decisions
regarding operational activities of the firm.
Disadvantages of digital technologies
 Complex: Using of digital technologies could prove to be a complex method to some
individuals. Rather than bringing effectiveness of business operations it could prove to be
disadvantageous for the workforce.
 Privacy concerns: While using digital technologies, there is a huge risk of privacy concern
for storing confidential information and data of the company, as due to fear of hackers and
viruses.

 Social disconnect: By using digital technologies, an individual gets socially disconnects to
given society. In the process of using digital technologies, a person gets so addicted to use
these technologies that they ignore society of one’s living.
In regards to ASOS plc, management department of the firm uses various digital technologies for
bringing in innovation in various operational efforts being produced in the business firm. As the
business organisation deals in providing fashion products and services to its valuable customers.
There are higher chances of substitution of company’s product with any other company product
available in similar market at same price and quality (Kane, 2019). Managers of the firm by using
innovative digital technologies are able to overcomes such issues and are able to bring in
uniqueness in company’s brand. On the other hand, in case of Saks Fifth Avenue, it is a luxury
supermarket departmental chain. Company offers variety of clothing materials to its customers
since a long time with its existence for almost 154 years ago i.e. in 1867 (Nambisan, 2017).
Operational department of the firm in order to effectively operate in given business environment
uses digital technological means. It helps firm to feed demands of customers in wide area of
markets. Marketing department of the firm by taking its advantage of long reach are able to ensure
better market presence of respective company.
Question 2. Emerging digital business models and key business issues such as cyber security in
managing effective e-business
Define Situation and SWOT and then compare and contrast these two-
Situation Analysis
This analysis refers as a collection of various methods that can help the managers to analyse
the internal and external environmental factors to understand the capabilities, business environment
and customers of the organisation. This analysis can help the identify the potential customers,
evaluation of project growth, analyse the competition, consider the realistic assessment for the
organisation.
SWOT Analysis
Swot analysis is internal analysis that comes under the micro environment business factors
and identify the strength, weakness, opportunities, threats so that organisation can easily identify the
current market situation and help to develop the strategic planning of the business.
Compare Situational analysis and SWOT analysis -
Situation Analysis SWOT Analysis
 This analysis helps to analyse the
internal and external factors of the
 This analysis helps to understand the
plus and minus point of the

organisation so that it will make easily
to identify the internal and external
factors.
 There are various factors considered in
this analysis such as product situation,
competitive situation, distribution
situation, opportunities & issues
analysis etc.
 This analysis can help to provide easy
access of simple & practical usage of
the information.
 This analysis mainly focusses on the
key factors and aid in identify the
future goals for the business.
organisation so it help to work on the
weakness and use strength as the
power.
 This analysis helps to focus on the
threats so that organisation can work
properly to remove it.
 This is a strategic analysis which can
help to analyse the various
opportunities so that organisation can
boost their performance level.
Contrast of Situation and SWOT analysis -
Both analysis can maintain the internal environmental factors which can help to identify the
internal micro environment factors. SWOT analysis is containing as the another method of the
situational analysis that can help to identify the strength and weakness of the business. Both
analysis can help to identify the business environmental factor.
Apply situation analysis to one business
SWOT Analysis of ASOS -
Strengths Weaknesses
 This organisation is very famous brand
and it sell over 850 brands in clothing
& accessories.
 It adopts innovative way to demonstrate
the merchandise to the customers &
interactive way include customers
looks, fashionable trends.
 This is UK largest online organisation
that deal with the beauty retailer.
 Free shipping cost given by the
organisation 100 million pound on the
basis of annually.
 30% of the business are returned to the
organisation and the outcome is
additional shipping charges.
Opportunities Threats

This is most famous fashionable brand that's
why people want to spend more money in this
organisation.
This can increase the mobile penetration and
can aid people effectively.
organisation expand their business globally to
make more profit.
Lots of competition in fashion brand.
Uncertainty of the economic times and crises.
Large retailer organisations come up digitally
so that they can attract the customers.
Question 3. Impact of new collaborative relationships and strategic alliance through digital
technology
Collaborative relationship is defined as the situation wherein, two or more individuals come
together for attainment of common objectives and goals. Various business organisation has opted
for promoting such types of efforts in an organisational structure (Neumann, Finger and Neumann,
2017). These efforts in mixture with digital business technologies is helpful for completion of
respective tasks and objectives of the business firm ensuring effective utilisation of valuable
resources of the firm and also delivering best possible quality to their customers present in given
marketplace of company.
Considering complexities in today’s business environment where business operator has to go
through various internal as well as external factors that affects effective working of an organisation
directly. Strategic alliance is a tool that is used by management of various business firm (Kaufman,
2018). This strategic tool is an inclusion of getting together of two different firms by forming an
alliance. With using digital technology tool, it proves to be great help to both of business enterprise
and also allows respective operational management for taking advantages of increased capital and
also enables firm to undertake innovative decision regarding operational area of a business firm.
Question 4. Relevant digital business theoretical concepts in practical contexts
In the constantly changing market place there is an ever increasing methods of operating businesses.
One such addition came with the introduction of internet into the business world. Before the
internet, the world and the business itself was less connected (Roth and et. al., 2019). There was no
proper means of communication and interaction that promoted the effective business and people
have to make contacts through visiting the market place, which brought along many issues for the
smooth business. After the internet’s utilisation in the business world all companies whether small
or large offered their product and services online either through the direct website or through as a

third party on a retail website. The e-commerce became a huge success as it helped both buyers and
sellers as well (Tonelli and Cristoni, 2018). There are multiple types of digital business models that
came into existence as the ecommerce grew with time.
Furtherance is different types of digital business models.
Business to Business (B2B): In this type of digital business model a manufacturer sells the
products to the wholesaler who then further sells it to the consumer arriving at the store.
Business to Consumer (B2C): This business model includes the business deal between a
seller to a consumer directly. Such a business models has seen maximum market engagement.
Consumer to Consumer (C2C): In this business model the seller and buyer both are
consumer of the product. The seller in this case is reselling the product used by him and the
buyer is buying a used a product.
Consumer to Business(C2B): In this type of e-business model, the consumer of the product
sells a business the product using the website of business.
Cyber Security: E-business just like the conventional business with needed the protection from the
cybercrime with dire urgency. The ready flow of market and the online transaction taking place the
internet network has seen a remarkable rise in the crime taking place with the online customer
(Lindgren, 2018). This brought the concept of cyber security. Following are the types various types
of cyber security.
Network Security: Such a type of security makes sure that the network with which the user is
connected to the server is safe and secure from the virus threats and opportunist attackers.
Information Security: This form of cyber security protects the data of both the consumer and
the business from being accessed by a third party (Yu, Lin and Liao, 2017). Although the user data
seems harmless to many but contains various personal information like, address credit card
numbers, phone numbers etc. the leakage of this data can cause a potential risk on the safety of the
user.
Disaster Recovery: This is the security that makes the user rely on the case of a miss happening
which results in the loss of data or monetary balance from the account of the user. Such
security helps in the recovery of the information and ultimately the provides protection to the
user data.
Question 5 Multi-disciplinary approach to apply E-commerce principles in business sector
organisation
Digital business: Technology is used by digital businesses to generate new value in their business
models, user interactions, and organizational resources that sustain their core operations. The
concept covers both digital products and established players which are using digital technology to

change their businesses.
e-commerce: E-commerce (electronic commerce) refers to the purchase and sale of products and
services as well as the transfer of funds including data, across an internet channel, most
commonly internet. Business-to-business, business-to-consumers (B2C), consumer-to-consumer,
and consumer-to-business purchases are all possible.
E-commerce as well as e-business are words that are often used synonymously. The concept e-tail is
often used to describe transactional processes that go into online retail buying. In this regard
following are some key differences between E-business and E-commerce, as follows:
1. One aspect of e-business is e-commerce. An organization that uses web technology as part
of its business strategy is referred to as an e-business. For example, physical store may use
social media ads to draw more consumers. Even if no sales are taken place, the use of
internet technologies for commercial purposes marks it as e-business.
2. E-commerce business is one that provides an internet monetary purchase service, whereas
an e-business is one which incorporates online technologies into the business structure in
some way.
3. The consumer, who is granted the freedom to make transactions online, is key beneficiary of
e-commerce. Biggest beneficiary of an e-company, on other hand, will be the client, and also
business associates, vendors, and others.
4. E-commerce is a form of business that takes place entirely on internet. E-commerce may
take place over the phone, intranet, or cloud based. The key distinction would be
that organsiation could be classified as e-business even though it only utilizes internet
technologies internally.
Outline e-commerce principles and discuss their potential application to digital business:
E-commerce principles:
User Experience
Online company would crash if customers are unable to position orders. People will not return
to website when they dislike it, and they will not promote this to their peers.
Content
Users would be reluctant to render a purchasing decision if the material is poor. Content promotes
the company and its brands. Copy, photographs, and videos are best types of web material. (Video
is most engaging type of contents, and videos are more exciting than copy).
Search
SEO, PPC, including remarketing are examples of quest campaigns. Clients are normally unlikely

to locate website through search engines because it has nice, original, and insightful content. (SEO)
is most effective and targeted method of increasing online purchases. PPC is yet another efficient
search platform that, in attempt to be cost-effective, demands keyword-rich copy.
Use of Email:
When the scale of client base increases, email becomes more valuable because it is an integral
medium for sustaining engagement and attracting former clients back to online shop. For instance,
in respective business, email could be used as quick response tool for customers’ queries and
feedbacks.
The above principles can help ASOS to boost their business and attract more customers. For
example, if ASOS provides smooth and attractive user interface as well as prompt services with
safety, then this will help company to build trust among customers and retain them. Further if
company follows second principle content, then company should provide attractive contents on
their website and features (Martinelli, Waddell and Rahschulte, 2017). This will assist corporation
to build a loyal customer base as well as increase sales. Search principle allow business to reach to
more and more customers by easy means.

CONCLUSION
From the above report it can be analysed that, use of digital business technologies provides a
boost to operational functioning to an organisation. By using digital technologies managers of the
firm are able to operate its business activities effectively in given business environment of an
organisation. In the presented report, various concepts and tools of digital business technologies is
being illustrated. With addition to that, importance of such technologies with regards to increasing
market reach of business firm is also being highlighted in this report.

REFERENCES
Books and Journals
Blau, I., Shamir-Inbal, T. and Avdiel, O., 2020. How does the pedagogical design of a technology-
enhanced collaborative academic course promote digital literacies, self-regulation, and
perceived learning of students? The internet and higher education, 45, p.100722.
Broekhuizen, T.L. and et. al., 2020. Introduction to the special issue–Digital business models: A
multi-disciplinary and multi-stakeholder perspective.
Hohlfeld, T.N. and et. al., 2017. An examination of seven years of technology integration in Florida
schools: Through the lens of the Levels of Digital Divide in Schools. Computers &
Education, 113, pp.135-161.
Kane, G., 2019. The technology fallacy: people are the real key to digital transformation. Research-
Technology Management, 62(6), pp.44-49.
Kaufman, A.S., 2018. Contemporary intellectual assessment: Theories, tests, and issues. Guilford
Publications.
Lindgren, P., 2018. The Multi Business Model Innovation Approach. River Publishers.
Martinelli, R.J., Waddell, J.M. and Rahschulte, T.J., 2017. Projects without boundaries:
Successfully leading teams and managing projects in a virtual world. John Wiley & Sons.
Murphie, A. and Potts, J., 2017. Culture and technology. Macmillan International Higher Education.
Nambisan, S., 2017. Digital entrepreneurship: Toward a digital technology perspective of
entrepreneurship. Entrepreneurship theory and practice, 41(6), pp.1029-1055.
Neumann, M.M., Finger, G. and Neumann, D.L., 2017. A conceptual framework for emergent
digital literacy. Early Childhood Education Journal, 45(4), pp.471-479.
Roth, S. and et. al., 2019. Print theories of computer societies. Introduction to the digital
transformation of social theory. Technological Forecasting and Social Change, 149,
p.119778.
Tonelli, M. and Cristoni, N., 2018. Strategic management and the circular economy. Routledge.
Yu, T.K., Lin, M.L. and Liao, Y.K., 2017. Understanding factors influencing information
communication technology adoption behavior: The moderators of information literacy and
digital skills. Computers in Human Behavior, 71, pp.196-208.