BTEC HND Business Unit 14: Digital Approaches of Amazon & Google

This report provides a detailed analysis of digital business approaches, specifically focusing on Amazon and Google. It begins by defining digital transformation and explores various digital approaches employed by organizations, including freemium models, digital marketplaces, and on-demand services. The report then examines the specific digital strategies of Amazon and Google, such as Amazon's use of AI, Alexa-enabled voice shopping, and Google's cloud services and advertising platforms. It further delves into the business models of both companies, presenting business model canvases. The report also explores the relationship between contemporary digital approaches, like social media and ERP, and their impact on key performance indicators (KPIs). Finally, it constructs a digital strategy plan for supporting the implementation of digital technologies within an organization, providing a comprehensive overview of digital business practices and their strategic implications.

Submission Front Sheet
Programme BTEC
HIgher
National
Diploma
(HND) in
Business
(RQF)
Unit and Title Number (Unit 14)
Unit RQF level/Code Level 4:
Credit Value 15
Module Tutor Name/email
Project set date
Distribution Date
Project Brief Code
Student name and ID
Submission Date
Word Count
Is this a first sub mission yes Is this a Referral
Submission
Learner’s
Statement of
Authenticity

Contents
INTRODUCTION....................................................................................................................3
Explaining the range of digital approaches taken by organisation..............................................4
Exploring the relationship among contemporary approaches to digital business as well as their
impact on meeting KPIs successfully .........................................................................................7
Importance of digital business to Amazon and Google...............................................................9
Examples of digital technologies Used by Amazon and Google to attaining the business
objectives...................................................................................................................................10
Illustrating the ways in which digital technology can support organisations............................11
Constructing a digital strategy plan for supporting the implementation digital technologies
within an organisation................................................................................................................12
CONCLUSION .............................................................................................................................17
Covered in ppt............................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
Digital transformation can be understood as procedure of using virtual
technologies for creating and modifying business processes in order to create value for
customers as well as meet changing dynamic market requirements in an effective
manner (Abdelaal, Khater and Zaki, 2018). It can be adopted by organisations through
introducing intangible as well as customer-centric virtual tools which aid in improvising
customer journey in a strategic manner. In nutshell, digital transformation regarded as
capabilities which make operations of business organisations efficient and rapid which
aid them to stay ahead of their competitors in a rational manner. Business organisations
use descriptive plan for using the virtual solutions regarding manufacturing and
engineering of their services. It is considered as beneficial for organisations to maintain
a pace with emerging and dynamic customer demands which help them to survive in
future. It also aid establishments in competing in a better way in relation to economic
environment which is considered as dynamic in regards with technological evolutions.
Future of digital transformation is considered as important as it provides access in
relation to remote operations as well as organisational priority. It also help in analysing
varied aspects in relation to improved productivity, intelligent operations, timely delivery
and fast fulfilment of tasks in an effective manner. In order to have better understanding
regarding aspects of digital transformation, varied examples of differential organisations
have been taken into consideration.
This project report highlights an understanding of digital business environment,
emerging trends and contemporary approaches. This project report also demonstrates
the effectiveness of the use of digital technologies for attaining business objective. It
also consists of developing a transformational digital strategy for supporting virtual
technologies in an effective manner. In order to have better understanding about the
digital approaches, two organisations are considered namely, Amazon and Google

Explaining the range of digital approaches taken by organisation
Digital approaches are considered as necessary for transforming the
organisation on a virtual basis. Digital approaches can be adopted by organisational
managers through virtual strategy which aid them in maximizing the benefits in relation
to technology-focused initiatives in an effective manner (Andriole, 2017). It is vital for
organisations to develop their digital transformation strategies which aid them in
analysing, interacting as well as satisfying their customers in an effective manner. This
systematic approach is begin with understanding behaviour, preferences and demands
of customers. Numerous organisations have adopted practices in regards with digital
approaches which aid them in generating the growth opportunities for their operations in
an effective manner. Business models and digital approaches in relevance with
Amazon and Google are as follows:
Freemium model is used by businesses whereby an organisation offers basic or
limited features free to users and after some time ask for a premium price. This model
is used by Amazon through their digital streaming site, Prime by providing free trial to
their users and then ask them to subscribe it for using it on a continuous manner. This
help them in maintaining the value of their products in the eyes of customers.
Google does not use freemium business model for leveraging its growth in
marketplace. However, it can use this by providing regular searches as free feature
while for some typical searches they can charge extra fees.
Digital marketplace model can be understood as integration of information
technology through a e-commerce site which act as a facilitator among buyer and seller.
Amazon is an e-commerce business which led them to bring seller and buyer at
one place for generating their revenue in an effective manner.
Google has planned to adopt it but failed in its execution. Managers of Google
believes that lack of commission fees can be an attractive proposition but it reduces
their revenue streams. Marketplace advertisements plays a signifiant and effective role
than search advertisements which led Google to build a marketplace.
On-Demand service model is concerned with availability of services at any time
which is suited to individuals. Amazon can adopt this model by providing their products

through on-demand service. This would help them to increase their revenues by
catering diverse needs of customers and making their position viable.
Google provide on-demand search results to their users which help them to
smoothly function their operations. Through this, they have earned people's trust and
made this brand viable in the eyes of millions of users.
Business to business model is concerned with dealing with companies and
selling their products or services to them. At contradictory to this, business to
consumer type is concerned with whereby an organisation deals directly to consumers
for their specified transactions.
Amazon follows the retail business model whereby they procure the goods from
vendors and sell them online as well as deliver them to doorstep of their customers.
Managers of Amazon can use business to business model by dealing and collaborating
with companies to procure their products at wholesale prices.
Google use business to business model whereby they deal with companies for
advertising their products or services and generate revenues from them. Their
advertisements are seen by their uses through their research and persuade them to buy
them.
Varied digital approaches in relevance with Amazon are mentioned below:
Use of artificial intelligence and machine learning – Artificial intelligence is
considered as important as it acts like a stimulator which helps in understanding human
intelligence in regards with generated machines (Berman and Schallmo, 2021). It is
adopted by organisations for providing personalised experience to their customers in
relation to their search as well as purchases on virtual basis. It is considered as
significant as it acted like a main driver for emerging technologies in regards with big
data as well as robotics. For example, managers of Amazon leverage artificial
intelligence by providing smooth customer identification as well as authentication
process which leads to deepen the relations with customers. This has provided them to
store the large data sets regarding personal information of their customers in an
effective manner. Company is boasting mature artificial intelligence applications for their
varied operations such as logistics, warehousing and many more. They essentially
works on the principle of customer obsessed instead of competitor-focused. Through

using artificial intelligence they can provide their customers personalised product
recommendations which helps them to attract massive number of customers and grow
their business in an apt manner.
Alexa enabled voice shopping- Amazon has designed their voice-enabled
Alexa in such a way that it allows users to discovered and procure products through
voice prompts rather than clicking or tapping a screen. Through this, they are providing
excellent customer experiences to their customers by doing their transactions hands-
free. With the aid of Alexa, people can activate it and start their shopping by sitting
anywhere on a remote basis. It also helps them to gain an understanding of their
products in an effective manner.
Digital approaches undertaken by Google are as follows:
Use of Google Cloud- Managers of Google has built and provide their own
cloud system to their client companies and individuals which help them to provide
unique features of saving their information for longer period of time. Through this, users
can collect, assimilate and keep the desired information with them for long-run.
Google Ads- These digital approach has helped Google to open up many revenue
streams by accelerating massive number companies to use this feature in an effective
manner. Through this, managers of Google collaborate with other companies in order to
be viable in customer search in regards with search. Pay-per-click concept is also
getting popular whereby business organisations have to pay for the website clicks as
well as received calls regarding their operations (Brock and Von Wangenheim, 2019).
Business model of Google
Business model of Google is somewhat called as hidden one as it is the not the
user who pay for the desired services. Their revenue streams is majorly comprises of
paid media whereby companies pay a specific amount to Google in order to be viable
for the customers. Google earn their revenue from Google Ads, AdSense, AdMob and
many more. Business model canvas of Google is as follows:

Figure 1: Business model canvas of Google
Source: Google Business Model. 2022
Business model of Amazon
Business model of Amazon is providing a platform to numerous retailers for
selling their goods and reaching to massive number of customers. Apart from this,
Amazon has followed varied revenue streams such as:
Amazon Prime is a subscription model whereby it provides online streamlining
regarding music, movies and web series. Amazon Web Services is an IT structure
platform which is a low-cost model provide services to establishments on a global scale.
Business model canvas of Amazon as follows:
Source: Amazon Business Model. 2022
Exploring the relationship among contemporary approaches to digital business as well
as their impact on meeting KPIs successfully
It is imperative for business organisations to adopt contemporary approaches in regards
with performing activities in an effective manner (Ciasullo and Lim, 2022).

Contemporary digital approaches which are followed by Google as well as Amazon are
social media platforms, enterprise resource planning and many more.
Through using social media platforms, managers of Amazon have advertised their
products, services and varied offers which can stimulate people to visit their site and do
shopping as per their choice as well as time.
Managers of Google use social media platforms for analysing their overall ranking
algorithms in an effective manner. For advertising, they use You Tube, Orkut and many
more. This made their brand more viable and engaging for customers.
Enterprise resource planning is used by managers of Amazon by recording their
transactions in relevance with supply chain, accounting, risk management in an
automated manner. This help them in leveraging their time in productive work rather
than wasting it in clerical things.
Managers of Google use enterprise resource planning in generating a consolidated data
of their operations which led them to engage in more productive work as well as
generate revenues.
Social retail store can be described as a practice of using social media platforms for
engaging with customers and sell their offerings by using both physical as well as digital
channels simultaneously. Amazon operate its operations through an e-commerce
website whereby it provides a social platform to its customers and retailers for procuring
as well as selling their specified products. Managers of Amazon also use Facebook and
Instagram for promoting the products they offer on their e-commerce platform.
Impact of digital business operations regarding key performance indicators
Key performance indicators can be described as quantifiable measures which
are used by business organisations for evaluating their progress and performance in an
effective manner (Heavin and Power, 2018). These KPIs are termed as a guide which
helps in setting targets and milestones for gauging the progress of business operations
in a real-world situation. These key performance indicators aid in gaining insights which
help organisational managers in taking the critical decisions in a better way. It is
considered as important as it helps in communicating business objectives to employees
and provides direction to them. Key performance indicators which are used by
managers of Amazon works essentially to visualise their comparison among a target as

well as key value in an effective manner. Varied key performance indicators in context
to Amazon are as follows:
Advertising cost of sales KPI- This KPI is used by Amazon for measuring their
performances in regards with marketing campaign. It is measured on the basis of
generated revenues as well as cost of marketing campaign in an effective manner
(Kane, 2019). This is considered as significant for measuring traffic segment, product
category and keyword profitability data of Amazon in a strategic manner. It can be
disadvantageous for Amazon as it is time-consuming process which can compel
managers to uphold other significant operations.
Ad conversion KPI- This is concerned with measuring percentage of clicks in
relation to an advertisement which can be converted into sales. An ideal conversion rate
determined by managers of Amazon is 2 to 5%. Amazon ad conversion rate is
essentially based on procurement of products and advertised commodities reports. This
KPI has a limitation of providing accurate results to managers of Amazon.
Inventory performance index KPI- This key performance indicator is essentially used
by managers of Amazon which aid them in managing their inventory as well as stocking
up their products on a constant basis. This can be disadvantageous for Amazon as it
can not help in measuring an accurate rate of excess inventory in case of sales return.
Varied key performance indicators used by Google
Number of sessions and users- This Google analytical tool is used for
monitoring the traffic in an effective manner. This KPI is used by managers of Google
for monitoring quantitative development for future analysis. It has a limitation of not
providence of privacy to the users.
Bounce rate – This is concerned with monitoring the percentage of sessions in
relation with single page of website (Kotarba, 2018). This is considered as an important
indicator which helps to evaluate whether desired content is reached to users or their
demand are satisfied. This is used by Google for have a quick evaluation in regards with
website traffic. It can be disadvantageous for Google as it based on the sampled data
which is considered as complex in nature.

Average time on page- This key performance indicators is concerned with page
tracking which led to measure the average time of user spend on a specified page. This
key performance indicator is used by managers of Google for evaluating their
performance in an effective manner. It can be disadvantageous for Google as through
this, managers can interfere in privacy of the users.
Importance of digital business to Amazon and Google
Digital business is considered as important for organisations as it helps in
providing value to customers as well as enhancing their viability in market (Loonam and
Et. Al., 2018). Through this, organisations can make their positions viable and engage
massive number of customers towards their brand. With the help of adoption of digital
strategies in an effective manner, they can grow on rapid basis, uncover varied markets
and form strategic partnerships in an effective manner. Managers of Amazon took
varied benefits of applied digital approaches in an effective manner which leads them to
make their operations viable. Managers of Google also adopts digital strategies in a
critical manner which led them to engage large number of customers towards their
brand. Digital technologies is considered as helpful for enhancing the business
operations in a rational manner.
Examples of digital technologies Used by Amazon and Google to attaining the business
objectives
Digital technologies are concerned with the using electronic tools, systems and
resources which is used by business organisations for generating more revenue as well
as enhance viability in their operations (Manfreda and Štemberger, 2018). These digital
technologies have transformational impact on business organisations and helps them to
create value for their customers in a strategic manner. Contemporary digital
technologies in relevance with Amazon are as follows:
Use of artificial intelligence- Managers of Amazon has secured a competitive
edge by using artificial intelligence for improvising their effectiveness. It is imperative for
an e-commerce business to gain insights regarding demands and preferences of
customers in order to provide those personalised recommendations (Pihir, Tomičić-

Pupek, and Furjan, 2018). It is advantageous for Amazon as it lead to reduction in
human errors which help them to attain their business objectives. However, it has some
drawbacks too such as security concern and higher rates of unemployment.
Use of robotics- Managers of Google are working on a new robotics technology
which helps them to have access to make robots learn about navigating directions in an
effective manner. Google is concentrating on enhancing their machine learning for
making robots learn how to grasp things as well as navigating directions on a constant
basis. This is considered as beneficial for Google as it helps them to improve their
productivity as well as brand reputation. This is considered as disadvantageous as it led
to losses of potential jobs and also incur investment cost at initial level.
Data analysis and use of artificial intelligence- Google has developed their
strategies in accordance with data analysis and artificial intelligence in an effective
manner. While adopting new digital practices by using virtual technologies, business
organisations have chances in digging more into personal life of human for the sake of
providing personalised recommendations to them (Gong and Ribiere, 2021). Managers
of Google has implemented these strategies in an effective manner which led them to
create valuable as well as relevant content for their users. Artificial intelligence is
considered as disadvantageous as it does not intend creativity and innovative practices
in users in an effective way.
Use of Google cloud platform- Google has designed a platform for the
processes in relations to cloud computing. It has competitors such as Amazon web
services as well as Microsoft Azure in an effective manner. Google cloud platform aid is
making collaborations with other corporates for generating higher revenues in an
effective manner. Varied services which are provided by Google cloud platform are
computing, machine learning, securing big data, machine learning and many more.
Managers of Google use enterprise resource planning software known as SAP for
streamlining its cloud information in a globalised as well as decentralised manner.
Google use mobile technologies for enhancing its operations and make its more
successful.

Managers of Amazon use software for enterprise resource planning for assimilating
their vast data sets properly for providing recommendations to users. Through e-
commerce website of Amazon, people can shop from any time through their mobile.
Mobile technologies are considered as costly to procure as well as requires huge
maintenance costs. Enterprise resource planning software are complicated to use and
needs proper training to run them smoothly.
Illustrating the ways in which digital technology can support organisations
Digital technology is considered as helpful for organisations as it help them to
position themselves in a viable manner (Shahi and Sinha, 2020). Establishments can
enhance their viability as well as influence on industry by adopting digital technology
while performing their operations. Varied ways in which digital technology help
organisations in relevance with Amazon and Google are as follows:
Increases efficiency and productivity- Digital technology helps in enhancing
efficiency as well as productivity of an organisation and its employees. For example,
with the help of digital technology, managers of Amazon have made their operations
customer-centric for attractive prospective buyers. In relevance with Google, due to
adoption of suitable digital technologies, they have secured competitive edge in a
strategic manner.
Improved customer engagement- It is imperative for businesses to engage as
well as retail customers for a longer period of time. Implementation of digital technology
aid establishments in engaging customers by adding value to customer experience in
an effective manner. For example, with the adoption of digital technologies like Amazon
Prime and web services, they have engaged a large number of customers in a strategic
manner. With the help of new advancements in artificial intelligence technology,
managers of Google can engage more users towards their search engine.
Greater innovative practices- Digital technology has opens up the varied ways
for larger innovative practices as well as emerging unique ideas. Through using
digitalised techniques, innovative practices can be enhanced into a more attractive and
appealing manner. For example, managers of Google as well as Amazon have led are
trying to bring innovative practices in their operations through digital technology.