BTEC Level 5 Digital Business in Practice Report: Unit 14 Analysis

This report, submitted for BTEC Level 5 Higher National Diploma in Business (Accounting and Finance), Unit 14: Digital Business in Practice, explores various digital business approaches and their impact on organizational KPIs. The report examines digital strategies like those employed by Tumblr and Alibaba, analyzing their effectiveness and relationship to business objectives. It investigates a range of digital technologies, including cloud productivity tools and workforce management systems, assessing their impact on multinational corporations. The report also evaluates the importance of digital business in a global context and critically analyzes digital business approaches to promote new business growth, providing valuable insights and recommendations for organizations worldwide. The report concludes by summarizing the benefits, drawbacks, and significance of digital business in today's globalized world.

BTEC LEARNER ASSESSMENT SUBMISSION AND DECLARATION
When submitting evidence for assessment, each learner must sign a declaration confirming that the
work is their own.
Learner Name: Nguyen My Huyen
Assessor Name: Martin Ortega Azurduy
BTEC Programme Title: BTEC Level 5 Higher National Diploma in
Business (Accounting and Finance)
Unit or Component Number and
Title: Unit 14: Digital Business in Practice
Assignment Title: DBP1: Digital Business Approaches (1 of 2)
Date Assignment Submitted: 11/11/2021
Please list the evidence submitted for each task. Indicate the page numbers where the evidence can
be found or describe the nature of the evidence (e.g. video, illustration).
Assessment Criteria Page no Evidence submitted
P1 Explain the range of digital approaches taken by
organisations. 3
P2 Explore the relationship between contemporary
approaches to digital business and their impact on
meeting KPIs successfully. 4
M1 Evaluate the importance of digital business to
organisations in a global context. 5
P3 Investigate a range of digital technologies used by
organisations to achieve business objectives. 6
M2 Assess the effectiveness of the use of digital
technologies on business objectives in a range of global
organisations. 6
D1 Critically evaluate a range of digital business
approaches within global organisations to promote new
business growth.
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Learner declaration
I certify that the work submitted for this assignment is my own. I have clearly referenced any
sources used in the work. I understand that false declaration is a form of malpractice. I am
aware that any case of plagiarism will be handled according to school policy.
Learner signature: Huyen Date: 10/11/2021
TABLE OF CONTENT
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I. Introduction………………………………………………………………………………
…3
II. Explain the range of digital approaches taken by organisations……………………...
…3
III. Explore the relationship between contemporary approaches to digital business and
their impact on meeting KPIs successfully……………………………………….……………4
IV. Evaluate the importance of digital business to organisations in a global context…..
…..5
V. Investigate a range of digital technologies used by organisations to achieve business
objectives…………………………………………………………………………….…………..6
VI. Assess the effectiveness of the use of digital technologies on business objectives in a
range of global organisations…………………………………………………………………..7
VII. Critically evaluate a range of digital business approaches within global
organisations to promote new business growth…………………………………………….. ..9
VIII. Conclusion ……………………………………………………………………..………10
IX. References………………………………………………………………………………...
..11
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I. Introduction
The process of creating new company designs by combining the physical and virtual worlds is
known as digital business. Customers are spending more money online these days, causing
businesses to shift their focus to online revenue streams and platforms. As the virtual economy has
evolved, people have become more acclimated to online commodities, leading businesses to explore
new market opportunities in the virtual environment. The purpose of this study is to look at how
businesses may navigate the digital environment. The paper will examine a number of digital
methods employed by various businesses and show how new approaches to digital business can
positively impact corporate goals. The study will also examine a number of digital technologies and
assess how effectively they are being used by a variety of international businesses to achieve their
goals. The benefits, drawbacks, and significance of digital business in today's globalized world will
also be discussed. Finally, the research will look into a number of digital business strategies for
boosting new business development within multinational corporations and make recommendations
to businesses all around the world.
II. Explain the range of digital approaches taken by organisations
 Blogging platform
Tumblr is a blogging platform for content creators to find a following and grow their following.
Users on Tumblr can create their own blogs and following, republish, like, and comment on those
of others, just like on other social networking sites (Arieez Dutta, 2020). When compared to other
social media platforms like Facebook, Tumblr’s business model allows users to be productive as
possible with their blogs by offering a variety of unique features. Bloggers are given access to a
settings tab tool for their readers to monitor their activity. A user’s blog can be kept private if they
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choose to do so. They delay their posts by several days or weeks in addition to keeping their
audience interested (Alex, 2021). By using hashtags, users may quickly look up specific topics on
Tumblr (Arieez Dutta, 2020). It is possible for blog visitors to ask and answer questions
anonymously or by revealing their name (Arieez Dutta, 2020). In addition, the website includes a
function that allows users to write letters to their favorite celebrities (Arieez Dutta, 2020).
 B2B Marketplace
Another example of a digital approach, Alibaba’s business model is distinct from those of retailers
such as Ebay and Amazon. It focuses heavily on transactions between businesses. For the most part,
Alibaba works with small and medium-sized enterprises to allow them to buy in large and then sell
it back in their local marketplaces for a return. E-commerce web portals provided by Alibaba are
largely used for business and business transactions, but the company also provides support for other
commercial initiatives via these portals. Through this platform, Chinese and other exporters can
reach buyers in approximately 300 various countries (Pahwa, 2020). The majority of the import and
export market’s customers are wholesalers, merchants, producers, and medium and small
organizations. Sellers can list their products for free on the site and features such as greater site
appearance and unrestricted goods postings are also offered to all who pay for it (Pahwa, 2020). On
Alibaba, suppliers could participate for free or pay for a higher level of membership (Pahwa, 2020).
Members of Alibaba’s free platform are limited to promoting their products and not publicizing
their reputation (Pahwa, 2020). For the rest of the supply members, Alibaba will verify their
reliability and require them to pay a price to become a gold provider (Pahwa, 2020). On the other
hand, Alibaba charges a commission fee to its Gold members based on the entire transaction
amount (Pahwa, 2020).
III. Explore the relationship between contemporary approaches to digital business and
their impact on meeting KPIs successfully
 Blogging platform
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A growing number of people are interested in the platform as a result of its growing user base
(QuaKyle Chayka, 2022). However, Tumblr’s blogging platform business strategy has stayed
unaltered since its beginning. Tumblr makes money from targeted advertising thanks to its
enormous user base (QuaKyle Chayka, 2022). Tumblr’s marketplace allows users to buy and sell
premium themes, which generates additional revenue. As a result, with more than 10 million posts
being written on Tumblr every day, Tumblr’s income is climbed by 55% in 2021 based on this
aproach (QuaKyle Chayka, 2022).
 B2B Markerplace
There are many other firms such as “Tmall and Taobao” that make up the large ecosystem that
generates Alibaba’s enormous earnings. China and other Asian countries have become familiar with
Alibaba because of its B2B approach, which facilitates international trade. Also, “the Chinese e-
commerce platforms Taobao and Tmall” have solidified its position in the market. Taobao
marketplaces account for further than 85 percent of all Chinese online purchases (Pahwa, 2020).
Since this approach has proven to be so successful in helping Alibaba reach their goals, the
company is expanding its reach and capitalizing on the pace it has gained. Alibaba’s sales reached
over 35 billion in 2021, up 40 percent from its KPIs (Macro Trends, 2021).
IV. Evaluate the importance of digital business to organisations in a global context
In a rapidly changing economic landscape, identifying consumers is critical. It implies that positive
customer engagement has become a requirement for running a successful business. Analytics is one
method for accomplishing this. Managers can use Google Analytics to track user traffic paths to
determine which content is effective and which is ineffective. Businesses can now use digital
analysis to learn more about their customers' purchasing journeys and determine the best time and
place to contact them. This may provide advertisers with information on how to retain these
customers and move them along the pipeline. Using digital analytics to learn what people like and
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dislike may help to significantly improve their consumer experience. As a result, key performance
indicators (KPIs) such as SEO, click-through rate, cost per click, and impressions may improve.
The global epidemic has altered the situation. Following the disruptions caused by COVID-19,
businesses cite effectiveness, resilience, profitability, ROI, and competitiveness as key factors in
digitally changing their businesses.
V. Investigate a range of digital technologies used by organisations to achieve business
objectives
Using cloud productivity tools such as Microsoft Office 365, employees can work and collaborate
more efficiently. It may also make employee collaboration easier by allowing them to share
schedules and exchange information through the cloud-based OneNote. Users can access data from
any location using this online collaboration feature. Workers can now work from anywhere and at
any time, resulting in increased efficiency and cooperation. Nike, for example, is a multinational
corporation that collaborates and shares feedback across its subsidiaries using Microsoft Office 365.
This will make it easier for managers at the headquarters to provide feedback on Microsoft Word
documents.
Another significant business goal is workforce management. Asana, a well-known tool, assists
managers in assigning tasks and tracking their performance. It encourages accountability, structure,
and collaboration. As the business world becomes more competitive, it is critical to improve team
management in order to foster professional cooperation and efficiency. Asana, for example, is used
by teams from a variety of industries. Asana is used by companies such as CBS, Dropbox, Uber,
Pinterest, and Airbnb. Uber employees use Asana to manage project status, subtasks, schedule
sessions, connect with other applications, and promote effective releases. Asana also allows Uber to
break down large jobs into smaller ones.
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VI. Assess the effectiveness of the use of digital technologies on business objectives in a
range of global organisations
Multinational corporations benefit from digital commerce in a variety of ways. Companies that had
previously successfully embraced the benefits of digital business were able to make quick changes,
rely on their cloud infrastructure, advanced security procedures, flexible organizational culture, and
a wide range of systems to create online working environments, virtualized commercial
transactions, and interconnections. Businesses can thrive in the industry by working faster and more
creatively. Thanks to modern antivirus software and best practices, cloud technology and
communications devices, for example, provide secure, dependable access to corporate operations at
any time and from any location. Additionally, automating speeds up and reduces errors. It also
redirects individual employees' attention away from tedious repetitive tasks and toward higher-
value behaviors that computers cannot perform, resulting in a healthier working environment,
increased productivity, and improved customer interactions. By analyzing large datasets to uncover
issues such as fraudulent behavior and then leveraging that research to create new revenue-
generating opportunities, artificial intelligence significantly changes a business.
The formation of a digital company allows a multinational corporation to rapidly expand and enter
new international markets. Global enterprises may discover and develop relationships in addition to
connecting new clients. As a result, along with many other competitors, multinational organizations
may benefit from this in terms of expanding their brand with new and existing clients. A company
can thrive in the global marketplace by keeping up with changing global client needs through digital
business. Multinational corporations must serve customers in a variety of locations. Each country
has its own culture and personality. As a result, digital business will help global enterprises better
understand their global clients through analytics and synthesize that information across branches. It
enables global organizations to compete more effectively in a constantly changing economic
environment as a result of technological advancements. Multinational corporations will benefit
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administratively and economically from competent digital crisis management. Furthermore, digital
business improves administrative production efficiency. It generates new business opportunities and
revenue streams, allowing for the development of new goods and services. A digital company can
also respond to changing customer demands at a faster pace.
IKEA, for example, has released IKEA Place, an Augmented Reality software. Customers can use
this application to evaluate IKEA products in real time. Customers can form their opinions by
searching an online archive of over 2,500 IKEA products. IKEA Place also allows customers to
store their favorite items, share them on social media, and make immediate purchases on the IKEA
website. The initial shipment of goods consists primarily of large-scale furnishings such as couches,
recliners, seating areas, and additional storage. IKEA Place assists customers in making purchasing
decisions by allowing them to be inspired and test on a variety of items, designs, and colors in real-
life situations.
Being available 24 hours a day, seven days a week is now a reality thanks to digital business
practices. This cutting-edge technology has simplified and improved the accessibility of data
processing and storage for businesses. Customers can buy items and use internet services quickly
and easily with a few taps. Cellphone purchases have become increasingly common as a result of
their obvious convenience.
Digital business approaches pave the way for online banking. Modern electronic technologies, such
as Blockchain, have the potential to greatly improve transaction efficiency. Using this
transformational strategy significantly improves customer satisfaction because a multi-day purchase
can be completed instantly due to Blockchain technology's quick data processing capabilities.
Expenses are reduced, as is the possibility of deception. It is now possible to target a larger number
of people at lower costs and with shorter processing times. Almost every bank now offers online
banking as a convenient method of payment. TPBank, a well-known Vietnamese bank, is even
considered a pioneer in high-tech live banking. Customers can be served immediately at TPBank
live banks, which have only one employee per location.
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As a result of digital business, e-commerce, a new and promising business sector, has new
development opportunities. The constraints of internet purchasing are also removed by digital
business. Ecommerce refers to the buying and selling of goods and services over the Internet. It
occurs on laptops, iPads, cellphones, and other mobile devices. Nowadays, almost anything can be
purchased through ecommerce. It can be used in place of physical storefronts, though some
businesses prefer to maintain both. Organizations can create a customized Amazon shop presence,
as well as their own ecommerce page on a separate subdomain, using a multi-channel strategy.
Amazon, for example, is a B2C e-commerce site that sells a single item to a single customer.
VII. Critically evaluate a range of digital business approaches within global
organisations to promote new business growth
To support new business growth, I will critically assess a variety of digital business tactics used by
worldwide firms. There are various techniques to promote the growth of new company, but some
are more effective than others. Some businesses employ AI assistants to create content for a variety
of platforms, including social media and websites. AI is increasingly being used in the day-to-day
operations of multinational corporations. It is used by online retailers such as Amazon, Walmart,
and Target to provide customer support with chatbots that can answer questions about products and
shipping timelines. Companies like IBM and Google are also using it for advertising purposes. In a
digital environment, there is no limit to the number of services that can be provided. For instance,
the future boardroom may be a virtual area where people from all over the world can congregate
and discuss their ideas. People could share displays and collaborate on projects in this digital
boardroom. Global businesses have been experimenting with diverse techniques to stimulate new
business growth. Most businesses are attempting to break into emerging markets, whether through
developing new products or services or investing in new regions. Organizations can now do
business with anyone in any country on the planet with just a few clicks of a button thanks to the
Internet.
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The digital world has changed the way people do business, and now is the time for businesses to
catch up or risk slipping behind their competition. Global businesses must adopt digital business
practices to keep up with the pace of change. These three aspects must be prioritized by companies:
 Infrastructure for information technology (IT)
 Governance for IT
 Analysis of data
Organizations should invest not only in new technologies, but also in staff training to ensure that
data insights are used efficiently. Business growth is a requirement in today's digital world. With
the rapid rise of digital transformation, every business must find a method to stay ahead of the pack.
This is where marketing and new business development enter the picture. Paid search engine
marketing, social media promotion, online video marketing, and other strategies are examples of
these tactics. With all of the advantages of digital business, it's no surprise that companies are using
it to drive new business growth. There are various ways to do business online, but some are more
effective than others. This essay will assess these various techniques critically and compare them to
one another. "A coherent approach that blends online and offline channels to achieve strategic
objectives" is how a digital strategy is defined. Many businesses would agree with the concept, but
not all of them have a consistent approach, which restricts the effectiveness of their plan. One of
these two digital approaches is called “hacking”. It is when use old marketing practices in new
spaces online - so it does not really offer anything new or innovative for the company/client.
VIII. Conclusion
By merging digital and physical resources in unique ways, digital firms acquire a competitive
advantage. Artificial intelligence, blockchain, and the Internet of Behaviors are all hot topics in
digital business. Enterprises are currently employing digital methods such as cloud productivity
solutions, task management apps, and analytics tools. Multinational companies can use these digital
business tools to help them achieve their objectives in areas like employee collaboration, team
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management, and digital KPIs. A global organization can quickly grow and access new worldwide
markets, understand global clients, and synthesize that knowledge across branches by forming a
digital company. Digital business facilitates internet banking, 24-hour services, and e-commerce.
Global corporations, on the other hand, should adhere to privacy laws and place a premium on
product quality.
(2616 words)
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References
Alex (2021) Tumblr: The Social Media Platform You Should Be Using | The Muse. Available at:
<https://www.themuse.com/advice/tumblr-the-social-media-platform-you-should-be-using>
(Accessed: 20 March 2022).
Arieez Dutta (2020) Tumblr Business Model | How Does Tumblr Make Money? | Feedough.
Available at: <https://www.feedough.com/how-does-tumblr-make-money-tumblr-business-model/>
(Accessed: 20 March 2022).
Emerging Trends in Digital Media | GEP (no date). Available at:
<https://www.gep.com/blog/mind/emerging-trends-digital-media> (Accessed: 10 November 2021).
How Technology Can Help You Grow Your Business (no date). Available at:
<https://blog.grantmcgregor.co.uk/2017/how-technology-can-help-you-grow-your-business>
(Accessed: 10 November 2021).
Ismail, M. H., Khater, M. and Zaki, M. (2017) ‘Digital Business Transformation and Strategy: What
Do We Know So Far?’ Available at: <www.cambridgeservicealliance.org> (Accessed: 10
November 2021).
Macro Trends (2021) Alibaba Revenue 2011-2021 | BABA | MacroTrends. Available at:
<https://www.macrotrends.net/stocks/charts/BABA/alibaba/revenue> (Accessed: 20 March 2022).
Pahwa (2020) Alibaba Business Model | How Does Alibaba Make Money? | Feedough. Available
at: <https://www.feedough.com/alibaba-business-model-how-does-alibaba-make-money/>
(Accessed: 21 March 2022).
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