Pearson BTEC Digital Business Approaches Report: Unit 14

This report, submitted by Nguyen Huong Thao, explores various digital business approaches employed by organizations. It begins by defining digital business and its components, differentiating it from e-commerce and e-marketing. The report then delves into specific digital approaches, including transactional e-commerce sites (like Amazon) and social network sites (like Facebook), and discusses emerging trends such as market and product portfolio models. It examines the relationship between digital business approaches and Key Performance Indicators (KPIs), providing examples of social network platforms (Instagram, YouTube) and online retailers (Amazon). Furthermore, the report investigates digital technologies like digital contact tracing, GPT-3, and natural language search, assessing their effectiveness in achieving business objectives. The importance of digital business in a global context is evaluated, highlighting its strengths and consequences. Case studies of Nike and GE Company are used to illustrate the application of digital technologies such as cloud computing, NFC, IoT, and Predix. Finally, the report provides recommendations and concludes with a summary of the key findings.

Learner Name: Nguyen Huong Thao
Assessor Name: Martin Ortega Azurduy
BTEC Programme Title: Pearson 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

Assessment Criteria Page no Evidence submitted
P1 Explain the range of digital approaches taken by
organisations. 3-8
P5 Explore the relationship between contemporary
approaches to digital business and their impact on
meeting KPIs successfully.
8-10
M1 Evaluate the importance of digital business to
organisations in a global context. 13-17
P3 Investigate a range of digital technologies used by
organisations to achieve business objectives. 10-13
M2 Assess the effectiveness of the use of digital
technologies on business objectives in a range of global
organisations.
17-19
D1 Critically evaluate a range of digital business
approaches within global organisations to promote new
business growth.
19-20
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: Nguyen Huong Thao Date: 11/11/2021

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Table of Contents
I. Introduction: ................................................................................................................................. 2
II. Body: ........................................................................................................................................... 3
1. Digital approaches organizations ............................................................................................. 3
1.1. Transactional e-commerce sites/Online retailer. ............................................................... 3
1.2. Social network sites: web-based services that enable individuals to create a public or
private profile inside a limited system ..................................................................................... 5
1.3. Publisher or media sites: ................................................................................................. 6
2. The emerging trends: ............................................................................................................... 7
2.1. The market portfolio model: ............................................................................................. 7
2.2. The product portfolio model: ............................................................................................ 7
2.3. Multi-sided business models: ............................................................................................ 8
2.4. Sequentially over time business models: .......................................................................... 8
3. The relationship between contemporary approaches to digital business meeting KPIs
successfully .................................................................................................................................. 8
3.1. Social network: Instagram and YouTube .......................................................................... 8
3.2. Online Retailers: Amazon ................................................................................................. 9
4. Some digital technologies used by organizations which help them achieve their objectives 10
4.1. Digital contact tracing ..................................................................................................... 10
4.2. GPT-3 .............................................................................................................................. 12
4.3. Natural language search: V-Ione ..................................................................................... 14
5. The importance of digital business to global organizations................................................... 14
5.1. The strength of digital business:...................................................................................... 14
5.2. Consequences of Technology: ........................................................................................ 17
6. The effectiveness of using digital technologies to meet business objectives of global
organizations .............................................................................................................................. 19
6.1. Nike is utilizing cloud computing and NFC ................................................................... 19
6.2. GE Company applying IoT and Predix into products ..................................................... 20
7. Digital business methods in promoting sales ......................................................................... 21
8. Recommendation: .................................................................................................................. 22
9. Conclusion: ............................................................................................................................ 22
References ..................................................................................................................................... 23

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I. Introduction:
With advancements in digital technology, a new generation of electronic devices has emerged.
It is apparent that it is time to reconsider the function of information technology and, as a result,
upgrade it to meet user demands. In general, though, it is always associated with business. It is
possible to classify the fusion of information technology and business as a single phenomenon
known as “digital business”.
Digital business is the creation of information systems or applications to service, particularly
utilizing internet technology to boost organizational productivity and competitiveness through
ongoing optimization (Turban et al., 2012; Strauss and Frost, 2014; Chaffey, 2015) . It is
defined differently from e-commerce and e-marketing because these two categories are only a
minor part in digital business. Aspects of digital business include content, e-information, and
e-communication (Merono-Cerdan and Soto-Acosta, 2005) or according to Lee and Han
(2009), e-procurement and e-process are also part of digital business.
• E-information entails product-related information such as pricing, specs, and delivery terms
and insight into a company's background (financial statements, employment, etc.).
• E-communication helps a company to communicate with a large number of business agents,
facilitating information sharing and the capacity to develop intimate relationships (feedback
forms, online chat services, etc).
• E-process are business procedures that keep the operational characteristics of the Internet-
centric company model working smoothly.
• E-procurement can be understood as the purchase and selling of products and services
between businesses and consumers or businesses and businesses over the Internet and other
systems (Electronic Data Interchange, Enterprise Resource Planning, etc).
People are using digital resources to generate new values, expanding beyond the traditional
scope of accomplishing everything through a computer screen to satisfy all of the functions.
Trading, supply chain, and marketing are just a few examples. Electronic tools, methods,
devices and resources built to store or process data are known as digital technologies. It serves
as the foundation for telecommunications, computer systems and assist people in producing
and finance (Designing Buildings Ltd, 2021).

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II. Body:
1. Digital approaches organizations
The explosion of digital business between business and consumer (B2C) has shown the strong
growth of online business. B2B companies are also rushing to find new opportunities in the
global B2B e-business market. For the online platform, the biggest benefit that businesses can
achieve is access to many potential markets at the same time without having to pay the cost of
renting space or sales personnel. Especially in the covid-19 era, manufacturers who knew how
to approach and apply digitization early have grown at twice the rate and far ahead of their
industry competitors. This has pushed manufacturing businesses to take more exposure to
digital and increase its application in business to cope with the global economic crisis. Digital
approach can be considered as a full-service digital marketing agency from website design,
branding to advertising as well as providing full information and data with the purpose of
affecting the target audience that the business is targeting. It is not only used to promote
products and services, from that relying on the database to reach consumers and bring in
revenue(Varia and Mathew, 2013) but also used to post relevant information about the business,
topics of interest to businesspeople or simply sharing of practical experiences.
- The range of multiple digital approach include:
1.1. Transactional e-commerce sites/Online retailer.
These sites let consumers to make purchases over the internet. The selling of these items is the
company's primary source of revenue on the internet. Businesses benefit from websites because
they provide information to customers who prefer to buy things in person. Retail websites,
travel websites, and online financial services are among them.
For example: Amazon Web services
Amazon has a long history of implementing Decentralized Technology infrastructure. They
have spent over a decade and invested a lot money in establishing and operating at scale,
resulting in one of the world's largest online retail platforms by 2005. They established Amazon
Web Services (AWS) so that other enterprises could benefit from their knowledge by deploying
applications and services at a low cost, from large-scale distributed operations to transactional
infrastructure. By using this platform, users can easily try many features such as calculating
energy, storage, and other services just for few minutes. Furthermore, this service allows clients

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to select an efficient programming model for the issues they are attempting to address. This
includes many small platforms (Varia and Mathew, 2013).
*Compute & Networking:
• Amazon Elastic Perform Cloud (Amazon EC2): offers resizable computing capacity in the
cloud as well as management over computing resources, with the goal of making it easier for
developers and system administrators to compute Web scale arithmetic.
• Auto scaling: enables users to dynamically raise or reduce their Amazon EC2 capacity
while preserving productivity and cost savings.
*Storage & Content Delivery Network:
• Amazon Simple Storage Service (Amazon S3): Internet storage that makes it easier for
developers to expand the web.
• Amazon Glacier: a low-cost storage solution that offers safe and long-term storage for data
preservation and backups.
And many other services about Deployment &Management, App services, Analytics, Cross-
services, etc.
It can be said that Amazon is a new generation of digital intermediaries who generates some
intriguing dynamics and decision points for merchants. They really handle a lot of intermediary
duties, such as shipping, storage, and e-commerce, to name a few. However, Amazon's worth
is not limited to their great website design talents; they also have a large and dedicated
consumer base, making them a strategic alliance. Many small businesses find it appealing
because of its potential. Amazon encourages "bargains" for companies in their ecosystem
because they believe customers will have a positive experience. Customers will tend not to ask
for anything more as a result of the appealing offerings that provide them delight since they
believe they have earned both benefit and profit, which is the underpinning for companies to
be able to raise prices higher and generate more profits. In the digital era, topics that consumers
care about now include the cost of delivering such products to their house, as well as how the
firm packages the product so that product quality is not compromised in the process shipping
and also delivery time. It is unavoidable for stores to collapse and brands to die in the period
of digital because they do not know how to reinvent tactics, attract and keep customers by the
help of intermediaries like Amazon.

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1.2. Social network sites: web-based services that enable individuals to create a public or private
profile inside a limited system , from which they may peruse a list of other users without sharing
connections or lists of people they may know. Businesses are gradually discovering the value
of social media and are eager to capitalize on the potential to broaden their relationships.
Because of these capabilities, it has had a significant impact on company contact with
customers and has increased corporate productivity.
For example: Facebook
Social media has evolved into a valuable and necessary tool for customers to utilize in making
decisions, raising awareness, sharing information, forming opinions, and even making
purchases and reviews post-purchase encounter. When customers plan a vacation or book a
hotel or restaurant, they frequently rely on internet reviews for information (Jeong and Jang,
2011) and many people also rely on information on the restaurant's webpage to determine
whether or not to select it (Kimes and Sheryl, 2011). According to (Pantelidis and Loannis,
2010), the majority of tourists believe the evaluations of other consumers on social media. For
example, in its $6 billion strategy to reinvigorate the Sheraton Brand, Starwood Hotels used
social media. Sheraton launched a new website that connects to Facebook in November 2009,
allowing visitors to publish their "Sheraton tales" on both platforms at the same time (Sheraton
Hotels & Resorts, 2009). The reality is that regardless of whether a company chooses to use
social media, customers are likely already expressing their experience on their homepage or on
review sites. Facebook is one of the most well-known social networking platforms. In October
2010, it became the most visited (Dev, Buschman and Bowen, 2010), with 42.6 billion minutes
of user time. According to a research, Facebook had 500 million users in August 2010, with
half of them logging in daily; the typical person spent 46 minutes per day on Facebook (Zhu et
al., 2011). According to a recent poll conducted by the Association for Management Human
Resources, 45% of respondents believe Facebook has become the most popular website for
many organizations to engage with partners and consumers. Some businesses even allow
customers to write comments on their websites or check in using their Facebook credentials.
As a result, customers may instantly communicate information with one another, and
businesses can swiftly propagate their messaging. The endorsements of corporate messaging
by Facebook users may be critical in demonstrating the efficiency of a company's social media
efforts. Recognizing the importance of social media and Facebook to companies, academics
and practitioners have held frequent discussions on the subject (Bronner and de Hoog, 2011).

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The various effects of customers' gender and degree of reading online reviews using the WOM
framework. They read internet reviews to update the news on the market. Besides, a
quantitative technique by Lee, Xiong, and Hu (2012) has been used to investigate the
connections between Facebook users' emotions expressed on Facebook pages regarding events.
Facebook marketing showed that it also has a significant impact on their decision to attend and
user's emotional attachment to an event page might boost the page's perceived usefulness.(Lee,
Xiong and Hu, 2012). In general, Facebook is often regarded as one of the most powerful social
media tools for business to advertise and connect with customers as well as partners.
1.3. Publisher or media sites: give information, breaking news, or entertainment on a variety of
topics, both on the website and via links to other websites. This publishing process includes the
construction and uploading of web pages, updating linked websites, and posting material to
these sites online. Advertising, commission-based sales, and sales of user data on media sites
are all ways for businesses to earn money.
Publishers, like many other businesses, are hoping to use the publisher site as a tool to help
them expand their business. They frequently use the web to provide an online searchable
catalog, augment conventional marketing, add value to traditional print services, and do market
research on clients. All publishers' online catalogs will be viewable on the web. Some
publishers enable customers to buy online, but it does not appear that this is a commercial sector
that they are particularly interested in. As security measures grow safe and used widely
recognized, they may be increasingly eager to sell directly over the Internet. Furthermore,
publishing websites are viewed as a marketing tool, with publishers merely needing to provide
the same type of promotional content on the Internet. Some author interviews, for example, are
now conducted online. Publishers may showcase new books on their websites, give snippets
and reviews, and more, in addition to print, radio, and television. The ultimate goal of
publishers' usage of the website is to collect information on the individuals who visit their
website and utilize their services. When someone submits personal information over the phone,
via mail, or online, it may be recorded.
For example: BBC
In 1996, BBC was formally established and quickly became the world's largest news agency
with millions of web visitors (Sutherland, 2008). The BBC is often regarded as the leader in
digital technology in the United Kingdom. They undertook a variety of advertising efforts to

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lure people "through the online," and computer equipment was set up at several local BBC
radio stations to allow individuals unfamiliar with the Internet can connect to the internet for
free and seek assistance online (Sutherland, 2008). Chairman Michael Grade previously stated
that the UK digital industry would not be as established as it is now if BBC.co.uk did not exist.
In terms of company's objective, BBC want to be the most innovative and trustworthy
broadcaster producer in the world. They always find a method to fulfill all of the British
people's needs by offering information, education and entertainment services, which helps them
generate income and companies also attract more clients. According to BBC News, they have
assisted a lot of firms both at home and abroad in advertising in order to support journalism
and alleviate the financial strain of paying media taxes. BBC content is created and delivered
through collaboration websites. This means that partners may utilize BBC News headlines on
their websites, and a simple click on the title will lead viewers directly to the relevant BBC
News item (Sutherland, 2008). These transactions have been highly successful; not only does
collaborating with a well-known worldwide website provide prestige to partners and businesses
but it also helps to raise thousands of views to the BBC website.
2. The emerging trends:
The new digital industry model's presence: According to data, an increasing number of
businesses are using digital business practices.
2.1. The market portfolio model:
A firm starts with two or more business models to cope with diverse markets. Every company
model here may not be unique and financial returns in certain minor market ratings may be
little, but by sharing some aspects of the business model, the sum of expenditures and revenues
can be beneficial for the industry. It is likely that modern technology will play a vital role in
reducing expenditures and ensuring finances.
For example: the print firm and video games have already been explored.
2.2. The product portfolio model:
Now, the creation product may be utilized in a variety of ways, including the production of new
items. This is an excellent chance for businesses to create a succession of new items that will
move through the phase. Furthermore, it provides the buyer with additional alternatives because

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the product in the middle of something that is working may be independent or developed further
to new items that are almost identical to the original.
For example: A painting is sold in limited quantities, but the different events of the painting's
development are recorded in digital technology, creating new items. Therefore, buyers still
have an opportunity to get it. The paintings are printed digitally with the same or even better
quality as the originals. Similar examples may be found in traditional studies of cinema, music,
publishing, and media. This gives public markets an advantage in competing with established
markets. If the company understands how to use it, the value of revenue is built of a product
that may offer them with a good income.
2.3. Multi-sided business models:
Value is created through relative interactions with important parties in a complicated network
(Bughin, Chui and Manyika, 2010). In this case, the corporation connects to suppliers, clients,
and other side effects by using various businesses over a digital foundation.
For example: In the music industry, revenue is generated through a variety of contracts such as
the sale of brochures, promotions, concerts, and commodities.
2.4. Sequentially over time business models:
For example: Prior to the event, the program will begin selling tickets so that the public may
attend the auditions for the artists. Furthermore, the corporation offers special items and
security constraints that only the early and quick may be aware of. It is feasible to claim that
the enterprises have made the most of their capacity to grab market attention by offering unique
items and value to the customers.
 By maximizing income from market niches and taking advantage of different phases and
periods because of emerging trends, firms have been able to reduce risk and increase
resilience.
3. The relationship between contemporary approaches to digital business meeting KPIs
successfully
3.1. Social network: Instagram and YouTube
Because of this high frequency of usage, several beverage firms have used social networking
sites in collaboration with celebrities to achieve mass marketing impacts. Coca-Cola, which

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used the same strategy and was successful in its 2016 campaign, is a good example. Coca Cola
has teamed with 12 Belgians, including Instagram influencers to approach Belgian youth to
contribute to the "Taste the Feeling" campaign. Yannick Merckx, a travel blogger, and
YouTuber with over 48,000 Instagram followers, is one of them. To assist marketing, his
Instagram postings included images of him carrying a can of Coca-Cola or other clothes and
accessories associated with this brand. Besides, Yan did not forget to share his thoughts,
feelings for Coca-Cola and also "accidental" praises in the comments of his posts. Not only
that, hashtags like #cokeaprisador, #cocacola, and #tastethefeeling are used to connect with
other Instagram users (Lui, 2021). Not only that, but this campaign is also implemented by
Coca Cola on Youtube to attract young people in Croatia with the combination of 2 Youtube
channels, Joomboos and 24sata doo (Eliasson, 2018). They have launched a weekly broadcast
show with the goal of discovering youthful talent between the ages of 14 and 30. Coca-Cola
and the two YouTube channels it combines have achieved incredible achievements because of
their usage of YouTube as a communication tool:
- The program has over 2000 subscribers, which is more than any other reality TV show in
prior years.
- Joomboos' channel received 16,000,000 minutes of video watch time (about 4 minutes per
viewer), views grew by 127%, and engagement increased by 159%.
- Coca's YouTube channel has also seen a significant surge in followers, more than doubling
in only 2 months and increasing by 5 times when compared to average.
- Joomboos' other social media platforms, such as Facebook and Instagram, have a larger fan
base, which has grown by 150 and 300%, respectively.
3.2. Online Retailers: Amazon
According to (Dinh, 2019), on September 13, 2021, VietinBank collaborated with Amazon
Web Services to introduce VietinBank iPay Web, which was built and launched fully on
Amazon. This is the most widely utilized cloud computing platform, demonstrating that digital
transformation is an unavoidable trend for this bank and is also the "key" for enterprises to
bring goods to market with excellent customer service responsiveness. According to a
VietinBank spokesman, the new IPay site is developed with new functionality such as high-
speed caching, numerous distribution networks, auto-scaling based on demand, multi-layer
security, and stringent monitoring features. VietinBank IPay Web, which is fully managed on

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a cloud computing platform, also provides consumers with a consistent and seamless
experience across all web browsers and technology devices.
According to VietinBank's financial report, for the third quarter of 2021, the bank continues to
handle capital expenses well, increasing net revenue including payment operations, money
transfer, etc. Total assets of this bank were over 1,500,000 billion VND at the end of September
2021, up 7.9% from the start of the year. Furthermore, VietinBank's pre-tax profit in the third
quarter of 2021 was 3,060 billion VND and their pre-tax profit in the first nine months of 2021
was almost 14 million VND, up 34.2% over the same period previous year. Until the third
quarter of 2021, this bank only made a pre-tax profit of 2,790 billion VND compared to the
second quarter of 2021 (VietinBank).
4. Some digital technologies used by organizations which help them achieve their objectives
4.1. Digital contact tracing
In a time of rampant sickness, Covid-19 is spreading more broadly and incredibly rapidly,
requiring scientists and companies to work extra hard to develop ways to combat it. For
example, digital contact tracing is gaining popularity and being used by several governments
to address the SARS-CoV-2 Pandemic. Because of the sluggish transmission speed, manual
contact tracing is no longer an option for reaching individuals in this day and age. Meanwhile,
the scalability and speed of the digital strategy, which makes use of the proximity sensor on
smartphone devices, can help tackle the pandemic (Ferretti et al., 2020). When a digital contact
tracking program meets the requirements of a clear algorithm, epidemiologically pertinent,
evaluated by modeling and can be optimized when the epidemic grows difficult, it has the
ability to halt an epidemic (Hinch et al., 2020). According to Ma et al.(2020), Ganyani et al.,
(2020) and (Ferretti et al., 2020), half of COVID-19 infections spread before the patient exhibits
symptoms, potentially leading to a global epidemic. In addition, those individuals who are not
afflicted will have to be quarantined to safeguard the safety of the others. Hence, employing a
digital contact tracing can be a good solution.