BTEC Level 5 Diploma: Digital Business in Practice Assignment

This report, submitted as part of a BTEC Level 5 Diploma in Business (Accounting and Finance) Unit 14: Digital Business in Practice, explores a range of digital approaches taken by organizations. It examines online retailers like Amazon, social networks such as Facebook, and the expansion of B2C and C2C models exemplified by Alibaba. The report investigates digital technologies, including digital contact tracing, robotics, and AI, and their impact on meeting key performance indicators (KPIs). It evaluates the importance of digital business in a global context and assesses the effectiveness of digital technologies on business objectives. The report includes case studies, data analysis, and a critical evaluation of digital business approaches within global organizations to promote new business growth, concluding with a discussion of the future of digital business and its impact on various sectors.

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 Quang Huy
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
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. 3,4,5
P5 Explore the relationship between contemporary
approaches to digital business and their impact on
meeting KPIs successfully. 6
M1 Evaluate the importance of digital business to
organisations in a global context. 8,9
P3 Investigate a range of digital technologies used by
organisations to achieve business objectives. 7,8
M2 Assess the effectiveness of the use of digital
technologies on business objectives in a range of global
organisations. 9,10
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: Huy Date: 11/11/2021
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Table of content
I. Introduction………………………………………………………….3
II.
P1 ……………………………………………………………………………3,4,5
A1: Online Retailer
A2: Social network
A3: Expand B2C and C2C
P2…………………………………………………………………………….6
A1: Amazon roasted a 6 per cent increase in conversions over last year’s Prime Day (2018)
A2: Social Network: Facebook: Facebook has 2.85 billion Monthly Active Users during Q1 2021
A3: Alibaba Group has a market capitalization of nearly 718 billion yuan in 2021 and more than
last year nearly 210 million yuan
P3 ....................................................................................................................7,8
A1: Digital contact tracing
A2: Robot (use robot in the produce)
A3: AI (use AI to manage):
M1…………………………………………………………………………. 8,9
M2………………………………………………………………………….9,10
D1……………………………………………………………………………10
III. Conclusion………………………………………………………….11
IV. References…………………………………………………………11
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I. Introduction:
Digital business is the practice of using digital technology to innovate marketing strategies and
improve a company's goods and customer experiences—creating new value through goods and
making connections to objects, insights, and experiences. E-commerce refers to the purchase and
marketing of goods and services through the web, as well as the movement of funds and data to
complete a transaction. It's sometimes referred to as "e-commerce" or "internet trade."
II.
P1
A1 Online retailer: Online retailer can be understood as online shopping, customers may browse,
choose, purchase, and sell things on the internet.
Amazon began as an online bookstore, selling the world's biggest selection of books to anybody
with an Internet connection. Following the publication of a forecast on the future of the Internet,
which predicted annual web commerce growth of 2,300 per cent and because the vast majority of
people shop on the internet, Bezos compiled a list of 20 things that might be sold online, which he
then tackled by establishing himself as an online retailer.
Amazon buys products from businesses, independent sellers, and manufacturers at wholesale prices.
The seller's inventory is subsequently sent to Amazon, who markets and sells it to customers on
their website through Amazon Vendor Central. The goods are dispatched from Amazon’s
warehouse when an order is placed (Webter,2017)
Amazon is a huge online retailer with a market valuation of more than $268 billion dollars in the
United States as of June 2018. Amazon allows people and companies to sell and display things for
sale online, in addition to being an internet company. As a result, Amazon is the most popular
online retailer.
Amazon is the current model of gatekeeper, and it does what all commercial intermediaries before it
has done: gather a collection of items for consumers to purchase effortlessly. For e-commerce,
Amazon has disintermediated an entire supply chain, and now it's looking at last-mile transportation
to take out the major carriers (DHL, UPS, FedEx) from the distribution chain and accomplish its
ambition of user fixation. (Cuofano,n.d)
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Amazon derives money via its own purchases, incentives, marketing, subscriptions (Prime), online
services (AWS), licensing, and patents, as previously stated (Pereira,2021)
A2: Social network application and groups:
Facebook began as a platform for individuals to connect, interact, and share with one another, but as
technology advanced, co-founder Mark Zuckerberg altered approach by allowing users and
businesses to market themselves and their goods. Since then, the majority of Facebook's revenue
has come from advertising.
Mark Zuckerberg also has a long-term ambition for Facebook that extends well beyond what the
company is now accomplishing. This encompasses social e-commerce as well as augmented and
virtual reality.
In 2020, Facebook will generate an aggregate of $32 in each of its users throughout the world,
totaling $84 billion in advertising income and an extra $2 billion from its non-advertising business
(Franek,2021).
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Facebook's ad program is used by roughly 10 million marketers, the majority of which are small
companies. Not only does the Facebook Marketing platform allow them to show advertisements to
targeted users, but it also provides thorough performance analytics on how different campaigns and
images perform. Businesses may then test which kind of campaigns and which types of people work
best based on this information.
Facebook's key revenue-generating assets are its users, and the effectiveness of Facebook's business
strategy is heavily reliant on them. Users, on the other hand, are not Facebook's main customers;
rather, advertising is.
The price that companies pay for advertisements on Facebook is set by activity where advertisers
compete with one another, search engine, Facebook's major competition for ad money. It's not only
about the price advertisers give Facebook when a user presses the button to agree on a price.
A3: Expand B2C and C2C:
Alibaba started off as a B2B enterprise. Alibaba's B2B business strategy caters to clients all around
the world and makes shopping easier. Alibaba has linguistic collaborations with a variety of nations.
Buyers may quickly look for and purchase Alibaba items on the system as a result of this. After
that, with Taobao and Taobao Mall, Jack Ma extended into other areas of e-commerce, including
B2C and C2C, and subsequently into many more sectors of e-commerce to establish a full
ecosystem. When Alibaba established 1688.com in 2003, an e-commerce site comparable to
Alibaba.com but focused on the exchange of goods between domestic enterprises, it represented a
significant turning point for the company (Vincenzoraffaoo,2017)
Alibaba was appraised at 130 billion dollars on the New York Stock Exchange in 2014, owing to its
extensive expansion.
Alibaba.com makes money through collecting fees to merchants who have a shop on the internet, as
well as commissions on sales. Alibaba's major website is Taobao.com. It's comparable to eBay,
only merchants don't have to pay a service charge. Merchants, on the other hand, pay for ad
positions.
P2
Distributor model, inter-model, component model, and systems control model are four business
models that use digital transformation. Modern approaches can be concepts that did not materialize
in the 3.0 technology era but are now being used to reach 4.0. Working with intelligent personal
agents is possible in the 4.0 era.
A1: Online retailer: Amazon roasted a 6 per cent increase in conversions over last year’s
Prime Day (2018)
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Prime Day 2018 was Amazon's greatest selling day ever, has over 100 million products sold. It has
a 6 per cent conversion improvement over 2017 and a 122 percent conversion boost over the
previous week. In addition, more new Prime Customers have recently joined this day than on any
other day, and the event has spread to 17 more regions, with the prospect of future growth
(Gartenberg,2018)
A2: Social Network: Facebook: Facebook has 2.85 billion Monthly Active Users during Q1
2021:
On April 27, 2021, Facebook published its Q1 2021 earnings figures on its international capital
markets. As of March 31, 2021, Facebook has roughly 2.8 billion Monthly Active Users, according
to the research. From 2020 to 2021, there was a 9.9% year-on-year growth. As of March 31, there
were roughly 1.8 billion Daily Active Users, which was an increase approximately 9% year over
year (Denzer,2021)
A3: Alibaba Group has a market capitalization of nearly 718 billion yuan in 2021 and more
than last year nearly 210 million yuan:
Alibaba expanded from a B2B platform to a B2C and C2C platform, achieving approximately 518
million yuan and exceeding their aim by more than 209 million yuan over the previous year.
P3
All electronic instruments, automated systems, technical equipment, and resources that produce,
process, or store information are included in the definition of digital technology.
Types of digital tech:
- GPS, What3Words and Location
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- 5G and Virtual Reality
- Smart homes
- Cloud and SaaS
- Artificial Intelligence
- Bitcoin and block chain
A1: Digital contact tracing (Keep corona virus infect less than 1000 F1s in Nov 2020)- (Smart
Objectives): As the corona virus spreads globally, it will be very difficult for any country to manage
cases that have been and will be affected. By using GPS or Bluetooth, the Vietnamese government
can manage infected patients with management by reporting their journey on an application with
GPS, or with a nationwide connection to correct the disease. The government is easy to manage like
an electronic health management book. The goal of the Vietnamese government is to minimize the
spread of corona virus globally and the infections must be less than 1000 F1. Firstly, the
government has a main and specific goal, they have to mobilize all the people to use that declaration
application so that the government can catch all possible cases. The second thing is that things can
be measured, the cases of infection in the community that have occurred can hardly be very large,
but the government can slowly solve it one by one if using that application. The third thing is
feasibility, they can solve and blockade from tens to hundreds of infections per day. The fourth
thing is practicality. Currently, there are not too many F1s cases in Vietnam, which the Vietnamese
government can easily guarantee. The last thing is to set the time, because the Vietnamese
government was able to handle cases in 1 day from a few dozens to a few hundred cases, they
guarantee to reduce the number of F1s cases in just 10 days. up to 15 days
A2: Robot (use robot in the produce): Traphaco is also a digital transformation company during the
stressful time of the Covid 19 epidemic, with important changes in management system
management, apply digital transformation, update online sales and increase strengthen R&D
capacity. Catching the trend, Traphaco has actively invested in modern pharmaceutical technology
according to international standards, using robots in production to create the leading advantage of
Pharma 4.0 in Vietnam; application of information technology in sales management; applying ERP
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in enterprise management; analyzing and exploiting customer data through the BI system, assessing
the capacity of each agent and pharmacy to optimize sales policies.
A3: AI (use AI to manage): The huge technical core that keeps Amazon humming is completely
based on Linux. The primary Amazon data warehouse consists of approximately 30 HP servers,
each with four CPUs and running Oracle 9i database software. Its purpose is to offer a reliable,
secure, and maximum execution platform for Amazon EC2 programs. It offers tools that make
AWS connection simple and covers the newest EC2 instance type features. This makes Amazon
handled 1 million deliveries and 20 million product adjustments in a single day. (Layton,2021)
M1
Reduced cost and time-to-market, as well as higher productivity and enhanced customer service, are
all inherent benefits for companies that establish successful digital enterprises. The capacity of a
company to swiftly grow and expand operations; discover and facilitate collaboration; reach new
strategy is to expand their brand with fresh and innovative consumers and inventors, among many
other benefits gained from creating a great business (Croshland,2016)
A1: Amazon is the online retailer in the world. Amazon's consumer program has been decided to
expand to provide a dedicated global marketplace for businesses that buy online and other vendors.
Consumers can buy on behalf of their business, based on built-in reporting and hierarchy rules.
Amazon Business is a prime example of the ideal 'digital consumer' transition to a B2B world.
While building consumer and e-commerce success in the B2b market is difficult, for many of these
B2B providers, an Online Presence is a viable or sought-after service.
-Strength and Weakness of B2B
This digital business strategy has its own set of advantages and disadvantages. Firstly, it has the
ability to swiftly and easily attract large bulk customers, provide a different product catalog that is
only available to purchasers, and have more management over Seller Account statistics by only
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selling to particular B2b marketers with specific qualifications and certifications. Secondly, the
finder's fee reduction is only accessible for select categories, and there are substantially more severe
performance measures criteria in this digital business. Furthermore, because corporate purchasers
frequently request a quote, extra customer care is required.
A2: Ended of July 2015, Facebook Live was handed out to a small group of knowledgeable users.
In the months that followed, the firm grew to include apple and Android customers all around the
world. Everyone will be able to go live by April 2016. From there, Facebook may enable businesses
and corporations sign contracts for livestreams and monthly commercials, in addition to programs
like supporters and donating stars by purchasing star packages, which let Facebook earn a lot of
money by allowing viewers to recharge as supporters or purchase stars. Since then, many
companies have signed cooperation agreements with Facebook such as OTA Network or Creatory
-Strength and Weakness of Facebook Live: This digital business strategy has its own benefits and
drawbacks. The first is the power; when this company plan is implemented, it is as if a fresh wind
has been blown into everyone's life; anybody can watch sales, exchange experiences, and confide in
others. From there, Facebook can amass a big number of users and generate a lot of revenue.
However, it has always had a flaw in that, in addition to livestreaming to sell or advertise
themselves and their firm, there are sensitive pictures or items on the livestream platform that incite
violence.
M2
Interaction, coordination, content marketing, accessibility to marketing analytics, and social
networking, as well as employee and customer experience, may all benefit from digital technology.
Successful businesses are adopting technology to establish digital workspaces that help them
collaborate more effectively.
Amazon uses the Netscape Secure Commerce Client software to save all account information in a
variety of databases that isn't accessible via the Internet, removing a potential entry point for
cybercriminals. Customers who are extra careful might input only a portion of their credit card
details online and then supply the remainder over the phone once the purchase is accepted. Aside
from the regular security problems about internet payment purchases, Amazon has the same
hacking issues as eBay and PayPal, so be on the lookout for bogus e-mails asking for their users'
Amazon.com bank details. Customers can feel safe when making purchases on Amazon because of
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this. Many people have trusted Amazon since then, and it is the first place they go when they need
something.
Machine learning is used by Facebook. Facebook built a computer that reads text and assesses the
meaning of certain phrases. Regardless of languages or slang, this program can figure out what a
word means by looking at its context, where it comes in a sentence, and what the neighbouring
words are. The main goal of this AI is to target people with certain items interacting, comments, and
responses. Facebook may utilize this to highlight or market the things they intend to introduce to
their users. Facebook has met its objectives thanks to AI technology. (Todd,2019)
D1:
Trying to penetrate new markets, extending product range, variety, and mergers are the four digital
techniques for new growth business.
Penetrating new markets: Last time, KFC company only sold fast food in a few big cities in
Vietnam, but after applying a new market penetration strategy, KFC has spread countless stores
across Vietnam.
Expanding product: Amazon exclusively sold books online in the early years of its existence.
However, they now sell a lot more stuff, such as video games and other necessities.
Diversification: Vingroup is only one of their specialized firms; but after this, they also expanded
Vinpearl, which caters to the tourist sector, Vinfast, which sells vehicles and electric motorcycles,
and Vinsmart, which sells phones.
III. Conclusion:
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Over the past few years, digital business has been an important expected standard. Almost all
famous companies in the world use digital business in their field, since then they have achieved
certain success. Vietnamese enterprises, especially medium and large enterprises, small, trying to
catch up and start to adapt. Despite the difficulties and obstacles faced by Vietnamese SMEs due to
the above circumstances, they are gradually adapting and settling into the development, and some
have had their first successes.
References
Crosland (2016). Why it’s important to understand digital business. Available at:
https://www.cio.com/article/3044557/why-its-important-to-understand-the-digital-business.html
Cuofano (n.d). What is disintermediation? Available at:
https://fourweekmba.com/disintermediation/
Denzer (2021). FB had 2.85 billion Monthly Active Users. Available at:
https://www.shacknews.com/article/124098/facebook-fb-had-285-billion-monthly-active-users-
during-q1-2021
Franek (2021). How Facebook Makes Money. Available at: https://www.kamilfranek.com/how-
facebook-makes-money-business-model-explained/
Gartenberg (2018). Amazon Prime Day 2018. Available at:
https://www.theverge.com/2018/7/16/17570304/amazon-prime-day-best-deals-tv-echo-kindle-sales-
2018
Layton (2021). How Amazon Works. Available at: https://money.howstuffworks.com/amazon.htm
Pereira (2021). Amazon Business Model. Available at: https://businessmodelanalyst.com/amazon-
business-model/
Vincenzoraffaoo (2017). Alibaba-Taobao-Tmall. Available at:
https://mytradechinablog.wordpress.com/2017/05/29/alibaba-taobao-tmall-c2c-b2c-b2b-any-
difference/
Webster (2017). Say Hello to The New Retail Intermediary. Available at:
https://www.pymnts.com/news/retail/2017/ecommerce-giant-amazon-replaces-walmart-as-the-new-
intermediary-of-retail/
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