Comprehensive Report: FINCODE Digital Business Strategies and Analysis

This report provides an in-depth analysis of FINCODE, a UK-based digital business specializing in software solutions for small and medium-sized organizations. The report begins with an introduction to digital versus traditional business models, highlighting the advantages of digital transformation. It then details FINCODE's digital business model, exploring its strengths, weaknesses, opportunities, and threats. The main body of the report delves into FINCODE's digital business activities, including the development of money transfer applications and the plaixal electronic timesheet. It also examines FINCODE's mode of operations, market segmentation strategies, and the digital business environment, including macro and micro factors. The report further analyzes the market place using Porter's Five Forces model and discusses market growth factors. Finally, it explores the external factors impacting business operations through PESTEL analysis, providing a comprehensive overview of FINCODE's digital business strategies and performance. The report concludes with a summary of key findings and recommendations.

Digital Business

Table of Contents
INTRODUCTION...........................................................................................................................1
Difference between Digital or Traditional business....................................................................1
Digital Business Model...............................................................................................................2
MAIN BODY...................................................................................................................................2
Digital Business Activities..........................................................................................................2
Mode of operations.....................................................................................................................3
Market Segmentation..................................................................................................................4
Digital Business Environment.....................................................................................................4
Market place................................................................................................................................4
Market growth.............................................................................................................................5
Key growth factors of digital business........................................................................................6
External factors impact on business operations..........................................................................6
CONCLUSION................................................................................................................................7
REFERENCE...................................................................................................................................8

INTRODUCTION
Digital business is the development of business where they entered in the digital world to
provide digital solutions. Companies use the different technology in their operational functions
which make them task complete in more effective way (Fleisch, Weinberger and Wortmann,
2015). Use of technology help the business to provide their capabilities to their user with the help
of digital platform. Currently, almost every organisation use the technology which help the
manager or top management in their decision making process. Manager develop various digital
business strategies which is beneficial for the organisation. Digitalization of the business will
create value for customer, increase their experience, business model and support core operations
with the help of internal capabilities. To be understand better, this report chose the FINCODE
which is UK based company who deliver various technical solutions to small & medium size
organisation. Through developing software applications for the organisation. It is established in
2003 and it's working environment is people oriented. Core value of the FINCODE is powered
by innovation, team work, vision, creative thinking deliver top class services. Vision of the
company is to develop financial technology application for the customers across the world. It
will help them which make them economically independent where they have assess of finance in
short period. It is began in 2003 with the team of developer who have true passion regarding
technology & service channels. Mission of the company is to change he way of money to use .
So FINCODE help the other businessman to transform their organisation into Fin-tech
powerhouse (Guilloux, Locke and Lowe, 2013). Where all the transaction done in electronic or
digital way. Their are various products introduce by the organisation to change he method of
work such as money transferee application, plaixal is electronic cloud-based time-sheet and
currency trading tool. This tool include the various currency point of sale and it is linked with the
different accounting solutions such as money exchange, forex solutions for the small & medium
size business.
Difference between Digital or Traditional business
Digital Business Traditional Business
Use of new technology in their operational
functions which enhance customer experience,
internal capability and create value for the
Traditional business is like, open single store
in their area where they sell their products or
services to local consumers.
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business model.
Digital business help the customer to save their
to physically appear to buy.
Here, customer physically visit the store and
purchase goods according to their need.
Digital Business Model
Strength Weakness
 Unique solutions to their customers in
terms of various application along with
unique features.
 Company focuses on cost leadership or
diversification of in their services.
 They provide quality work to their
clients with the help of their team.
 It required to organize their work in the
market when they introduce new
services in the market for clients.
 Huge requirement of on going capital
investment.
Opportunities Threats
 Higher potential to expand their
business through developing various
software application.
 Identify customers requirement is the
best opportunity and innovate
something according to it.
 Some of unfavourable government
policies.
 Arrival of competitors with the same
business idea.
MAIN BODY
Digital Business Activities
It will include those activities which can be done through internet and by use of new
technology. FINCODE company include the activities such as develop various software
application such money transfer application which provide solution regarding their money
related services. It will change the way of doing business and provide various offered which is
confidential (Herdon, Várallyai and Péntek, 2012). These applications provide various functions
which help the customer which make their daily life easy. It include bill payment, foreign
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currency exchange, m-wallet, branch less banking and other solutions too. All the banking
services are include which make their clients more comfortable to it without visiting branch. It is
simple, easy to handle, fast and provide accuracy in their work.
Another business activity of the FINCODE is plaixal which is world's smartest electronic
time sheet and it is secure by the cloud based electronic software. It is alternative of traditional
paper time sheet or invoices which is very complex to handle. Electronic use of handling
transaction is more easier than preparing whole books related to every sale of services. It helps in
saving companies time as well as money which further helps in organisation to achieve their
business goals & objectives. At the same time it will increase the productivity s well as
profitability.
Mode of operations
It include the all activities which is required to run a business in effective way so they can
survive long run in the market. With the help of their effective solutions FINCODE organisation
can serve effective service for the strong consumer base. This company offer reliable financial
services through developing financial software for aspiring business to increase their operational
activities, constant cost and agility (Jin Zhang, Lichtenstein and Gander, 2015). Company
provide business process solutions where they improve the management process with the help of
internal as well as external resources. Company provide time to time training to encourage them
to invent new feature or technology in the business to develop new software. They hire highly
skilled developer who can develop unique software which meet with consumer's demand and
satisfy them to solve their business problems. Plaixal electronic time sheet is help the
organisation to maintain their client's information in the centralized database where they can
access any time. Small & medium size organisation use these type of software to record their
information in effective way which further can be used by then to take future decision. Firstly
they identify the requirement of business and then they develop different software according to
them. Provide money transfer application which help the people in their daily life as well as in
business transfection. It will provide the accurate information regarding their each payment and
further it will save time as well as money of the customer. To develop secure payment mode will
increase the trust of customer on the organisation, it will generate customer loyalty because they
frequently use these applications to complete their payment (Korpela, Hallikas and Dahlberg,
2017).
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Market Segmentation
It is the process which divide the market into potential customer into small groups that is
based on the similar characteristic. Customer can react on some similarities on the basis on traits,
interest, needs, demand & locality. On the basis of FINCODE, they targeting individual as well
as the whole industry where they build software application according to their requirement. In
the industry level, they targeting small & medium size organisation who required these type of
financial handling software in the initial stage of their business. Company develop various ideas
& solutions where each application is hand code from the scratch. Make their organisation
capable to achieve their business goals & objectives by use of latest technology and development
(Mithas, Agarwal and Courtney, 2012).
Digital Business Environment
Macro: - In the macro digital business environment, economy include the whole industry
rather any specific organisation. In context of FINCODE, gross domestic product, monetary &
fiscal policy, inflation and spending money. These factors are related to the business cycle where
company determine the individual performance in the business sector.
Micro: - It is the part of operating environment due to the reason of micro business
environment which affect the organisation in direct way. In case of FINCODE organisation, they
are more interlinked with the micro rather than macro environment. Micro environment include
the customers, supplier, employees, shareholders and medial as well.
Market place
This section include the porter's five force model which help the organisation to develop
various strategic framework which help the organisation to take their decision according to their
competitors actions. It will provide the competitive advantage in the software development
company.
Threat of new entrants: - If organisation entered with innovative technology, creative
thinking and effective use of resources. It will become threat for the existing company so
FINCODE have to reduce their service charges by using lower pricing strategies, new value
proportion for their customer and reducing cost. Organisation have to face these challenges
which help them to develop effective barriers to safeguard their it's competitive edge.
Bargaining power of buyers: - In the current market, buyers are more demanding so
they wanted to buy best product or services at minimum price with high quality. It will create the
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pressure of FINCODE company to build their strategies regarding save their buyers and reduce
their power to bargaining. To face this challenge company have to build large consumer base by
innovating new product according to their demand or requirements.
Bargaining power of suppliers: - Through building effective supply chain with
suppliers, along try to use other material to develop their product. It will reduce the dependency
on single supplier and reduce their power to bargain. In case, price of raw material increase then
company can shift to another product without spend extra amount.
Threat substitute products or services: - Similar kind of product will reduce the productivity or
profitability of the whole sector industry (Piccinini and et.al., 2015). By being service orientated
company FINCODE have to develop unique features which make them different. So consumer
have no option to switch when substitute is not available in the market. For this, they required to
understand the core need of the consumer.
Rivalry firms among the existing competitors: - Rivalry firm drive the price policy and
affect the overall profitability of the whole industry. FINCODE can sustain in the market with
the help of sustainable differentiation so they can compare well. Company can collaborate with
heir competitors which reduce the risk as well as increase the market size rather then just survive
in the small market.
Market growth
Competition matrix of FINCODE include the critical success factors such as
segmentation, targeting, marketing positioning, Consumer loyalty, price competitiveness, service
quality etc. It is provide rating according to it from 1 to 4.
Critical Success Factors Rating (1 - 4)
Segmentation 3
Targeting 4
Marketing Positioning 4
Loyalty of Consumers 3
Awareness of Brand 4
Service Quality 4
Global expansion 2
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Customer support and service 3
Key growth factors of digital business
For the software development company, it is no matter that company sale B2B or B2C.
Company need to identify their business goals and then measure their own requirements through
developing digital marketing strategies. Organisation have to attract more customer by use of
promotional strategies to increase their brand awareness among the consumers. Target the right
market and then choose effective tactics to generate more sales. At the time of promoting new
software FINCODE company should know that who will be going to use it or not. Need to
invest more to digitally grow in the market. Along with this, they have to focuses on multiple
channels so they can manager the activities and need to identify best social media platform
which help them to spread information among their users (Remane and et.al., 2017).
External factors impact on business operations
External factors affect the organisation as well as decision making process and it will be
analysed by the manager through PESTEL analysis.
PESTEL analysis help the business to identify the macro environmental factors which
affect manager's decision and it include various factors. Such as new laws, trade barrier,
governments policies etc. It is the part of external analysis where manager identify which factors
affect the most as well as in terms of positive or negative. It is a king of strategic tools which
make them understand the market growth or decline, potential customers, business position,
direction for operations etc. It include political, economic, social, technological, environmental
or legal factors and these are discussed below:
Political factor: Political stability in the UK's market is the opportunity for the
FINCODE company because company can invest in the market to achieve more revenue. It can
be possible when countries government is stable, no frequent change in the policies such as trade
policies, inflation rate etc. Government support for the development of software will help the
company to increase their productivity as well as profitability. Along with it help the manager to
take their decision according to it (Rogers, 2016).
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Economic factor: Economic stability also one of the biggest factor who affect the
company or it's global growth. Considerable economic stability of the majority of developing
country is the opportunity for the FINCODE company where they expand their business for the
global rise of middle class disposable income. It will generate more revenue for the business to
identify these factors which further affect manager's decision.
Social factor: To increase cultural diversity is the threat for the company in term of
mismatch of product & customer. Another factor is stable demand of quality customer service
that is opportunity for the FINCODE company and it improve the customer support activities.
After analysing these factors manager of the company take their decision on the basis of these
social factors which can help the organisation to achieve their targets.
Technological factor: Rapidly adopt the new changes which help the organisation to
become innovative and develop unique software application in term of attracting more customers
to increase their sales or revenue. Use of digital technology and provide customer services for the
improvement in their work on regular basis is beneficial for the company. Manager need to
analyse these opportunities and develop strategies according to these factors.
Environmental factor: Through following environmental law company can able to
tackle with external factors other wise it become barrier for the organisation. It will affect the
business along with productivity as well as profitability (White, 2012).
Legal factor: With the help of patent law FINCODE can secure their each software and
able to achieve their business goals & objective through increment in the revenue. Further it will
reduce the issues related to their rights of software. So they can further develop more application
without any fear of loosing because patent law provide the right to own their work.
CONCLUSION
From the above discussion, it has been concluded that digitalization is become part of the
organisation. Use of internet or online services provide their better customer service which help
the consumers to satisfy their need in order to save their time and provide defective services. As
per my point of view, FINCODE company develop various application which help the customer
to pay their bills online and avail other banking services as well. Along with this company
develop application to the small & medium size organisation to manger their financial
transaction by use of financial software. It will help the organisation to maintain their records in
the centralized database where they collect all information which is further useful for the
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decision making process which is taken by the manger to analyse all the external factors which
impact the business. Use of new technology with the new features will attract more people who
to achieve their business goals & objectives.
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