Digital Business Analysis: ASOS, E-commerce, and Virtual Business

This report provides a comprehensive analysis of digital business, exploring the advantages of digital technology, the management of virtual businesses in a global environment, and e-commerce principles. It delves into various digital business models, including the ASOS e-commerce model, and discusses related business issues such as cyber security. The report examines the impact of digital technology on collaborative relationships and strategic alliances. It highlights the trends and benefits of digital technology, such as social connectivity, communication speeds, and learning opportunities. The report further discusses the challenges of managing virtual teams and emphasizes the importance of adapting to emerging digital trends like AI and robotic process automation. The analysis covers the digital business model of ASOS, along with the challenges and opportunities associated with it.

DIGITAL BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................3
Digital business models...............................................................................................................3
Trends and benefits of digital technology and how virtual business can be managed in global
environment.................................................................................................................................5
E commerce principles.................................................................................................................7
Conclusion.......................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Digital business refers to those businesses which has adopted digital technology so that
manual process can be replaced with digital processes. In today's world traditional businesses are
converting into digital businesses. ASOS is the multinational e commerce business which sells
cosmetic and fashion related products via online. This report will discuss about advantages of
digital technology with implications of virtual business. Further will discuss digital business
models by considering business issues like cyber security. Report will evaluate collaborative
relationships and strategic alliances and e commerce principles of ASOS.
Main body
Trends and benefits of digital technology and how virtual business can be managed in global
environment.
Digital technology:
It refers to use the devices which is compact, versatile, light in weight and swift. With the
help of digital technology more information can be saved locally or remotely and can be taken
via virtually very fast. The information which is stored in the devices are in the form of audio,
video, photos and words. Digital technology has made life easy. There are some areas in which
transformation has observed like work, communications, travel, entertainment etc. nowadays
every device is coming with digital technology embedded in them.
Advantages:
social connectivity:
With the help of digital technology it is easy to get connected with friends, family etc despite of
that an individual is present in any part of the world. With the help of technology it has become
easy to share media in terms of photos, videos etc. in order to become socialize websites and
apps are designed so that users can use them. With the help of digital technology like texting,
social media, electronic devices like laptop, mobile etc. are making an individual busy so that no
one can feel isolated.
Communication speeds:
Internet speed is growing and getting better with time and helpful in making communications
better. Broadband facilities are useful in transferring huge information on the web instantly. So
that is why is video and audio can be seen in real time.
Learning opportunities:

An individual who is using internet can use and gain any knowledge via web. Educational
system has also shifted to online as courses are delivered online nowadays. Communication has
also become advanced which means that an individual can easily to interaction with each around
the globe. Now learning new language has also becomes easy.
Versatile working:
Digital technology has bringing transformation in the world. With the help of technology strong
connectivity is getting which is giving more opportunities to people who are working from home.
Trends of digital technology:
Artificial intelligence:
AI is becoming very common from last decade but it is succeed in becoming new trends because
it is influencing life and work at early stages. It is known for its good quality images, navigation,
apps, speech recognition etc. the usage of AI is not limited to certain extent but it is wide. It is
utilized in evaluating interactions so that underlining connections can be determined. It is also
helpful in predicting demands of services which includes hospitals etc.
Robotic process automation:
This is also an advanced technology which is helpful in making jobs automatic. This technology
is helpful in making business process automatic like interpreting applications, data dealing,
transactions processing etc. with the help of robotic process, repeated tasks also gets automatic.
Edge computing:
As the technology is evolving, cloud computing is becoming famous. Cloud computing is
growing and getting better day by day. Business are reaching and adopting cloud computing to
get cloud solution. Cloud computing is not able to deal with such large data so that is why edge
computing is made.
Managing virtual business is not easy as it has various challenges. Virtual workplace
refers to in which employees works remotely with their managers and co workers. Virtual
workplace is the future and in the future almost every organisation will get converted in virtual
workplace. ASOS comes under virtual organisation. In covid 19 crisis it has observed that
fashion of virtual workplace has increased. As it is helpful in reducing real estate expenses.
ASOS is saving huge amount key trends and advantages of digital technology nt of money by
eliminating offices and develop virtual workplace and offices are made for those whose work can
be done only in offices.

It is also observed that virtual workplace has increased the productivity of employees. It has even
notices that revenue of the company has also increased after shifting sales people towards virtual
workplace. There are some challenges also which arises in managing virtual teams. The biggest
challenge is that it limits unity of team when employees are working in distance. As per research
also it is showed that when people are working in separate locations they got indulged in high
conflicts and low trust as compare to when they are working together. Various working issues
can be raised due to communication hurdles. Such issues can cause decreased sales, delay in
projects, increasing stress and lowering employee morale.
Digital business models
Digital business models is known as the model which is utilized for creating value though
the help of customer benefit and development with the help of utilization of the technology
which is digital. The focus of this such model is to generate different significant advantages
which provide business towards the customers. The emerging business model is known to be
based on the following dimensions which is required for valuing the products and services of this
business through supply chain. Digital business model of ASOS company is based on the AWS
business model scalability which is used by many large online retailers. In such a business model
the business has found a way of developing the third-party sellers which is used for building e-
commerce which can be used for pushing the mission to a way of providing large variety of
products. This business model requires an infrastructure which is company has which allows it to
push towards different stages of growth. This helps in the development of the business as it
provides the new business model important tasks for the consideration of the digital technology
which affects the company by causing different disruption (Andersson and et.al.,2018). For many
organizations the formation of the business model is just with the help of other existing business.
The aim of the digital model is to improve the digital technology in the organization
which uses it for improving the organization. Some considered digital business model are,
Open source :
This is a type of business model in which the company allows the customers to use their
own software for providing them services of programming and towards other essential
contribution. This model does not allow the company to make profit right out of the direct
operations, but they make profit through other factors such as advertising and promotions.
Free model :

As per this model the use of services for the customers is completely free and the
company get absolutely no income from this, but they make income with the means of
advertising.
Subscription based model :
In this model the customers have pay to the company for the utilization of their services,
the payment is done on the basis of time taken by the customers. The company which uses this
model is generally related to entertainment industry(Möller and et.al. 2019).
E-commerce model :
This is the digital business model which ressemble the model used by ASOS. In this
business model the business organization develops a website that contains different product
produced by the company or taken from another whole seller for the purpose of retailing. This
business model is the core definition to the business activity of ASOS as a company.
In the digital business model of this company there are mixes of different types of sales
which with the help of digital technology will allow the company to develop their traditional
products for the company. Depending on the products of which the company is going to retail it
uses different business technology. Digital business model of this company is said to be facing
the following issues,
Cyber security :
In an organization which uses digital technology for its development there can be chance
of it business, it runs a tremendous risk of cyber attack on its websites which contains both
crucial business and customers data. This happens due to the hacking activities which can affect
the business of the company. It can be said as one of the biggest threat to the business of the
company as it can not only lose the trust of the customer but also has the risk of losing important
data in the market.
Forgetting the main motive :
Due to digitalization of the business activities some businesses forget that their main aim
is earning profit and this loss of focus can affect the business of the company and also result in
the management of the business. This is one of the reason why the employee working for the
company focus more on the digitalization and not on the business (Li, 2020).

The impact of digital technology over collaborative business relationship and also strategic
alliances
Collaborative business relationship can be said as that way in which the business two or
more businesses make an agreement for sharing their resources, finances, knowledge and also
individuals for the accomplishment of a planned goal. This procedure can be said as the type of
partnership in which their goals are similar and the organization basically work as one entity. As
the business of the organization develops it also develops the relationship between the two
companies. Strategic alliance is an arrangement between two or more organization for a mutual
task or project that will help them. Strategic alliances contain complete independence of the
companies. And they can act independently. This process very considerably less complex than
the collaborative business relationship. However, collaborative relationships has its own
advantages such as,
Save Time :
Collaborative relationship provides the company utilization of each other technology
which in return proves to be very effective for saving essential time.
Flexibility :
Those organization which are in collaboration with two or more organization get help
related to digital technology and is helped with their operational capacity which influences the
organization in many ways (Kamalaldin and et.al., 2020).
Workplace atmosphere :
Some organization have very nice organization culture which affects the companies in
collaboration with the help of their techniques.
Network :
Some digital collaboration helps the organization to improve the communication between
the organization and its employees. It also helps the interconnection of employees from different
background and as a result their overall quality improves.
Increased productivity :
The digital technology with the help of which the organization is aided with improvement
of their employees also help them to improve their productivity.
Some disadvantages of digitalized collaborative relationship are,
Doubtful outcome :

The outcomes which the digital collaboration of an organization produces are not always
positive there are always doubts in such investments this happens because the judgement of time
and resources is very difficult.
Complexity :
When the focus of the organization shifts from their business activities to the digital
collaboration it increases complexity in the organization related to its work.
Diversion of resources :
The employees in the organization start focusing on the new digital technology which
they utilize. This affects the main objectives of the organization and therefore they are not able to
focus on increasing the productivity of the organization.
Damaging resources :
During digital collaboration the organization share their resources which can be
machines, technology or even employees. Letting the collaborative organization use these
resources can damage them.
Stakeholder confusion :
Some organization which are involved in the digital collaboration tent to confuse their
stakeholders as they cannot understand what is their real motive.
Advantages of having digitalized strategic alliance are,
Market access :
Strategic alliance provides the organization help with the accessibility to the market of
the other company which can become very effective strategy for the organization.
Exploration of opportunities :
Digitalized alliance with some organizations are considered to be very strategical for the
company as it provides them access to new opportunities which they can explore.
Increased sales :
Some strategical alliances are very useful for increasing the sales of the organization this
can happen due to some techniques or strategies provided by the alliance company.
Skills and technology :
Strategic alliance is done by the company to improve their digital strength and also
introduce new skills and technologies into the market.
Some disadvantages of digital strategic alliances are,

Weaker management :
Due to the increased complexity in the organization due to strategic alliance it affects the
business of the organization it affects its management and its operations.
Market insulation fear :
The organization which involves itself in the strategic alliance with other companies
always have the fear that the alliance companies can learn from them and enter the market as the
competitor( Dellermann, Fliaster and Kolloch, 2017)
Poor Communication :
The increase in the activities of related to the strategic alliance the organization fail to
maintain good communication between themselves.
ASOS can use both the collaborative relationship and strategic alliances. This is because
it is very useful for the promotional method which is said to be a very effective method for
allowing the business of the company to spread in the market. The digital affect of these
relationships between the companies will help ASOS with improvement of their operations.
E commerce principles
User friendliness:
e-commerce website must be easy to use. If the search process will be easy then customers can
easily reach to the products which they want to purchase. ASOS should also build such site
which is user friendly so that customer will not face any issue while using website of the
company because if customer will not easily use the website then they will close website and
purchase with not happen. Products which are listed on the website by the company should have
proper description and image so that customer can get ample of information about the product.
Unique designing elements:
As apart from physical business in e-commerce business also competition is rising. As the
market is full of alternative products so customer should get the reason to buy your product. So
designing of website should be unique and easy to use so that customers can effortlessly browse.
ASOS should have unique user interface so that customers come again to take good experience
on website. Website should be designed in such a manner which provide easy view option and
easy payment options as well (Cristina, Elena and Cristina, 2017). Company can appoint
professional website designer which can design good website for them.
Focus on security:

ASOS should make sure that customers who are purchasing products from their website and
making payment online and their financial and personal information should remain safe.
Company cannot share personal information of customers with any of the third party. Company
have to ensure that payment gateway should be safe. If payment gateway is not safe then it will
reduce sales of the company.
Responsive technology:
In order to make attractive to the website there are web designers who uses heavy coding and
large size images. These are not required for any e commerce site because if website will have
heavy coding then it will going to take more time while loading. As company cannot expect from
their customers to be patient and wait for loading. When customer will face such problem then
they will easily switch to your rival business. So there are chances that business will leave their
clients.
Developing mobile application:
As it can see that almost majority of population is using mobile for doing shopping. Website of
company cannot be used easily through mobile devices so ASOS should have focused on mobile
application. By using mobile phone customer can easily do shopping. So an effective mobile
application can help company in achieving their expected sales.
Adding search option:
Search column plays vital role when it comes to website. ASOS should make sure that their
website should have nice search column (Supriadi, 2019). If customer will not get search column
easily then how they will find out products which they want to purchase. As going to every
product and search for the product which you want to purchase is not easy. So website should
have search option so that customer can easily search for what they want.
Conclusion
Through this report it can be concluded that digital technology is growing with time and
report has discussed about e commerce business ASOS. Digital technology has made social
connection easy. Now an individual who is sitting in different part of the world can communicate
easily and also in less time. Digital technology is also helpful for business by making machines
more smarter. Nowadays with the help of technology machines are not required humans and they

can operate automatically on their own. Asos has also adopted virtual workplace and has
observed that company has reduced expenses after that.
Report has discussed emerging business models. Although digital technology is helpful in many
ways but comes with cyber issues. As technology is growing then with this only cyber crime is
also increasing. Strategic alliance is the agreement which is signed between more than one party
so that they can follow some agreed goals. Report has analysed collaborative relationships of the
company and also discussed e-commerce participles in regards of ASOS.

REFERENCES
Book and Journal
Andersson, P., and et.al.,2018. Digital transformation supporting public service innovation:
Business model challenges and sustainable development opportunities. Managing
digital transformation, pp.217-243.
Chaffey, D., Edmundson-Bird, D. and Hemphill, T., 2019. Digital business and e-commerce
management. Pearson UK.
Cristina, S.A., Elena, C. and Cristina, Z., 2017. Quality Management in E-Commerce. Ovidius
University Annals, Economic Sciences Series. 17(1). pp.388-391.
Dellermann, D., Fliaster, A. and Kolloch, M., 2017. Innovation risk in digital business models:
the German energy sector. Journal of Business Strategy.
Kamalaldin, A., and et.al., 2020. Transforming provider-customer relationships in digital
servitization: A relational view on digitalization. Industrial Marketing
Management. 89. pp.306-325.
Li, F., 2020. The digital transformation of business models in the creative industries: A holistic
framework and emerging trends. Technovation. 92. p.102012.
Möller, F., and et.al. 2019. Archetypes of digital business models in logistics start-ups.
Sathananthan, S. and et.al., 2017, November. Realizing digital transformation through a digital
business model design process. In 2017 Internet of Things Business Models, Users, and
Networks (pp. 1-8). IEEE.
Seo, D., 2017. Digital business convergence and emerging contested fields: A conceptual
framework. Journal of the Association for Information Systems. 18(10). p.3.
Singh, G., Gaur, L. and Agarwal, M., 2017. Factors Influencing the Digital Business
Strategy. Pertanika Journal of Social Sciences & Humanities. 25(3).
Supriadi, O.A., 2019, November. User Interface Design of Mobile-based Commerce. In IOP
Conference Series: Materials Science and Engineering (Vol. 662. No. 2. p. 022047). IOP
Publishing.
online
7 Advantages of Digital Technology In Today’s Time., 2020. [Online]. Available through:
<https://blog.universalbusinessschool.com/village-roadshow-entertainment-secures-480-
million/>