Digital Business Report: LSC UoS BA Business, Digital Business Module

This report delves into the realm of digital business, examining its core concepts and practical applications. It begins with an introduction to digital business, emphasizing its role in achieving organizational goals and objectives. The main body explores the advantages and disadvantages of digital business, highlighting the impact of technology on various aspects of a company's operations, using Amazon as a case study. The report further evaluates new and emerging digital business models, including cyber security and ethical considerations, and assesses the impact of collaborative relationships and strategic alliances facilitated by digital technology. The report also covers e-commerce principles and provides a comprehensive overview of the factors that contribute to the success of digital businesses. The report aims to understand key trends, evaluate digital models, and apply e-commerce principles in a business context.

Digital Business

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Advantages and disadvantages....................................................................................................3
Evaluation of new and emerging trends......................................................................................5
Impact of collaborative relationships...........................................................................................7
E – commerce principles.............................................................................................................8
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................11

INTRODUCTION
Digital business can be referred to as doing business with help of new tools and techniques
which are used by an organisation so that they can achieve goals and objectives. In this fast-
moving world, all organisations are making changes and applying new machines so that better
products can be made (Aagaard, Aagaard and Harrison, 2019). Amazon is a public company
which was founded in 1994 by Jeff Bezos. It provides different products such as, echo, fire
tablet, fire TV, kindle. They are providing many services and customers are satisfied by their
products. They have built good image in minds of consumers and having many branches. In
report, advantages and disadvantages of digital business is discussed and how it is beneficial for
company. Evaluation of new digital business models such as cyber security and impact of
collaborative relationships is described.
MAIN BODY
Advantages and disadvantages
Digital business can be defined as using new technology so that better plans can be made
and it will help in achieving goals and objectives of a company. Nowadays, competition is
increasing so fast that all companies have to make improvements in policies and procedures so
that it is easy to survive in market. For generating more revenue, it is important that good quality
products ad services should be provided to customers ad satisfy their needs. It also helps in
identifying mistakes and internal capabilities of an organisation (Bican and Brem, 2020).
Managers should make plans or strategies so that targets can be achieved and it will help in
attracting more customers. Amazon is one of the famous companies in today’s world because
they are providing good quality products and services to consumers. They also provide home
delivery service which also help in attracting people and they can place order with the help of
apps. This is easy and convenient way for consumers and they can buy easily.
For every company it is important that they should make some innovative or creative
products so that more people are attracted and it will help in building good image in market. In
market competition is increased and due to that manager have to make new products to satisfy
needs of customers. Now, every organisation is providing home delivery services because people
are not having time to go to market and purchase things which are required. When home delivery
services or online shopping facility is provided then it will help in increasing sales. It is simple
method and convenient for buyers as they can place order from anywhere. There are many ways

of online business such as, web design, social media consulting, affiliate marketing, make apps
and products available (Boojihawon and Ngoasong, 2018).
Digital business plays a crucial role in development and growth of an organisation.
Initially, Amazon was not providing so many services but as competition is increasing in market,
they make new plans or strategies which is beneficial for growth of company and start providing
home delivery services so that more customers can place and order. Discounts are also provided
to customers, this is a strategy which is used by managers to attract more people and it will help
in increasing sales of organisation. Marketing is being done with the help of social networking
sites because it is the best way and helps in covering wide area.
Advantages
Some advantages of digital business are:
 Increased profits- Digital business helps in increasing profit of a company because
better products are provided and satisfy needs of customers. When good quality products
are made and marketing strategy is good then it will attract more customers and satisfy
needs of people (Chaffey, Edmundson-Bird and Hemphill, 2019). Amazon is providing
home delivery services which is convenient for people and they can easily place order.
So, it will help in increasing sales of products and more revenue will be generated.
 Encourages digital culture – Digital business will help in encouraging digital culture
because nowadays, competition is increasing so it is important for managers of Amazon
company to make innovative and creative products so that needs of customers can be
satisfied. Digital business creates new and healthy environment for people and
organisations can increase their sales by providing good products or services to
customers.
 Greater resource management – Digital business helps in greater resource
management, when new products will be made then resources are required. Managers of
an organisation should manage all the activities properly and arrange resources to make
products. They should manage all materials on time and there must be no shortage of
material and employees must make efficient use of resources (Chen and et.al., 2021).
 Improves productivity – When new products are made then it improves productivity of
employees as well as of company. It is important to make good quality products so that

overall performance of workers. Digital business helps in improving productivity of
company and better products can be made.
Disadvantages
 Dependability on technology - In this fast- moving world, it is important that new
machines should be used so that better products can be made. Digital business requires
technology and using apps, there is more dependency on technology because all the work
is done with the helps of internet. There should be good connection so that order can be
placed on time.
 Security and privacy issues – Security and privacy issues refer to as proper security of
data. When online business is done then all the details are recorded on computers. It is
not safe because sometimes, it may happen that information is leaked. So, managers of
company should take necessary steps so that data can be stored safely and work can be
done properly (Chi and et.al., 2018).
 Maintenance cost – Maintenance cost means to do online business huge investment is
required. Money is needed to manage all the activities and work can be done smoothly.
For safety and security software need to be installed and it requires investment. So, doing
business online is not safe as compare to doing business offline. It is important that
maintenance should be done so that work can be done properly and there will be no issue.
Evaluation of new and emerging trends
There are many business models which can be used by an organisation so that they can
make good quality products and it will help in satisfying needs of customers. When business is
done through online mode then there are many issues so that work can be done smoothly. It is
important to provide safety and security to information which is recorded. Nowadays, to reduce
paper work all the organisations are using online mode to enter details and it will help in
completing work fast and employees can work effectively (Ivančić, Vukšić and Spremić, 2019).
It is essential that necessary steps should be taken so that work can be completed properly and it
will help in achieving goals and objectives. In this digital world, it is essential for all
organisations to make plans or strategies for better future of company.
There are many business issues which arise when doing business through online mode
because in this people are more dependent on technology and they will do all the work with help
of new techniques. Amazon is doing its business through apps, providing online facility to

customers so that they can easily place an order. All the entries are being done on laptops and it
reduces work of employees because they do not have to do paper work and it also reduces
chances of mistakes. Proper training is provided to employees so that they can complete their
work efficiently and it will help in improving productivity of employees.
Some key business issues are:
Cyber security
Cyber security is the process, technology and it helps in controlling all the activities in an
organisation. it is the best way by which managers can protect details which is recorded in
computers and it can not be leaked. It helps in protecting information from cyber attacks and
against unauthorised exploitation networks (Jabłoński and Jabłoński, 2020). Cyber security will
help in protecting all details and better plans can be made for development of company. It has
some negative issues also like, may be it is not working properly or due to issue in network
connection cyber security is not applicable properly. So, mangers have to take necessary steps
and make sure that information is safe because there are many details which are important and if
get leaked then company has to suffer loss.
Ethics
Ethics play a crucial role in every organisation because it helps in maintain safe and
healthy environment of company. It also helps in maintaining equality among employees and
boost confidence of workers so that they can work properly. It is essential to apply rules and
regulations so that employees can work in a systematic way and there will be no confusion. It has
negative impacts as if rules are made and employees did not like then they will not work
efficiently (Kedziora and KIVIRANTA, 2018). May be workers are getting de motivated and not
focusing on work. If they will not concentrate on given task then work can be done in wrong way
and company has to suffer loss.
Ineffective data management
In an organisation all the activities should be managed properly and it is responsibility of
mangers to handle all issues and complete work properly so that there will be no problem in
future. When all the issues are handled properly then it will help in achieving goals and
objectives. Another issue which may arise while doing business is ineffective data management.
It means that if managers are not able to handle issues and there is problem in network
connection or employees are not able to work properly then company has to suffer loss. So, when

a firm want to do business online then they should make proper plans or strategies which will
help in development of firm and more revenue can be generated. Managers of Amazon company
are handling all issues and employees are working hard so that goals and objectives can be
achieved (Scuotto and et.al., 2017).
Impact of collaborative relationships
When a firm want to expand its business in international market then it will help in
generating more profit. It is important that managers of Amazon company should take necessary
steps so that organisation can increase its sales and more profit can be earned. When new and
innovative services or products are provided to customers then it creates positive image in minds
of consumers. It is essential that managers should identify market situation and make plans
according to that so they can earn more profit and it will be beneficial in growth of company. For
development of firm, expansion is important because if business is done in international market
then it will help in building good image (Peng, 2017). For growth and development of company,
managers should make plans for expansion of firm in other countries. Amazon company was
started at a small level and after sometime they build good image in local market. After that they
make plans for expanding their business and for that they are having options such as, partnership,
strategic alliance or collaborative relationship so that they can expand their business easily in
other countries and this will help them in generating more profit.
Collaborative relationships can be defined as partnership in which two companies or
people are making an agreement to run business together so that they can make better products
and satisfy needs of consumers. It is important for every company when they want to expand
their business because in all countries different rules and regulations are followed. It is difficult
to identify needs of customers and marketing strategy which can be used to attract people. There
is difference in culture, language, traditions and working pattern of countries. In all organisations
managers are making rules and regulations according to their business and all employees have to
follow it (Rangaswamy and et.al ., 2020).
So, if Amazon want to expand its business in other countries, then they may use
collaborative relationship so that they will not face any problem and run business smoothly. It is
important for managers to identify market situation and analyse condition properly so that plans
can be made accordingly. If strategies are made then it is easy to implement and work is
completed in better way. An agreement must be made between partners which includes, sharing

of profit and loss, other things which are required. it will help in reducing conflicts and work can
be done properly.
Strategic alliance means an agreement between two companies to share techniques and
they are coming together for achieving common goals and objectives. It is important for a firm to
form strategic alliance so that targets can be accomplished and it will help in making better
products to satisfy needs of customers. When Amazon want to expand their business in other
countries then they have to form strategic alliance so that they can use resources of each other
and new products can be delivered to customers. It will help in entering into new market and new
technology will be used. When two companies are working together then they will exchange
machines and make better products according to needs of customers (Ross, Beath and Mocker,
2019).
There are many benefits of strategic alliance such as, it will help in reducing risk because
when two companies will merge or form a new organisation then employees will work more
efficiently and they will give suggestions for better ideas. It will create more growth
opportunities so that firm can run business smoothly. Strategic alliance helps in gaining new
client base and shows different ways by which a firm can enter into competitive market.
Managers of Amazon company can apply this for opening new branch and to generate more
profit. It will be beneficial for organisation as they can use new technology or machines which
are used by another company. They can make new and innovative products on the basis of
choice of customers and it will help in growth of company.
E – commerce principles
E- commerce refers to buying or selling of products through online apps. Nowadays, people
are purchasing goods online because they are not having time to go to market and buy goods.
Purchasing online is easy and convenient for all, all can buy easily and they do not have to go
anywhere. Customers can place order at any time, there is no fixed hours during which they have
to place an order. Products will be available to as home delivery services is being provided to
consumers. This is a strategy which is used by managers of company to attract more people and
increase sales of firm (Schwertner, 2017). Amazon company is providing all the facilities to
consumers and also give offers or discounts so that more customers are attracted and it is
beneficial in accomplishing goals and objectives.

Every organisation is now using e- commerce to increase their sales and it is the best way by
which wide are can be covered. This will help in doing business online and marketing is done
with the help of social networking sites. Marketing helps in providing relevant information to
customers about new product, its features, price and availability of goods. There is some e-
commerce principles which is used by Amazon company are:
 Unique design elements – For attracting people it is important that unique design should
be used so that they can be influenced to buy or purchase product. Products of Amazon
company are provided to customers in a unique way so that they get attracted and buy
product. This is a strategy used by managers to increase their sales and it will lead to
generate more revenue (Sandkuhl and Stirna, 2018). When design is unique then people
are influenced by it because they like new and innovative products. This e- commerce
principle is applied by Amazon because it helps in attracting more people. It is essential
that good quality products should be delivered to customers as it will help in building
good image in minds of consumers.
 Identify target audience – Know your target audience is another e- commerce principle
which is used by Amazon company. It will help in identifying target audience and
products can be made according to that. Amazon is applying this principle so that they
can identify target audience and this will help in making products according to choose of
consumers.
 Effective product description – It is the responsibility of managers to describe product
effectively. It is important that product description should be effective so that more
customers are attracted. It will help in increasing profit and customers will get relevant
information. It is important to provide necessary details about product, so that people can
buy goods according to their choice.
 User friendliness – It means that product should be made according to choose of
customers so that they can get influenced and purchase product. Goods should be made
after analysing market situation and it will help in making better plans so that more
revenue can be generated. It is a e- commerce principle which is used by Amazon to
satisfy needs of customers and this helps in increasing revenue. User friendliness help in
satisfying needs of customers and help in increasing revenue (Legner and et.al., 2017).

These are some principles which are applied by Amazon so that they can make good
quality products and satisfy needs of customers. It will help in achieving goals and
objectives and products can be made according to needs of customers.
CONCLUSION
From the above discussion it can be concluded that, digital business is important nowadays
because it helps in improving performance of employees and increase overall productivity.
Digital business has advantages as well as disadvantages which is useful in achieving goals and
objectives of company. Evaluation is done on new and merging trends of digital business models
and some issues are discussed such as, cyber security, ethics and ineffective data management so
which may be use by an organisation. Further, impact of new collaborative relationships and
strategic alliance has been described and its importance. E – commerce principles can be used by
an organisation to improve their productivity and to generate more profit. Digital business plays
a crucial role in development and growth of company, helps in increasing profit.

REFRENCES
Books and Journals
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Scuotto, V., and et.al., 2017. Shifting intra‐and inter‐organizational innovation processes towards
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