Digital Business: Models, Impacts, and E-commerce Principles Report

This report provides a comprehensive analysis of digital business, examining its advantages and disadvantages, particularly in the context of the Digital Media Team. It delves into new and emerging business models, evaluating their application to key business issues. The report also explores the i...Read More

Digital business

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
P1.Summary of digital business with its advantages and disadvantages in business.................3
TASK 2............................................................................................................................................5
P2.Evaluating new and emerging business models in context with key business issues which
organisation uses.........................................................................................................................5
P3.Discuss the impact of new collaborative relationships and strategic relationships through
digital technology........................................................................................................................6
P4.How e-commerce principles can be used in the organisation................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Digital business have changed the working of companies by using technology in their
internal and external activities. Digital business makes new deigns of business by unfocussing
the physical and digital worlds(Steininger, 2019). This business focusses on the views of
individual whereas digital technology uses technology and helps business to increases their
revenue. Digital business allows the companies to reach global market and receive new
opportunities in those market which helps the companies to achieve success. Now, the digital
business demand have increased as more e-commerce websites are coming in market providing
services to consumers. Digital media team was founded in 2015 which provides paid advertising
to e-commerce companies. They also provide social media advertising, e-mail marketing, audit
reporting and many more. The report covers summary of digital business with its advantages and
disadvantages for the business. It also covers new and emerging models in context with business
issues. This also covers collaborative relationships and strategic alliances through digital
technology and how e-commerce principles can be used in organisation.
MAIN BODY
TASK 1
P1.Summary of digital business with its advantages and disadvantages in business
Nowadays, demand for online services have been increased because people are spending
their time more on online websites which has expanded competition digitally. But, digital
business is different and unique as they are based on combination of digital and physical
resources. Digital business focusses on generating new boundaries for their business activities or
they use digital technology for giving great performance, profits and revenue in new
way(Garzella and et. al., 2021). Digital business have changed the thinking about technology and
are have developed their working procedure into innovation. Advantages and disadvantages of
digital business in context with business are mentioned below-

Advantages-
 Enhanced data collection- Many e-commerce companies and other companies collects
information but they are not able to utilise those information fully. Digital media team
collects the information and uses it in such a correct way, helping the company to form
an advertisement. The company helps their clients in providing e-mail marketing where
products and services are advertised attracting more consumers towards the product.
Digital media team collects the information and conduct research which helps them in
writing the blogs and content about companies product and services. They deliver those
information which attracts and excites the audiences providing them correct information
about the company.
 Enhanced profitability- Companies which are using digital technology and coming on
online platform have gained increase in their profits(Ferreira, Fernandes and Ferreira,
2019). Higher profits always motivates employees to work harder and with new updates
and working style for the company. Digital media team works in different areas in
accordance with customer demands while also focussing on business priorities. Company
uses latest technology in the working and provide most relevant material to the customers
which increases the goodwill and revenue for the company. Gaining access to new technology- When companies uses new version and updated
technology it helps them to access new areas in their field. Companies working in
marketing services gain access in new technology as they have higher level tools, data
and software. Digital media team don't have to search on internet for software as
company have their own and more advanced tools are used which satisfies demands of
every consumers. This helps in increasing the effectiveness, productivity and
performance of the company. In marketing and providing visual content to the users new
techniques and software are used because market is dynamic and consumers wants new
things. Digital media team stands in every perspective required by the market.
Disadvantages
 Familiarity is not quick- Companies sometimes have those clients which they feel are
difficult to understand or are not familiar with the company working. This issue creates
problem for the company as it consumes lots of time and efforts to complete one project.
Digital media team works with many clients including Facebook as well as Google and

with these companies, digital media team is familiar but working with different clients
creates problem for them as they are not familiar with the objectives and goals of the
company.
 Different visions- Sometimes it is difficult to identify what the other person wants or it
creates the sate of confusion. Similarly, it is with Digital media team where think
differently and the client have different thoughts about particular thing. But, the company
always tries to catch up the idea of their clients and helps them in increasing their
revenue. Company is specialised in different areas in which they are experienced
comprising of social media management, email marketing etc. but still in some areas
thoughts and ideas does not matches.
 Skills and training- As the company works in digital field, which requires every person
to be equipped with full skills and training. Companies working in such professions
wants individuals to have full knowledge and information. Digital media team has to
ensure that all its employees are having right skills and expertise so they can achieve
company goals. But, it creates difficulty when such people are not available with the
company because full training will be given which will be time consuming and less
innovations will be made in company's activities.
TASK 2
P2.Evaluating new and emerging business models in context with key business issues which
organisation uses
Business value means how company creates value or how they make money with their
products and customers in the market(Allen, 2020). Business models are very important for any
business success as it is a holistic framework which helps companies to design, understand and
examine assumptions about business in the market. All successful businesses have their own
business models which helps them to satisfy client needs at a competitive price. Business models
includes information about products and services, target markets, business plans for selling etc.
Digital media team uses various business models for achieving success and meeting the
company's objectives. Some business models are explained in relation with company-
 Advertising- This model explains how company can advertise their products and
services which consumers wanted or which encourages consumers to purchase the

product of particular company(Park and et. al., 2021). Digital media team main service is
to advertise company's products on various platform in attractive way. Their primary
motive is to make that content which will satisfy the wants of consumers and increases
revenue of the company. Advertising is the first stage of every company as the consumers
gets information about the company products from the advertisement primarily.
 Transactions- Transaction business model is the most efficient and effective business
model where the companies charges prices for their content, blogs or reports (Reck and
Fliaster,2019). Direct media team works in blogging and writing contents for the
companies where they collect information about the product from the market. They write
contents and blogs in those platform where more consumers visits sites oftenly.
 Affiliate marketing- Affiliate marketing is that buiness model where organization
develops its business by promoting company's products and services and encourages
consumers to purchase the product. Digital business media designs advertisements for
companies as well as build sites helping consumers to deliever products through purchase
channel. The company takes commission for provding this marketing facility, building
consumers and revenue for the company.
 Agency based model- Agency can be called as the partner which works on all non-core
activities which is advertising, email marketing, paid social media advertisments. Digital
media team works as agent which do all the non-core tasks to the companies. Company
works according to the requirements of their client needs with full efficiency and in
productive manner. Companies require agents that will work on other business matters of
the company as this work requires specialisation and knowledge. Non-core activities
performed by the company works are updated and are technologically advanced.
P3.Discuss the impact of new collaborative relationships and strategic relationships through
digital technology
Collaborative relationships and strategic alliance means when companies are working as
partnership or when two or more companies have come together to achieve mutual
objective(Viriyasitavat, Anuphaptrirong and Hoonsopon,2019). Collaboration makes employees
to work together as a team and achieving objective and providing solutions in difficult matters.
When companies have different individuals with different backgrounds it is important for the
company to identify the differences and to know who complement one another. Strategic

alliances enhances competitiveness as collaboration between two companies make them stronger
in the market. Now, the technologies have developed and the market is dynamic which wants
new technology. Companies can develop technology according to market wants but there are
more chances of developing similar technology which is very difficult to identify. Thus,
collaboration and strategic alliances are important for the companies for expanding their business
activities. But, collaboration and strategic alliances have both positive and negative impact which
are explained below in context with the company-
Positive impact-
 Flexibility- When two or more businesses come together it brings flexibility in the
organisation as the workload gets distributed between them(Güler and Büyüközkan,
2019). Collaboration and strategic alliances brings innovation and creativity as more
people gets engaged and more new ideas come. Digital media team works with many
companies which brings new ideas and thoughts in their mind. The company is working
in many fields which requires knowledge in people and information about new
technologies and software. Collaboration helps company to share their opinions and gain
knowledge regarding how other people work.
 New client base and competitive skills- Collaboration and strategic alliance adds new
clients or customers and adds good reputation when the company is of higher position.
New competitive skills are also included in the company as new employees enter the
company as companies don't have to pay for recruitment, training and many more. Digital
media team have received new clients as company have collaborated with many
companies including Facebook, Google etc. Also, many new employees are added with
different skills and knowledge helping the company to achieve objectives in more
effective and productive manner.
 Innovative ideas- Companies coming together and sharing their objectives brings more
innovative ideas and helps in achieving mutual goals (Ross, Beath and Mocker, 2019).
Digital media team have come up with new thoughts and methods which satisfies the
requirements of consumers and their clients. Collaboration brings more people working
together which helps the employees to mix their ideas and come to the conclusion which
will bring innovation in company's objectives.

 Acceleration in business work- Collaboration brings velocity in the work because more
employees come together resulting in fast work. Companies coming together and
working for same objective gives fast results. Teamwork and communication are faster in
collaboration which makes it simple to produce good results. Digital media team working
with many other partners have fasten the work and also the results which was produced
are effective. Fast work creates value to the company because the company works in
advertising and promoting the products of other company which needs more time.
Negative impact-
 Conflicts in working style- Companies working together have different thoughts and
have different working styles(Gruber, 2019). Each company follows different methods
and policies which may bring difficulty to other company. Digital media team have
different skilled employees working on the framework of marketers where they have to
promote products and services of the company and to digitise their advertisements in
those platform.
 Lack of trust- Teamwork always requires working together and with mutual trust. When
the team works with togetherness and have full trusts it results in great output. Because
when one person does not completes his task it results in late response and brings
negativity in the group. It becomes difficult for the employees to develop trust as some
employees were new in the working. Digital media team employees have to suffer such
problems because they work with many other companies and with new teams. The
company as well as the employees finds it difficult to develop trust which results in
conflicts.
 Security risks- Collaboration and strategic alliances brings security risks to the
companies as hackers can take confidential data and may exploit all important data.
Hackers always tries to take data when companies works in collaboration which results in
stealing of important data. Companies always tries to secure their data with encrypted
data. Right collaboration will help the data to stay secured and the problems which the
company is facing. Digital media team and the companies working with them works to
protect their important software and data from getting stolen by hackers.
 Cultural mismatch- Companies coming together and working for mutual objectives may
provide good results and faster output. But, it has been seen that cultural differences

arrives in organisation when two companies work together (Brock and Von Wangenheim,
2019). As, companies have different organisation structure and so they have different
cultures when they work and when they gets combine into one it creates difficulty. One
has to adopt with every organisation culture which digital media team suffers as they
have to work with different clients and have to adopt with different company culture.
P4.How e-commerce principles can be used in the organisation
E-commerce is that platform where consumers buys or sells the products using internet
and individuals can transfer the money and implement these transactions. E-commerce is the
most demanding and popular method where investors gets the opportunity to make investment
and earn money from these platform(Diamond, 2019). E-commerce principles are important as
they guide the organisations how they have to conduct the activities and to achieve the goals
effectively using such principles. With the help of principles companies can achieve long term
goals and business provides great performance to the employees. Customers always wanted that
websites which are provided to them must have full efficiency as they want more interactions,
more varieties, full security for personal information about customers. E-commerce principles
are explained in relation with Digital media team-
 User friendly- E-commerce platform have to develop those websites which can be easily
navigated by the public. When the sites are easily available to the users then individuals
can easily go through various products and services provided by the company. Digital
media team also have its own websites where clients receives much information and they
can access many things from the website. User friendly websites is also important as
those individuals who are searching for digital marketing business can search easily.
Company always tries and have considerable work in developing the site which is user
friendly.
 Emphasize on security- Security is the major issue which every consumers and the
company wants either from hackers or from any other thing(Krings, Palmer, and
Inversini, 2021). Websites are mostly hacked by hackers and that too when companies
comes in collaboration. There is always a feeling of insecurity for the companies as
important software can be hacked and confidential information about the company can be
spread out. Digital media team always wanted that customers information to remain to
remain safe and secured. Many company websites asks for personal information of the

consumers which is compulsory to fill as consumers would not able to access the
websites. When digital media team will provide such services it will build customers
trust.
 Knowing target audience- Companies always develop their websites or make those
products which target their audiences(Ting and Gray, 2019). There are some companies
which targets each segment of audiences but when company targets particular audiences
it builds the profit of the company. Digital media team have developed its website in
accordance with the consumer requirements. Company provides all the information about
how company functions and what company offers to its consumers. When any client
wants to know about the company and its performance they can easily visit the site and
can know all the matter. This helps the customers to receive every information and
company adds more clients in their business.
 Consistent branding- Brand consistency mean to deliver brand message and its identity
to the consumers consistently. It means the capacity that every company makes with the
products maintaining communication and lining the values. Digital media team have
followed this principle and is following engaging its clients with the company. Brand
consistency will help the company to recognize its brand which company strives. Digital
media team have build the trust and loyalty among the clients keeping the performance
and results updated and timely. This is why, company have gain competitive advantage in
the market.
 Unique design elements- Users are always attracted when the company make their
websites with some unique elements forcing the users to visit the site frequently(Love
and Matthews, 2019). Market is always filled with new competitors so there must be
something new in company's websites. Digital media team is known for its software and
the technology which company uses helped the company to make their website in
attractive form. Their main aim is to design the websites in such a manner which serves
the needs of every client. Company always gives important to the deigns as they know
this is the only way which can bring clients visit their websites.
CONCLUSION
It has been concluded from the above report that digital business plays crucial role for
their clients and those clients are dependent directly upon the companies. Digital business

provides variety of services from visual advertisements to e-mail marketing, social media
management helping the consumers in providing advertisements. Company provides relevant
information and work with great employees which results in innovative and creative ideas. The
demand for digital business is increasing as more consumers are engaged in social media
platform or prefer online services. This feature demands more digital business companies.
Company has built its relationship not with the clients but also with the partners which means
that company have build the trusts with them.

REFERENCES
Books and Journals
Allen, S.J., 2020. On the cutting edge or the chopping block? Fostering a digital mindset and
tech literacy in business management education. Journal of Management
Education. 44(3). pp.362-393.
Brock, J.K.U. and Von Wangenheim, F., 2019. Demystifying AI: What digital transformation
leaders can teach you about realistic artificial intelligence. California Management
Review. 61(4). pp.110-134.
Diamond, L., 2019. The road to digital unfreedom: The threat of postmodern
totalitarianism. Journal of Democracy. 30(1). pp.20-24.
Ferreira, J.J., Fernandes, C.I. and Ferreira, F.A., 2019. To be or not to be digital, that is the
question: Firm innovation and performance. Journal of Business Research. 101. pp.583-
590.
Garzella, S. and et. al., 2021. Business model innovation in SMEs: the role of boundaries in the
digital era. Technology Analysis & Strategic Management. 33(1). pp.31-43.
Gruber, H., 2019. Proposals for a digital industrial policy for Europe. Telecommunications
Policy. 43(2). pp.116-127.
Güler, M. and Büyüközkan, G., 2019. Analysis of digital transformation strategies with an
integrated fuzzy AHP-axiomatic design methodology. IFAC-PapersOnLine. 52(13).
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optimization for B2B marketing. Industrial Marketing Management. 93. pp.174-186.
Love, P.E. and Matthews, J., 2019. The ‘how’of benefits management for digital technology:
From engineering to asset management. Automation in Construction. 107. p.102930.
Park, H. and et. al., 2021. Customer entrepreneurship on digital platforms: Challenges and
solutions for platform business models. Creativity and Innovation Management. 30(1).
pp.96-115.
Reck, F. and Fliaster, A., 2019. Four profiles of successful digital executives. MIT Sloan
Management Review. 60(3). pp.1-7.
Ross, J.W., Beath, C.M. and Mocker, M., 2019. Creating digital offerings customers will
buy. MIT Sloan Management Review. 61(1). pp.64-69.
Steininger, D.M., 2019. Linking information systems and entrepreneurship: A review and agenda
for IT‐associated and digital entrepreneurship research. Information Systems
Journal. 29(2). pp.363-407.
Ting, A. and Gray, S.J., 2019. The rise of the digital economy: Rethinking the taxation of
multinational enterprises. Journal of International Business Studies. 50(9). pp.1656-
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Viriyasitavat, W., Anuphaptrirong, T. and Hoonsopon, D., 2019. When blockchain meets
Internet of Things: Characteristics, challenges, and business opportunities. Journal of
industrial information integration. 15. pp.21-28.