Evaluation, Advantages and Models of Digital Business - Report

This report evaluates the digital business landscape, focusing on trends, advantages, and models. It begins with an introduction to digital businesses and their transformation of traditional operations, followed by an overview of key digital technology trends such as AI, RPA, quantum computing, and VR/AR. It highlights the advantages of digital technology, including improved communication, process automation, data storage, cost reduction, and strategic partnerships. The report then examines the implications of these technologies for managing virtual businesses in a global environment. Furthermore, it discusses emerging digital business models designed to address key issues like cybersecurity, fraud prevention, data management, resource constraints, and customer relationship management. The impact of collaborative relationships and strategic alliances formed using digital technology, and the utilization of e-commerce principles are also analyzed. The report uses John Lewis & Partners as a case study, exploring how these concepts are applied in a real-world business context.

EVALUATION,
ADVANTAGES AND
MODELS OF DIGITAL
BUSINESS

TABLE OF CONTENTS
TABLE OF CONTENTS................................................................................................................2
INTRODUCTION...........................................................................................................................1
About the company......................................................................................................................1
TASKS.............................................................................................................................................1
1. Key trends and advantages of the digital technology..............................................................1
Implications for managing the virtual business in the global environment.................................3
2. Emerging digital business models for tackling the key business issues..................................3
3. Impact of new collaborative relationships and strategic alliances formed using the digital
technology....................................................................................................................................5
4. Utilization of the e-commerce principles for the business......................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
Top 9 New Technology Trends for 2021. 2021. [Online] Available through: <
https://www.simplilearn.com/top-technology-trends-and-jobs-article>........................................10

INTRODUCTION
Digital businesses are the ones that are using the digital platforms and technology by
transforming the manual operations. They can also be referred to as the e-commerce businesses
that are creating value, enhancing the operational efficiency and better experiences through the
application of the advanced technology. The current project shall be highlighting upon the
current trends and the advantages that are imposed by the use of digital technology. Apart from
that the report shall reflect the digital business models that have been developed to conquer the
key business issues that are being faced. Further it shall discuss regarding the use of the digital
technology in the formation of the new collaborative relationships and the strategic alliances
impacting the performance of the business. Lastly the report shall be presenting upon the
utilization of the various e-commerce principles that can further optimize the company website.
About the company
John Lewis and Partners is the British multinational company that is operating in the
several business segments like the departmental stores, supermarkets, banking and the financial
services and the other retail outlets (John Lewis Partnership, 2021). The company was founded
in 1864 and is headquartered in London. It offers a variety of the products like the homewares,
food stuff, fashion and clothing. It is unique business wherein the employees are the owners of
the business and that is the reason they are called the partners of the business.
TASKS
1. Key trends and advantages of the digital technology
Recent trends in the digital technology are:-
 Artificial intelligence (AI)- The artificial intelligence is one of the trending digital
technologies that shall be assisting the business in the forecasting of the demand,
detecting the changing patterns of the customer behaviour, analyzation and providing the
deeper insights of the data for the effective decisions making in the business (Streuer and
et.al., 2019). All these benefits of the technology are optimizing the operations of John
Lewis and simultaneously increasing its revenues and profitability in the business.
 Robotic Process Automation (RPA)- This is the other recently developed technology that
is trending these days as the businesses use the robots for the automation of the several
processes like the transaction processing, dealing and handling the business data, replying
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to the mails etc. These repetitive processes earlier were done manually and that is the
reason there used to be several errors (Schwertner, 2017).
 Quantum computing- This is a superior technology wherein the data is analysed,
monitored and queried without providing any source (Top 9 New Technology Trends for
2021, 2021). Such technologies can be applied in the financial services segment of the
John Lewis where the management of the credit risk, detection of the frauds and the high
frequency trading are undertaken by the company. Virtual reality and augmented reality- The other latest technology pertains to the VR
which immerses the user in the business environment and the VR that shall be enhancing
the environment under consideration (Peng, 2017). The businesses can apply the
technology in order to optimize on the training, marketing and education etc. functions of
the organization.
Advantages of digital technology:- Faster and efficient communication- Through the efficient use of the digital technology
the John Lewis can function smoothly with the enhanced communication networks at the
various levels in the organization and with the collaborative partners globally (Chaffey,
Edmundson-Bird and Hemphill, 2019). This shall be leading to better interaction and well
informed decisions. Automation of the processes- The efficient application of the artificial intelligence,
robotic processes and modernization of the equipment have led to automating of the
several business processes and that has further contributed to the growth and success of
the organization by reducing the manual errors. Storage of information- The cloud computing software provides the storage facility of
the data and information pertaining to the business in an effective manner such that only
secured access is facilitated. This helps John Lewis to assure its customers that their
private information is secured with the business. Lower costs- The optimization of the business processes has boosted the operational
efficiency with the help of the various digitalized technologies in the business. The
attainment of the economies of scale has lowered down the cost per unit of the output
generated in the company which has further satisfied the customers as well as the
business with the better profit margin (Aagaard, Aagaard and Harrison, 2019).
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 Formation of the strategic partnerships- The use of the technologies is mainly done to
facilitate the formation of the collaborative partnerships and the strategic alliances
globally that shall be generating the synergy for the company. The integration of the
various business processes can help in better execution and the capitalization of the
business opportunities. John Lewis has formed various such relations so that the
competitive advantage can be generated in the market and the revenues can be boosted.
The key trends in John Lewis are the innovation of the micro services based platforms as a
service architecture running on the google cloud platform (How John Lewis & Partners
accelerated its digital transformation. 2021). The advantages that were posed using this
technology are improved site search capability and increased release velocity.
Implications for managing the virtual business in the global environment
With the changing landscape of the businesses the new trend of virtual businesses in the
global environment have begun. This has led to building many competencies for the companies
while fulfilling the corporate objectives of maximization of the profitability as well satisfaction
of the various stakeholders (Namugenyi, Nimmagadda and Reiners, 2019). The virtual team
structures have been designed at the global levels wherein the employees shall take maximum
benefit to contribute to the productivity of the business. Apart from that it can also be analysed
the collaborations are done with the best possible synchronizations and coordination with the
operations.
2. Emerging digital business models for tackling the key business issues
There are several key business issues that needs to be sorted by the companies for which in
the era of digitalization various digital business models are developed so that these problems that
are faced can be resolved. The digital business models can be in the form of various software that
are prepared for the assistance of the businesses or in the form of modernized technologies that
can better perform the operations. John Lewis has also tried applying many of such digital
business models in order to resolve the issues of cyber security, data management, avoiding the
fraudulent practices etc. Some of the major business issues that are resolved by the digitalization
are:-
 Cyber security- This is one of the major concerns for the business these days wherein the
systems, computers, networks, software, databases of the company are hacked and then
used for the malicious purposes, disrupted for use, damaged, misdirected or unfair
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advantage of the same is taken (Seo, 2017). The viruses are feed in the systems that shall
be spoiling the overall system and leading to the inefficiencies in the operations of John
Lewis. The business uses the SecurEnvoy’s product licensing model which involves high
end technology and that is the reason that the company also incurs high costs of IT based
services. This shall be providing them with the secure access to the network and the
avoidance of the cyber security issues for the organization.
 Fraudulent practices- Nowadays there is an increasing trend of the fraudulent practices
that are incurred in the business wherein larger scams are undertaken by the employees
and the management of the company. In order to prevent the company to face failures in
the market and the reputational losses also the various digital business models can be
applied (Xu and Koivumäki, 2019). The strong detection systems which keeps the proper
count of the inventory, finances and other business affairs and the advanced auditing
systems that can detect the errors that are executed in the business.
 Data management- The management of data with safety and security in the company is
also one of the biggest issue that is faced by the company. As there are lot of leakages,
misuse of the personal information of the customers which is the responsibility of the
company to be carefully managed. The cloud computing technologies have been
developed as applied by John Lewis which secures the access of the data to only the
authorized users of the business. A separate database is maintained so that the unfair
advantage of the private information cannot be obtained and the trust and loyalty of the
customers is managed in the business.
 Resource constraints- The scarcity of the resources and managing within the limited
availability is one of the problems that majorly all the businesses face and are searching
for the optimum solution regarding the same (Boojihawon and Ngoasong, 2018). It can
be assessed that even the digital business models have been designed in order to resolve
the issue of the resource allocation in the firm. The software called enterprise resource
planning have the capability of the optimum allocation of the limited resources such that
the business operations can be undertaken smoothly.
 Customer relationship management- Managing the strong and healthy relations with the
customers is the prime concern of John Lewis and this is the reason it shall be taking the
assistance of the various digital business models that are available for the same. The
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software named customer relationship management (CRM) have been working
effectively for the organization to satisfy its customers by staying in regular touch with
them and obtaining the feedbacks to improvise the performance.
3. Impact of new collaborative relationships and strategic alliances formed using the digital
technology
In the current era of digitalization and the excessive competition in the market the
businesses prefer to form the collaborative partnerships and strategic alliances using the digital
technology in order to generate the competitive advantage (Vendrell‐Herrero and et.al., 2018).
The advanced technology these days has facilitated and made easy for the businesses to form
strategic alliances globally with the multinational companies and assume the benefit of synergy
by compiling the resources and abilities of both the businesses. Apart from that it can be
acknowledged that with the access of the better medium of communication and the software for
the valuation, the mergers and acquisitions have comparatively became easier than before. The
alternatives like video conferencing, cloud computing technologies for the sharing of the files
and databases have lead to an easy way of integrating the operations of two or more businesses
and optimizing on the benefits that are provided by it.
There is a positive impact of these strategic alliances and the partnerships on the existing
business as this shall help in acquiring the benefit of synergy by combining of the resources of
both the businesses. Further this synergy shall help John Lewis attain the economies of scale in
the operations that shall be reducing the cost per unit of the products and services. This leads to
the building of the operational efficiency generating higher profitability and future growth
prospects for the business. It can also be assessed that since the competition in the business is
widening and the scope for innovation is there, there are requirements of the strong research and
development department which can enhance the knowledge and the information of the company
in the particular field. The need for R&D, higher qualified personnel, advanced technology and
the strong established network are some of the major reasons for the formation of the strategic
alliances and partnerships by the businesses.
Even post the formation of these partnerships, the digital technology shall be enabling the
businesses to function in a synchronized and coordinated manner such that the profitability as
well as the performance of both the businesses are boosted (Bican and Brem, 2020). With the
ease in the resource sharing, file sharing, efficient manner of business communication and the
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enhanced capacity of the decision making process are all served with the help of the digital
platforms that are offered due to the advancements in the technology. These established
relationships are impacting the business in all possible manners and improving its routine
business operations. It can be assessed that with the collaborations being executed the market
share of the company shall be boosted providing a means to generate the edge over the
competitors of John Lewis.
The creation of the joint ventures and the strategic partnerships shall be providing the
means to capitalize on the opportunities that are being provided in the business environment and
also conquering the threats that are provided in the market (Scuotto and et.al., 2017). Apart from
that all the operations shall be facilitated with the help of the digital technologies and the e-
commerce platforms that are available with the company also maintaining the transparency in the
operations and leading to trust and unity between the organizations. The benefit of all these are
extended towards the customers, shareholders and the other stakeholders of the business and this
is the reason that John Lewis shall be benefiting out of them in the form of the revenues and the
higher profitability margin also governing the future growth and stability of the business.
One of the most common strategic alliances of John Lewis is with Waitrose in 1937 was
framed as the companies felt they were better together. The benefits were that the value and the
quality became more accessible. It lead to a better customer experience and they operated in a
more sustainable and ethical manner.
4. Utilization of the e-commerce principles for the business
There are various e-commerce principles that can be applied by the John Lewis business
to successfully operate as the transformed digital business generating the operational efficiency
for the business in the real time. Some major principles that must be followed and executed by
the business in order to develop the optimized company website are:-
 User Friendly- This is one of the most significant e-commerce principles that must be
applied by the businesses while designing an optimized company website for featuring its
online sales and other processes (Rangaswamy and et.al., 2020). A user friendly website
is one which is easily accessible by all the potential users or the customers of the
company, can easily navigate and find the desired outcome. They must be provided with
all the relevant details of the products and services that are offered by the company so
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that they can reliably make purchases will the complete knowledge of the offerings of
John Lewis partners.
 Emphasize on the security of the information- The John Lewis can successfully generate
the traffic over its company website only if it is able to assure its customers that the
personal data and information that is provided by them is safe and secure with the
company and shall not be leaked to any third party. Since while making the online
purchases the customers shall be providing with all their financial details so they expect
the payment gateways to be safe. Also if the databases of the company are not managed
then they shall be suffering the reputational loss as well as it shall lead to unfair
advantage of the close competitors of the business.
 Highly responsive technology- The website that is designed by the company must be
highly responsive to their target audience (Wirtz, 2019). Firstly the technical know-how
of the potential lot of the customers must be checked and accordingly the layout must be
decided. It should not have the large outlays and the heavy HTML coding making the
overall process slow by increasing the loading time. This shall scatter the crowd from the
John Lewis website.
 Minimalistic layout- The website of the company must have minimalistic layout which
can be easily used by the less tech savvy customer of the company. It should possess the
simple colour combinations, avoid the redundancy of the elements and an easily
noticeable search column so that the customer can directly reach the section they intend
to look. It is necessary for the John Lewis to apply this e-commerce principle that can
maximize the market share of the company (Sousa and Rocha, 2019).
 Consistent branding- In order to maintain the strong and healthy relations with the target
audience of the company consistency and regularity must be maintained in the marketing
of the products and services, disclosing all the new offerings, exclusive offers and deals
to generate crowd over the website. The continuous branding of the John Lewis products
shall be assisting in retaining the customers for a long time with the company.
 Knowing the target customers well- Before establishing the online operations of the
company they must completely research regarding their target audience and their
preferences. The design of the website must be based on their tech friendliness and the
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necessities of the customers. Also the buying patterns and the taste and preferences of the
customers must be observed and accordingly the deals must be provided to them.
 Efficient call to action- This is one of the most essential element that can convert the
demands of the customers into sales boosting the revenues of the John Lewis Partners.
The CTA over the website must be directly visible to the customers so that they can
process the sale soon. The buttons like “Add to cart”, “Shop now”, “Join now” etc. Also
the words that can instantly resolve the questions of the customers should be there so that
they can be better served.
 Unique design- The digital transformations must be unique and effective for the
company so that they can stand out amongst the competitors of the company
(Senyo, Liu and Effah, 2019). They must target the niche market that gives them the
additional benefit in the industry. Apart from that the website of the company must be
providing the unique user interface to the customers and a better experience through the
eye catchy images and the extravagant design so that the users are attracted towards it.
CONCLUSION
From the above project it can be summarized that the technological revolution has led to the
massive change in the market of the companies which is now highly influenced by the various
digital platforms that serves them with their need. The company is trying to form its optimized
website which is unique but user friendly in nature so that the maximum number of customers
can be attracted to the website of the company. The use of digital technology has also assisted in
the formation of the collaborative partnerships and the strategic alliances that is required in the
highly competitive world wherein the benefit of synergies can help them survive. Apart from that
there are various digital business models that are applied by the company in order to resolve the
major business issues like cyber security, data protection, customer management etc. through the
various potentially efficient software. It has also described some of the recent trends that have
been innovated to create advantages for the digitalized businesses like the artificial intelligence,
robotic technologies etc. This develops the operational efficiency for the business.
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REFERENCES
Books and Journals
Senyo, P. K., Liu, K. and Effah, J., 2019. Digital business ecosystem: Literature review and a
framework for future research. International Journal of Information Management. 47. pp.52-64.
Sousa, M. J. and Rocha, Á., 2019. Skills for disruptive digital business. Journal of Business
Research. 94. pp.257-263.
Wirtz, B. W., 2019. Digital business models. Springer International Publishing.
Rangaswamy, A. and et.al., 2020. The role of marketing in digital business platforms. Journal of
Interactive Marketing. 51. pp.72-90.
Scuotto, V. and et.al., 2017. Shifting intra‐and inter‐organizational innovation processes towards
digital business: an empirical analysis of SMEs. Creativity and Innovation Management. 26(3).
pp.247-255.
Bican, P. M. and Brem, A., 2020. Digital Business Model, Digital Transformation, Digital
Entrepreneurship: Is There A Sustainable “Digital”?. Sustainability. 12(13). p.5239.
Vendrell‐Herrero, F. and et.al., 2018. Digital business models: Taxonomy and future research
avenues. Strategic Change. 27(2). pp.87-90.
Boojihawon, D. K. and Ngoasong, Z. M., 2018. Emerging digital business models in developing
economies: The case of Cameroon. Strategic Change. 27(2). pp.129-137.
Xu, Y. and Koivumäki, T., 2019. Digital business model effectuation: An agile
approach. Computers in Human Behavior. 95. pp.307-314.
Seo, D., 2017. Digital business convergence and emerging contested fields: A conceptual
framework. Journal of the Association for Information Systems. 18(10). p.3.
Namugenyi, C., Nimmagadda, S. L. and Reiners, T., 2019. Design of a SWOT analysis model
and its evaluation in diverse digital business ecosystem contexts. Procedia Computer
Science. 159. pp.1145-1154.
Aagaard, A., Aagaard, A. and Harrison, 2019. Digital Business Models. Cham: Springer
International Publishing.
Chaffey, D., Edmundson-Bird, D. and Hemphill, T., 2019. Digital business and e-commerce
management. Pearson UK.
Peng, Y., 2017. Affective networks: How WeChat enhances Tencent’s digital business
governance. Chinese Journal of Communication. 10(3). pp.264-278.
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Schwertner, K., 2017. Digital transformation of business. Trakia Journal of Sciences. 15(1).
pp.388-393.
Streuer, M. and et.al., 2019. Profit driving patterns for digital business models. In Business
Model Innovation in the Era of the Internet of Things (pp. 165-176). Springer, Cham.
Online
Top 9 New Technology Trends for 2021. 2021. [Online] Available through: <
https://www.simplilearn.com/top-technology-trends-and-jobs-article>
John Lewis Partnership. 2021. [Online] Available through:
<https://www.johnlewispartnership.co.uk/>
How John Lewis & Partners accelerated its digital transformation. 2021. [Online] Available
through: <https://techbeacon.com/enterprise-it/how-john-lewis-partners-accelerated-its-
digital-transformation>
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