Digital Business Report: Trends, Models, Alliances, and Cryptocurrency

This report provides a comprehensive analysis of digital business, focusing on key trends, advantages, and implications of digital technology. It explores new and emerging digital business models, such as e-commerce and digital ecosystem models, examining their impact on businesses like Amazon UK. The report also investigates the influence of new collaborative relationships and strategic alliances on business growth and innovation. Furthermore, it assesses the impact of cryptocurrency on the development of digital business and its future prospects. The analysis covers advantages like enhanced data collection, improved customer experience, and increased operational efficiency, while also addressing challenges like cyber security threats. The report concludes by highlighting the importance of digital transformation for businesses to adapt to the rapidly changing environment and achieve sustainable growth.

Digital Business

Table of Contents
INTRODUCTION......................................................................................................................3
1. Key trends, advantages and implications of digital technology......................................3
2. New and Emerging digital business models...................................................................4
3. New collaborative relationship and strategic alliances impact.......................................6
4. Cryptocurrency impact on the development of the digital business...............................8
CONCLUSION..........................................................................................................................9
REFERENCES.........................................................................................................................10

INTRODUCTION
Digital business means a process which is followed by the companies in the rapid
changing environment. In this the companies use digital technology to reinvent the business
and transform the process of the company as well as increase the customer satisfaction. It
helps to create value to the company as well as increase the customer base and can run long.
Amazon UK is a well established e-commerce business whose principle focus is on the
customer rather than its competitors. It is into supplying various products and services. It
delivers the fresh produce at the doorstep (Amazon UK, 1996 - 2022). Its product line include
groceries, books, confectionery items, kitchen and beauty products etc. Amazon main
services are logistics means delivering the products. This report will provide the trends as
well as the advantages and implication of the digital technology globally. It will critically
evaluate the issues regarding the digitalisation. Further it will be evaluated that how the
business is impacted by new technology. Lastly, the impact of the cryptocurrency on digital
business and its development in the near future and the growth of the market as well as the
industry.
1. Key trends, advantages and implications of digital technology
There are several key trends which help Amazon to be better which are as follows:
 Voice Search- It have increased the productivity of the business as well as it capture
the speech fast than type so it is very useful as the customer can use it easily (Bala and
Verma, 2018). As the sellers are benefitted from this as they can make the purchases
directly with the help of Alexa.
 Two day delivery- In this the Amazon prime was the giant tech in the industry. It help
to establish more business which include the restaurants etc (Ghobakhloo, 2020).
Through this policy of two day delivery more customer base is increased.
 Automated Brick and Mortar stores- Due to offline stores amazon offers its customer
a greater advantage. With the help of this the customers can peruse and even test the
products in person as well (Parida and Wincent, 2019). Due to this the customer base
as well as the satisfaction of the customer is increased.
 Online review- Due to this many e commerce company have made success. As with
the help of the online review it can work as per the needs of the customers and it
increases the customer satisfaction as well as more customers are introduced. Based
on this the customer trust the products and services. They act as a decision making as
people make their decisions based on the review of the products.
The advantages as well as its implications are elucidated below:

 Enhanced data collection- As there is a vast data of the customers and the data as a
huge benefit on the business as to what is to be introduced and taken care to increase
the customer satisfaction. So digital transformation help to gather the right data which
can be used. Due to this it increase the efficiency and productivity as the processes are
streamlined and speed up (Martínez-Caro, Cegarra-Navarro and Alfonso-Ruiz, 2020).
With this the decisions can be taken faster as more advanced technologies are used.
Its main implication for Amazon is that with correct and relevant data new strategies
can be made to watch on the needs of the customers. Better customer experience- As customers have high expectations due to the digital
experiences and the technology. So they have endless choices at low prices. As due to
artificial intelligence Amazon can understand its customers and have a good
relationship. As with the help of digital technologies it allow the businesses to collect
and analyse the customer data. Due to this method a greater insight can be made and
new offers can be launched on the products and services which are searched by the
customers regularly. It has a major implication on the customer base as well as the
increase in the revenue. Increase the operation efficiency- With the help of digital transformation the
operational efficiency of the company is increased. As the costs are reduced, the
unwanted extra cost is not there. Due to which the company can even reduce the
prices of the products and can earn more revenue and increase the customer base. Due
to this the future growth of the company is increased. Enhanced Agility – As in the fast pace growth of the digital environment. The
companies are now able to easily respond to the market changes and work on the new
opportunities (Tohãnean and et.al., 2020). As Amazon has adopted agile technique so
that they process can be automated, can be easily modified and changes can be
adapted fastly. Due to this the cost has decreased and productivity has increased. Even
decision can be made easily and the morale of the employee is also increased as
manual task are not to be performed.
2. New and Emerging digital business models
The most common and emerging digital business models are as follows:
 E Commerce Model- It is one of the most popular model and Amazon was the one
who started it first. It is easy to adopt it as the companies who are offline can easily
start their own business online from scratch. As in this various products are sold at
one platform. As well as it benefits the suppliers to know the customer needs and can

access new market (Boojihawon and Ngoasong, 2018). As it have problem regarding
the cyber security of the data so the companies use solid rock firewalls so that
malware viruses and online frauds does not happen. Even the company get secure
server layer (SSL) certificate so that sensitive data can be encrypted and then can be
shared so that the data becomes unreadable to the unintended users.
 Digital Ecosystem Model- These are the most complex digital business structure. As
Amazon UK provides customers with various products as well as the services on a
single platform (Rossi and et.al., 2022). So due to this upselling and cross selling
becomes easier. It is a significant revenue driver for the company. As due to digital
services which are provided help to grow more customers. As it requires a giant
server and infrastructure to serve the customer all over the globe on the e-commerce
platform. As due to the online platform cyber crimes as well as the unethical
behaviours have increased rapidly. So the company can adopt digital ethical approach
to ensure that the privacy has been taken care (Nwaiwu 2018). Due to this it will
minimize the crimes as well as secure the sensitive information and unauthorised
access can be prohibited. To ensure the safety of the data the company even does data
management so that the data can be kept safe for this the company takes following
measure which are as follows:
 Regular backup of the data so that even when the data is lost then it can be
recovered shortly.
 Appropriate access is given so that due to unauthorised access the data does
not get into wrong hands.
 Specific roles are given to the team members in which they are specialised.
 Regular audits of the data is done.
 Standards are applied.
 Consequences are their if there is any non compliance.
Apart from the above models there are several other models which can be used by the
company to increase its productivity, customer base as well as the digital business all over the
world (Wu and Gereffi, 2018). But from using this models in the digital market or business
there are disadvantages as well. As the mainly due to the growth of digital business cyber
crime have increased. So the company have to keep in mind various security policy to keep
check of the data and the customer information safety.
As there are cyber attacks which can cause huge amount of issues to the company
which are as follows:

 Ransomware attack in this the attackers ask for the payment and then release the data
otherwise can cause harm to the data. Due to which the company cannot do its daily
operations.
 Cloud attacks in this the cloud data is stolen and the private information is leaked
which can cause the enterprise a massive collapse.
 Insider attacks which takes place when the employee have malicious intent to leak
and expose the confidential data of the company. Due to which it can get paid by the
competitors.
Due to cyber attacks in case of digital business there is a threat of financial loss which
arise from the theft of corporate information, the sensitive details regarding the financials of
the company, money etc. Due to this there is loss of reputation among the customers which in
return reduces the sales which reduces the companies overall profits.
To protect the data against the cyber threats the company takes various measures so that it
can be reduced (Zaki, 2019). The company uses latest hardware and software as well as the
technologies so that the data is encrypted and cannot accessed by the unauthorised users. It
even install the firewalls for the extra security of the data. Everything is protected with the
passwords which cannot be hacked by the hackers. Sensitive information is deleted when its
requirement is over.
3. New collaborative relationship and strategic alliances impact
In the modern era of business and digitalisation of the companies. The companies work
together to accomplish their common goals. To grow faster and more the companies use to
build the collaborative relationship so that it help to scale the business and grow it on a faster
pace (Mamédio and et.al., 2019). As it enables to reduce the time which is required as well as
the money required by the business is also less as comparatively. The resources can be
utilised in a better way and can lead to better growth. As innovation and technology as
become a core part of any business so it is of utmost importance to work on the new
technology. So collaboration help to develop new technology and even the functionality of
the business is improved due to this (He and et.al., 2020). Due to collaboration more
innovation can be made and the productivity also increase as it motivates the employees as
well to perform at their best.
Amazon UK have also done collaboration with various companies such as Adobe, Red
Hat, Microsoft, Zapier, Shopify, Intel and many more (Gundolf, Jaouen and Gast, 2018). Due
to this it has a huge impact on the company which are elucidated below:

Advantages Helps in solving problem- As when more than two companies collaborate with each
other then it help to make better judgments and decisions. As both have different
perspective which help to solve the problems easily. It even becomes easier to spot
the problems and the new decisions can be taken easily. New channels for communication are opened- Through this working with new
people and companies help to explore in different areas and open channels of revenue.
Communication is made easy in between the departments which help to improve their
team work (Shijaku, Larraza-Kintana and Urtasun-Alonso, 2020). Collaboration
benefit everyone in the organisation as the opinion of everyone is taken and
communicated properly to reach the common goal. More efficient workers- As the focus is majorly on the goal so keeping in mind short
deadlines are given to the workers. Due to which the work is performed on time. As it
also help to divide the workload and form a better culture to work.
Disadvantages Security- As due to online collaboration many cyber security issues are faced by the
company. As the data is accessed by various guests due to which the confidential
information is not protected. Unnecessarily creation of big teams- Due to collaboration more teams are made and
unnecessary resources are consumed. By creation of big teams the resources are not
efficiently utilised.
Strategic alliance is an arrangement which the companies make between them so that
they can mutually carry a particular project. It is less binding in comparison to joint
venture. It help to improve the existing market and can help to have a competitive edge
over the business. It even help to easily introduce a new product line. Amazon have made
strategic alliance with various businesses. It has the impact on the company.
As planning is made easy and companies even seek to reduce the costs which is to be
incurred. It involves different key executives which help to make decisions among them.
It even share the risks and rewards of the business. It even allow to outsource the supply
chain stages and can even explore the market size and new technologies. New innovation
can be introduced in the company (Bouncken and et.al., 2018). Strategic alliance create
value by improving the operations of the company, it changes the competitive
environment.

Economies of scale is achieved and the ability to learn more is increased. Apart from
all these there are several challenges which are caused due to strategic alliance. Which are
that the partners may sometimes fail to commit to the resources and capabilities that the
others have. There may be disagreement on few decisions which can cause hindrance in
achieving the objective of the companies. The company can lose control over certain
factors such as the operating cost, the quality of the product etc.
4. Cryptocurrency impact on the development of the digital business
Cryptocurrency is a digital currency which can be in future as well as know used as a
payment alternative by various companies (Mikhaylov, 2020). It is created by using various
algorithms. It can work as a means of currency as well as a virtual accounting system. There
are thousands of cryptocurrencies which include Bitcoin, Ethereum, Litecoin, Ripple etc.
Tether is a stablecoin which is a cryptocurrency it has appropriate security. As it provides
relevant and reliable ways to buy the cryptos. But apart from all this cryptocurrency faced a
huge crash in the market due to which it came as a bubble bust in the market (Giudici, Milne
and Vinogradov, 2020). As due to high volatility in the market as well as the slow adoption
of blockchain by the business have impact on the cryptocurrency.
Many companies or big enterprises are welcoming cryptocurrency. As it can streamline
the operations and even can develop the demand and grow in the market. As government is
also taking measures as of now there is no such rules which have been made. With the
increasing adoption of the currency in the form of payment and moving towards the
innovation. The companies are helping individuals to transact in the near future. As the coin
has two sides accordingly cryptocurrency has advantages as well as disadvantages which are
explained below:
Advantages Made transaction easy- As Amazon is in e commerce and is a online marketing
company which provides various products to the customers all over the world. Due to
this the money is transferred online which requires a mandatory verification of the
account details which is a time consuming task (Hacioglu, 2019). By using the
cryptos it will become easy as the payment will be directly made with the help of
cryptos which in turn will save the time. International trade will be facilitated- As in case of transactions with the different
countries it becomes hectic due to the currency rates and fluctuations. So with the
help of cryptocurrency the international trade will be made more easier as the

valuation of the crypto will be same across (Ertz and Boily, 2019). This will
encourage in facilitating business worldwide and increase in the revenue. Decentralised- One of its major advantage is that it is a decentralised currency. Which
is controlled by the one who have developed it as it help to keep the monopoly in the
market. It is cost effective as well which means that the payment can be made with
the help of cryptocurrency and it does not require other or third party application or
involvement in the payment process.
Disadvantages
 Cyber security related issues- As in the ever changing technological environment it
has become a threat that there is a risk of cyber security. As the hackers can access
sensitive information of the customers as the cryptocurrencies are in digital form. As
it is very much vulnerable to the cyber attacks which are caused in and there can be
loss to the investors or the customers.
 No rules and regulations by the government specifically- The government has not
specifically made any rules and regulations in regards to the cryptocurrency. As there
is no legal protection provided by the government as in case of the bank (Amsyar and
et.al., 2020). Even the crypto can drop significantly and large number of investors can
have a huge loss. As it happened recently when the market got crashed.
CONCLUSION
In this report it can be concluded that there are various key trends and advantages of
digital technology. As in the new era and the world of technology it has become very
important to keep a pace with the new technology to grow the business rapidly and increase
the customer. As to satisfy the needs of the customers it is necessary to mould the business
and be proactive. Amazon works on the digital technology which help to increase the market
share and it influence the global environment as well. It is further evaluated that in the
increasing using of technology cyber security is very important and there is unethical
behaviour which is caused so the company uses various digital business models to reduce the
risk. The report also include the impact of new collaborative relationship which has helped to
grow the business and how strategic alliance have helped in the betterment of the operations.
Lastly, it can be concluded that the cryptocurrency has impact on the development of the
business as it can help to increase international trade and can help to make the transactions
easy. Apart from this cryptocurrency can be the future.

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Amazon UK. 1996 - 2022. [Online]. Available Through: <
https://www.aboutamazon.co.uk/what-we-do/amazon-uk>. [Accessed 17 August 2022]