Digital Business: A Comprehensive Report on Key Aspects

This report delves into the realm of digital business, exploring its core concepts, advantages, and disadvantages. It examines the impact of digital technologies, including the rise of new business models like freemium, marketplace, experience, subscription, and on-demand models. The rep...Read More

Digital Business

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Define digital business and its advantages and disadvantages ...............................................1
2. Critically evaluate new and emerging digital business models...............................................2
3. Evaluate the impact of new collaborative relationships and strategic alliances through
digital technology.........................................................................................................................4
4. Discuss e commerce and its principles....................................................................................7
CONCLUSION: ..............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Digital business is said to be that they create a new technologies new ideas and new
innovative products or services in marketplace (Aagaard, Aagaard and Harrison, 2019). It is a
business model that organisations an individuals to buying and selling their products over
internet. It can operates several segments which are named as business to business( B2B),
business to consumer( B2C), consumer to business(C2B), consumer to consumer(C2C). This is
also considered related to business transactions of money, funds and draws on a various
technologies are use in this such as mobile transfer, internet marketing and many customers
dealings with online transaction systems. Selected organisation is Greenlight, it is a digital
marketing agency in UK and founded in 2001. they have a team about 150 people so that they
specialised in social media, content marketing and many more. In this report, various topics are
covered such as benefits and limitations of digital business, new and emerging digital business
models that are used in organisation, impact on strategic alliances and collaborative relationships
along with merits & demerits and e commerce and its principles.
MAIN BODY
1. Define digital business and its advantages and disadvantages
This term consist of creation of new opportunities and provide customers new
technologies, new value chains and the way of doing new things through internet (Calligaris,
Criscuolo and Marcolin, 2018). Sometimes digital business offers new ways to connect various
people, new collaboration and build and maintain relationships and trust between people. So
that's why they can create new designs for customers so that customer are easily to identify new
products or services that are offered by organisations. With relation to Greenlight, it is very
useful for firm if they are develop their new quality design for customers then customer are
attract more towards their firm. Various advantages and disadvantages of digital business are as
follows:
Increased data collection: Many of firms are enhance their data and collect various data
customers but benefit for analysis data which will impact on business forward. It can creates a
system for gathering their data and integrated business power at highest level. In case of
Greenlight, various functional ways to attract customers and produce a single view of operations,
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production, finance and business opportunities. If they can produce more product and recognise
each and every data then it is easy for firm to analyse.
Increased profits: To improve profitability and productivity they can take better decision
so that will be helpful for firm and customers also (Dornberger and Schwaferts, 2021). New
technologies are developed they can improve their efficiency in business and it makes easier. For
Greenlight, firm used to increased profits if they can reduced costs, increasing turnover, raised
efficiency. They can also extend their market sectors and develop their product or service and
provide various facility for customers.
Better customer experience: Customer expectation are high when it comes about
experience and they have an endless choice and fast delivery. If they innovate new products and
provide best quality services then customers are more attract towards their organisation. For
Greenlight, if firm can provide better quality of product then customer expectations much high
and they are always purchasing their product in this firm.
Disadvantages of digital business:
Anonymity and fake persons: It can consist of various technology and provides scope
to hide their identities. There are so many people to behave like they don't know about any
consequences. Sometimes people assumes fake enactment for purpose of any fraud, scamming.
In case of Greenlight, firm need to identify that persons uses different fake names and enter into
business and another person disagrees with that person.
Privacy concerns: There is some privacy issues in any organisations like everyone has
capability to take search people online and find various personal information. Most of firm used
security issues and privacy because many people used their private information even leak those
information which is important for company.
2. Critically evaluate new and emerging digital business models
The term digital business models is a form of creating new value based development that
will be benefits of customers using digital technologies (Fleaca and Stanciu, 2019). The aim of
this model is to generate significant competitive advantages that customers are willing to pay.
With context to Greenlight, it is important task for companies being advanced with digitalization
and extension of similarity business models by component. Customers are willing to pay and
creation of new value based development. Key essential business model that are defines in
respect to Greenlight are as described below:
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Freemium model: This type of model consists of where users are free version of product
or services on a free trial basis. It is based on various principles of ability condition and
sometimes many activities are made to more efficient by this procedures and those challenge are
completed successfully to attract more customer in freely basis. For Greenlight, firm provide free
services to customers to establish their future transactions dealings of business. It tends towards
more worked well business with small customers acquisition costs.
Market place model: This model determine where products or services are delivered in
market or not and customer can attract through these products. Digital business follow this model
to added their value on a large number of independent players in business are regular
transactions dealings will takes place. With relation to Greenlight, it is important for
organisations that define products or services to identify various target market and expected
expenses. It is significant for both new and established firms this will help to develop their new
companies attract investment and motivate employee and staff.
Experience model: This type of model consist of giving customers a new experience that
are willing to pay for a good money because of new innovative things and how customers are
experienced driven and benefit for success of company (Geliskhanov and Yudina, 2018). With
relation to Greenlight, if customers are more experience with their products or service then there
is an attraction towards that firm and customers are always purchasing with this firm. If
customers are attract with their brand or value then the result of every interaction are moving
towards with that customers and more receiving their product or services.
Subscription model: The subscription model are bringing a customer into business but
it is based on monthly payment for a particular product or services. For instance, Netflix.
Customer can subscribe this on an yearly or monthly basis and over 10 million people users
paying for this subscription access of thousands films and TV shows. In case of Greenlight, it is
very useful for firm because they can give more offers to firms and customers can attract and
purchasing on yearly basis subscription. A subscription model helps business to capitalize their
value of relationship with customers as long as to see their value that firm provide to them.
On demand model: Sometimes consumer having a demand model serves as a more
important part of digital business. If customer are attract more towards product or services then
firm has even more launches new product or services only for customers. This works by having
people for service that they dint have time for themselves but it is always available to fulfil
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people requirement for a particular time and short on money. For Greenlight, it consist of
customer value that how firm can create customer value and how business will stay competitive
including all income and expenses that they can anticipate.
3. Evaluate the impact of new collaborative relationships and strategic alliances through digital
technology
Collaborative relationships: When there are two or more people work together and
shares a common goals and objectives (Gruber, 2019). It has preferred only work with those
people who have different individuals and different point of view but many time they have
conflicts between them. It is a complex process that force people can listen or communicate with
each other that they would not be normal way. These relationship maintain and build their trust
between two people and work for common mutual goals and objectives. For Greenlight,
partnerships can allow to manger their potential risks and manage those problems based on such
findings. If two people work together firm can be beneficial because they can create new ideas,
new innovation and established a good relationships with each other. When individually they can
work together cant lead group towards a higher success rate to accomplish a common goals and
objectives.
Advantages of Collaborative relationship:
 Collaboration helps people to learn from each other: It is one of best things about
working collaboratively with team members and it is beneficial for people also that they
can learn something new. This means asking feedbacks, opinions and sharing knowledge
and skill with each others (Gray, 2019). Team members can collaborate to have an
opportunity to learn from each other determine their mistakes, failure and many more
they will gain own. In case of Grenlight, they have a chance with working those people
who are passionate about work which can be extremely useful and going forward for
future perspectives.
 It is helpful for communication: When two or more different people work together with
different areas they communicate with new ways. With relation to Greenlight, Sharing
more useful information so this is important for success for the firm that's why
collaboration in communication is important where two people are working together but
different departments.
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 Higher employee productivity: This relationships consist of seems to be more
individuals and creating a teamwork and build and maintain those relationship with
people who are encourages team members for collective data instead of themselves. This
can inspire raising employee engagement with work only to make sure that work can be
done in efficient manner. With context to Grenlight, it is important that various amount of
money spends on employees and determine what employee earns money through their
works or not. When employee feel productive they will be opportunity to contribute some
experience on overall organisation and increase their sense of goals.
Disadvantage of collaborative relationships:
 There must be a conflicts in working styles: When two different people working
together with same personalities, same knowledge and sharing information with same
people, so there musty be conflicts are arises in an enterprises (Osmundsen, Iden and
Bygstad, 2018). In case of Greenlight, employee are working together to achieve their
goals and objectives so that they can celebrate their success with the group and team
members. They can also build their trust among co workers and each member can
contribute with these team to accomplish their goals.
 Lack of trust between team members: With this, there is some misunderstanding are
arises if there is not completed their work who miss deadlines or do not completed their
assignment this will negative impact with team members and the entire team member can
responsible about this. So, there is a trust issues towards work among employees and it is
also reduce their efficiency in workplace.
Strategic alliances: When two or more companies can work together to create a win
situation (Satalkina and Steiner, 2020). It is an agreement between two or more companies for a
mutual benefit and firm can enter into a new market to develop their competitor strategy. With
relation to Greenlight, it is beneficial for companies to join together because it can decide to
forces develop new products or services for enter into new market. It allows organisations to
reach a wider audience for new and creative ways to enhance their new potential customers and
form a new strategic alliance that provides many opportunities. Key essential merits and demerits
of strategic alliances with context to Greenlight are as mentioned below:
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Advantages of strategic alliances:
 Sharing resources and expertise: Strategic alliance consist of both companies have
offer it is a deep understanding of firms that they have a knowledge of market how to
selling their product or services, enhance sales and how to increase their speed in market.
For Greenlight, firm need to be provide new resources with team members and monitor
without training or hiring consultants. Firms need to raise their sales to extend their sales
by which organisations are getting into alliances.
 Innovative products or services: Clients are always looking for new product or services
then they will attract this organisation. They will always choose those firms who need to
be provide new technologies, new product and hire best quality of expertise. With right
alliances for both companies, partners are involve the competition for new solutions to
their customers (Senyo, Liu and Effah, 2019). In case of Greenlight, it is important
because if two firms are completely join together to form a mutual benefit then they
develop new products or services for their customers which is beneficial for both
companies to help them increase their profits.
 Increase brand awareness: This is the opportunity for firm to increase brand value
through their customer because if the selling best quality of product or services to
customer so they can attract more towards their firm. It is best key element for growing
business. With relation to Greenlight, it allows organisations to reach a wider target
audience without getting an extra time and capital. This requires involves all parties only
to ensure an excellent quality of services with each and every transaction and it helps
customers to reach a wider term of objectives.
Disadvantages of strategic alliances:
 It can create conflicts: When two or more firms can bring together with sharing same
ideas, sharing same information in marketplace then conflicts are arises. Sometimes
there is no agreement will be able to capture their market share each and every detail for
understanding. Conflicts are arises because of goals, techniques that must be followed by
various alliances with partners (Sousa and Rocha, 2019). For Greenlight, it is a problem
for firms because if there is something unexpected are happened among employees. It
reduces all benefits related to firm which is important for customers.
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 Damage to goodwill: In this case, they create an alliances between organisations and
there is poor communication and connection between customers then firm goodwill will
damaged if there are not providing their best quality of products or services. With relation
to Greenlight, there is always a risk to damage their reputation for failure of firm no
matter how much they can prepare various forms of alliances with other firms it will also
enhance their reputation of business which is influenced by actions of company.
4. Discuss e commerce and its principles
It can be defined that buying and selling of goods and services through online platform,
mainly internet. It also helps in transmitting the funds or data over an electronic network
(Strømmen-Bakhtiar, 2019). Business transactions can occur in three form such as business-to-
business(B2B), business-to-consumer(B2C), consumer to consumer. In case of Greenlight, it can
offer a wide variety of services and opportunities which is enhance their products ranges to
generate more sales in firm and helps to accomplish their goals and objectives that will boost to
customers.
PRINCIPLES OF E-COMMERCE:
User Friendliness: An E-commerce website should be comfortable in steering so that it
easy for users to reach various or products or services. These type of websites should also
provide full amount of information and pictures of products so that they can understand product
very well. For Greenlight, it is important for firm because if there product are understand for
users then they will be pass on its purpose. The more websites are used for users, the more
confidence can build up to inspire to reach their customers.
Unique Design Elements: In this competitive world, it is very important that in the
website there should be some unique element or design so that user compel to browse particular
website (Vukšić, Ivančić and Vugec, 2018). In case of Greenlight, effective design are
important for users as well as firm. It is also gives customers a reason for buying their products
as compare to other competitors. A perfect design for product or services will always stand out
for competition.
Emphasize on security: Each and every person who is choosing to buying thier products
or services for a particular website then it must ensure to clients that their personal and financial
details are safe from every prospect. With context to Greenlight, there is some security or
privacy in organisation which is protect their privacy and enable to safe their applications on
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basis of IT systems, protect their data in firms and collection various resources an ultimately
leading to enhanced their revenue and reduction charges in business.
Know target audience: They should know their target customers on these websites and
design their product according to their target customers. It is easy way to feel them better while
reading their products and provide them service with a full of trust. With relation to Greenlight,
firm need to be identified their potential customers through various Websites and deliver their
products or services which is directly generate income and sales in organisation through
websites.
CONCLUSION:
From the above information, it has been understood that digital business helps to creation
of new technologies and develop new ideas and new value chain systems and it consist of
internal and external support of operations. In this report, various topics are covered which are
named as digital business and its advantages and disadvantages, evaluate new and emerging
business models which are used in to create a development of customer using various
technologies that which customers are always willing to pay for their products or services,
impact on collaborative relationships and strategic alliances along with is merits and demerits
which is explained when two companies are join together or bring together to form a mutual
benefits and E commerce and its principles that defined buying an selling of goods and services
for transfers various funds over network.
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REFERENCES
Books and Journals
Aagaard, A., Aagaard, A. and Harrison, 2019. Digital Business Models. Cham: Springer
International Publishing.
Calligaris, S., Criscuolo, C. and Marcolin, L., 2018. Mark-ups in the digital era.
Dornberger, R. and Schwaferts, D., 2021. Digital Innovation and Digital Business
Transformation in the Age of Digital Change. In New Trends in Business Information
Systems and Technology (pp. 1-13). Springer, Cham.
Fleaca, E. and Stanciu, R. D., 2019. Digital-age learning and business engineering education–a
pilot study on students’ E-skills. Procedia Manufacturing. 32. pp.1051-1057.
Geliskhanov, I. Z. and Yudina, T. N., 2018. DIGITAL PLATFORM: A NEW ECONOMIC
INSTITUTION. Quality-Access to Success. 19.
Gray, D. E., 2019. Doing research in the business world. Sage.
Gruber, H., 2019. Proposals for a digital industrial policy for Europe. Telecommunications
Policy. 43(2). pp.116-127.
Osmundsen, K., Iden, J. and Bygstad, B., 2018, September. Digital Transformation: Drivers,
Success Factors, and Implications. In MCIS (p. 37).
Satalkina, L. and Steiner, G., 2020. Digital entrepreneurship and its role in innovation systems:
A systematic literature review as a basis for future research avenues for sustainable
transitions. Sustainability. 12(7). p.2764.
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. Digital learning: Developing skills for digital transformation
of organizations. Future Generation Computer Systems. 91. pp.327-334.
Strømmen-Bakhtiar, A., 2019. Digital economy, business models, and cloud computing. In
Global virtual enterprises in cloud computing environments (pp. 19-44). IGI Global.
Vukšić, V. B., Ivančić, L. and Vugec, D. S., 2018. A preliminary literature review of digital
transformation case studies. International Journal of Computer and Information
Engineering. 12(9). pp.737-742.
Weill, P. and Woerner, S., 2018. What's your digital business model?: six questions to help you
build the next-generation enterprise. Harvard Business Press.
Yu, C., Zhang, Z. and Liu, Y., 2019. Understanding new ventures’ business model design in the
digital era: An empirical study in China. Computers in Human Behavior. 95. pp.238-
251.
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