During ZOOM class:

1. You should be visible at all times

(keep your camera on)
2. You are free to ask questions or
make comments
(unmute = space bar)
3. Interaction = Learning
(you ask more, you learn more!)
 Class Philosophy

Read the book and watch videos at home.

Get lectures AND do activities in class!
 Class Philosophy

Do (parts of) your assignment in class!

 Class Philosophy

We help each other to learn in class!

 Module in a Nutshell

How can an organization transform

to become a digital leader?
 Pearson BTEC Level 5 Higher National Diploma in Business

Unit 14: Digital Business in Practice

Modified by: Martin Ortega Azurduy

Based on : TMC Academy v1 – July 2021
 Pearson BTEC Level 5 Higher National Diploma in Business

Unit 14: Digital Business in Practice

Modified by: Martin Ortega Azurduy

Based on : TMC Academy v1 – July 2021
LO1 Examine the digital business environment, emerging trends and
contemporary approaches.
LO2 Investigate the effectiveness of the use of digital technologies to
achieve business objectives

LEARNING OUTCOME 1&2

 Learning objectives

• Define the meaning and scope of digital

business and the difference between
digital business and e-commerce
• Summarise the main reasons for
becoming a digital business and barriers
that may restrict it
• Outline the ongoing business challenges
of managing digital business in an
organisation, particularly tech start-ups
Martin Ortega Azurduy
September 2021
Modified from © 2019, 2015, 2011. All Rights Reserved
 Management issues

• How do we explain the scope and

implications of digital business to staff?
• What is the full range of benefits of
introducing digital business and what are
the risks?
• How do we evaluate our current digital
capabilities?

Martin Ortega Azurduy

September 2021
Modified from © 2019, 2015, 2011. All Rights Reserved
 Digital business innovation and
opportunity
• Since Google was launched in 1998,
which digital start-ups have transformed
the way we work, live and play?
• How has Google innovated in search
and its business model?
• See Table 1.1 for some of the major
innovators

Martin Ortega Azurduy

September 2021
Modified from © 2019, 2015, 2011. All Rights Reserved
 Martin Ortega Azurduy
September 2021
Modified from © 2019, 2015, 2011. All Rights Reserved
 The evolution of Internet

Martin Ortega Azurduy

September 2021
Modified from © 2019, 2015, 2011. All Rights Reserved
 Activity
How do you think the Internet can change business?

Are there other, newer, technologies that could dramatically

change different industries?

Martin Ortega Azurduy

September 2021
Modified from © 2019, 2015, 2011. All Rights Reserved
 How Internet of Things - IoT & Cyber Physical
Systems Will Shape The 4th Industrial Revolution

Martin Ortega Azurduy

September 2021
Modified from © 2019, 2015, 2011. All Rights Reserved
 The impact of digital communications
on traditional businesses

• Impact and time a business takes to react

varies by industry sector
• Andy Grove, Chairman of Intel, one of the
early adopters of digital business, noted
that every organisation needs to ask
whether, for them:
“The Internet is a typhoon force, a ten times force,
or is it a bit of wind? Or is it a force that
fundamentally alters our business?”
(Grove, 1996)

Martin Ortega Azurduy

September 2021
Modified from © 2019, 2015, 2011. All Rights Reserved
 New communications approaches
and consumer behaviour
Multichannel consumer decision- making

Martin Ortega Azurduy

September 2021
Modified from © 2019, 2015, 2011. All Rights Reserved
 Figure 1.2 Zero Moment of Truth

Source: Google, Lecinski (2012).

Martin Ortega Azurduy

September 2021
Modified from © 2019, 2015, 2011. All Rights Reserved
 Activity:
What is digital business and
e-commerce?
• You are attending a role in the digital
team of a global retailer
• You anticipate you may be asked the
distinction between e-commerce and
digital business
• Write down a definition for each:
‒ E-commerce
‒ Digital business

Martin Ortega Azurduy

September 2021
Modified from © 2019, 2015, 2011. All Rights Reserved
 The difference between digital
business and e-commerce
• Digital business
‒ The transformation of key business
processes through the use of digital
technologies
• E-commerce
‒ All digital (and electronic) mediated
transactions between an organisation and a
third party

Martin Ortega Azurduy

September 2021
Modified from © 2019, 2015, 2011. All Rights Reserved
 Figure 1.4 The relationship between
intranets, extranets and the Internet

Martin Ortega Azurduy

September 2021
Modified from © 2019, 2015, 2011. All Rights Reserved
 Activity:
Understanding different types of
digital presence
Find examples of each:

• Transactional e‐commerce site

• Services‐oriented relationship‐building
website
• Brand‐building site
• Portal or media site
• Social network
‒ These aren’t mutually exclusive, but there is
usually a focus of each website

Martin Ortega Azurduy

September 2021
Modified from © 2019, 2015, 2011. All Rights Reserved
 Digital marketing
• Digital marketing involves:
‒ Applying technologies which create digital channels to market
▪ For example, Websites, search engines, email, social media sites and text
messaging

• To achieve these objectives

‒ Support marketing activities aimed at achieving profitable acquisition,
conversion and retention of customers within a multichannel buying process
and customer lifecycle
• By using these tactics
‒ Recognising the strategic importance of digital technologies and developing a
planned approach to reach and migrate customers to digital services through
digital and traditional communications
‒ Retention is achieved through improving our customer knowledge (of their
profiles, behaviour, value and loyalty drivers), then delivering integrated,
targeted communications and digital services that match their personal needs

Martin Ortega Azurduy

September 2021
Modified from © 2019, 2015, 2011. All Rights Reserved
 Options for companies to reach
their audience online

Figure 1.7 The three main options for online media investment
Martin Ortega Azurduy
September 2021
Modified from © 2019, 2015, 2011. All Rights Reserved
 The six key types of digital
media channels

Figure 1.8 Digital and offline communications techniques

Martin Ortega Azurduy
September 2021
Modified from © 2019, 2015, 2011. All Rights Reserved
 Evolution of web technologies

Figure: 1.9 Evolution of Web Technologies

Source: Adapted from Spivack (2009)
Martin Ortega Azurduy
September 2021
Modified from © 2019, 2015, 2011. All Rights Reserved
 How Artificial Intelligence is
transforming business?

Martin Ortega Azurduy

September 2021
Modified from © 2019, 2015, 2011. All Rights Reserved
 Business or consumer models of e-commerce
transactions

Figure 1.10 Summary and examples of transaction alternatives between

businesses, consumers and governmental organisations
Martin Ortega Azurduy
September 2021
Modified from © 2019, 2015, 2011. All Rights Reserved
 Consumer to Consumer

Figure 1.11 Gumtree and Craigslist side by side

Source: sjscreens/Alamy Stock Photo; True Images/Alamy Stock Photo

Martin Ortega Azurduy

September 2021
Modified from © 2019, 2015, 2011. All Rights Reserved
 Figure 1.12 A simple stage model for
buy-side and sell-side e-commerce

Martin Ortega Azurduy

September 2021
Modified from © 2019, 2015, 2011. All Rights Reserved
 Drivers of digital technology adoption

Table 1.2 Tangible and intangible benefits from e-commerce and digital business

Martin Ortega Azurduy

September 2021
Modified from © 2019, 2015, 2011. All Rights Reserved
 Digital disruption:

Big opportunity for businesses Making digital business a reality

Martin Ortega Azurduy

September 2021
Modified from © 2019, 2015, 2011. All Rights Reserved
 Digital business opportunities

• Reach
‒ Billions of global consumers
‒ Millions of products
• Richness
‒ 100s of billions of pages indexed by search
engines
• Affiliation
‒ Links with partners

Martin Ortega Azurduy

September 2021
Modified from © 2019, 2015, 2011. All Rights Reserved
 Risks in digital business

• Too many customers

• Hacking
• Privacy issues
• Goods/services not being delivered
when outside the control of the digital
business
• Communications not getting to the right
person in the organisation

Martin Ortega Azurduy

September 2021
Modified from © 2019, 2015, 2011. All Rights Reserved
 Drivers
• Cost/efficiency drivers
‒ Increasing speed with which supplies can be
obtained
‒ Increasing speed with which goods can be
dispatched
‒ Reduced sales and purchasing costs
‒ Reduced operating costs
• Competitiveness drivers
‒ Customer demand
‒ Improving the range and quality of services offered
‒ Avoid losing market share to businesses already
using e-commerce

Martin Ortega Azurduy

September 2021
Modified from © 2019, 2015, 2011. All Rights Reserved
 Activity:
Drivers and Barriers
• You work as an advisor to a local government
organisation that promotes the take-up of e-
commerce amongst small businesses
• List:
‒ Drivers to adoption of sell-side e-commerce by
business and how you can reinforce these by
marketing benefits
‒ Barriers to adoption of sell-side e-commerce by
business and how you can reinforce these by
stressing benefits

Martin Ortega Azurduy

September 2021
Modified from © 2019, 2015, 2011. All Rights Reserved
 Source: eBusiness Framework (Ortega, 2001)

Martin Ortega Azurduy

September 2021
Modified from © 2019, 2015, 2011. All Rights Reserved
 Summary
• You should be able to define the meaning and
scope of digital business and the difference
between digital business and e-commerce
• You should be able to summarise the main
reasons for becoming a digital business and
barriers that may restrict it
• You should be able to outline the ongoing
business challenges of managing digital
business in an organisation, particularly tech
start-ups
Martin Ortega Azurduy
September 2021
Modified from © 2019, 2015, 2011. All Rights Reserved
Thank you!
Any questions?