TASK DESCRIPTION

BACKGROUND

Technology today is no longer seen as a facilitator of everyday business practices. It has now
become the heart, the centre of almost every business strategy, and data can be used by
businesses to produce, store, and analyse relevant information to achieve the competitive
advantage over their peers. Digital business, as it relates to business technology, offers
companies and individuals new ways to connect, collaborate, conduct business, and build
bridges between people. It impacts the basis of business functionality and determines the
way business is managed today. However, security and privacy have become one of the
biggest concerns. For example, on 5 th of April 2022, The Works, a discount retailer based in
the United Kingdom, forced to shut some its shops after cyber-attack (BBC,2022). This shows
digital business must take utmost care in securing their systems.

TASK

Choose a well-established digital business or e-commerce business in a B2B or B2C context.

The chosen business must have a well-developed website, where you can find information
about their strategies and operations. You are taking the role of an independent digital/e-
commerce business consultant tasked to evaluate the strategies that the chosen digital/ e-
commerce business is applying based on the tasks outlined below and complete these in a
report.

The tasks include:

1. Provide an overview of key trends and advantages of digital technology and implications for
managing virtual business in the global environment by drawing on your chosen business.
2. Critically evaluate new and emerging digital business models in the context of key
business issues such as cyber security and ethics that your chosen business uses or
may use.
3. Evaluate the impact of new collaborative relationships and strategic alliances through
digital technology for your chosen business.
4. Tether, the multibillion dollar “stablecoin” that functions as the largest bank in the
cryptocurrency economy, has paid out $10bn (£8bn) in withdrawals since the crypto
crash started in early May. (The Guardian, 2022). Is the cryptocurrency bubble
bursting? Critically discuss the impact of this development on digital businesses.
Reference:

 BBC News. 2022. The Works forced to shut some shops after cyber-attack. [online]
Available at: <https://www.bbc.co.uk/news/business-60993635> [Accessed 5 April
2022].
 The Guardian. 2022. Tether pays out $10bn in withdrawals since start of crypto
crash. [online] Available at:
<https://www.theguardian.com/technology/2022/may/22/tether-pays-out-10bn-in-
withdrawal-since-crypto-crash> [Accessed 23 May 2022].

1. LO1: Understand the key trends and advantages of digital technology and implications for
managing virtual business in the global environment
2. LO2: Critically evaluate new and emerging digital business models and key business issues
such as cyber security and ethics etc. in managing effective e-business
3. LO3: Evaluate the impact of new collaborative relationships and strategic alliances through
digital technology.
4. LO4: Understand and apply relevant digital business theoretical concepts in practical
contexts
5. LO5: Use a multi-disciplinary approach to apply E-Commerce principles in a
business/public/voluntary sector organisation.

ASSIGNMENT TASK
Choose a well-established digital business or e-commerce business in a B2B or B2C context.
The chosen business must have a well-developed website, where you can find information
about their strategies and operations. You are taking the role of an independent digital/e-
commerce business consultant tasked to evaluate the strategies that the chosen digital/ e-
commerce business is applying based on the tasks outlined below and complete these in a
report.

Structure/ Template:
Title/ Cover page - NOT included in wordcount ( state the name of the chosen company in
the title)
Executive Summary/ Abstract (aim of the report, summary of the key points emerging from
your analysis ; one paragraph for each of the 4 parts) ( max. one page approx. max 400
words) (write past tense) ( no references) NOT included in wordcount
Table of contents (headings, sub-headings with numbering and page number) NOT included
in wordcount

Introduction (outlining the aim the report; overview to the chosen digital business
(reference the website); discuss/ overview of digital business (present the growth of digital
business globally/ nationally, supported with evidence such as statistics, news etc. ); outline
structure of report) ( Sources:- references to the website of the digital business / other
websites/ news/ magazines) (approx. 300 words)
In 1995, the result of a survey taken by the CommerceNet consortium demonstrated that only
approximately 14% of the responder used the World Wide Web to purchase products and
services, in US and Canada (Hammond, 1996). After more than a quarter of a century, the
number have exponentially multiplied, reaching approximately 80% of developed counties’
population, which utilise internet as trading method. On another hand, organizations are
seeking to incorporate digital technology in this intensely competitive market in an effort to
maintain their competitiveness, increase productivity and efficiency, and increase profit
margins. This report will discuss about the

1. Overview of Key Trends and Advantages

Provide an overview of key trends and advantages of digital technology and
implications for managing virtual business in the global environment by drawing on
your chosen business (approx. 700 words)

4.1. Definition of Digital/Virtual Business (Sources: books; journal article)

Put 2 definitions - put example of e business or start to introduce the chosen
company
According to Wirtz (2021), digital business is referred to as a business between
economic subjects that is initiated, negotiated, and/or transacted electronically
using telecommunications networks. A subset branch of the digital business is e-
commerce. While, e-business performs all type of business activities through
internet, e-commerce specifically focuses on the online commercial activities,
transactions over internet. This is the case of the largest independent online
fashion and cosmetics retailer in the UK: ASOS (As Seen On Screen). The firm
offers a wide range of fashion-related content as well as cutting edge fast fashion
products. From a 1.1 million square foot global distribution centre in the UK, sell
over 65,000 branded and own brand products through localised mobile and web
experiences. To inspire and power customers fashion discovery is the ASOS
guiding principle. Their goal is to top the list of worldwide fashion destinations.

Advantages of Digital/Virtual Business (Sources: books; journal article)

 In general, digital business has brought a number of benefits, which includes the
following points:
 Free access to any market
The digitalization of businesses has allowed organizations to trade with
customers from any part of the world. ASOS ship its products to 234
countries and territories globally.
 Cost-effective E-commerce speeds up the processing of electronic stores
and it lowers cost inception. As result, business performance is less
expensive than traditional stores. Moreover, it increases the scope of
supply markets, including beyond the limits of space and time, and thereby
to increase competition which results from the high-quality products and
low prices.
 improved customer experiences Mobile devices, apps, machine learning,
automation, AI and much more allow customers to get what they want
almost exactly at the moment they need it, 24/7.
 higher agility of the firms, which adapts quickly in a rapidly changing,
ambiguous, turbulent environment. This allows a faster decision-making
strategy
 absence of physical shop

improved employee morale, improved communication, increased

transparency, improved competitive advantage,

Available 24/7
Access e business from anywhere
For example, with Amazon there is only need to sign up – accounting, storage and
other costs are all covered
Time saving
AI – you want to buy Nike trainers – change mind than every where you click it
still connect with otherwebsite selling the same product

4.2. Key Trends in Digital/Virtual Business (Sources: books; journal article)

The key trends of digital business focus mainly on technological systems

evolution. The more advanced technologies are the better results are obtained by
analysing Big Data and Cloud Computing, through Mobile Services as platforms
for socializing. For instance, Nike created Nike Fit app, which uses AI algorithms
and a smartphone to find the right model and shoe size (Pisani, 2019). On the
same line, ‘‘touch points’’ for customer experience are transforming marketing,
governance, and the boundaries of organizations as well as consumers private life
 (Morabito, 2014). In contrast, Data protection and cyber security have become of
crucial importance for d-businesses. It has been demonstrated that highly evasive
adaptive threats (HEAT), which can bypass traditional security defences that
include firewalls and secure web gateways, saw a 224% increase in the second
half of 2021 (Stirling, 2022).
Automation saves employees precious time in responding to customers, as well as
it can also gather data and help with forecasting and making strategic business
decisions. According to International Journal of Innovative Science, Engineering
& Technology, since Amazon acquired the most sophisticated AI system in 2012,
its revenue increase of 359% (Laber et al, 2020).
Logistic – Delivery done with drone
Virtual reality
AI – you want to buy Nike trainers – change mind than every where you click it
still connect with other website selling the same product

4.3. Application to using digital business with advantages and key trends applied
to your chosen organisation (Sources: website of the chosen organisation; news;
magazines; other websites eg. BBC news, Harvard Business Review, Marketing
Week, The Drum etc.)
Smart product search system
With its 85,000 products, ASOS online users may be trapped in a “mixed choice task”
situation (Lynch et al, 1988). In response, ASOS utilizes a sophisticated search
system, where consumers can easily fill in options of brand, price, size and colour. In
addition, Style Match allows consumer to upload the photo of the item of interest
(Asos.com, 2022a). As result, the user will spend less time in researching as well as it
will facilitate information evaluation and the purchase decision making.
Fast Strategies
A perfect example has been the Covid-19 pandemic lockdown, where ASOS has been
able to adjust to the sudden higher demand increasing the profit of 275% in the first 6
months of the restrictions (Sillars, 2021). Oppositely, traditional commerce had to
follow the Government’s temporary rules, keeping the shops shut.
Advanced

ASOS covers all the on-line platforms, including the mobile App, which is
downloadable either in Android and IOS. In addition, ASOS adopts machine learning
technology, which helps to personalise the customers shopping journey (Adam,
2020).

5. Critically evaluate new and emerging digital business models in the context of key
business issues such as cyber security and ethics that your organisation uses or may
use (approx. 700 words) (https://morethandigital.info/en/9-disruptive-business-
models-new-opportunities-for-companies/#4_Marketplace_Model)

5.1. Defining new, emerging digital business models (Sources: books, journal
articles)
 Monzo business
When talking about new emerging business model, it is important to mention that innovation
has played a vital role. In fact, six keys technologies have changed the way to make business.
Artificial intelligence (AI), robotics, the Internet of Things (IoT), digital manufacturing,
virtual and augmented reality, and Unmanned Aerial Vehicles (UAV) are making possible
the growth of several business models
(https://www.fundacionbankinter.org/wp-content/uploads/2021/09/Publicacion-PDF-IN-
FTF_ModelosDisruptivos.pdf ), such as:

Sharing Economy model

Through digital platforms that don't offer the main service themselves, a variety of
production, consumption, or funding models based on the interaction between supply and
demand, whether peer-to-peer, business-to-business, or individual-to-business are possible.
Some successful, well-known examples are Airbnb (accommodation between private
individuals) and BlaBlaCar (private ride sharing or carpooling).

On-demand model

A commercial relationship between the consumers is implied by the on-demand model, and
the activity is carried out for profit in exchange for payment. The on-demand concept is
perfectly shown by TaskRabbit, Deliveroo, and the Spanish portal Etece (microtasks like
cleaning or plumbing services).
Access model
A corporation that makes a succession of items available to the users on a transitory basis and
for economic interests" makes up the access economy. According to the research, it promotes
access over ownership and in this instance, the digital platform does offer the essential
service. Examples include coworking spaces or car sharing (car fleets for shared usage, like
Car2go) (shared working environments).
Marketplace Model
Marketplaces can sell their own products on the website, but the primary objective is to
provide this opportunity to as many third-party vendors as possible. For example, Amazon,
eBay, Etsy charge a commission per transaction and have sellers offering various products on
their platform.

Klarna collaborative business model

https://roobykon.com/blog/posts/117-what-is-the-difference-between-a-sharing-economy-an-
on-demand-economy-aggregator-and-a-marketplace-business

5.2 Discussion on new, emerging digital business models in the context of key issues such as
cyber security and ethics (Sources: based on book and article above and other similar
sources) - https://ulir.ul.ie/bitstream/handle/10344/7638/Avram_2017_Collaborative.pdf?
sequence=2
Cybersecurity is the process and set of tools used to guard against unwanted access to
programmes, networks, and critical data from a computing perspective. Physical security and
cybersecurity are two types of security that are put in place to stop any kind of unwanted
access to a computerised system or database, respectively. Principally, cybersecurity aims to
prevent Identity Theft, Cyberattacks and Data Breach.(
https://repo.zenk-security.com/Magazine%20E-book/Hacking-%20The%20Art%20of
%20Exploitation%20(2nd%20ed.%202008)%20-%20Erickson.pdf) In the digital era, it is
crucial for organizations to implement Confidentiality, Integrity, and Availability (CIA).
Failing even one of the points of the CIA triad will occur in the firms to pay lump sum of
money to hackers or anti-cyber-attack experts. This was the case of UBER, in 2017.
Practically, a hacker managed to access a private GitHub database stealing personal data of
57 million users and 600,000 drivers. UBER had to pay $100,000 to the hackers and $148
million to settle the investigation (https://cybernews.com/security/cybersecurity-in-the-
sharing-economy/). With the same importance, ethics in cybersecurity plays a relevant role.
In few words, it is certainly unethical for a firm to unprotect its users’ data. A clear example
is represented by the Facebook scandal. In 2018, data from millions of Facebook accounts
had been harvested and used by third party. On of these was Cambridge Analityca, which
used the retrieved data to affect people’s voting during the UK’s Brexit referendum campaign
(https://journals.sagepub.com/doi/pdf/10.1177/0040571X18805908). As result of the scandal,
Facebook shares and posts dropped by almost 20% in the same year and at the same time, the
firm must pay fine( https://www.theguardian.com/technology/2019/jun/20/facebook-usage-
collapsed-since-scandal-data-shows )

what they need to do what are the security treat

5.3 Apply how your chosen organisation is using / could use any of these new,
emerging business models (Sources: website of the organisation, other
websites; news; magazines; publications)
https://www.cleverism.com/company/asos/#:~:text=ASOS%20has%20a%20multi
%2Dsided,buy%20the%20latest%20fashions%20online

ASOS's multifaceted business strategy includes two interconnected consumer groups that are
both necessary for the company to function: Consumers: people looking to purchase the
newest trends online. Fashion companies are producers of clothing who seek customers. The
business strategy also has a niche market component because the company concentrates its
goods on customers in their twenties.
ASOS Marketplace
This is a section of the company website where shoppers are enabled to to buy from brands
that might not have and e-store or a physical shop in their neighbourhood. In fact, the firm
gathers approximately 900 boutiques, which sells in 40 countries worldwide. Its Revenue
Streams are mainly from the sale of the Product. In addition, the company generates revenues
from sales of its private label products, vendors usage fee, vendors commission and fees from
third party ads on ASOS website.
https://www.slideshare.net/SummayaSharif/ebusiness-model-of-asos-74171021

Transaction Revenues – The company generates revenues from the 20% commission fee it
charges vendors for each confirmed sale

Advertising Revenues – The company generates revenues from fees charged to third parties
for advertising on its website and in ASOS magazine

https://www.retail-week.com/fashion/asos-profits-plunge-following-period-of-significant-
volatility-and-disruption/7041633.article?authent=1

6. Evaluate the impact of new collaborative relationships and strategic alliances through
digital technology for your chosen organisation (approx. 700 words)
6.1. Definition of new collaborative relationship and definition of strategic
alliance/s (Sources: books; journal articles)
Alliance: make sure that the other company have the same resource as yours

6.2. Advantages and disadvantages of new collaborative relationships and strategic

alliances through digital technology (Source: books; journal articles)
2 company working together: Zara made in Bangladesh and working with the
Bangladesh production tea –
Disad.
Conflict of working tyle, nature , different leadership

Macdonald use several delivery partners

6.3. Application to your chosen organisation on how they use or could use new
collaborative relationships and strategic alliances through digital technology
(Source: organisation’s website, other websites, magazines, news, publications)

7. Discuss the impact of digital currency on digital businesses (approx. 700 words)
7.1. Discuss the importance digital currency on digital businesses (Sources: books,
journal articles) Currency that circulates online
Buying power decrease when currency drops the market
Advantages : easy to pay, do you think it cal help to allow crypto currency to pay on
the digital business chosen -
7.2. Critically discuss the impact of recent crash of digital currency on digital
businesses (Sources: organisations’ websites, other websites, news, magazines,
publications)

Conclusion (approx. 150 words)- summary of key points emerging from the evaluation
( no references )
References (min. 20 references, well balanced: academic (Sources: books and journal
articles from sources such as Ebsco, Emerald etc.) and non-academic sources (websites,
news, magazines, online publications) ) NOT included in wordcount

LENGTH
REQUIRED

3000 words (+-10%)

References
Wirtz, B., 2021. Digital Business and Electronic Commerce. Springer International Publishing, pp.4-
29.

Sillars, J., 2021. COVID-19: ASOS profits leap 275% as pandemic restrictions drive fashion sales online.
[online] Sky News. Available at: <https://news.sky.com/story/covid-19-asos-profits-leap-275-as-
pandemic-restrictions-drive-fashion-sales-online-12268971> [Accessed 10 September 2022].

Adam, C., 2020. How ASOS utilises AI to suggest your next purchase - Recommend. [online]
Recommend. Available at: <https://recommend.pro/how-asos-utilises-ai-to-suggest-your-next-
purchase/> [Accessed 16 September 2022].

Morabito, V., 2014. Trends and Challenges in Digital Business Innovation. Cham: Springer
International Publishing, pp.pp67-85 - pp165-185.

Laber, J., Thamma, R. and Kirby, E., 2020. The Impact of Warehouse Automation in Amazon’s Success.
[online] Ijiset.com. Available at: <https://ijiset.com/vol7/v7s8/IJISET_V7_I8_07.pdf> [Accessed 16
August 2022].

Pisani, J., 2019. New Nike Fit app wants to scan your foot for a better fitting pair of shoes. [online]
Eu.statesmanjournal.com. Available at:
<https://eu.statesmanjournal.com/story/money/business/2019/05/09/new-nike-fit-app-wants-
scan-your-foot-better-fit/1153672001/> [Accessed 16 August 2022].

Stirling, D., 2022. Ecommerce becomes latest target for cybercriminals - Raconteur. [online]
Raconteur. Available at: <https://www.raconteur.net/technology/cybersecurity/cybercriminals-
ecommerce-online-retail/> [Accessed 18 August 2022].

Hammond, R., 1996. Digital business :x. London: Hodder & Stoughton, pp.pp4-27 pp240-258.

Lynch, J., Marmostein, H. and Weigold, M., 1988. Choices from Sets Including Remembered Brands:
Use of Recalled Attributes and Prior Overall Evaluations. [online] Available at:
<https://www.researchgate.net/profile/John-Lynch-7/publication/24098555_Choices_from_Sets_I
ncluding_Remembered_Brands_Use_of_Recalled_Attributes_and_Prior_Overall_Evaluations/
links/00b4952bb23241a0e7000000/Choices-from-Sets-Including-Remembered-Brands-Use-of-
Recalled-Attributes-and-Prior-Overall-Evaluations.pdf> [Accessed 16 August 2022].

Asos.com., 2022a. ASOS Visual search | ASOS Customer Care. [online] Available at:
<https://www.asos.com/customer-care/product-stock/how-does-your-style-match-feature-
work/> [Accessed 28 August 2022].
https://www.rayhammond.com/wp-content/uploads/Digital-Business.pdf

Decision-making Behaviours toward Online Shopping

https://pdfs.semanticscholar.org/7692/a46f67792952a9ebf3014ce506cd1fa6a3f6.pdf

14 Major Companies That Accept Bitcoin

https://www.gobankingrates.com/money/business/major-companies-that-accept-bitcoin/

DIGITAL BUSINESS STRATEGY AND VALUE CREATION: FRAMING THE DYNAMIC CYCLE OF
CONTROL POINTS1

https://www.researchgate.net/profile/Margherita-Pagani/publication/
258863293_Digital_Business_Strategy_and_Value_Creation_Framing_the_Dynamic_Cycle_
of_Control_Points/links/59199cc24585159b1a4b8198/Digital-Business-Strategy-and-Value-
Creation-Framing-the-Dynamic-Cycle-of-Control-Points.pdf
The Role of E-
Commerce to Reduce
Costs
and its Impact on
Small & Medium-
Sized Companies
The Role of E-
Commerce to Reduce
Costs
and its Impact on
Small & Medium-
Sized Companies
https://www.researchgate.net/publication/330359333_The_Role_of_E-
Commerce_to_Reduce_Costs_and_its_Impact_on_Small_Medium-Sized_Companies

Top 5 digital transformation trends to watch in 2022

https://www.talentlocker.co.uk/blog/top-5-digital-transformation-trends-to-watch-in-2022

22 digital transformation trends to watch

https://www.mightybytes.com/blog/digital-business-trends/

72 Vital Digital Transformation Statistics: 2021/2022 Spending, Adoption, Analysis & Data

https://financesonline.com/digital-transformation-statistics/

Editor’s Comment: Agile Asos keeps customers coming back for more

https://www.drapersonline.com/insight/comment/editors-comment-agile-asos-keeps-
customers-coming-back-for-more

ASOS footprint

https://www.asosplc.com/this-is-asos/our-footprint/

ASOS Annual report 2021

https://www.annualreports.com/HostedData/AnnualReports/PDF/LSE_ASOS_2021.pdf

ASOS information CHAN%WAI%CHUN

ASOS[11447].pdf

The Role of E-
Commerce to Reduce
Costs
and its Impact on
Small & Medium-
Sized Companies

https://www.asosplc.com/this-is-asos/our-footprint/
According to the Spanish Digital Economy Association’s report, the sharing economy allows
people to consume, share, swap, or invest in resources and goods with or without payment,
and encourages the efficient, sustainable use of available, untapped assets and resources
(https://digital-strategy.ec.europa.eu/en/policies/desi)

https://www.slideshare.net/Miikka/melt-beta/13-Business_model_for_3rd_millennium