Digital Business in Global Environment

Digital Business in Global Environment

Digital Business in Global Environment

The concept of Digital business in global environment pertains to the utilisation of digital technology and strategic approaches for the purpose of conducting commercial activities on a worldwide level. The significance of this method has seen a notable rise in contemporary society, characterised by its interconnectedness and reliance on technology. Digital business in global environment has substantial prospects for organisational development and expansion. However, this paradigm shift also introduces a set of obstacles pertaining to adherence to legal frameworks, safeguarding against cyber threats, navigating cultural nuances, and contending with competitive forces. In order to achieve success in the current business environment, organisations must adeptly use digital technology, exhibit agility, and maintain a global outlook.


In this modern age, information technology has become a major part of business for operating and managing the infrastructures. Incorporating digital technologies in business conduction has made a great impact on business revenue since the benefits have been maximized and the rapid development is seen. The journey has been started from the time of internet spreading to all the spheres of life. Digital business can be therefore said as the business where technology is used for internal as well as external business operation (Coupey, 2016). This has enabled to make the business personalized. Online business allows an individual to get connected with the customers, build strong relationship with them, and experiences customer reactions through the process of taking orders up to delivery them. In digital marketing, cross selling and up selling techniques, e-commerce, CRM, email marketing etc. are required to run the business.

Read More:Managing Virtual Business

Key trends of managing digital business in global environment

Digital business has become a trend in global environment since the acceptance and popularity is increasing rapidly.

• The incorporation of ICT has enabled to introduce such a unique concept of digital business back in 1990.

• The digital business uses advanced technology and strong computer network. The proper use of advance technology has made the business to evolve in a more convenient way.

• The conversion of traditional business into digital business is due to competitive advantages of digital business (Lytras, 2013).

• Digital business has successfully drawn the attention of the customers, therefore, rapid growth. This growth is seen after 2000 and drastically expanded from 2010 to till date.

• This business enables the customers to search for their required products, therefore, increase the connection of customers and the business owner.

• Another advantage is that it reduces the cost of process development, labour cost, less time consuming and increases the full and proper utilization of resources (Omari, 2019).

Advantages and disadvantages of managing digital business in the global environment

Advantages of managing digital business

Digital Business is Easily Scalable

In digital business, scale up is possible because this business requires less amount of operational work, hence more time is found for performing the tasks. Therefore, productivity is increased. Also, the business does not have to pay extra for the cost of office room, employee wages, utilities, maintenances etc. So, fewer amounts are deducted from the profit (Franklin, 2014).

Global Talent Pool

In traditional business, it is difficult to accumulate the talented employee from various regions. But in digital business, the employee can be any individual across the world. Also, this type of business does not need extra cost for maintaining the employees (Omari, 2019).

Digital Business is Cost-Efficient

To run a business, the owner needs to invest a good amount of capital to meet the need of managing office team such as office utility bill, transportation cost, maintenance cost, and rent of office room. In digital business, the business can be run with less investment since there is no need to expense on office team. Rather the employees can work from their home in digital business. The main cost in this business is ICT tools cost. From this perspective digital business gives more advantages than traditional business.

Round The Clock Availability

This business can be available for 24×7. Employees do not have to work like office hours since this employment is flexible in timing. So, the service is provided for 24×7 and customers can connect to the business at any time according to their convenience.

Healthy Work-Life Balance

Flexible timing also enables the employees to balance their personal and professional life. The employees can get their things done in digital business and still have time to enjoy the personal life too (Zhanseitov, 2020).

Happier, More Productive Employees

Employees can work anytime whenever they want. There is no specific time bound for work. So, it enhances the productivity as the employees work when they feel energetic or more attentive. They will also be satisfied with their jobs while performing their tasks.

More Relevant Meetings

It is easier for digital business to arrange business meeting where employees can be connected from different regions of world. Sometimes, the employees can share their information, thoughts via email, group chats, and video calling etc. that can take places business meetings (Omari, 2019).

Disadvantages of managing digital business

Cost of Technology

To carry out the digital business, it requires a range of ICT mechanism and advance communication technologies. The purpose of utilizing the technologies is to communicate easily without any problems or errors. Since such advanced and ICT based technologies are very costly from buying them, installing them and maintaining them; it is difficult for some business owners to initiate or carry out with such expenses. A constant internet service is always required for maintaining digital business (Nydegger, 2015).

Social Isolation

Although, employees can connected with others through internet, but there is no physical interactions. Employees work from home which can make them isolated from the external world.

Conflicts, Lack of Trust & Collaboration

As there is lack of face-to-face interactions, there is a possibility of confliction, doubt, and disbelief from both customers and employees. The feeling of lack of trust sometimes causes no or less collaboration in work (Nydegger, 2015).


Importance of technology and it impacts on businesses

The importance of technology in maintaining the digital businesses are described below for a given company ASOS. ASOS is an online cosmetic and fashion retail shop in UK.


In digital business, timing is not an issue to carry out their activities. For ASOS, even if the working hour ends, the services are still going 24X7 for the customers via online. Using internet makes it easier to get connected with others at anytime. That boosts the productivity of the business and employees are engaged with their services without any limitation of time (Zhanseitov, 2020).


ASOS is a retail shop providing clothes and cosmetics particularly for young and adults. This retail business owns a website for their online activities. In that website, they provide their information, product information, new arrival, prices, offers etc. Through that website, customers can easily checkout the latest updates of ASOS and can communicate with them instantly. The customers can also order any purchase from online website. Also, the team members can get connected with others via social sites, instant messaging, video calls, and group chats etc. Therefore, communication is easier in digital business. .


Collaboration can be possible in performing tasks using technology. ASOS engages many employees for CRM activities using such technology from different locations. Also, they use cloud computing system for the purpose of data storage. Therefore, it makes easy for the employees to get information and share their documents through it hence teamwork established.


ASOS uses technology for becoming more productive in their operational works as well as marketing policies. The company uses CRM to increase the work process. They also use project management hub for running their operational activities smoothly and effectively. Online boost enable them to reach vastly towards other customers.


Compare and contrast Situation and SWOT analysis. Perform a situation analysis focusing on personalisation

Situation analysis is the method of analyzing the internal as well as external factors that cause an impact on the business operation. A SWOT analysis is a part of situation analysis that indicates the strengths, weakness, opportunities, and threats of the company. Situation and SWOT analysis methods are done to evaluate the factors related to the business. These factors help the authority to understand which areas are the performing well, which parts are needed more focus, what the potential threats are and where the company can get opportunities etc. So that it can help the organization in making decision.

ASOS is a UK based cosmetic and clothing retailer shop. The full form of ASOS is “As Seen on Screen”. Here, the company uses online marketing, CRM, up selling, cross selling, and e-commerce for running the business (Senker, 2014). The compare and contrast of situation and SWOT analysis for ASOS are given below-


Offering variety of fashionable products

The main motto of ASOS is to provide unique products which are fashionable as well as quality based. They are using e-commerce that has made the customers to choose from a variety of products from the website. Physical visiting of the products by the customers can be hectic and time consuming. Digital marketing has made the buying process easier for the customers.

Developing Brand image

ASOS is very much cautious on developing their brand image. To develop the image, at first the company has to target the customers and create a message that entitles the objectives of the company (Senker, 2014). ASOS uses e-mail marketing where they can contact with the customers; they invite their customers to visit website or page as the e-mail marketing is one of the strengths of the company.

Brilliant Influencer Marketing Initiative

Nowadays, social media have become a big place for marketing. Organizations put their advertisements and other marketing strategies to reach out more people. ASOS uses Instagram, Facebook, Pinterest, twitter etc. where they post their product’s information, any discount facilities, any type of customer or sales related information.

Analysing Customer Behaviour

To analyse the behaviour of customers, personalization help a lot. According to social media report, they can get the idea about the type of customers. Customers can ask questions; provide reviews, gives suggestions in online platform. Extracting those data, one can find the behaviour of customers (Senker, 2014).

Strong Supply Chain System

Online order delivery is an important part in online business. Customer satisfaction mostly depends on how strong the delivery system is. ASOS sends mail and text to the customers about their product arrival prior one hour of delivery. With the help of integrating technology, one can easily get the information about the arrival through mobile app.



ASOS is lack in innovation in technological side. They have not upgraded their technological policies, as a result, their sales is not growing with time. Their weakness in technological upgrade causes reducing customer satisfaction.


Lack in innovation causes lack on research and development. There has been no research on new products and new technology. ASOS have to put focus onto research and development.


Real Time Marketing

ASOS can use the real time data as an opportunity of real time marketing by utilizing social media, website, and blogs in the most effective way.

Changing Trends

With every season, a trend is seen in every type of products. When the company goes with the current trend, the popularity is increased which leads to increase in sales. ASOS can also pick the current trend as their products can show variety with every trend by using latest technology (Senker, 2014).


Information Security Threats

Since ASOS using their system for data entry and other official information, therefore, information must be protected from hacking. So security system should be increased.


Since ASOS has many competitors, the company should use more dynamic technological tools and methods to get the competitive advantages (Bekhter, 2020).


Evaluating emerging digital business models

It is a model that incorporates digital technologies to ensure the values created for the benefits of the customers. The purpose of such models is that digital technologies will provide digital solution to the customers (Davies, 2018). Customers can get more advantages in a convenient way eventually leads to revenue growth. Emerging digital business models can be evaluated through proper utilization of business model innovation methodologies and tools.

Digital business model

Bricks and Clicks

This business model includes selling the products in both online as well as offline. Companies create their stores physically where they can sell their products in both ways. For example, a chain of stores is an example of such model where the company opens the choice for both processes to take orders from customers. Also, companies can either deliver the products to the employee or allow customers to collect their products at the store (Davies, 2018).

Pure Play

This model emphasizes on ‘one line of business.’ This means the company only invest, buy and sell their products for particular customers. In this method, companies sell their products in either online or offline. For example, Starbucks uses this method as they sell only one product (Davies, 2018).


Challenges associated with information security threats and ethics

As the increasing advancement is seen in technological world to facilitate our works in more easily way, it also increases the chance of threats of information leakage. Therefore, information security has become an issue nowadays. Every company makes sure to make their security strong enough impossible to hack their data (Bekhter, 2020).


Information hacking means access to the network or computer system in an unauthorized way. This is a threat for the companies since all the confidential information are stored in that system. Sometimes, hackers can take full control over the computer system, security system or networks. With the advancement of digital business model, hacking techniques are also updated. Therefore, a strong security is required to safe the important data, files, and information from hacking.

Cyber Theft

Cyber theft is a process of stealing the personal information, identity, account information, or any financial data of any person or company from accessing into the computer. The cyber thief violates the privacy of others. It is therefore, important to monitor the account, provide information on safe website, to ensure either the website is safe or not.

Piracy at Intellectual property

Piracy means to steal, copy, regenerate, transmit, or sell the information, intellectual properties, or product of others without their consent or approval. Nowadays, many users are using images, writing, and features from other website in their names without their consent. This is considered as piracy.

Computer Virus and Worms

One of the biggest challenges in tech world is computer virus and worms. Computer virus or worm is a malicious program that can be able to regenerate by themselves in computer without the awareness of the users and destroys the personal data in computer. Therefore, it has become a threat for the digital business (Bekhter, 2020).


Importance of new collaborative relationships and strategic alliances through digital technology for implementing personalisation

Personalization is a process to ensure better and more reliable customer experience, which will enhance the brand value eventually business revenue growth (Jeffries, 2018). With personalization, as a strategy, companies can reach to every area and connect with the customers for expanding their business. In e-commerce marketing or email marketing, personalization is very important. Therefore, new collaborative relationship for increasing customer satisfaction and new strategic alliance for increasing brand value are essential for implementing personalization. Strategic alliance is a process of making agreement between two parties to increase their competitive benefits through helping each other (Jolly, 2014).

Sharing resources and expertise

Strategic alliance enables the company to ensure the personalization by sharing their resources, helping in providing good customer experiences. In digital technology, this makes easier for the companies to reach out their information to other customers, thus increasing the customer base and expanding the company.

New-market penetration

Market penetration is a strategy that enables the company to expand their market share through innovation. Strategic alliance in business especially digital business has enabled the companies to access and broaden their market share. With new market penetration, a number of opportunities can be found which can be advantageous for the digital business (Gomes, 2020).

Expanded Sales

Strategic alliance also helps the companies to expand their business through increasing their sales. In digital business, the companies can provide their information in the advertisement of the associated company, so that their product or service promotion can increase the sales.

Drive innovation

Innovation is requirement for strategic alliance by providing solution or facilitating the better customer experience through their services. Innovative ideas always count on driving strategic alliance especially in digital business (Gomes, 2020).


Compare and contrast digital business and e-commerce

Digital Business E-commerce
Digital business is one type of business where technology is used in every core sectors. For example, Uber, Netflix (Apte, 2018). E-commerce is a type of business that enables a customer to buy or sell products through using internet. Considered as a potential e-business (Apte, 2018).
Digital business includes transaction that is related to allied activities. E-commerce includes transaction related to money.   
Online technology is used in this business model for business development. Online technology is used to develop monetary transaction.
Mainly based on CRM, website etc. Based on website entirely.
The stakeholders in digital business are the customers, business partners, suppliers etc. The main stakeholders are the customers.


E-business is conducted through internet and/or extranet (Apte, 2018). E-commerce is conducted through internet only (Apte, 2018).


E-Commerce principles and application of those principles to digital business

-Principles of information security

Information security provides the security and protection of the data of website, network, and software etc. The principle of information security involves integrity and confidentiality of customer’s data. Network and systems are secured in such a way so that there is no access of third party. Data backup is also an important part in information security (Traver, 2014).

-Principle of commercialization

Commercialization is to introduce a new service or product for the purpose of selling and buying across the web. This principle is heavily used in digital business in order to increase the sale and customer numbers around the world.

-Principles of ethics

The digital ethics are such as trustworthy, accountability, confidentiality, honesty, fair in every action. These ethics are must be followed to run the digital business successful. Maintaining the principles of ethics will ensure the customer’s trust and reliability.

-Principles of customer relationship

Building a customer relationship is one of the most important principles for digital business. Since the business involves with providing service 24*7 to the customers therefore, the focus should be cultivating and nurturing the relationship with customers (Traver, 2014).


The concept of digital business is mainly to carry out the business tradition incorporating digital technologies. Nowadays, people are more leaning to online transaction at their convenience which has emphasized business to shift to the digital platforms. The rapid growth of digital revenue introduced a new way for the business owners to take this platform as competitive advantages. With passing time, people are getting more engaged with such e-commerce and other digital businesses. This has made easier for the people who want to run a business since it helps in rapid development of the business and opens for the door of getting new markets and a strong customer base (Brem, 2020). E-commerce, another form of such digital business, involves a number of activities including buying the services or products. The popularity of such platform has made the owners to continue their online business along with expanding their business through physical stores.


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Written by

Md. Shadequr Rahaman

Email: [email protected]

Digital Business in Global Environment

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