Foundations and Comparisons in Digital Business Unit 1 PDF

Foundations and Comparisons in Digital Business unit 1 1. Technologic Infastructure Cloud Computing: Flexibility, cost-efficiency, scalability, remote collaboration and real- time data access. Internet Connectivity: Reach customers globally, operate 24/7, conduct transactions and payment...

Foundations and Comparisons in Digital Business unit 1 1. Technologic Infastructure Cloud Computing: Flexibility, cost-efficiency, scalability, remote collaboration and real- time data access. Internet Connectivity: Reach customers globally, operate 24/7, conduct transactions and payments instantly, connect different parts of the business-supply chain, marketing, sales and customer service no matter where they are located. Big Data: Tailor services based on customer preferences. (personalization), leverage real- time data for better decision-making. (Data-Driven Decisions) Anticipate trends to optimize products, pricing, and marketing. (Trend Prediction) Identify and reduce operational waste. (Efficiency Improvement) Artifical Intelligence Applience: Use AI chatbots for automated support (Customer Service) Analyze data for tailored product suggestions (Personalized Recommendations). Automate supply chain logistics. (Inventory Management) Implement intelligent fraud detection and cybersecurity. (Enhanced Security) Mobile Technology: Shop via smartphone apps. (E-Commerce). Get information and services anytime, anywhere. (Instant Access). Use digital wallets. (Mobile Payments). Communicate through messaging apps, push notifications, and social media. (Engagement). 2. Digital Platforms and Ecosystems Understanding Digital Platforms: An online framework that allows different stakeholders- producers, consumers, third-party developers and service providers to interact. Such as amazon (e-commerce), Facebook (social media) and uber (ride sharing). Digital Ecosystems: The network of organizations, technologies, and platforms that interact and collaborate within a given market or industry. Network effects, multi-sided markets, openness and collaboration. 3. Data-driven decision making: This process involves using data analysis rather than intuition or assumptions. It includes collecting relevant data, applying analytical tools, and using insights to inform strategic choices, improve operations, and guide long-term planning. Key components of data-driven decision making: Data collection, data analysis, data visualization, real-time data and AI. Benefits of data-driven decision making: improved accuracy and efficiency, enhanced customer experiences, predictive insights, agility and responsiveness. Challenges in data-driven decision making: Data overload, data privacy and security, integration of data sources. Innovation in digital business: Creating new digital products (Product Innovation) Enhancing operations with technology (Process Innovation) Transforming value capture. (Business Model Innovation) The Role of Data: In the digital economy, data is essential for understanding customer behavior, optimizing operations, and guiding strategic decisions. Companies gather extensive data from websites, social media, and transactions. Types of Data: Demographics and behaviors (e.g., website engagement, product interests). (Customer Data) Purchases, payment methods, and order history. (Transactional Data) Metrics like conversion rates, churn rates, and customer lifetime value (CLV). (Performance Data) Turning Data into Insights: Companies utilize tools like Google Analytics, CRM systems, and machine learning to analyze data. KPIs are crucial for tracking performance and making informed decisions. Digital Business Models and Strategy: Recurring payments for ongoing access (e.g., Spotify, SaaS).(Subscription Models). Free basic services with premium features for a fee (e.g., LinkedIn, Dropbox). (Freemium Models). Platforms connecting buyers and sellers (e.g., Amazon, Airbnb).(Marketplace Models) Key Success Factors: Scalability, customer acquisition and retention, and network effects (e.g., Facebook’s value increases with more users).