Taiwo Omolade

INTRODUCTION The economic historian Weitzman posits that “the long-term growth of an advanced economy is dominated by the behavior of technological progress”. This does not apply solely for economies alone but certainly also for individual businesses as well. In the past decade, the business setup has grown to be digital with accelerated interconnectedness between products, services and processes. Across different sectors and industries, digital technologies (regarded as combinations of communication, information, connectivity, and computing technologies) are basically transforming products and services, business models, firm capabilities, business processes, and key interfirm relationships in extended business networks. Digital media has disrupted the typical business models, forcing businesses to re-evaluate the distinctiveness of the goods and services provided to the clients. Today, individuals and businesses are spending more cash online, this has shifted business models to digital channels and digital sources of revenue. The development of the information technology infrastructure has made the society more acquainted with digital goods and services, which has made various organizations start to seek new and competitive ways to create an edge over other industries in the digital space. This paper aims to offer an overview of Amazon's major developments, as well as the implications for digital business management and the benefits of digital technology. It also evaluates emerging digital business models as well as the impact of new collaborative relationships and strategic alliances facilitated by digital technology. Finally, it explores how Amazon may employ ecommerce principles. 1. OVERVIEW OF DIGITAL BUSINESS 1.1 DEFINITION OF DIGITAL BUSINESS/E-COMMERCE Overtime, numerous terms have been used to explain the kind of business that is transacted using digital or electronic means. The terms eCommerce, eBusiness, and to a lesser degree, digital business has been used when describing this concept. It is discovered that 89% of businesses have already adopted digital transformation while global spending on digital transformation technologies and services is estimated to have grown by 10% in 2020 despite the pandemic. (Kimberly Mlitz, Mar 31, 2021). The phrase "digital business" has as many different definitions as the term "business." Digital business, according to Lee and Whang (2001), is described as the use of Internet-based communications and computing to perform business operations, as well as a significant component in supply chain integration. Lee and Whang (2001) focused exclusively on the supply chain aspects of eBusiness, emphasizing the impact of eBusiness on supply chain integration. Digital business, on the other hand, was defined by (Fatt 2002) as the use of information technology to facilitate the buying and selling of services, products, and information over a standard-based network. In addition, IBM (2003) defined digital business as the benefits that can be realized by putting key business processes online. The key to becoming a digital business, according to IBM (2003), is to put all core business processes (especially those that require a dynamic and interactive flow of information) online in order to sell products, improve service, and cut costs.1.2 ADVANTAGES OF DIGITAL BUSINESS Products can be transported around the world fast and cheaply thanks to digital business. Evans and Wurster (2000) referred to this as the Internet's "reach." In recent years, customers have relied only on local merchants for products and services. Business operations have quickly gone global, with access to clients and suppliers all over the world, thanks to the emergence of digital enterprises. Amazon and other companies have profited from this trend. Physical items may be delivered virtually anywhere within hours of an order being placed by efficient internet firms. This allows digital enterprises to meet demand from all around the world that a local firm would not be able to meet. Today, Amazon makes a vast selection of items and services available to anybody in the world who has access to the internet thanks to its excellent use of the internet. For digital items such as music or software, distribution becomes almost immediate and free. Because of the global reach of digital business via the internet, many firms may benefit from collaborations all over the world without having to relocate (Okkonen, 2004). Virtual global teams make it easier to find and employ people, enhance flexibility and response, and leverage cultural variety (Walker, 2006). Amazon, for example, can reach out to potential employees from anywhere in the globe and also offers a work-from-home option, allowing employees to execute their portion of the job electronically from their different locations across the world. Business can be conducted 24-hours-a-day, seven-days-a-week. This allows rapid response to customer request. Digital businesses like Amazon conduct business round the clock every day of the week. This enables customers to enjoy a round the clock reach to the company through different communication platforms with confidence that any issue would be attended to rapidly. 1.3 OVERVIEW OF AMAZON Amazon is an international technology company which focuses on cloud computing, e-commerce, artificial intelligence and digital streaming. It started by selling books online, although it was not the first bookstore to sell online but its aim was to be the world’s biggest online store. This was achieved as it is well known for its disruption of the well-established commerce industry through its innovative technology. Amazon has been the cause of closure of some brick-and-mortar stores because they could not keep pace with the changing retail business. Producers around the world invent every day to meet consumer’s desire for lower prices, convenient services and better selection. Amazon guarantees a wide range of product and services through 1.7 million small and medium businesses all over the globe selling on Amazon.com and thereby offering more alternatives for customers. The on-demand supply of information technology resources via the Internet with pay-as-you-go pricing is referred to as cloud computing is also provided by Amazon. Consumers can use a cloud provider like AWS to obtain technological services such as computing power, databases and storage on an as-needed basis rather than purchasing, maintaining, and servicing physical data centers and servers. Products like Amazon Originals, Audible, Prime Video, Twitch, Prime Gaming, Amazon Music and other services by Amazon provide access to world-class entertainment. Customers may use Amazon's digital entertainment products to access the latest games and applications, watch or download movies, TV episodes, and music, and also access their own files from anywhere in the globe. Amazon benefitted enormously as a result of the pandemic as people preferred ordering goods online rather than risking their health to go to physical stores and the need for employees to work from home. This is evident in its total revenue as is revenue increased by 20% in 2019 and 37% in 2020. (Amazon financial statement 2020). Amazon is also dedicated to preserving the environment. Using a science-based approach that combines machine learning, lab testing, materials science, and manufacturing partnerships to scale sustainable change across the packaging supply chain, the company is working to reinvent and optimize its sustainable packaging options. They're also working with others to cut down on packaging waste for both consumers and the environment at large. Since 2015, Amazon has decreased outbound packing weight by more than 33% and removed almost 900,000 tons of packaging material, the equivalent of 1.6 billion shipping boxes (aboutamazon.com). 1.4 IMPLICATIONS FOR MANAGING DIGITAL BUSINESS As it is critical to have the appropriate people in place who have the necessary abilities to take on the dynamic changes needed by digital company, digital business raises the need for technological know-how capabilities and worker training; this will result in an increase in training costs. new job descriptions, organizational restructure and alignment, Process reform, and reviewed and amended policies will all be required to implement digital business. On a regular basis, business strategies should be re-evaluated and changed. This is owing to fast technological advancements, market pressures and unpredictably aggressive competitors. Customers' expectations have dramatically changed as a result of the Internet. Consumers demand convenience in the buying experience, as well as personalization, competitive pricing, and fast delivery. As a result, each firm must assess how it might use technology to satisfy these expectations. Digital businesses will indeed need to invest more on innovation, such as research and development, in order to provide high-quality services that meet or exceed customers' expectations. Digital firms face problems, expenses, and dangers as a result of the adoption of digital technology. For example, unequal access to low-cost digital technologies, which are the foundations of digital firms like Amazon, can lead to unequal distribution of their advantages. Individuals with low literacy and little education, people in remote regions, and humans with restricted rights or competence to connect to the internet may be excluded from these services. 2. NEW AND EMERGING DIGITAL BUSINESS MODEL New prospects for business model innovation have emerged as a result of recent developments in digital technology, which include communication, information, connectivity and computation (Bharadwaj et al., 2013). A variety of innovative company models have risen as a result of the digital economy. Although many of these models have precedents in conventional business, contemporary developments in ICT have enabled various forms of business to be conducted on a far larger scale and over greater distances than before. By defining how value is produced, delivered, and captured, the business model idea is a valuable lens for better understanding a corporation's business logic (Osterwalder and Pigneur, 2010). If digital technologies trigger significant changes in a corporation’s value dimensions, a company model might be classed as digital (Veit et al., 2014). The following are some of the most prevalent business models utilized in the digital world: B2C (Business-to-Customer) B2C transactions are those that take place between a business and its clients. This is the component of e-commerce on the Internet where businesses sell items or provide services to customers. B2C business strategies have played a significant part in the growth of ecommerce, as clients receive significant discounts when purchasing items and services online. In the B2C model buyers describe their preferences while sellers identify their items and selling prices, the ecommerce company then use different approaches (such as artificial intelligence) to obtain the appropriate match between buyer and seller and to recommend items for consumers to purchase. B2B (Business-to-Business) Customers and companies are often seen to be diametrically opposed, with the customer serving as the consumer and the business serving as the supplier. The B2B Business model challenges these preconceptions by introducing us to a notion in which companies serve as customers as well. B2B refers to a business model in which products and services are exchanged between two or more companies. In these sorts of arrangements, the consumer is typically not involved and only comes into play afterwards. The great majority of e-commerce transactions involve a company selling items or services to another company (OECD, 2011). This can involve online versions of conventional transactions, such as when a wholesaler buys shipments of products online and then sells them to customers through retail stores. It can also involve the supply of services to assist other businesses, such as warehousing, transportation, and distribution, among other things. C2C (Customer-to-Customer) Customer to customer (C2C) is a business model whereby customers can trade with each other, typically in an online environment. Two implementations of C2C markets are auctions and classified advertisements. C2C marketing has soared in popularity with the arrival of the Internet and companies such as Amazon. The purpose of consumer-to-consumer eCommerce is to enable one party to sell directly to buyers without spending a considerable amount of money building and maintaining an online storefront. This allows the seller to keep more of their profits because they aren’t expending the capital to create infrastructure associated with a traditional business. Amazon has employed the B2C, B2B and C2C model in form of creating a marketplace where various business and individuals can come to place their products for sale to consumers (which also can be business). The platform shows the sellers list who sells variety of products and then get customers browsing through those products. After matching seller and customers it creates appealing discounts after that consumer to shops for the desired products and then the seller ships the product to customer. It has differentiated itself from competitors such as eBay and other online retailers by offering its retail platform to third party sellers and merchants while offering integrated reviews and referrals to capture more customers. Governments, businesses, and consumers in most regions of the world are increasingly relying on electronic transactions. While an increasing dependence on digital business models provides considerable potential, a lack of security and integrity in such transactions remains a key concern. Online fraud and data breaches are becoming more prevalent, necessitating appropriate legal and regulatory measures in order to enhance local and cross-border trade. Security measures should be included in every e-commerce system, according to Ladan [7], since they are one of the most essential aspects for e-commerce. At all levels, including business applications, front-end clients and servers, corporate internal networks and data and information exchanges, Amazon endeavor to implement stringent security. Firewalls are been installed and configured. Furthermore, network isolation, robust data, and intrusion detection system (IDS) installation put in place to improve security. These models also have ethical problems such as business image theft and selling of counterfeit products which might lead to decline in trust between buyers and sellers. Some parties on digital business platforms, such as Amazon, have a limited budget for logo creation and may duplicate a logo from another firm. Additionally, small internet retailers may offer counterfeit goods. Given the ethical concerns with these business models, e-commerce companies have implemented strict restrictions to address them. Amazon has systems in place to ensure that only reputable vendors are allowed to sell on their site. The business could alternatively use the Escrow model, which is a financial and legal arrangement that protects both buyers and sellers in a transaction. An independent third party holds payment until everyone in the transaction meets their duties for a fee. 3. IMPACT OF NEW COLLABORATIVE RELATIONSHIP AND STRATEGIC ALLIANCE THROUGH DIGITAL TECHNOLOGY Through digital technology, strategic partnerships and collaborative connections may be a highly beneficial method to achieve E-Business transformation. Purposive strategic connections between sovereign businesses that share comparable ambitions, strive for mutual advantages, and recognize a high level of mutual dependency might be described as strategic alliances (Mohr and Spekman, 1994). An alliance, according to Gulati (1995), is any independently created interfirm relationship including trading, sharing, or co-development. Strategic alliances have grown in importance as a type of corporate competitiveness, prompting a slew of academic research. (Hagedoorn, 1993; Harrigan, 1985, 1995; Kogut, 1988; Osborn and Baughn, 1990) A firm may form a strategic partnership to enter a new market, strengthen its product line, or gain a competitive advantage. The relationship allows two companies to collaborate on a common aim that benefits both. Strategic partnerships may also aid partners in increasing productive capacity, extending the supply chain or establishing a distribution system. Strategic partnerships are not without their drawbacks. Strategic partnerships need partners sharing resources and earnings, as well as companies sharing expertise and capabilities. When it comes to trade secrets, sharing information and talents might be difficult. Agreements can be signed to safeguard trade secrets, but they are only as good as the parties' willingness to follow them or the willingness of the courts to enforce them. Many shops are trying to keep up with Amazon's market disruption in today's changing world of retail. Many small and big companies have partnered with Amazon in a variety of innovative ways in order to overcome the geographical barrier that physical stores face, allowing them to access a wider audience through the Amazon platform. “Amazon and Kohl's have a shared interest in providing excellent customer service, and this unique collaboration combines Kohl's strong countrywide retail base and omnichannel capabilities with Amazon's reach and customer loyalty,” according to information on Amazon's website. Amazon had been pondering creating an online marketplace for lending to its merchants for quite some time. Though Amazon has made several attempts into the financial services industry, the 2020 cooperation with Goldman Sachs may be the most fascinating and disruptive. Customers will benefit from this partnership with Amazon, which will provide lines of credit of up to $1 million to Amazon merchants. Source: Ruchin Kansal and Rajbeer Kaur(2019) 4. E-COMMERCE PRINCIPLES Ecommerce, often known as electronic commerce or online commerce, is the purchasing and selling of products and services through the internet, as well as the financial and data transfers required to complete these transactions. Ecommerce is frequently used to refer to the online sale of real goods, but it may also apply to any type of economic transaction that is made possible by the internet. Since the objective of e-commerce principles is to define a set of activities that digital businesses should engage in to facilitate consumer engagement and decision-making, this paper considers three fundamental principles: Usability, Information quality and Service quality. Usability covers ease of use, user-friendliness, and simplicity of the eCommerce platform. The firm ought to make its website easy to use and operate (Lee and Lee (2003) Information quality covers the relevancy, accuracy, completeness, usefulness and sufficiency of information displayed on the firms’ various platforms (Jaiswal et al. 2010) Service quality encompasses how a digital business is able to respond swiftly to customer needs, to assist users in addressing problems, and to provide dependable and reputable services (Lee and Kozar 2006). Amazon has implemented these three concepts in its ecommerce operations. They provide roundthe-clock customer service to assist customers with any issues as well as a quick delivery system that allows customers to receive their orders within a few hours of placing their orders. Additionally, Amazon provides adequate and relevant information about the goods and services that are offered for sale on their simple and user-friendly platforms. CONCLUSION Recent advancements in information technology have resulted in widespread Internet use among the general population in developed and developing nations, to the point that the Internet has become an indispensable tool for meeting the needs of daily living. Many individuals now have Internet access because to the ever-increasing global expansion of technology, particularly in IT. Because of the widespread availability of the Internet, e-commerce trading is becoming increasingly important and digital businesses like Amazon has been able to leverage on this and use it as an edge. The primary goal of this study is to give an overview of Amazon's major trends. It also assesses developing digital business models as well as the effect of new collaborative connections and strategic alliances made possible by digital technology. Amazon has become a household name in the eCommerce, it has a significant advantage over smaller competitors. For years to come, the company's capacity to provide products and services online cannot be questioned. Due to its sophisticated business model, the understanding of its consumers, and the length of its customer connections, Amazon has effectively expanded and become extremely lucrative.