What is digital business example?

The word "digital" has been used since the early 1900s but it was only around the beginning of this century that we started to hear about how technology could create new ways to run our lives. The first use of the term referred to something like computers or telegraph machines. However, over time, the meaning of the word changed from being purely technological to also referring to information. For example, your phone is now a device which uses technology but you can still call someone by their name rather than just their number.

Today's world is more connected than ever before thanks to technology so if you want to find out what kind of company you're working for then look at its digital strategy. This will tell you whether they have embraced all aspects of modern life through their IT systems. If you work in one yourself, why don't you take a look at the list below and see if there are any similarities between them?

What is an example of a digital business?

A digital business would be a company whose core operations revolve around online technologies such as mobile applications, websites, social media marketing, etc. It may even include elements of artificial intelligence (AI) into its processes. When you think about it, most traditional industries already incorporate some form of digitization into their practices. Think about retailing where customers shop on smartphones instead of going to physical stores. In fact, many people prefer shopping online because it gives them access to more products and services without having to leave home. So when you consider the way these companies operate today, you'll probably agree that they do indeed fit the definition of a digital business.

It might surprise you to learn that digital business does not necessarily mean e-commerce. E-commerce refers to buying things via the internet whereas a digital business covers everything else including customer service, supply chain management, product development and much more. These days, the boundaries between traditional and digital business models are blurring together. For instance, a company called Zappos became famous after selling shoes online while Amazon sells books, music CDs, DVDs and other items too. And although both companies sell goods directly to consumers, neither of them would class themselves as a pure digital business. Instead, they'd say that they offer e-commerce combined with a range of other activities.

What is digital business?

If you've read up until here, you must have noticed that I haven't mentioned anything about digital technology itself yet! That's because the two concepts aren't synonymous. While digital technology is key to running a successful digital business, not every type of digital business requires advanced tech tools. Some older organizations are completely reliant on traditional methods of doing business and wouldn't dream of changing their approach simply because they lack the skills required to manage their data effectively.

However, these companies often benefit greatly from embracing digital technologies anyway because they provide numerous benefits which help them compete better against competitors who use more sophisticated techniques. Let's explore four of those benefits and discover exactly what makes a digital business unique.

What are the 4 main areas of digital transformation?

1. Customer engagement - Digital businesses focus heavily on delivering great experiences to customers. They aim to make sure that users feel happy enough to keep coming back for more. Therefore, they need to know what works best and deliver content accordingly. As well as providing personalized offers based on user behavior, they also try to improve customer retention rates by offering rewards for positive reviews, feedback and recommendations.

2. Data analytics – There are plenty of companies nowadays which specialize in collecting massive amounts of data to feed into AI programs. By analyzing this data, they can gain insights into consumer preferences and behaviors which allows them to develop more effective strategies for future campaigns. With this knowledge, they can change their tactics to attract customers' attention and boost sales.

3. Product innovation - One of the biggest challenges facing almost every industry right now is keeping pace with rapid changes in consumer tastes. Companies therefore need to constantly stay ahead of trends by developing innovative products which appeal to customers' needs. To achieve this, they rely on cutting edge research and testing facilities to test ideas quickly and efficiently. Once they identify promising products, they invest significant resources in making them available to market.

4. Operational efficiency - Many businesses struggle to maintain high levels of productivity due to outdated software and inefficient staff training procedures. Fortunately, digital solutions allow them to streamline processes and get more done with less effort. Using cloud computing platforms and virtualized infrastructure, businesses can reduce costs and increase operational efficiencies across multiple departments.

In summary, a digital business is one which embraces digital technologies in order to enhance existing offerings as well as introduce new ones. Although each organization operates differently depending on its specific circumstances, there are certain commonalities among them regardless of size. For starters, they all follow similar principles such as creating engaging interactions with customers, improving product quality and enhancing operational efficiency. What matters most though is that they understand how important digital technologies are to sustaining success over the long run.

So next time you meet someone who claims he runs a digital business, ask him what his digital strategy looks like. You might come away surprised to realize that they actually own a brick & mortar store. Or maybe you'll spot signs of an old school mentality behind the scenes. Either way, it won't matter because ultimately, no two companies are alike.

For further reading, check out our article entitled How to Identify Your Company's Digital Strategy. We discuss several questions you can ask your boss to figure out whether your company is taking full advantage of the opportunities offered by the Internet.

The Digital Business Example

A few years ago, I spoke at an event on digital business in London which had over 400 people attending. One of the questions asked during my presentation was what exactly is digital business? To give an answer to this question, let's think back to when the Internet hit the mainstream.

In 1994, Netscape Navigator 1.0 was released. This marked the start of the internet revolution as most users were able to access websites via dial up connections.

By 1998, 98% of websites made money through advertising so there was no need for search engines.

At the end of 1999, Amazon launched its website.

Around 2001, Google launched AdSense.

In 2004, Facebook was founded.

In 2008, Apple introduced iTunes and the App Store.

This list shows that over 20 years after the introduction of the World Wide Web, almost all businesses have adopted some form of online presence whether they're selling physical products (Amazon), providing services (Google) or both (Facebook). Most of these organisations are now part of the 'Digital Economy'.

"Digital economy" refers to businesses that provide goods or services digitally such as software development, web design etc. These types of activities will always remain important because they require specialist skills and expertise.

However, many other industries - including travel, finance, healthcare, education, retail, media and telecommunications - have moved into the category of "digitally enabled". In each case, digitisation involves moving away from traditional models of interaction and adopting different technologies.

The world around us has changed a lot since the last decade or so. In fact, we have seen some major changes over the past few years alone. The way businesses operate today is completely different from how it was done even five years ago. This is because there’s been an evolution of new technologies that have made our lives easier and more convenient than ever before. One such important aspect is the transformation of traditional brick and mortar stores into online ones through the use of mobile applications.

In this article, you will learn about digital business models, which include all online activities conducted by businesses, as well as the reasons why they exist. You can also find out about the various types of digital services used by businesses nowadays. So without further ado, let's get started!

What are examples of digital services?

There are several ways in which people conduct transactions these days. Most people prefer going to physical locations like malls or shopping centers where they purchase goods and products. But now, almost everything can be purchased online. For instance, you can buy groceries at your local grocery store or order food delivery via apps on your smartphone. Even clothing brands offer their own websites where customers can shop and browse the selection available.

Online retailing makes sense especially if you live somewhere far away from a big city and cannot easily travel there every week. It gives people access to products they would otherwise never see in person and allows them to save money while doing so. Online retailers make sure that the prices offered are always fair and reasonable compared to those charged by competitors who sell similar items. They do not need to worry much about inventory issues because they only supply limited quantities of certain items.

Another type of service that exists in the digital space is cloud computing. Cloud providers allow users to rent virtual resources instead of buying hardware and software outright. These systems provide easy scalability, high availability, and flexibility. As long as someone has internet connectivity, he/she can access any number of computers remotely. Companies often opt for cloud computing solutions when they require large amounts of data storage or processing power.

Other examples of digital services include digital marketing campaigns, social media platforms, cloud hosting, video streaming, and many others. Digital services play a vital role in modern day life. Every single transaction that occurs involves one or more forms of digital services. Nowadays, almost everyone relies heavily on digital information to complete most tasks.

What are different types of digital services?

To understand the concept of digital services better, here are three main categories:

1) Software Services (SaaSS):

This refers to a wide range of computer programs and applications that run on top of operating system software. Examples of SaaSS include email clients, antivirus suites, word processors, accounting packages, etc.

2) Platform Services (PaaS):

These refer to the infrastructure components required to host web servers and databases. PaaS includes things like application programming interfaces (APIs), database engines, load balancers, cache servers, firewalls, and other networking tools.

3) Infrastructure Services (IaaS):

An IaaS provider provides its customers with the entire set of IT equipment needed to support specific workloads. An IaaS solution consists of basic hardware elements including CPUs, memory, hard drives, network cards, routers, switches, and security devices. A customer pays for the time spent running his/her application(s).

What are digital services?

As explained above, digital services encompass numerous aspects of everyday life ranging from online banking, social media accounts, and electronic payment methods to website design, cloud hosting, and search engine optimization. There may be no end to the list of things that fall under the umbrella term “digital services”. However, regardless of the category, each form of digital service comes with unique benefits that distinguish it from the rest. Let’s take a look below.

Advantages of digital services

Here are four key advantages associated with digital services:

1) Convenience:

When you go to a mall or department store, you usually spend hours browsing shelves looking for something interesting to buy. When it’s time to pay for your purchases, you might feel awkward asking the cashier to accept credit card payments. With digital services, however, everything happens instantly and automatically. All you have to do is log onto your account and enter billing details. Afterward, you don't need to wait until next month to receive your bill.

2) Efficiency:

Since digital services rely mostly on technology, they tend to be faster and efficient than conventional alternatives. If you want to send emails to thousands of recipients, you could waste lots of time manually filling up contact lists. On the contrary, you just need to click a button and within seconds hundreds of emails are sent simultaneously.

3) Cost savings:

You probably know that it costs less to produce a product digitally rather than physically. That’s true whether you're producing t-shirts or televisions. And thanks to technology advancements, it gets cheaper every year. Furthermore, some industries like manufacturing are moving towards automation, thus requiring fewer workers overall. Thus, digital services enable companies to become more productive while reducing labor expenses.

4) Scalability:

If you are planning to launch a new company or expand your existing operations, you must consider hiring additional staff members. Doing so requires investing significant sums of capital. Fortunately, digital services enable businesses to scale up quickly and efficiently. They help companies grow rapidly without having to invest tons of money upfront.

What are the uses of digital services?

While there are countless possibilities regarding the use of digital services, here are two common scenarios:

1) Ecommerce:

Ecommerce encompasses all online interactions between consumers and merchants. It covers both direct sales and indirect sales, and can occur via phone calls, text messages, faxes, emails, chat sessions, instant messaging, or social networks. Many shoppers choose to visit ecommerce sites whenever possible because they believe they'll always find what they're searching for.

2) Social Media Marketing:

Social media marketing entails posting content on relevant channels in hopes of increasing visibility among potential buyers. This method works best when combined with SEO techniques like keyword research, backlinks, site speed optimization, etc. To succeed, you should carefully select target audiences based on demographics, location, interests, hobbies, and behaviors. Your goal is to gain exposure and generate traffic so that prospective customers land on your page and eventually convert to paying customers.

Conclusion

Every industry needs innovative approaches to stay ahead of competition. Since digital services are constantly evolving, the future of commerce looks bright. While people still enjoy visiting brick and mortar establishments, digital services have taken over virtually every sphere of activity. We hope you found this article informative! Have questions about anything mentioned above? Leave a comment below!

The term "digital" has been used often over the past few decades but it's no longer a buzzword. The world we live in today has transformed into one that embraces new technologies such as artificial intelligence (AI) and machine learning which will make our lives easier. These advanced technologies have become more accessible than ever before thanks to the rapid increase in computing power and storage capacity.

With this increased access comes an opportunity to change how businesses operate. Digital transformation allows businesses to stay ahead of their competitors by providing better customer services, reducing operational costs, increasing revenue growth, etc. It also helps them improve employee productivity and efficiency and ultimately reduce human resource  costs.

This article aims at defining the concept of digital business so that readers understand its meaning and uses when they encounter the word in everyday conversations or read about it online. We'll explore various definitions of digital business and explain why it is becoming increasingly popular among entrepreneurs and small businesses who want to succeed through innovation.

What do you mean digital business?

A digital business model is any company whose core activities revolve around digitization. There are three main areas where a digital business operates from: product development, marketing & sales, and operations. A digital business may use all these areas simultaneously depending on the needs of the organization. For instance, if your company sells software products, then you might focus primarily on developing those products while focusing less on advertising and selling them.

In addition to being able to develop, sell, and market digitally, a digital business must also know how to manage its resources efficiently. This includes having enough employees, adequate physical infrastructure, and other necessary tools needed to fulfill the objectives of the business. All of these factors contribute towards the overall success of a business.

What can you do with digital business?

There are many ways to incorporate digital technologies into your daily routine. You could start by automating manual processes such as emailing customers, scheduling appointments, or sending invoices. If you're already doing some of these things manually, consider creating automated workflows instead. Such automation frees up time for your team members to spend on more strategic tasks like improving your website design, analyzing data, and building relationships with potential clients.

You can also leverage digital technologies to help solve problems faced by your business. For instance, if your company deals with transportation logistics, you might turn to AI to predict passenger demand based on weather conditions, traffic patterns, and current events. By making accurate predictions, you can adjust your inventory levels accordingly and prevent stockouts. Similarly, you can use IoT sensors to detect faults in production lines and send alerts to workers immediately. With proper response times, you can minimize downtime and keep your business running smoothly.

Another way to utilize digital technologies within your business is to automate repetitive tasks. For example, if you run a restaurant, you could create a mobile app that takes orders, accepts payment, delivers food items to customers, and sends receipts directly to their phones. Doing away with paper checkbooks would save you money and free up space for additional tables. In fact, there are even apps that take care of everything from ordering to paying -- just select the type of restaurant you own and the features you need.

If you don't feel confident performing certain tasks yourself, you can outsource them to freelancers or contractors. However, before hiring someone else, ensure that you've fully vetted his/her skillset first. When looking for talent, look for people who display enthusiasm and passion for their field. They must also provide references from previous employers who were satisfied with their performance.

Finally, you can build a strong brand identity with the help of web designing, social media marketing, SEO, content creation, and copywriting. Your brand image will depend largely on the quality of your logo, website, blog posts, videos, tweets, ad campaigns, emails, etc., which you can only achieve via digital platforms.

What are the types of digital business?

While most organizations embrace digital technologies, there are still others that prefer to stick with traditional methods. According to research conducted by Gartner Inc., there are four different categories of digital businesses: B2B, B2C, C2C, and B2G. Here I’ll briefly describe each category below.

1. B2B

Business-to-business commerce refers to transactions between two parties involved in buying and selling goods and services. Examples include retail stores, insurance brokers, manufacturers, financial institutions, etc. Most large corporations follow this approach because it requires fewer personnel compared to the alternatives.

2. B2C

Business-to-consumer commerce involves transactions between consumers and sellers. Examples include online retailers, service providers, restaurants, grocery chains, etc. Since more consumers are accessing information via smartphones and tablets nowadays, this sector thrives especially during major holidays.

3. C2C

Consumer-to-consumer commerce refers to transactions between individuals. Examples include peer-to-peer lending, crowdfunding, crowd funding, fundraising, and direct selling. While consumer-to-consumer commerce can be profitable, it usually lacks transparency due to lack of regulation.

4. B2G

Business-to-government commerce is similar to business-to-consumer commerce except that the former occurs between a business entity and government agencies. Some examples involve tax collection, procurement, contract bidding, etc.

Why is digital business important?

As mentioned earlier, digital technologies allow businesses to streamline their operations and perform functions faster. One study found that nearly 75% of executives believe that digital technologies enable them to outperform their competition significantly. Another 70% say that incorporating innovations like cloud computing, analytics, robotics, Internet of Things, augmented reality, virtual reality, blockchain, big data, internet of things, etc. will lead to higher profits for their businesses.

Although digital transformation seems daunting, adopting these changes won't require significant capital investments since the majority of benefits come from using existing resources rather than purchasing expensive equipment. Also, implementing these techniques doesn't necessarily entail replacing entire departments. Instead, you can implement them gradually by integrating new systems and applications into your existing workflow.

For example, let's assume that you plan to move your accounting department onto Microsoft Azure. To begin with, you'll need to install the appropriate software, set up servers, configure security settings, train staff, etc. Once that's done, you can add new modules such as payroll processing, CRM, project tracking, etc. Over time, you can continue adding new apps until you reach your desired level of customization.

Since digital transformation is both exciting and challenging, here are five tips that will help you get started:

1. Understand the scope of your digital goals. Before diving headfirst into the process, determine exactly what your end goal is. Is it just to update your website? Or do you intend to integrate digital technologies across multiple departments? Are you trying to expand your client base? Start off slowly and identify key milestones along the way.

2. Define your target audience. Who is going to benefit from your efforts? What are they likely to respond best to? How much value does your product offer relative to price? Do you expect your users to pay for premium versions versus free ones? Keep these questions in mind throughout the process.

3. Choose the right platform. Selecting the right tool depends on several factors including budget, skill sets, and requirements. Although you can try DIY solutions, it's highly recommended to hire experts to handle complex projects.

4. Plan for failure. No matter how well prepared you are, there's always going to be obstacles along the way. Think of possible scenarios beforehand and address them proactively. This way, you can avoid wasting precious time and energy.

5. Communicate effectively. Make sure everyone understands what they need to accomplish. Explain the purpose behind your actions and encourage feedback. As long as everyone agrees on the direction, the journey will go smoother.

To learn more about digital transformation, watch my video course titled Building Your Digital Dream Team.