It’s been a great journey of writing blogs and reading other’s.
The developed economies of the world are making significant strides in terms of self-driving cars. The practical implications of such developments can have their impacts on the taxi and rental car department too (Sousa & Rocha, 2019). Companies like Uber and other rental car services need to adapt to the changing automotive industry and its integrations within their business model can have significant outcomes for Uber-like businesses too. Digital technology and its optimization have had significant impacts on the world and the world of academics is benefiting from the relative technological developments too. The students and teachers are equally benefiting from digital technology in this regard. In the modern environment and challenges like the current Corona pandemic, the importance of digital teaching and learning techniques becomes critically important and more enhanced towards the educational and academic models. In terms of transfer wise and its business model, the importance of the business model is enhanced in terms of the modern business environment and foreign workers away from their homes. The students in the international arena can significantly benefit from the practical implications of such digital currency and forex solutions. Hello Fresh is the largest meal-kit provider in the US and has a significant basis in the Canadian and other American markets too. The importance of such solutions in the modern and fast-paced academic, business and personal lives of people is enhanced (Flyyerbom et al. 2019). The learning from these articles incorporate digital technology and its application within the business models of businesses in order to gain significant competitive advantages in the highly competitive and diluted industries. The role of digital technology in innovation and relative competitive advantages has become critically important too.
I aspire to significantly invest significant time in professional development in terms of the incorporation of significant professional skills into my professional development. The individual-level competitive advantage depends on such competitive technological skills. I have learned from the writing of my own work and commenting on other’s work that the importance of digital technology has become significantly critical in the modern business departments. The innovation and competitive advantage in the modern business environment are totally dependent on digital technologies and their optimisations in varied manners (Nezdovminoy et al. 2019). Therefore, for further professional education, I would give great consideration to the digital technology-related course works to further develop on the learnings that I have gained from the current module.
Flyverbom, M., Deibert, R., & Matten, D. (2019). The governance of digital technology, big data, and the internet: new roles and responsibilities for business. Business & Society, 58(1), 3-19.
Nezdoyminov, S., Bedradina, G., & Ivanov, A. (2019). Digital technology in the management of quality service in tourism business. International Journal of Engineering and Advanced Technology, 9(1), 1865-1869.
Sousa, M. J., & Rocha, Á. (2019). Skills for disruptive digital business. Journal of Business Research, 94, 257-263.
In this era of technological advancement, organizations are growing at a rapid pace. People around the globe have easy internet access which has sky-rocket the revenues of organizations operating with the support of the digital business model. Amazon is a prime example of how the digital business model enables the organization to grow in a limited time (Dixon et al., 2017). There is a strong relationship between the needs of society and updated technology. The demands of society become connected to the available technology, and organizations that focus on technology grow very fast. To understand the growth and how technology adoption increases organizations success factors, I will be evaluating how the business model of Amazon has contributed to its success.
How digital business model contributed to Amazon’s success?
In the world of technology and the internet, Amazon has earned substantial revenues. Amazon’s digital business model is very effective as it has enabled the organization to earn huge revenue streams. The business model of Amazon revolves around selling different commodities directly to the buyer (Amazon, 2019). There are many sellers that are registered on Amazon, and Amazon links these sellers to the huge amount of people in the world. On every sale, Amazon deducts commission and earn revenues. Amazon has also started to offer subscription services where people can enjoy movies and music with huge discounts on shipping. It also facilitates users to get the same day or 1-day delivery, depending on the location. The revenues of Amazon show how effective an organization’s business model is as the revenues of the organization revolve around more than 230 billion (Macrotrends, 2019). The organization’s business model has contributed a lot to organizational growth as it allowed the organization to communicate with people around the globe.
Artificial intelligence and growth of Amazon
The use of artificial intelligence is the dominating factor that has boosted up Amazon’s growth. The requirements of customers have been changed heavily, and people demand diversified products. Since the revenues of the organization and customer demands are growing, the problems are also growing for Amazon. The customer base of the organization revolves around more than 90 billion, which depicts the huge organizational growth (Statista, 2019). To deal with customer queries, the organization relies heavily on the use of artificial intelligence. Artificial intelligence can be described as the use of machines to resolve problems. Amazon has used the concept of artificial intelligence to deal with customer queries. Amazon uses artificial intelligence-based chatbots that deal with the frequently reported complaints. The use of artificial intelligence has enabled the organization to gain maximum revenues and contributes heavily to the organization’s growth (Brandtzaeg and Følstad, 2018). Artificial intelligence is further expected to be changed heavily as the researchers are focusing on reducing waste management and pollution reduction. Hence, it is safe to say that artificial intelligence has enabled Amazon to deal with a lot of customers and to earn heavy revenues.
Figure 1: Amazon’s Revenues
Source: (Statista, 2019)
In the debate of Amazon’s business model and how the use of digital orientation has enabled the organization to gain huge revenues, the use of machine learning holds high importance. Amazon’s research and development model is pretty strong, and it allows the organization to track customer purchase behavior. By using artificial intelligence to a high level, the organization has earned immense revenues. The business model of the organization also puts a huge emphasis on digital marketing. Ai based R&D system has enabled the organization to track consumer behavior and market needs (Herbrich, 2017). Afterward, the strategies of the organizations are pointed out towards the high customer achievement. The world is changing heavily, and researchers around the globe are focusing heavily on shaping a new environment for customers. According to Professor Andi of the University of Exeter, different strategies are being planned to provide enhanced customer experience to the tourists (Exeter Cathedral, 2019). Different strategies, including eye-tracking and text analysis, are being planned to provide enhanced customer experience. Amazon can use the same strategies. Although the organization is emphasizing the use of artificial intelligence to gain maximum profits and to provide 100% optimized content to the customers, the latest technologies, including eye-tracking and text analysis, can be used to grow heavily.
Is Amazon’s model successful?
After stating the different points of view, it has been identified that Amazon’s business model has contributed a lot to the organization’s success. The organization focuses on the use of artificial intelligence and excessive marketing strategies to gain huge revenues. As the organization’s revenue revolves around more than 230 billion, it can be interpreted that the organization’s business model is strong as it facilitates huge revenues (Statista, 2019). The future of the organization focuses on enhanced and customized customer experience. The organization focuses on the adoption of technological adoption, and there is a high probability that Amazon would grow even more in the future.
Considering the technological revolution, the role of financial managers has changed to a significant extent. The historical perspective of financial managers was to keep a record of every transaction and prevent financial misconducts in the organization to sustain in the markets for the long run profitably (Eleje, Okoh & Okoye, 2018). However, technological disruption has facilitated the financial sector to a significant extent. At the same time, technological disruption also holds adverse effects that hinder the organization’s sustainability in different markets. Using the technology to get maximum advantages in different markets has become a major opportunity for financial managers and organizations to avail.
Figure 1: Finance Managers & Technology
Source: (Tervala et al., 2017)
Using real-time analytics and big data analysis strategies with the help of artificial intelligence, financial managers can invest in fruitful and high-return based market. Apart from the advantages, technology has also raised certain challenges for organizations (GOV UK, 2018). Since the organizations have become more inclined towards digital bookkeeping system and online monetary transactions, the complications for financial managers have grown heavily. In different cultures, the magnitude of financial misconducts is dealt with strictly (ILO, 2017).
Figure 2: Real Time Analysis
Source: (Briggeman et al., 2019)
Developed and strong corporate governance-based countries such as the USA and UK have aggressive policies against organizations involved in misconducts, which depicts that the issue is considered ethically and morally wrong in different cultures (Yeoh, 2019). The implications for social entrepreneurs and society have also grown heavily as financial misconducts might motivate certain individuals and there is a high probability that fraud would increase. By now finance managers have to maintain presence at different areas of the organization including finance department, management system, HR system and capital budgeting department, which means technological has made the role of finance managers fragmented.
Although, I am not a finance manager and have limited knowledge about financial transactions. However, I would like to explain a situation where I got scammed by a random person online. I was trading my game inventory to an online website where I could sell my items for the money. In between the process of trading, someone scammed my trading system, and I ended up trading items with the scammer. The issue faced by me caused me to think about how difficult the role of financial managers has become. I could not carry out one transaction successfully and carefully, and financial managers have to keep an eye of huge monetary investments. However, technology can also be used in a positive manner where adoption of software and technology dependent framework be used to increase efficiency and productivity in the organization. Considering the technological disruption, the role of financial managers has been changed, which is expected to change even more in the future.
Possible changes in the Future:
The number of financial misconducts has grown to a significant extent. Considering the technological disruption, financial managers are bound to devise certain ways to resolve the issue. The concept of remote working is a major thing to consider here. I believe that for a single manager keeping an eye on financial transactions is challenging and highly risky. So, the organizations have to come up with the idea to prevent the misconducts. In this debate, the system of the remote transaction is a key thing to consider. Remote working is artificial intelligence (further referred to as AI) based system which enables the management to keep a record of work or transactions in the organization (Felstead & Henseke, 2017).
Figure 3: Remote Learning:
Source: (Felstead & Henseke, 2017)
There is an internally connected system which enables two-way learning. The work done by employees is systematically shared with the management. Considering its ability to keep managers aware of the work and transactions, it is expected that the role of financial managers will change to a significant extent. In an interview with Andy Stanford Clark, he mentioned that for fresh graduates possessing a skilled and adaptive mind is necessary. Clark further added that in order to survive in the modern age, individuals have to focus on digital learning. By the statement provided by Clark, it is evident that the world will be dominated by artificial intelligence and digital operations in the future. According to McKinsey’s Global Institute (further referred to as MGI) by 2030, more than 25% of work done in various genres of the organization will be done digitally (Manyika et al. 2017). The study conducted by MGI provides a detailed and critical insight into how things are likely to be changed in the future. The research conducted by MGI also supports the idea of remote-based learning and transactions system. According to the idea, financial managers would rely upon the use of technology to keep a record of transactions and to limit the growth of financial misconducts to a significant extent. The research conducted by MGI supports the point; hence, it can be interpreted that the technology would take over the financial bookkeeping, maintenance and check and balance systems. The financial managers of countries around the globe would rely upon the use of digital technology to a significant extent which will limit the growth of financial misconducts. Considering the change, the financial managers will have to re-skill and relocate their strong suits.
References:
Briggeman, B., Dikeman, M., Yeager, E., & Reid, R. (2019). A ProfitLink Decision Tree for Farm Financial Managers. The Journal of the ASFMRA, 115-120.
Eleje, E. O., Okoh, J. I., & Okoye, L. U. (2018). Computer-based financial reporting and transaction processing system in the Nigerian banking industry: The role of financial managers. Sokoto Journal of· Management Studies, 14(1), 212-230.
Felstead, A., & Henseke, G. (2017). Assessing the growth of remote working and its consequences for effort, well‐being and work‐life balance. New Technology, Work and Employment, 32(3), 195-212.
Tervala, E., Laine, T., Korhonen, T., & Suomala, P. (2017). The role of financial control in new product development: empirical insights into project managers’ experiences. Journal of Management Control, 28(1), 81-106.
Yeoh, P. (2019). Workplace Non-Financial Misconduct: Problems and Solutions. Business Law Review, 40(3), 101-110.
Hi, this is Jiawen Zhang from Shenzhen, China. I am doing MSc International Management and in this term I chose Digital Business Models as one of the optional modules because I thought it would be fun to start my blog which I’ve never done before.
It is quite a challenging for me to get this masters’s degree of business as my major in college was Landscape Design. Every subject is brand new to me but I try to make the most out of my time in University of Exeter. Choosing this module will not only make me learn about business but also create my own blog. Kill two birds with one stone! This is what I want.
Looking forward to the rest of the course and your comments.
