Understanding What is Digital Business Online – An Overview

Posted in   Market, Product, System, Team   on  November 18, 2023 by  David Loke0

Welcome to the world of digital business online! In today’s fast-paced and interconnected world, the internet has become a powerful platform for businesses to thrive and succeed. But what exactly is digital business? In this article, we will provide you with a comprehensive overview of digital business and the process of digitization. So, strap in and get ready to embark on a journey into the digital realm!

Key Takeaways:

  • Digital business refers to the use of digital technologies to transform and generate higher revenue.
  • Technologies like Artificial Intelligence, Machine Learning, Virtual Reality, Robotics, and Blockchain are key components of digitalization.
  • There are over 2 billion websites on the internet, highlighting the vastness of the digital landscape.
  • Examples of successful digital businesses include Amazon, Uber, and Netflix.
  • Embracing digital technology and focusing on customer experience are key to thriving in the digital economy.

What Is a Digital Business?

A digital business is one that relies on technology to operate and grow. It encompasses the adoption of various technologies such as productivity apps, artificial intelligence (AI), and data analytics. In essence, a digital business utilizes digital technologies to transform traditional business models and processes. This transformation can include conducting all work online for online-only companies or implementing technology-driven initiatives to enhance customer experiences in brick-and-mortar establishments.

True digital transformation goes beyond just using technology as a tool; it involves shifting towards a customer-centric, technology-focused business model. The impact of digitalization is comprehensive, affecting every aspect of the organization. From employee experience to customer service and back-end management, a digital business leverages technology to streamline operations and deliver greater value to customers.

A digital business relies on technology to transform traditional business models and processes, adopting digital technologies such as productivity apps, AI, and data analytics.

One of the key characteristics of a digital business is its ability to capture and leverage data. By utilizing data analytics, businesses can gain valuable insights into consumer behavior, preferences, and market trends. This information can then be used to drive strategic decision-making and develop personalized marketing strategies.

In summary, a digital business is one that embraces technology for its operations and growth. Whether it’s through technology adoption, digital transformation, or purely online operations, a digital business leverages digital technologies to enhance productivity, improve customer experiences, and drive innovation.

Examples of Digital Business

When it comes to successful digital businesses, two prominent examples stand out: Amazon and Uber. These companies have not only embraced digital technology but have also transformed their respective industries.

Amazon, initially known as an online bookstore, has evolved into a powerful e-commerce platform. Today, it offers a wide range of products and services, from electronics to streaming entertainment. This transformation showcases the successful integration of technology into traditional business models.

Uber, on the other hand, revolutionized the transportation industry by leveraging digital technology. Through a user-friendly app and GPS technology, Uber connects users with transportation services, providing convenience and flexibility. This example demonstrates how digital businesses can disrupt existing markets and create new opportunities.

Both Amazon and Uber serve as inspiration for entrepreneurs and businesses looking to harness the power of digital technology to innovate and thrive in the digital economy.

Table: Comparison of Amazon and Uber

Business ModelOnline marketplaceOn-demand ride-hailing
TechnologyAI, data analyticsGPS, mobile app
Customer ExperienceConvenient online shopping, fast deliveryEasy ride booking, real-time tracking
Market ReachGlobalGlobal

This comparison table highlights the key differences between Amazon and Uber in terms of their industry, business models, technology, customer experience, and market reach. It illustrates how digital businesses can vary in their approach and strategies while achieving success in the digital landscape.

Digital Business Benefits

When it comes to running a business in the digital world, there are numerous benefits that can be achieved. Embracing digital technologies can lead to enhanced productivity, lower operational costs, improved quality, and better decision-making. Let’s explore these benefits in detail:

Enhanced Productivity

Digital business processes can automate repetitive tasks, allowing employees to focus on more value-added activities. Productivity apps and tools streamline workflows, enabling teams to collaborate more efficiently and complete tasks in less time. By leveraging digital technologies, businesses can optimize their operations and achieve higher productivity levels.

Lower Operational Costs

Digitalization can significantly reduce operational costs for businesses. By replacing manual tasks with automated processes, companies can save on labor and resources. For example, implementing digital communication channels can reduce expenses related to traditional phone systems. Additionally, cloud-based solutions eliminate the need for physical infrastructure, reducing maintenance and storage costs. Overall, digital business can help organizations operate more cost-effectively.

Improved Quality

Digitizing a business allows for greater control and consistency in operations, resulting in improved quality. With digital technologies, businesses can implement standardized processes and monitor performance metrics in real-time. This enables proactive identification and resolution of any issues, ensuring a high level of quality throughout the organization. By delivering consistent and reliable products or services, businesses can enhance customer satisfaction and loyalty.

Better Decision-Making

Digital technologies provide businesses with access to vast amounts of data, which can be analyzed to gain valuable insights. By leveraging data analytics and business intelligence tools, companies can make data-driven decisions. This enables more accurate forecasting, identification of trends, and understanding of customer preferences. With better information management and analysis, businesses can make informed decisions that drive growth and success.

By embracing digital business practices, organizations can unlock these benefits and gain a competitive edge in today’s digital economy.

4 Concepts of Digital Business

When it comes to thriving in the digital economy, understanding and implementing key concepts of digital business is crucial. These concepts include flexibility, scalability, culture, and quality. By embracing these principles, businesses can position themselves for success in the ever-evolving digital landscape.

Flexibility: In the digital business realm, flexibility is a key attribute that enables organizations to adapt quickly to changing circumstances and emerging technologies. This flexibility allows businesses to stay ahead of the competition and seize opportunities for growth.

Scalability: Another important concept in digital business is scalability. With the ability to scale operations as needed, businesses can effectively handle fluctuations in workload and accommodate growth. Scalability ensures that processes remain efficient and effective, even as business demands evolve.

Culture: Shifting the culture within an organization is essential for successful digital transformation. Cultivating a culture that prioritizes productivity, efficiency, and automation enables businesses to fully embrace the potential of digital technologies. This cultural shift empowers employees to adopt new ways of working and drives innovation throughout the organization.

Quality: In the digital business landscape, maintaining a focus on quality is paramount. Digital innovations should always add value to the customer experience and deliver tangible benefits. By prioritizing quality, businesses can ensure that their digital initiatives align with customer expectations and drive positive outcomes.

FlexibilityA key attribute that enables organizations to adapt quickly to changing circumstances and emerging technologies
ScalabilityThe ability to scale operations as needed, accommodating fluctuations in workload and business growth
CultureA shift in organizational culture that prioritizes productivity, efficiency, and automation for successful digital transformation
QualityMaintaining a focus on delivering high-quality digital innovations that add value to the customer experience

By embracing the concepts of flexibility, scalability, culture, and quality, businesses can position themselves for success in the digital era. These principles enable organizations to navigate the ever-changing digital landscape, drive innovation, and deliver exceptional customer experiences. Embrace the power of digital business concepts to transform your organization and unlock new opportunities for growth and success.

Digital Business Components

When it comes to digital business, there are several key components that play a crucial role in its success. These components include Artificial Intelligence (AI), the Internet of Things (IoT), and digital engineering. Let’s explore each of these in more detail.

Artificial Intelligence (AI)

AI is a fundamental component of digital business as it enables businesses to anticipate customer needs, provide personalized solutions, and automate processes. By leveraging AI technologies such as machine learning and natural language processing, businesses can gain valuable insights from vast amounts of data and make data-driven decisions. AI-powered chatbots and virtual assistants enhance customer experiences by providing quick and accurate responses, improving overall satisfaction and loyalty.

The Internet of Things (IoT)

The Internet of Things connects devices and enables them to collect and exchange data. In a digital business context, IoT plays a critical role in transforming traditional products into smart products. For example, IoT sensors in manufacturing processes can monitor equipment performance and alert maintenance teams for timely repairs, reducing downtime and improving productivity. IoT also enables businesses to gather real-time data on customer preferences, allowing for personalized marketing strategies and targeted product recommendations.

Digital Engineering

Digital engineering is the application of digital technologies to design, develop, and optimize products and processes. It involves utilizing tools like computer-aided design (CAD) software, simulation tools, and virtual reality to enhance the entire product development lifecycle. With digital engineering, businesses can streamline the prototyping and testing phase, accelerate time-to-market, and improve product quality. It also enables rapid innovation and the ability to adapt quickly to changing market demands.

In summary, Artificial Intelligence, the Internet of Things, and digital engineering are essential components of a successful digital business. By harnessing the power of these technologies, businesses can improve customer experiences, optimize operations, and drive innovation. Embracing these components is key to staying competitive in the digital economy.

Examples of Popular Digital Businesses

When it comes to digital business, it’s not just major companies that dominate the online space. There are also numerous popular digital businesses that operate entirely in the digital realm. These businesses have harnessed the power of the internet to offer a range of products and services to a global audience. Let’s explore some examples of popular digital businesses:


Etsy is an online marketplace that connects independent sellers with buyers looking for unique and handmade products. It has become a go-to platform for artisans, crafters, and vintage enthusiasts to showcase and sell their creations. With its user-friendly interface and global reach, Etsy has created a thriving community of creative entrepreneurs.

Social Media Marketing

Social media marketing has emerged as a vital component of digital business. Businesses leverage social media platforms to promote their products or services, engage with customers, and build brand awareness. With the ability to target specific demographics and measure campaign performance, social media marketing offers businesses a cost-effective way to reach their target audience.

Web Design

In the digital age, having a professional and user-friendly website is essential for any business. Web designers play a crucial role in creating visually appealing and functional websites that attract and engage visitors. Whether it’s an e-commerce site, a corporate website, or a personal blog, skilled web designers have the expertise to bring a brand’s online presence to life.

Online Retail

Online retail has revolutionized the way we shop. From clothing and electronics to groceries and household items, consumers can now browse and buy products from the comfort of their homes. Popular online retail giants like Amazon have disrupted traditional brick-and-mortar retail, offering a vast selection of products, competitive prices, and convenient delivery options.


Drop-shipping is a business model where the retailer does not hold inventory but instead transfers customer orders to the manufacturer, wholesaler, or another retailer who then ships the products directly to the customer. This allows entrepreneurs to start an online store with minimal upfront costs and eliminates the need for storage space. Drop-shipping has gained popularity due to its simplicity and the potential for high-profit margins.

Table: Comparison of Popular Digital Businesses

Etsy– Global reach for sellers
– Niche audience of creative enthusiasts
– Competition from other online marketplaces
– Maintaining quality and uniqueness of products
Social Media Marketing– Wide audience reach
– Targeted advertising options
– Constantly evolving algorithms
– High competition for attention
Web Design– Demand for professional websites
– Creative expression through design
– Staying updated with emerging design trends
– Meeting client expectations
Online Retail– Vast product selection
– Convenient shopping experience
– Competing with established e-commerce giants
– Managing inventory and logistics
Drop-shipping– Low startup costs
– No inventory management
– Managing supplier relationships
– Ensuring timely delivery

These are just a few examples of popular digital businesses that have thrived in the online world. The low startup costs and ability to scale quickly make online-only digital businesses appealing to entrepreneurs. Whether it’s selling unique handmade products on Etsy, leveraging social media for marketing purposes, providing web design services, operating an online retail store, or utilizing the drop-shipping business model, the digital space offers countless opportunities for innovative entrepreneurs to succeed.

Netflix Example

Netflix is a prime example of a successful digital business that has revolutionized the way we consume entertainment. From its humble beginnings as a DVD rental service, Netflix has transformed into a global streaming giant, offering customers the convenience of accessing a vast library of movies and TV shows anytime, anywhere. With its user-friendly interface and personalized recommendations, Netflix has become a household name synonymous with the era of digital streaming.

What sets Netflix apart from traditional media companies is its ability to leverage digital technology to deliver an exceptional user experience. By eliminating the need for physical media and embracing the convenience of online streaming, Netflix has tapped into the growing demand for on-demand content. This shift in business model has not only propelled Netflix to the forefront of the entertainment industry but has also disrupted traditional broadcast television.

In addition to convenience, Netflix offers a wide range of original content, catering to diverse audiences around the world. By investing in original series, documentaries, and movies, Netflix has positioned itself as a major player in content production, further solidifying its status as a digital business leader. The streaming giant’s success can be attributed to its ability to adapt to changing consumer preferences and embrace innovative technologies to enhance the user experience.

Key Takeaways:

  • Netflix started as a DVD rental service and transitioned into a global streaming platform.
  • Netflix leverages digital technology to offer the convenience of on-demand streaming.
  • The streaming giant invests in original content production to cater to diverse audiences.
  • Netflix’s success lies in its ability to adapt to changing consumer preferences and embrace innovative technologies.

Uber Example

Uber is a digital business that revolutionized the transportation industry by leveraging technology. Through its innovative use of GPS technology, Uber connects users with convenient and reliable transportation services. With just a few taps on the app, you can request a ride anytime and anywhere, making it a popular choice for people seeking convenient travel options.

By harnessing the power of GPS, Uber ensures that riders can easily track their drivers and estimate arrival times. This real-time information enhances the overall convenience and efficiency of the service. Additionally, Uber’s digital platform allows for cashless transactions, eliminating the need for physical currency and creating a seamless experience for both riders and drivers.

Uber’s use of transportation technology, specifically GPS, has transformed the way we commute. The convenience it provides is undeniable, giving us the freedom to travel with ease and reducing the hassle of traditional transportation methods.

With its user-friendly interface and focus on convenience, Uber has disrupted the transportation industry, offering an alternative to traditional taxi services. Its digital business model has redefined how we think about transportation, making it more accessible and efficient for millions of people worldwide.

Table: Comparing Traditional Taxis and Uber

FactorsTraditional TaxisUber
BookingPhone call or street hailMobile app
PricingMetered fareUpfront pricing
PaymentCash or cardMobile payment
Driver IdentificationDriver’s licenseDriver and vehicle details on app
AvailabilityDependent on taxi availabilityAvailable on demand

The table above highlights some key differences between traditional taxis and Uber. With its digital business approach, Uber offers a more convenient and user-friendly experience through its mobile app, upfront pricing, and cashless transactions. These features contribute to its popularity and success as a leading digital business in the transportation industry.

Disney Example

Disney, a renowned entertainment company, has embraced digital technology to enhance the customer experience in its theme parks. One of the notable advancements is the implementation of the MagicBand wristband, which seamlessly integrates the digital and physical aspects of the park visit.

The MagicBand serves as a personalized tool for guests, allowing them to access various services and attractions conveniently. It connects with sensors installed throughout the park, enabling visitors to make purchases, enter attractions, and even reserve spots for shows without the need for physical tickets or cash. The MagicBand also offers features like FastPass+, which grants guests expedited access to popular rides, and PhotoPass, which captures and stores professional-quality photos.

Through the MagicBand, Disney has successfully undergone a digital transformation, revolutionizing the way visitors experience its parks. By leveraging technology to seamlessly integrate various aspects of the park visit, Disney has created a more immersive and personalized experience for its customers, enhancing their overall satisfaction and enjoyment.

Table: Benefits of Disney’s MagicBand

ConvenienceThe MagicBand eliminates the need for physical tickets and cash, simplifying transactions and entry into attractions.
PersonalizationThe MagicBand allows guests to customize their park experience and access personalized features like FastPass+ and PhotoPass.
EfficiencyBy digitizing various processes, such as ride reservations and purchases, the MagicBand streamlines operations and reduces waiting times.
Enhanced Guest ExperienceThe seamless integration of digital and physical experiences provides guests with a more immersive and enjoyable visit to the park.

Common Elements of a Digital Business

In today’s digital age, businesses must adapt to the ever-changing technological landscape to stay competitive. A digital business incorporates existing technologies, embraces digital transformation, and adopts new business models to thrive in this digital economy.

When we talk about the elements of a digital business, we refer to the key components that drive its success. These elements include:

  • Existing Technologies: Digital businesses leverage existing technologies to streamline operations, enhance customer experiences, and gather valuable data for informed decision-making. Technologies such as cloud computing, big data analytics, and customer relationship management systems play a pivotal role in achieving digital excellence.
  • Digital Transformation: Digital transformation is not just about adopting new technologies; it involves a fundamental shift in an organization’s mindset, culture, and processes. It requires businesses to embrace change, reimagine traditional practices, and integrate digital solutions across all aspects of the organization.
  • New Business Models: Successful digital businesses prioritize customer experience and align their business models with digital strategies. They leverage technology to create innovative products, redefine customer journeys, and deliver personalized experiences. Examples of new business models include subscription-based services, platform ecosystems, and data-driven decision-making.

A digital business combines these elements to create a customer-centric, technology-driven organization that can adapt and thrive in the digital age. By harnessing the power of existing technologies, embracing digital transformation, and adopting new business models, companies can unlock new opportunities, drive growth, and stay ahead of the competition.


In this article, we have provided an overview of digital business and its significance in today’s digital economy. Digital business involves using technology to transform traditional business models and unlock new sources of value. By adopting digital technologies such as AI, data analytics, and automation, businesses can enhance productivity, streamline operations, and make more informed decisions.

One of the key benefits of embracing digital business is increased productivity. By automating manual tasks and using digital tools, businesses can achieve higher efficiency and output. This not only saves time but also reduces operational costs. Additionally, digital business allows for better decision-making through the effective use of data and analytics, enabling businesses to gain valuable insights and stay ahead of the competition.

Several successful examples of digital businesses highlight the potential of digital transformation. Companies like Amazon, Uber, and Netflix have leveraged digital technology to disrupt traditional industries and create new business models. These examples demonstrate the power of technology to enable innovation, enhance customer experiences, and drive growth.

In conclusion, digital business offers tremendous opportunities for businesses to thrive in the digital age. By embracing digital technologies and focusing on customer experience, businesses can unlock new possibilities and stay competitive. As the digital landscape continues to evolve, it is essential for businesses to adapt and leverage the potential of digital business to succeed in the modern marketplace.


What is digital business?

Digital business refers to the process of using digital technologies to transform a business and generate higher revenue.

What does digitalization involve?

Digitalization involves adopting technologies like Artificial Intelligence, Machine Learning, Virtual Reality, Robotics, and Blockchain.

How vast is the digital landscape?

There are more than 2 billion websites on the internet, indicating the vastness of the digital landscape.

What does this article aim to provide?

This article aims to provide a comprehensive overview of what digital business is and the process of digitization.

How does digital business operate?

Digital business relies on technology to operate and grow. It can involve using productivity apps, AI for customer experience improvement, capturing data for business intelligence, or conducting all work online for online-only companies.

What does true digital transformation involve?

True digital transformation involves shifting towards a customer-centric, technology-focused business model that impacts every part of the organization, from employee experience to customer service and back-end management.

Can you provide examples of successful digital businesses?

Amazon is an example of a digital business that started as an online bookstore but expanded to become a powerful e-commerce platform. Uber is another digital business that connects users with transportation services through technology.

What are the advantages of digitizing a business?

Digitizing a business offers several advantages, including enhanced productivity through automation and faster processes, lower operational costs as manual tasks are replaced by efficient digital techniques, high quality and consistency in operations leading to better customer service, and better decision-making through effective information management and analysis.

What are the key concepts of digital business?

Becoming a digital business involves four key concepts: flexibility, scalability, culture, and quality. Flexibility allows businesses to adapt quickly to changing circumstances and technology. Scalability ensures that processes can match fluctuations in workload and growth. Culture involves changing how the organization operates and thinks, with a focus on productivity, efficiency, and automation. Quality is a key consideration in digital business, ensuring that innovations add value to the customer experience.

What are the components of digital business?

AI, IoT, and digital engineering are crucial components of digital business. AI helps anticipate customer needs and provide solutions. IoT enables the development of smart products and increases productivity. Digital engineering plays a vital role in transforming customer journeys and enabling rapid innovation.

Are digital businesses limited to major companies?

No, digital business is not limited to major companies but also includes online-only businesses that operate entirely in the digital space. Examples of popular digital businesses include sellers on Etsy, social media and content marketing, web design, online retail, and drop-shipping.

Can you provide an example of a digital business that transitioned from e-business to digital business?

Netflix is a prime example of a digital business that transitioned from e-business to digital business. It started as a DVD rental service and then shifted to streaming, offering customers a more convenient way to watch movies and TV shows.

How does Uber utilize technology in its digital business model?

Uber is a digital business that uses GPS technology to connect users with transportation services. It offers convenience and flexibility to customers, who can request a ride anytime and anywhere using the app.

How did Disney embrace digital technology in its theme parks?

Disney embraced digital technology in its theme parks through the MagicBand wristband. The MagicBand enhances the customer experience by connecting with sensors in the park and providing a seamless digital and physical experience.

What are the common elements of a digital business?

Common elements of a digital business include using existing technologies to cut costs, gather data, and improve customer experiences, undergoing organizational restructuring and cultural shifts to implement and manage digital services, and adopting new business models that prioritize customer experience and align with the digital strategy.

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About the Author David Loke

David Loke is the co-founder and CEO of ReadySpace, a Cloud Service Provider in the APAC region. In 2003, he started ReadySpace with the vision to provide customers with reliable, secure, affordable and simple online apps. It then evolved into what we call Cloud today. Being through a decade of running ReadySpace, it has now grown into a regional business serving business owners and its managers across various industries to their success.
Right now, he is taking his wealth of experience to help over 700 business owners as mentor and coach with an ultimate goal to multiply wealth creation.

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