The Importance Of Digital Technology In Business?

In particular, the Internet and the evolution of technological trends such as social media, mobile technology, cloud computing or big data have offered new ways of doing business and leads to digital business models (Uhl et al., 2014, p. 1). Digital technologies provide new channels for selling products but also change consumer behaviour by empowering them in having unlimited access to a huge quantity and quality of information, hence they can choose between competitors. This digital revolution represents a fundamental change in the business of all sizes and especially has shaken marketing to its core. Companies are facing new ICT enabling an interactive communication with customers and the brand message can be delivered through various new

Frank Diana from the Tata Consultancy argues that the success is tied to “Digital DNA”, which implies the ability to operate in a fast changing business environment, and that Internet and start- up companies enjoy the advantage to have exactly this kind of ability (Kaufman et al., 2015, p. 39). Due to the relatively small size of start- ups, they can rapidly adjust to each environmental change (Iasi, 2013, p. 150).

Digitalization is impacting OSUs in many ways – both positive and negative. The key benefits of adopting digital technology in business are cost efficiency and valuable relationships with customers. In more detail, the Internet facilitates the market entry and enables the establishment of a web- based company. Generally, it is linked with low barriers e.g. a minimal financial investment is needed because of fewer fix costs for renting additional physical stores (Hahn, 2014, p.3; Manzoor, 2014, p.10-11). OSUs have the possibility to reach the global market because the geographical boundaries disappear through the Internet. They could serve a greater amount of customers and conduct business online 24 hours a