Digital Firm in Bangladesh

INTRODUCTION
The Digital Firm is a general term for organizations that have enabled core business
relationships with employees, customers, suppliers, and other external partners through
digital networks. These digital networks are supported by enterprise class technology
platforms that have been leveraged within an organization to support critical business
functions and services.
CHARACTERISTICS OF A DIGITAL FIRM
Significant business relationships are digitally enabled and mediated- In a digital firm
a greater part of business relationships are mechanically controlled.
Core business processes are accomplished through digital networks- In a digital firm
all the core business processes are automatized and monitored digitally.
Key corporate assets are managed digitally.
Use of information system in making major decisions- In a digital firm significant

business decisions and strategic plans are made using information supplied by the
information system.
FUNCTIONS OF A DIGITAL FIRM
It serves to operate business processes globally (Space Shifting). The business

activities can be performed from anywhere. It makes business operations more
flexible thus removes geographical barriers.
It serves to operate business continuously (Time shifting). The business processes
can be operated 24*7.
It serves to reduce the firms workforce by making business processes automatic and
eliminating unnecessary manual labors. It also makes organizational hierarchy
narrower.
It serves to maximize business operations by optimizing the use of resources. It also
increases business efficiency. Thus, making business more profitable.
It serves to create business value from technology investment.
It serves to drive efficiency improvements in inventory and supply chain.
It serves to enhance the management of customer relationships. It also facilitates
better quality service to customers.
3 EXAMPLES OF DIGITAL FIRMS

AMAZON
Amazon has many roles to play not merely as a merchandise retailer but also a shipping
distributor, financial software consultant and small business distributor. The main function of
merchandise retailing is performed via their website which allows communication flow on an
international basis. The information technology utilized within amazon's website is also the
digital connection to shipping and distribution whether it be from Amazon directly or from
small vendors. small venders get exposure to the digital market by interacting directly with
Amazon online and engaging in electronic contracts with all the relationship requirements
listed and disclosed on the internet.
Basically a majority of Amazon's business aspects such as sales, customer relations and
supplier distribution centers are fulfilled digitally thus concluding that amazon can be a good
example of a digital firm.
UNITED PARCEL SERVICE

UPS can be considered a digitally firm because of their huge investment in technology and
information system. Significant business processes of UPS are controlled digitally. It would
not have been possible for them to deliver such huge number of parcels everyday without the
help of technology.
Today UPS delivers more than 14.1 million parcels and documents each day in the United
States and more
than 200 other countries and territories. The firm has been able to maintain leadership in
small-package delivery services despite stiff competition from FedEx and Airborne Express
by investing heavily in advanced information technology.
UPS also provides tools that enable customers, such as Cisco Systems, to embed UPS
functions, such as tracking and cost calculations, into their own Web sites so that they can
track shipments without visiting the UPS site. Information technology helps UPS reinvent
itself and keep growing. UPS implemented a suite of custom-built software that uses
operations research and mapping technology to optimize the way packages are loaded and
delivered. Because UPS delivers 14 million small packages each day, the resulting
information is cutting the distance that delivery trucks travel by more than 100 million miles
each year
UNISYS
Unisys is a global information technology company that solves complex IT challenges at the
intersection of modern and mission critical. Its business processes are fully automatic and
have significant technological investment. Their business processes are run continuously.
They have a very narrow employee base and organizational hierarchy because of work
process digitization.
Unisys work with many of the worlds largest companies and government organizations to
secure and keep their mission critical operations running at peak performance; streamline and
transform their data centers; enhance support to their end users and constituents; and
modernize their enterprise applications. They do this while protecting and building on their
legacy IT investments.
Their offerings include outsourcing and managed services, systems integration and consulting
services, high-end server technology, cybersecurity and cloud management software, and
maintenance and support services.
ANALYSIS
Technology adoption has been increasing as digital firms continually look to achieve greater
levels cost savings, competitive advantage, and operational performance optimization. As
organizations adopt technology, the internal appetite for additional technologies increases and
in some cases accelerates. This acceleration of technology adoption by digital firms creates a
"digital divide" as emerging technology is absorbed at varying rates across organizations.
This technology divergence can affect competitive dynamics in the market place between
firms that achieve operational benefits from the technology and firms which have yet to
adapt.
After evaluating the business models and markets of the above five examples, Amazon is a
best choice for Bangladesh. The IT infrastructure and level of complimentary assets in
Bangladesh are suitable for digital firms like Amazon. At the present significant portion of
urban population in Bangladesh has the access to internet. The current generation is showing
a positive to online shopping stores because of the convenience. The information system
required for a firm like amazon is available in Bangladesh. On time delivery and shipment of
products within urban areas in Bangladesh can be availed.
DIGITAL FIRM IN BANGLADESH
IT CONSULTANTS LTD.
Established in 2000, ITC Limited is the local leader in the rapidly evolving arena of
Electronic Payment & Transaction System. The Company has converted to Public Limited
Company, registered under the Securities and Exchange Commission of Bangladesh, in 2009.
ITC Limited provides to major Banks, Financial Institutions, Government organizations and
retailers with an advanced infrastructure for Transaction Processing Services while operating
one of the largest Bank driven independent ATM network in Bangladesh. ITCL is always
thrives and innovate new ideas to build a growing electronic transaction processing capacity
in Bangladesh through further investment and R&D. Presently the company provides credit
and debit card processing services, Q-cash ATM & POS sharing to more than 26+ Banks in
the region, ATM sales & support, POS sales & support, KIOSK-Deposit machine sales &
support, SMS Solution, Biometric Solution, Remittance management services and manages
the most extensive shared ATM networks. Moreover, ITCL has arranged Network sharing
facility with Dutch-Bangla Bank Limited Network & OMNIBUS Network.
ITCL, provides total end-to-end card solution, banking technology and information solution
as well as solutions for card personalization, key management, ATM installation and
maintenance and EFTPOS (Electronic Fund Transfer at Point Of Sales) machine installation
and maintenance and the entire transaction processing. We also provide consultancy services
to financial institutions to get certifications from Global Payment Card associations to assist
them in getting issuing/acquiring licenses.
ITCL also operates with a rapidly rising number of ATM terminals strategically located
across the country and wide spread of POS terminals at various Merchant locations and Bank
branches to serve the Card transactions of our clients. ITCL started its operation with
proprietary Smart Cards, now extends to various International Brands and Proprietary labeled
Credit, Debit, Pre-paid, Remittance cards with Chip based and MagStripe
Benefits availed by IT Consultants LTD from digitization are-
Automatic Business Process- Significant Business processes and operations of the

firm are technologically operated. It has huge technological investment. It performs
its functions globally (space shifting) through its vast network servers. It controls all
ATM transactions in Bangladesh from its central network. It provides services
continuously 24*7 (time shifting).
Reduced Workforce- It has very narrow organizational hierarchy and employees as

all works are operated automatically. Majority of the tasks are performed by servers.
Digitization of the firm made it possible to hire few number of workers. The
employees monitor the servers and look after any mechanical malfunction.
Maximized operations- It is able to maximize it operations as it is able to provide

maximum customer service in a very short period of time. The atomization of
business has resulted in speedy customer service. It is able to reduce cost by
optimizing the use of resources, thus adding to profit of the firm. Its information
systems help to supply required information to customers and within the organization
easily and quickly.

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INTRODUCTION

CHARACTERISTICS OF A DIGITAL FIRM

Key corporate assets are managed digitally.

Use of information system in making major decisions- In a digital firm significant

FUNCTIONS OF A DIGITAL FIRM

It serves to operate business processes globally (Space Shifting). The business

3 EXAMPLES OF DIGITAL FIRMS

UNITED PARCEL SERVICE

DIGITAL FIRM IN BANGLADESH

Benefits availed by IT Consultants LTD from digitization are-

Automatic Business Process- Significant Business processes and operations of the

Reduced Workforce- It has very narrow organizational hierarchy and employees as

Maximized operations- It is able to maximize it operations as it is able to provide

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