What does digital commerce mean, and is it an outdated concept in the era of artificial intelligence? We argue that digitalisation and the digital transformation of businesses are more relevant themes than ever before.

The tools and technological opportunities are evolving at a rapid pace, and it is therefore particularly important to also understand the big picture of a company's digital commerce.

Digital commerce is about innovation

Digital commerce is an overarching concept that describes the conduct and development of business operations by utilising new digital technologies. It encompasses, for example, the company’s own digital products and services, as well as the enhancement of the company’s functions and processes using digitalisation and perhaps improving customer experience through modern technology. 

Examples of tangible manifestations of digital commerce:

• new digital distribution channels (e.g. online stores or connections to marketplaces)

• new digital products and services (e.g. software services, service platforms, loyalty portals)

• reforming internal operational processes (e.g. automated ordering and delivery chains)

• modernising sales and customer service (e.g. AI-based customer service, configurators, digital sales toolkits)

• data-driven management (e.g. novel combinations, visualisation and processing of business information with AI tools)

• building a digital ecosystem in collaboration with various partners

How to develop digital commerce?

Digital commerce evolves in stages. In my view, a three-stage development process is best illustrated with concrete examples:

1. Sharing and enriching information. In this phase, information is enriched and brought into a format that can be utilised collectively while keeping processes the same.
   For example: The inventory data of a car dealership is compiled from Excel spreadsheets into a unified DMS system. An online store transfers product information from a shared Excel to a PIM system where suppliers can integrate.

2. Reforming processes. At this stage, internal and external processes are actively developed using digital tools.
   For example: A car dealership adopts a booking system for test drives on its website and builds the possibility of applying for financing online.

3. Business transformation. In the final stage of development, the entire business model is redesigned using digital opportunities.
   For example: A car dealership moves to offer pre-owned cars as a subscription-based service, where customers can select cars via a digital platform, arrange financing, and agree on home delivery and additional service purchases online.

It is true that the biggest success stories of recent years have emerged through the disruption and digitalisation of business models. The most successful mobile game brands, platform economy enterprises like Wolt, or Airbnb could not have emerged merely by enhancing information sharing or renewing old processes. They require a whole new way of thinking to disrupt traditional business models. 

Yet, most of the benefits of digital commerce arise from improving information sharing and renewing old processes. There remains significant work in these areas for most Finnish companies.

The eight areas of digital commerce

How to generate ideas for steps forward in digital commerce development within your own organisation? To support this discussion, I often introduce the concept of eight different areas through which business benefits can be pursued. 

Detailed areas of digital commerce:

Where can Crasman assist?

Crasman has extensive experience in designing and implementing online stores, web services, internal digital tools and various data solutions. We consult and conceptualise all areas of digital commerce. from the design and implementation of web services.