Drivers of digital technology adoption
Business adoption of e-commerce and digital business is driven by benefits to different parts
of the organisation. First and foremost, businesses are concerned about how the benefits of
digital business will impact on profitability or generating value to an organisation. The two
main ways in which this can be achieved are:
●
Potential for increased revenue arising from increased reach to a larger customer base and
encouraging loyalty and repeat purchases amongst existing customers.
●
Cost reduction achieved through delivering services electronically. Reductions include
staff costs, transport costs and costs of materials such as paper.
At an early point in digital technology adoption, a government report (DTI, 2000) identified
two main categories of drivers which remain relevant today for introducing new technology:
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