Business Models and Innovation Challenges

This assignment delves into the relationship between business models and innovation, with a focus on Small and Medium-sized Enterprises (SMEs). Students are tasked with analyzing how different business models facilitate or hinder innovation within SMEs. The analysis should consider the impact of emerging technologies such as 3D printing and the sharing economy on business model innovation. The assignment also encourages exploration of the challenges and opportunities presented by these technological advancements.

MANAGING SUCCESFUL
BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Aims and Objectives.............................................................................................................1
P2 Project management plan.......................................................................................................3
P3 Produce work break down structure and Gantt chart.............................................................4
TASK 2............................................................................................................................................7
P4 Research methodologies........................................................................................................7
TASK 3..........................................................................................................................................10
P5 Analysing the data gathered.................................................................................................10
P6 Recommendations................................................................................................................16
TASK 4..........................................................................................................................................17
P7 Reflection on research..........................................................................................................17
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19
APPENDIX....................................................................................................................................21

INTRODUCTION
This is an era of technological business as stated by different researchers all around the
world. Stating this it can be said that it has become essential for the organisations to take use of
the technological advanced equipments for their operations. It makes the business processes to be
faster as well as effective. This makes the work process faster. It is most important for the
smaller and medium sized organisation to take use of such devices as it increases their business
reach as well as reduces the overall cost of operations (Ackermann, 2012). Since they have
limited amount of resources hence it can be utilised for making business operation to expand into
new horizons. It supports one of the biggest aspect in the modern day business i.e. innovation
without which the growth of any firm cannot be ensured. Unicorn Groceries is an SBE that is
operational in UK. This company follows the flat structure in their management. It is having
business of Grocery, household and body care items with an annual turnover of around 7 million
pounds. This research highlights the influence of digital technology on the business of Small
enterprises as well as on the innovations with an effective project management plan.
TASK 1
P1. Aims and Objectives
Research Title:
The impact of digital technology in supporting growth of small business and innovation.
Firms that are utilising digital technology in their operations are having edge over the
others who are taking use of traditional methods of operations. It provides assistance in many
operations as well as it reduces the overall operational cost. In order to ensure long term success
in the business operations modern technological advancements have to be used. Innovation is
always fostered by the use of technological equipments since it helps in doing advanced research
based on the available resources.
AIM
 This project aims to understand several kinds of problems which is faced by Unicorn
Groceries in various situations which helps to ensure long term growth in future.
 Its main objective is to increase the capacity of consumers so as to reduce the time taken
to complete the task by 10% as well as reducing the cost of operation by 5% which can
be easily achieved by the use of digital technology.
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 One of the aim is to study the influence of digital technology on the operations of the
small enterprises like in marketing, information safety, data management.
 It also aims to define the methods by which innovation is facilitated by the use of digital
technology.
Objectives
 To find the requirement of continuous up-dation in the use of digital technology.
 To evaluate the methods through which cost of operations is minimised by taking the use
of technology especially in the field like marketing.
 To highlights the influence of digital technology in transformation of business activities.
 To analyse various areas of business where technological impact is highest.
Research Question
 In case of digital technology what kinds of up-dations are required by Unicorn Groceries.
 What is the digitally updated techniques of marketing.
 What sort of effect digital technology makes on the transformation and innovations in
business.
 What sort of tools of technology can assist in achieving these activities.
All provided objectives are crucial part of the report. In current case “ Unicorn Groceries” is a
SBE and has a potential of expanding business by taking use of modern day technology. It can
utilise online sites for selling its Groceries products. Using digital marketing small firms can
expand their market reach and can promote their items among larger section of the population.
Other issues which is generally faced by the small business enterprises is handling of data
generated in their daily operations. Company wants to do new innovative business which will be
directly benefited if they use modern digital technology. It minimises the overall operational cost
as well as making work process easier.
Background of the project: There are several things that has to be addressed while making the
business operations effective. It can be done using the technology by implementing proper
communication methodologies and channels so that work can be carried smoothly. Every firm
faces different kinds of conflicting situations that can be result of improper mechanism for
communication (Alshamaila, Papagiannidis and Li, 2013). When management has to deliver
message to the staff members they take use of messaging software which helps in delivering
information without any interruptions or data being missed.
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P2 Project management plan
There is a necessity of project management plan in the company such as Unicorn
Groceries. A plan always reduces the extra efforts that will be needed without it. It brings
smoothness I the whole work process as it makes tasks structured. Planning diminishes the
negative influence of various limiting factors on the whole project completion (Blackburn, Hart
and Wainwright, 2013). It assures that work will be completed of time that too taking use of
available resources in optimum way. Planning becomes essential in case of Unicorn Groceries
which is having limited amount of resources. This plan will cover essential requirements and
several activities that is done in this project completion:
 Scope: In many ways this research has higher scope. It mainly highlights on the different
types of activities inside the firm like data management, customer relationship, data
management. Implementation and Up-dation of digital technology will help in fulfilling
the requirements of human resource. Advanced technology in communication will assist
in checking that the flow of information within the firm is appropriate and hence reduces
all the possible confusions within the firm. This project will help in giving support to
expansion and growth plan for business by taking use of innovation.
 Quality check: The prime focus that will be ensured will be on the quality of research that
will be conducted. In order to get effective results for the firm authenticity of the primary
data has to ensured. It is fact that if researchers fails to record appropriate information
than it becomes impossible for them to provide desired report. Project monitoring will be
conducted in a continuous intervals of time that too on regular basis. It ensures that
mistakes can be eliminated at the point of generation only. Data analysis tool and Gantt
chart will assist in understanding the accumulated content more appropriately.
 Risk management: Different kinds of threats are associated with the project such as
improper collection of data, figures which may result in some probable risk which can be
sometimes hidden. These risks has to be faced properly because any sort of negligence
may result in reduction of efficiency of the whole project. Other than this determining the
authenticity of the collected data can be a serious challenge. Internet always acts as a
source of content whose authenticity is always under the question mark. Over
expenditure on the activities is one of the major risk as researchers cross the budget that
is allotted in the beginning of the project. Delay in the project completion can be another
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risk. If all these risk are not handled properly then their might be chance of project failure
which will ultimately result in failure of Unicorn Groceries in terms of adopting digital
technology successfully which can have negative impact on the growth of the firm.
Another bigger risk that is involved with this is that it may not complete on time and
hence proper strategy in this regard has to be made.
 Cost Control: It is essential for any project to be cost effective. Companies such as
Unicorn Groceries do not have deep pockets hence it becomes essential for the firm to
limit its financial expenses. A budget must be allocated for each activities in the process
that will help in making the overall cost control. Cost checking at every step of the
project completion results in reduction of overall budget which is necessary for the firm.
Due to the Tax hikes and inflation there is always the hence that the monetary value that
is assigned for the project may not be enough. Making a plan can be easier but its
implementation is always harder. In this project completion the estimated budget is
around 1200 pounds. The flexible margin that is set by the firm is 10%.
 Communication: In most cases any project fails because there is lack of proper
communication among the research team. At the time of plan formulation better
communication helps in taking views of managers of different departments on diverse
issues (Brynjolfsson and McAfee, 2012). Time to time conversation of project managers
and team members can ensure that there is smoothness in the implementation of plans.
 Time: It is essential for the researchers to decide that project is completed in prescribed
time frame. It ensures that firm gets maximum profit out of it. For such a time
management and scheduling Gantt chart can be beneficial. In the earlier estimation
projects will take approx 6 months time. Unicorn Groceries is aiming to improve the
operational performance for achieving targeted goals.
P3 Produce work break down structure and Gantt chart
Any project can get competed on time in a case if they break down their work in
appropriate number of parts. It will assist in focusing on each crucial sub part of the project. It
helps firms in gaining optimum results. This can also be understood in ways that most of the
errors done by the managers is due to the fact that they do not follow the idea of solving one step
at a time. An action plan provides details related to several activities which is done so as to
complete assigned project. Some of the steps in this regard is as follows:
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 Find the problem: A firm makes changes in themselves as per the need of theirs as well
as the environment that is forced by external factors. These alterations are always done
when present system is incapable of providing desired results. In this action plan the
major issue is the impact of technology supporting the growth of small business
enterprise and innovations (Sundararajan, 2014). It is essential for the organisations to
find out influence which it makes on business of the enterprise. For achieving so hey
have to learn about many kinds of technological alterations which can help in achieving
their business goals. Postponing the implementation of digital technology in the process
may lead to business failures. Primary research will assist firms in accumulating
authenticated and reliable informations and on other hand secondary data helps in
searching more related informations.
 Location of literature review: One of the crucial source of information in modern day
researches is Internet. It helps in availing the data at cheaper cost which was previously
investigated by other researchers. Along with it Questionnaire can be beneficial for
understanding the mindset of the participants. Here are various authors that have
mentioned this topic in their blogs and content writing pages. Books and journals are also
helpful in collecting authenticated data relevant to this topic.
 Meeting: There will also be the planning of timely meetings with different members will
ensure that there is no misconception or confusion that can occur at the time of project
execution (Rayna and Striukova, 2014). At the time of collecting primary data a schedule
will be considered so that participants do not have to face any issue while the interview is
being conducted.
 Location of data gathered data: This will be done at several places of Manchester that too
at the workplaces only. Team mates are crucial part of the research apart from the experts
from this topic.
 Process of analysing data: Many statical tool and analysis of questionnaire is completed
which will enhance the effectiveness of the results.
 Review Project: In order to make required changes which is necessary for achieving
better outcomes all the information that is gathered have to analysed by the managers.
Project managers ensures that he or she is reviewing the process from time to time.
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TASK 2
P4 Research methodologies
It is essential for completing the research carefully that researcher chooses the best
possible approach which is going to be used at the time when research has to be conducted (13
Biggest Challenges When Moving Your Business To The Cloud. 2017). Selecting an approach
always depends on the resources and time they have. There are two types of data:
 Primary data: This kind of data is something that has been gathered for the first time and
hence it is raw and fresh. This is more authenticated data and can be highly reliable in
terms of research that has to be conducted. Questionnaires, Observing activities and
personal interview are some of the ways using which this kind of data is collected. In
some cases researcher do not use this as a major source of information collection as it
takes significant amount of time as well as it is costly (Cavalcante, Kesting and Ulhøi,
2011).
 Secondary data: This is a type of data which is already available on several sources and
researchers just utilises it to conduct their own research. This can effective in case when
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larger data has to be collected in shorter time period. Online journals, Books, Media
sources, other online researchers, blogs could be excellent sources for such kind of data.
Research methods
 Quantitative: All the data collected is in numeric figures. Question which is close ended
can be essential and generally starts with how many and how much (Laforet, 2013). It
provides assistance in accumulating appropriate informations which is necessary for
making plan more effective. Participants does not face problems as questions are short
and precise and hence their time also gets saved. Filling questionnaire is easier.
 Qualitative: This is the type of research that is linked with finding opinions of the
correspondents. Questions are open ended in nature as well as there is no relation with
numeric figures (Lambert and Davidson, 2013). It is essential part of the research
methodology. Personal interview and subjective questionnaire can be some of the
methods that can be used while gathering of data.
Questionnaire for gathering primary data
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Questionnaire
Name:
Age:
Gender:
Q1. Do you consider that there is need of new software for data handling and sharing in various
units of organisation?
A. Yes
B. No
Q2. Do you feel “unicorn Groceries” can adopt latest technology for marketing?
A. Yes
B. No
Q3. Can implementing digital technology may assist in reduction of miscommunication?
A. Yes, but not so much
B. No.
Q4. Cloud technology may reduce problems associated with data management?
A. Strongly Agree
B. Agree
C. Not agree
Q5. How can effective marketing of products can be done using digital technology?
A. By doing mobile advertisements
B. TV advertisements
C. Promotion on social media.
Q6. Do you feel that advancements in digital technology will foster growth of “Unicorn
Groceries”?
A. Yes
B. yes but limited growth
C. No.
Q7. Can “ unicorn Groceries” make use of artificial intelligence inside their workplace?
A. Yes, as it is future of technology
B. No, it can be risky
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TASK 3
P5 Analysing the data gathered.
Above mentioned questionnaire is filled by 20 respondents who has considerable amount
of knowledge about advanced technology being used in this industry and has interest in the
business of Uniform Groceries.
Themes 1
Q1. Do you consider that there is need of new
software for data handling and sharing in
various units of organisation?
Frequency
A. Yes 17
B. No 3
10
A. Yes B. No
0
2
4
6
8
10
12
14
16
18 17
3
Column B

From the above based graphical data it can be interpreted that 17 out of 20 people feel that there
is a requirement of new software for handling and sharing of data inside the workplace only 15
percent of the whole respondents thinks that it is necessary.
Themes 2
Q2. Do you feel “unicorn Groceries” can adopt
latest technology for marketing?
Frequency
A. Yes 12
B. No 8
From the above based graphical data it can be evaluated that 60% of the people think that this
company will be able to this for marketing and rest 40% thinks that they will not be successful
by doing so.
11
A. Yes B. No
0
2
4
6
8
10
12
12
8
Column B

Themes 3
Q3. Can implementing digital technology may
assist in reduction of miscommunication?
Frequency
A. Yes, but not so much 18
B. No. 2
12
A. Yes, but not so much B. No.
0
2
4
6
8
10
12
14
16
18
18
2
Column B

Almost 90% of the people thinks that using communication mediums will facilitate in reduction
of misconceptions. Other rest 10% feels that this is not true as it will not be able to reduce
misconceptions.
Themes 4
Q4. Cloud technology may reduce problems
associated with data management?
Frequency
A. Strongly Agree 13
B. Agree 6
C. Not agree 1
13
A. Strongly Agree B. Agree C. Not agree
0
2
4
6
8
10
12
14 13
6
1
Column B

65 percent of the total population strongly believes that use of cloud technology may be able to
reduce the problems associated with data management while the 30 percent of the population
considerably agrees with this and feels the same. On the other hand 5 percent of the total
population also feels that this not true and cloud has several disadvantage of itself.
Themes 5
Q5. How can effective marketing of products
can be done using digital technology?
Frequency
A. By doing mobile advertisements 8
B. TV advertisements 5
C. Promotion on social media. 7
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40 percent of the total population feels that by the use of mobile advertisements effective
marketing can be done when considering with digital marketing. Another 25 percent of the
people feels that taking use of TV ads can be effective while 35 % of the total population thinks
that taking use of social media can be highly beneficial in this regard.
Themes 6
Q6. Do you feel that advancements in digital
technology will foster growth of “Unicorn
Groceries”?
Frequency
A. Yes 11
B. yes but limited growth 7
C. No. 2
15
A. By doing mobile advertisements
B. TV advertisements
C. Promotion on social media.
0
1
2
3
4
5
6
7
8
8
5
7
Column B

More than half of the people feels i.e. 55 % of the total population feels that advancements in
digital technology can foster the growth of Unicorn Groceries. Another 35% of the people think
that yes company can achieve growth but that will be limited. On the other hand remaining 10 %
of the population feels in other ways that this will not foster the growth of the company in the
industry it is operating.
Themes 7
Q7. Can “ unicorn Groceries” make use of
artificial intelligence inside their workplace?
Frequency
A. Yes, as it is future of technology 13
B. No, it can be risky 7
16
A. Yes B. yes but limited growth C. No.
0
2
4
6
8
10
12 11
7
2
Column B

65 percent of the total population feels that unicorn groceries can take use of artificial
intelligence inside the workplace, it will help in its various operational procedures. On the other
hand the rest other feels that it is risky to take use of artificial intelligence in the business of
small enterprises. Since there are many disadvantages of using this technology and company is
not ready for facing all these.
P6 Recommendations
By evaluating the primary data which is collected through several activities there are
various kinds of recommendations that can be made (Hargreaves, 2011). It is recommended for
the Unicorn Grocery that they take use of technological advancements as it aims to solve various
problems associated with daily operations of the firm. Taking the use of technology will reduce
the overall cost of the business operations which is essential in the case of Unicorn Grocery
which is having limited amount of resources. This will also increase the business reach of the
firm and hence facilitating in generation of higher profits. It also assist in having edge over other
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A. Yes, as it is future of technology B. No, it can be risky
0
2
4
6
8
10
12
14 13
7
Column B

competitors (Hotho and Champion, 2011). Apart from this for any SBE it is essential to have
innovations which cannot be be possible without taking use of technologically advanced
features. Artificial intelligence is termed as the future of the business processes but in present
time Unicorn Groceries is unable to use it in a proper way. This technology is expensive which is
not in the interest of the firm and hence can utilise it in future but not in the current times. Ways
of doing advertisements have changed considerably and digital medium have replaced
traditional ways of doing marketing. Some of the most common digital mediums that this
company can use to solve its day to issues are:
 Email marketing
 PPC
 E- commerce websites
 Cloud computing
 Social media marketing
 Data manipulation tools for understanding the needs and trends of the market.
TASK 4
P7 Reflection on research
In the above part of the report most effective method that has been used is collecting of
reliable data. Using this I was able to understand the perception of people regarding the
technological advancements of the company as well as the requirement of the firm. Gathered
information will be used in the decision making process as well as it will help me in resolving
issues in the firm. In the start of this project I was unaware of the ways in which data is collected
as well as how the project is managed. It taught me the ways in which proper time management
can help in completing a task on time. It also enhanced my knowledge about the use of digital
technology in the SBE and its impact on their operations as well as on the innovations
CONCLUSION
From the above based research report it can concluded that use of technology can help
company like Unicorn Grocery in fostering its progress as well as reducing its operational cost.
There are two types of data namely primary and secondary. Use of questionnaires and surveys
can helps in collection of primary data as well as books and internet can be effective sources for
collecting secondary data. Quantitative research is based on the numeric figures while qualitative
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relies on opinions and perception of people. Different activities such as marketing and data
management can become easier with the use of digital technology. There are many limitations
that are associated while conducting any resource and hence various strategies needs to
implemented so that work on time.
REFERENCES
Books and Journals
Ackermann, S.J. ed., 2012. Are small firms important? Their role and impact. Springer Science
& Business Media.
Alshamaila, Y., Papagiannidis, S. and Li, F., 2013. Cloud computing adoption by SMEs in the
north east of England: A multi-perspective framework. Journal of Enterprise
Information Management, 26(3), pp.250-275.
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Blackburn, R.A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development, 20(1), pp.8-27.
Brynjolfsson, E. and McAfee, A., 2012. Race against the machine: How the digital revolution is
accelerating innovation, driving productivity, and irreversibly transforming
employment and the economy. Brynjolfsson and McAfee.
Cavalcante, S., Kesting, P. and Ulhøi, J., 2011. Business model dynamics and innovation:(re)
establishing the missing linkages. Management Decision, 49(8), pp.1327-1342.
Hargreaves, I., 2011. Digital opportunity: a review of intellectual property and growth: an
independent report.
Hotho, S. and Champion, K., 2011. Small businesses in the new creative industries: innovation as
a people management challenge. Management Decision, 49(1), pp.29-54.
Laforet, S., 2013. Organizational innovation outcomes in SMEs: Effects of age, size, and sector.
Journal of World business, 48(4), pp.490-502.
Lambert, S.C. and Davidson, R.A., 2013. Applications of the business model in studies of
enterprise success, innovation and classification: An analysis of empirical research
from 1996 to 2010. European Management Journal, 31(6), pp.668-681.
Rayna, T. and Striukova, L., 2014. The impact of 3D printing technologies on business model
innovation. In Digital enterprise design & management (pp. 119-132). Springer, Cham.
Sundararajan, A., 2014. Peer-to-peer businesses and the sharing (collaborative) economy:
Overview, economic effects and regulatory issues. Written testimony for the hearing
titled The Power of Connection: Peer to Peer Businesses.
Online
13 Biggest Challenges When Moving Your Business To The Cloud. 2017. [Online]. Available
Through <https://www.forbes.com/sites/forbestechcouncil/2017/06/05/13-biggest-
challenges-when-moving-your-business-to-the-cloud/#523b7cf39b0e>. [Accessed on 13
September 2017].
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APPENDIX
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