Business Research Methods: Task 1

This document discusses the key global forces of change in the business sector, such as technology and globalization. It explores the impact of Industry 4.0, Internet of Things (IoT), and digitalization on business operations. The document also reflects on how Victory Offices, a real estate company, has adapted to these changes. Additionally, it discusses the application of digitalization to improve operations and the potential risks and challenges associated with it.

Running head: BUSINESS RESEARCH METHODS: TASK 1 1
Business Research Methods: Task 1
Student’s Name
Institutional Affiliation

BUSINESS RESEARCH METHODS: TASK 1 2
Business Research Methods: Task 1
Task 1: Section 1
Key Global Forces of Change
The corporate sector is dynamic and managers in different sectors are required to keep in
touch with the changes in the external and internal business environment. One of the major
factors that have transformed this sector is the introduction of technology and related
applications. Business enterprises face critical challenges that call for an innovative approach to
operation management. There is a constant change in customer tastes and preferences. At the
same time, entry of new firms in the market leads to stiff competition and reduced market share.
Employee expectations and pressure from other stakeholder is equally creating the need for
change. Nevertheless, the onset of globalization generated shifts that provided new insights and
dimension in the operation and management of business ventures. Currently, different
technology-based forces of change such as Industry 4.0, Internet of Things (IoT), and
digitalization are changing the way business operate and interact with customers.
Industry 4.0 is a key force of change in business, which has shifted manufacturing from
analog to digital manufacturing. Industry 4.0 has transformed how firms meet their product and
service specification and value proposition by introducing quality-based approach to workforce
and resource optimization. In real estate sector, access to competitive services and advanced
property management models could be traced back to the fourth industrial revolution as a
primary force of change (Winson-Geideman & Krause, 2016). Each organization in the real
estate sector, including Victory Offices, is striving to achieve marketing and sales milestone
based on the target markets and niche. However, the extent to which the attainment of these
goals is guaranteed depends on the ability of the management to transform the available data into

BUSINESS RESEARCH METHODS: TASK 1 3
robust business models (Winson-Geideman & Krause, 2016). For example, Victory Offices has
focused on workspaces, which is a trend in real estate; however, other factors such as
personalization and customer service are complex and require artificial intelligence to unravel
the massive data implications.
Internet of Things (IoT) has equally transformed business operations. Businesses are
currently managed through interconnected virtual, mechanical, and digital entities without
network-related human-computer interactions (Gerpott & May, 2016; Iansiti & Lakhani, 2014).
In real estate sector, IoT has been adopted to improve quality of service, enhance energy
conservation, support predictive maintenance, and foster informed decisions on investment
(Winson-Geideman & Krause, 2016). Through IoT, firms such as Victory Offices are able to link
to customers beyond the initially targeted geographical locations. On the other hand,
digitalization is an unavoidable wave in business operations. The world is being engulfed in Big
Data era and the automation of business processes is becoming inevitable (Krotov, 2017). Key
real estate players have revitalized and invested on digital marketing as opposed to traditional
methods, the use of collaboration as opposed to individualization, and the use of data analytics
and computer and mobile applications as opposed to manual approach to process management
(Winson-Geideman & Krause, 2016).
Reflection on Organization
As noted before, Industry 4.0, Internet of Things (IoT), and digitalization have impacted
businesses in the real estate sector irrespective of their scale of operation. These factors have
equally changed the operational approach at Victory Offices. The first evidence revolves around
the manner in which the company is managing its customer-business relationship. Through
technology, the firm has diversified the process of sales and marketing by bringing the services

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closer to targeted customers through digital interventions in social spaces (Victory Offices,
2019). The insights received from the feedback from customers have been used to create
analytical trends to improve service and product management. In this case, the company has
remained competitive in term of service innovation and product improvement. In Australian real
estate industry, Victory Offices has managed to scope both the product excellence award in 2017
and the service excellence award in 2018 (Victory Offices, 2019). With a sophisticated and
attractive website and social media presence, the firm has intensified its digital presence across
different platforms to improve accessibility of their services. At the same time, the company has
different operational tools that cut across different departments. Technology-based applications
are meant to enhance workforce efficiency. For example, the company has incorporated
digitalization of service and processes to improve operation (Victory Offices, 2019). Some areas
include inventory management, billing and invoicing, bookings, routine building maintenance,
and workforce coordination. However, in the process of adapting to the emerging changes
relating to modern technology, the management at Victory Offices has experienced significant
challenge emanating increasing cost of technology and increased demand for professional skills
and expertise. The diagram below represents the concept of digitalization currently at Victory
Offices.

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Figure 1: Current Digitalization Business Model at Victory Offices (Source: Designed by
Author)
Priority Areas in Need of Improvement
While the management at Victory Offices has been keen to enhance its operation in line
with the competition in the market and their value proposition, there are critical loopholes that
require adjustment. The company acquires real estate spaces either through purchase, lease, or
rent, and then they modify the designs, equip these units with necessary infrastructure, and offer
the final product to potential customers. In this case, the business requires more than meeting the
anticipated order quantifiers to remain competitive in the market (Hill & Hill, 2009). The current
digital marketing campaign has little influence on conversion owing to the stiff competition in
this niche. On the other hand, there is little emphasis on how digitalization of decision-making
process could improve market expansion and customer acquisition based on data analytics. The
company has targeted different location in Australia; however, there is high potential in
globalization of services (Victory Offices, 2019). According to Hill, meeting quality needs, cost
expectations, and service level in a competitive market do not guarantee an excellent competitive
Operations
Management
Customer
Management
and Interaction
Inventory
management,
billing and
invoicing,
bookings,
routine building
maintenance,
and workforce
coordination
Website
Social media
Mobile
Applications
Stream Media
Victory
Offices
Model
Product Improvement
Service Innovation

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advantage (Hill & Hill, 2009). In this case, Victory Offices needs to think beyond the ordinary to
enhance their service and product scope as well as the market price to attract more sales and
customer base in Australia and beyond. According to the Order Winners and Order Quantifiers
Model, Victory Offices have the following deficiencies.
i. Inability to improve quality beyond market expectations through product and
service innovation.
ii. Inability to expand service scope as a service level strategy based on customer
analytics to enhance sales and profits.
iii. Inability to digitalize the decision-making process to incorporate the use of Big
Data to predict future trends and make necessary present amendments in term of
cost adjustments.
Task 1: Section 2
Application of Digitalization to Improve Operations
The challenges facing corporate entities especially in line with changes in the external
and internal environment could be solved through the digitalization of the operations. There is a
significant disparity between partial and total digitalization and companies in these two states of
change cannot be associated with the same magnitude of benefits. When the management is
committed to the implementation of digital innovation and improvement of operations then there
is a high probability of enhanced performance, competitive advantage, and faster growth. For
example, McKinsey Organization found out that the revamping of the digital channels linking
property to casualty insurers in North America reduced the rate of call center demand by more
than 30% (McKinsey, 2016). At the same time, proper management of call center teams cut
down the workload by 25%. The combination of the changes made in the two-dimension of

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operation in the call center services has therefore enhanced service efficiency and reduced the
cost of the same in North America (McKinsey, 2016). The same case could be equally witnessed
in Victory Offices when a proper framework is enacted to enhance order winners while at the
same time maintaining order qualifiers.
Moreover, through digitalization, the management is guaranteed of a flexible adaptation
to change, optimization and scalability of the IT infrastructure, efficient and sustainable use of
resources, improved market targeting, automation of sales management, advanced knowledge
management to foster customer satisfaction, talent traceability, and digital control of service and
product management. For example, TOMS, a company that ventured in shoes and supporting
needy children by matching each purchase made sought to expand globally by launching
multiple units (Deloitte, 2012). However, they lacked a robust digital framework to inspire this
change. Therefore, Blake Mycoskie partnered with Deloitte to create a digitalization strategy to
achieve this goal. TOMS registered a transformative change through this strategy, which
changed the human resources approach, product development, brand image, sales, customer
service, and marketing (Deloitte, 2012). Through innovation, research, and development, Victory
Offices could also witness such a transformation while expanding into international markets.
Successful Implementing of Digitalization Strategies and Models
A critical evaluation of the Victory Offices’ digitalization model showed three significant
areas of limitations that require change. Digitalization process has several prerequisites to be
met, which forms part of the essential requirements. The first requirement is the development of
a strategy to inspire change. Once a strategy is in place, there is need for a structural
organization, which should be supported by a comprehensive and appropriate business model
(Loebbecke & Picot, 2015). Moreover, the management should ensure that there are established

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agile methodologies for service and product innovation. The final requirement is the existence of
a flexible but robust IT infrastructure (Dijkman, Sprenkels, Peeters, and Janssen, 2015). For an
organization to achieve these five essential requirements it must undergo three critical stages of
digital transformation to pave the way for implementation. The first process in evolution, which
is a slow but steady occurrence, followed by an abrupt restructuring called revolution and finally,
setting up of the desired digital unit. For the case example of Victory Offices discussed in
Section 1 above, the company is the revolution transition but is yet to optimize its digitalization
strategy.
It is important to note that digitalization changes are complex processes that required
advanced measures and approaches to rejuvenate the performance of a company. Different
digitalization models or approaches have been developed to assist the firm to maximize its order
winners and sustain their order quantifiers (Loebbecke & Picot, 2015). Design Thinking and
Lean Start-up frameworks are essential methodologies when developing a new or improving an
existing digital business model. Design Thinking is important when addressing customer
problems where the initial stage is to define the existing challenges in line with the market
targets observed. The next step involves the formulation of hypothesis from the insights gathered
from market analysis. At this level, the business is shifting the focus from customer problems to
customer solutions and this is where Lean Start-up comes to the picture (Dijkman, Sprenkels,
Peeters, and Janssen, 2015). Brainstorming of ideas paves the way for experimentation with a
decision to pivot or preserve. However, since it is not always straightforward to find an
appropriate strategy, the management is bound to build and iterate different prototypes and
subject the outcomes to comprehensive measurement to determine appropriate option. The

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organization, therefore, enters an iterative learning stage to achieve the perfect framework that
supports both order winners and order qualifiers (Hill & Hill, 2009).
Potential Digitalization Risks and Mitigation
Any change process in business is associated with risks and challenges amid the
numerous benefits attached. A firm such as Victory Offices that require advanced digital
strategies to improve order winners should pay attention to these risks. The primary challenge is
capacity in terms of skills and resources (Krotov, 2017). Automation comes with security and
privacy issues that require experienced professionals to implement, monitor and maintain the
system. The problem of limited capacity should be addressed during the planning stage through
comprehensive market research and analysis to determine the factors to be considered when
developing the strategy. On the other hand, implementation of digitalization process creates a
transition that is different from the existing culture of the organization. In this case, it is possible
to experience loss of jobs emanating from automation as well as new scope of job descriptions.
Transition challenges could be solved through a step-by-step framework of implementation that
incorporates all stakeholders affected by the change process (Gerpott & May, 2016). Moreover,
another risk is the issue of cost. While the objective of digitalization is to enhance efficiency and
reduce costs, it is not always the case for all organizations that undertake this initiative. The risk
of possible cost escalation could be solved through benchmarking and proper cost-benefit
analysis.

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References
Deloitte. (2012). Deloitte Digital Case Study: TOMS – Giving back globally via B2C. Available
at: https://www2.deloitte.com/am/en/pages/technology/articles/deloitte-digital-case-
study-toms.html
Dijkman, R. M., Sprenkels, B., Peeters, T., Janssen, A. (2015). Business models for the Internet
of Things. Int. J. Inf. Manag., 35, 672–678.
Gerpott, T. J., & May, S. (2016). Integration of Internet of Things components into a firm’s
offering portfolio - A business development framework. Info, 18, 53–63.
Hill, A. & Hill, T. (2009). Manufacturing operations strategy. 3rd Ed. Palgrave Macmillan:
Hampshire, England.
Iansiti, M. & Lakhani, K. (2014). Digital ubiquity: How connections, sensors, and data are
revolutionizing business. Harv. Bus. Rev., 92, 90–99.
Krotov, V. (2017). The Internet of Things and new business opportunities. Bus. Horiz., 60, 831–
841.
Loebbecke, C. & Picot, A. (2015). Reflections on societal and business model transformation
arising from digitization and big data analytics: A research agenda. J. Strateg. Inf. Syst.,
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McKinsey. (2016). Transforming operations management for a digital world. Business
Functions, McKinsey. Available at:
https://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/
transforming-operations-management-for-a-digital-world
Victory Offices. (2019). About Victory Offices – Company Profile. Available at:
https://victoryoffices.com.au/about/

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Winson-Geideman, K. & Krause, A. (2016). Transformations in Real Estate Research: The Big
Data Revolution. In Proceedings of the 22nd Annual Pacific-Rim Real Estate Society
Conference, Queensland, Australia, 17–20 January, 17–20.