Impact of Digital Technology on Organisational Development: A Case Study of Tesco

This report discusses the impact of digital technology on organisational development with a case study of Tesco. It covers the innovations and digital technologies used by Tesco, their impact on organisational development, and the impact on data and knowledge management.

Digital Portfolio

INTRODUCTION
There are regular changes seen in the business environment. The present era is of
digitalisation. The use of latest technology is enhancing the business operations and they are able
to carry on the business operations effectively. Digital technology can be defined as the use of
electronic tools, devices, resources, systems that help to manage the information of the company
and take necessary decisions for benefit of company (Gebayew and et.al., 2018). This report is
based on digital portfolio of Tesco. It is a multinational British organisation that was
established in 1919 by Jack Cohen. The company uses latest technology in the market that helps
them to gain advantage over the competitors. Tesco is third largest retailer in the world measured
by gross revenue. This report is based on innovation and digital technology being used by
company. Afterwards, there is discussion related to impact of digital technology on the
performance of the development of the organisation. The pros and cons of the updated
technology used by the business organisation. There is key role of digital technology on the
knowledge management of the company.
MAIN BODY
TASK 1
Organisational overview
Tesco is a British Multinational organisation that has its headquarters in England. They are
groceries and general merchandise retailer who use latest and updated technology. The company
was established 103 years ago in 1919. There are around 367,321 employees served by company
and they are provided effective working environment. They have around 4,673 shops around the
world (About Tesco, 2021). Tesco works on analysing the trend in market and are able to capture
the opportunity. They are leading retailers in the market and have competitive advantage over
Morrioson’s, Asda, Sainsbury’s. they use the digital platforms in effective manner that helps
them to reach more customers and attract them towards the brand.
Innovations and digital technology of Tesco
The company is serving the customers through online platforms since 2000. It is seen that
in UK the customers like to get the products delivered at their homes. Tesco is one of the leading
retailer providing the facility of Tesco direct to deliver the products to the customers directly.
The online grocery channel helps the company to cover good market share in UK. The use

digital marketing is also done by the company. The company works on analysing the trend in the
market and use the same to reach more customers. Tesco uses social media marketing channels
such as Facebook, Instagram, Twitter, Pintrest, You Tube to make awareness regarding the
brand. There is key role of all these social media channels in enhancing the sales of the business
organisation. At the same time, they use of search engine optimisation, content marketing and e-
mail marketing that assist them to enhance the brand image of the company (Ziyadin,
Suieubayeva and Utegenova, 2019). The company was successful at the time of Covid-19 as
well. They delivered the products to the customers on time and provided proper packaging
facility. Tesco provided the option of self-check out points to keep their customers safe and
healthy at the time of Covid-19.
Digital innovation:
Digital innovation involves use of latest virtual technology to remedy present enterprise
issues and change organizational practices. It is a tough procedure that allows adjustments of
industries and allows companies live applicable and competitive. success virtual method covers
virtual modernization tasks such as: Switching from analog to virtual processes Implementation
of latest software program and structures Development of a brand new knowledge and
information technology Cloud migration Automation, connectivity, and information analytics
Every company desires to innovate to enhance functioning competence, patron engagement and
release a success new products (Yousaf, and Yarovaya, 2022). With the proper people,
processes, and structures in place, you could pressure virtual revolution for your company to
create a portfolio of troublesome processes, products, and offerings and release high-fee tasks.
To get commenced with virtual innovation, an organisation wants attention on the ensuing
fundamentals – people, procedure, platform, and portfolio.
Digital Innovation in Tesco:
There was very much innovation in history and per the industry grows many new
implementation were also done in the company in organisation as per continuous growth they
required to adapt through changes (Raita, K., and et.al 2019, the company continuously applied
changes and inn the pandemic era also Tesco tried new innovations for the development process:
Tesco Creating Its Own Mobile App & Contactless Delivery System:
Tesco groups confronted the occurrence of the pandemic with shape of reduced income
and revenue in the organisation, Tesco targeted in its virtual approach to permit its clients

to location orders by Facebook Messenger, Twitter, and Alexa, the use of application
technology. Investment in very own app of tesco resulted huge advantage and contactless
shipping gadget led to growth in their purchasing in the virtual world (Fallat, 2020) .
Retail Giant Target Investing in Its Mobile App:
To achieve and inspire greater on-line shopping, boom loyalty offers for their previous
customers, and permit cellular fee to keep and on-line purchases and shopping, Target
focused on all it’s in the app into one App (Hamad, 2018). Post the virtual retail alteration;
clients should use the equal app for on-line purchasing for both transport or pickup, in-keep
navigation, coupons, and loyalty rewards for existing and long term consumers. It similarly
up to date its structures instantaneously, so the retail projects and large became the use of the
equal back-cease era for each cellular and in-keep spending with the company.
Implementation of a digitalized in-store experience:
To improve efficiency of Tesco it introduced different operating model, Tesco invested in
digital in stores and new outlets, Scanning as shopping hand handling devices and self-check
outstations are placed oppositely to the usual employment check out stations to provide
customers are better experience in technology. perform check out function without
environment of Tesco employees and cashier From a business and customers operating
system model it is resulted that it if efficiency cause savings as fuel employees are required
to perform a professional check out how were self- checkout give more functioning than
Traditional method of check outs (Voronov, and Ivanov, 2019). without employment of
Tesco employees the business can functions more smoothly and lack of employees can lead
to various circumstances let's go is combating with theory with digital received technology
which have a specialised camera itself checkout stations and give alerts to the customers
about irregular activities. In the process of digital innovation Tesco established is video
camera such as broccoli cam and different systems of Fresh Food else and sending instant
messages to the employees in immediate replacement and inventory systems for Efficient
management of Tesco stores.
TASK 2
Innovations and digital technologies affect organisational development
There are many innovations that are made for organisation developments and planning the digital
innovation strategy made in organisations capable of growth and development even in the

pandemic like situation (Son, 2019). Digitalisation caused and revolution in industry which
resulted and in expanding business come globally and increasing competitiveness of the
organisation sustainably. Due to digitalisation work force between more effective and you to
digitalisation machine swear more increasing able to perform tasks which were bot possible
humans couldn't do by traditional methods. Some innovations that were effected in organisation
of Tesco are:
Create a Digital Innovation Team
Creation of small and focus team of digital innovation is made by Tesco which consist
high performing individuals from different departments who committed to deliver a good value
to the organisation for digitalisation of the business and giving learning training and Planning
function for employees team is focused in identifying the shortcomings of your existing business
and processes that they are trying to solve true and effective digital innovation (Dolzhenkova,
and Iurieva, 2019). Tesco assign small groups the data and results of competitive analysis which
gives digitalisation process to function properly in the test market. The organisation of
digitalisation functioning activities in the market of Tesco is mainly focused by these groups in
innovation sector.
Adopt an Agile Experimentation Model
Changing in technology at a rapid phase this created a huge adaptation model for Tesco
to adopt and making agility a critical aspect of the organisation strategy in 2021 in a
experimentation model organisation are able to adapt to new customer needs and continuously
challenges the periodical change approaches to the problems over time. Is Tesco face many
different problems and depends when rising of innovation is taking place (Noël, 2018). The
effect of digitalisation was in Tesco that it created many different brainstorming experimenting
and fast Track with two adapt digital innovation. The Agile experimentation Model was
developed by organisations to adapt to new customer needs and that they are challenged
periodically over change approaches and problems overtime.
Invest in New Software & Technology
Investing in new software’s and Technology for any business is very important as growing
digital competitiveness and Organisation must invest in new software and digital technology to
improve their operation efficiency the right Technology will help the business to unify the
business needs and input Team Management collaboration cloud access and product life cycle

monitoring as core business concepts for the business (Lobb, 2021). Tesco invested huge amount
of investment in new software’s and Technology they created their delivery apps and shopping
apps for customer need and full fill market demands.
Efficient use of technology by Tesco will lead in good team management and collaboration with
vast amount of consumers and companies. With investment in new software’s and Technology
there is no limit for location and reach to consumers.
Create an ROI or Value-Added System for Prioritizing Projects
By the efficient use of digitalisation and innovative technology and Organisation can generate
good amount of revenue from project this needs to create a good value added system for high
digital innovation return on this kind of value added system in their project (Colás-Bravo,
Magnoler, and Conde-Jiménez, 2018). Because of this value added system Tesco priority the
projects that will make biggest impact for both short term and long term goals with digital
technology in performance of organisation.
Create a Digital Adoption Strategy for New Processes and Tools
Created a well design specific digital adoption strategy to make the most of the
technology investment productive for the organisation results. Adopted or Digital adoption
solution for two trains and on board employees as very digitalization employee needs could
amount of training to gain success in the market and work with new innovative machinery. By
the help of this solution organisation can main manage sudden change efficiently without losing
productivity in the transition phase. This adoption strategy helps in empowering employees and
Learn how utilization will affect in the flow of work this includes providing in app guidance,
new digital process and Technology for remotely working employees.
TASK 3
Innovations and digital technologies impact on data and knowledge management.
There are many innovations and organisation is adjusting to the process of it. Many
businesses are yet to be compatible and adjusting with the digitalisation process many businesses
have already converted or invested in new Business models considering communication music
eBooks and online shopping this change will not be lose and by any industry Tesco is also
investing in type of industry and trying to get competitive results in the market organisation may

run more effectively save expenses and boost production to get advantages from digitalisation in
business. The advantages of digitalisation are as follows:
Streamline Processes:
One of the basic advantages of digitalisation is every business continuously Looks for
innovative methods to prove efficiency and digitalisation gives those needs. When a business
process is automated the reliability of outcomes increases and Organisation achieves more
transparency and fairness in the work environment. Tesco has efficiently used in the market
process and stores to get well results by given time effort and money to achieve cool as one of
the significant advantages that does co has got from digitalisation is that it reduces time to
complete the task.
Higher Productivity:
Automate manual process of digitalisation free employees from regular jobs
responsibility and tasks and let them focus on more difficult and innovative measures, that will
help business to function more efficiently and give more productive results. Tesco applied more
automation systems that have can be done faster with lesser mistakes and the automation enabled
employees to make better use of the time at work.
Reduce Operational Costs:
Every business have an objective to save its time and reduce operational cost the manual
task and process are slower than automated activities and process since they conducted one at a
time by the help of digitalisation organisation can do multiple tasks at a same time with a
reduced cost efficient system. Tesco adopted this strategy and result in saving production costs
with getting higher revenue with the help of digitalisation organisation can save up to 90% on
operational expenses.
Increase Transparency
As digitalisation give reports on financial billings collection and sales and other support
with other crucial information that an organisation needs transparency in business process is very
critical for long term successes if process and other reports are digitally monitor then employees
will have faith in management, which will maintain motivation in the work environment. Tesco
uses digitalisation methods for documentation and transparent work flow in organisation
visibility managers got less pressure about employees getting reports by the help of automation
and innovative Technology organisation can identify opportunities.

Quality and Consistency
One of the most important advantages of innovative measures in digitalisation taken by
organisation is that it guarantees operation will be carried out in resulting quality and defendable
results. Through help of automated customer service Tesco uses consumer quality support from
employees to reach customers every time. Because of assurance of quality inconsistency as well
as time efficiency or companies use this in innovative measures oftenly to produce more
products, which resulted in increase in manufacturing time and reducing cost as compared to
traditional methods.

CONCLUSION
From the above report it has been concluded that the use of digital technology is very
important for an organisation to grow and create impact in competitive market. It has been
concluded that company uses latest technology in market that helps them to gain advantage
over the competitors. The key role of the digital technology in an organisation is further
discussed in this report. With reference to an organisation the innovation done in digital
technology is been discussed. Further in this report the digital technologies that will effect
organisation growth and development are discussed like implementing and adjusting to new
industry of innovation in the organisation. At last of the report the topic of Innovations and
digital technologies impact on data and knowledge management is discussed which
elaborated the key elements that put impact on organisation while in the process of
development.

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Online
About Tesco, 2021. [Online] Available through: < https://www.tescoplc.com/about/ >