Impact of Digitalisation on Organisational Success: A Case Study of Tesco
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This research aims to identify the impact of digitalisation on organisational success, with a case study of Tesco. It includes a literature review, research methodology, and recommendations for effective utilisation of digitalisation in the workplace.
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To identify impact of the digitalisation on organisational success
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Abstract Impact of the digitalisation has been identified within all most organisations as it contributing in minimizing operational cost of the organisation and also improving their work efficiency. This research has mainly relied on the cross- sectional data. Research use the data from primary and secondary sources. Main purpose of this research is to identify impact of the digitalisationinbusinessperformanceandhowdigitalisationcanbeimprovedwithin organisation. For this researcher has conduct a survey in which he collected the required data of significant information regarding impact of the digitalisation in the organisation. Our finding indicate that digitalisation has impacted the organisation in positive manner as it has made it easy for them them to product more in a very cost effective manner.
Table of Contents Abstract...........................................................................................................................................2 Chapter 1: Introduction...................................................................................................................2 Chapter 2: Literature Review...........................................................................................................4 Understand concept and significance of digitalisation in business.............................................4 Determine the impact of digitalization on organisation performance.........................................5 Recommendation for an effective utilisation of the digitalisation in workplace........................6 Chapter 3: Research methodology...................................................................................................7 CONCLUSION..............................................................................................................................11 References:.....................................................................................................................................12 1
Chapter 1: Introduction Digitalisation has been considered as utilisation of the digital technologieswith the motive to change business model & provide new revenue & value producing opportunities. At the organisational level, approach to the digitalisation remains a reactive one. Mostly business organisation play catch-up(Adisa and et. al, 2022).Companies adopt new or innovative technologies in order to remain relevant & competitive.Organisation consider in this research project is Tesco that is a multinational retail organisation that detail globally. This research will include understanding of the digitalisations. Along with this, respective research will discuss howdigitalisationimpactthebusinessperformanceandatlast,itwillprovidefew recommendation through which, organisation can improve their digitalisation within workplace. Background of the organisation Tesco is a general merchandise and British multinational grocery retailer with its headquarter within Welwyn Garden City, England, UK. Respective organisation has been considered as 3rdbiggest retailer across the world wide measured by the profit & 9thbiggest retailer globally measured by the revenues. Tesco was founded by Jack Cohen during 1919. Tesco operates the stores which offer the grocery product, general merchandise and other non food items. It has diversified its services into different areas such as clothing, books, retailing, petrol, telecoms, furnitures, electronics and financial services. Apart from this, respective firm operates dunnhumby that offer the consumer insight and its applications services for the decisions making to its clients. Problem statement There are various retail organisation that provide service at global level. But since last some years, it has been observed that production cost of retail organisations has been increased and operational efficiency also goes down as companies are using old tradition method. Therefore, this research has been conducted with the purpose to understand need of the digitalisation as it help the organisations to improve its operational efficiency and save cost as well. Aim-Tounderstandconceptofthedigitalisationalongwithanalysingitsimpacton organisational success in context of Tesco objectives 2
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To understand concept and significance of digitalisation in business To determine impact of the digitalisation on organisational performance To provide recommendation for an effective utilisation of the digitalisation in workplace Rational of the research Main purpose of this research is to make the organisation to understand significance of digitalisation and how by adoption ofdigitalisation, anorganisation can overcome its problem of increased cost. When it comes to personal context, then respective research will help the researcher to understand how digitalisation help the organisations in making their business practice more smoothly. Research questions What is digitalisation and why it is significant for the businesses? How digitalisation impact the organisational performance? How digitalisation can be used effectively within workplace? 3
Chapter 2: Literature Review Understand concept and significance of digitalisation in business According to Mark Sen Gupta, 2020, digitationmeansto creating digital representation of the physical attributes or objects.For instance, individuals scan the paper documents & then save it as digital document like PDF. Put differently, digitalisation is allabout converting the non-digital things into the digital representation.Computerized systems can utilize it for different use cases.digitalisation has been considered as foundational. It is the a between the software and physical world. digitalisationis an automation of the manual & paper-based procedure,empoweredbydigitalisationofdifferentinformation.Digitalizinganybusiness organization provides a benefit of doing the things better, cheaper and faster. In the success of a business organisation, digitisation has various significance which are mentioned below: Createidealenvironmentforthebusinessgrowth-Ithasbeenidentifiedthat digitalisation allow the business to build a loyal or high customer base through the efficient process. A better customer engagement & automated workflows practices enable the organisation to expand & diversity. For instance, a business that is devoid of the online presence help in generating the leads through word of mouth & retail outlet. But, through developing the robust & optimized website, the organisation can be a magnet to more customers. EmpowersWorkforce-Digitalisation&technologicaladvancementshelpthe organisations in empowering their workforce. Organisational employees can have better regular productivity withmore streamlined & quick workflow. Perhaps,employees might nowadays be able to produce outcome faster & with more effectualness. This means that employees can capitalise on efficiency(Hahn, 2021). Reduce costs-Nowadays, organisation or companies are carrying out the low cost experiments which were imposable in past. Digitalisation has allow this. Now it become more manageable or easy to set objectives & test them in the know risk situations. According toAnnarelliand et. Al, (2021),digitalisation has been considered as process of converting the information from normal form into the computerized or digital formate. This formate demonstrate the data which is represented as bytes or bits. It has been identified that 4
digitalisation hep the business in improving its consistency, process and quality. Therefore, there are some significance of digitalisation, mentioned below: Better resources management-It is very significant for every business organisation to have appropriate resources that maximize their resources for an optimal growth and labour and capital to the inventory and suppliers. Therefore, internet of things is very helpful for the business when tracking their resources in the near real time, given greater visibility into how resources are exploited & where an improvement is required. Better digital presence-In today's digital age, business organisation must have a strong online presence as a solid digital presence help the company to drive lead and also strengthen their brand awareness among the customers. Tesco also has a well designed websiteand active on the social media platforms that help it in engaging with its customer through online(Loske and Klumpp, 2021). Determine the impact of digitalization on organisation performance As per view point of Lakshmi Shastry (2021).Digitalization is a process to convert information in digital format. It is a process in which digital technologies are used to change business model and to provide new opportunities. Digitalization is not a new concept every type of organisation is adopting the process of digitalization to stay updated and to provide better product and services to the customers. Tesla is a retail company in which their are large number of customers and demand of every customer is different, so to fulfil the demands of the customers and to provide them better service Tesla is adopting the omni channel in which they can sell online and offline both. Due to digitalization many changes has come in consumer buying behaviour, individuals are shifting towards the e-commerce which affect the offline businesses. Their is so much of competition in retail business customers, have available the wide variety to choose from and also with that customer needs and demands are changing frequently. To meet the demands and needs of the customers companies take the help ofdigitalization and predict the demands of the customers, purchasing pattern, trends forecasting all these are part of data analytics. Companies also use internet for effective and smart marketing. While competition is increasing rapidly it is very important for organisation to stay connected with customers and to build a strong network in this digitalization is helpful for organisation(Rashid, 2022). According toPatil and et. Al,(2022),Organisations are investing in digitalization to meet the trends of the market. Digitalization has great impact on customers buying process 5
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because now customers are getting the facility of online shopping which make customer services effective and better and all this is possible with the help of Artificial intelligence. With the use of all customers can get all answers about their query online and sellers can also pay special attentionon its customers. Along with that digitalisationmakeimprovementin business operations also. With the help of Digitalisationcompany make changes in its working process which cause effective usage of resources, less errors because less human resource is required and this will reduce the cost also. Digitalisation brings new opportunities for the business and also generate new employment opportunities like need of data analyst, Employees related to IT sector, All powered person which can provide the customer service and improve the purchase value, as well as with need of new employees revenue of organisation will also increase because sell of the company will increase. Recommendation for an effective utilisation of the digitalisation in workplace According to David Roe, (2017),Digital workplaces, & by extension, the digital transformation, are not merely about the technology. It is all about fundamentally dynamical the way people or organisation work. There are few recommendation to use the digitalisation effectively in workplace. Employee right people-It is suggested that organisations should employ individuals with a right attitude & talent as it is center point of the collaboration & digital workplace success. Workers should have a positive mental attitude & mindset which accepts all the communications must be implemented digitally. Adopt Agile Tools-Allfunctioning of the digital workplace is supported by the agile tools in order to boost productivity & collaboration. most of such modern tools or techniques are designed for digital workplace. Once more, approach tool selection with a individual-first mindset, so that job which needs to be done guides the decision, not a fancy functionality set. 6
According toBillett, (2021),digitalisation provide the organisation with an opportunity to reimagine a way their business is operate trough the new digital processes & tools. Therefore, in this context, there are few suggestions, mentioned below: Create change leadership team-Organisations should create a change leadership team that allow the companies to take proactive approach to digitalisation initiatives which focus on individual aspect of the changes. It will also help them creating a vision for the digitalisation which align with organisational goals. Hire digitalisation consultant-Companies should hire the digitalisation consultant who will provide them with a comfort of the professional and have done this before & have a knowledge about what the are doing. Ir will provide the companies with a framework for finding success, with the track record to back this up. Chapter 3: Research methodology It is defined as a way to systematically resolve the research problem. It comprises the theoretical examine of body of the methods & principles linked with branch of the knowledge. In other words, it encompasses, the concept including theoretical model, qualitative or quantitative techniques, phases and many more(Rogeon, Michaud-Trevinal and Collin-Lachaud, 2022). Research philosophies-Itrefers to a set of beliefs that is mainly concerned with nature of the reality being examined. This is an underlying definition of nature of the knowledge. Research philosophies can be different bases one goals of the research. There are two types of the research philosophies- inductive & positivism. In context of this research project, researcher has chosen the positivism research philosophy as it adheres to view that merely “factual” knowledge gained through the observation, involving measurement, is trustworthy. Another reason to choose the positivism is that respective study is based on the quantitative research. research approach-After selection of the appropriate methodology, investigator are suggested to pick befitting research. In this there are two approach- inductive and deductive. Inductive approach start with the observations which the investigator uses in order to create new theory. In contrast, deductive approach, start with the particular hypothesis development on the basis of literature review which has been noticed by the investigator. In context of this research, investigator has chosen the deductive approach it help the investigator in explaining the casual 7
relationship between concept & variables. Along with this, it also facilitate possibility to measure the concept quantitively. Research Strategy-It is all abouthow researchers intends with the motive to carry out their work. Research strategy include various approaches, including case study research, experimental interviews, research, action research, surveys, and a systematic literature review. In this research, investigator is going to conduct a survey research strategy as it is useful & legitimateapproach to the research project. It is beneficial for the research when describing & exploring the variable & constructs of the interest. Apart form this, this methods will also allow the investigator to gather a large among of the information or data within short time period. Additionally, it is less expansivemethodsascomparedtotheotherdatacollectionmethodsortechniques. Choices-Itoutlined in research onion involve mono method, mixed method, &multi-method . Mono-method include using only one research approach for study. Mixed-methods required use of mainly two or more methods of the research. In the multi-method, a broad selection of the methods is exploited(Satzger, and et. al.,2022).In context of this research, investigator has identified that mono methods is most suitable. This is because, this study is based on only quantitative research and mono method is suitable when using merely one kind of the method- quantitative & qualitative methods. Time Horizons-in this framework,project is intended for research completion. There are mainly two kinds of the time horizons in research onion- cross sectional & the longitudinal. Cross sectional time framework has already established, wherebydata or information must be gathered. Whereas, longitudinal time framework is used when data collection refers to collection of the data repeatedly over the extended period. In this research, investigator has chosen the cross-sectional time horizon as respective study is taking place at a single point in the time. Along with this, it is not involving the manipulating variables and also allow the investigator to look at several characteristics at once. Data Collection and Analysis-Itis dependent on methodological approach utilized. The procedure used at this phase of research contributes importantly to the research's overall validity & reliability. Regardless of approach exploited in research, kinds of the data collected can be separated into mainly two types: primary & secondary.When conducting this research, then researcher will take use of both the primary and secondary data as when conducting survey then researchwillcollectfirsthandedinformation.Alongwiththis,whencollectingother 8
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information, research will uses the help of secondary data and collect the data through some other sources. Research Design-It refers to adescription of how research procedure will be attained. This framework includes considerations which led to an appropriate methodology being used, the way in which participant or respondents were chosen, & how the information or data will be examined.Therearemainlythreekindsoftheresearchdesignincludingdescriptive, experimental & exploratory. In context of this research, investigator has choose the descriptive research as respective study is based on the quantitative research. Another major reason to choose this type of research design is that it will help the researcher in describing the specific phenomenon. Sampling- In this procedure, research worker choose a sample form a large population or group of people. They execute this process through probability & non- probability method of sampling. Therefore, in context of this research, investigator has decided to collect data based on the random method. In this, researcher will select probability of all individual equally so that bias- ness can be eliminated. Limitations When conducting this research, then researcher had faced some difficulties in collecting primary data as it take a lot of time to identify the right respondent and gather appropriate information from them. Apart from this, An issues related with lack of the resources has been also faced as it is quite complex to select appropriate research article and journals. At last, researcher has also faced issue of the finance as this study require a huge amount to conduct as research due to which investigator had managed the cost to conduct this research properly. Ethical issues & consideration First and most basic ethical issues in research is invalidity of the research questions (Trincă, Nistor and Stegerean, 2021).If in case research question will not match with research conclusion then it will be considered as violation of the etherial consideration. Therefore when conducting this research then investigator has ensure thatthe conclusion is matched with research question that asked in beginning. 9
Confidentiality of the information given by the respondent is another ethical considerate (Svatoš,2021).Hence when conduction respective research, the investigator has ensured that respondent's identifying information or other data is not mentioned on research report & other published documents. As it has been analysed that participant must be aware about nature of the study & risk associated with the study. Therefore, in context of this research, investigator has make ensure that if there is any risk related to the psychological or physical and respondent are getting stressed, then this study will suspended. 10
CONCLUSION From the above report, it has been concluded that nowadays, digitalisations is becoming mostcrucialaspectinbusinessorganisation.Thisresearchprojecthasestablishedan understanding of the digitalisation and how it impact the organisational performance. Therefore in this research it has been identified that companies like Tesco adopt digitalisation with the motive minimize operational cost and human errors. Thus, by adopting the digitalisation, business organisation can use latest and cost effective technology. Along with this it also helps the company to improvement in its working efficiency. At last it has recommanded that organisation should take various step to make digitalisation more effective so that business goals can be attained efficiently. 11
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References: Books and Journals Adisa, T.A. and et. al, 2022. The Acceptance and Practicality of Digital HRM in Nigeria. In HRM in the Global South(pp. 347-370). Palgrave Macmillan, Cham. Annarelli, A.and et. Al,2021. Literature review on digitalization capabilities: Co-citation analysis of antecedents, conceptualization and consequences.Technological Forecasting and Social Change,166, p.120635. Billett, S., 2021. Mediating worklife learning and the digitalisation of work.British Journal of Educational Technology,52(4), pp.1580-1593. Hahn, K., 2021. Epilogue: Social Digitalisation Theory Encapsulated in a Cup of Coffee. In Social Digitalisation(pp. 281-292). Palgrave Macmillan, Cham. Loske, D. and Klumpp, M., 2021. Intelligent and efficient? An empirical analysis of human–AI collaboration for truck drivers in retail logistics.The International Journal of Logistics Management. Patil, A. and et. Al, 2022. Roadmap of Digital Forensics Investigation Process with Discovery of Tools.Cyber Security and Digital Forensics, pp.241-269. Rashid, M.H.U., 2022. Dynamic capabilities, digital innovation and sustainable transformation of social enterprises. InDigitalisation and Organisation Design(pp. 3-19). Routledge. Rogeon, F., Michaud-Trevinal, A. and Collin-Lachaud, I., 2022. Between fear of and desire for the digitalization of retailing: An initial conceptualization to understand the ambivalent reactions of shoppers.Recherche et Applications en Marketing (English Edition),37(2), pp.47-75. Satzger, G. And et. al., 2022. Servitization and Digitalization as “Siamese Twins”: Concepts and Research Priorities. InThe Palgrave Handbook of Service Management(pp. 967-989). Palgrave Macmillan, Cham. Svatoš, O., 2021. Digitalization in retail banking. InArchitecting the Digital Transformation(pp. 367-382). Springer, Cham. Trincă, V., Nistor, R. and Stegerean, R., 2021. DIGITALIZATION IN A POST PANDEMIC ERA.Managerial Challenges of the Contemporary Society. Proceedings,14(1), pp.66- 75. Online GuptaM.S.,2020,digitalisation(ONLINE)availablethrough <https://www.arcweb.com/blog/what-digitalisation-digitalization-digital-transformation> Shastry L., 2021.The Growing Role of Digitization in the Retail Industry.[Online] available through:<https://www.indianretailer.com/article/technology/digital-trends/the-growing- role-of-digitization-in-the-retail-industry.a7308/> Roe.D,2017,waystoimprovethedigitalworkplace(ONLINE)availablethrough <https://www.cmswire.com/digital-workplace/11-ways-to-improve-your-digital- workplace/> 12