Impact of Digital Technology on Small Medium Enterprise Essay

UNIT 11 RP
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TITLE
“The impact of digital technology on small medium enterprise”
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Aim:
“To explore the impact of digital technology on small medium enterprise: Black penny”
Research objectives
 To determine the impact of digital technology in Black Penny.
 To evaluate the relationship between digital technology and growth of firm.
 To identify the tools of digital technology which can help in managing organisation
functions.
 To analyse the effective use of digital technology in Black penny.
Research Questions
 What are the impact of digital technology in Black Penny?
 What is the relationship between digital technology and growth of firm?
 What are the tools of digital technology which can help in managing organisation
functions?
 What all are effective uses of digital technology in Black penny?
Literature Review
According to Chaffey and Smith, (2013), it has been stated that digital technology plays a
vital role in enhancing the growth of small and medium enterprises. The technological
advancement has reached to the heights of success with the help of various tools like, cloud
computing, biometric system, face prima etc. This is considered to be the effective form for
raising the sales and profitability as it helps the business to reach out customers in effective
manner.
In addition, Wymbs, (2011), has stated that implementation of digital technology in small
medium enterprise plays crucial role as it assists the firm in making digital record of customer’s
information and details which assist the management in determining potential customers of
organisation. In accordance Järvinen, Tollinen and Jayawardhena, (2012), has stated that the
advancement assists the entities in managing internal business functions easily without any
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cheating and misrepresentation like, the tool which is bio metric system assist the organisation in
recording digital attendance of employees which helps in reducing manual work and on the other
reduces the chance of recording wrong attendance. Therefore, it is important for the enterprises
to implement the use of advanced technology in order to manage business functions effectively
which will further assist in attaining competitive advantage. Hence, in accordance it has been
determined that author believes the use of technological toll will assist in growth and
development of organisation.
As per Stone and Woodcock, (2014) many changes has taken place in relation with
technology. All these have supported the business to develop strong interaction with customers.
As per author communicating with buyers at online platform provides opportunity to understand
need of innovation in existing products and services. In order to attain this goal, business make
frequent innovations so that need and requirements can be met. When any product is promoted
by making use of digital marketing, then it provides the opportunity to management as they get
to know the preferences of people. When talking about social media, individuals can also share
their views and issues that are being faced in relation with the products or services. As per the
view, management can take up initiative to implement strategies so that they can make
improvement and meet requirements of customers. As per the views of Nambisan and et.al.,
2017, it has been determined that there are various benefits of digital advancement like social
media advertising, with the help of which the management of firm is able to target maximum
consumers with one click. Further, there is e commerce which enables opportunity to analyse
changing buying preferences of buyers by tracking down their regular orders.
According to Chaffey and Smith, (2013) productivity of the organization improves when
use of digital technology is done. This type of platform provides management with the
opportunity to communicate, make innovation and raise customer’s base. Further, it also
provides customers proper security in relation with personal information. These are helpful
enough to develop trust and confidence with services users and also develops positive perception
towards the organization. However, according to Cordrary, 2016, Mail chimp is an official
digital communication tool which emerged as opportunity for marketing team of small business
organisations. It is helping SME’s in connecting people via email campaigns. Further, there is
slack which communication tool for official team of company is. It offers easy problems solving
tool for team members irrespective of their locations.
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Reason for choosing this topic
The motive behind conducting this research is to evaluate use of different technological
tools such as information technology, internet, social media advertising, etc. Further, the reason
behind choosing digital technology is to enhance my own knowledge and understanding over use
of different digital tools in growth of SME’s.
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