The Impact of Industrial Internet of Things on Business Model Design

The assignment discusses the impact of Industrial Internet of Things (IIoT) on business model design, focusing on qualitative-empirical analyses. It also covers IoT adoption intention in logistics and supply chain management, as well as its applications in retail. The document references various research papers and online articles that highlight how IoT technologies are being used in retail today and changing the post-sale experience.

RESEARCH
PROJECT

Table of Contents
Title: “To analyse the role of IoT (Internet of Things) in enhancing operations in the context of
UK retail sector- A study on Sainsbury’s”......................................................................................1
CHAPTER 1: INTRODUCTION....................................................................................................1
1.1 Overview and background of the research.......................................................................1
1.2 Overview and background of the organisation.................................................................1
1.3 Rationale of the research..................................................................................................1
1.4 Research Aim, objectives and questions..........................................................................2
CHAPTER 2: LITERATURE REVIEW.........................................................................................3
Theme 1: Role of IoT in enhancing operations of retail businesses.......................................3
Theme 2: Impact of IoT in improving retail operations.........................................................3
Theme 3: Impact of IoT in increasing retail operations.........................................................4
Chapter 3: RESEARCH METHODOLOGY...................................................................................5
3.1 Research Philosophy........................................................................................................5
3.2 Research Purpose..............................................................................................................5
3.3 Research methods.............................................................................................................5
3.4 Logic and approach..........................................................................................................5
3.5 Data sources (primary and secondary).............................................................................6
3.6 Data collection strategy....................................................................................................6
3.7 Data population, sampling and sample.............................................................................6
3.8 Research instrument.........................................................................................................6
3.9 Analysis methods..............................................................................................................6
3.10 Research ethics...............................................................................................................7
3.11 Limitations of research methods....................................................................................7
CHAPTER 4 : Data analysis and Findings....................................................................................10
CHAPTER 5 : DISCUSSION........................................................................................................19

CHAPTER 6: CONCLUSION, RECOMMENDATION AND FURTHER RESEARCH...........20
6.1 Conclusion......................................................................................................................20
6.2 Recommendation............................................................................................................20
CHAPTER 7: REFLECTION........................................................................................................21
REFERENCES..............................................................................................................................22

Title: “To analyse the role of IoT (Internet of Things) in enhancing operations
in the context of UK retail sector- A study on Sainsbury’s”
CHAPTER 1: INTRODUCTION
1.1 Overview and background of the research
The digital technological in organisations is considered as a growing necessity. It breeds
innovation in business for providing best ways to manufacture and deliver products or services in
effective manner. It provides better avenues to retail sectors in maximising operations more
effectively. In relation to this, IoT paves the way to retail sectors for developing interaction with
customers, identify their needs and fulfil the same (Tu, 2018). This lead to boost sales
performance and generate more profitability in business. Therefore, through implementation of
such technology, companies dealing in retail customers at global level can retain potential
customers for longer period of time. This would help in giving a tough competition to other
organisations dealing in same sector.
1.2 Overview and background of the organisation
This present research is context to Sainsbury which is the second largest chain of
supermarkets in UK, having a share of near about 16.9% in same sector. It was founded by John
James Sainsbury and headquartered in London. It offers a wide range of products which includes
more than 30,000 branded items, among them 20% are labelled with own brand of Sainsbury.
Due to increasing competition in retail sector, Sainsbury faces issues related to gain
sustainability and maintain its position among other retailers (Gilchrist, 2016). Therefore, to
remain competitive it is essential for this company to implement digital technologies within
stores. It includes Internet of Things, which help in identifying preferences of customers their
needs as well as ways to improve operational functions for satisfaction the same.
1.3 Rationale of the research
Digital technologies are considered as the main key consideration for achievement of
business objectives. It provides various opportunities to organisations in increasing efficiencies
of operational functions and run business more effectively. In retail sectors, internet of things
also helps in monitoring inventories as well as transmitting data related to movement of
products. In context with Sainsbury, main vision of the company is to provide best services to
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customers for getting satisfaction of them. While to maximise productivity of business is its main
mission to achieve high competitive advantage. In this regard, present research is going to
identify how implementation of latest technologies in retail stores to give contribution in
achievement of business objectives (Ben-Daya, Hassini and Bahroun, 2017). The main reason
behind choosing this is to analyse the role of digital technologies like Internet of Things in
enhancing retail operations. Another reason behind making an analysis on this topic is to
evaluate how impact of technology is influencing retail sector up to a high extent. With the help
of thematic analysis, research will provide role of IoT in company. Along with this, the study is
focus on improving operations of retail sector by re-building IoT for maximising performance of
Sainsbury’s. It will describe how such technologies helpful in providing good services to
customers and satisfy their requirements. This research project assist in evaluating and
measuring the needs of digitalisation for developing retail market.
1.4 Research Aim, objectives and questions
This part entails aims and objectives of chosen topic in order to carry out research in
appropriate manner. Therefore, aims and objectives according to this topic are given as below:-
Research Aim: “To analyse the role of IoT (Internet of Things) in enhancing operations in the
context of UK retail sector- A study on Sainsbury’s”
Research Objectives:
 To develop understanding behind the role of IoT in Sainsbury’s operations
 To make deeper insights about importance of IoT in enhancement of operations of
Sainsbury’s
 To recommend ways to improve operations by re-building IoT for maximising
performance of Sainsbury’s
Research questions:
Q1. What is role of IoT in enhancing operations of Sainsbury’s?
Q2. Does overall operations in Sainsbury’s improves by implementing IoT?
Q3. Does performance of Sainsbury’s enhances after implementation of IoT?
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CHAPTER 2: LITERATURE REVIEW
Theme 1: Role of IoT in enhancing operations of retail businesses
As per the article given by Dan Mitchell, it has been evaluated that Internet of Things
refers to a network that connects entire physical objects with sensors (5 IoT applications retailers
are using today, 2019). It allows devices to communicate, analyse as well as share data via cloud
and network based software platforms. In context with retail industry, this technology includes
RFID tracking chips, digital signage, WI-FI tracking system and more. Along with this, it also
includes key applications for retailers which include smart-store applications, supply chain and
tracking devices. In context with Sainsbury, as it operates business in international level, where
many retailers are already run (Lee, 2017). Therefore, it is essential for this organisations to
develop distinctive competencies which are difficult for competitors to replicate. It would help in
increasing sustainability and getting high profitability as well. For this purpose, implementing
IoT technology, helps this retailer in taking advantage in these following main areas:-
 Predictive equipment maintenance is used to manage energy, predict equipment failure
and detect other issues.
 Moving merchandise more efficiently is considered as the main goal of Sainsbury which
can be completed by smart transportation applications (Friess, 2016). In this regard, IoT
technology include such applications which helps in tracking the entire process using
GPS system.
 IoT applications also allows Sainsbury to monitor sales opportunities in real-time
manner.
 This technology helps in identifying preferences of customers by monitoring through
WI-FI foot-traffic that helps in evaluating if consumers dwells over a particular area or
not. This would aid to customise the shopping experience and exceed satisfaction level
of customers also.
Theme 2: Impact of IoT in improving retail operations
According to the article given by Gill Hide, it has evaluated that today digital
technologies play major role in improving and increasing performance of a business (How IoT
Technologies are Revamping the Post-Sale Experience, 2019). It provides various ways in
improving and increasing internal capabilities of business for maintaining sustainability and
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getting high competitive advantage. For increasing customer experience IoT is considered as the
best technology that enable retailers in tracking their products or services and behaviour of
customers towards same. Internet of Things has the greatest impact that deliver high value in
business for providing best customer services. Here, Sainsbury believe that post sale experience
refers to the biggest driver of satisfaction or dissatisfaction of customers. It impact directly on
brand image and product life-cycle (Lai, Jackson and Jiang, 2017) In this regard, leveraging
operational activities with IoT technologies identify the ways to improve and increase customer
experiences. It re-invent the operational activities of Sainsbury by concerning on some main key
areas. It includes – Getting ahead of product failure or service problems, Reducing number and
cost of returns, Increase value and convenience for customers throughout product life-cycle,
Providing information to R&D and Enhance sales performance. Along with this, it also track
record of inventories and transactions for proper supply management.
Theme 3: Impact of IoT in increasing retail operations
As per the article given by Caroline Forsey, it has been analysed that today technology
has developed so far, which gives opportunities to increase efficiency of operational activities (7
Ways IoT Is Changing Retail in 2019, 2019). Customers always seek to gain high shopping
experience which would can only be possible for Sainsbury by digitalising its business. In this
regard, for increasing retail operations, IoT helps in reducing inventory error as well as
optimising supply chain management process. The main applications which help respective
retailer in increasing its retail operations are:-
 Automated checkout: Using IoT, Sainsbury can set up system which helps in reading
tags on each product when a consumer leaves the stores (Stergiou and Psannis, 2017). In
this regard, checkout system will use to tally all items as well as automatically deduce
cost from mobile payment app of customers. It will make such customers more happier
and willing to come to store again which ultimately leads to increase sales performance.
 Personalised Discounts: With IoT, Sainsbury can also set up sensors around its stores
which send loyalty discounts to potential customers when they visit near by its stores.
 Optimise supply chain management: With sensors like RFID and GPS sensors,
managers of Sainsbury can obtain specific data. It includes temperature at which some
products need to store to avoid substantial loss.
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Chapter 3: RESEARCH METHODOLOGY
It refers to systematic procedure which is used to select, identify and analyse information
related to specific topic. It is study related to way in which research is to be carried out. In this
researchers describe, explain and predict phenomena about research topic. This will help
researcher to research questions, collect data and information for making effective decisions.
3.1 Research Philosophy
It refers to way in which data is accumulated, analysed and utilized. It is phenomenon
which helps researcher to analyse different perspectives by which valid outcomes can be derived
(Raj and Raman, 2017). Basically there are two types of philosophies, scientific or positivist and
anti-positivist or interpretivist. Researcher has used interpretivism research philosophy. As this is
subjective interpretation of reality which can be recognized.
3.2 Research Purpose
It specifies that why specific research is being carried out. Aims and objectives of
research are analysed. In this research, researcher assess influence of reward system on employee
motivation. This research will analyse the role of digital technologies like IoT in improving and
increasing operational functions of retail sectors.
3.3 Research methods
These are techniques or processes, strategies used to collect data and analyse them so that
better understanding of topic can be developed (Laudien and Daxböck, 2016). It depends on
topic or subject on which researcher is conducting research. Most frequent methods are
observations, surveys, interviews, experiments or combination of some of these methods.
Questionnaire is used by researcher for conducting this research.
3.4 Logic and approach
Logical research implies that any type of research must carry by obeying certain rules of
logical reasoning and process of deduction and induction approach. Here, induction defines as a
process of reasoning from a part to the whole. While deduction includes a process of reasoning
obtaining from premise. In this regard, mostly project-makers use this method for drawing
probable conclusions and result from findings.
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3.5 Data sources (primary and secondary)
Primary and secondary sources of data are available. In primary sources data is collected
by researcher in different ways like conducting surveys, questionnaires or interviews. In
secondary sources data is collected by researcher from books, journals, surveys on internet or
articles.
3.6 Data collection strategy
It refers to process of collecting and measuring information related to specific variables
which will enable individual to answer questions in specific research domain (Hashem and et.
al., 2016). Data is collected by primary and secondary methods. Primary collection refers to data
collection by conducting experimentations, observations and surveys. Secondary collection
methods refers to collection data which is already available and is analysed by someone. This
includes data published on journals, newspapers, magazines or books. Primary research is used
by researcher by preparing questionnaires.
3.7 Data population, sampling and sample
Population refers to collection of elements which have similar characteristics. Number of
elements which are in population depicts size of population. Sample refers to subset of
population. Process by which samples are selected is referred to as sampling. It is a statistical
analysis technique which is used to analyse and influence data patterns. Probability and non-
probability are types of sampling (Tao and et. al., 2016). Non-probability sampling is used by
researcher. In this questionnaire is prepared by researcher to collect data. Here, researchers have
chosen a sample of 30 respondents from total population of size 100.
3.8 Research instrument
It includes tools and techniques to measure reliability and validity of a research, including
methods which are used for collecting the data. Here, researchers can use rating scales,
flowcharts, tally sheets, performance checklists and more.
3.9 Analysis methods
It is critical part of research study. Data has no meaning until it is analysed. Data analysis
refers to process of summarising data. It is process of applying logical and statistical techniques
to illustrate, describe and evaluate data. In this research, researcher is using thematic analysis
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which is part of qualitative method. This will help to determine influence of rewards on
motivation level of employees.
3.10 Research ethics
Researcher should know research ethics before research is conducted. To maintain
validity and reliability of research, research ethics plays vital role. Individual focus on collecting
primary data by consent of contestant (Laudien and Daxböck, 2016). In order to assist interest of
contestants, consent has been taken by researcher on paper. For collecting secondary data
permissions and approval has been taken from respective authorities.
3.11 Limitations of research methods
There are various limitations which occurs while conducting research. Some of them are
as: formulation of aims and objectives of research. Researcher might formulate them broadly,
they must be narrow, so that focus can be maintained on specific point. For data collection
extensive experience is required, in case of secondary methods books or number of articles must
be evaluated and analysed. In case of primary research their may be lack of confidence, as
businesses have viewpoint that their data may be misused.
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Questionnaire
Name:
Age:
Gender:
Q1) Do you think implementation of digital technological will help an organisation in
improving their operational activities?
a) Yes
b) No
Q2) Is focusing on concept of different technologies is important for retailers?
a) Yes
b) No
Q3) What is the main role of IoT in retail sectors?
a) Automated checkout
b) Personalised discounts
c) Optimise supply chain management
Q4) What are the benefits Sainsbury can gain by introducing Internet of Things in retail
stores?
a) Optimising the customer experience
b) Monitoring inventories
c) Efficient logistics and supply chains
Q5) Do you really think that implementation of IoT in business aid Sainsbury in
improving its operational activities?
a) Yes
b) No
Q6) Which are the main key areas where Sainsbury need to concern while implmenting
IoT technologies?
a) Logistics
b) Supply chain management
c) Inventory management
Q7) What is the main impact of IoT on business performance of Sainsbury?
a) Boosting sales performance
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b) Increasing productivity
c) Retaining customers for longer period
Q8) Do you think Sainsbury is able to remain competitive at international marketplace?
a) Yes
b) No
Q9) Provide some recommendation to Sainsbury for optimising customer experience
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CHAPTER 4 : Data analysis and Findings
Theme 1: Employees are the main key to gain competitive advancement
Q1) Do you think implementation of digital
technological will help an organisation in
improving their operational activities?
Frequency
a) Yes 18
b) No 12
Interpretation: Digital technologies are considered as the most desirable demand of
organisation. It not only brings efficiencies in business but also helps in expansion in large
market area. As per the above figure, it has been interpreted that out 30 respondents, 18 are
agreed with above statement. While remaining didn’t agree with the same as they think that for
implementing digital technologies, retailers need to make high investment for changing its entire
structure as well as organise adequate training for workers also, to enhance their skills.
10
a) Yes b) No
0
2
4
6
8
10
12
14
16
18
20
Column B

Theme 2:
Q2) Is focusing on concept of different
technologies is important for retailers?
Frequency
a) Yes 25
b) No 5
Interpretation: In order to bring efficiencies in business it is essential for retailers to focus on
type of digital technologies, they need to transfer for bringing efficiencies in business. As per
feedback of 25 respondents out of 30, it has been interpreted that they are also agreed with above
statement. While remaining 5 participants are not agreed as they think that bringing any
technology like cloud computing, mobile applications, Internet of Things and more, will help in
increasing efficiencies of business.
11
a) Yes b) No
0
5
10
15
20
25
Column F

Theme 3:
Q3) What is the main role of IoT in retail
sectors?
Frequency
a) Automated checkout 12
b) Personalised discounts 8
c) Optimise supply chain management 10
Interpretation: IoT plays an effective role in retail sector like improving supply chain process,
automated checkout, offer personalised discounts and more. According to 10 respondents out of
30 as shown in above figure, it has been interpreted that optimisation of supply chain
management process is the main advantage part of IoT. While 8 respondents state that this
technology will help in monitoring customer behaviour and provide personalised offer to loyal
ones. It will retain such customers for longer period of time. Other than this, remaining 12 users
are in favour with automated checkout process.
12
a) Automated checkout
b) Personalised discounts
c) Optimise supply chain management
0
2
4
6
8
10
12
Column B

Theme 4:
Q4) What are the benefits Sainsbury can
gain by introducing Internet of Things in
retail stores?
Frequency
a) Optimising the customer experience 18
b) Monitoring inventories 12
c) Efficient logistics and supply chains 10
Interpretation: IoT provides various benefits to retailers in not only managing their functions
but also help in increasing the efficiencies of the same. In context with Sainsbury, this
technology helps in optimising the customer experience, managing logistics and supply chains
etc. According to above mentioned graph, it has been interpreted that out of 30 respondents, 10
are believed that for Sainsbury, efficient logistics and supply chains is the best advantage for this
company. While, 12 respondents are in favour with managing inventories and rest 18 towards
optimisation of customer experiences.
13
a) Optimising the customer experience
b) Monitoring inventories
c) Efficient logistics and supply chains
0
4
8
12
16
Column C

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Theme 5:
Q5) Do you really think that
implementation of IoT in business aid
Sainsbury in improving its operational
activities?
Frequency
a) Yes 25
b) No 5
Interpretation: Since Internet of Things provides various opportunities to retailers like
evaluating the customer preferences, their behaviour towards particular products, giving them
personalised discounts and more. Therefore, it proves beneficial for Sainsbury too in enhancing
efficiencies of its activities. According to given graph, it has been interpreted that out of 30
15
a) Yes b) No
0
5
10
15
20
25
Column F

respondents, 25 are agreed with same statement. While remaining 5 are not agreed with the
same.
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Theme 6:
Q6) Which are the main key areas where
Sainsbury need to concern while
implementing IoT technologies?
Frequency
a) Logistics 10
b) Supply chain management 8
c) Inventory management 12
Interpretation: In order to implement IoT in business, it is essential for retailers like Sainsbury
to concern on areas where efficiency is necessary to be increased. As per feedback of 18
respondents out of 30, it has been interpreted that 8 are advice to concern on supply chain
management. While, 10 towards logistics and remaining 12 are in favour with inventory
management.
17
a) Logistics
b) Supply chain management
c) Inventory management
0
2
4
6
8
10
12
14
16
18
Column H

Theme 7:
Q7) What is the main impact of IoT on
business performance of Sainsbury?
Frequency
a) Boosting sales performance 10
b) Increasing productivity 10
c) Retaining customers for longer period 10
Interpretation: Through IoT Sainsbury gain advantages to boost its sales performance, retaining
customers for longer period and increasing productivity of business. It has been interpreted that
out of 30 respondents, 10 are believed that this technology aid respective company in boosting its
sales performance. While other 10 thinks that it will help in making customer happier and retain
them with business for longer period. At last remaining 10 are in favour with increasing
productivity.
18
a) Boosting sales performance
b) Increasing productivity
c) Retaining customers for longer period
0
1
2
3
4
5
6
7
8
9
10
Column L

Theme 8: Sainsbury is able to stay in global competition
Q8) Do you think Sainsbury is able to
remain competitive at international
marketplace?
Frequency
a) Yes 20
b) No 10
Interpretation: Most of the companies establish their business for gaining benefits
whether it is from national or international market depends upon the areas where they have
expanded its businesses. Therefore, with the help of above mentioned graph it can be evaluated
that as per the viewpoint of 20 respondents because they have chosen the option “Yes”, which
shows that according to them Sainsbury is eligible enough for sustaining in the market for a
longer period of time and it is because of providing effective services and facilities to its valuable
customers. Whereas, other 10 respondents as they have chosen the option “No”, which mean as
per their believe Sainsbury has to make some changes in their organisational policies in order to
remain in the market whether at national or international level.
19
a) Yes b) No
0
2
4
6
8
10
12
14
16
18
20
Column G

CHAPTER 5 : DISCUSSION
As per views of(Majeed and Rupasinghe (2017), it has been interpreted that in UK's
supermarket and food retail industries, competition level has become more intense. Therefore,
each organisation dealing in this sector like TESCO, Sainsbury, ASDA and more, is seeking to
develop unique strategies to develop competitive advancement. With respect to Sainsbury, its
workers perform various role to achieve the same in highly efficient manner. It includes
enhancing productivity, effectiveness, innovation, quality of products or services and more.
Through literature review, it has been analysed that by implement Internet of Things, Sainsbury
gain advantages to increase efficiencies of its operating activities, helps in managing inventories,
supply chain management, making customer happier and more. Through this technology, it can
locate customers which are nearby its stores and instantly offer them personalised discounts and
offers. Through this process, Sainsbury can gain benefits to boost its sales performance and
expand business more efficiently. Thus, it has been evaluated that through implementation of
digital technologies in business functions of retailers not only improved but also increased as
well.
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CHAPTER 6: CONCLUSION, RECOMMENDATION AND FURTHER
RESEARCH
6.1 Conclusion
From the above report it has been evaluated that digital technologies refer to main
resource for organisation in achievement of such objectives. This would help in creating
innovation in business to differentiate its products or services distinct from others. In addition to
this, it also helps in developing customer base, intellectual property, reputation of business and
more. In context with retailers, as the main key activities are to manage inventories, increase
access of business, make customers happier, improve supply management procedures etc.
Therefore, in this regard, it has been concluded from this research that for improving all these
processes it is better for retailers to implement Internet of Things. It will help in running business
successfully and boosting sales performance as well. s
6.2 Recommendation
As it has been summarised from this research essay that there is an intense competition in
retail section at both domestic and international level. Therefore, companies dealing in this sector
like Sainsbury must concern on techniques by which they can gain high competitive advantages.
For this purpose, it has been recommended to Sainsbury to implement Internet of Things in its
business activities. This would help in improving efficiencies of its stores and make the same
attractive in the eyes of customers. As this technology helps in maintaining supply chain process
and logistics properly. Therefore, it would prove beneficial for customers to easily find products
at its stores. Along with this, to provide timely information about its price and discount offers,
Sainsbury needs to launch mobile apps also. Through this process, it can make interaction with
loyal customers more easily as well as bring awareness in them about its latest offers.
6.3 Further
research
On the basis of above described report, it can be analysed that researcher need to analyse
the importance of other digital technologies also, which are using by retail industry. This would
help in providing better recommendation for retailers in improving and increasing efficiencies of
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operational activities. It includes concept of cloud computing, Artificial intelligence, mobile apps
and more.
CHAPTER 7: REFLECTION
Throughout the project, there were many issues that was faced by me while doing this
research. First was that, I was having less time and with limited money in order to do the same in
a better manner. Interacting with respondents also create some problem because some of them
may not agree to give proper answers. With the help of this research, I can easily enhance my
skills and knowledge by understanding specific topic of research. For this, I can able to
increasing my personal knowledge and evaluation regarding particular research topic. There are
various issues and problems are arise while conducting this research such as inadequate
information of research topic, confusion due to different sites of similar topic and so more.
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