Leading through Digital Disruption : Gaining Digital Business Agility

Leading through Digital Disruption
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Table of Contents
Introduction................................................................................................................................2
The Case for Change..................................................................................................................2
Gaining Digital Business Agility...............................................................................................3
Create a Digital Ready Culture..................................................................................................6
Steer Collaboration.....................................................................................................................7
Develop your Leaders................................................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11
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Introduction
To analyze the digital business agility, the chosen organization is one of the largest retail
stores, Tesco that has transformed its business strategy to digital mode during the pandemic.
The report will also focus on creating a digital-ready culture for the organization, steering
collaboration, and developing leaders to support digital transformation within the
organization.
The Case for Change
The chosen organization for changing into digital transformation is Tesco. It is one of the
leading supermarket stores in the United Kingdom having around 4,673 stores worldwide.
Jack Cohen started the multinational supermarket and consumer products company Tesco
PLC in the year1919 and mainly does business in the retail market. Beverages, apparel,
household equipment, and also finance, and insurance are all part of the products offering
(Tesco Plc 2022). Tesco supermarket chains, for instance, are ordinary grocery stores, which
offer largely foodstuffs and a significantly lower selection of non-food items. Tesco's primary
market is the United Kingdom market, which produced the majority of its yearly income.
Tesco's goal is to remain the largest retailer store by providing high-quality offerings at a
cheap price, making them less expensive than rivals.
Initially, Tesco has progressed from being a typical grocery shop to being a retail company
focused on creating its marketing strategy for both its offline and online consumers. An
increase in the fast prevalence of handsets, simple and inexpensive accessibility, and also the
ease of purchasing from any location are the significant factors for the growing expansion of
e-commerce. Tesco's rivals like Asda, Sainsbury, Morrisons have also incorporated online
technologies to stay ahead, and thus, Tesco was left behind. Besides this, the outbreak of the
Covid-19 pandemic has negatively hit businesses globally that led to the rise in e-commerce
businesses (The Guardian 2022). Tesco, Britain's largest retail chain, reported a fifth-year
drop in earnings due to greater expenses associated with the coronavirus epidemic, which
reduced revenues. Customers have also been financially restrained by the covid-19 epidemic,
lowering their purchasing behavior within local offline stores, resulting in a fall in volumes
and decreased profits. The organization also faced additional expenditures associated with
ensuring the safety of its outlets. Tesco has been impacted by the epidemic because of the
lockdown limitations and social alienation, due to alterations within the purchasing style as
well as changes in consumer behavior.
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Therefore, to cope up with the challenge of rising online businesses and to tackle the situation
of the Covid pandemic, Tesco has decided to transform its retail business process to digital
business to retain its existing customers. The epidemic has accelerated the movement towards
the proliferation of online and increased purchases using e-commerce platforms. Tesco aimed
to establish the digital buying process as easily as possible while also personalizing it because
during the epidemic, retaining customers' trust and loyalty remained critical (Zhou et al.
2021).
The main objectives of the digital transformation of Tesco have been described below-
 Gaining customers' trust by providing a safe buying process for customers.
 Through digital transformation, Tesco has also aimed to increase its sales and profit
and at the same time retain its existing customers.
 Another objective is to offer a unique experience to customers through digital
transformation.
Gaining Digital Business Agility
Digital agility enables firms to swiftly build, evaluate, and introduce new technologies,
methods, and activities (Lin et al. 2020). To gain digital business agility, Tesco needs to
focus on initiatives and technologies. In this challenging digital business market, the Global
Center for Digital Business Transformation (DBT Center), has designed a Digital business
model, to help organizations in developing business agility (Baslyman, AlGhamdi and
AlMuhaysh 2020).
Fig 1: Digital Business Agility
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