Impact of Digitalisation on Small Businesses

The report provides an analysis of how digitalisation affects small businesses, including 4Com plc. It concludes that digitalisation has a major impact on these firms, allowing them to adopt new technologies for improved products and services. This leads to increased productivity and better brand image in the market.

Managing Successful Business
Project

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Aim and objectives of research.............................................................................................1
P2. Project management plan......................................................................................................3
P3 Work breakdown structure and Gantt chart tom provide time frame for completion...........5
Task 2...............................................................................................................................................8
P4 Small scale research...............................................................................................................8
Task 3...............................................................................................................................................9
P5 Research and data using appropriate tools and techniques....................................................9
P6 Recommendations................................................................................................................13
Task 4.............................................................................................................................................14
P7 Reflection.............................................................................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Digitalisation is an important tool for small business enterprises that helps in improving
the quality of products and services. It supports in determining the use of innovative ideas and
creativity in organisation including software and digital technology. Many organisations have
adapted digitalisation in their business which is helpful in achieving particular goals and
reaching at target audience. These technologies support in redesigning the best products and
services in an effective manner to meet customer's desired expectations (Zott, 2011). It is
essential for small business firms to adopt advanced technology so that they can minimise the
wastage or cost and achieve high revenue within firm. These processes support in providing
better services to the customers effectively and efficiently. This report is based on 4Com plc that
was established in the year 1999. Their main objective is to improve the communication service
in UK's SME market. So, this organisation is focusing on adopting various technologies for this
purpose. The project will cover company's aim, objectives, its management plan and work
breakdown structure. It will also analyse qualitative and quantitative methods for small-scale
research to meet the aim of study. Recommendations and reflections will also be discussed here.
TASK 1
P1. Aim and objectives of research
In the present scenario, it can be seen that digitalisation is growing at a fast pace as it has
positive impact on the firm as well as on people. Small businesses can develop their operations
in an effective way because it supports in serving the best to customers for satisfying their
desired needs and they will get attracted towards organisation. So, it is essential to adopt new
technologies for micro firms. These advanced technologies support in reducing the cost by
utilising available resources in an appropriate manner because company can manage their
accounts, marketing and communication process in a better way by using computer applications,
system software, networking, internet and information technology for problems in the business
operations and achieve competitive advantage over others. Small and micro industries can easily
develop effectively by using digitalisation and get full advantages of the technologies as well as
they can implement their planning process (Massa, 2011). This is beneficial for the organisation
and individual as it supports in running business and make work easy. So, stress can be reduced
for employees as well as increase productivity. Advanced technology is an effective tool for
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creating digital working environment as well as operations and functions of business in an
appropriate way so that firm can compete with competitors. Here are some aspects that support
in understanding the project in an efficient manner.
Project Title:
“The impact of digital technology that support to small business growth and innovation
for 4Com plc”.
Background of project:
As per the above project title, it is clear that this report is based on digitalisation and its
impact on small or micro businesses such as 4Com which is a start-up. This firm is focusing on
adoption of various technologies for the purpose of improving communication services for the
end users (Teece, 2010). Digitalisation plays an important role in developing an organisation
because it helps in enhancing productivity and generating high revenues or profits for the firm.
Technologies support in reducing time and maintaining the accuracy, speed and efficiency of
work performance so that customers can satisfy their needs and wants in minimum timeframe.
Therefore, small-businesses can create a better position in market or achieve growth by serving
effective services to the target audience. They can build a strong brand image among customers
and compete with competitors in the marketplace. Technology adoption is very important for
every firm because it is changeable that change according to the dynamic environment. It also
supports in optimising resource for achieving competitive advantages. 4Com is required to make
strategies regarding adoptions of advanced techniques in order to achieve their goals and
objectives as well as for their business growth (Stokes, 2010). Therefore, they are focusing on
various departments for the modification such as production, marketing, accounting, information
technology, human resource management, sales area, etc.
Aim of research project:
“The major impact of digitalisation on the growth of 4Com company”.
Objectives of research:
Some objectives of research are here which help in better understanding of this report
like:
 To know about of the major effects of digital technology on 4Com plc
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 The main objective is to earn higher revenue as well as generate profits of the
organisation.
 To increase productivity and improve performance through advanced technology within
the firm.
 To identify that whether technology will support in achieving the future growth.
Research questions:
There are some questions which help in analysing company's objectives in a better way
such as:
 How can firm use digital technology and what would be impact?
 How can firm increase its revenues or profits through effective technology in the
organisation?
 Is it supportive in achieving future growth of the business?
P2. Project management plan
It is a basic plan created by the manager of an organisation by designing or formulating
the process of input from project team and stakeholders (Wilson, 2010). In this, manager
considers various things about the management activities for effective planning as how it can be
made effective for better execution, implementation, monitor and control so that firm can attain
its predetermined goals. In this project, company needs several documents that are summarised
in detailed such as plan of management, planning document and baseline, etc. It is required
references so that manager can ensure about plans which carried out through various policies and
procedures. Management can gather information about the plans from several components that
must be required for 4Com plc to consider and these are as follows:
Cost: It is the major element for every organisation that supports in making it effective.
In this, plan is based on using finance in an appropriate manner. Manager plans for allocating
funds among various business activities in effective way so that they can save more money. For
this, 4Com plc use advanced technologies or computer software for maintaining and managing
the business documentations (Porter, and Kramer, 2011). This company should consider
appropriate financing of the business operations and they allocate funds for providing training to
employees so that they will meet objectives of the firm. It is an cost effective plan so managers
required to try in minimising expenses and utilise this for the development of the company. HR
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department support in making effective plan and enhance employees knowledge, skills and
abilities for achieving success.
Scope: It is essential of project management which is based on values and scope of it in
the market. It considered entire activities which must be performed in this report. In the case of
4Com plc, it can be said that they need to focus on adopting digitalisation in their company so
that they can landscape the whole structure of organisation and make wide scope at marketplace.
It is supportive in effective communications services so customers can be satisfied (Laudon and
Laudon, 2016). Company can improve its products as well as service quality by using advanced
technology through this project report.
Time: In this defined that project must be effective for the research which helps in
performing several activities. For this purpose, 4Com plc should maintain or mange the entire
business activities and functions according to time. So it is helpful tool for every firm because
this support in reducing work consumptions of time, stress and extra burden on the employees
after time schedules. Time management is very helpful for the successful enterprises because it
manage entire business activities or operations in appropriate manner and organisation can get
various opportunities to make successful firm after managing the time. 4Com should consider
this factor to maintain the efficiency on the work place so that they can achieve higher growth
and increase productivity. In this required at least 30 days for completing task.
Quality: This component is very useful for every organisation so project management
plan should be based on quality. It can be affect on decision making process of the firm as
quality is related with positive outcomes or results of the project which must be efficient ad clear
for every individual. Company need to adopt several new technologies to improve the quality of
products and services as well as efficiency (Hotho and Champion, 2011). In the case of project, it
must be in qualitative way which can be possible through digitalisation and there are no need to
invest more fund as well as costs for this purpose. 4Com plc should make effective strategies and
planning so that project can be create in proper manner for using them easily.
Communications: To make an effective plan, it must be consider that communication
process should be in appropriate manner in the successful organisation. Employees should have
better communications skills for managing or handling customers by resolving any barriers or
conflicts in the company. 4Com plc should focus on it and they requires to provide better
training as well as learning to new employees so that they can work in effective way and achieve
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their goals and objectives. Communications helps in maintaining relations among people who are
working with in the firm. It is process by which management provides information regarding
business to the workers (Fitzgerald and Kruschwitz, 2014). Therefore, there are wide scope of
4Com plc for creating good working environment in the firm that will beneficial for both
employees and customers. Managers should play their role to create good communication
channel for their project in various stages.
Risk: It is an another factor that can be occurred while running business so managers
duty is that to identify as well as manage these forces and negative impacts for making them
efficient. These factors can not be controlled but company has to make an effective strategies or
plans to avoid all these so that it impacts can be reduced for best project management. 4Com
company also required to consider risk factor for adopting new strategy or advanced
technologies in their planning process so that they can achieve competitive advantages without
any barriers. 4Com company should work on this project because it will consume more time so
they have to do it.
Resources: This is must be necessary or difficult task to allocate available resources
among various activities because it helps in creating values or revenues for organisation.
Digitalisation is an essential for managing the resources and utilise all those in effective manner
so that company achieve its desired outcomes. 4Com plc must be focus on allocating resources
among several activities, therefore they required highly skilled workforce for optimising them in
appropriate manner. In the project management, utilisation of resources helps in operating
business and manage its activities.
P3 Work breakdown structure and Gantt chart tom provide time frame for completion
Work breakdown structure is defined as the activity or procedure that helps in reducing
workload or extra burden on employees for better working environment. It is the hierarchical tree
structure which is very helpful in managing the workforce and divide the task according to the
level of team. In other words, this structure support in outlining the project in efficient manner
and break it down in small portions for better management (Eid and Gohary, 2013). Therefore,
organisation can divide their work into subtask. It generally use for managing large project
through work breakdown structure for make it more manageable as well as easy for the
company's employees. So, these structure is very beneficial for reducing time consumptions and
increase work productivity for the organisation. This work breakdown structure is generally
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represent in the form of graphical for maintaining and managing all business activities and task
in effective ways.
4Com plc can use these structure in their company for removing stress and burden on
employees regarding work so they can use several procedures for evaluation of workers ability,
skills and capacities from distributing task among them (Dezdar, 2011). This is very useful for
reducing costs of extra works, efforts of employees and consumptions of time for completing any
tasks. Company have to focus on various areas while dividing task or work such as employees
capacities, interested areas or fields for work completions. In this, HR department plays
important role in analysing employees skills and abilities as well as their quality and
effectiveness for dividing task or work. It ca be done through performance appraisal so that they
can identify needs of training and learning and then provide to employees for enhancing their
interpersonal skills, capacities and knowledge. 4Com plc belongs from SME sector as it is small
scale business firm, so they requires work breakdown structure to get higher opportunities for
achieving success and reach at target customers for providing them better services. Company can
take support from digitalisation because it is important tool for finding new potential customers
through effective technologies and they also can serve best to make loyal clients. Advanced
techniques are helpful in increasing higher value of products and services so that company can
obtain their objectives and goals.
Gantt chart is an essential that make easy to understand task or work because it provide
information by representing them in graphical form. In this process, company can minimise its
time factor, costs as well as extra work by using various tasks that can harm company's
productivity (Ainin, 2011). It generally use for controlling all unnecessary operations or
activities by the project management as it also provide assurance for large task to the
organisation. For this purpose, organisation make various strategies and plans to reduce the
consumptions of time in activities which mostly takes time for completing task in effectively.
Company has to maintain all these task according to requirements of customer's and their needs
or wants.
All these techniques are very effective and there are various scope for 4Com plc because
it helps in providing qualitative products and services to their customers. Company can utilise its
resources by allocating them into several activities through digitalisation that recreate products in
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appropriate production process. This is also supportive in making efficient strategies that mange
entire task and operations according to demand in the market.
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Task 2
P4 Small scale research
Research is generally conduct for gathering data regarding market trends, customers and
competitors so it is helpful for every business organisation in collecting data or information
about consumer's needs, wants as well as their choice of behaviour regarding company's products
and services. It is supportive tool for data collection and adoptions of changes according to
environment of market (Cavusgil, 2014). Organisations generally conducts these survey so that
they can make decisions regarding strategies and technologies to achieve future growth. This will
take more time for making changes within firm such as policies, procedures and employees
productivity. Some tools and techniques are there that support in research methodologies such as:
Qualitative research: This type of research is based on historical data that are collected
in the theoretical form. In this, researcher use various methods for gathering data such as survey,
interviews, perceptions and personal experience for finding ultimate solutions. Data or
information can be based on name, culture, customer's choice, demand as well as their
satisfaction level regarding organisation's products and services. So these data generally gather in
theoretical form for providing information about market demand and needs of customers.
Quantitative research: In this, researcher collect data in numerical form regarding
market as well as customers. This research is represent the data in graphical form so that
organisation can manage it in effective manner. They appoint a suitable candidate for analysing
all these in appropriate manner. It is difficult task to gather statistical or mathematical data and
takes more time but beneficial for organisation growth.
Sampling: It is the process of collecting information of products and services among
large populations. In this, researcher collect brief information by picking a specific individual
among large populations and includes several methods that helps in gathering information
according to people choice. Researcher can get positive as well as negative data through this
research process. Positive response helps ion motivating them and negative respond support in
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drop as well as improve the research method. It is generally based on specific study or topic
which conducts for getting customers opinion, views and their suggestions regarding company's
products and services. Management consider various strategies or approaches and adopt them for
attaining organisational objectives and goals.
This research has been done with 30 selected candidates among large number of
populations that provides their opinion and feedback regarding digitalisation and its impact on
4Com industry. These questionnaires are as follows:
Questionnaire
Name-
Email id-
Contact no.-
Q1. What do you think about digital technologies that it support in improving 4Com company?
A. Yes
B. No
Q2. Should employees develop their skills for utilising digitalisation?
A. Yes
B. No
Q3. What will be suitable for marketing activities of 4Com plc?
A. Internet
B. Pamphlet
Q4. What types of digital techniques will be suitable for 4Com company?
A. Modern technology
B. Traditional technology
Q5. Is digitalisation helpful in gaining future benefits for an organisation?
A. Yes
B. No
Q6. Do you agree that digital technology support in achieving competitive advantages?
A. Yes
B. No
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Task 3
P5 Research and data using appropriate tools and techniques
Theme 1: Digital technologies that it support in improving 4Com company
Q1. What do you think about digital technologies that it
support in improving 4Com company?
Frequency
A. Yes 25
B. No 5
Findings: From above this graph representation, it can be identified that digital technology
support to improve the business activities or process of 4Com plc. In this 25 person out of 30
believes it is beneficial which in creating positive response and on the other side 5 persons do not
agree with it.
Theme 2: Requirement for developing skills of employees
Q2. Should employees develop their skills for utilising
digitalisation?
Frequency
A. Yes 20
B. No 10
10
Yes No
0
5
10
15
20
25
25
5
Column C

Findings: In this graph, it represent that there is requirement for proper training and
development so that employees can learn better and enhance their skills to provide effective
services technologies so here 20 candidates believes in training programs and rest of 10 people
are not considering this as they think that it will consume time as well as cost of the company.
Theme 3: Suitable marketing activities for 4Com plc.
Q3. What will be suitable for marketing activities of 4Com plc? Frequency
A. Yes 22
B. No 8
Findings: Marketing activities are very important for promoting products and services of the
organisation and in this found that 22 persons believe internet source is more effective than
pamphlet for promotions while 8 individual do not agree with these tools.
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Internet Pamphlet
0
5
10
15
20
25 22
8 Column C
Yes No
0
5
10
15
20
20
10
Column C

Theme: Types of suitable digital technologies
Q4. What types of digital techniques will be suitable for 4Com
company?
Frequency
A. Yes 24
B. No 6
Findings: In this question, it has been found that modern technology is more helpful in present
scenario because 24 people are agreed with this and rest of individuals are satisfied in the use of
traditional technology.
Theme 5: Digitalisation helpful to get benefits
Q5. Is digitalisation helpful in gaining future benefits for an
organisation?
Frequency
A. Yes 18
B. No 12
12
Modern technology
Traditional technology
0
5
10
15
20
25
24
6 Column C

Findings: Above graphical representation described that digital technology support in achieving
future growth and provides several benefits to the organisation. There are 18 people out of 30 are
agreed about this and remaining 12 persons do not think so.
Theme 6: Digital technology support to achieve competitive advantages
Q6. Do you agree that digital technology support in achieving
competitive advantages?
Frequency
A. Yes 20
B. No 10
Findings: In this, it has been found that digital technology is very useful in achieving
competitive advantages in the market as 20 people believe that it is beneficial for the company
and remain people are not agreed.
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Yes No
0
5
10
15
20 18
12
Column C
Yes No
0
5
10
15
20
20
10
Column C

P6 Recommendations
From above the study of 4Com plc, it can analyse that they should adopt digitalisation for
improving the quality of products and services as well as satisfy customers needs and wants.
Company can attracts more consumers by adopting new ideas, technologies and innovations that
helps in improving productivity of organisation and earn more profits. There are some
recommendation for developing the business such as:
 Company can improve their work performance through developing the individual as they
organise training and learning program for improving their skills, knowledge and
abilities.
 Organisation can provide live learning to the employees through conferences and
seminar sessions.
 4Com plc require to meet customers demand and needs by providing effective goods and
services.
Task 4
P7 Reflection
After a mini research of the project, I found that digitalisation play vital role in improving
and developing organisation's performance as it has major impact on small businesses. It is very
supportive in achieving competitive advantages. In this research, I would like to conduct a
training and development program for improving employees skills so that they can use advanced
technologies and digitalisation in appropriate manner. It has proved so I will recommend to
4Com plc for adopting new ideas and innovation in their firm because digitalisation support in
producing better quality of products and services that helps to increase brand image in the
market.
CONCLUSION
From above the project report, it has been concluded that there are major impact of
digitalisation on the small and micro firms as they can adopt several digital technologies for
improving their product and services which helps in increasing productivity. This study is based
on 4Com plc which is small-business and they focus on adopting new technologies for
improving products and services.
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REFERENCES
Books and Journals
Zott, C., Amit, R. and Massa, L., 2011. The business model: recent developments and future
research. Journal of management. 37(4). pp.1019-1042.
Teece, D.J., 2010. Business models, business strategy and innovation. Long range planning.
43(2). pp.172-194.
Stokes, D., Wilson, N. and Wilson, N., 2010. Small business management and entrepreneurship.
Cengage Learning EMEA.
Porter, M.E. and Kramer, M.R., 2011. The big idea: Creating shared value.
Peppard, J. and Ward, J., 2016. The strategic management of information systems: Building a
digital strategy. John Wiley & Sons.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education
India.
Hotho, S. and Champion, K., 2011. Small businesses in the new creative industries: innovation
as a people management challenge. Management Decision. 49(1). pp.29-54.
Fitzgerald, M., Kruschwitz, N., Bonnet, D. and Welch, M., 2014. Embracing digital technology:
A new strategic imperative. MIT sloan management review. 55(2). p.1.
Eid, R. and El-Gohary, H., 2013. The impact of E-marketing use on small business enterprises'
marketing success. The Service Industries Journal. 33(1). pp.31-50.
Dezdar, S. and Ainin, S., 2011. The influence of organizational factors on successful ERP
implementation. Management Decision. 49(6). pp.911-926.
Cavusgil, S.T., et. al., 2014. International business. Pearson Australia.
Online
Work Breakdown Structure (WBS).2017. [Online]. Available through
:<http://www.workbreakdownstructure.com/ >.
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Template for Performance Review
Template to be attached with the
report by the learner:
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