Role of Digital Technology in Small Business Organisation
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This article explores the role of digital technology in enhancing small business growth and performance. It discusses how digital technologies can help in marketing strategies and communication, and highlights the benefits and opportunities of implementing digital technology in small businesses.
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ROLE OF DIGITAL TECHNOLOGY IN SMALL BUSINESS ORGANISATION 1
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Executive Summary This current scenario of business environment has shown a significant transformation in relation to the technology and the strategies used in the previous stages. With the growing trend of internet era and digitalized business transformation have evidenced to influence the business in a positive and effective manner. Different digital technologies are being used by the business in order to enhance the organizational growth and performance. On the other hand, growing trend of transformation of business with implementation of digital technology has helped the small businesses in a broader manner. Small scaled organisations with digital technology within the organisation can help them to strategies their marketing strategies and develop an innovative ideas based on the analysis and research. On the other hand, using the digital technologies, such as mobiles, laptops, social media and other such electronic mediums help the organisations to gain information and thus as a tool of communication. In addition to that, approaching marketing strategies based on the analysisusedbythedigitaltechnologycanhelptogaintheorganisationalgrowthand effectiveness and thus ultimately to gain strong brand image through advertising on digital media, such as social media sites. Thus, implementations of digital technology help to gain overall development and enhancement of the organisation and provide opportunities for growth in a broader manner. 2
Table of Contents Introduction......................................................................................................................................4 P1 Aim and objectives.................................................................................................................4 P2 Project management plan........................................................................................................4 P3 Time frame to complete the work...........................................................................................6 P4 Qualitative and Quantitative methods of project analysis......................................................7 P5 Using proper techniques to complete the project..................................................................10 P6 Recommendations and outcome of the project.....................................................................17 P7 Value of the project in meeting stated objectives and in own learning................................18 Conclusion.....................................................................................................................................19 Reference List................................................................................................................................20 Appendices....................................................................................................................................22 3
Introduction Technology plays a crucial role in an organisation. The usage of technology speeds up the production proceeds in an organisation. It speeds up the marketing job, helps to keep a proper track of the accounts of the company; it also helps to maintain the data base of the employees. In order to enhance the communication process between the employees and the clients of small organisationshouldusetechnology.Usageofefficienttechnologyhelpstoincreasethe productivity of the organisation in the market. In this assignment the usage of the technology in enhancing the development of the small industry will be pointed. Talon outdoor is a small scale UK based retail employing 33 employees. In this assignment the usage of technology to enhance the communication process by Talon outdoor will be discussed in order to enhance their marketing methods in the economy so that overall output of the company gets enhanced. P1 Aim and objectives In order to support and accomplish the project on use of digital technology in the small business, different objectives and aim have been derived. Aim The concerned aim of this project is to measure the effectiveness of using digital technology in the small business in relation to the growth of business. Objectives The concerned objectives of this project are: ●To demonstrate the core concept of digital technology in business ●To evaluate the effectiveness of implementation of digital technology in business ●To measure the workforce management of organisation using digital technology ●To analyse the impact of organisational processes through using digital technology P2 Project management plan Before starting any project an estimate should be made for future referral. The estimation should include the overall cost of the project, method used, technology used and number of employees to be included in the project. The planning of the project helps in successfully completing the project. Planning of the given project is explained below. Project Goals: According toSikdar and Payyazh (2014 p.30),before starting a project, a definite goal must be set in order to carry out the entire project successfully. Initially a project stakeholder must be chosen very carefully so, that the project is carried out successfully till the 4
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end. The stakeholder of the project includes the project sponsors, the output of the project, project team, customers and a project leader. Choosing a without a proper project goal the project cannot be completed successfully. The goal of the given project is to promote the growth of an organisation by using new technology (Tajeddini and Trueman, 2012, p.66). Cost of the project:As stated byMatosandSilvestre (2013, p.700),theprojectestimation plays a very important role in continuing a project. After setting the project goal budget of the project must be estimated according to the availability of the capital in the organisation. A small scale industry can take loans from the financial institutes to support their project. To complete the project based on technology development an organisation needs to spend minimum of ten pounds. Accumulation of resources: Before starting the project the needed raw materials must be accumulated so, that the project is not hampered mid way and it can be completed on time. While purchasing the raw materials of the project no quality should be compromised because it can affect the result of the project. The resources needed to complete this project successfully are HR software, database software, etc. A trainer must be appointed to provide training to the employees regarding the usage of the software (Sommer, 2012, p.300). Project schedule: Project schedule also plays a very crucial role in completing the project on time. A timetable should be prepared before starting g the actual project so that the steps of te project can be done according to the priorities following the timetable will to complete the project on time. Talon outlooks should fix a time period of six months to judge the effectiveness of technology in their business. Human resource plan:The human resource department of an organisation plays a crucial role in completing the project on time. The human resource management of the company should provide training related to the project. Such as handling of the project software.tt The human resource department of the organisation should recruit a trainer to provide software related training to the employees to successfully complete the project. The hr of the company should be the budget of the project well in advance and must also divide the team members according to the efficiency of the employees. In the present project the HR of Talon outdoor must plan the outline of the project to complete it successfully in order to deliver it on time (Drucker, 2017 p.10) 5
Risk management plan:the organisation can prepare a simple risk log to keep an account of the risk associated with the project. So, the stakeholders can remain aware of it. Some common risk associates with the given project are: ●Timemanagement:Whileconductingtheprojectthereisalwaysariskoftime management i.e whether the project will be completed on time. ●Budget issues: While completing a project the risk of budget always remains. i.e. the expenditure of the project will exceed the estimated budget ●Roles and responsibilities: Sometimes the stakeholders are not clear regarding their roles and duties in completing the project. ●Customers’ feedback: After completing the project the feedback of the customers plays a very crucial role in determining the success of the project. P3 Time frame to complete the work Completion Stages of project Gantt chart 6
P4 Qualitative and Quantitative methods of project analysis Quantitative methods: Quantitative methods of analysis use numerical data for analysing growth and development while conducting projects. According toSikdar and Payyazhi (2014, p.971),if there is no use of digits or numbers in an analysis then it is not said to be a quantitative analysis. Some methods of quantitative analysis are: Surveys:Surveys are conducted on the organisation’s performance in respect to revenue, financial status, upgradation in method of working and profit margins from time to time. The changes in figures help to understand whether there has been a growth or decline. As perSmith et.al(2013, p.407),this method is useful and preferred by developing companies due to its accuracy. Surveys may be of two types: Online Surveys:Surveys may be conducted online using online survey tools. OfflineSurveys:Surveysmayalsobeconductedofflinebycollectingdatathrough questionnaire or interviews. Observations:This involves greater time than surveys since data collected over a large period of time is processed into numerical figures to obtain the desired information Merits Quantitative methods were very helpful in their application on this project. Some advantages of these methods are: They have greater level of accuracy 7
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Martini (2013, p.60), statesthey are useful in comparing data and thus understanding growth or decline over a period of time These methods are significant for developing companies Demerits These methods also have some major drawbacks which are: These methods are costly and require more resources which makes it difficult to use them As perAchtenhagen,et.al.(2013,p.127),sometimes data accuracy is hampered due to personal opinions in case offline procedures are followed In this project a survey has been conducted in the company to find out the improvement in use of technology and technical resources and how it has helped in improvising the work performance. In this respect data has been collected on amount of new digital resources being used, improvement in work performance, client acquisition and service improvisation. This has helped to compare data with previous surveys to find out the rate of growth or decline. Qualitative methods: One of the two specific research methods in terms of collected data is qualitative method. Gustafson (2012, p.276), statesqualitative method in aimed at driving data revealing the quality of the variables and thus revealing some or the particular quality of the topic variable. In this particular report, the focus through conducting a qualitative project is to surface the qualitative aspects of digital technology in respect of innovative growth and supporting small and medium industries. In this particular project the case of Talon has been considered. Interviews:Employees are interviewed on different aspects to obtain information which helps in researching about the project. Different types of interviews used in project analysis are: Personal interviews:Personal interviews are face to face interviews conducted on a single person and are confidential in nature. Group interviews:These interviews are not conducted on a single person. It is in the form of discussions and hence confidentiality are not maintained Structured interviews:Structured interviews follow a particular pattern. Questions to be asked and the sequence to be maintained are decided beforehand. In these kinds of interviews the interviewer does not have to be skilled in order to maintain accuracy of data. It requires less time. 8
Unstructured interviews:These interviews do not follow any particular pattern or sequence of questions. The interviewer has to be skilled to maintain accuracy of data. It requires more time. Questionnaire:Questions are asked to employees in order to collect data which are useful in conducting the project. Methods of questionnaire used in project analysis are: Schedule method:In this method particular structure is followed and can be conducted on large number of people. However it is costly and requires more resources. Non-scheduled method:In this method no particular structure is followed but it cannot be conducted on large number of people. However it is cost effective and does not require many resources. Merits There are some specific advantages of applying this particular method in this present project. The specific merits of a qualitative approach have been detailed below It allows a chance to evaluate the topics in depth and elaborately. Crane and Matten, D (2016, p.89),statesthrough this method the data collection is not confined to some specific questions as in an interview the interviewer can devise new question to further broaden the analysis. Being a outcome of human competence, this method is more likely to be emotionally competent to the topic and the audience. This is the method to be discussing the complexities and the subtleties of a particular topic. Demerits This qualitative method has some overwhelming drawbacks that are potential impact the outcomes of a project utilising this particular method. The demerits are as below As perTrevino and Nelson(2016, p.62), the findings of this method is heavily depended on the particular personality of the person conducting it, thus it has high chance of being biased to one or the other side. The issue related to the anonymity and confidentiality of the respondents can pose threats to the efficiency of the data presented.Matos and Silvestre (2013, p.61) statessome time some information’s are better to be concealed that are gathered through this research and hence do not contribute the findings. 9
Qualitative research gathers a lot number of data which is difficult to analyse and reach to a conclusion. A face to face interview has been conducted with the marketing manager in order to conduct this project. In this regard information was obtained as to how employing digital resources has helped in developing or deteriorating the working of the company. Also information was gathered on whether the staffs are having any problem with new digital resources being used and if any employee has any idea regarding further improvisation. The manager also enlightened us on areas such as client and customer satisfaction. Thus information was obtained on utilisation of new digital resources by employees and further scope of improvement. P5 Using proper techniques to complete the project In order to accomplish the project, both the primary research method and secondary research methods have been approached. In terms of primary research a questionnaire set 4 questions have been framed to the 50 employees of Talon Outdoors. On the other hand, two managers of Talon Outdoors have been interviewed, in order to gain more concrete concept of using digital technology in business. In addition to that, secondary research on the basis of thematic analysis has been approached, in order to gain accuracy and reliability on the project study. Primary research Question 1: How effectively digital technology is influencing business procedures? AnswersNumber of respondents PercentageSample Size Much Effective255050 Moderate effect153050 Not effective102050 10
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Figure 1: Graph on digital technology influence in business procedures Question 2: Do you think using digital technology in business can help organisation to grow? AnswersNumber of respondents PercentageSample Size Yes204050 No102050 Maybe204050 11
Figure 2: Graph on digital technology use in organisational growth Question 3: Do you think approach of digital technology will help the business to gain competitive advantage? AnswersNumber of respondents PercentageSample Size Yes204050 No102050 Maybe255050 12
Figure 3: Graph on digital technology influencing competitive advantage Question 4: Can using digital technology and digital marketing approach help business to gain strong brand image? AnswersNumber of respondents PercentageSample Size Yes193850 No61250 Maybe255050 13
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Figure 1: Graph on digital technology in enhancing brand image From the above graphs based on the primary survey, it can be said that, most of the employees in the Talon beliefs that the use of digital technology in the business can help to enhance the organisational growth in overall perspective and thus can gain innovation and strong brand image. However, on the other than, the negative feedbacks on the use of digital technology have demonstrated that, Talon do not use the digital technology in the organisational procedures and processes in a effective manner and thus it needs to enhance the digital use and thus gain overall development. Interview Other than the primary research through survey, the following interview with two managers of Talon has been approached. QuestionsManager 1Manager 2 How the digital technology influences the business? Digitaltechnologybasically is centralised on the internet applicationuseinthe business. Using the internet, Talonapproachesalarge numbers of customers. On the With the gradual change in the business and current era, business trend have changed significantlyfromprevious years. In this current trend, we have 14
otherhand,thebusiness processes, such as training of employeesandinorderto communicatewiththe stakeholders,digital technologycanbeused effectively. todependonthedigital technologyforthe organisationworks,suchas communication and working processes of business, such as maintenanceofrecords, analysisandevenfor analysing marketing strategies development. Whataretheother advantageswhichcanbe gainedbybusinesswhile implementingthedigital technology? Otherthanthe communication, the business cangainstrongcompetitive advantagethrough approachingthedigital technology.Ontheother hand, as Talon is an n outdoor advertisingcompany,thus using digital technology will surely help Talon to gain a largenumbersofcustomers through advertising the brand in a digital manner. Other advantages, which can definitely be gained by Talon throughapproachingdigital technologyistogain customerretention.The servicesofTaloncanbe advertisedthroughdifferent social media in a digitalised manner and thus can help to gain customer retention. On theotherhand,having customerretentioncan ultimatelyleadtostrong brandimageandthuscan helpTalontogainmore numbers of customers. On the otherhand,usingthe technologicaladvancements anddigitaltechnology,our services can be enhancing in a qualitativemannerandthus 15
can help the customers to gain high satisfaction. Table 1: Interview approach to managers of Talon (Source: Created by learner) Thematic analysis In order to understand the use of digital technology, in a concerted manner, two different journals have been chosen in order to analyse the study and thus to gain validated information. Theme1:Businessstrategydevelopment Business growth is considered as the overall development of the business areas, which can help the business to gain enhancement in all the sectors of organisation. In the view ofFitzgeraldet al.(2014, p.7), using the digital technology, such as internet and other technologies, such as mobile and laptops, can help the organisation to enhance the organisational growth in an efficient manner. Based on the study, it has been found that, implementation of digital technology in the small business help to monitor the overall market and customers. Thus, approaching the digital technology will help the small business to identify the barriers and customer needs with analysing the market. In addition to that, this monitorisation of market and customer will help to place proper strategies based on the outcomes of market monitorisation. Theme 2: Brand Image As the digital technology can help the business to gain proper market orientation and customer research, with accessing proper identification of business requirements and customer needs, the small business can implement proper innovative and effective strategies, which can help the organisation to enhance their growth. AsGoyal(2017, p. 129) has commented that, using the digital technology in business can help to reach to large population of customers through different digital and new media applications, such as social media sites. Digital technology can help to analyse the marketing strategies, records and ranking of the organisation, through using Google Analytics. Moreover, the organisations, can enhance theirbusiness processes such as excel systems and other analytic tools through digital technology, which ultimately helps to enhance the overall organisational development. In addition to that, asGoyal(2017, p. 130)has stated that, overall development of small business through digital technology can help to deliver quality services to the customers and thus can gain high customer retention and brand image. 16
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P6 Recommendations and outcome of the project The recommendations and the outcome of the project carried out on “role of technology in the development of small scale industry” at the Talons outcome are explained below: Outcome of the project are Communication process: As stated byAchtenhagenet al.(2013, p.90), the use of technology can enhance the communication process in order to increase the efficiency of the organization in the market. Effective communication removes the gap between the employees and management. Effectivecommunicationpromotesdiversityintheworkplaceinordertoenhancethe effectiveness of the employees. Talon outdoors has used technology in enhancing the communication between the employees, management and clients so, that they can attract more customers towards their company in order to enhance the productivity in the economic market of UK. Marketing process; Usage of the technology in an organisation enhances the marketing activity of the organisation in order to enhance the position of the enterprise in the market. Talon Outdoor has launched a website so, that it can reaches to the targeted audience within no time. The company has created a page on the social media to promote the company among the masses. After using technology the company has increased the productivity worldwide. Training; Due to the advent of technology the company has started using modern software in advertising purposes to gain competitive advantages in the market. The company has also started using the HR software to train the employees efficiently. Efficient employees speed up their production process of the company in order to enhance the productivity of the company in the market. Software:The advent of technology in their organisation has motivated the organisation to use modern software in order to keep the documents of the company safely. Workplace safety promotes diversity in the company. Talon has started using HR software to keep the data base of the company safely. Positionofthecompany:Thecommunicationprocesshasenhancedthecustomerand management relation. Talon has opened a social media page so, that the customers can come to know about the newly arrived advertisements and can give their feedback to the company. Thus, it can be said that technology has enhanced the public relation of the company. Recommendations of the project: 17
The recommendations of the project are discussed below: Training:Thetechnologycanbeimplementedinthecompanyifpropertrainingis implemented among the employees. Proper training will enhance the efficiency of the employees of the company (Turner and Zolin, 2012, p.700). Software:Thecompanyshouldinstalledauthenticsoftwareso,thattheemployeescan efficiently use the software and to prevent the software from getting corrupted. Proper communication:Effectivecommunicationprocess should be implemented in the company for proper use of the technology especially the usage of the software such as excel, PowerPoint, etc to enhance the technical skills of the employees. Performance Appraisal:To promote the usage of the technology in the organisation performance appraisal must be set to motivate the employees regarding the usage of technology in the workplace. P7 Value of the project in meeting stated objectives and in own learning After conducting this project I have see that there is scope of improvement in terms of implementation and utilisation of digital resources. This particular project has enhanced my personal knowledge and skills in terms of conducting a project. In the light of the aim and objectives of the present report, it can be stated that the report has been successful in terms of supplying knowledge and skills on the topics.More knowledge is required by the employees of the company regarding the importance of digitisation in modern business. For this training sessions have to be conducted with the employees. Also the ideas of efficient workers should be thought over and discussed and if found lucrative should be implemented. This particular project has assisted in improving my personal analytical skills in analysing collected data on the grounds of application of digital technology in a SEM. In the data collection process, I have understood the importance and validity of both qualitative and quantitative research projects. Customer and client survey should also be done to find out the areas in which they are facing any problems and what kind of resources can be employed to solve them. Apart from this I have received a positive feedback in this project. Our work performance and profit margins have increased and customers have also given positive feedback. But it is important to know if the customers are facing any bugs or hindrances so that we can improve on that. I believe that there is scope for implementing larger amount of digital resources and it is important for us to make our staff familiar with them. If the company’s staffs are not familiar with upcoming digital resources the project will be of no 18
use. So we should try to implement further resources that can be lucrative for the company and also train the staff to properly utilise them. Conclusion The importance of digitisation in modern business is significant. Digital resources would help in efficient communication, coordination and working in an organisation. It would also reduce cost of working and save time. Also it is very important for the company to choose the correct resources which would enhance their working and increase their overall revenue. Often it is seen that members of an organisation are not familiar with its resources. It is essential for the management to choose suitable members in the technical team who would help to train staff efficiently to use digital resources. The company should always try and implement newer digital resources that would bring improvement in working. Lack in proper digital resources makes it difficult for a company to survive in the modern age of competition. After conducting the project it can be seen that Talon has received positive customer feedback and its overall revenue has increased since previous times. The company has also adapted new technologies in its functioning. However it further needs to implement more digital resources and work on utilisation of resources by staff. 19
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Appendices Appendix 1: Questionnaires Question 1: How effectively digital technology is influencing business procedures? AnswersNumber of respondents PercentageSample Size Much Effective Moderate effect Not effective Question 2: Do you think using digital technology in business can help organisation to grow? AnswersNumber of respondents PercentageSample Size Yes No Maybe Question 3: Do you think approach of digital technology will help the business to gain competitive advantage? AnswersNumber of respondents PercentageSample Size Yes No Maybe 22
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Question 4: Can using digital technology and digital marketing approach help business to gain strong brand image? AnswersNumber of respondents PercentageSample Size Yes No Maybe . 23