The Impact of Digital Technology on EDF Energy's Business Activities

This research project critically analyzes the impact of digital technology on the business activities of EDF Energy, a leading energy provider in the UK. It examines the stages of digital transformation EDF Energy has undergone, identifies the challenges faced in integrating emerging technologies, and explores the implications of digital technology on various business services. The research also investigates the engagement of stakeholders with digital technology and the company's preparedness for change management. By analyzing both primary and secondary data, the study provides insights into the opportunities and challenges presented by digital transformation in the energy sector.

RESEARCH PROJECT
EDF ENERGY

Table of Contents
CHAPTER 1.......................................................................................................................1
INTRODUCTION............................................................................................................1
CHAPTER 2.......................................................................................................................3
LITERATURE REVIEW..................................................................................................3
CHAPTER 3.......................................................................................................................6
METHODOLOGY...........................................................................................................6
CHAPTER 4.......................................................................................................................8
FINDINGS (DATA ANALYSIS AND PRESENTATION)................................................8
CHAPTER 5.....................................................................................................................20
DISCUSSION (DATA INTERPRETATION).................................................................20
CHAPTER 6.....................................................................................................................22
CONCLUSION.............................................................................................................22
RECOMMENDATION..................................................................................................22
IMPLICATIONS FOR FURTHER RESEARCH............................................................23
REFERENCES................................................................................................................24
APPENDIX.......................................................................................................................26
1

CHAPTER 1
INTRODUCTION
Title- The impact of digital technology on activities of EDF energy
Research aim and rationale
Aim -To critically analyze the impact of digital technology on the business activities of
the firm, EDF Energy.
The purpose behind the selection of this topic of research lies in the fact that EDF
energy being an energy industry conducting the operations of electricity generation and
selling gas and electricity to business and households throughout the UK has
undergone major digital changes in its method of operations and selling of its products.
The firm has its headquarters in the UK, founded in the year 2002 providing its services
to around 5.7 million customers (EDF Energy, 2018). Therefore, it is essential to
analyze the impact of the changes in digital technology on the firm so as to cope up with
the challenges faced by the firm of change management, planning for investment in new
technology and also respond in a positive manner to the competitive environment.
Objectives
 To determine the stages that EDF energy has to undergo for achieving digital
transformation
 To identify the challenges faced in the process of integration of emerging
technologies within EDF energy
 To understand the implications of digital technology on various business services
of EDF energy
 To analyze the engagement of stakeholders with the digital technology
Significance
The importance of the research can be understood as the study will help in the
examination of the effect of digital technology on the way organizations conduct their
business with the help of the aforementioned business objectives. This examination will
include the scrutinizing of the impact on a number of business systems such as the
2

administration, storage and the distribution systems, the communication systems and
the production. It will provide the prospect to contextualize the implications of digital
technology in EDF Energy the manner in which it is shaping the future personnel
(Westerman, et al. 2014). The examination of the effect of digital technology and
changes will also aid in exploring the challenges as well as the opportunities that the
rapidly evolving technological advancements represent the business.
3

CHAPTER 2
LITERATURE REVIEW
Kane, et al. (2015) states that digital transformation is an amendment correlated with
the application of the digital technology in all areas and aspects of the society. The
process of digitalizing every aspect of the organizations has led to abrupt changes in
the manner firms executes their operations and change in their business models, socio-
economic structures, the business patterns, consumption patterns and legal and policy
measures etc (Kiron, et al. 2016). According to Hess, et al. (2016), there are 6 stages
that firms undergo for digital transformation in which the first one is the organizations
operate with an acquainted legacy perception of the stakeholders, the processes and
business models considering that it remains the result to digital relevance. The 2nd stage
is testing and learning where the firms experiment for driving digital transformation and
learn from past failures or success. The 3rd Stage is systemize and strategize where the
firm gets smarter and work formally towards the bigger picture that they see as a result
of the changes. The next step is adapt or die where the firms become resilient and
adopt the digital transformation and change by forming the short and long-term goals.
The next stage is transformed and transforming where the digital transformation
becomes the essence of the firm leading to consistency in the business operations and
systems. The last stage is innovated or die where innovation is prevalent and new
models and roles move towards innovation so as to accelerate transformation and look
for new growth opportunities (Solis, 2016). These stages of digital transformation
provide benefit help in setting new vision and platform of leadership along with the
development of the new process, model and motive for the technology and future
workforce.
In the process of integration of digital technology into the businesses, the firms
encounter many challenges that hinder them from adapting to the digital changes in an
abrupt manner. According to Matt, et al. (2015), the major change that digital
transformation has introduced is the socio-economic changes as the employees and
leaders of the firms take time in adjusting to the unfamiliar technologies and relying
upon them. The receptiveness from top management to the bottom is important for
4

developing a shift in culture. According to Greenberg (2017), every executive of the firm
must adopt the culture of change that allows efficiently adopting of digital technology in
the operations such as sales, Human resources, marketing etc. Additionally, Colbert, et
al. (2016) states that the advent of digital technology has created a competitive
marketplace full of challenges and opportunities where the businesses must compete
with agile competitors who have the benefit of low barrier to entry with the help of
advanced technology. The general buy-in is also one of the challenges for digital
transformation where the proactive leadership is neglected and therefore they are not
able to administer the initiatives for long-term survival of the business (Greenberg,
2017). Another challenge is the challenge of upskilling traditional executives within a
short time span. The accomplishment of full competence across all the channels of the
firms is not feasible as the employees are not able to grasp the digital changes in a
short time period.
According to Fitzgerald, et al. (2014), the digital technology in organizations is being
incorporated in a number of business systems such as communication, the
administration systems, production systems and storage and distribution. The cloud
technology helps in storage and filing along with the distribution of the information in the
administrative systems (Scheck, 2016). In a similar manner, the mobile technology with
social media aids the businesses to communicate, associate and collaborate on an
international scale. The Internet of Things (IoT) in storage and distribution integrates
the systems and connect them through the business structures. Along with this, the big
data analytics and the use of artificial intelligence are fostering innovating and the
growth of products in the production business systems (Scheck, 2016).
Janowski, (2015) states that with the help of utilization of the new technology and digital
changes, the client engagement can be increased to a great extent. The collaborations
with the stakeholders’ increases that enable the decrease in amendments and
stakeholders to change down the line. The introduction of new technologies in the firm
attracts the clients to be a part of the firm or get services from it in an active or passive
manner. The customers get to know the difference between the traditional method of
5

carrying out the operations and the improved digital methods and thus build a sense of
engagement with the firm (Barrett, et al. 2016).
The influence of digital technology on the activities of the business provides a range of
opportunities and complex challenges that need to be overcome. These opportunities if
utilized in an appropriate manner can help in the accomplishment of various objectives
and the goals of the firm. The challenges help the firms to get a chance to overcome its
weaknesses and improve in order to provide benefits to the firm and grow and develop
as a digitally efficient firm.
6

CHAPTER 3
METHODOLOGY
A research philosophy is a belief about the manner in which information and relevant
data about a study must be gathered, conducted an analysis of and used. The
identification of the research philosophy is placed at the outer layer of the model known
as Research Onion. The research philosophy used here is Pragmatism where the data
will be collected by mixed or the multiple method designs consisting of qualitative as
well as qualitative data collection methods (Research Methodology, 2017). The
pragmatic approach to research that is used here uses those methods of research that
are best suitable for the research problem that may be qualitative or quantitative. This is
done because each research method has some limitations. The method of mixing the
two approaches enables triangulation that allows the use of different data sources,
different researchers, multiple perspectives to interpret the results and multiple
methodologies for studying a research problem (Sekaran and Bougie, 2016).
The research strategy used for the topic of research is ‘Case Study’ where the empirical
investigation of the contemporary phenomenon of digital technology and its impact on
business is done through multiple sources answering the why, what and how of the
research. A number of strategies will be used that include conducting surveys and
documentary analysis along with studying the academic sources and other journals and
scholarly works by dignified and verified authors (Saunders and Lewis, 2012). This
research strategy comprises of the investigation for examining various sources of
evidence. This type of research strategy is best suitable for conducting an in-depth
research involving the analysis of the first-hand data as well as the data and information
researched by someone else.
The research methodology used is the mixed method of research that includes the
collection of data by following the pragmatic research philosophy with the help of a
questionnaire and the secondary research conducted in the form of a literature review.
The tool used for the research for conducting the survey is the questionnaire that is
asked to the employees of EDF Energy for examining and critically evaluating the
impact of digital technology on a number of business activities of the firm.
7

The process of sampling that is used in statistical analysis involves a fixed number of
observations taken from a large population. The type of sampling used here is
probability sampling of which systematic sampling is one of the categories (Research
Methodology, 2017). The systematic sampling involves selection of a sample of
employees and other stakeholders of the EDF Energy from as per a fixed start point and
a sampling interval. The population is identified on the basis of the number of
employees of the firm and other stakeholders and 100 employees are selected
according to the sampling interval. This type of strategy for sampling is chosen so as to
ensure that all the groups of employees of the form are fairly represented in the sample
taken of 100 people.
Ethical implications
The ethical implication that may occur is the confidentiality and legality constraints. The
guidelines for the protection of the confidential and secret data and information of the
employees must be followed. For example, the personal information of the participant of
the survey in EDF Energy must be kept secret from the other departments of the firm.
The legal constraints must be kept in mind by following the rules and regulations set by
the firm. The survey must not overpower the legalities of the firm (Neuman and Robson,
2014).
Research limitations
The limitations of research are-
 The sample size for conducting a survey for the research is small which in some
cases may pose difficulty in determining significant relationships from the data.
 The time may impose limitation as the time limit given for conducting the
research is less and may have an impact on the results of the research
8

CHAPTER 4
FINDINGS (DATA ANALYSIS AND PRESENTATION)
The survey held for getting the opinion of 100 employees of EDF Energy has given the
following results. The questionnaire is attached in the appendix.
QUESTION 1
According to you, how much EDF Energy is aware about digital technology and
transformation?
RESPONSE TABLE –
Total Approve Somewhat
Approve
Indefinite Slightly
disagree
Totally
Disagree
100 30 35 26 5 4
Familarity with technology
Approve
Somewhat Approve
Indefinite
Slightly disagree
Totally Disagree
9

QUESTION 2
Which business systems are being impacted by the advent of digital technology in EDF
Energy the most?
RESPONSE TABLE –
Total Production
system
Administration
system
Storage
and
Distribution
system
Communication
system
100 18 30 32 20
Impact on Business system
Administration system
Communication system
Storage and Distribution system
Production system
10

QUESTION 3
Has your company, EDF Energy explored the influence of digital technology and digital
transformation on the dealers, allies and distributors?
RESPONSE TABLE –
Total Approve Somewhat
Approve
Indefinite Slightly
disagree
Totally
Disagree
100 26 22 23 16 13
Exploring impact of digitalisation
Approve
Somewhat Approve
Indefinite
Slightly disagree
Totally Disagree
11

QUESTION 4
Did your Firm, EDF Energy’s leadership contemplate the funds, budgets and return on
share associated with digital transformation?
RESPONSE TABLE –
Total Approve Somewhat
Approve
Indefinite Slightly
disagree
Totally
Disagree
100 34 18 15 24 9
Leadership considering saving, cost and
return
Approve
Somewhat Agree
Unsure
Somewhat Disagree
Disagree
12

QUESTION 5
Is EDF Energy, as per your experience prepared and equipped to agree upon the
change in firm?
RESPONSE TABLE –
Total Approve Somewhat
Approve
Indefinite Slightly
disagree
Totally
Disagree
100 42 26 13 6 13
Willingness to accept change
Approve
Somewhat Approve
Indefinite
Slightly disagree
Totally Disagree
13

QUESTION 6
EDF Energy, as per your experience, reacts swiftly to the change in firms?
RESPONSE TABLE –
Total Approve Somewhat
Approve
Indefinite Slightly
disagree
Totally
Disagree
100 22 35 15 18 10
Respond to change
Approve
Somewhat Approve
ndefinite
Slightly disagree
Totally Disagree
14

QUESTION 7
What factors will be considered more as per the introduction of the digital transformation
and digital technology?
RESPONSE TABLE –
Total Boost in
effectivenes
s and
reduction in
cost
Rise in
profits
Growth and
development
of customer
relationship
Protected
product
effectivenes
s
Lift in
satisfaction
levels of
employees
100 25 33 13 11 18
Factors to be foucssed on
Boost in effectiveness and
reduction in cost
Rise in profits
Growth and development of
customer relationship
Protected product effectiveness
Lift in satisfaction levels of
employees
15

QUESTION 8
Among the factors given below, which one can inhibit the progression of transformation
of digital technology in EDF Energy?
RESPONSE TABLE –
Total Insufficienc
y of
supervision
and
leadership
Distress of
change
Other
factors
Unproductiv
e financial
plans
The threat
linked to
Cyber
security
and Data
protection
100 33 26 14 18 9
Factors that Hinder the progress of digital
transformation
Insufficiency of supervision and
leadership
Distress of change
Other factors
Unproductive financial plans
The threat linked to Cyber
security and Data protection
16

QUESTION 9
Does EDF Energy, as per your experience has an operational plan or a strategy in
replacement of digital transformation?
RESPONSE TABLE –
Total Approve Somewhat
Approve
Indefinite Slightly
disagree
Totally
Disagree
100 31 27 22 17 3
Does organisation have Plan/ strategy
Approve
Somewhat Approve
Indefinite
Slightly disagree
Totally Disagree
17

QUESTION 10
EDF Energy, as per your knowledge and experience is well accustomed with what all
technologies mentioned below?
RESPONSE TABLE –
Total Cloud
computing
(ERP)
Enterprise
Resource
Planning
and BPM
systems
Internet of
Things
Artificial
intelligence
and Big
data
Analytics
All
100 15 11 27 15 32
Technology adoption
ERP and BPM systems
Internet of Things
Artificial intelligence and Big
data Analytics
Cloud Computing
All
18

QUESTION 11
According to your experience, what is the present-day IT infrastructure of EDF Energy?
RESPONSE TABLE –
Total Brilliant Very good Slightly
good and
fair
Unsatisfying Slight
progression
100 27 18 34 11 10
Current IT infrastructure
Brilliant
Very good
Slightly good and fair
Unsatisfying
Slight progression
19

QUESTION 12
Do you agree upon the fact that strategies and plans formed for adapting to digital
technology and transformation will bring positive change in EDF Energy?
RESPONSE TABLE –
Total Approve Somewhat
Approve
Indefinite Slightly
disagree
Totally
Disagree
100 17 34 11 13 25
Digital strategies for coping up will result in
growth and development of organization
Approve
Somewhat Approve
Indefinite
Slightly disagree
Totally Disagree
20

CHAPTER 5
DISCUSSION (DATA INTERPRETATION)
Analysis and interpretation of literature review
A comprehensive literature review is examined for drawing the appropriate conclusions
and suggesting recommendations for future improvements. The investigation has been
done on the impact of the advent of and changes in digital technology on different
business activities such as the administration, storage and distribution and the
communication activity etc. The information that has been investigated from a number
of academic sources and the primary findings of various academicians and scholars is
filtered as per the year of the findings and the legitimacy of the source of information. In
the era of digital technology and digital transformation, the impact of the implementation
of the various aspects of digital technology cannot be neglected (Matt, et al. 2015). The
challenges faced by the organizations are being transformed into the opportunities that
bring success and growth to the firm. From the analysis of the literature review, the
following mentioned data has been drawn-
 The organization, EDF Energy has been highly impacted by the advent of digital
technology
 The analysis of the information reveals that the digital changes have positively
influenced the operations of the firms thereby reducing the complexity and time
of execution
 The various business activities of the EDF Energy such as the administrative
and communication etc. have adopted the digital changes and have been
successful in implementing them thus giving positive results
 The changes in digital technology have impacted the stakeholders who in spite
of taking time to adopt the change have fully adopted and appreciated the
implementation of the digital technological changes
Results are drawn from the survey (Data Interpretation)
21

The primary research in the form of the survey was held that included total of 12
questions asked to 100 employees of EDF Energy. In the organization, a majority of the
activities relating to digital technological implementation are done through use of
technologies such as cloud computing, BPM and the ERP systems etc. as the services
provided by the company are the energy services and their bookings and payment
gateways along with maintain a large amount of data requires the use of all storage and
distribution as well as administrative technologies. The survey reveals that the scarcity
of the abilities of leadership can obstruct the growth. On the other hand, the company
has placed its emphasis on maximizing the number of consumers and improving the
relationship with them. A major impact has been observed in the storage and
distribution business systems. The employees of the firm are eager to accept the
changes which reveal that the strategy used by the firm for implementing the digital
changes has left a positive impact. The firm in all has positively adopted the digital
changes to cater future development and growth of the firm.
22

CHAPTER 6
CONCLUSION
The critical analysis of the influence of the digital technology and its transformation in
EDF Energy has been done with the help of adopting a mixed method of research.
Firstly, a literature review has been done that highlights the stages that digital
transformation goes through along with an analysis of the challenges that the firms may
face when going through the digital transformation i.e. the implementation of digital
technology in various business services of the firm (Bharadwaj, et al. 2013). A survey
was also conducted that comprised of a questionnaire asked to employees of the firm,
EDF Energy as a part of research so as to collect the first-hand data of the employees
and their present opinion and experience with the advent of digital technology and its
implementation in a number of business services. The conclusion has been drawn from
both the research that the organization has been positively impacted by the digital
technological changes as well as the employees have adapted to the changes besides
of the fact that it took time for them.
RECOMMENDATION
The following recommendations are suggested for the research that can help in
improvement of the results of the research-
 The sample size must be increased so that the opinion of more employees will
be gathered and their data will provide more help in analyzing the impact of the
digital changes in the organization, EDF Energy
 The time duration given for the research must be extended and more time will be
given for the research so that long-term impacts of the deployment of digital
changes in various business activities of the firm can be analyzed and the
improvements can be made in an according to the manner
 The sampling approach used for data collection from the employees must be the
customized so that the higher authorities as well the subordinates belonging to
different department of the organization can participate in the survey and this will
help in collecting data and information in a more appropriate manner for
analyzing and evaluating the impact of digital technology on the firm
23

IMPLICATIONS FOR FURTHER RESEARCH
In the future research, the research process can be carried out completely primary that
will involve collecting the first-hand data from the employees and other stakeholders of
the firm. The interviews can be held with the higher authorities of the firm asking them
the major impacts that have been observed in the firm as a result of the digital
transformation (Myers, 2013). Also, more reference to the peer-reviewed journals that
are verified can be taken so that the scholarly works by different authors are legitimate
and the most recent ones that clearly depict the effects of digital technology and what
challenges and the possible opportunities they present.
24

REFERENCES
1. Barrett, M., Oborn, E. and Orlikowski, W., 2016. Creating value in online
communities: The sociomaterial configuring of strategy, platform, and
stakeholder engagement. Information Systems Research, 27(4), pp.704-723.
2. Bharadwaj, A., El Sawy, O., Pavlou, P. and Venkatraman, N., 2013. Digital
business strategy: toward a next generation of insights.
3. Colbert, A., Yee, N. and George, G., 2016. The digital workforce and the
workplace of the future. Academy of Management Journal, 59(3), pp.731-739.
4. EDF Energy, 2018. About Us, Online available at
https://www.edfenergy.com/about last accessed on 6th April 2018
5. 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.
6. Greenberg, O., 2017. Challenges of digital transformation, Online available at
https://www.kurve.co.uk/blog/the-challenges-of-digital-transformation-for-large-
organisations last accessed on 3rd April 2018
7. Hess, T., Matt, C., Benlian, A. and Wiesböck, F., 2016. Options for Formulating a
Digital Transformation Strategy. MIS Quarterly Executive, 15(2).
8. Janowski, T., 2015. Digital government evolution: From transformation to
contextualization.
9. Kane, G.C., Palmer, D., Phillips, A.N., Kiron, D. and Buckley, N., 2015. Strategy,
not technology, drives digital transformation. MIT Sloan Management Review
and Deloitte University Press, 14.
10. Kiron, D., Kane, G.C., Palmer, D., Phillips, A.N. and Buckley, N., 2016. Aligning
the organization for its digital future. MIT Sloan Management Review, 58(1).
11. Matt, C., Hess, T. and Benlian, A., 2015. Digital transformation strategies.
Business & Information Systems Engineering, 57(5), pp.339-343.
12. Myers, M.D., 2013. Qualitative research in business and management. Sage.
13. Neuman, W.L. and Robson, K., 2014. Basics of social research. Pearson
Canada.
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14. Research Methodology, 2017. Online available at https://research-
methodology.net/research-philosophy/ last accessed on 6th April 2018
15. Saunders, M.N. and Lewis, P., 2012. Doing research in business & management:
An essential guide to planning your project. Pearson.
16. Scheck, S., 2016. Online available at
http://tweakyourbiz.com/technology/2016/08/30/8-major-impacts-of-information-
technology-on-businesses/ last accessed on 5th April 2018
17. Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill
building approach. John Wiley & Sons.
18. Solis, B., 2016. Online available at https://www.cognizant.com/whitepapers/the-
six-stages-of-digital-transformation-maturity.pdf last accessed on 3rd April 2018
19. Westerman, G., Bonnet, D. and McAfee, A., 2014. Leading digital: Turning
technology into business transformation. Harvard Business Press.
26

APPENDIX
QUESTIONNAIRE
1. According to you, how much EDF Energy is aware about digital technology and
transformation?
a) Approve
b) Somewhat Approve
c) Indefinite
d) Slightly Disagree
e) Totally Disagree
2. Which business systems are being impacted by the advent of digital technology
in EDF Energy the most?
a) Production System
b) Administration System
c) Storage and distribution System
d) Communication System
3. Has your company, EDF Energy explored the influence of digital technology and
digital transformation on the dealers, allies and distributors?
a) Approve
b) Somewhat Approve
c) Indefinite
d) Slightly Disagree
e) Totally Disagree
4. Did your Firm, EDF Energy’s leadership contemplate the funds, budgets and
return on share associated with digital transformation?
a) Approve
b) Somewhat Approve
c) Indefinite
d) Slightly Disagree
e) Totally Disagree
27

5. Is EDF Energy, as per your experience prepared and equipped to agree upon the
change in firm?
a) Approve
b) Somewhat Approve
c) Indefinite
d) Slightly Disagree
e) Totally Disagree
6. EDF Energy, as per your experience, reacts swiftly to the change in firms?
a) Approve
b) Somewhat Approve
c) Indefinite
d) Slightly Disagree
e) Totally Disagree
7. What factors will be considered more as per the introduction of the digital
transformation and digital technology?
a) Boost in effectiveness and reduction in cost
b) Rise in profits
c) Growth and development of customer relationship
d) Protected product effectiveness
e) Lift in satisfaction levels of employees
8. Among the factors given below, which one can inhibit the progression of
transformation of digital technology in EDF Energy?
a) Insufficiency of supervision and leadership
b) Distress of change
c) Other factors
d) Unproductive financial plans
e) The threat linked to Cyber security and data protection
9. Does EDF Energy, as per your experience has an operational plan or a strategy
in replacement of digital transformation?
28

a) Approve
b) Somewhat Approve
c) Indefinite
d) Slightly Disagree
e) Totally Disagree
10. EDF Energy, as per your knowledge and experience is well accustomed with
what all technologies mentioned below?
a) Enterprise Resource Planning (ERP) and BPM systems
b) Cloud computing
c) (IoT) Internet of Things
d) Artificial intelligence and Big data Analytics
e) All
11. According to your experience, what is the present-day IT infrastructure of EDF
Energy?
a) Brilliant
b) Very good
c) Slightly good and fair
d) Unsatisfying
e) Slight progression
12. Do you agree upon the fact that strategies and plans formed for adapting to
digital technology and transformation will bring positive change in EDF Energy?
a) Approve
b) Somewhat Approve
c) Indefinite
d) Slightly Disagree
e) Totally Disagree
29