U31220 - Digital Transformation (Group Reflective Report).

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U31220- Digital Transformation (Group Reflective Report)
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Contents
List of figures ............................................................................................................................................................................................. iii
Lists of Table ............................................................................................................................................................................................. iv
Introduction to the digital challenge ........................................................................................................................................................... 1
Vision/ mission of the company ................................................................................................................................................................. 1
Role 1: Chief Executive officer .................................................................................................................................................................. 2
Role 2: Account executive manager ........................................................................................................................................................... 6
Digital technology devices used by TCs ................................................................................................................................................. 7
Role 3: ....................................................................................................................................................................................................... 10
Role 4: ....................................................................................................................................................................................................... 10
SAF Assessment ................................................................................................................................................................................... 11
The Digital Transformation Plan .......................................................................................................................................................... 13
Justifying the digital transformation plan ............................................................................................................................................. 14
Conclusion ................................................................................................................................................................................................ 15
References ................................................................................................................................................................................................. 16
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List of figures
Figure 1: Porter Five Forces ....................................................................................................................................................................... 5
Figure 2: Digital Transformation Plan Achievement................................................................................................................................ 14
Figure 3: AI Trends in Logistics ............................................................................................................................................................... 14
Figure 4: Autonomous Delivery Robots Market ...................................................................................................................................... 14
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Lists of Table
Table 1: DIGITAL TRANSFORMATION CANVAS ............................................................................................................................... 9
Table 2: Self-Assessment Framework ...................................................................................................................................................... 12
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Introduction to the digital challenge
The abbreviation for TCS is TRAZUM COMPANIES AND SERVICES. The courier company TCS ("A Tranzum Enterprise") has its
headquarters in Pakistan and serves the nation's entirety. Since its humble beginnings in 1983, the brand has become a global powerhouse
with more than 2,000 outlets in Pakistan. Additionally, the firm operates a cargo-only airline at several Pakistani airports.
After nearly three decades in business, the TCS name has been synonymous with trust and trustworthiness. With over 6 million monthly
pickups and deliveries, TCS provides domestic and international express services to individuals, companies, small and medium-sized
businesses, and families. TCS's mission is to provide you with the most acceptable level of service and dependability in the business by
employing over 6,000 people across its network of 430 Express Centers, dedicated charter planes, 2000 online and offline locations, and
over 225 satellite-tracked delivery vans. TCS's business partners in Dubai and London give its customers access to more than 3,500
destinations through TCS. As TCS's business model has evolved, it has achieved several significant milestones. Customers are TCS'
driving force, and the Pakistani courier service's desire to be a market leader has always driven it (Akhtar, 2020). As a result, the express
courier sector now has guidelines to help raise the overall quality and consistency of the service.
Currently, TCS is addressing the following issue:
"Orders continue to be misplaced, and drivers remain disoriented due to TCS's products and services, causing logistical issues for drivers.
The addressing system of Pakistan was well-established, but no government created a postal code system. This impacted TCS's logistical
planning and optimization" (Baldi et al., 2019).
Vision/ mission of the company
Vision
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"TCS will be recognized as a professional, inventive, and successful information technology-based logistics/services organization. TCS's
mission is to become a regional and global player concentrating on the Middle East, Europe, and North America, with customers,
workers, and shareholders at the centre of what it does. TCS demonstrates a strong commitment to ethical behaviour and corporate
citizenship." In point of fact,
Mission Statement
"It is vital that we devote all of our resources and attention to increasing the profitability of our core company while expanding into new
areas that complement and augment our core business, to establish excellence and industry leadership in the new markets. On the other
hand, TCS staff will be encouraged to be open to new ideas and services and identify emerging trends early on." In point of fact,
Roles for the digital transformation
Chief Executive Officer
Account executive manager
Operations director
Research Analyst
Digital Strategist
Customer Service Manager
Role 1: Chief Executive officer
Regardless of how extreme a business decision may appear, the CEO's input is vital. Digital transformation substantially transforms a
company's sales and marketing operations and business procedures. CEOs may effectively guide their companies through the transition
to the digital economy using innovative management strategies.
Due to demographic and digital trends, global exports are rising, but logistics companies cannot rest on their laurels. However, TCS has
been slower than other companies to adopt digital technologies. Even the most established organizations in the industry could be in
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jeopardy if they fail to capitalize on the slower rate of digital adoption. The logistics industry's reliance on digital platforms will increase
in the coming years, allowing smaller enterprises to compete internationally with the industry's established heavyweights. As a result of
the race to develop a worldwide platform, the customer experience of TCS will undergo a significant transformation over the next
several years.
Because TCS is a prefabricated system, customization options are limited. Without an Application Programming Interface (API) and
connectivity with customer addresses, it is difficult to have a reliable delivery procedure, on-time deliveries, and an extended GPS
position with local postal codes. When a customer uses the order number on TCs' website, they can track their order, allowing the
company to provide superior customer service. This decision-making system will help the organization better grasp the strategic value
of the system since it integrates all three levels of decision-making in a single model (Valacich & Schneider, 2016, pp. 80-83). When it
comes to daily operations and tactical decisions, technology facilitates decision-making through improved communication, on-time
delivery, and support for better resource allocation and programme design via virtual assistance. Strategically ineffective, however, if
TCS data are not manually integrated. The 1979 publication of Michael E. Porter's book "How Competitive Forces Shape Strategy" was
a game-changer in business strategy. Porter's Five Forces, sometimes known as "Porter's Five Forces," was one of the most significant
contributions to the subject. TCS has now become a global organization that has its business worldwide. TCS is a courier network that
can provide services worldwide in a very effective and efficient way. People have now shown great trust in TCS. For eons, TCS's
reliability has made the company successful in Pakistan. TCS offers domestic services to the people by maintaining all the quality
attributes expected from the best courier service provider. Porter's five forces is a useful Tool to conduct competitor analysis
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Bargaining power of buyers
TCS, A Pakistani entrepreneurial air-express company, is driven to reduce the price of its high-
quality goods due to the negotiation strength of its clients. Customers of TCS, An
Entrepreneurial Air-Express Company in Pakistan, can switch to other options more simply due
to the company's robust negotiation power.
There are three primary reasons why purchasers have considerable negotiating power:
This is due to the wide availability of alternatives and their abundance.
The low economic and psychological barriers to switching.
Bargaining power of suppliers
Weak bargaining power of supplier makes it comparatively less important
strategic issue for TCS An Entrepreneurial Air-Express Company in
Pakistan as suppliers cannot dictate the prices and have to accept the TCS
An Entrepreneurial Air-Express Company in Pakistan’ terms and conditions.
Three factors result in moderate to weak supplier power:
A large number of suppliers
High overall supply
Suppliers’ weak control over their distribution network
Threat of substitutes
TCS Due to technology developments, a Pakistani Entrepreneurial Air-
Express Company faces competition.
A shift in customer tastes toward healthier meals has compounded this
risk for TCS. Businessman's Air-Express Company in Pakistan.
The following are some of the main reasons why substitutes are a
serious concern:
Substitute items with a high performance/cost ratio.
Substitute items are readily available in the market.
Cost-effectiveness of a changeover.
The threat of new entrants
TCS The threat of new entrants to a Pakistani entrepreneurial Air-Express company is moderate, which
implies that TCS is not significantly impacted by new competitors. Air-Express Company in Pakistan's
Entrepreneurial Market Share
The industry requires a high level of marketing expertise and a large investment in marketing operations
in order to enter.
TCS New entrants pose a moderate danger to a Pakistani air-express business for the reasons listed below:
The threat is diminished by the high expense of developing a brand.
The threat is exacerbated by the low cost of switching.
High capital costs make the threat less significant.
Competitive rivalry
TCS, An Entrepreneurial Air-Express Company in Pakistan,
is having difficulty achieving its market growth targets
because of the high level of competition among its
competitors.
Creating a product that stands out in a crowded market has
gotten increasingly complex.
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Figure 1: Porter Five Forces
When it comes to commercial transportation and logistics, drones can be an ideal answer to these challenges because they are more cost-
effective, environmentally friendly, and capable of meeting consumer demands more successfully. In other words, Transforming TCS's
transportation and logistics capabilities by using drones for deliveries might result in significant cost savings and improved customer
service, while also improving the environment and the economy" (Welch, 2015; Stanford Business, 2016).
Within 30 minutes or less, the drone delivery service will deliver packages. To provide "seamless peer-to-peer delivery by air," TCS
plans to develop a network (Eniverse, 2017). Because of the lower delivery costs connected with drones, services can be given at a low
and competitive price (Space, 2017). In addition to innovation, high quality, ease and speed of delivery being the significant factors
driving firms to embrace TCS, other service values will be included. During the first year of operation, the start-up will have a budget
of $2,000,000 to cover the first entrance, network construction, and other operational expenses. In year 3, the company is expected to
break even. Strategic planning, stakeholder communication, and general organizational guidance are all responsibilities that fall under
my purview.
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Role 2: Account executive manager
Maintaining assigned accounts, providing continuing customer assistance, and designing and implementing sales strategies based on the
delivery of logistical services is my primary responsibility as a TCS account executive manager. As a TCS representative, my primary
responsibilities include discovering and contacting potential customers to offer TCS services, negotiating contracts, and integrating
relevant technological solutions to improve logistics and communication. As a result, my job at TCS entails selecting the most cost-
effective and time-efficient transportation options for customers. My role in this digital transformation is to build and maintain a strong
carrier network and strong customer connections.
By doing a gap analysis on a business unit's performance, it is feasible to determine whether business goals and criteria are being met.
Needs assessment, needs gap analysis, and needs analysis are alternative terms for gap analysis (Suriadi et al, 2014). The service quality
gap model created by Zeithaml and Bitner (2003) investigates the discrepancy between perceived and intended service quality.
Customers receive what they desire from service providers who fulfil these expectations. Using the customer gap idea, logistics company
managers can design different criteria for evaluating their services. The gap concept also aids managers in analysing performance-value
gaps in order to improve their services or establish improvement objectives, resulting in a "win-win" strategy for both the company and
its clients.
The analysis of TCS's expected and actual performance reveals a significant disparity. Customer and employee perspectives of the
company diverge. This gap is created when management or service providers do not comprehend the client's desires or requirements.
To explain this disparity, TCS goods and services continue to pose logistical problems for drivers, such as unclear directions and drivers
who become disoriented. Pakistan never implemented a postal code system, despite the fact that the country's addresses were accurately
established. This hindered the planning and optimization of TCS's logistics.
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According to Hirt and Willmott (2014), the "digital era" has drastically altered the competitive landscape of the logistics service industry
(Hofmann and Osterwalder, 2017). In order to maintain a competitive advantage in the transportation market, TCS must enhance its
value proposition. Using digital capabilities to boost productivity, produce value for clients, manage risk, and uncover new revenue
streams in a short period of time is one example. S&R need a digital transformation plan to identify and evaluate the potential of digital
capabilities and to develop a new business model that will enhance customer satisfaction, operational efficiency, and corporate culture
(Fostec & Company, 2020)
Digital technology devices used by TCs
Geo-coding was one of the most important initiatives in this project. Even though Pakistan's addresses were established, any government
did not implement a natural postal code system (e.g., the UK's postcodes or the US' zip codes). Due to the lack of accurate description
and placement of addresses in TCS' logistics planning and optimization, this was an issue. TCS had started coding the lessons by
capturing the GPS positions of delivery addresses at the time of delivery to remedy this issue.
As a result, TCS was in talks with Google, which could code an entire street if the codes for two property numbers on that specific street
were provided to them. This coding scheme was supposed to be implemented across the country within the next eight months. The
couriers were also given portable gadgets as part of another significant endeavour. Phase-by-phase, this programme was designed to
help shippers track their shipments and obtain more detailed information. Cardholders received unique bar codes on their identity cards
at the business clients' locations. The rider scanned the client's identification card, pasted and checked a unique code for the parcel, and
took an image of the package during the pickup. When riders handed off boxes at the consolidation centre at the end of their shift, this
information was initially available. Still, it was instantly transferred to the backend via the device, allowing the information to be used
to arrange deliveries for the following day.
The term "digital transformation" refers to a continual journey into the digital world. It's not so much a project as it is a new method. To
succeed in today's digital world, you must transform your firm (Vial, 2019). Disruption occurs across all industries due to digital business
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transformation, dismantling traditional boundaries between people, companies, and objects. They can produce new products, services,
and ways of doing business by breaking down these obstacles. A wide range of companies and industries are adopting the latest
technological advancements. These initiatives differ in their specific focus, but they are all united by a common goal: transforming
business models, increasing worker productivity, and delivering more customized service to customers and citizens (Schwertner, 2017).
These companies need an outcome-driven and technology-enabled Digital Business Platform.
Digital Transformation Canvas is a toolbox for business owners, entrepreneurs, and executives who wish to train their teams to identify
possibilities, develop, and generate ideas that will fundamentally transform the firm from its current state to a prosperous future state
(Osterwalder & Pigneur, 2010).(Osterwalder & Pigneur, 2010). The Digital Transformation Canvas provides a framework for
considering significant areas of activity that might support an organization's digital transformation (Kotarba, 2018).
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Table 1: DIGITAL TRANSFORMATION CANVAS
1) Business Driver products
Our goal is to help
shipping firms become
more effective,
competitive and
lucrative while also
increasing the speed
and quality of the
solutions they supply
using artificial
intelligence (AI). A
fake intelligence app
can help supply chain
management by
providing several
critical solutions,
including forecasts and
projections, shipping
route planning, etc.
3) Key Stakeholder
Chief Executive Officer
Account executive manager
Operations director
Research Analyst
Digital Strategist
Customer Service Manager
4) Data objects in Scope
Or tracking that's smart
On-time delivery of your
order
Utilize mobile devices for
order tracking
Postal codes are used to
locate GPS devices.
5) Data object Current
Available format
A GPS tracker isn't always
reliable for order tracking.
unsure of address and zip
code
8) Business Value Drivers:
Increase Revenue
Increase Customer Satisfaction
7) Partnership
Adverse the shipment
route procedure
Driverless Delivers
New data management
System
6)Digital Transformation
Machines
Shipping routes can be
planned via a network of
connected devices.
Assisting in the use of
technology
9)Implementation
Mobile Application with perfect
GPS and excellent order tracking
system
2) Business Value Proposition
Our AI app aids drivers in meeting their delivery deadlines and taking the most efficient routes possible. In addition,
clients will be able to track their orders via their mobile devices and get help from virtual assistants.
10) KPIs
10% increase in premium
5% improvement in the opportunity to
close ratio
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Role 3:
Role 4:
As a digital strategist at TCS, it is my job to analyze its digital strategy, implement improvements, and explore new digital tools and
interactive trends to optimize SEO for TCS. Create an integrated and cost-effective digital plan for the TCs and produce value for them.
Analyze and report on TCs' digital campaigns, as well. Digital events are the most critical part of TCS's strategy.
Significant changes in business practices and an increasingly competitive and ever-evolving corporate climate are both directly
attributable to globalization. It is difficult to identify the strategic concerns that affect corporate operations in many large businesses.
Furthermore, establishing long-term initiatives that guide an organization's progress is a challenge. Computers and information
technology have made it easier than ever before for companies to develop strategic plans to help them grow and prosper. An "MIS" is a
strategic system that aids in gathering, analyzing, disseminating, and storing organizational data in the form of information necessary to
perform managerial functions (McLeod & Schell, 2007).
After nearly three decades in business, TCS has become a household name. Information systems (IS) are concerned with planning,
developing, administering, and utilising information technology solutions to enable people to do all information processing and
management-related jobs (Haag & Cummings, 2008, p. 29). MIS aids in planning by supplying the necessary data that facilitates firm
decision-making, particularly in large organisations where managers cannot have direct control over all processes. In addition, it reduces
data overload by compressing the vast majority of data into a smaller format. MIS achieves this by decreasing the quantity of information
that can be misinterpreted. MIS also promotes decentralisation and collaboration by providing a monitoring platform for lower-level
tasks.
To make informed decisions at TCS, MIS provides the information needed in an accurate and up-to-date system in an updated and
precise form. Because of this, IT aids in decision-making by making data more easily accessible and delivering it more quickly. For
people in need, this plan will also entail distributing information.
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As a result, TCS plans to enhance its Customer Relationship Management Systems CRM (Client -relation management) to improve
revenue, customer happiness, and customer retention. Stock will be delivered directly into the store at night and without staff supervision,
allowing staff to focus on sales and service during essential business hours, thereby preventing time waste.
An integral aspect of transportation, a delivery process begins when the finished product is ready. Order records for a car are forwarded
to GM's logistical information. It is here that the proper mode of transportation for the goods and the route for retail delivery are
determined. In light of the circumstances, it is evident that TCS has a restricted pool of drivers, as the delivery schedules are based on
the expected availability of those drivers only (Bemowski, 1995).
This demonstrates that truckers are frequently deprived of adequate rest time when transporting goods to shops. TCS may be
experiencing increased product damage rates because of a shortage of drivers. This is because weary drivers in TCS are more likely to
drive carelessly, and as a result, many of the vehicles are destroyed during transit (Gibson &Wilson). TCS will use driverless cars and
drones to transport people instead of people being transported by humans.
SAF Assessment
Self-assessment is critical to an organization's success. To achieve its goals, a company needs to use various strategies. An organization's
assessment report can reveal whether or not its efforts are succeeding. Systems need to be established and implemented based on the
best knowledge and expertise of the organization's members. For a corporation to feel secure, it must validate the efficacy of its
processes. There must be an evaluation to establish how much progress has been made toward the goal.
Self-assessment is a tool that may be used to assist organizations in improving their performance. The Baldridge framework helps
organizations examine their processes and their impact on their outcomes.
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Table 2: Self-Assessment Framework
Option S A F Total
New data management technologies 3/4 4/4 4/4 11/12
New Delivery Channels 4/4 4/4 4/4 12/12
Data and Hyper-personalization 4/4 3/4 4/4 11/12
This exam helped me learn about the current market trends in the logistics sector as a digital strategist. TCS needs new data management
systems and new distribution channels. Data hyper customization is also required. An organization's long-term plan sets the course it
will take to accomplish its objectives. Developing a strategy that will provide you with an advantage over your rivals can be the purpose
of this process. According to Vu (2007), strategic objectives are driven by the organization's organizational structure. The top executives
create a general strategy, and then managers in each division or department create a more detailed plan to achieve the overall company
objectives. A digital business strategy is a hybrid of IT and business planning. An organization's digital business strategy is defined as
creating additional value via digital resources in formulating organizational design. By implementing TCS's customer
engagementstrategy (Brodie, 2011), the ultimate customer experience may be achieved, including both before and after a sale has been
finalized. Numerous communication methods are utilized to develop relationships, increase customer satisfaction, and actively nurture
the TCS client base.
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The Digital Transformation Plan
A digital transformation plan is a long-term strategy that focuses on digital media integration, new technology installation, and digitally
intelligent working methods. This plan is designed to help you compete more successfully with digital marketing (Gebayew et al., 2018).
TCS's digital transformation strategy is laid out here. New Tech
Manual ordering and management of
supplies
RFID tags for internal stores
Mobile communications network a
centralized database.
Using AI apps to give a better
Experience to drivers and
Customers
New Channels
Drones
Delivery robots
Driverless vehicles
Will provide drivers best
GPs routes using postal
codes.
It will provide customers
with a better experience and
make them highly satisfied.What will
TCS Achieve
Through
This DT Plan
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Figure 2: Digital Transformation Plan Achievement
Justifying the digital transformation plan
As a result of their effectiveness, autonomous delivery vehicles are more in demand, driving the market's expansion. CART, a platform
that connects brands and retailers with emerging technology solutions, says that automated delivery robots could revolutionize the
industry by reducing delivery costs by 80 per cent to 90 per cent and saving time
compared to a human doing it, depending on the robot and the platform used.
Figure 3: AI Trends in Logistics
Figure 4: Autonomous Delivery Robots Market
According to a new analysis, the global
AI in the logistics market is expected to
increase at a CAGR of 24% between
2021 and 2027.
Delivery Robots That Are Self-Aware At a
CAGR of 21.7 per cent, the market is
expected to increase from USD 42.92 million
to USD 274.37 million between 2022 and
2030.
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Conclusion
The digital transformation process has been in a state of continuous evolution. Over the past few decades, the notion has evolved from
simple data mining and internet connectivity to machine learning and the Internet of Things. The business market has been dominated
by single-feature solutions and cumbersome, obsolete enterprise systems. Future enterprises will only become more complicated,
necessitating more flexible and adaptable enterprise-wide management solutions. To remain competitive, you must spend on increasing
your employees' digital intelligence and incorporating new technologies. There are several benefits, ranging from increased productivity
and cost savings to the ability to focus on growth.
Through the digitalization plan of TCS we proposed above, it will give company a rapid growth in logistics and courier service industry.
TCS will resolve the issue of timeless deliveries using AI application that will track the orders in a right way by using GPS location
with area postal code. On other hand, TCS will go with market trends of autonomous deliveries using drones and driverless vehicles.
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References
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