Impact of Digital Technology on Small Business

This assignment tasks students with analyzing the influence of digital technology on the growth and innovation of small businesses. It involves conducting research, collecting relevant data through a questionnaire, and evaluating the findings to understand the relationship between digitalization and business success. Students are required to demonstrate their project planning skills, data analysis abilities, and critical thinking by reflecting on the project's outcomes and identifying areas for improvement.

UNIT 6: MANAGING SUCCESSFUL BUSINESS

UNIT 6: MANAGING SUCCESSFUL BUSINESS
Table of Contents
Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1: Devise project aims and objectives for a chosen scenario.....................................................3
P2: Produce a project management plan .....................................................................................4
P3: Produce a work breakdown structure and Gantt char............................................................6
TASK 2............................................................................................................................................8
P4: Carry out small-scale research by applying quantitative and qualitative research ..............8
TASK 3..........................................................................................................................................12
P5: Analysis of the research and data by using suitable tools and techniques..........................12
P6: Communicating the appropriate recommendations in the research to reach to valid
conclusions ................................................................................................................................14
TASK 4..........................................................................................................................................15
P7: Reflecting on the value of undertaking of the project to meet the objectives ....................15
REFERENCES..............................................................................................................................17
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INTRODUCTION
In this competitive world every business is trying to gain competitive advantage and achieve
profitability. In order to manage the business in a successful way the business need to have
proper planning and management system for organising the work system (Mir and Pinnington,
2014). The present topic is based on the impact of digital technology in supporting small
business growth and innovation. The study will be undertaking the medium business named
Regency Cafe in UK which does not have more than 150 employees and the annual turnover is
not exceeding more than 5 million per annum (REGENCY CAFE LONDON. 2017). The chosen
organisation will prepare a project report based on the topic given. It will give an opportunity to
illustrate the skills that is required for managing and implementing a research project. Hence, the
present study will undertake an independent research and carry out a business project that has
appropriate aims and objectives.
TASK 1
P1: Devise project aims and objectives for a chosen scenario
Over the last decade the use of digital technology has changed business models and transformed
business activities effectively. The usage of digital technology is increasing day by day giving
the business a new path to grow and innovate. Besides, the emergence of digital technology and
its usage has given the business to gain opportunity through which the business enterprise has
gained many market opportunities (Kerzner, 2013). Apart from that, it has enabled the business
to sale the products and services among large number of customers to become profitable and
innovate new products according to the expectations of customers. For example, it helps business
to administrate the operation effectively with the use of cloud technology. Moreover, the usage
of social media and mobile technology also help the business enterprises to connect with large
number communicate (Larson and Gray, 2013). This enables to build relationship and
communicate with the customers to know their feedback regarding the services.
Therefore, the project aims are showing the influence of digital technology in Regency cafe for
the business growth and expansion.
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The objectives of the research project are stated below:
 To understand the role played by digital technology within Regency Cafe
 To assess proper planning for implementing digital technology within the organisation
 To identify the requirement of Regency Cafe
 To identify the challenging situations that are faced by Regency Cafe while implementing
digital technology
 To recommend suitable strategies for solving the challenging situations
P2: Produce a project management plan
In order to implement digital technology in Regency Cafe, the management need to focus on
various factors that is required at the time of planning. These factors include cost of project,
quality, time required, and communication system with various stakeholders and risk that can
come across.
The cost is calculated below:
Particulars Amount
Setting up the system £ 250,000.00
Repairs £35,000.00
Maintenance £15,000.00
Operational cost £ 2,000.00
Labour cost £ 15,000.00
Total cost incurred in setting up the digital
system
£ 3,17,000.00
Table 2.1: Cost required for the completion of Research project
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Scope: The scope of this research project is to understand the effectiveness of digital technology
to make growth. Implementing cloud computing within Regency Cafe has helped them to
enhance the security system. They are able to store data in safe way without misleading any
discrepancy. This has helped the company to connect with large number of customers within a
particular period. Besides, with the use of social media and creating own profile on social media
page has helped Regency cafe to attract customers and get connected with the loyal customers.
Besides, it has enabled in improving communication with the customers and has allowed the
business to stay connected by building relationship with the customers. Apart from that, the
internet system has helped in connecting and integrating the business system throughout the
management structure. Besides, the big data analytics are giving the business better scope to
innovate new services and make business growth (Nicholas and Steyn, 2017).
Time: For the completion of project Regency cafe takes 8 months in order to get suitable
research outcome. The reason behind the duration of time taken is to implement digital
technology like cloud computing within the organisation successfully. Besides, the changes that
are bought down within the workplace are new for the employees who are already associated
hence; they need to be trained properly to handle the systems. By improving their working skills
the company can improve performance and reduce conflicts situations. Moreover, the employees
will be liable enough to handle the challenging situation that comes across after implementing
new technologies. It is advantageous for the stakeholders as they can carry out their work process
effectively (Phillips, 2013).
Quality: It is essential for Regency cafe to look after the quality of the system and the work
process that is carried out with digital technology. Hence, it is necessary to create a team of
project management by selecting skilled employees who can handle the system and maintain
effective customer relationship management. Apart from the planning, the management needs to
have adequate knowledge to work with cloud computing and maintain records in an effective
manner. This will able the organisation to focus on the quality while assessing data and
information (Schwalbe, 2015).
Communication: Communication is the most vital factor that the organisation needs to carry out
effectively. While implanting the new system within the organisation, the company need to make
sure that the relevant information is passed among the group of employees. Communication is
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the best way to remove misunderstanding between the groups of employees. The management
needs to make sure that proper feedbacks are taken from the staffs to understand the problems
faced by them while assessing digital technology (Heizer, 2016). This will help in solving the
problem effectively.
Risk: Cloud computing has number of disadvantages which the organisation might face while
working with it. Therefore, the management need to look after the problems and train the staffs
to assess the risk beforehand. Regency Cafe needs to select efficient stakeholders who access the
database for enhancing security. To keep the business away from risk the systems need to be
updated with modern security system (Laudon and Laudon, 2016).
Resources: While carrying out the project the management need to make sure that they are
having adequate number of resources. These can be financial resources, human resources,
technological resources and other necessary resources to implement digital technology within the
workplace. Proper planning should be done to use the resources effectively. Besides, effective
operational management need to there to reduce cost of production. By hiring IT professionals,
the organisation can bring quality in their work process (Choi et al. 2017).
P3: Produce a work breakdown structure and Gantt char
Activities 1st
Month
2nd
Month
3rd
Month
4th
Month
5th
Month
6th
Month
7th
Month
8th
Mont
h
Planning the
resources
Developing
effective
project team
Developing
budget
Assessing and
analysing risk
Communicatin
g with the
employees
Hire External
Support for
business
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progress
Setting up
machineries
Creating
accessing
system
Selecting
potential
stakeholders
Training the
staffs
Working stage
Table 3.1: Gantt chart
(Source: Self-Created)
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TASK 2
P4: Carry out small-scale research by applying quantitative and qualitative
research
In the present research project, regency cafe uses primary data collection method for collecting
raw data from the population. Besides, secondary data is also used for getting knowledge
regarding the existing information on the topic. The primary data are analysed by using
qualitative and quantitative data analysis method. The employees working within the company
are selected by quantitative data analysis and the managers are undertaken for qualitative data.
The employees are selected by using probability sampling method whereas, managers are chosen
by using non-probability sampling method. Regency Cafe has selected 50 employees by using
random sampling technique. Besides, 2 managers are selected by using purposive sampling
technique. For conducting quantitative research questioners are set for the employees where the
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questions are close ended whereas, for the manager’s interview are conducted by asking open
ended questions.
While collecting data from the respondents the management consultant made sure Data
Protection Act is followed where the information collected from the Regency cafe were only
used for business purpose. The data was protected under this act so that it is stored properly and
misplacement of data does not take place (Sekaran and Bougie, 2016). The research was reliable
as each data is different from one another as the view point of the respondents was varying from
one another. The research is valid as the questions asked to the respondents were signifying the
research topic and research objectives.
Quantitative Analysis:
Q1: How far digital technologies like cloud computing has helped in effective filing and
storage?
Options Total number of
respondents
No. of response Percentage of
respondents
Strongly Agree 50 30 60%
Agree 50 10 20%
Neutral 50 5 10%
Disagree 50 3 6%
Strongly Disagree 50 2 4%
Table 4.1: Effectiveness of cloud computing in filing and storing data
Figure 4.1: Effectiveness of cloud computing in filing and storing data
Q2: How far the use of social media has helped to share information and connect with large
number of people?
Options Total number of
respondents
No. of response Percentage of
respondents
Strongly Agree 50 25 50%
Agree 50 15 30%
Neutral 50 5 10%
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Disagree 50 3 6%
Strongly Disagree 50 2 4%
Table 4.2: Usage of social media in sharing information and attracting customers
Figure 4.2: Usage of social media in sharing information and attracting customers
Q3: How far do you agree that digital technology like cloud computing has reduced the
chance of data hacking?
Options Total number of
respondents
No. of response Percentage of
respondents
Strongly Agree 50 25 50%
Agree 50 10 20%
Neutral 50 8 16%
Disagree 50 4 8%
Strongly Disagree 50 3 6%
Table 4.3: Effectiveness of cloud computing in reducing the chance of hacking
Figure 4.3: Effectiveness of cloud computing in reducing the chance of hacking
Q4: How far cloud computing can help in increasing business performance and productivity?
Options Total number of
respondents
No. of response Percentage of
respondents
Strongly Agree 50 30 60%
Agree 50 10 20%
Neutral 50 5 10%
Disagree 50 3 6%
Strongly Disagree 50 2 4%
Table 4.4: Cloud computing increasing business performance and productivity
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Figure 4.4: Cloud computing increasing business performance and productivity
Q5: How far artificial intelligence and big data analytics has helped in maintaining security?
Options Total number of
respondents
No. of response Percentage of
respondents
Strongly Agree 50 25 50%
Agree 50 15 30%
Neutral 50 10 20%
Disagree 50 2 4%
Strongly Disagree 50 3 6%
Table 4.5: Artificial intelligence and big data analytics has helped in maintaining security
Figure 4.5: Artificial intelligence and big data analytics has helped in maintaining security
Qualitative Analysis:
Q1: How digital technology has helped in improving business performance?
Manager 1: “It has helped Regency Cafe in storing data and maintains security in financial and
operational process”.
Manager 2: “We are benefited in connecting with large number of customers and connect with
loyal customers through social media page”.
Q2: What are the issues faced while implementing digital technology within the organisation?
Manager 1: “We were facing problem in handling the technology”
Manager 2: “Many employees were not cooperating with us for the changes”
Q3: What are the suitable ways to overcome the challenges?
Manager 1: “Proper training need to be given to the existing employees”
Manager 2: “Proper assessments need to be done after training the staffs and in case of any data
loss another backup system need to be kept”
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TASK 3
P5: Analysis of the research and data by using suitable tools and techniques
The study has chosen employment of questionnaires in the researches that has included the
survey among the employees as well as the interview among the managers in the organization. A
critical analysis has been done in the research in order to reach to the expected outcome that is
aimed during the formation of the research aims and objectives.
While conducting the survey there were a total of 50 respondents that were included in the
survey. Among the 50 respondents about 60% has strongly agreed to the situations that states
that the cloud computing technologies have been effectively implemented in the organization
that is Regency Cafe. On the other hand, about 4% of the total respondents have strongly
disagreed to the statement. 10% of the respondents in the organization have been found to remain
neutral in this stature.
On the question of usage of social media for information sharing in the organization about 50%
that is the half of the total strength of the respondents in the research has agreed with the strong
influence of the social media in the functioning of the organization. Therefore, the positive
effects within the information sharing have been considered in this stature by most of the
employees. While 10% of the respondents remained neutral to the question among 4% of them
has strongly opposed the statement by disagreeing to it.
On the question of reduction on the possibility of the data hacking though the usage of the digital
technology it has been found in the survey that most of the respondents as much as 50% of them
have strongly agreed to the fact that is presently prevailing in the organization. About 6% of the
employees have strongly disagreed to the same along with about 16% of them being neutral.
The functioning of the cloud computing and its incorporation in different companies have found
it highly implacable in the functioning. The effective implementation of the same has been
considered to be one that has improved the functioning of the respective organization. However,
about 60% of the respondents have taken the situation to be positive in case of Regency Cafe.
6% of the respondents have found the implementation of the could computing in the organization
not relying to the increase in their performance and productivity.
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A question has been included in the survey questionnaire that enquires about the extent of
contribution of the data analytics and artificial intelligence in maintenance of the security of the
business. About 50% of the respondents has strongly agreed to the situation where the
incorporation of the cloud computing in the organization has enhanced the security system
through proper implementation of artificial intelligence in Regency Cafe.
On the other hand, an interview has been conducted among the managers in the organization in
order to understand the internal stature of functioning in the organization. A questionnaire was
considered in the interview process where the views on the subject were collected from two
managers. The first question that was asked was intended to understand the contribution of the
digital technology to improve the performance of Regency Cafe. In this situation, the managers
have produced a view that inspires the use of digital technology in a business organization to
improve under the present stature of technological advancement. The second manager says that
communication with customers has been benefitted through this process which includes social
media pages.
On the question of issues of implementing digital technology in the organizational management
the managers have produced a positive attitude to it. However, the managers stated that there
have been a number of inhibitions while installing the digital technology in the organization.
According to the second manager, the company has been facing a number of issues and
obligations from the employees following their non-cooperation in the installation of the digital
technology in the organization. The organizational changes during digital technology installation
have been considered to be a hindrance by the employees who were not well recognized to the
matter. Besides, the issues on handling of the new technology have been suggested to be
problematic by the first manager. Scarcity of trained employees have this affected the
functioning that ultimately proved to be hindrances in proper employee performance.
The third question referred to the suitability of the ways that can be employed to overcome
challenges. In order to answer this, the first manager said that providence of proper training is the
most recent need of the organization. This method has thus been considered as one with
relatively less complexity. The second managers described that provision of proper assessment in
the organization has to be done that considers all the management sector of the company. A
backup system is also planned to be suggested by the second manager who believes that this
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system will help in filling the void in case of any data loss during long term functioning of the
organization Regency Cafe.
P6: Communicating the appropriate recommendations in the research to
reach to valid conclusions
The situation in the organization has been found to be critical while talking about the installation
of the digital technology in the organization. Therefore, the functioning in the organization has
been put into dilemma by the employees who were not aware of the benefits that usage of digital
technology may induce in the organizational profits. Although, the company is gaining more
profit from implementation of artificial intelligence in the organization, the employees in the
organization was not likely influenced by this improvement on the investment return. Therefore,
a situation of turmoil has been created in the organization that requires to be handled with care.
Therefore, the research has produced certain recommendations for Regency Cafe that may help
them to overcome the situation of crisis at faster rate.
1. The company management should pay greater attention to the employee satisfaction
Employee satisfaction should be ensured in the organization. This might have implications on the
company profit. However, these issues can be solved once all shifts of workforce become fully
functional. Reproduction rate should be reduced and maintained at minimal to average profits.
The set up of the technology should draw more from the revenue and should be mainly
dependent on the same rather than relying highly on the profit rates.
2. Employee induction should be included
Induction process should be prioritised during this period. Training should be provided to each
employee who will be allocated with a less quantity of tasks. Hiring of new employees should
also be practised under a fully functional Human Resource Department. The new employees thus
employed in the organization should also be passed through a rigorous induction process in the
order to employ a double workforce at later with the aim to double the production. This should
be followed by completion of the installation of the digital technology as well as completion of
the induction procedure of the employees (new as well as existing).
3. A continuous process of assessment should be maintained
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As has been suggested by most of the managers in the organization, the process of assessment
should be initiated from the first step of implementation of digital technology. This process
should be continued throughout the process of recruitment and induction in the organization.
Functioning under the new system of digital technology should also be monitored full timely
with provision of guidelines to the managers and the employees when needed or at regular
intervals.
TASK 4
P7: Reflecting on the value of undertaking of the project to meet the
objectives
Objective of this project was that to analyse the impact of digital technology in supporting
the growth and innovation of small business firms. I took various initiatives in order to draw
favourable outcomes. I made some questions and took help from internet where I found point of
views of different authors. Then, analysis of collected information was done by me which helped
me in reaching to specific conclusions. On the other hand, at some points, some of decisions of
mine created issues which delayed the process of completion of this research project. I did not
reached to the satisfactory level because conclusion which I received was not much effective and
if I may get the same opportunity of getting same kind of project. I will completely finish my
own targets right on time in specific time of period. At the time of conducting this research, I
examined that using appropriate methods is must so that desired goals and objectives can easily
be gained. Taking in use of questionnaire it helped me in drawing out favourable outcomes in
specific time of period. On the other hand, the information which was gathered by me with the
help of questionnaire where perception of respondents clearly showed that implementing digital
technology in Regency Café can be beneficial in many ways. On the other hand, adopting
primary method and using information stays much effective in nature because the collected data
stays much effective in nature. It helped me out in drawing appropriate results which impacted
positively gaining results. Applying digital technology on Regency Café. Data can easily be kept
for a long period of time. On the other hand, I saw that if promotional activities at social sites is
going to be done then it can easily be say that it will help this organisation to reduce many
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expenses and gain competitive advantages as well. Because, it is being found that there are
ample number of benefits as well that can be gained by in much effective and efficient manner.
I would have used survey as well, because it may give me appropriate answers of desired
objectives. But, the authenticity in data which I gained with details aided in attaining specific
goals and objectives. Away from this, I also found that Regency Café can easily gain many
advantages in this world full of competition with appropriate use of digital technology. Apart
from this, it can easily be said by me through looking at the results is that application of updated
technology at workplace and in services which was being delivered has helped in attaining
specific goals and objectives. I also saw that there will be enhancement in both productivity and
profitability through which Regency Café will take initiatives so expand its business.
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REFERENCES
Choi, T.M., Chan, H.K. and Yue, X., 2017. Recent development in big data analytics for
business operations and risk management. IEEE transactions on cybernetics, 47(1),
pp.81-92.
Heizer, J., 2016. Operations Management, 11/e. Pearson Education India.
Kerzner, H., 2013. Project management: a systems approach to planning, scheduling, and
controlling. John Wiley & Sons.
Larson, E.W. and Gray, C., 2013. Project Management: The Managerial Process with MS
Project. McGraw-Hill.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education
India.
Mir, F.A. and Pinnington, A.H., 2014. Exploring the value of project management: linking
project management performance and project success. International journal of project
management, 32(2), pp.202-217.
Nicholas, J.M. and Steyn, H., 2017. Project management for engineering, business and
technology. Taylor & Francis.
Phillips, J., 2013. PMP, Project Management Professional (Certification Study Guides).
McGraw-Hill Osborne Media.
REGENCY CAFE LONDON. (2017). Regencycafe.co.uk. Retrieved 15 December 2017, from
http://regencycafe.co.uk/
Schwalbe, K., 2015. Information technology project management. Cengage Learning.
Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach.
John Wiley & Sons.
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Template for evidence collection to be attached with the report by the learner:
Project Logbook for the chosen
organisation:
Name of the learner: Name of the Supervisor:
Project Title: Date:
Update of weekly research/ tasks achieved
(Account for a minimum of six weeks with
dates) What have you completed?
 Did you fulfil Task requirements?
 Are you on track and within deadlines
set?
 Did you need to make any changes to
your project management plan?
Comments
Project which has been completed by me is
about analysing the impact of digital
technology in supporting small business growth
and innovation.
Yes, I have fulfilled all requirements.
Yes, I finished all task related activities in set
time frame.
No, I have already made project with given
guidelines.
Any risks and / or issues identified?
 Did you identify risks/issues with a
lack of skills required for undertaking
research tasks?
 Did you identify any additional
risks/issues that have an impact on the
Yes, issue which I faced was related to
collecting the data from selected respondents.
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project management plan? Yes, budget which was planned by me for this
project got exceeded.
Problems encountered
 What barriers did you face?
 How did you overcome them?
Cost of different activities and planning things
right on time was a kind of barrier to me.
Proper planning has helped me out in
overcoming from different barriers which were
faced by me.
New Ideas and change of project direction Digitalisation whole process of small business
firms so that to bring innovation and enhancing
its growth.
What Have I learnt about myself this week?
 How did I feel when I had to deal with
tasks/problems?
 Did I find it useful to complete the
tasks?
 How well have I performed? What did I
contribute?
 What can I improve on next week?
 How might this learning apply in the
future?
I felt confident.
Yes
I can gives 8 out of 10 for my own performance
that I gave in completing this project.
With the help of knowledge which was gained
by me will aid me in completing tasks if I get in
next week.
Gathered data, can be helpful for me in hitting
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my own targets in near future. If I'll get the
same project I can use perception of
respondents.
Tasks planned for next week
 Which tasks are priority?
 Have you set aside sufficient time for
completion?
Priority was that to collect relevant data so that
favourable outcomes can easily drawn.
No, completing of project took time and this
affected on my budget as well.
Project plan status to date (on, ahead,
behind) Up to date
Supervisor comments to address
Signature of the Supervisor and date:
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Template for Performance Review to be attached with the report by the learner:
1. What was the Project supposed to accomplish?
To analyse the impact of digital technology in supporting small business growth and innovation.
2. Did the project succeed in its aims/ how do you know? Specifically, please
outline any evaluation and assessment undertaken.
Yes, because the set aim and the gathered information was enough to understand the concept of
digitalisation and has helped in meeting objectives.
3. What things do you think worked well and why? Evaluate all aspects of the
project (e.g initial inception, project activities and project outcomes) from a
range of perspectives.
Questionnaire helped in drawing relevant information which impacted positively on drawing favourable
outcomes.
4. What problems emerged during the project and how were they tackled?
Was there timely identification of issues and resolution during the project
process?
At the time of conducting investigation, there were ample number of problems which came up. But,
major issues were related to time and cost.
5. What did you learn from undertaking the project?
With the help of this project, knowledge and skills of mine got improved.
6. How would you rate your performance as a management consultant leading
the project?
8 out of 10 I can rate on my own performance.
7. What strengths and weakness of your performance did you identify?
At the time of performing I found that decision making was the strengths and
confusions at few points which delayed the process of completing the project was
weakness.
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8. How will this inform and support your continuous professional
development?
In present context, my core competencies can be considered which will help me
in making future plans.
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