Managing Successful Business: Impact of Digital Technology on Small Business Growth and Innovation

This article discusses the impact of digital technology on small business growth and innovation. It focuses on the case of Regency Cafe in the UK and explores the role of digital technology in their business. The article also provides insights on how to manage a successful business with proper planning and management systems.

UNIT 6: MANAGING SUCCESSFUL BUSINESS

UNIT 6: MANAGING SUCCESSFUL BUSINESS
Table of Contents
Introduction......................................................................................................................................3
LO1: Establish project aims, objectives and timeframes based on the chosen theme.....................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
LO2: Conduct small scale research, information gathering and data collection.............................7
P4: Carry out small-scale research by applying quantitative and qualitative research....................7
Task 3:...........................................................................................................................................14
LO3: Communicating appropriate recommendations based on suitable conclusion.....................14
P5: Analysis of the research and data by using suitable tools and techniques..............................14
P6: Communicating the appropriate recommendations in the research to reach to valid
conclusions....................................................................................................................................16
Task 4:...........................................................................................................................................17
P7: reflecting on the value of undertaking of the project to meet the objectives..........................17
Reference List................................................................................................................................19
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Introduction
In this competitive world every business are 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.
LO1: Establish project aims, objectives and timeframes based on the chosen
theme
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 is 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 indentify 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
Month
Planning the
resources
Developing
effective project
team
Developing
budget
Assessing and
analysing risk
Communicating
with the
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employees
Hire External
Support for
business
progress
Setting up
machineries
Creating
accessing
system
Selecting
potential
stakeholders
Training the
staffs
Working stage
Table 3.1: Gantt chart
(Source: Self Created)
LO2: Conduct small scale research, information gathering and data collection
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
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technique. For conducting quantitative research questioners are set for the employees where the
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
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1 2 3 4 5
60%
20%
10%
6%
4%
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%
Disagree 50 3 6%
Strongly Disagree 50 2 4%
Table 4.2: Usage of social media in sharing information and attracting customers
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1 2 3 4 5
50%
30%
10%
6%
4%
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
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1 2 3 4 5
50%
20%
16%
8%
6%
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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1 2 3 4 5
60%
20%
10%
6%
4%
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
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1 2 3 4 5
50%
30%
20%
4% 6%
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:
LO3: Communicating appropriate recommendations based on suitable
conclusion
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.
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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.
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 methods has thus been considered as one with
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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
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 helps
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
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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
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
The research has been based on the goals that show understanding of the role played by
implementation of digital technology in Regency Cafe. The research has been continued in this
stature to conduct survey from a number of stakeholders of the company who might reflect on
the matter of provision of the authentic information on the topic. The research has also been
aimed to assess the planning that has been produced in Regency Cafe to implement digital
technology in the organization. Therefore, in order to stick to the above said objective the
planning of implementation of digital technology has been assessed and recommendations have
also been put to encourage and accelerate implementation and minimize challenge in the
organization. Therefore, the requirements of this process have also been studied thereby making
it a stature for proper work environment within Regency Cafe. Therefore, the objective of
identification of the requirements for the installation of the digital technology in the Regency
Cafe has been fulfilled. While assessing the planning and learning the functional conditions in
Regency Cafe it has been assessed that the organization is facing certain challenges that lie in
implementing of the digital technology in the organization. Therefore, the identification has been
done with more clarity in order to fulfil this objective of the research. Thereafter, the latest
objective of the research has been fulfilled by provision of relevant recommendations to improve
the situation in Regency Cafe. The employee satisfaction has been recommendation to be
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maintained in order to produce efficient performance by the organization. Therefore, the learning
objectives of the student have also been fulfilled by this stature.
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Reference List
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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