Research Project: AI's Influence on SME Business Operations

This research project investigates the impact of digital technology, particularly artificial intelligence (AI), on the business activities of Small and Medium-sized Enterprises (SMEs). The project begins with an introduction to digital technology and AI, highlighting their importance in modern business operations and presents a case study on Callsign, a UK-based cybersecurity start-up that utilizes AI. The project is structured into tasks, including a research proposal with a literature review, which defines research questions and objectives. The research explores the concept of AI, its benefits for new product development, and the relationship between AI and innovation. The project uses a literature review and discusses the application of AI in various contexts, especially in the context of SMEs, and examines the benefits of AI in new product development, and the role of AI in innovation. The project also includes the application of appropriate analytical tools and reflection on research methodologies.

Research Project
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Research proposal that clearly defines a research question or hypothesis supported by a
literature review......................................................................................................................3
P2 Research methods and approaches to primary and secondary research............................8
TASK 2............................................................................................................................................9
P3 Conduct primary and secondary research using appropriate methods .............................9
P4 Apply appropriate analytical tools, analyse research finding and data...........................13
TASK 3..........................................................................................................................................22
P5 Communicate research outcomes in an appropriate manner for the intended audience. 22
TASK 4..........................................................................................................................................23
P6 Reflection on the effectiveness of research methods and techniques.............................23
P7 Determine alternative research methodologies for the project........................................24
CONCLUSION..............................................................................................................................24
REFERENCES..............................................................................................................................25
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TITLE
“The impact of digital technology on business activity of SME’s “
INTRODUCTION
Digital technology refers to scientific knowledge which helps in using digital and
computerised methods, systems and devices. Usage of digital technology is beneficial in every
organisation as it provides wealth and various opportunity to the firm. Digital technology has
its presence in various organisational functions like artificial intelligence in production
department. Artificial intelligence is the part of computer science which is beneficial in
developing machines that have ability to perform business activities like humans. These
machineries have their own importance in organisation as they reduce human efforts and
performs the work in effective and improved manner (Bond and Gasser, 2014). Callsign is a
UK based start-up which provides cybersecurity services. This firm was started in 2011.
Callsign is using Artificial intelligence system for providing hi-tech cybersecurity to its client.
For this, they are working on Intelligence driven Authentication. This AI system secures
online transaction of user by assessing various points for ensuring that account is used by the
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actual owner only. This research project includes specific discussion about aims and
objectives of artificial intelligence. Further various methods and approaches are described to
find appropriate conclusion of study.
TASK 1
P1 Research proposal that clearly defines a research question or hypothesis supported by a
literature review.
According to Paul Marsden (2017), Digital technology is considered as the revolution for
organisation as it transformed traditional methods of performing business activities in modern
way which simplifies the working pattern and also improves its efficiency. Along with this
digital technology has also increased number of opportunities for every business association.
Artificial intelligence is one among the essential part of digital technology (Brodie, Mylopoulos
and Schmidt, 2012). Artificial intelligence is considered as the technology which performs
business activities like human being which involves effective skills (learning, thinking ability
etc.).
Concept of Artificial intelligence was developed in 1955. This intelligence emphasizes on
making a computer based robot which has ability to perform business activities like human
beings. Initially AI was originated with the motive of creating expert system which can advise,
elaborates and demonstrate its users. Further it developed by modifying its system through
inserting human abilities like think, learn, understand and behave. With every modification
Artificial intelligence is now converted into an intelligent computer based system which covers
various areas like philosophy, sociology, science, psychology, mathematics, neuroscience and
biology. AI have reduced human efforts in daily base work structure which saves their time for
more important work (Cohen and Feigenbaum, 2014). For example: AI was initially used by
commercial airline as AI autopilots. In this human pilot only works at the time of take-off and
landing of flight. It has been evaluated that artificial intelligence is contributing in maximum
sectors and organisation for performing activities.
Background of the research.
Artificial intelligence is computerized system with major motive of developing intelligent
machines which owns ability of performing business activities with human skills. Along with
this, its designing includes speech recognition, planning, problem solving and learning. In
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relation to the market scenario, artificial intelligence is beneficial for business organisation as it
reduces human efforts in operational activities (Costantino Di Gravio and Nonino, 2015).
Callsign is a UK based start-up which offers cybersecurity services by using AI. This enterprise
is using AI cybersecurity system which helps the client or user in securing their online
transaction on regular basis. Callsign is using Intelligence Driven Authentication which majorly
emphasize on authenticating user’s regular activities like location, smiling at camera,
fingerprints, typing pattern of old passwords, voice signature. These small activities are used by
this firm for securing their clients information. Presently, AI of Callsign is used by Deutsche
bank for securing its clients information. As this system records all type of pattern in which users
use their account and if any day it mismatches in that case account is directly blocked (Gero,
2014). This ensures all its users that their account will not get hacked and is protected.
Aim:
“To determine the importance of Artificial Intelligence on developing innovative
products for firms”. A case study on Call sign.
Research Objectives
 To evaluate the concept of Artificial intelligence.
 To identify benefits of new product development for the growth of Call sign
 To determine uses of Artificial intelligence for developing innovative product. To analyse relationship between Artificial intelligence and innovation in Callsign.
Research Questions:
 What is the concept of Artificial Intelligence?
 How new product development is beneficial for growth of Callsign?
 What are uses of Artificial Intelligence for development of innovative product? What is the relationship between Artificial intelligence and innovation in Callsign?
Concept of Artificial intelligence
According to Oksana Tunikova, (2018). Artificial intelligence is considered as the
machine or computer based system which have ability of learning and thinking. Concept of
Artificial Intelligence emphasize on developing the idea of machine which owns power of
thinking and learning like human beings. Further it is states that it is a knowledge base concept
which develops the machine that is capable of dealing with the external environment in
intelligent manner like human beings. This technology is used by most of the organisation in
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order to reduce efforts of manpower (Lee and Lee, 2015). Along with this, it is used as most
effective system which simplifies regular based work employees. For example: Many big stores
of UK use AI based system for sales prospective. In these stores all functions like billing,
selecting, packing is performed automatically by machinery. These stores are only consisting of
single employee which is available for resolving problem of customer.
Artificial Intelligence is different from machinery learning. As machine learning is an
application of AI which emphasize on developing computerised programs for accessing and
learning data automatically. Whereas, Artificial Intelligence is very broad concept as it is a
combination of various technologies like machine learning, neutral networks, language
processing etc. It is used in many sectors of United Kingdom as well as in other countries for
improving are lifestyle in better manner (Gershman, Bredikhin and Vishnevskiy, 2016). This
digital technology is not only helpful for business organisation but also contributes its
effectiveness in every individual’s lifestyle. Some regular based examples of artificial
intelligence are Google's NEST, online playing games such as Alien: Isolation, Self-driving
vehicles like cars manufactured by TESLA etc.
In relation to small business Artificial intelligence is beneficial for start-ups like Callsign.
These small firms use combination of their idea and technology for providing new products to its
customers with improved satisfaction level.
Benefits of new product development for the growth of Callsign
According to Margaret Rouse (2018), new product development is a sum up of different
steps that involves designing, developing, marketing and conceptualization of new products and
services. Main objective behind developing new product is to increase market share of company.
Along with this, it also improves satisfaction level of customers by providing them more number
of products and services. In context to Callsign, new product development is a helpful tool for
this enterprise as it will improve its profitability ratio. This firm is using Artificial intelligence in
its newly launched products. Services of Callsign are used by many business firm like Lloyds
and Deutsche bank for securing accounts of their employees as well as clients.
It is essential for small businesses to develop their existing products and services for
future growth (Davenport and Ronanki, 2018). There are several benefits of new product
development which contributes in long term success of Callsign. These benefits include increase
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in revenue, improves quality of products and services, enhances market shares, reduces costing
of products, increases sales and provides competitive advantages to enterprise etc.
New product development will improve revenue ratio of Callsign as customers feels more
attracted towards new innovative products. Along with this, new product is developed with lots
of planning regarding costing which reduces production cost and improves revenue ratio.
Innovative products satisfy more number of customer with its features and also provides them
opportunity to increase their expectation from companies with every new launch. This also
enhances market share of Callsign which contributes in strengthening business base with good
revenue. Another benefit of new product development is that it improves quality of products with
minimum defects. Requirement of new products is raised with some backdrops of existing
products and services. This guides enterprises to develop new products which have ability to
satisfy needs of customers (Zang and et. al., 2015). Therefore, this directly increases sales of
products at market place and contributes in growth of organisation.
Apart from this new product development also improves supports Callsign in defeating
its rivals. Continuous launching of effective products in market attract customers towards firms
and also persuades its loyal customers to use services. This affects the sales of competitors as
customers have lots of options and they prefer best one.
Uses of Artificial intelligence for developing innovative product
According to Christopher McFadden (2017), Artificial intelligence is used in approx.
every innovation for its effectiveness. It is used from automotive machines to household
appliances. Innovation is the part of our day to day lifestyle which contributes increasing number
of options of customer. In relation with developing new product it has been evaluated that uses
of artificial intelligence in new product improves quality as well as develops standard products.
For example: Apple's Siri is consisting of natural language processing system for understanding
voice command of user and response for the same. Uses of Artificial intelligence makes work of
employees smarter and effective without usage of much time
There is various application of Artificial intelligence which is used by the organisation to
improve their feature of innovative products. Callsign is already using AI in its cybersecurity
system. Along with this, the enterprise can also develop some of more innovative products in
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order to provide vast variety of products and services to its clients. This company can launch
new language support system which can transform user's language into familiar language of
other person. In this product Artificial intelligence can be used as the functioning of product can
be done automatically without instruction. It improves effectiveness of product better manner so
that this could provide benefit to its users (Norman, 2017). And also resolves language related
barrier of people which they face while travelling new places. Hence, use of Artificial
intelligence is better for developing innovative product at market place as it improves efficiency
of products with best outcomes.
Relationship between Artificial intelligence and innovation in Callsign
According to Msmash (2018), Artificial intelligence has larger impact over innovation
and its its methods which reshapes products and services. Both the concepts are interrelated with
each other as using artificial intelligence in normal machinery automatically develops the
innovative product which is different from existing one. In other words, artificial intelligence is
more about innovation in technology which simplifies human efforts. Along with this, it also
makes process of innovation smoother in Callsign and also contributes its presence in developing
new product. Employees of this firm are using Artificial intelligence on continuous basis for
making new product which have innovative features. This reflects their interdependence on each
other. In this enterprise employees cannot make innovative products without using artificial
intelligence. As it belongs to cybersecurity services which requires updated version of security
system for saving confidential details of client and its users.
Moreover, effective innovation in security services supports Callsign in providing
customers new range of services which simplifies human efforts in securing data. Artificial
intelligence is most essential form of digital technology which is used by maximum
cybersecurity enterprises (Hecklau and et. al., 2016). As it helps them in developing new systems
which secures information of customers properly. Development of new system is termed as
innovation in Callsign.
P2 Research methods and approaches to primary and secondary research
The term research methodology is a process by which researcher gather necessary data
and information that is required to arrive at valid conclusion. Most of the companies acquire
various methods to conduct a research thus take imperative decisions which will carry forward
business into right direction (Michalski, Carbonell and Mitchell, 2013). Along with this, research
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methodology comprises with publications, interviews, online/ offline surveys and further
research techniques. Hence, to make an effective research there is required various approaches
which helps investigator to set up parameters of study and arrive to better outcomes in a certain
time period. Following is defined various approaches or methods of research which are stated as
under -
Qualitative research – It is a kind of social science research which works with non-
numerical data and tend to interpret meaning so as to understand social life by making study of
target audiences or population. Qualitative research allows researcher to analyse the meanings or
opinions of people attribute to their attitude, actions, behaviour or interactions with others.
Quantitative research - This research technique is acquired in order to qualify issues or
problems by using statistical or numerical data. As resulted, quantitative research aids to
transform information in mathematical form as it is easier to explain (Ginsberg, 2012). In
addition, it uses measurable data thus to formulate facts or figures and disclose various in form
of quantitative research. Quantitative research is conclusive in its nature as it tries to quantify the
issues and recognise how effectively prevalent it is by obtaining projectable results to a larger
population.
Primary methods – The research method comprises to collect new data or information
which hasn't been collected yet. Primary research gives lot of specific results and it also uses
adequate models to come up with effective conclusion in a certain time period. For obtaining
primary information researcher can use questionnaire, interviews, focus groups and observation
methods thus to obtaining relevant and effective information.
Secondary methods – It consists with that type of research which is already been
compiled, collected, interpret and published by others and but also used for another purpose of
study. Secondary data includes reports of government agencies, trade associations and other
published data of a specific industry. Researcher can gain lots of secondary information on web.
Data sampling – Collection of necessary information from large group of people is not possible
thus researcher can gather information within a subset of people (Navigli and Ponzetto, 2012).
Sampling is a process which is acquired for getting data or information among chosen number of
people. There are two methods of sampling, i.e. probabilistic and non-probabilistic in which for
present study there has been acquired probabilistic sampling method. The selected sample size is
50 respondents who are the local residents of UK.
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Ethical consideration - Different types of ethical issues occurred which are being faced
by researchers while doing any type of research. These problems can be related with costs and
time that may affect research activities and tasks. Thus, while getting information, it must be
based upon valid or real facts.
TASK 2
P3 Conduct primary and secondary research using appropriate methods
Research refers to collection of data and information of specific topic for enhancing
knowledge for the same. It is required by the researcher to gather relevant information so that
appropriate conclusion can be generated as a result. Research is done by using primary as well as
secondary method. In primary method, data is collected directly from the respondents through
surveys, questionnaire, observations, interview etc. Information collected by this research
method is true (Ramchurn and et. al., 2012). Whereas, in secondary research method information
is gathered from previously conducted research. In this investigators collects data from various
sources like magazines, newspaper, articles, books, journals etc. It is essential for researcher to
use appropriate method according to the requirement of research. Apart from this, investigator
also faces various problems during whole research. Major factors which affects the research are
cost and ethical issues.
Cost and time: Every researcher requires adequate amount of money for conducting
effective research. In relation with the small businesses it is necessary to provide relevant
amount of money to researcher in required time. In this research, investigator have faced many
problems due to insufficient amount (Copeland, 2015). Along with this, provided time for
research was not appropriate as there were 50 respondents.
Ethical issues: Ethical issue is a situation in which investigator is required to evaluate all
possible aspects and choose right one. While conducting research researcher collects personal
information of respondents which is confidential. In this state, it is essential for the researcher to
use these details for research purpose (Russell and Norvig, 2016). Investigator is also required to
not harm any individual as well as environment for purpose of collecting information. As if any
negative activity is conducted then research will not be considered valid. Hence by following
ethical norms of research, investigator can easily identify appropriate conclusion.
Questionnaire
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Q1) Do you know about digital technology and its benefits for Callsign?
a) Yes
b) No
Q2) Is Artificial intelligence a part of digital technology or not?
a) Yes
b) No
Q3) Do you think; you have used artificial intelligence system yet?
a) Yes
b) No
c) Difficult to say
Q4) How artificial intelligence is beneficial in improving customer services?
a) It takes quick decisions
b) Increase customers base
c) Influence consumers
Q5) What are the main factors which adopt by Callsign at the time of implementing
artificial intelligence?
a) Identification of problem to be solved
b) Acknowledge internal capability gaps
c) Prioritize Concrete value
Q6) What are the major benefits of new product development for Callsign?
a) Improves sales
b) Attract new customers
c) Increases product range
d) Maximise profit.
Q7) What are the main issues faced by Callsign while developing new products?
a) Inappropriate training
b) Take more time in access
c) High employee cost
d) Lack of knowledge about customers taste
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Q8) Is uses of Artificial Intelligence beneficial for developing innovative products?
a) Agree
b) Disagree
Q9) Is Artificial Intelligence important for improving customers experience?
a) Agree
b) Disagree
Q10) Recommendations for implementing Artificial Intelligence for developing new
products?
Q1. Do you know about digital technology
and its benefits for Callsign?
Frequency
a) Yes 25
b) No 5
Q2. Is Artificial intelligence a part of digital
technology or not?
Frequency
a) Yes 20
b) No 10
Q3) Do you think, you have used artificial
intelligence system yet?
Frequency
a) Yes 18
b) No 9
c) Difficult to say 3
Q4) How artificial intelligence is beneficial
in improving customer services?
Frequency
a) It takes quick decisions 15
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