Digital Insights Report: Digital Disruption in the UK Retail Sector

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This report delves into the impact of digital disruption on the UK retail sector. It begins by defining digital disruption and its effects, focusing on how it influences retail operations, customer engagement, and cost reduction. The report identifies various job roles within the sector, such as sales associates, buyers, and store managers, and outlines the essential skills required for success, including business awareness, communication, and customer service. The research methodology includes a questionnaire administered to sales managers from top retail companies (Tesco, Marks and Spencer, and Morrison) and face-to-face interviews with managers from Aldi and Sainsbury to gather insights on digital technology adoption and its impact. The report analyzes the findings, highlighting both the positive impacts, such as improved customer service, and the challenges, like security threats and financial constraints, concluding that digital disruption drives innovation and improved productivity within the retail industry.
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Table of Contents
INTRODUCTION...........................................................................................................................1
Digital disruption........................................................................................................................1
Presenting how this will impact on retail sector.........................................................................1
Types of jobs within sector and skills required to build a successful career..............................2
Questionnaire..............................................................................................................................3
Face to face interview.................................................................................................................4
Discussion on the questionnaire..................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
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INTRODUCTION
Digital insights provides information about customers and products that generate actions
that helps to retain customers. In the same way, current study highlights the importance of using
digital disruptions within retail industry. The entire study is based upon retail industry which is
one of the fast growing industry in UK. For that, the report will describe meaning of digital
disruption and describe how this will cause a direct impact over the retail sector. Moreover, it
will describe the types of job available within retail sector along with the skills required
performing the job. Further, through questionnaire and Face to Face interview, different
professionals will be selected in order to respond the question asked regarding digital disruption.
Digital disruption
Digital disruption is that change which occurs when new digital technologies and models
affect the proposition of existing goods and services (Stonehouse and Konina, 2020). Therefore,
it happens after a digital innovation such that big data, machine learning and internet of things
etc. For example, retail industry uses big data that enable company to make decision on the basis
of purchase history.
Presenting how this will impact on retail sector
There is a positive impact identified within retail industry by using digital disruption
such that disruption in retail through digital transformation provides an opportunities for retailers
in order to acquire new customers, engage with existing customer and reduce the cost of
operations (Geissinger, Laurell and Sandström, 2020). The data used within retail industry helps
business to implement the strategy according to behavior of customers and improve employee
motivation that influence the business performance.
In addition to this, technologies like 3D printing, facial recognition and virtual
augmented are emerging within retail industry that provide a new way to engage customers and
run their business in smooth manner. Apart from this, within a retail industry, company uses
super-sized data that assist in forecasting the trend and assist business to make effective strategic
decision. Further, within retail industry, companies uses information in order to make strategic
decision and then store the data for the future use as well. Therefore, this in turn shows that data
used under digital disruption will assist firm to improve the overall performance and also
examine the importance of using data within a firm.
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Types of jobs within sector and skills required to build a successful career
There are different types of jobs available within retail sector which are as mentioned
below:
Sales associate: One of the common job profile within retail industry which ensure
customer that someone is available to help if they need anything (Jin and Shin, 2020). Thus, a
sales manager is responsible for maintaining the store's clean and organize quality, checking out
customers and assist to increase the sales of a company.
Buyer: Another job in which an individual simply purchase the product from store and
also responsible for doing the necessary research to find the best products. Moreover, the buyer
can also responsible for developing a strong relationship with vendors, manufacturing and deal
with store.
Store manager: Store manager is responsible to be in charge of budgeting, store
requirements and also implementing the company policies by providing better assistance to the
customers.
Inventory control specialist: The main role of specialist is to prevent loss, tracking and
maintaining inventory that helps to identify the flow of inventory. Also, the role of inventory
control specialist is to identify the need of business and meet the demand as well.
Visual merchandising: It helps a business to promote the business product and improve
the marketing campaigns that helps to maintain the better relationship with suppliers (Kothari
and Seetharaman, 2020). Through this, company improve the brand image and generate the best
outcomes as well.
There are many skills required by the professionals working under retail industry such
that they represent the business within market. The list of skills are as mentioned below: Business awareness: Through this skill, individual understand of how a company
operates and also determine the trend which might affect the business performance. In
this, company understand the product knowledge and use effective tools of marketing as
well. Communication skills: A good communication skill is required by each individual that
helps to share the important information so their employees, customers. Thus, having a
good communication skills also includes active listening and working effectively with
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customers so that they understand the wants (Top 10 skills needed to work in retail,
2020). Interpersonal skills: The skills also required by the company in order to interact with
each other whether they are customer, colleagues and employers. Such that people
working in retail sector must be friendly in nature that assist to reflect positive
impression towards customers. Customer service skills: This skill must be possessed by sales manager that helps to
communicate the necessary information to their workers. Having a strong customer
service skills assist a business to overcome problem and dealing with any type of buyers
as well.
Technological skills: Having a strong technological skill assist employer to maintain a
smooth functioning of a business. Such that with an emerging digital era, employers
must have a strong ability to deal with changing trend and this in turn causes positive
impact over a business performance (Horn and Horn, 2020).
Questionnaire
In order to understand the views of selected respondents, 3 sales manager of top retail
company (Tesco, Marks and Spencer, Morrison) will be selected in order to determine the
importance of digital disruption and its importance over a company by using qualitative study.
Demographic information
Name:
Age:
Gender:
1. Are you aware with the concept of digital disruption?
Yes
No
Don't know
2. Does your organization use any digital technology?
Yes
No
Don't know
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3. Is there any impact of digital disruption over the retail industry?
Positive
Negative
Both
4. Is there a wide scope within retail business due to use of digital disruption?
Yes
No
Don't know
5. Which of the following most important skills required by employers to work in retail
business?
Communication skills
Interpersonal skills
Digital skills
All of these
6. Is there any obstacles identified within retail industry while using digital disruption?
Yes
No
Don't know
Face to face interview
Under primary research, interview has been also conducted in order to determine the
views and perception of professionals towards a digital disruption. That is why, 2 Managers of
top retail business i.e. Aldi and Sainsbury selected in order to examine their views.
1. Do you know the concept of digital disruption?
Interviewee 1:
Interviewee 2:
2. What is the latest digital technology implemented by you for smooth functioning of a
business?
Interviewee 1:
Interviewee 2:
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3. How can data helps you to understand customer on a deeper and personal level?
Interviewee 1:
Interviewee 2:
4. How you will adopt the changing habits of customer through data?
Interviewee 1:
Interviewee 2:
5. Is there any positive impact identified while using any digital disruption?
Interviewee 1:
Interviewee 2:
Discussion: Through the interview, it has been analyzed that all the interviewee is
completely aware with the concept of digital disruption because manager of retail industry also
uses such technologies in order to minimize the negative impact. Also, it has been analyzed that
with the help of the latest digital technology implementation, company is able to improve the
business performance and smooth the operations as well. Further, through an interview, it has
been analyzed that both managers of a company implemented different technologies that assist
to enhance the customer base. Such that Manager of Aldi and Sainsbury uses online payment
procedure in order to reduce the queue and saves time of customers. This in turn shows that
companies are ready to invest upon digital technology and this in turn cause positive impact
upon the overall performance.
In addition to this, it is also interpreted through the interview that to understand the
changing habit of customers companies uses effectual digital technology in order to improve the
business performance. (Ravi and Bhagat, 2020) For example, Aldi uses time series in order to
forecast the trend so that effective measures can be taken. Also, through interview, it can be
stated that there is a positive impact identified while using digital disruption into a workplace.
Like, it helps to improve the customer service and generate different opportunities in order to
show relevance of a product.
Discussion on the questionnaire
Throughout the questionnaire, it can be stated that majority of the selected respondents are
completely aware with the digital disruption and each organization uses effective digital
technology in order to improve the business performance. Also, there is both positive and
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negative impact of digital disruption identified within retail industry that entail that company
must focus while taking any action. For example, security threat is considering as a negative
aspect for a firm whereas smoothing in business operation is recognized as a positive aspect
(Kosaka, 2020). However, through primary research, it can be interpreted that there is a wide
scope within retail business if they use digital disruption like improvement in customer
experience, examine the changing market needs etc.
Apart from this, some main skills are also highlighted under primary research such that
communication, interpersonal and digital skills that helps to complete the defined task and
improve the business performance as well (Ferreira and et.al., 2020). However, there are many
challenges faced by the company while using a digital disruption which includes financial
constraints and security issues. This need to be overcome by the business so that business may
improve the overall performance.
For both interview and questionnaire, qualitative research methodology has been used
because it does not deal with numbers and facts. Further, another reason for choosing the
research methodology is such that it deals with the key aspects of digital disruption in theoretical
manner (Purcarea, 2020). However, it is also analysed that the methodology did not answer in
correct form and that is why, in near future, quantitative methodology will select that assist to
meet the defined aim and derive results on the basis of numbers and figures.
CONCLUSION
By summing up above report it has been concluded that digital disruption has derived
innovation within a firm and also allow company to exceed outdated standards in order to
improve productivity. Also, there is a positive as well as negative impact identified within
business, along with this, study concluded that there are many job roles under retail industry.
Further, with the help of both interview and questionnaire, it has been concluded that
professionals uses digital disruption in order to improve the business profitability and reach new
heights in term of quality and productivity.
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REFERENCES
Books and Journals
Ferreira, M. J. and et.al., 2020, April. The Digital Transformation at Organizations–The Case of
Retail Sector. In World Conference on Information Systems and Technologies (pp. 560-
567). Springer, Cham.
Geissinger, A., Laurell, C. and Sandström, C., 2020. Digital Disruption beyond Uber and Airbnb
—Tracking the long tail of the sharing economy. Technological Forecasting and Social
Change. 155. p.119323.
Horn, K. and Horn, S., 2020. Recovery from Significant Adversity: How Japanese Retailers
Deal with Digital Disruption. In Transforming Japanese Business (pp. 179-195).
Springer, Singapore.
Jin, B. E. and Shin, D. C., 2020. Changing the game to compete: Innovations in the fashion retail
industry from the disruptive business model. Business Horizons. 63(3). pp.301-311.
Kosaka, G., 2020. Digital Disruption in Japanese Market Research: Disrupters and a Startup
Connecting Incumbents with New Technology. In Transforming Japanese Business (pp.
167-177). Springer, Singapore.
Kothari, U. and Seetharaman, A., 2020, December. Impact of Digital Transformation on Retail
Banking Industry in the UAE. In International Working Conference on Transfer and
Diffusion of IT (pp. 425-438). Springer, Cham.
Purcarea, I. M., 2020. Digital transformation and the impact on e-commerce of the disruptive
technologies which are the supporting structure of the Industry 4.0. Romanian
Distribution Committee Magazine. 11(3). pp.32-49.
Ravi, S. S. and Bhagat, S., 2020. Will Mobile Application Technology Help Retail
Merchandising? Breakthrough Innovation by FMCG Companies. Indian Journal of
Marketing. 50(12). pp.24-39.
Stonehouse, G. H. and Konina, N. Y., 2020, February. Management Challenges in the Age of
Digital Disruption. In 1st International Conference on Emerging Trends and Challenges
in the Management Theory and Practice (ETCMTP 2019) (pp. 1-6). Atlantis Press.
Online
Top 10 skills needed to work in retail. 2020. [Online]. Available through:
<https://www.careeraddict.com/retail-skills>.
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