Investigating Digital Technology Impact on H&M Management

This report investigates the influence of digital technology on the management of H&M, a global fashion retailer. The research, based on primary data from surveys and literature reviews, examines the correlation between increasing digital access and improved management performance. The study explores various digital access mediums in the retail industry, such as mobile apps, virtual reality, and self-checkout systems, and analyzes their impact on H&M's business operations, including inventory transparency and omnichannel customer service. The report highlights the positive effects of digital platforms on customer reach, brand awareness, and sales, while also acknowledging potential challenges. Furthermore, it discusses the relationship between digital accessibility and enhanced management, emphasizing H&M's strategies like website and app development, electronic payment modes, and big data processing. The conclusion provides recommendations for further research and implications for retail organizations looking to leverage digital technology for improved performance.

Business Management
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ABSTRACT
Purpose – This research on accessibility of digital technology objectifies to investigate the
influence of digital technology on the management of an organisation. This research is conducted
using the case study of H&M and qualitative research methods. It provides the exploration of the
relationship between the increase of digital technology accessibility of a company and the
increased management performance of that company.
Design/methodology/approach – This present investigation is largely based on primary
research but includes the empirical framework of literatures that are based on digital technology
and its impacts on an organisation. The literature data in this research is collected from books
and journals. The primary data in this investigation is collected from the method of survey using
a questionnaire tool.
Findings – The most important finding which has been gathered from this investigation is
that the independent and dependent variables of this research are correlated to each other as with
the increasing digital technology accessibility of H&M, its management performance is also
increasing.
Practical implications – This investigation can be used to research on the positive and
negative influences which digital technology levies of a retail organisation.
Originality/value – This investigation paper is an academic study that has been conducted
considering H&M as the case study.
Key word – Digital technology, performance and management.
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CONTENTS
ABSTRACT....................................................................................................................................2
TITLE..............................................................................................................................................4
CHAPTER 1: INTRODUCTION....................................................................................................4
1.1 Background to research topic................................................................................................4
1.2 Background to research organisation.....................................................................................4
1.3 Research rationale..................................................................................................................5
1.4 Research questions.................................................................................................................5
1.5 Research aims and objectives................................................................................................5
Aim: -...........................................................................................................................................5
Objective: -..................................................................................................................................5
CHAPTER 2: LITERATURE REVIEW.........................................................................................6
2.1 Introduction of literature review............................................................................................6
2.2 Main body..............................................................................................................................6
2.3 Conclusion of literature review.............................................................................................9
CHAPTER 3: RESEARCH METHODOLOGY.............................................................................9
3.1 Research process....................................................................................................................9
3.2 Research approach.................................................................................................................9
3.3 Research strategy.................................................................................................................10
3.4 Research methodology.........................................................................................................10
3.5 Research instruments/tools..................................................................................................10
3.6 Sampling..............................................................................................................................12
3.6 Ethical implications.............................................................................................................13
CHAPTER 4: FINDINGS (DATA PRESENTATION)................................................................13
CHAPTER 5: DISCUSSION (DATA INTERPRETATION).......................................................15
CHAPTER 6: CONCLUSION, RECOMMENDATIONS AND IMPLICATIONS FOR
FURTHER RESEARCH...............................................................................................................24
6.1 Conclusion...........................................................................................................................24
6.2 Recommendations................................................................................................................25
6.3 Implications for further research.........................................................................................26
REFERENCES..............................................................................................................................27
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TITLE
“The influence that increasing digital access bring over the management of fashion retailer”
CHAPTER 1: INTRODUCTION
1.1 Background to research topic
In current competitive business environment, technology becomes increasingly important that
leads the organisation towards success. Digital access is referred as the ability to participate
completely in digital society. It involves access to technologies and tools like computers and
internet which enable for full participation (Böger, Wecht, and Stalder, 2019). There are various
levels of digital access as some people have more access to digital technology and other people
have less access. It is an important concept which allows fair accessibility to technological tools
and the ability to utilise it to enhance the processes of businesses. Increased digitalization has an
impact on business activities involving business models of company by allowing different forms
of cooperation between business entities and lead to new products and services along with new
form of relationship of organisation with employees and customers. This report intent to
determine the influence that increasing digital access bring over the management of fashion retail
business. In order to accomplish this aim of project, the objectives and research questions are
developing which provides path to complete the research systematically.
1.2 Background to research organisation
Hennes & Mauritz (H&M) is one of the well-known Swedish multinational retailer of
clothing which offers fast fashion clothing for women, teenagers, children and men. The
company was founded in year 1947, around 73 years ago by Erling Persson and is headquartered
in Stockholm, Sweden. The company offers its products and services worldwide. As of year
2019, Hennes and Mauritz perform its business operations in around 74 nations with 5000 outlets
under different company brands. It is one of the largest global clothing retailer which also has
significant online presence along with online shopping available in around 33 countries. As the
access to digital technology is increasing very rapidly, it impacts on management of fashion
retailer (Mackey and Gass, 2015). Employing technological tools in its business processes help
the company in gaining competitive advantage in market and accomplish growth and success for
long term. The impact of increasing digital access on management of fashion retailer company,
i.e., Hennes & Mauritz is determined in project.
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1.3 Research rationale
This investigation is based on the topic “The influence that increasing digital access bring
over the management of fashion retailer”. Performing research on this topic is significant for
researcher as it helps in gaining understanding about different mediums of digital access which
are utilised in retail industry. It also supports in determining the influence of digital platform on
business of fashion retailer company along with the relationship between rising access digital
technology and improving management of organisation (Rovai, 2018). This report is highly
significant for researcher in determining the impact that maximizing digital access bring on
management of fashion retailer. By knowing the impacts, it enables organisation to develop
appropriate strategies that will help in in leading organisation towards success.
1.4 Research questions
The questions related to this particular investigation are as follows:
 Explain about the several different medium of digital access used in retail industry?
 What is the main influence of digital platform over the business of H&M?
 What is the relationship between increasing access to digital platform and improving
management of H&M?
1.5 Research aims and objectives
Aim: -
The aim of the investigation is “To determine the influence that increasing digital access
bring over the management of fashion retail business”. A study on H&M.
Objective: -
The main objectives related to this investigation are mentioned below:
 To identify several medium of digital access used in retail industry.
 To examine the influence of digital platform over the business of H&M.
 To ascertain the relationship between increasing access to digital platform and improving
management of H&M.
CHAPTER 2: LITERATURE REVIEW
2.1 Introduction of literature review
Literature review is referred as the survey of scholarly sources like books, articles, journals
and thesis associated with particular topic or question of research. In the research project, the
main purpose of performing literature review is to family arise researcher with current state of
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knowledge on topic. It also assists in identifying the gaps between knowledge and unresolved
issues that the research project can address. This renders an overview of important findings as
well as debate associated with the topic (Wiek, and Lang, 2016). This research project is
performed on topic “To determine the influence that increasing digital access bring over the
management of fashion retail business”. A study on H&M. Different literatures are reviewed and
viewpoints of different authors are compared below on distinct themes associated with the topic.
2.2 Main body
Different medium of digital access used in fashion retail industry:
As per the view point of Yeung, and Ang, 2016, in current competitive business
scenario, internet has become more important in fashion retail outlet, that develops new
opportunities as well as challenges for merchandisers. There are several mediums of digital
access which are utilised in fashion retail industry. These medium includes mobile phone
applications, virtual reality, mobile wallet, self-checkout system, digital price tags, automatic
checkout, speed shop, smart shopping carts, QR codes etc. All these mediums enable an
organisation to access digitally by utilising these different medium. In the automatic checkout
system, use of combination of computer vision, sensor fusion technology and deep learning is
made in order to automate the process of payment as well as checkout (Mani, Kesavan, and
Swaminathan, 2015). This means consumer can enter into the outlet, pick up their items and
leave without checking out or queuing, while the payment is made automatically by an
application.
From the point of view of Watanabe, Naveed and Neittaanmäki, (2018), Out of the
various mediums that helps an organisation to access digital technology, the virtual retail outlets
are most trending in current scenario. These virtual outlets allow an effective client experience in
which they sense the products not only by touch and sight but also by hear. This type pf
technology is only used by the retailers which deal in expensive products. Another digital
accessibility mediums trending in current scenario is self checkout which is highly used by
clothing and fashion retailers. This technology avoids human interaction and saves time of the
customers.
Main influence of digital platform over the business of H&M:
As per the view point of Gao, and Su, 2017, Digital platform provides several
advantages to business and influence positively on its performance and productivity. It provides
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a company with different benefits like satisfied customer service, improve customer base,
increased awareness of brand, maximize inbound traffic, enhanced sales and many more. To
using digital platforms, a company can be able to reach larger target markets and attract more
customers towards the brand. Digital platforms help in marketing and promoting products and
services of company in an effective way and aware customers about the features and benefits of
using the product and service. Apart from this, there are several digital platforms that company
can use including native advertising, Instagram, Snapchat, Facebook, Google AdWords,
YouTube etc. through which more number of customers can be attracting by company towards
brand as most of the people are using social media platforms very frequently (Bonetti, Warnaby,
and Quinn, 2018). So, using this platform proves to be beneficial for the company in promoting
its products and services and influence positively on the business entity.
From the opinion of Giertz-Mårtenson, (2012), the most important influence of digital
technology over the performance of retail businesses is inventory transparency. Every retail
outlet faces the issue of inventory control as the challenges of inventory damage and theft is a
common situation for retail organisations. H&M is a growing organisation that uses digital
inventory system to maintain the transparency in the level of the inventory and this reduces the
risk of damage and theft. Another influential factor of digital technology is Omni channel
customer service. By using this technology, H&M is able to support their customers by resolving
their issues not only through customer care line but also through social media platforms as well.
According to CHEN, (2018), digital technology highly influence the business operations
of organisations engaged in retail industry such as H&M. Using digital technology, H&M
ensures to provide a unique experience to their customers. A trend in this industry is observed to
be hiked which is “Buy online pick in store”. Using this digital technology, organisations like
H&M has provided a convenience to their customers in which they can select and buy the outfits
online and then can pick up the same outfit from store. This technology helps in providing a
unique experience to the customers and it also reduces the delivery hassle and charge. This
digital technology has positively influences the business of H&M as it satisfies the customers as
their time is being saved (Fernie, and Sparks, 2018). Apart from all the positive influences of
digital technology, it is important to consider that there are few negative influences as well which
are faced by retail organisations including H&M. Retail organisations deals in ample products
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and range of products and offering all these product lines online using digital technology requires
complex algorithms.
Relationship between increasing access to digital platform and improving management of
H&M:
According to Purwar, (2019), increasing accessibility to the digital technology has a
positive relationship with the improving management and performance of an organization;
specially when the organization is in retail industry. H&M is a leader of clothing products in
retail industry and in order to increase their digital accessibility, this company has come up with
their new website and a mobile application. This company also introduce various electronic
payments modes which has resulted in increasing the performance and lead to 22% increase in
the online sales. In 2018, this company has adopted a digital technology named big data
processing. This technology allowed H&M to analyses the big data using customized algorithms.
This data included only the information that every H&M customer provides to this company at
their own will and includes loyalty card information, web traffic and returns (Bell, Gallino and
Moreno, 2018). Using all these information, H&M identifies the customer buying pattern along
with trends in market and many more. This digital technology of big data analysis has resulted
into increase of market share of this company. Apart from the performance of H&M, the
management efficiency of this company has also been enhanced due to digital technology.
As per the viewpoints of Böger, Wecht and Stalder, (2019), H&M started a mobile
friendly workforce management strategy in 2018. Under this strategy, H&M addresses the reality
of their workforce which stated that 80% staff of their company is a non desk staff who are on
their feet almost all the times. Considering this, H&M implemented an employee communication
platform that allowed all employees to chat with other team members. As per the research of
NICASIO, (2019), This digital technology was the solution and was mobile friendly; this
technology eliminated the hassle to maintain communication and enhanced the management
efficiency in the stores of H&M. Another example of H&M that can prove that with the
increasing digital technology accessibility, the managerial performance of a company also
increases is the initiatives of voice activated mirrors, AR Holograms and H&M Home stylist
(Caro and Martínez-de-Albéniz, 2015). All these initiatives have reduced the work burden of
employees and resulted in management efficiency.
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2.3 Conclusion of literature review
The above literature review provides the conclusion that a retail organization such as H&M
is growing in a competitive market by improving their digital accessibility. By using digital
technology, H&M is providing satisfactory customer support and effective services. Although
the influence of digital technology on H&M is both positive and negative but the relationship
between digital technology enhancement and the increase in company’s performance is aligned.
CHAPTER 3: RESEARCH METHODOLOGY
3.1 Research process
The process of research involves determining, locating, analyzing information which
required to support the research question and developing and expressing the ideas of researcher.
It includes some steps which will help in performing the research in systematic manner. These
steps include identification of issue, review of literature, clarify the issue, clearly define the
concepts and methods, defining the population, development of instrumentation plan and
collection and analysis of data (Thomson, and McLeod, 2015). In performing this particular
research, all these steps are followed by researcher. The researcher first identified the issue and
then collect the data through performing literature review. After that, different methods will be
used to perform the study systematically, data is collected and analyzed and then the outcomes of
research will be drawn.
3.2 Research approach
Research approaches the procedure that includes series of steps of collecting, analyzing
and interpreting data which is based on the nature of issue that is being addressed in the research.
Mainly two types of approaches are utilized in research involving inductive and deductive. The
inductive approach initiates with data collection related to topic. On the other hand, deductive
approach takes steps which are detailed earlier for inductive study and reverse their order. In this
investigation, the use of detective approaches is made as it is based on existing theory and
designed to test hypothesis (Gabriel, 2015).
3.3 Research strategy
Research strategy is termed as overall plan for performing a particular study. It details the
way an investigator intends to perform the work. There are different strategies which researcher
can use while performing study including experimental research, case study, survey, interview,
action research and systematic literature review. In this particular investigation, the researcher
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make use of survey strategy as this is linked which directive approach and is one of the
economical and finest strategy of research. It helps researcher in collecting reliable data so as to
draw valid conclusion.
3.4 Research methodology
Research methodology includes in specific procedures which researcher is used to
determine, select, process and assess information regarding a particular topic. It allowed
researcher to critically evaluate the overall reliability and validity of investigation. The two
methods that researcher can use in the investigation includes qualitative and quantitative research
methods (Kumar, 2019). In qualitative method, researcher collect non numerical data which is
based on qualitative aspects. Whereas, quantitative method is associated with collection of
numerical data on the particular topic of research. This investigation make use of quantitative
research method in which numerical information is collected so as to ensure the accuracy of data
and valid conclusion can be drawn. The data is collected through both the methods of collection,
i.e., primary and secondary. Questionnaire tool is used to gather the first hand information and
books, articles and journals are used to collect second hand data (Walliman, 2017).
3.5 Research instruments/tools
Several tools and research including questionnaire, interview, case study etc. with the help
of which researcher can gather data. In this investigation, the researcher use questionnaire tool
which consists of set of questions. It is a document which is provided to respondents to fill their
responses. The questionnaire prepare for this research is mentioned below:
Questionnaire
Name:
Age:
Address:
Email:
Q 1) Do you have an understanding about digitalization?
a) Yes
b) No
Q 2) As per your perception, to what extent digital platform is significant for Hennes &
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Mauritz in improving brand awareness?
a) Highly significant
b) Significant
c) Neither significant nor insignificant
d) Insignificant
e) Highly insignificant
Q 3) Which medium of digital access can be most appropriate for Hennes & Mauritz to
use in fashion retail industry?
a) Mobile phone app
b) Virtual reality
c) Self-checkout systems
d) Digital price tags
Q 4) What is the benefit that digital platform brings to business of Hennes & Mauritz ?
a) Satisfying customer service
b) Increased inbound traffic
c) Increased brand awareness
d) Improved consumer base
e) Enhanced sales
Q 5) Which digital platform is most appropriate for Hennes & Mauritz in promoting or
marketing its business?
a) Google AdWords
b) Facebook
c) Instagram
d) Native advertising
e) Snapchat geofilters
Q 6) How digital platform influence the business of Hennes & Mauritz?
a) Positively
b) Negatively
c) Neither positively, nor negatively
Q 7) What is the opportunity that Hennes & Mauritz get by entering into e-commerce in
fashion retail industry?
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a) Technological innovation
b) International growth
c) Personalization
d) Reduced barrier to entry
Q 8) What is the relationship between maximizing access to digital platform and enhancing
management of Hennes & Mauritz?
a) Positive relationship
b) Negative relationship
c) Neither positive relationship nor negative relationship
Q 9) Which is the challenge did management of Hennes & Mauritz may face while using
digital platform for promoting business?
a) New regulatory constraints
b) Leadership
c) State of existing information technology
Q 10) Which is the most appropriate strategy to promote digital access in Hennes &
Mauritz?
a) Encourage BYOT, BYOA, BTOD
b) Gamification
c) Go online
Q 11) Suggest some appropriate way to improve digital access in Hennes & Mauritz
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
3.6 Sampling
The process of collecting sample from huge population is termed as sampling. It can be
done in two ways probability and nonprobability. When the chances of selection of each
respondent is equal, then it is termed as probability sampling and its chances are not equal and
respondents are selected on the basis of judgement, then it is non probability sampling (Tuohy,
and et.al., 2013). This research considers probability sampling in which random sampling
method is utilize as by this, the investigator can ensure that biasness cannot take place while
selecting sample. 30 respondents are selected to fill the questionnaire who are the employees of
Hennes & Mauritz.
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