MSc Management: Leading Through Digital Disruption Report

This report analyzes the challenges and opportunities of digital disruption within HSBC Holding plc, a UK-based banking firm. It examines the threats posed by competitors and technological advancements, alongside the company's digital transformation efforts. The report identifies techniques for swift market operation, including competitor analysis and macroeconomic trend assessment. It explores quick decision-making strategies like suggestions, research and development, and pattern recognition. Furthermore, it examines the talent required for digital transformation, including skills in data security and innovation. The report also analyzes the contributions of formal and informal leaders, collaboration tools, and essential leadership qualities for success in the digital age, such as adaptability and strategic thinking. Ultimately, it provides insights into how HSBC can strengthen its position in the market through effective digital transformation.

Leading through digital
disruption

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Elaboration of the details of the company and the threats that it possess in addition with the
digital transformation that is going on in the firm.......................................................................1
TASK 2............................................................................................................................................3
Identification and examination of the techniques that the above mentioned company can
choose so as to operate in the market swiftly and smoothly........................................................3
TASK 3............................................................................................................................................3
Elaborating the technique that can be used so as to make quick decisions.................................3
TASK 4............................................................................................................................................4
Examination of the talents that can be engaged by the company with respect to digital
transformation..............................................................................................................................4
TASK 5............................................................................................................................................5
Analysis of formal and informal leaders contribution that they can do for the company in the
long run and in the age of digital transformation.........................................................................5
TASK 6............................................................................................................................................6
Describing the tools of collaboration that can be used by the organisation.................................6
TASK 7............................................................................................................................................6
Discussing the qualities that a leader must possess so that they can contribute in the success of
the enterprise in the age of digital transformation.......................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Digital transformation is one of the most important as well essential aspect for each and
every firm that is operational in the current market scenario as it gives a chance to every
company to grow and prosper by using different technology so that it can survive in the market
which is highly competitive and dynamic in nature (Biber and et.al., 2017). In this report there is
a brief discussion of a company that is HSBC Holding plc which is geographically located in the
UK and is operating in many other countries too in the sector of banking and its related
segments. Apart from this the report covers a detailed elaboration of all the factors that are
responsible for the positioning of the company as it is struggling at large. Further in this report
there is also an analysis and evaluation of the things that can be done so that it can emerge
stronger in the market as compared with its other competitors that are operating in the similar
market with the help of digital transformation.
TASK 1
Elaboration of the details of the company and the threats that it possess in addition with the
digital transformation that is going on in the firm
The company that has been mentioned above which is HSBC Holding plc is operating its
business as usual and the phase of digital transformation in which it is working is formalised in
nature. Since it is one of the biggest company which is operational in the baking sector and thus
as a result it meets many challenges and threats while operating in the market. The biggest threat
for the company is the continuous decrease in the rate of interest that it gives to its customers and
thus as a result they are reluctant to deal with the banking firm. Also there are many other
competitors which are operating in the similar market and uses more advanced technology as
compared to which acts as a threat to the company as customers are more keen and interested to
use the services of a firm that gives higher rate of return and good services. HSBC Holding plc
deals with a lot of customers and the server of the company is not that good to meet the
requirements of all the prospective customers which leads in the decrease in the value of the
enterprise in the industry (Blagorodnova and et.al., 2019). There are also many cyber attacks on
the firm's website and it also crashes very frequently that causes a lot of problem to individuals
that are associated with the organisation. Since there are a number of objectives of digital
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transformation that HSBC Holding plc wants to achieve and thus all of them are discussed in a
systematic and sequential manner below-
 Improve service quality- Improving the quality of service is very important and for a
company like HSBC Holding plc it becomes even more essential as it deals in service
sector only. If a customer can feel the change in the service it automatically increases the
profitability of the firm as it works as a tool of direct advertisement which can help the
company to grow and prosper in the market.
 To optimise processes- Digital transformation can help in optimising processes like
manufacturing, marketing, and accounting. These can be refined so that they can carter
the needs and demands of all the customers that are associated with HSBC holding plc
and its owners too. Apart from this it can concentrate on a single party or all the
activities of the business without affecting the original operation that the company
performs in the industry.
 Reduce cost- The main things that HSBC holding plc wants to achieve through digital
transformation is to reduce the cost of operating so that the profits can be used for the
welfare of the public. These reduction of costs can directly benefit the customers too as
they are the one that would get the excess amount in case of higher profitability by
different ways like increased rate of return and interest (Boyles, 2016).
 To create new ideas- Digital transformation can help HSBC holding plc to formulate
new ideas so that it can create a pool of resources available with the company so that the
appropriate one can be used as and when necessary. Apart from this if a firm has many
ideas in backup then in case of failure of one next plan can be implemented without
wasting much time.
 To comply with data security- Since HSBC holding plc is operational in banking sector
it becomes very much important for it to keep its data in a secured server so that it
cannot be hacked by unwanted sources. As banking data involves sensitive information
and in case of any unauthorised person get access to it, then that can become a problem
for the bank as well as for the country too. Digital transformation can help the above
firm to achieve data security and that too in an effective and efficient way.
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TASK 2
Identification and examination of the techniques that the above mentioned company can choose
so as to operate in the market swiftly and smoothly
There are a number of different techniques that are used by firms in order to cope up with
the changing environment but HSBC holding plc chooses appropriate tools and techniques that
are feasible in the market. All the aspects are described below in detail-
 Competitors- As HSBC holding plc operates in banking sector which has a number of
different other rivals too that poses as a threat for the firm since customer ratio is divided
among them which directly hampers the profitability of the company. HSBC holding plc
closely examines all the procedures and policies that the competitors use and then
formulate such policies so that it can attract maximum number of individuals. The things
that it uses is increase in the rate of return though it is not too much as it raises it with a
margin of 10 or 20 basic percentage points but at the same time it attracts many
prospective customers as they wants to maximise their profits (Cen, Dasgupta and Sen,
2016).
 Macroeconomics trends and partners- Macroeconomics is a wider term that is related
with risk-neutralisation and risk-aversion so that the firm can grow and prosper in the
industry in which it is operating. There are a number of different factors that are
associated with it like public expenditure, overall taxes, private consumption, etc. and all
these has to be analyse in an impactful manner so that it can lead to the fulfilment of all
the desired goals and objectives. HSBC holding plc can use digital transformation to its
benefit in this aspect too by the ways of urbanisation, automation and changing
dynamics.
Techniques to detect changes in company
Evaluation areas for change: Management must assess the company in order to identify
aspects that need to be changed. Evaluating the organisation to find opportunities for change
will support the business in maintaining a competitive advantage. For example, the company
can discover that it is still using obsolete manufacturing methods. Modifying the
manufacturing process, discovering emerging technology, and educating workers in new
manufacturing processes are also examples of transition processes.
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Planning implementation: The business should devise a strategy for implementing systemic
reform. Businesses should figure out how much it would cost to make a reform and adjust
carefully. Rescaling staff, buying advanced facilities, and recruiting contractors are all
examples of costs associated with making a transition. A project manager of HSBC may help
direct the transition process and delegate tasks to key personnel. Having small targets for
yourself through the transformation will help you stay motivated.
TASK 3
Elaborating the technique that can be used so as to make quick decisions
The approach that can be used by HSBC holding plc so as to formulate decisions that can
help the firm to grow in the market and that too within a limited time frame are explained below
in detail-
 Suggestions- It is the simplest approach that can be used by HSBC holding plc to take
quick decisions. The firm can take appropriate suggestions from their clients as they are
the one that can see the actual problems and the loop holes in the company. So with the
help of their feedback the organisation can implement necessary rectification measures
that can prove beneficial from the company's point of view (Jameaba, 2020).
 Research and development- Since HSBC holding plc is a big company so it can bear
the cost of research and development. It can form a team of experts that are well educated
and experienced in the sector in which the firm is operating so that they can make and
formulate excellent plans that can help the enterprise to take decisions in a quick time
period.
 Understanding a set pattern- Each and every business has a patten on which the
successful firms are working so HSBC holding plc must try to find out that set pattern
that can help in taking all the decisions in a quick time. This can be find out with the help
of detailed analysis and evaluation of different firms and other things that are relevant in
the business.
Specific approaches for making fast decision
Avoiding: It is most essential approach that follows by the HSBC to apply changes in
their company. One alternative for making a decision is to create no judgment at all. The
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responsible party may do this for a variety of reasons: There is inadequate data to make a
rational decision between options.
 The advantages of choosing all of the options outweigh the negatives of choosing
one.
 There is no immediate use of a selection, and the established order can be maintained
without causing harm.
 The individual who is weighing the options lacks the power to make a decision.
Problem solving: The majority of decisions are made as a result of problem-solving
exercises that conclude until a suitable solution is found. Problem solving in behaviour
relates to the ability to achieve a certain purpose from one's current situation. Problem
solving necessitates the classification of the problem, the interpretation and assessment of
facts, and the collection of reasonable options.
Problem seeking: The approach of problem solving will apply by HSBC for apply changes
and also contradict the problem is actually emphasis or reach. It may be discovered to be
incorrectly developed, to have a scope that is too wide or limited, or to be lacking a main
feature. The decision-makers would then take a step back to analyze the data and research
they've used so far. Since policy makers must refer to the preliminary step and respectively
the concerns they wish to solve, we may call this practise "problem finding."
TASK 4
Examination of the talents that can be engaged by the company with respect to digital
transformation
The techniques that can be used by HSBC holding plc so as to engage talents that are
needed for digital transformation are as follows-
 Strategy building- HSBC holding plc must build appropriate strategies and that too a
strong one. This can prove helpful in achieving sustainability so that in case any
unforeseen situation arises due to digital transformation it can handle all of them in an
effective and efficient way (Laskowski, Montiglio and Pruitt, 2016).
 Management- It is very important as well as essential to have a core team of
management that can take relevant decisions on the behalf of the owners of the company.
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HSBC holding plc can employs experts in this field so that it can help in the process of
digital transformation and that too very smoothly.
 Success measurement- HSBC holding plc must measure its level of success in digital
transformation so that an idea can be made about the positioning of the company in the
near future.
 Risk measurement- It is very crucial to take all the risk factors into account too so that
in case of any adverse event happens HSBC holding plc can be well prepared for it so as
to reduce any further chance of mismanagement in the future.
TASK 5
Analysis of formal and informal leaders contribution that they can do for the company in the
long run and in the age of digital transformation
Digital-ready culture is a set of values and practices that can help a firm like HSBC
holding plc to increase its performance so that it can innovate and execute its digital enabled
plans in an effective and efficient manner (Parr and et.al., 2018). The company can create a
digital-ready culture in the following ways-
 Build the practices that set digital firm apart- HSBC holding plc must do rapid
experimentation so that the data that is kept with the bank must be secured enough so that
it can carter all the needs of the customers.
 Preserve practices that promotes stability and integrity- Employees that are working
with HSBC holding plc must be given a sense of security and stability of job so that the
individuals can work with more enthusiasm and zeal that can benefit the company in the
long run.
 Reorientation of important practices- The practices that were important in the pre-
digitalisation world must be kept as usual without any change as they are tried and tested
things that can help a firm like HSBC holding plc to grow and prosper in the digital
transformation world.
Formal leader can help in fostering a digital-ready culture by using the position that is
held by that person in the company. Since they have higher authorities thus they must formulate
appropriate changes that can help the company to sustain in the market for a longer time period.
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Informal leaders are one that does not hold any important position but they are worth
listening as they carriers a lot of knowledge with them and they can help in fostering a digital-
ready culture by giving their valuable suggestions to the higher authorities so that it can be
implemented for the beneficial of the company in the long run (Richardson, Jenkins and
Lemoine, 2017).
TASK 6
Describing the tools of collaboration that can be used by the organisation
Collaboration is one of the crucial tool that are used by most of the firms in order to
reduce the competition as well as to capture a larger share in the market. Since HSBC holding
plc is already a big firm and has captured a larger share in the market but it can use collaboration
to its advantage as it can merge with many smaller banks in order to give stiff competition to the
bigger banks. The leaders can contribute in it too as they can build such a relationship with every
firm so that they can either merge with HSBC holding plc or can compete with other firms apart
from HSBC holding plc. This will also help the company to acquire a different position for it in
the industry as compared to other rivals of it and thus it will directly affect the profitability of the
organisation in the long run (Sari, Lianingsih and Sari, 2019).
Kindling: This tool is a Web-based technology created by the Arc90 company in the United
States. It assists in the planning of a meeting by designing an agenda, sending an automated
request, and providing wireless connectivity decision space during the pre-decision process.
Kindling allows for concept creation in a similar and shared environment during the decision
process. It provides rooms, which are devoted to the development of ideas. We may categorise
concepts into particular themes in such ontextual spaces. After the generational phasing, it is a
way of managing thoughts soon on.
TASK 7
Discussing the qualities that a leader must possess so that they can contribute in the success of
the enterprise in the age of digital transformation
The attributes that a leader must have so as to build such a culture that can support digital
transformation and all of them are explained below in detail-
 Motivational- A leader must have the ability to inspire and aspire others that are working
for the company so that all the activities are directly towards a single goal that is
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profitability. Since HSBC holding plc is a big company and thus it is very important for a
leader to make a connective environment in the business so that all employees must feel
attached to the company.
 Appropriately skilled- A leader must be highly skilled and must possess diverse
knowledge about all the aspect so that in case of any query the person must be able to
solve all of them without any complications. As HSBC holding plc works in a dynamic
environment so it is important for the leader to be innovative at places so that it can help
to meet the changing environment. Further the leader must manage risks that are
associated with the business in an accurate and precise manner so that it can add value to
the firm in the long run (Trabucchi, Talenti and Buganza, 2019).
Attributes
Integrity: Leaders who behave with confidence in their acts and choices would see an
increase in work morale as well as their own skills. Exceptional individuals are most often cited
as having the highest level of integrity. Employees value stability and security, which this action
provides. For identical conditions overnight, the same straightforward and clear answer will be
made as it was yesterday. Those leaders are often good and honourable in their behaviour. They
are honest about themselves and others.
Challenge: Work with workers to make them appreciate their talents, and do it in a way that
has a positive self-motivational impact. Deep thought, deep struggle! Don't take the shortest path
to achieving your goal. In these situations, success falls short of potential, and we are left with
"nothing then." Challenges are inevitable in the workplace, and avoiding them or burying our
head in the ground is a failing tactic.
These attributes of a leader help to HSBC to make effective culture and employees ready to
adapt changes in company. Along with it helps to make success in particular industry for long
period of time.
CONCLUSION
Digital transformation is the most crucial aspect as it can help a firm to grow and prosper
in the market if analysed and implemented in an impactful way. From the above it can be
concluded that it is very important for HSBC holding plc to change its technique that it uses in
the present time as it is outdated and can be used by unauthorised person which can pose as a
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threat to the company. Apart from that it can be concluded from the above that digital
transformation is a necessity for the company as it can change its positioning drastically in the
industry.
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