University Project: Digital Technology Impact on UK Retail SMEs

This research project investigates the impact of digital technologies on Small and Medium Enterprises (SMEs) operating within the UK retail sector, with a specific focus on Harrods. The project begins with a research proposal outlining the background, aims, and objectives, including an overview of Harrods and a comprehensive literature review on the importance of digital technologies in contemporary businesses. It explores the use of digital technologies by SMEs, the challenges they face in implementation, and the impact on productivity. The research design includes an examination of suitable research methods, including research design, approach, and philosophy, along with data collection methods and sampling techniques. The project then details the process of conducting research and applying appropriate analytical tools to interpret the findings. Finally, the project communicates the research outcomes, reflects on the effectiveness of the methods, and considers alternative methodologies. The project uses both primary and secondary data collection methods, including questionnaires and literature review to analyze the impact of digitalization on SMEs. The research aims to determine the importance of digital technologies in the UK retail sector, assess their use, identify challenges, evaluate their impact on productivity, and recommend effective strategies for SMEs like Harrods to leverage digital technologies for growth.

Research
Project

TABLE OF CONTENTS
TASK 1............................................................................................................................................1
P1 Producing research proposal...................................................................................................1
Background of the study..............................................................................................................1
Aims and Objectives....................................................................................................................1
Company overview......................................................................................................................1
Literature Review........................................................................................................................2
Importance of digital technologies in today’s contemporary businesses operating in UK retail
sector............................................................................................................................................2
Use of digital technologies in the SME’s operating in the retail based organisations of UK.....2
Challenges faced by the SME’s in a successful implementation of digital technologies in their
business- related activities...........................................................................................................3
Impact of digital technologies on the productivity of SME businesses, operating in the retail
industry of UK.............................................................................................................................3
P2 Examining suitable research methods....................................................................................4
Research Design..........................................................................................................................4
Research Approach......................................................................................................................4
Research Philosophy....................................................................................................................4
Data Collection Method...............................................................................................................5
Data Sampling.............................................................................................................................5
TASK 2............................................................................................................................................6
P3 Conducting research...............................................................................................................6
P4 Application of appropriate analytical tools to analyse the research findings and data.........13
TASK 3..........................................................................................................................................14
P5 Communicating research outcomes......................................................................................14
TASK 4..........................................................................................................................................14
P6 Reflecting upon the effectiveness of research methods to meet out the stipulated objectives
of the current business research project.....................................................................................14
P7 Considering alternative methodologies of research.............................................................15
REFERENCES..............................................................................................................................16
APPENDIX....................................................................................................................................18

Questionnaire.............................................................................................................................18

TASK 1
P1 Producing research proposal
Background of the study
Digital technologies are nowadays referred to be an essential consideration of almost
business organisations with a special context of small to medium business enterprises. It is
because of its vital assistance of transforming the entire business where it is also efficient in
terms of attracting a large set of consumers (Aitamurto and Lewis, 2013). The present study
is based on a similar prospect of using digital technologies for bringing growth and prosperity
in SME organisations with a special context of the retail based organisations, situated in UK.
This is mainly on considering some major number of benefits that can be acquired by the
SME’s after digitally transforming themselves.
Aims and Objectives
A prior aim of this investigation is “To study the implications of digital technologies
on SME business- A study on Harrods”. It is along with some well-defined objectives that are
as listed below-
 To determine the importance of digital technologies in today’s contemporary
businesses operating in UK retail sector.
 To ascertain the use of digital technologies in the SME’s operating in the retail based
organisations of UK.
 To identify the challenges faced by the SME’s like Harrods in a successful
implementation of digital technologies in their business- related activities.
 To assess the impact of digital technologies on the productivity of SME businesses,
operating in the retail industry of UK.
 To recommend ways in which the SME’s like Harrods can effectively use digital
technologies in their business-related activities for continual growth.
Company overview
This is on discoursing upon the chosen company to carry out the present research
work where Harrods as a famous SME business, operating in UK has been selected. It is a
private organisation that was set up in the year 1834. With a foundation year of 183 years, it
is headquartered in a well-known area of London, UK and dealing in luxurious products.
With an official website of its own to electronically serve its consumers, it is currently
working with more than 12000 employees.
1

Literature Review
Importance of digital technologies in today’s contemporary businesses operating in UK retail
sector
Digital technology provides accuracy in data as there is no other method to input the
data from any other device as stated by Buckingham (2013). The facts and figures provided
will be very correct and it will lead to more effective work. Due to this the productivity of
both the employees and organisation will increase. Also, it will reduce the possibility of
duplicate data. It also provides effective work force for the business. Skilled and experience
labour is required who can easily handle and work with the existing technology. Also, if there
is any change in technology or production process it is not required to recruit new labour.
El Sawy and Pereira (2013) with a distinct consent have specified that by using digital
technology, reliable and comprehensive data can be achieved. The organisation does not have
to waste time in checking its reliability. This helps in increased productivity of the business.
It increases work efficiency of employees and business as they don't have to continuous
monitor or operate its business process. The advancing communication system will lead to
better and effective communication flow between employees which in turn will give better
results of business performance. It also helps in providing quick and better solutions to the
problems of customers which helps in increasing greater customer satisfaction.
Use of digital technologies in the SME’s operating in the retail based organisations of UK
According to Eid and El-Gohary (2013), development of technology in today's world
has made it easy for the owners and managers of retail organisation to manage their daily
basis work in an effective manner. With the use of digital technologies, various tasks in retail
organisations such as inventory manage and control, quick billing of customers, count of
closing stock at the end of financial year, etc. have become easier to manage. As per Hashim,
(2015), the reach of small and medium enterprises has expanded to beyond the boundaries,
i.e. their scope has increased. However, it is critical to adapt and implement the latest
technology within the business organisation, but once it is implemented, it facilitates
managers to perform their work in more effective and efficient manner.
On the other hand, according to Jussila, Kärkkäinen and Aramo-Immonen, (2014),
use of digital technology has also opened the fate of frauds and faults. For the effective
implementation, SME need to employ a professional, that in turns increases its cost. These
technologies are high in cost and not economical for small and medium enterprises, as they
2

have low capital amount, raising and allocation of funds for new technologies can negatively
affect their profitability.
Challenges faced by the SME’s in a successful implementation of digital technologies in their
business- related activities
Implementation of digital technologies in business activities is not an easy task for
small and medium enterprises. According to Luftman, Lyytinen and ben Zvi, (2017), SME's
had to face different challenges for successful implementation of digital technologies, such
as:
Lack of resources: Especially small enterprises face the issue of lack of resources. These
businesses generally font have enough cash resources that are required to implement digital
technology in their business activities. Such as, various software's of inventory management
costs high in price and thus, it is difficult for them to afford these software's.
Human resources: According to Agrawal, (2017), small and medium enterprises often face
issue of having professional and high skilled as they look for higher monitory benefits which
an SME cannot afford. Successful implementation of technologies can be facilitated by high
skilled employees. Therefore, business need to provide learning and training to their existing
staff which in turn increases their cost.
Research and Development Department: These firms do not focus their resources on
research and development department as they don't value and also does not understand the
importance of research. However, according to Shaikh, (2018), Technologies that can benefit
a company can be developed within the organisation for which firm need to allocate more of
its resources in research and development department.
Impact of digital technologies on the productivity of SME businesses, operating in the retail
industry of UK
Use of technology has changed the way organisations conduct their business. In order
to develop competitive advantage small business can use computers, servers, personal digital
products and websites. By using the best technologies, owners are able to create their
operations. However, according to Löfsten, (2016), technology impacts the productivity of
SME's in following ways:
 Using technology can help them in reducing their overall cost of operations.
 It also helps in managing automated back office functions such as payroll, record
keeping and accounting.
3

 This enables improvement of communication within the organisation and with
customers by using emailing, texting and other applications.
 Message of business can be saturated to economic market with the use of several
types of informational technology communication methods.
 Technology also allows small businesses in expansion of business and in reaching to
new markets.
 Marketing of products and services has become easier than before by using internet
advertising.
P2 Examining suitable research methods
Research Design
Research design is the pattern of all study and strategies which is chosen to integrated
different components of the study which is conducted. This is will help in the study in
making it a more logical and easy to understand and in accomplishing aims and objectives.
To make the study and project easy and coherent it is required to choose the best set research
design (Fitzgerald, Kruschwitz, Bonnet and Welch, 2014). There are many types of research
design used in conducting several types of research project like descriptive. Casual,
experimental, etc., Descriptive is used to support the whole description of the study or project
and this study on implication of digital technological on SME. But the others are not used as
they will not be providing the detail and describe the impact of the digitalization.
Research Approach
The approach which are used in the research projects are used so that the research can
be conducted in an effective manner. There are two types of research approaches used by the
researchers to conduct the project they are inductive and deductive approaches (Bryman and
Bell, 2007). In inductive approaches all the important data and facts are collected and then
they are analysed and in this some new theory is generated. While deductive approach is use
to only move general to specific content and to test the theory. In this research to find out the
impact of digitalization on SME researcher used inductive as all the parts need to be covered.
While deductive is not used because it will not help to analyse the impact.
Research Philosophy
Research Philosophies are the ways in which data are collected, analysed and then
used. This is also the value and belief on the application of outcomes in different context.
There are two types of research philosophies which are interpretivism and positivism
(Hashim, 2015). Interpretivism is used to define the behaviour of human and interpretation
on that rather than only generalization. Whereas, positivism is philosophy is experiments to
4

reveal a true nature of how society is operating. For carrying out the research on the impact of
digitalization on SME interpretivism is used as we need to see the human behaviour on latest
technology.
Data Collection Method
For doing the research work collecting relevant data and facts are the most important
part so that all the expected findings and conclusion can be made. There are two types or
ways in which data are to be collected namely primary and secondary. In primary all the
initial source is taken for the first time which was not used in past in any way (Silverman,
2016). And secondary data collection is that in which old studies, books and journals are used
to carry on the project work. For doing research on the impact of digitalization on SME
taking the example of Harrods both the sources are to be used as questionnaire is prepared for
primary and some books or journals are used for secondary.
Data Sampling
Data sampling is process to select respondents from a given range of population from
where the data would be collected and analysed thereafter. In research methodology this data
sampling is the most crucial feature (Smith, 2015). There are two types of sampling like
probabilistic and non-probabilistic. In this project 10 technical experts from Harrods are
taken and then questionnaire is prepared to see and analyse the effect of digital technology on
SMEs. They have been questioned and then research is conduced so that results can be taken
out.
5

TASK 2
P3 Conducting research
Theme 1- A large set of technical experts are employed since a year in Harrods.
From how long are you employed with Harrods? Respondents Percentage
6 months 2 20%
1 year 5 50%
More than a year 3 30%
Interpretation- This is on referring to the above interpreted data where 5 out of 10 have
found to work since a year in Harrods with other 3 who are working from more than a year.
However, only 2 are reflected as freshers and are working since last 6 months only.
Theme 2- Almost all respondents are well aware of the term ‘digital transformation’.
6

Are you aware of the term digital transformation? Respondents Percentage
Yes 9 90%
No 1 10%
Interpretation- Digital transformation is referred to be a buzzword these days where there is
no such individual who is not aware of it and thence, the participants were hereby asked
about their knowledge regarding this term in context to business. Considering this, almost all
respondents, i.e., 9 out of 10 are well aware of this term and its application in business with a
single participant who is not.
Theme 3- Most of the respondents are agreed to this fact where a digitally transformed
business largely assists in reaching a large set of consumers.
7

Do you think a digitally transformed business helps in better
outreach to consumers?
Responde
nts
Percent
age
Yes, up to an extent 6 60%
No idea 3 30%
Not at all 1 10%
Interpretation- This is on considering both the facts acquired from both primary and
secondary data collection where a digital business is apparent to reach the customers in much
effective way. It is due to its integrated characteristics with that to distinct social media tools
that in turn assist the businesses to reach a large set of individuals who are mostly involved in
it. This meets the stated terms of 6 respondents with 3 who have reported to have no idea
about it and 1 who have denied accepting this fact.
Theme 4- All the participants believes in Harrods commitment of going digital and
electronically serving its customers.
8

Does Harrods believe in serving electronically to its
consumers?
Respondent
s
Percentag
e
Yes 10 100%
No 0 0%
Interpretation- Harrods being a well-known business enterprise strongly believes in going
digital and electronically serve its customers as stated by all 10 technical experts. This is also
on relating to the information gained from secondary data sources that has presented a similar
aspect of Harrods where it is successfully owning its online business.
Theme 5- A majority of customers believes in applying best online practices that in turn
attracts huge set of customers.
9