Implications of Digital Technologies on SMEs: A Case Study

This report investigates the implications of digital technologies on Small and Medium Enterprises (SMEs), focusing on their impact on administration, communication, and storage and distribution systems. The study employs a case study approach, examining Austin Fraser Limited, a UK-based recruitment consultancy. The research aims to understand the positive and negative effects of digital technology adoption, considering factors like resource constraints and the need for skilled workforce. The literature review explores the effects of digital technology on administration, including cloud technology and information sharing. The research methodology involves positivism, a deductive approach, and the collection of primary and secondary data through interviews and surveys. The findings highlight the challenges and opportunities for SMEs in adapting to digital advancements, emphasizing the need for effective communication strategies and efficient data management. The report concludes with recommendations for SMEs to leverage digital technologies for improved business performance and competitive advantage. The report is contributed by a student to be published on Desklib, a platform which provides all the necessary AI based study tools for students.

IMPLICATIONS OF DIGITAL TECHNOLOGIES ON SME

IMPLICATIONS OF DIGITAL TECHNOLOGIES ON SME
TABLE OF CONTENTS
Introduction......................................................................................................................................3
Literature review..............................................................................................................................5
Methodology..................................................................................................................................11
Data Analysis.................................................................................................................................13
Conclusion and recommendations.................................................................................................13
REFERENCES..............................................................................................................................15
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Introduction
Background of the study
Functioning of the Small and Medium organization is largely different from that of the large
companies based in any sector. Therefore, the functioning has to be maintained in different terms
from that of the large companies. However, it has been established that the functioning of large
multinational companies is highly affected by new incorporation of the digital sector in a country
wide setting. It can also be analyzed that such encroachment of new digital system of working is
also a matter of concern for the small companies that are mainly involved in the functioning of
the system. Not all the companies have become compatible enough to enhance their functioning
incorporating the digital sector of functioning due to lack of efficient functioning model as well
as the proper infrastructure (Palacios-Marqués et al. 2015). On the contrary it has also been
found that few companies have adopted a large sector of their functioning in terms of addition of
the digital technology in the organization. Therefore, there is a varied view that has described the
formation of the functioning as well as its alteration under the influence of the digital technology.
Therefore, researches under this stature are highly important to understand the extent of positive
as well as negative implications on an organization.
Background of the company
Austin Fraser Limited is a Small Medium Enterprise in United Kingdom that continues its
operations in the UK market. The main operation of the organization includes those of the
recruitment consultancy services and is a specialist in recruitment consultancy. The organization
has been established in the year 2006 and has been functioning effectively in the UK market
engaging a large number of professionals to their business conduction or business activities. The
company mainly provides supports and advices to produce recruitment within the sectors like IT,
engineering, Life Sciences, etc. The consultants that the organization involves in their
functioning include consultant specialists those are expertise in providing services within a
specific sector (Popa et al. 2016). They also include such members as professionals that are
especially skilled within a geographical area. Thus, the company is engaged with providing the
clients with the fantastic network that is better when compared to any other external network.
Therefore, the organization has effectively gained the competitive edge in the market through
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effective use of the digital marketing system in the company. Therefore, the strengths of the
company are shown here clearly.
Rationale of the research
Research aim
The aim of the research is to understand the effects of the digital technology on the business of
Small and Medium Enterprises.
Research objectives
The objective of the research is to evaluate the existing positive as well as negative impacts on
the functioning of the Small and Medium Enterprises. The effectiveness of the digital technology
over the small and medium enterprises has been considered as the research objective. Besides,
the essential areas within the system would therefore be addressed and assessed within the
dissertation. This evaluation includes the evaluation of the communication system,
administration as well as the process of distribution and storage. Therefore, the effects of such
functioning on the production have also been evaluated and understood.
Problem statement
The new advancement in the stature of science and technology has incorporated huge changes in
functioning in different sectors. Therefore, the effects of new digital technology are high on
business as all other sectors. However, the effect has been varied when compared to different
large as well as small organizations. It has been found in different researches that several Small
and Medium Enterprises are facing adverse conditions due to evolvement of the digital
technology services in the market. On the contrary several other SMEs have also been found to
be positively affected by such advancement in the technological sector. The opportunity and
scope has been found to have a manifold increase to bring about wealth and choice. Therefore,
the study reflects and evaluation of the present condition considering the functioning of a Small
and Medium Enterprise called Austin Fraser Limited.
Significance of the research
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The research has been stressed on the significance to understand the current situation in the
market in terms of its functioning under new evolvement of the digital technology in the market.
Such detailed understanding of the functioning of the digital system as well as its link to the
business conduction will help in bringing out the main cause of failure of certain Small and
Medium Enterprises. This will thus enhance the scope of producing suggestions and
recommendations in order to develop the functioning of such enterprises.
Research methodology
The research has considered the theory of positivism as the philosophy and the approach used is
deductive. The data collection has considered both the secondary and the primary methods while
quantitative and qualitative methods were used in the analysis of the recovered data. Primary
data has been acquired by interviewing of the managers in the organization along with the survey
among the employees in Austin Fraser Limited. On the other hand, the secondary will be
collected from the books, journals and newspapers as well.
Literature review
Impact of digital technology on administration
The new forms of digital technology have been considered to be an important fact during the
conduction of the business. It has been a new intrusion in the field of functioning within the
organizational stature of the digital technology has altered a number of functioning within the
organizational stature. As a result, there is alteration of a number of functioning in the
organization so that the new involvement of the digital technology. These areas include
administration of the functioning of the organization and administration takes the lead role in the
same. The administration includes the functioning of an organization it includes the effective
functioning of the cloud technology that is incorporation of the same in the organizational
framework (Ahmed et al. 2016). Therefore, a several amount of functioning is being included in
the same. The filing of the information in the required areas is the most important function
among all. Besides, the sharing of information is also an important stature of the functioning.
Therefore, the storage of the information is also incorporated in the digital system.
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However, the functioning of the SMEs in conduction of the business has been affected adversely
in terms of its functioning in the stature of its conduction of business including adding a good
strength to the company administration workforce. Such a functioning is thus becoming a barrier
for the functioning of the Small and Medium Enterprises. Among the most frequently addressed
barrier through the incorporation of the digital technology is that the lack of resources in the
organization. Small and Medium Enterprises often lack in sufficient resources that makes them
vulnerable to the change. Any change in the functioning of the new technology in an
organization will definitely affect the formation of functioning in the organization. Therefore,
there is a verse need of new workforce who has enough knowledge about the functioning and
implementation of the same (Stankovska et al. 2016). The scarcity of proper and efficient
employees in the organization arise the issue of disparity in their functioning. This situation is
often found to occur in small and medium enterprises that function within limited resources.
However, the functioning of the Austin Fraser Limited has been studied well with compliance of
their activities within the digital technology functioning. It has been found in various detailed
studies that the organization Austin Fraser Limited has been functioning in the industry
providing effective consultancy services to the customers. The organization has also acquired the
third topmost position in the list of the UK consultancy services. Hence, the functioning of the
organization has been found to be efficient enough to acquire their revenue for incorporation of
new work structure in the organization. Therefore, the new work structure within the digital
technology has been profitable for the functioning in the organization and thus hiring of new
employees who are efficient enough to functioning within the new working structure has
provided the organization with an advantage to function within the system (Quinton et al. 2017).
Therefore, the effects of the new digital technology have been found to be positive in terms of
administrative facilities.
Impacts on the communication processes in SMEs
The communication within an organization is needed to be highly effective in terms of the
communication process within as well as outside the organization. The large enterprises are
usually accompanied with a highly effective communication system that is liable to produce
effective functioning in all stature. On the other hand, the Small and Medium Enterprises
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consists of limited supply of data with limited supply of information in the organization.
However, the effective supply of information in an organization is largely required to conduct
their functioning efficiently in the market. On the other hand, the functioning of the
communication is mainly to allow the businesses to connect to their clients as well as the other
stakeholders in the organization. Therefore, the information gathered in this stature is also
authentic making the functioning more viable from the viewpoint of the organization. Besides,
the communication is also increased in the organization making their functioning more and more
efficient (Rahayu and Day, 2015). However, there is a need to incorporate the better functioning
system in the organization that would help them have a proper functioning in the domestic as
well as international sector. In most of the multinational organization the organization has been
considered to be highly functioning in both the national as well as international stature. Such
incorporation of the new communication system under the digital technology system is better
and largely scoped by the large multinational organizations. On the other hand, such functioning
is not easily achieved by the small and medium enterprises due to fewer amounts of resources
acquired by the organization. Therefore, this causes the organization to fail in the sector of
incorporation of the communication through the digital technology.
While studying the functioning of the considered small and medium enterprise such as Austin
Fraser Limited has incorporated a huge amount of technological instances in the organization
due to the effective amount of resources such as both the financial as well as human resources in
the organization. Being a part of the consultancy industry the organization has to have a specific
amount of ease in the communication sector so that their functioning is enhanced (Yee-Loong
Chong et al. 2014). Most of the small and medium enterprises are required to have a proper
functioning that would be fulfilling the functioning in the areas of communication. Therefore, the
functioning has been found to be profitable under the influence of the digital technologies. The
communication sectors have been improvised by the usage of the same. The Austin Fraser
Limited is a small organization that likes to provide functioning and their function is largely
dependent on the data that are likely to integrate in the functioning. They have included a
functioning area where they determine the functioning through usage of the mobile technology,
social media, etc. Therefore, the implications of the organizational functioning have been proved
to have improved with the incorporation of the digital technology in the company. On the other
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hand, the functioning of communication has also been found to be much cost effective making
the organization move towards a better functioning and linking to the clients that is the
customers (Ramayah et al. 2016).
However, the main challenges in this sector is likely to be existing in terms of finding the proper
executive assistance who would efficient carry out the activities of the organization within the
new system of digital technology and online communication system. As a result, the
advertisement and the promotional sector is likely to be falling apart and producing hindrances in
their functioning.
Storage and distribution system in SMEs
Austin Fraser Limited Company working with the client services that specifies the recruitment
and the progression for the consultancy create the specific orientation of things that cater the
strong perfection in the working capability as a SME company. The outstanding business
services cater the perfection that generate for business growth and development. The storage
system for the SME Company creates the systematic formation so that the grid of operation and
marketing structure operate in a specific way. The recruitment sector that works with targeted
and motivated individual, with the focus company can provide a strong assessment for the
candidates. The candidates will eventually get the best things from the other organizations and
market as well and Austin Fraser Limited can promote their name to the other aspirants. From
the operational process, financial database, strategic orientation and the technical background
needs to be strong and effective so that the entire thing can able to generate the perfect
engagement of things (Soto-Acosta et al. 2014). the storage possibility of the company assesses
with the factor that they need to connect with the renowned and other small and medium
organizations and deal with each information in a perfect way so that the candidates can able to
update them for the same. When the organization will be clear about their motifs and they can
adjoin for the valuable and formative basis so the candidates will be successful in finding the
proper job for them so that they can work with perfection with any of the organization they are
going to work (Chompu-inwai et al. 2014). Austin Fraser Limited Company as their storage use
the different information about the different company, keep up a strong and effective
communication, plan for better things with the organization and create the symmetric value for
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the entire perfection so that the improvement factor gets to face in a proper way for the job
aspirations. Being a SME consultancy Austin Fraser Limited Company deals with the different
criteria both from the different organizations and from the candidates who are going to apply for
the job. It is an essential factor for the company that they know their work criteria and takes care
of several activities that bring the best people for any of the suitable job in the market. The major
financial statement also need to maintain so that the from planning to the final systematic
development skill can increase and progress for the ultimate thing in the market. Acquire talents
from various places and work with them to bring the best status for the organization can generate
the supportive and promotional factor for the Austin Fraser Limited Company.
On the other hand, the distribution system works as the system orientated functional and strategic
planning technique. The distribution process for Austin Fraser Limited Company caters the
proper support and configuration so that the knowledge assessment and design for the entire base
can able to maintain in a possible way. When the aspirants get to focus to the perfection that how
they can able to connect to the different organization by the recruitment company then they will
get to deliver more perfection. Austin Fraser Limited Company, in order to serve the customers
with prefect things needs to keep in mind that the information needs to be authentic and the
requirements of the candidates need to fulfill in a specific way (Ratajczak-Mrozek, 2015). The
recruiter, user of the application gets to come face to face and they will maintain the effective
and efficient communications purposes and the channel get to maintain by the Austin Fraser
Limited Company, as they help people to reach out to the perfect recruiter according to their
qualification, experience and knowledge.
Digital technologies implications on the production in SMEs
With the implications of digital technologies, the organizations become perfect with their skills
and they are exaggerating all the service factors to the people in such a way so that they can able
to understand each progress with a systematic manner. The people who are using the recruitment
purposes from Austin Fraser Limited Company they get to face the easy and processed structure
for the same so that it can able to generate the perfection in various things. From the supply of
different resources and reaching out to the candidates in a systematic manner is the first and
foremost thing that helps for the deliberate and effective perspective to the production purposes
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for the outstanding recruitment practices that the company maintains (Jie et al. 2014). The
company verifies with many formative ways so that they can able to fulfill the need and demand
for the ambitious individuals and create a formative basis for them so that they can place them in
a good company.
Production help Digital implications Growth factor
Sales Faster and better information
technology that enable the
industry standard
Usage of software and
hardware can solve the
problem for the entire thing
Customer journeys The broad range of specialist
work for the betterment of the
organizational information
and the technologies will
work for the entire thing
The candidates will get to
face the perfect orientation
for the future long term
assessment by engaging with
the different organizations
Data assessment Technology helps a lot about
the data assessment so that
the company can able to
generate the perfect thing and
create the systematic
progression for the entire
thing.
Consumer will get to connect
to the different organizations
those who are dealing with
the diffident service offerings
to the customers.
Technology based factor Sharing the data using
standard and provision of
additional data and analytics
based services for the
recruitment company
The technological platforms
for the organization such as
Microsoft, Oracle ERP, SAP
Hans, SAP ERP help to
achieve the entire thing in a
perfect way
Services The primary focus to the
capture and the usage of the
external and propriety data so
that it can cater several
As the organizational
planning process for the
candidates are become easy
so they get to focus for the
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organizational perfection in a
systematic way
different online transactions,
information processing and
the other communication
factors for the perfect service
delivery and the engagement
of better services.
Methodology
Research design
Research design is one that is included in the study in order to enhance the effectiveness of the
study by determining the layout of the presentation of the research. There are three major types
of research design that are the explanatory design, exploratory and the descriptive research
design. The study has considered the descriptive design as the appropriate form of research
design that is established on the collection of the data and to understand the present condition in
the present scenario. This is basically on considering the tactic of descriptive research design that
is apparent to provide an in depth investigation of the current topic which is to understand the
impact of digital technologies on SME’s.
Research philosophy
The research philosophy is the component in a research that describes the path the study is going
to take. The research philosophies are many for example, the positivism theory, the post
positivism theory, the realism theory and the interpretivism theory (Awa et al. 2015). The
philosophy that has been taken into consideration the realism theory that. This has been
considered as the philosophy of the study due to the stature where the present situation has been
studied and evaluated in order to find the effects of the digital technology bin the functioning of
the small and medium enterprises. Herein, the undertaken philosophy is from interpretivism and
positivism where on the basis of present study that has reflected a theoretical nature will be done
using interpretivism philosophy of research.
Research approach
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The research approach defines the factors that are included while conducting a research as a plan
that is conducted to successfully conduct the research. There are two kinds of approach of study
that are the deductive and the inductive approach. The study of the present research has
considered the deductive approach that is the conduction of the research to study the established
factor and to evaluate the same to deduce a result from the same. Such an approach has been
considered for this study as the effects of the digital technologies on the small and medium
enterprises have been studied and a deduction is derived in rider to understand the present stature
and to recommend on the same. On considering the chosen research approach named deductive,
this study will depict an investigation on a specifically selected firm called Austin Fraser
Limited.
Data collection methods
The data collection method that has been considered in this study is both the secondary and the
primary data collection methods. The data collection has been stressed on collection of the data
through secondary data collection method where various existing data has been taken into
consideration. This includes study of the online journals and newspapers. On the other hand, the
website of the organization that is the Austin Fraser Limited has also been studied in order to
understand the functioning of the organization under the influence of the newly emergent digital
technology. Past researches have also been taken into consideration in order to understand the
effects that have been sued till date.
On the other hand, the primary data has been collected in order to understand the views of the 10
employees working in the IT department of Austin Fraser Ltd. Therefore, the survey is
conducted among the employees in the organization that is Austin Fraser Limited through a
survey questionnaire. Thus, the quantitative data has been acquired by this process (Taiminen
and Karjaluoto, 2015). On the other hand, the qualitative data has been considered to be acquired
by the interview processes involving the managers in the small and medium scale enterprise that
is Austin Fraser Limited. An interview questionnaire has been employed for collection of the
qualitative data from the mangers.
Data analysis methods
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