Research Project: Digital Technology Impact on SME Business Activities

This research report examines the impact of digital technology on the business activities of Small and Medium Enterprises (SMEs), specifically focusing on a retail sector company, Nisa, in the UK. The report begins with a research proposal outlining the aims, objectives, and significance of the study, alongside a comprehensive literature review. The literature review explores the importance of digital technologies for SMEs, their impact on small-scale organizations, different types of digital technologies (such as cloud computing, mobile phones, and AI), and the challenges faced in their implementation. The research covers topics like cloud storage, AI's role in predicting customer behavior, and the benefits of digital technologies in expanding business reach and efficiency. It also addresses the potential drawbacks, such as employee dependence on technology and the need for cost-effective solutions for SMEs. The report concludes by discussing the reasons for selecting the project and its relevance to understanding the digital technology landscape in the SME sector.

Research
Project

Table of Contents
INTRODUCTION...........................................................................................................................1
Producing research proposal ..................................................................................................1
Activities and timescales..................................................................................................................6
Research approach and methodologies .................................................................................8
Data collection and analysis ..................................................................................................9
Effectiveness of research findings .......................................................................................19
Alternative methodologies of reach and lessons learnt from results....................................19
CONCLUSION..............................................................................................................................19
REFERENCES .............................................................................................................................20

INTRODUCTION
Due to use of digital technology in the business the way business are operating have gone
through a major change (Foroudi and et.al., 2017). In order to grab more customers and make
their products and service more popular and attractive more and more companies are making use
of digital technologies in the business. On the operation of business these technologies have
brought a positive impact. The more of automatic system are been used which have reduced the
need to do work manually so use to this a lot of time of the employees is being saved.
In the UK nisa is a small scale organization .It is retail sector in the UK. This report will
produce a research proposal for this company on the topic impact of digital technology on
business activities of small scale companies. In order to do this both primary ad secondary
research is been conducted The outcome of this research will also be conducted in this report.
Producing research proposal
Title - “Impact of digital technology on business activities of SME”
Background – More technological support is needed as today we live in a information society
where people must manage more information. There have been a major change in the operation
of business today. In order to conduct the business the organisations are making use of digital
technologies in the business (Hernandez, and et.al., 2016.). Due to digital technologies that are
been used a major change in been brought. In order to expand the business on bigger and greater
platform more and more businesses are making use of these digital technologies. The companies
are making use of cloud computing storage in order to store all the records of their moneys and
customers. The advantages of using cloud – storage in the business are numerous. The artificial
intelligence is been used by most of the companies in order to predict the behaviour of
customers. With this they can find out the preference of customers. By making use of digital
technologies the small scale companies are able to establish its business on a broader platform.
Aims and objective
Aims – To find out the impact of digital technologies on business activities of SME such as Nisa
Objective
 To examine the importance of digital technologies for SME
 To study the impact of digital technologies on small scale organization
 To analyse different types of digital technologies that can be used in the business
 To examine the issues that is faced by SME in implementation of digital technologies
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Significance – This research will provide the small scale business stakeholders the need to
propagate their resourceful processes and practice towards global requirements . Within small
business to create a environment that can incline individuals, agencies and governments that can
help in the growth of business. On the value of process of business and practices that are globally
oriented to pay emphasis on them. This research will help the SME to make use of digital
technologies in order to grow their business.
Literature review
The importance of digital technologies for SME
As stated by Jones, Alford and Wolfenden, (2015), by making use of digital technology
in the business it will expand business more rapidly and efficiently. By making use of digital
technology such as mobile phones the workplace boundaries have been removed. By using
digital technology in the business the company can expand the base of its customers. By making
of digital technology the communication in the business can be enhanced. The employees that
are working in the office or other workplace are not just restricted to phone call they can also
make use other technologies in the bushiness such as electronic mail in order to send message to
other clients or to some other location. The interaction with the customers is also become
efficient as from multiple channels information can be passed. To fulfil the needs of customers
more and more business are making of digital technology in their business. On the contrary note
Kriechbaumer and Christodoulidou, (2014), stated the use of digital technology have made
people more depended and additive towards these technologies. For day to day activities the
office is more reliable and dependent on computers. In case if there is any issue in computers
then in this case the employees that are wrong in the companies will not be able to do their work
until that issue is being solved. As stated by Kopanakis, Vassakis and Mastorakis, (2016), by
making of digital technology the work can be done in less amount of time. However on the
contrary note as stated by a lot of employees are fired from the job as their work is being done by
the machines and also a tie that is been taken by machines to do work is less. By the one
computer the work of about 9-10 people are been done. But in any company to increase a profit
and expand the business digital technology plays an essential role in it.
The impact of digital technologies on small scale organization
According to Mazzarol, (2015) , The way the companies conduct business has been
revolutionized by digital technology. These technologies can be implemented by the smaller
2

organization and with larger organization they can level the playing fields. In the economic
market place to develop competitive advantage small business make use of computers, servers,
websites and personal digital products. In the planning process owners of small business should
implement technologies. In order to reduce the cost of business the owners of small business can
use technology. The back office functions such as keeping different types of digital technologies
that can be used in the business of record, accounting and payroll etc can be done automatically
by using digital technology. To create secure environment these technology can be used by
owners of business. This will help to maintain sensitive business or customer information. These
digital technology are user-friendly .With a minor background in information technology it
allows owners of business to make use of computer hardware and software. The communication
process can also be improved by making use of these technology. With customer the skills of
communication can be improved by making of texting, websites etc. Also the digital products
application such as apps can also be used in the business. Through these electronic methods of
communication the companies receive more feedbacks from consumers. Through mobile
devices these methods allow companies to reach customers in a real time format. According to
Morgan-Thomas, (2016), through the use of digital technology SME can increase employees
productivity. In comparison with manual methods computer programs and business software
allow employees to process more information. In the business function to reduce the amount of
humans labour also business can also implement digital technology. Along with employee
benefit it allows small business to neglect paying labour costs. The new economic markets can
be purchased by the small business by making use of technology. In the local market rather than
just selling consumer goods or services .The new market such as regional, national and
international market can be reached out by them .The most common ways by which small
businesses can sell their products in several different economic markets is retail markets. A low-
cost option is been presented by websites that can be accessed by customers 24/7 when they are
need to buy goods or service. In order to reach out new customer or new market the small
business can also make use of internet advertising.
Different types of digital technologies that can be used in the business
The most effective and efficient digital technology that can be used in the business is
cloud-computing. By making use of this cloud-storage the company will able to store all its
records and essential information on the cloud. The advantages of using this storage are many.
3

As per Quinton and et.al.,(2017), with cloud the company need to worry about backups as it is
stored on cloud the back up will be there and the updation is done automatic on cloud. The only
need of cloud is Internet access. With the Internet access the employees can access the
information or records at any time and at any place. A lot of time is being saved due to use of
this technology in the business and also it is also a cost-efficient .The security that is been
offered by cloud is also excellent.
As stated by Sepasgozar and Davis, (2014), the another digital technology that can be used by
companies is mobile phones, e-mails,laptops ,video conferencing etc. With these type of
technology the employees will be able to stay connected to business even after office hours. By
making use of video-conferencing the customers can interact or have conversation with
customers or other employees who are sitting in different countries. On a global platform
business can be done. For the owners and employees cell phones have become small business
necessities. In a timely manner these devices are lifelines for staying in touch and also the
enquiries of customers can also be answered. The other advance in communication are email,
text messaging and social networking sites through which the customer base will stay connected
to business and within the company the internal communication can be improved.
As per Smeda,Dakich and Sharda, (2014), the innovation and product growth is driven due to
use of artificial intelligence and big data analytics. By making use of digital technology in the
business the companies can predict like and dislikes of the customers. Based on this the product
and services will be give to them. Also by making use of social websites the promotion of the
products and services can be done by the companies. They can also predict the preference of
customers regarding the products that is been provided by the company. So, in a way a better and
innovative product will be manufactured by small business (Impact of small business on SME,
2017.).
The issues that is faced in implementation of digital technology SME technologies
The implementation of cloud-computing store will help the SME to securely store data on
the cloud. The backup will be there if there is any fire, theft as the data will be stored on the
cloud. On the other hand as stated by Olatunji,( 2015), the implementation of this technology for
the SME will be costly as it is a small organization and also it will require adequate resources for
implementation of these technologies. By using this technology the company can also develop
innovative and creative products. As per Quinton and Simkin, (2017) , in order to maintain
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security at workplace SME can also make use smart security system but it will not fit under the
budget of the company. In order to give advertisements about business the company can make
use of internet marketing it is also not so costly and will be under the budget of the SME. By
making use of artificial intelligence and Internet of things the frauds or wrong practices that is
taking place in the business can be reduced. And also no time will be wasted to investigate
manually. But for SME the cost will be an issues as the budget of these business is small. But
they can make use of social medial sites, advertisements, cloud storage etc in order to reach out
to more number of customers.
Reason for selecting this project
The reasons are many due to which this research is being carried out. The main reason rebind
selection of this project is the interest in this field. My personal interests is there in this area as it
will help me to understand the impact of digital technologies on SME. The certain skills are
being needed in order to carry out this research efficiently. Related with research I will be able to
develop skills and will be able to understand the types of methodology that are there. In case if I
will be working in SME organization such as Nisa this research will help me to make use
digital technology effectively. I will be able to know about what all technologies can be used in
the business and how the business will be able to expand and grow its business. I will be aware
about how the promotions can be done by the company at much lower price and time. All the
essentials skills that will be ended to expand the business will be developed from this research.
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Activities and timescales
Activity In 1st
week
In
2nd
week
In 3rd
week
In
4th
Wee
k
In 5th
Week
In 6th
Week
In 7th
Week
In
8th
Wee
k
In 9th
Week
In
10th
Wee
k
The topic
of
research
was
found
In this
the
literature
review
was
conducte
d
The
methodol
ogy was
drafted
The
proposal
was
finished
Question
s was
deigned
and
research
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was
piloted
The
research
was
carried
out and
recorded
The data
was
analysed
and
graphs
were
plotted
The
discussio
n was
done and
findings .
The
report
was
edited
and
complete
d
7

Research approach and methodologies
In a systematic manner this will allow us to conduct a research. In order to conduct this
research the different methods and techniques are been used. In depth knowledge about the topic
that is impact of digital technology on SME can be gained from this.
The following are the research methods that are used .They are as follows-:
Research approach – This will help to pay attention on the aims and objective that is been set by
the researcher. They can be of to types that is inductive and deductive. With a hypothesise a
deductive approach begins usually. The attention on casualty is been payed by deductive
approach. However in inductive approach the research questions are been sued in order to broad
the scope of the study. With the qualitative research the inductive research is associated.
This research which is been done will make use of inductive research as it pay attention
on models and theories which is in context with topic of research. With the deep understanding
about the research topic can be gained (Matt, Hess and Benlian, 2015).
Research philosophy – By making use of this proper investigation on the topic of research can be
done. They are also of two types. The quantifiable methods are been used in positivist
research .However in interpretivist the human qualitative methods are preferred.
In this research that is been conducted the interpretivist research will be used as it is
based on qualitative research and in this research the qualitative research will be done.
Research deign – For the research it is been considered as the blue print. The descriptive
exploratory and experimental are the three types of research design. In the explorable the focus is
to gain ideas and insight understanding. The frequency with which something takes place is been
determined in descriptive .The casual research is quantitative in nature. In between the variables
the cause and effect is been explained by casual research .In order to pay attention on the theories
in context with aims and objective the researcher will make use of descriptive designs. Also the
in depth understanding on this topic can also be gained from this.
Data collection – In this by using the different types of sources the data can be collected. The
two data collection methods are primary and secondary data collection. At source the data is
being gathered by primary data collection. From the first hand sources this type of data is being
gathered. In the secondary data collection by someone other than the suer the data is being
gathered. The books, magazines , internet etc are some of the sources of secondary data.
8

Both primary ad secondary data collection methods are being used in this reach. By
making use of questionnaire the primary research is bee done in this report. And in order to
conduct secondary research the books, online sources, journals, internet etc are been used.
Data analysis - The information that is been gathered need to have an appropriate analysis so
that the result can be concluded (Westerman, Bonnet and McAfee, 2014). The data cane be
analysed in two ways .They are qualitative and quantitative data analysis. The understanding of
the underlying reasons, opinions and motivations can be gained through qualitative research
which is a exploratory research. In order to develop ideas or hypotheses for potential quantitative
research it gives insight into the problem. By the way of making use of numerical data
quantitative research quantify the problem. In order to form facts and uncover patters the
quantitative research make use of measurable data.
In this research that is been done on the topic impact of digital technology on business
activities the qualitative research will be done as in depth need to be gained on this topic. In this
the thematic style will be used .In order to present the information in the form of tables, graphs
etc this will be useful. Within data these will be focused on themes in thematic data analysis.
Sampling – The analysis of the complete population is not possible so the sample is being
selected in order to conduct the research .The questionnaire was made and it was then distributed
in this sample that was selected. The sample was selected randomly and the sample of 20
managers of SME organization was taken in order to do this research (Fitzgerald and Welch,
2014).
Ethical consideration- The confidentiality was maintained during this research that was done. No
information to another person is been disclosed. The data privacy was maintained and the data
that was being collected was stored securely. For this the data encryption-decryption methods
was used. During this research no physical harm or in context to subject is been caused
(Fichman, Dos Santos and Zheng, 2014.).
Data collection and analysis
Questionnaire
Name : _________
Age :____
Gender :_________
Contact number: ____
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Email address :________
1. Do you think that SME can expand their business due to use of digital technology
 Strongly agree
 Disagree
 Neither agree nor disagree
 Agree
 Strongly disagree
2. According to you which is the most used digital technology in the business today?
 Cloud-computing
 Video conferencing
 Social websites
 Artificial intelligence
3. Do you agree that flexibility is been provided in the company by making use of cloud-
storage ?
 Strongly agree
 Disagree
 Neither agree nor disagree
 Agree
 Strongly disagree
4. Do you agree that the likes and dislikes of the customers can be found out by making
use of social websites such as Facebook, twitter and you tube?
 Strongly agree
 Disagree
 Neither agree nor disagree
 Agree
 Strongly disagree
5. Do you think in order to predict the behavior of customers and target new market
businesses are making use of digital technology such as artificial intelligence?
 Yes
 No
6. According to you which is the best way among to interact with clients or customers that
10

are sitting in other countries
 Mobile phones
 Video-conferencing
 Electronic mail
7. Do you agree that a lot of time and cost is been saved of the companies by doing
promotion of their products and services through online advertisement, internet
marketing
 Yes
 No
8. Do you think more security to the business can be provided through use of digital
technology
 Yes
 No
9. Do agree that digital technology such as cloud-computing, mobile phones are the good
way of staying touch with business even after office hours?
 Strongly agree
 Disagree
 Neither agree nor disagree
 Agree
 Strongly disagree
10. Do you agree new segments of market can be targeted by using digital technology such
as advertisements, social media such as Facebook, Twitter etc?
 Strongly agree
 Disagree
 Neither agree nor disagree
 Agree
 Strongly disagree
Theme 1: The SME managers thinks that business can be expanded due to sue of digital
technologies in business operations.
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Do you think that SME can expand their
business due to use of digital technology?
Frequency
Strongly agree
Disagree
Neither agree nor disagree
Agree
Strongly disagree
10
1
3
5
1
Interpretation – In this most of the SME mangers think that business can be expanded and grow
if the digital technology is used in it. They also think that with this they can find out new
opportunities for their business and their small business and become big one day. The number of
managers who thought that business will not expand due to use these technology are less in
number.
12

Theme 2:The most used digital technology that is been used today in business is cloud-
computing
According to you which is the most used
digital technology in the business today?
Frequency
Cloud-computing
Video conferencing
Social websites
Artificial intelligence
7
4
5
4
Interpretation – The number of managers who think that most used digital technology in
business today is cloud computing are about 7. They think with use of cloud-computing a lot of
change in operation in the business have been brought as automatic updation is there in cloud
and also the backup is also maintained. The managers also though that social websites are also
used in business more in comparison with video conferencing and artificial intelligence. This is
due to the reason that they are less costly and also the time to use them is also less.
13

Theme 3:The flexibility in the work is been proved dye to sue of cloud-computing in the
business.
Do you agree that flexibility is been provided
in the company by making use of cloud-storage
?
Frequency
Strongly agree
Disagree
Neither agree nor disagree
Agree
Strongly disagree
12
1
1
5
1
Interpretation The number of mangers who thought that more flexibility can be provided to the
employees and customers through cloud-computing are 12.However the number of managers
who though flexibility to employees is not been provided are less in number. With use of cloud-
computing the employees can access the information and data at any time and at any place the
only requirement or need of cloud-computing is internet access. With good internet connection
the data can be accessed.
14

Theme 4:The SME mangers think that likes and dislikes of customers can be found through
social websites
Do you agree that the likes and dislikes of the
customers can be found out by making use of
social websites such as Facebook, twitter and
you tube?
Frequency
Strongly agree
Disagree
Neither agree nor disagree
Agree
Strongly disagree
8
2
4
5
1
Interpretation – The 8 SME mangers thought that with usage of social medial sites such as
Facebook, twitter and you tube the likes and dislikes of customers can be discovered .the
company only need to make a page on the sites and by that the number of likes that is been made
by customers. The company can find out whether this is liked by customers or not. The company
15

can also increase its customers by making them aware about the products and service that is been
given by them. The customers will click on like button if they like the product and can follow
the page of the company. The number of mangers who thinks that likes and dislikes cannot be
found through these sites are less.
16

Theme 5:The behaviour of customers and their preference can be predicted by using artificial
intelligence
Do you think in order to predict the behavior of
customers and target new market businesses
are making use of digital technology such as
artificial intelligence?
Frequency
Yes
No
15
5
Interpretation - About 15 SME mangers said yes that artificial intelligence can predict the
behaviour of customers. Through social media sites that is been sued by customers the products e
behaviour can be predicted by them. Based on this behaviour the companies can develop
innovative and new markets will targeted by them. This is the way of bringing innovation in the
business as per the need of customers the services and products will be given to them. The
number of managers who said no are less .
17

Theme 6: The best way to interact or connect with customers or clients that are sitting in other
countries is video conferencing
According to you which is the best way among
to interact with clients or customers that are
sitting in other countries?
Frequency
Mobile phones
Video-conferencing
Electronic mail
6
10
4
Interpretation – As per the mangers the best way to interact with clients for meetings and for
other work is video conferencing. About 10 managers thought that with use of video
conferencing they are able to study the body language of clients and with this they can predict
whether they are interested or not. A lot of things can be made clear if the people can see each
other in meeting. The ideas and view pints can be explained more accurately with this use of
technology in the workplace. However some manager thought mobile phones can also be used
but better impact can be there due to video conferencing
Theme 7: A much of the time and cost of the companies are being saved by conducting
promotions through online websites, advertisements etc.
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Do you agree that a lot of time and cost is been
saved of the companies by doing promotion of
their products and services through online
advertisement, internet marketing
Frequency
Yes
No
18
2
Interpretation – The 18 managers that are working in the SME thought that most affordable and
easiest way of doing promotion of the products is online websites and advertisement. The time
that is been taken in conducting this is also less and also not much money also not needed. For
the SME companies this is one of the best way as their budget is not so high and also with they
can earn profit also.
Theme 8:The more security to business is been given through use of digital technology such as as
Cloud-computing
Do you think more security to the business can Frequency
19

be provided through use of digital technology
Yes
No
17
3
Interpretation – The managers thought that more security to business is been provided due to
sue of digital technologies such as cloud-computing. All the information about the business can
be stored safely on the cloud without any issue (Veit and Spann, 2014. ). The safety to the
business is been given. Without authorization no user can access the information .Only the
authentic user who have the rights to access can access that information on the cloud.
Theme 9:The mangers think that even after office hours the employees can be remain in touch by
using mobile phone, cloud-storage.
Do agree that digital technology such as cloud-
computing, mobile phones are the good way of
Frequency
20

staying touch with business even after office
hours?
Strongly agree
Disagree
Neither agree nor disagree
Agree
Strongly disagree
11
1
3
4
1
Interpretation – The mangers strongly believe that even after office hours the employees can
stay in touch with use of digital technology (Leeflang and Freundt, 2014.). They can access the
resources of business, talk to each other about meetings, discuss the things etc by using these
technologies. The efficient connection is being there due to use of these technologies in the
business.
Theme 10: The new segments or new markets can be targeted by using social media, internet
marketing etc.
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Do you agree new segments of market can be
targeted by using digital technology such as
advertisements, social media such as
Facebook, Twitter etc?
Frequency
Strongly agree
Disagree
Neither agree nor disagree
Agree
Strongly disagree
9
2
5
3
1
Interpretation – About 9 managers strongly believe that the new market can be targeted due to
use of advertisement, social media in the business as they will come to know the like s of
customers and based on that products will be made and the new market will started .So, it is a
good way of growing the business on a bigger platform. In the growth of business advertisements
22

and online media sites plays an essential role. The number of mangers who disagree with this are
less .
Effectiveness of research findings
By the answers that is been given by the managers of SME organization it can be
discovered that more mangers prefer the use of digital technology at workplace. With this
research the organization will be aware about what all digital technologies that can be used in the
business and their efficiency (Bharadwaj and Venkatraman, 2013). The use of mobile phones in
the business helps to connect with clients that are in different countries. In this research the data
is been gathered by conducting primary research in which to 20 managers the questionnaires
were distributed randomly. In this research the opinion of 20 managers regarding impact of
digital technology at their workplace was presented.
Alternative methodologies of reach and lessons learnt from results
In this research primary research was conducted. The another alternative methods that
can be used in this place is secondary research. The Internet, journals, news paper etc are some
of the sources of secondary research. In comparison, with primary reach the secondary research
is cheaper and also the time that is been taken to do this research is less. The qualitative data is
being collected in this. Other than this the other alternative way is quantitative data collection.
On fix data pattern the data can be gathered (Laudon and Laudon, 2015.).
CONCLUSION
Thus summing up the above report it can be concluded that a research was conducted on
the topic impact of digital technology on activities of business of SME. In this research the
questionnaire were made and situated among 20 mangers randomly. It was found that a lot of
change in the business can be brought from these digital technology such as cloud computing,
mobile phones, artificial intelligence etc. With the SME will be able to establish itself and can
expand their customer base across world.
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REFERENCES
Books and journals
Foroudi, P., and et.al., 2017. Digital technology and marketing management capability:
achieving growth in SMEs. Qualitative Market Research: An International Journal.
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Hernandez, and et.al.,2016. The Impact of Digital Technology on Economic Growth and
Productivity, and its Implications for Employment and Equality: An Evidence
Review (No. IDS Evidence Report; 207). IDS.
Jones, R., Alford, P. and Wolfenden, S., 2015. Entrepreneurial marketing in the digital age: A
study of the SME tourism industry.
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The Impact in Enterprises’ Performance. In Proceedings of 11th Annual MIBES
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Hernandez, and et.al.,2016. The Impact of Digital Technology on Economic Growth and
Productivity, and its Implications for Employment and Equality: An Evidence
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