Business Research: Digital Technology's Impact on SMEs in the UK

This research project investigates the impact of digital technology on Small and Medium Enterprises (SMEs), specifically focusing on Softwire Solutions Ltd, a UK-based IT company. The project begins with a proposal outlining the research aims, objectives, and a literature review exploring the concept of digital technology in SMEs, its importance for business regulation, and its application in the context of Softwire. The research aims to analyze the implications of digital technology on Softwire's functions, assess its impact, and recommend strategies for improved operations management. The report presents findings from primary research, including data analysis of survey responses on the positive impacts of digital technology, the use of social media, and the benefits gained by firms through digital implementation. The analysis highlights the positive effects of digital technology on SME growth, the utilization of social media for promotion, and the benefits of implementing digital technology in business operations. It also addresses the challenges and implications of digital technology, offering recommendations for Softwire Solutions to optimize its use of technology and improve its business functions. The project concludes with a discussion of research outcomes, effectiveness of methods applied and alternative methods that could have been used.

RESEARCH PROJECT

TABLE OF CONTENTS
RESEARCH TOPIC- The effect of digital technology on Small medium enterprise ...................1
TASK 1............................................................................................................................................1
PROPOSAL FOR RESEARCH .....................................................................................................1
Introduction ...........................................................................................................................1
Research aims and Objectives ...............................................................................................2
Literature Review...................................................................................................................2
Activities and Timescales.......................................................................................................6
Research methodology...........................................................................................................8
TASK 2............................................................................................................................................9
Primary and secondary research methodology.......................................................................9
Data analysis ........................................................................................................................12
TASK 3..........................................................................................................................................15
Research outcomes in appropriate manner ........................................................................15
TASK 6..........................................................................................................................................25
Effectiveness of research methods applied for meeting objectives of business research project.
..............................................................................................................................................25
Alternative research methods and lessons learnt in the view of outcomes.........................26
REFERENCES..............................................................................................................................27

RESEARCH TOPIC- The Implication of Digital technology On
Softwire Solutions Ltd, UK.
TASK 1
PROPOSAL FOR RESEARCH
Introduction
SMEs are considered as those business enterprises that usually regulate their business
operations at domestic and national level with an aim to maximize the profitability. In the UK,
these small and medium sized enterprises have achieved a wide growth as they focused towards
continuous innovation. Small and medium sized enterprise that has embraced digital technology
has shown faster growth than companies that have not according to new research. Application of
new and unique technologies in business have made it easier for companies to perform their
functions in an appropriate manner. There are important functions that have been performed by
owners and entrepreneurs of small and medium sized enterprises such as production, marketing,
finance, administration, distribution and storage. Digital technologies have made it easier for
these enterprises to perform these functions within specific duration and also, to reduce their cost
The various development have taken place In context of engineering. It is crucial to ensure that
they should utilize technology in order to provide high quality services to customers.
There are various digital technologies such as cloud computing, connectivity, DBMS,
social media, E- commerce and other important software that have been used by SMEs to
improve their functions. Implementation of these technologies has increased various
opportunities for business to attract customers and attain high growth in market. Further, main
objective of organisation is to increase profitability and the set goals can be easily achieved by
facilitating innovation and improving business functions by using digital technologies. Current
investigation is based on analysing important of digital technology in context of supporting
small business enterprise in facilitating innovation and fostering growth. . At organisation have
to face different problems. Employment of digital technology have optimistic and destructive
impacts on business. The sofwire organisation has been selected for the present study. Company
operates business in IT sector as well as firm offers bespoke software service, digital design
solutions and consultancy service to some top leading UK brands. Company’s aim is to build the
best possible environment to produce outstanding software. Softwire analyses the requirement
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of their clients and resolves their issues for creating brand recognition in market. However, there
are some challenges which are faced by company due to which revenue and growth of firm gets
negatively affected.
Research aims and Objectives
Research aim
“To analyse the implication of digital technology on functions of small medium
enterprise- A survey on Softwire Solutions Ltd, UK.”
Research Objectives
 To understand the conception of digital technology in accordance with SMEs
 To analyse significance of digital technology in context of regulating small business
enterprise
 To analyse the application of digital technology in functions of Softwire
 To ascertain implications of digital technology on functions at Softwire To recommend and suggest strategies for improving application of digital technologies
for operations management at Softwire
Research Rationale
Rationale behind carrying out this research project is to achieve knowledge and
experience of different functions performed by small medium enterprise for regulation of
business. This topic for investigation is selected to gather detail facts about various form of
digital technologies used by companies for improvement of functions and business operations.
Research Questions
 What is the conception of digital technology in accordance with SMEs?
 What is significance of digital technology for regulating SMEs?
 How digital technologies are applied in functions at Softwire?
 What are the implications of digital technology on functions of Softwire?
Literature Review
Concept of digital technology in accordance with SMEs
According to Tang and et.al, (2017), digital technologies are various applications and
software which are developed and used for performing business activities and function by
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companies. Application of these technologies has improved the efficiency and enabled
entrepreneur to establish business operations and focus on innovating products and services. In
the UK, 99% of private sector companies are SMEs and they have achieved almost 49% of
growth in revenues. This has become possible for them after application of these technologies in
enterprise. The different business functions which are carried out for management of business
along with maximizing profitability.
Foroudi and et.al, (2017) describes that digital technologies is mainly applied by SMEs to
perform marketing function as it provides support in getting customer’s attention for products
and services. Different communication channels such as social media, internet and direct mails
are technologies which are used by companies for marketing of products among target
customers. Further, SMEs are also known in market as continuously innovating enterprises as
they provide focus on making changes in products and service for attracting customers.
Implementation of digital technology has made it possible for them to carry out innovation and
transform products at low risk.
Importance of digital technology for regulating small business enterprise.
According to Krishnan and Ravindran, (2017), efficiency of SMEs of enterprises in all
industries have increased after application of digital technologies. It has enable the company to
improve their processes and apply new method to perform functions. In IT sector, companies
have attained major support from these technologies in creating new software and provide
consultancy to their clients. Various technical application and systems are formulated by
companies to facilitate reliable and quality services to their clients. Clients of IT sector
enterprises are leading organisation which requires professional systems and software for
carrying business activities. This technology has made it possible for software development
companies to exceeding requirement of clients.
According to Quinton and et.al, 2017), digital technology also plays an important role in
increasing work efficiency of employees at workplace. This technology has enabled them to
attain skills and competencies required to performance different functions at workplace. Further,
digital technologies like Social media, digital advertisements and internet have facilitated
organisation to improve its functions and adopt new ideas for developing products and services.
Through this, organisation has become able to provide information and attract clients towards
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new services. In UK, SMEs have achieved high growth in revenues and profitability after
application of new technologies in business, according to research. However, it can be said that
digital technology have major importance among small business enterprise.
Application of digital technologies in functions of Softwire.
As per view of Jin and Hurd, 2018), for marketing of products and service among
customer company usually focus on using different types of technologies through which they
can attract their target customers. Social media application and internet is used by company for
communicating with their clients in different countries. Wide presence of people on social
media have improved promotion of business in market. In IT sector, cloud computing
technology is utilized by companies to store and secure data of their clients. They also provide
cloud computing software for their clients for protecting their data from any kinds of damages
and maintaining security.
In order to meet requirement of clients, SMEs continuous make innovation in service by
making conducting research on internet and using other technologies.
According to Bouwman and et.al, (2018), companies provide focus on hiring qualified employee
which have experience of using these technologies and provide support in performing functions
appropriately. Qualified professional helps in adopting new technologies and also resolve
problems that occurs in management of operations. On contrary to this Tang and et.al, (2017),
stated that SMEs are less efficient in implementation and using digital technologies because they
have less number of efficient employees and does not have potential to pay high salaries to
experts. They usually perform their functions by using traditional methods.
Implications of digital technology on functions at Softwire
According to Foroudi and et.al, (2017), Sources internet and media channels have
provide positive impact on business of organisation by generating various opportunities to attract
new and retaining previous customers. Gathering information about customers through digital
technologies have also enabled to organisation to develop new and transform their existing
products and service. This aids the organisation in attaining customers loyalty and recognition in
market. these new technologies have enabled the HR manager to transform recruitment and helps
in hiring qualified employees at workplace. SME always aims to earn high profitability in
market by increasing sale of products and service and reducing operating. By implementing this
technology, requirement of employees in organisation have been decreased which has reduced
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labour cost of organisation in market. By using these technologies, IT sector enterprises has
achieved major support in generating new idea and concept for improvement in their software
and quality of services. Improvement in products and service have increase their number of
clients in overseas nations.
In contrast Krishnan and Ravindran, (2017), technology have increased profitability of
SME undoubtedly but also raised some issues like high maintenance cost, resistance of
employees, requirement of expertise and competition. These issues will tend to create negative
influence on company's growth and profitability in market. Implementation of new technology in
enterprise such as Social media has reduced requirement of marketers for company and
increased conflicts with employees. However, these kinds of issues needs to resolved by
management by taking effective measures and should implement digital technologies in their
business.
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Activities and Timescales
Activities Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8
Choice of
topic for
investigat
ion
Establish
ment of
of aim
and
objectives
Literatur
e review
Collectio
n of
Informati
on
Analysis
of
informati
oon
Drawing
conclusio
n
Changes
in
research
report on
the basis
of
suggestio
6

ns
Final
submissio
n of the
research
report
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Research methodology
For executing investigation, it is essential for researcher to utilize appropriate and
relevant research method which helps in collecting of data and achievement of objectives,
Research methodologies are analysed as qualitative and quantitative tools as well techniques
which are applied researchers for carry out study and achievement of relevant outcomes. Below
given are important research methods and approach that will be used by scholar in this research
such as:
Research Philosophy
This usually implies to the belief on the ways utilized by scholar for collection,
measurement and analysis for achievement of relevant outcomes (Robson and McCartan, 2016).
There are four types of research philosophy such as Pragmatism, positivism, interpretivism and
realism etc. Interpretivism philosophy will be used by scholar in this research project to analyse
of implication of digital technology on business operations. It is based on naturalistic approach
of data collection by using interview and observation.
Research Design
It is considered as overall strategy which researcher will select for integration of various
element of survey in coherent manner. It is used to ensure that research problems will be
addressed by appropriately (Silverman, 2016). There are various kinds of research design such as
descriptive and conclusive research design. In this project, research will use descriptive design
which cane be explained as a statement of affairs because they are at present with scholar having
no control over variable. It helps the scholar in addressing research problem appropriately.
Research Approach
It has been considered as plan or procedure which involves various important steps of
broad assumptions to the elaborate know-how of information accumulation, logical thinking and
representation. There are three kinds of research approach such as inductive, deductive and
abductive research approach (Ledford and Gast, 2018). For completion of this project,
investigator will utilize inductive research approach which start with the observation and
theories which are proposed towards the end of research process as the outcomes of observation.
This research approach is appropriate as it does involved hypothesis and it helps in testing
assumptions.
Research strategy
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A strategy of research is analysed as step by step action plan which provides direction to
the assumption and efforts of scholar(Humphries, 2017). The two kinds of research type such as
Quantitative and Qualitative research strategy. In this project, Scholar will utilize both research
plan of action because it helps in collection, measurement and analysis of both primary and
secondary data in appropriate manner.
Sampling
It is analysed as process which used in applied mathematics in which few people are
selected as a participants in research (Boyd, 2017). Sampling has been classified in two
categories which involve various techniques such as probabilistic and Non probabilistic. In this,
Simple random sampling will be used by research for taking sample size from target population
such as employees of Softwire. In this method, each member in population gets a chance for
being a part of sampling. 30 employee of Softwire from different departments will be selected as
sample size.
Data collection
It implies to methods used for gathering data from different sources in order to
accomplish the project and achievement of relevant outcomes. Usually there are two method
for data collection such as primary and secondary (Fletcher, 2017). In this, scholar will utilize
both the methods because it helps in making research more reliable and getting relevant
outcomes.
Data analysis
This implies to the process which is used by scholar for transformation of gathering data
in to useful information which clearly determines the outcomes of research. The 2
methodology which can be utilised for analysing the information such as qualitative and
quantitative methods of data collection (Bilau, Witt nd Lill, 2018). In this research, Scholar will
utilize thematic analysis method for analysis of data using relevant charts and diagram. It is
used because graphical representation of data will help scholar in determination of research
outcomes to users in appropriate manner.
TASK 2
Primary and secondary research methodology
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Research design
In the proposed study there has been selection of adequate research types. Researchers
has approached towards selecting investigating research design which insists over antialiasing
the issues in the market and present their fruitful ideas and thought to reduce the impacts of such
obstacles. Techniques are make for addressing the issues as well as suggesting the suitable ways
for reducing their impacts over operational activities (Ledford and Gast, 2018). Moreover,
ascertainment of such issues will be helpful to the professionals as per determining market needs
and making effective changes accordingly.
Research approach
It consists of influences from two kinds of research approaches such as indicative and
deductive. Here, scholars has selected indicative research technique which will be effective and
attainable to professionals as per meeting needs in market. It suits their qualitative investigation
over the impacts of digitalisation in small businesses (Boyd, 2017). Consisting the framework of
this research study is based on generalizing the theoretical influences in performing the research
study. Moreover, it will be assistive methods in consideration with addressing issues as well as
making effective analysis over the market. Theories will be based on bringing the adequate
solutions to the research issues.
Research philosophy
Consideration of two philosophies which will be adequate addressing for the business
performance as well as appropriate management of the operations. It includes interpretvitism
research philosophies and positivism. Thus, on which researchers have selected Interpretvitism
research philosophy which will be adequate as well as suitable for effective management of
operations (Bilau, Witt and Lill, 2018). Moreover, considering this research technique which will
be helpful in addressing positive and negative impacts of digitalisation over entity. Assessment
of appropriate information will have positive influences over business activities as well as
management of operational activities in terms of addressing requirements in prominent way.
Sampling
Implication of a sampling technique will address and helps in determining the adequate
survey requirement in the operations. Therefore, there has been selection of simple random
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