The Impact of Digital Technology in SMEs: Ocado Retail Sector

This report investigates the impact of digital technology on Small and Medium Enterprises (SMEs) within the retail sector, utilizing Ocado as a comprehensive case study. The introduction highlights the increasing integration of digital tools in business operations, emphasizing the benefits for SMEs, such as enhanced efficiency, cost reduction, and improved product quality. The report establishes the aim to analyze the impact of digital technology on SMEs in the retail sector, with specific objectives focusing on evaluating digital tool usage, assessing digital marketing's importance, and understanding its implementation. The literature review delves into the competitive business landscape and the role of digital technology in fostering growth, covering digital marketing's definition, importance, and influence on consumer behavior. The research methodology encompasses the philosophy of realism, employing both qualitative and quantitative research designs, including exploratory methods. The report covers the use of different research approaches and methods. The report concludes with recommendations and reflections on the research process.

Research Project

Table of Contents
LO2..................................................................................................................................................3
P3 Conduct primary and secondary research...............................................................................3
P4 Apply appropriate tools and analyse research findings and data...........................................1
LO 3...............................................................................................................................................13
P5 Communicate research outcomes for intended audience.....................................................13
Covered in PPT..........................................................................................................................13
RECOMMENDATION AND CONCLUSION............................................................................13
LO 4...............................................................................................................................................14
P6 Reflect on research methods applied in research.................................................................14
P7 Alternative research methodologies.....................................................................................14
Conclusion.....................................................................................................................................15
REFERENCES..............................................................................................................................16

Title – To analyse the impact of digital technology in SME’s in retail sector. A case study
on Ocado.
LO2
P3 Conduct primary and secondary research
INTRODUCTION
In today’s era the use of internet and technology has provided a platform for business to
grow at large level. the integration of business operations with digital tools and equipment’s has
made it easy in performing functions (Jones, Chik and Hafner, 2015). Also, it has made the
complex task to be performed in easier way. The major advantage of using digital technologies
has been on small scale enterprises. It has enabled in carrying out activities in an effective
manner. Moreover, there is a significant impact on developing strategies and implementing them.
This is because it has allowed them to expand in different markets. Along side this, the cost of
production is decreased resulting in rise in profit margin. Furthermore, due to use of various
types of tools the quality of products has improved a well. Likewise, the different departments in
business are connected with each other and information is shared quickly and effectively. It has
benefited in smooth flow of operations and attaining goals in specified time frame.
Background
In such a competitive business environment it is very necessary for companies to sustain
for long term. The major impact due to frequent change in market conditions is on small and
medium size enterprises. It has affected on their growth and development. Thus, they are highly
using digital technologies to compete with big firms (Gelenbe and Caseau, 2015). By using it
they are developing unique products with some added benefits and providing high quality
services to attract more people. This has assisted in their growth and development. In addition to
this, it has become easy for them to share data and information related to business with other
small firms. Hence, it has helped in effective decision making.
Aim and objectives
Aim- To analyse the impact of digital technology in SME’s in retail sector. A case study on
Ocado.
Objectives
 To evaluate use of various digital tools in different departments
 To access importance of digital marketing in business

 To acknowledge the way through which digital marketing can be implemented
 To access how digital technology affects Ocado business
Research questions
 What is the use of digital tools in business?
 What are the ways through which digital technology can be implemented?
 How different digital tools and equipment’s are used in marketing?
 How digital technology affects Ocado business?
Significance of research
In order to conduct a research, there are several reasons. It is because it helps in finding
out what were the main goal of conducting research. The global economy is changing frequently.
It has highly affected the small and medium enterprises (Aldhafeeri, Palaiologou and
Folorunsho, 2016). They are finding it difficult to survive and expand in different markets. But
with the evolution of digital technology it has made it easy for them to enhance productivity. this
research will help in finding out how various tools and equipment’s are used by small firms in
digital marketing. Also, it will give insight on how efficiency of business has enhanced and what
measures are taken to minimise the impact. Moreover, scope of research is that it will guide other
firms to implement digital technology.
Limitations of study
The present research is conducted in wide area and in specific sector, therefore, it
becomes difficult to identify which sector has benefited from digital technology. Also, the size
and nature of SME varies in different sector so it becomes difficult to come to final conclusion.
LITERATURE REVIEW
The today’ s business world has become very competitive. Every company is trying to
conquer market by providing high quality product and services. this is because they want to
sustain for long term and compete with other. also, companies want to develop a strong and loyal
customer base by attracting a large number of people (Grant and Meadows, 2016). but in recent
time evolution of digital technology has provided vast opportunities for growth. it has led to
effectiveness in developing strategies and decision taking.
As said by Büyüközkan and Göçer, 2018, digital technology refers to use of
technological tools and equipment’s in various business operations. in an enterprise there are
different functions performed. The use of software and application has enhanced speed of

functions. Technology has enabled business to share confidential data and information. This has
assisted them to take effective decision. there has been a great advantage of using digital
marketing. It has made it simple for companies to advertise at very low cost. Moreover, they are
providing large number of offers to attract people.
Meaning of digital marketing
In today’s digitalization world, many types of innovation have occurred. These all has
benefited global economy and big firms to expand their operations. they are using various tools
and devices that has made activities to perform in better way. Digital marketing has transformed
the way of advertising goods. It has helped business to use different social networking sites for
promotion. Digital marketing refers to use of tools and devices in advertising. It can be done in
different ways like content, video, etc. this has changed the market trend.
Importance of digital marketing
In a study it was said by Dodgson and et.al., 2015, that there are different departments
such as HR, finance, operations, etc. in organization. It enables business to operate at attain its
goals and objectives. The tools have helped in enhancing speed of different operations. the use of
cloud computing has enabled storing and sharing of data and information in segregated way.
Moreover, with this it has become easy for business to take decisions by accessing that
information. Similarly, in marketing it has helped in promoting goods through various social
media sources. The way of marketing has transformed from traditional to digital. As elucidated
by Imison and et.al., 2016, all types of information related to products and services are available
on social media. With this it has become easy for business to attract large number of people.
Furthermore, the cost of advertising has decreased (Impact of Digital Marketing on Business.
2018). By using networking site like Facebook, Instagram, etc. they are able to provide services
to people. Moreover, business evaluate people reviews and according make changes in product.
It has brought change in buying trend of customers. apart from this, companies are able to
identify change in taste and preference of people and develop strategies accordingly.
Henriette, Feki and Boughzala, 2015, said that another role of digital technology in
business is it has provided a centralized platform to communicate with each other. The
employees are able to interact and share information with management via emails. They are able
to access information from outside business as well. Also, stakeholders are involved in decision
making process. So, with it decision are taken quickly. in retail sector there is stiff competition in

market. Moreover, big firms have created strong exit and entry barriers. Businesses have
developed KPI and metrics through which evaluation of strategies are done. It has benefited in
finding out weak points and improving it.
Influence of buying behavior
The buying behavior of people is been influenced to great extent. This is because of
availability of lot of information on internet and variety of products and services offered by
company. As elucidated by Müller and et.al., 2016, it is very important for business to identify
buying behavior of people. It is because people switch from one company to another frequently.
This is done to opt for best one at cheap rate. now, people search about goods on internet and are
attracted towards high quality products offered at low prices.
In the opinion of Rice and et.al., 2016, there has been a great impact on buying behavior
of people due to digital marketing. This is because it has given them a platform to search and
collect data and information from various sources. Then, they compare it with other companies
so that best one is chosen. other than this, they are able to identify change in market trends. In a
study Lai and Hong, 2015, said that business is now focusing on customer touch points. It is a
state where they are able to continue their shopping experience from where they are left off. In
context to this, the integration of digital marketing with data analytics has enabled in analyzing
data so that needs can be identified. Also, it has supported in taking effective decision and
developing strategies. through this, they track activities of user and response time. there are
many third party companies that provide various types of digital marketing services like SEO,
PPC, etc. thus, with help of it promotion of goods has become easy. There are certain tools
through which data analytics is done. With this performance of tool in interacting with customers
can be identified. Here, data analysis is done to find change in trends. The business is able to
evaluate performance of tools utilised. Also, they determine weak and strong points of customer
interaction. It shows how much time people have visited their ads on website or social media.
In the view of Gelenbe and Caseau, 2015, there are many other factors that influence
people buying behavior. they communicate with each other to collect data about specific product.
Also, comparison is done on basis of quality, worth, offers, etc. it results in changing their
decision. Furthermore, due to change in taste and preference of people they force business to
modify product or improve its quality. Also, with enhancement in quality of life of people, they

are demanding more high quality products to fulfil their needs. It has led in rise in living standard
of society as well.
RESEARCH APPROACH AND METHODOLOGY
RESEARCH PHILOSOPHY
Research philosophy describes the ways in which knowledge data for the research can be
gathered and evaluated so that it can be used for research purpose. There are various types of
research philosophies such as positivism, pragmatism, realism and interpretivism. According to
philosophy of pragmatism only those concepts are considered as relevant which are supported by
suitable actions. On the other hand, the positivism research philosophy gives priority to only
science and scientific facts for determining the truth (Dodgson and et.al., 2015). It makes it less
suitable for this project report. Another popularly known philosophy is interpretivism in which
qualitative analysis is preferred over quantitative so that human interests can be integrated into
the research practice. It interprets various elements of the study to access reality. This research
project will use the philosophy of realism which is based on the principle that knowledge can be
enhanced and developed by scientific approaches only and reality is completely independent
from the human psychology.
RESEARCH DESIGN
These designing approaches focus on preferences made by the researches for data
analysis and collection. This project will use both qualitative and quantitative methods for
designing purpose. Exploratory research design explores the different aspects associated with the
topic while conclusive research designs are used to reach a final conclusion. The report has
extensively used exploratory research design so that better understanding for the research area
can be developed. This type of research forms as the basis for future conclusive area of research.
It also helps to analyse the emerging problems which can emerge due to application of digital
technologies. This design approach helps researchers to explore the questions defined in the
proposal which demands for more detailed analysis and evaluation.
RESEARCH APPROACH
These are defined as the various procedures for conducting research. These approaches
range from executing stages like assumptions to methods of collecting data, samples and their
interpretation. On a broad level mainly three types of approaches can be used such as deductive,
inductive and abductive approach. In deductive approach hypothesis are developed on the basis

of existing theories. Contrary to deductive concept in case of inductive approach observations are
analysed and these observations are used to concluded and propose theories. Abductive approach
is also one of the popular research approach.
The empirical data analysed from inductive approach cannot necessarily builds theory.
To address this weakness abductive approach can be used in which surprising facts are
considered in the beginning so that their suitable explanation can be provided through research
process. In this project inductive approach has been selected for the research objectives because
instead of working on hypothesis this reasoning style consider the experiences and resemblances
for making conclusions. When this approach is used to evaluate the actual impact of digital
techniques on SMEs then, it gives more realistic outputs.
DATA COLLECTION METHODS
In order to answer the proposed questions of research various types of data are collected.
Data collection methods are classified into two categories namely primary and secondary. The
data which has been published in journals, books and online portals previously is known as
secondary data. The use of secondary data enhances the reliability and validity of research
project. On the other hand, the primary data collection methods are divided into qualitative and
quantitative collection methods (Imison and et.al., 2016). The research project has used both
types of primary data. The quantitative data can be obtained questionnaires with applications of
mathematical statistical tools like regression, median, mean and mode. Along with this numerical
data qualitative data is also used in the report which does not consist of mathematical
calculations. This type of data usually consists of feelings and emotions as well as the qualities
which can be considered as the non-quantifiable.
SAMPLING
The research can be conducted by choosing samples which can be used for the purpose of
study. It is difficult to work with the large population which is targeted in the research and thus
statistical sampling techniques are used for collecting samples from huge population. The
accurate methods and sampling strategies gives more efficient and valid research outputs. It can
also make the research manageable and cost effective. Since the report has used primary data
collection technique sampling can be used in either probabilistic or non probabilistic way. In non
probabilistic approach members are selected randomly and thus every individual does not have
chance to participate in research.

On the other hand, in case of probabilistic sampling cluster sampling methods are used so
that every participant of population gets fair chance to become part of the research. In this
research project non probabilistic sampling is used and 20 employees of Ocado were chosen
randomly. The random selection of samples makes the research very effective if all subjects
actively participate in the research.
ETHICS
The research study must ensure that ethical considerations are not neglected. This project
has considered all ethical aspects to make its outputs more valid and effective. During research it
was assured that none of the participant was harmed and their dignity was maintained during
process. The samples had key concerns of their privacy and confidentiality. These attributes are
also protected during the research. Prior to study the consent was taken from all the participants
so that they do not become uncomfortable and accurate conclusions can be developed. The
communications during research were made with honesty and clarity. A transparent attitude and
conversation assured that primary data collected is not biased.
The sample populations must not be given misleading information regarding scope and
purpose of the research. Even if there are any conflicts regarding funds, theories or any other
aspect then it is also informed to samples. In this project there were no such conflicts were
identified. During the entire research the participants have right to withdraw from the project at
any instant and during every stage of project discriminatory or offensive language and behaviour
must be avoided.
Cost – This is the most important element. Here, funds are required to conduct research. For
present research total cost required is 950 Euros
Access – In this researcher must have the access for collecting and analysing data. For present
study researcher will follow a systematic way for this. It will help in getting specific and precise
results.
Time- it is also a factor that can affect the research. The researcher must develop timescale so
that activities are completed on time. If there is any delay in conducting research it will affect
result. Also, with increase in time, cost will rise as well.

P4 Apply appropriate tools and analyse research findings and data
Activities and Time scale
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DATA COLLECTION AND ANALYSIS
In order to analyze the role of digital technologies in business operations, a research is
conducted. For this a questionnaire is developed to collect data and interpret it to get specific
outcomes. Moreover, data analysis should be done in effective way so that aims and objectives
are attained. In order to gather data, researcher has design a questionnaire that is as follows:-
Questionnaire
Name:
Contact number:
Email:
1) Is your enterprise using digital technology in business operations?
 Yes
 No
 Not Sure
2) In which department there are several digital tools and equipment’s implemented?
 Finance
 Marketing
 HR
 Operation
 SCM
3) Whether there is increase in efficiency of business operation due to implementation of tools?
2

 Yes
 No
 Not Sure
4) what is the impact of digital technology on productivity of enterprise?
 Positive
 Negative
 Neither positive nor negative
5) is use of digital marketing benefited Ocado in attracting more people?
 Yes
 No
 Not Sure
6) Has company able to identify needs of people through digital marketing?
 Yes
 No
 Not Sure
7) Is problems and issues of customers solved in effective way?
 Yes
 No
 Not Sure
8) Does digital marketing has helped in retaining customer by satisfying them?
 Yes
 No
 Not Sure
9) Is Ocado using any data analytics tool to collect and analyse data?
 Yes
 No
 Not Sure
10) By using digital marketing platform company is able to promote their products and services
in more effective way?
 Yes
 No
3