Research Project: Digital Technology Impact on SME's Business Activity

This research project investigates the impact of Information Communication Technology (ICT) on Small and Medium Enterprises (SMEs), with a specific focus on Softwire. The project begins with a research proposal outlining the aim, objectives, and research questions, followed by a literature review that assesses the importance of ICT, analyzes factors driving innovation, and explores the use of ICT in Softwire's operations. The project also examines the approaches to primary and secondary research, considering cost, access, and ethical issues. Furthermore, the project delves into factors driving innovation, prominent use of ICT, and provides recommendations for effective measures by ICT that tend to bring innovation. The study highlights how ICT enhances efficiency, customer engagement, and global connectivity, ultimately contributing to business growth and competitiveness. The research emphasizes the importance of strategic ICT implementation and its role in adapting to the digital economy.

Research Project

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
P1 Research Proposal ............................................................................................................3
Aim.........................................................................................................................................3
Objectives: .............................................................................................................................3
Literature review....................................................................................................................4
P2 Approaches to primary and secondary research considering cost, access and ethical issues 8
LO 2.................................................................................................................................................8
P 3 Primary and secondary research that consider costs, access and ethical issues...............8
Appropriate plan and procedure for agreed research specification.....................................11
P 4 Appropriate analytical tools...........................................................................................12
L O 3..............................................................................................................................................21
P 5 Covered in PPT..............................................................................................................21
L O 4..............................................................................................................................................21
P 6 Reflection.......................................................................................................................21
P 7 Alternative Research methodologies..............................................................................22
REFERENCES..............................................................................................................................24
APPENDIX....................................................................................................................................26

TITLE: “The impact of digital technology on business activity of SME’s”
INTRODUCTION
Digital technology has opened avenues for Small businesses. Innovation is a process which
can be extracted from knowledge through creating, diffusing and transforming of data in order to
improve products, processes, strategies and capabilities of firm. SME can make wide use of
digital technology through smartphones, internet and social media. Nowadays, companies like
Softwire are using Information Communication Technology (ICT) for attaining success in
competitiveness, innovation and growth. The complete research is based on importance, factors
and use of ICT by Softwire (Cavalaro and et.al., 2015). It has opened new markets by enabling
firm to enter in global digital supply chains.
P1 Research Proposal
Aim
“To analyse the impact of Information communication technology (ICT) on SME- A case study
on Softwire”.
Objectives:
 To assess the importance of Information Communication Technology.
 To analyse the factors that drive innovation in the business.
 To know the prominent use of ICT in bringing innovation by Softwire.
 To recommend effective measures by ICT that tends to bring innovation in functions of
Softwire.
Research Questions
 Why Information Communication Technology is important in today's world?
 What factors are essential for managing innovation in business world?
 What is the use of ICT in bringing innovation by Softwire?
Background/Overview of the study
Digitalization is an opportunity that helps the firm in improving customer experience,
loyalty and also drives business outcomes like efficiency, revenue, growth and innovation. In
recent years, digital technology has implemented various software applications for SMEs. In this
research, there is significance of ICT which play a vital role in providing competitive advantage

to SMEs like Softwire. It uses ICT for various purposes like it enables business process
productivity and efficiency. It facilitates worldwide connectivity of customers by generating and
delivering products and services on global scale (Finotello and Di Camillo, 2015).
ICT helps in rapid advancement that is liberalisation, globalisation and greater
dependency on knowledge. It is can be considered as important source of economic growth of
Softwire and other SMEs. Production and processes are related to digital innovation and in
current scenario SME aim on more usage of increase in market differentiation and client value.
Information Communication Technology is one of the most common technologies used by firm
across the globe. Use of ICT by companies can be seen inevitable. They must realise that
businesses and economy are moving towards a new configuration world of digital information
and knowledge based (Gehman and et.al., 2017). Therefore, ICT is considered as effective for
fulfilling numerous business demands like operational, marketing and strategic. Combination of
these demands led to the use of ICT.
Rationale
Information Communication Technology is selected for the research project in order to find
out the importance of ICT to SMEs. From professional point of view, it can be stated that there is
a huge impact of digital technology on SMEs. It results in improving efficiency of workforces
and productivity by accelerating workflow that leads to profit margins. This research is
concerned about identifying the impact on how and to which extent ICT can improve
performance and competitiveness of evolving SMEs in various countries. Further, it seeks to
analyse the factors and measures which it can take for better innovation in Softwire. ICT helps in
increasing profitability, market value, market share no matter whatever the size and location of
firm is.
This report will also help in determining digital performance of Softwire. ICT creates
customer engagement and helps in creating various approaches in innovative ways. Thus, in
professional context ICT carries different challenges and opportunities like cost savings,
operational efficiency and is rapidly changing face of business performance in dynamic world
(Graue, 2015). This research would place Softwire in broader global business framework in
order to contrast and compare their innovativeness, growth and competitiveness.
Literature review
To assess the importance of Information Communication Technology

As per the point of Brynjolfsson and Kahin, (2014), digital technology increase significant
advantages with different apps and available technology. In this regard, use of new age
technologies develop successfully over traditional business processes. As a result, it builds
scalable process of innovation, optimization and growth. There are several activities considered
in digital technology implementation offer productive support which integrate to make sure
appropriate support system. On the other hand, Cavalaro and et.al., (2015) stated that digital
technology build value to communicate openly with employees that consider organisational
benefits in new process and motivated for the change. It assists to build trust to collect and
address feedback in appropriate manner. Hence, direct value highlighted with advance
technology.
According to Martinez-Conesa and et.al., (2017) Information Communication Technology
has shaped the lives and brought rapid evolution in business world. It can be considered as new
science of collecting, storing, processing and transmitting information in which technology and
information and telecommunications are converging. ICT covers areas like point-of scale
systems, simple telephone, internet and other credit card facilities. It focuses on technological
perspectives, management and organisation.
However, Helbig, Gil-García and Ferro, (2018) stated that softwire adopted it for
technological point of view. SMEs plays a crucial role in sustaining regional and economic
growth that alleviates various challenges in developing countries. Softwire participate in the
economy of UK to compete and thrive for future. Adoption of ICT influences business decisions
and directions of companies. ICT plays a crucial role in the current knowledge economy
Henwood, (2014). Small companies must take complete advantage in order to improve their
competitive edge in the market. It is coordinated with production of goods, services and
functionality of the business.
As per the view of McCusker and Gunaydin, (2015, it can be stated that Softwire use ICT to
communicate with the outside world and express the usage of among various companies. On the
other hand, there is emphasis on the strategic approach to ICT by SMEs and structures and
capabilities of them. ICT is both technological and socio-economic. It helps in maintaining right
budget and helps in attaining goals of Softwire.
To analyse the factors that drive innovation in the business.

Berzin, Singer and Chan, (2015) explored their views that finance is one of the major
perspective which contains appropriate financial information to make decisions. As compared to
this, return on investment from innovation efforts are forecast in accurate manner. Strategy also
undertaken which prepare path to make success and it mapped based on formal expertise. Beside
this, Glaser, (2017) generated their views that management leaders usually experienced and
knowledgable which related with problems and issues that can be arise to dealt in systematic
manner. In innovation, challenges also occurs so that products and services must be develop to
lead with unique proposition with emotional stakes for daily fluctuations.
According to Muñoz and Keane, (2018), there are various factors due to which adoption of
ICT has become common in SMEs. ICT helps in global connectivity due to which there is
integration of business process such as outsourcing and value chain to drive income growth. It
enables business process effectiveness and productivity which leads to reduction in operational
cost by minimizing costs of material, transaction costs and procurement. This moreover leads to
decrease in prices for finished goods. Value of output is improved with the help of better
information.
On the other hand Borowitz, (2018) explored that it provides opportunities for business
transformation to conducts them anywhere in the world. It helps in providing potential benefits
to SMEs in order to make itt more effective, efficient and competitive. ICT increases reach and
in terms of collaboration, communication and organising transactions internally with end
customers, distributors and suppliers in order to participate in the digital economy. According to
Oun and Bach, (2014), ICT helps to grow and become more innovative. It has significant impact
on SMEs because it is essential for the growth and survival of economies of the world. It must
have ability to become more imperative for businesses to become stable in international markets
and dynamically respond to the changing world.
To know the prominent use of ICT in bringing innovation by Softwire.
As per the views of Arts, van der Wa and Adams, (2015), innovation is ambiguous in which
desired level of results will be accomplish to pursue right idea at right time. It means that
innovations requires greater perspective within ongoing business activities. Hence, resilience and
energy persist in the work to develop results. High profile innovations efforts made in the
organisation that are highly visible to watch closely.

According to the Sidel, Bleibaum and Tao, (2018), main use of ICT is to change the way
business operates in this era of globalisation. Its use has enhanced productivity in small scale
sector, increased customer participation and modified mass customization by reducing costs. It
offers broad range of possibilities to improve competitiveness. It offers mechanism through
which Softwire can access into new market opportunities and customized information services
like continuous training, distance learning, new advisory and many more. Real-time information
can be exchanged on daily basis and relationships can be built with customers and suppliers to
increase their sales. As per the view of Stuckey, (2015), it can be stated that digital technology
could not reap business growth except it is managed to business strategy. It means that right
technology should be used at right time to improve business performance and to sustainability. It
also helps in improving communication which boost the capability to exchange information,
market share and customer relationships. Another major use of ICT in Softwire is obtaining great
efficiency in business transactions due to accurate and fast processing of information. Companies
are much more capable to exploit potential information provided by ICT and could manage
innovative practices such as customer relationship management, supply chain management more
efficiently.
To recommend effective measures by ICT that tends to bring innovation through Softwire
According to Svenman and Runnemalm, (2017), ICT can take measures to improve business
in SMEs by improving by performance and customer satisfaction. Today's businesses are
customer focused and customer oriented therefore companies can invest in ICT to improve
communication. There are various number of devices that integral to external as well as internal
communications. Therefore, mobile phones, laptops could be used within ICT. Many companies
have developed cloud based solutions to underline activities so that it should be completed
manually. Training should be provided to staff so that they can deal with customers whenever
required. There should be resource management in order to restructure the work. As per the view
of Wang, Chiou and Müller, (2016), communication strategies and tactics should be organised so
that things could become faster. They would also become reliable. Increased use high-tech
communication facilities have encouraged the use of 'The cloud' as communication process.
Thus, ICT could improve more so that Softwire could increase its collaboration and improve its
customer service in order to respond quickly and effectively.

P2 Approaches to primary and secondary research considering cost, access and ethical issues
In order to collect primary and secondary data, appropriate cost, access and ethical issues
must be consider to find valid and appropriate conclusion. Cost: With respect to conduct present research, there is around £560 require
accomplishing aim and objectives. This cost helps to determine desired results which
would be beneficial to gain right and useful information. It helps to estimate appropriate
cost which can be done through assess technological advancement (Smith, 2015). Access: Researcher also face issue to collect appropriate data and information in primary
and secondary methods. As primary data, access requires of participants to resolve
problems in effective manner. Beside this, investigator also face issue to use journal
article which is restricted in the whole program. It need to be maintained confidentiality
to collect information (Brinkmann, 2014).
 Ethical issue: In the research, researcher need to concentrate on finding appropriate
information which not harm any person. As a result, it is important to maintain privacy of
respondent's personal information in effective manner. Hence, it assists to implement
valid conclusion.
LO 2
P 3 Primary and secondary research that consider costs, access and ethical issues
Research Methodology
Research Approach:
Research approach can be described as collection of information that can be further analysed
and interpreted. In this approach two categories are there i.e. inductive and deductive. Inductive
method is preferred because it provides the overall description of the project work. Present
research contains data collection from qualitative information so that it is associated with
inductive approach. It is included with many observations of nature and goal to find few and
powerful statement where nature work. Apart from this, inductive research approach has been
taken because it assists to work with more specific observation to broader and generalisation
theories. Researcher develops the empirical generalisation and recognizes preliminary

relationships as he/she progresses in the research work (Carlsson and et.al, 2015). It provides the
broad concept of the project work. It starts with the aim of searching powerful opinions and if the
idea conflicts these statements then it can be further changed. In this research Inductive method
will be used.
Research Design
Research design can be considered the quality of data gathered and its analysis that is done
in different ways. Each and every form of research design has its own purpose and need. There
are three types of research designs i.e. explanatory, descriptive and exploratory. In this research
descriptive method is used because it explains importance, measures and benefits of the complete
project (Gehman and et.al., 2017). It helps to determine the significance of research findings.
Exploratory method is not used because the topic is not so unique and is ICT has become
significant in today's era.
Research Philosophy
Research philosophy can be described as the proper understanding of source, nature and
growth of knowledge. Data is firstly gathered, analysed and then used for further research
purpose. It is used to obtain different opinions relevant to main aim of the research. This can be
classified into interpretivism and positivism. Here, interpretivism is used to because it provides
easy access to know the reality through social elements like consciousness, instruments,
language and shared meanings (Oun and Bach, 2014). This can be considered as a naturalistic
approach which is fully dependent on interviews and observations.
Research Limitation
Research limitation is related to time and cost. There is budgeting for each activity and work
must be performed within time frame else it becomes a constraint for research work. Project
should never face over budgeting. Other limitations include flawless implementation of data
collection methods, aim and objectives of research can be narrowed in order to increase the
study, quality of the work and good communication skill. Sample size collected must not be too
small because it create problems and inaccuracy and quality of the work.
Data Collection
Data collection is a method of collecting valuable information from relevant sources so that
answers can be evaluated easily (Sousa, 2014). This can be categorised into two forms: primary
and secondary method. This research work aim at primary method which is further sub divided

into quantitative and qualitative methods. Qualitative method is more preferable that includes
interviews, focus groups while quantitative is statistical in nature. In qualitative research
methodology, detailed presented with respective module so that in the present research survey
conducted to gain specific type of data. It is also emphasized to measure objective and based on
personal overview.
Data analysis
Data analysis is the process which inspecting, cleansing, transforming and modelling data to
accomplish goal of discovering useful information. In this regard, informing conclusion and
supporting decision-making ascertained to gain desired results. Present research based on
qualitative data collection and information so that thematic analysis has been taken by
researcher.
Sampling
In sample process, a subset from large segment of population is taken. This project considers
a sample of 20 employees out of a population of 58 employees. Population or target population
is a study population is a complete number of people that have same characteristics, same
specializations or other characteristics that are shared by all the individuals, Sample is a subset
of the population that are most representative for the entire population. It is a process in which
there is already a predetermined set of observation from large amount of population. In sampling
purposive method is applied
Cost, Access & ethical issues
Increase in time would definitely increase cost of the work thereby fluctuate the overall budget.
Thus, there things should be properly managed so that its reliability could be assured and is
information is reliable then it has to be valid ( (Wang, Chiou and Müller, 2016). While, doing
research work researcher should bear in mind that all types of ethical considerations should be
advised. Participants should not harm to anybody while doing their work. Their respect and
dignity should be considered. Prior to study entire consent must be obtained (Stuckey, 2015).
Privacy of the research participants should be there during research work. Sufficient level of
confidentiality should be maintained while performing the work. There should not be any kind of
leakage of information related to the information. Communication among all of them should be
there with honesty and transparency..

Appropriate plan and procedure for agreed research specification
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Introduction
for the research
Literature
Review
Gathering
secondary data
Data analyzing
Research Design
Research
Methodology
Developing
survey question
Gathering
customer's
reviews
Analysis of
primary and
secondary data
Conclusions and

Recommendatio
ns
Completion of
remaining work
Revise and draft
Final
Submission
P 4 Appropriate analytical tools
Data analysis
Questionnaire
Name:
Age:
Gender:
1. Since when you are using this website?
 1 year
 2 year
 More than 2 year
2. What benefits Softwire has experienced with ICT?
 Good customer relationship
 Increasing revenue
 Better competitiveness
3. Is your firm's webpage is integrated with your partner' database?
 Yes
 No
4. Does your company use internet to market its services?
 Yes
 No
5. Are you satisfied with the adoption of ICT in operations of Softwire?
 Highly Satisfied