Tesco's Business Transformation: Knowledge Management, Tech, eCommerce

This report analyzes how Tesco, a British multinational grocery and general merchandise retailer, leverages knowledge management, technology, and eCommerce to transform its business operations and maintain a competitive edge. The report explores Tesco's implementation of knowledge management frameworks, including the utilization of IT infrastructure and data mining, employee perception, and training programs. It details Tesco's adoption of technology through in-store digital initiatives, such as handheld scanners, self-checkout stations, and in-store video cameras. Furthermore, it examines Tesco's use of its Clubcard loyalty scheme, big data analytics, and smartphone-based technology to enhance customer experience, drive loyalty, and optimize supply chain management. The report also discusses Tesco's e-commerce strategies, including the shift in consumer purchasing habits, the introduction of 3-dimensional e-commerce experiences, and the integration of the Market portal model. It highlights Tesco's strong online presence, mobile sales growth, and the financial implications of these strategies, concluding that the integrated use of knowledge management, technology, and e-commerce is crucial for Tesco's continued success in the market.

Running head: KNOWLEDGE MANAGEMENT, TECHNOLOGY & E-COMMERCE
Knowledge Management, Technology and eCommerce
Name of the Student
Name of the University
Author’s Note

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1. Introduction
The business environment has become much more polarised as well as uncertain and this
is because in today’s world, the business leaders are experiencing different classical model of
competition. It is found that the traditional playbook for strategy is not much sufficient and
across all the business organization, competition is becoming much more complex as well as
dynamic. The organizations are taking the help of Knowledge Management, Technology and
eCommerce which will help the business in coming to the forefront.
In this paper, the benefits of Knowledge Management, Technology and eCommerce are
elaborated in order to showcase how they are helpful in transforming the operations of Tesco
which is one of the British multinational groceries as well as general merchandise retailer. In
addition to this, the paper also reflects how Tesco is using the concepts of Knowledge
Management, Technology and eCommerce to exists in the present competitive market.
2. Discussion
2.1 Knowledge Management, Technology and eCommerce
According to Abualoush et al. (2018), knowledge management is mainly defined as one
of the systematic managements within the organization’s knowledge assets for the proper
purpose of creating proper value and for meeting the tactical as well as strategic needs. It
generally consists of a number of initiatives, processes as well as strategies that generally sustain
as well as enhancing the storage, assessment, sharing as well as refinement. The concept of
knowledge management is utilized by the organization for improving the decision-making
procedure of the organization by properly accessing different types of knowledge within the

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entire organization. In addition to this, KM generally helps in enabling and encouraging sharing
of different types of ideas, collaboration as well as cess to the latest information.
On the other, it is stated by Bennett, Segerberg and Knupfer (2018) that technology
generally helps the business in maintaining proper data flow as well as managing different type
of contracts for maintaining the records of the employees. Technology generally helps the
business for operating quite effectively with very much minimal manpower for reducing the cost
of undertaking the entire business quite effectively. It is found that due to the utilization of
technology generally helps in streamlining the operating costs as well as helps in providing
access to different types of information as well as supplies (Hitt & Tambe, 2016). Furthermore,
technology generally helps the business in understanding the need of the cash flow for properly
preserving the resources including time as well as physical space. It is found that different types
of warehouse inventory technologies generally let the business owners for understanding the
ways for successfully managing the storage cost for holding a particular product. With the help
of proper technology, it is found that executives can be able to save both time and money by
properly holding meetings over the internet.
It is opined by Akter and Wamba (2016), the prevalence of e-commerce generally helps
the organization in growing and there is no sign of slowing down. It is found that the
organizations generally help the organization for reducing the cost in order to create proper
process in order to manage the paper-based information by successfully digitizing the
information effectively. In addition to this, e-business helps in providing proper opportunity for
reach a greater number of customers (Rahayu & Day, 2015). Moreover, availability is found to
be another important benefit of e-commerce website and it helps in providing a number of
opportunities to the different retailers in order to get proper feedback, testimonials as well as

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suggestions to the customers. Moreover, positive reviews help in creating a brand image on the
product for building trust in a greater number of customers. Lastly, creation as well as
management of proper online store is considered to be much more efficient when it is compared
with the physical store as it helps in optimizing the cost.
2.2 Ways in which Knowledge Management, Technology and eCommerce are transforming
the business operations of Tesco
Knowledge Management
According to Valmohammadi and Ahmadi (2015), suggesting one new knowledge
management method is generally dependent on the model of communication framework and it is
found that Tesco have proper IT infrastructure as well as data mining. The new knowledge
management-based framework mainly utilizes current method in order to justify the knowledge
effectively (Girard & Girard, 2015). This is considered to be quite important to justify the
knowledge effectively. In addition to this, the new KM mainly reflects on the employee’s
perception which is generally not exploited by other competitive retailers in UK. Therefore, it is
considered as one of the major competitive advantage for Tesco.
It is stated by Hislop, Bosua and Helms (2018) that Tesco mainly spreads explicit
knowledge to its various employees during the time of assembly line production analysis which
is considered as one of the monthly procedures which is followed by the company for each of its
employee. It generally needs to reflect a proper documentation by effectively explaining the
explicit knowledge that is mainly associated with the work that is done within a month (Nonaka
& Toyama, 2015). Moreover, the Tesco employees also explains different types of shortcomings
through the tasks that they performed so that they can leave an effective room for achieving

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proper performance within the business. Furthermore, Tesco generally works with the tacit
knowledge-based factor and it further helps in implementing it with the help of proper systematic
way. When Tesco hire new employees then they help in providing long-term training process to
them (Milton & Lambe, 2019).
Technology
According to Hitt and Tambe (2016), in order to improve the efficiency of the
organization’s operating model, Tesco has invented in-digital store initiatives. It is found that
scanning handheld devices as well as self-check-out stations are generally placed adjacent to
different checkout stations in order to provide the customers with proper technology for
performing the entire procedure of checkout without involving the employees of Tesco (Sibanda
& Ramrathan, 2017). From the operating model as well as business perspective, it is found that
this mainly helps in saving cost as very few numbers of employees are generally needed to
perform the manual checkout effectively. Additionally, the use of in-store video cameras helps in
detecting when the trays of vegetables and fruits are depleted and then a number of instant
messages are shared within the floor employees for proper and immediate replenishment.
It is stated by Yeh, Lee and Pai (2015) that the Tesco Clubcard loyalty scheme helps in
tagging a unique ID of the customer to each of the purchase which results in amalgamation of a
number of customers purchasing based data points. In addition to this, Tesco leverages a number
of big data analytics as well as algorithm for adopting with the supply chain as well as product
offering for different types of purchasing trends and for generating different types of
personalized online as well as offline discounts (Muslimin, Hadi & Nugroho, 2017). This
generally increases a number of opportunities of the entire business of Tesco which further helps

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in driving the customer lifetime value as well as loyalty with the help of repeat purchases due to
a number of personalized discounts.
It is opined by Sibanda and Ramrathan (2017) Tesco generally utilizes smartphone-based
technology for digitally innovating the in-store experience of the customers by equipping them
appropriate knowledge. The Tesco app helps in expanding its functionality for helping the
customers by helping them in locating the items within the stores and for replacing the handheld
devices with digital experience by using digital wallets. This further can create proper operating
model-based opportunity for minimizing the in-store based headcounts as well as costs.
Furthermore, Tesco generally has overcome a number of difficulties that the users generally face
due to the scanning barcodes by using proper innovative Toshiba technology that does not need
barcodes.
Moreover, it is found that Tesco have launched proper digital platform that is known as
IFTTT which is a service that helps in allowing the consumers for properly connecting with
different types of apps. The venture of the grocer on IFTTT generally stands for “If This Then
Than” which further helps in allowing the customers to effectively automating the shopping such
that if the price of the product generally changes below certain amount then it will be
automatically added within the online shopping market (Yeh, Lee and Pai, 2015) Moreover, the
online boss of Tesco generally wants the suppliers to play their part so that they can be able to
improve the online merchandising-based proposition by effectively considering video content as
well as a number of multiple images.
E-Commerce

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According to Rahayu and Day (2015), Tesco generally played an important role in
effectively changing the habits of purchase for the consumers. It is found that the consumers do
not need to visit the supermarkets for shopping as the website of the Tesco generally helps in
providing a number of product offerings in different categories. It is found that e-commerce has
generally revolutionized the entire mode of purchase for the consumers and this is further
helping in saving time such that the individuals generally helps in generating more value. It
further helps in strengthening the social infrastructure by properly brining proper improvement in
context to education, human resource as well as health.
It is stated by Kurnia et al. (2015) that Tesco has generally intended to launch proper 3-
dimensional e-commerce experience for helping the consumers for deriving more value from
proper online presence. They are generally focussing on the proper creation of the 3D store
which are generally considered possible due to presence of high speed of broadband. Users
generally need to enter 3D stores with the interface of smart television such that they can be able
to select the products of their choice from the virtual racks (Yeh, Lee & Pai, 2015). This
particular initiative that is taken by Tesco will generally be helpful in taking e-commerce to the
next level such that it has proper market potential.
Presently, Tesco generally utilizes proper interactive model that is known as the Market
portal model for all its e-commerce activities. This particular model generally helps in
integrating the buyers as well as suppliers’ side for entire conducting the business in a very much
efficient fashion. This particular model is also utilized by the leading retailers who have very
much high utility for inventory distribution as well as management (Shahjee, 2016). This
particular model helps in enabling the buyers for purchasing goods from the Tesco website. The
suppliers that generally have access to different types of restricted information about different

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types of purchase for undertaking a number of actions related with delivery as well as
distribution.
It is opined by Herzallah and Mukhtar (2015) that Tesco has one of the most popular
websites among the UK buyers as according to the latest surveyed. Tesco generally have
occupied around 66% of the total shopping that is undertaken in the market in the year 2006. As
per the latest survey that is conducted in UK, it is found that the consumers generally spent
around 6.4 billion in October 2012 which is considered to be a record rise as per the statistics of
the last year. In addition to this, it is found that mobile sales have generally increased that further
have leveraged with the mobile app that is mainly designed by Tesco. The different types of
financial implications reflect higher profitability as well as proper generation of revenue for the
leading retailer.
3. Conclusion
It can be concluded from the entire paper that utilization of knowledge management,
technology and e-commerce is helpful in keeping Tesco quite competitive in the market. The
operations of the organization generally get transformed as well as improved for catering
different types of changes within the global environment. It is found that the new KM mainly
reflects on the employee’s perception which is generally not exploited by other competitive
retailers in UK and that is considered to be one of the important competitive advantage.
Furthermore, Tesco generally helps in providing a number of product offerings in different
categories so that the customers can easily buy different types of product from online.
Additionally, Tesco utilizes a number of technologies which helps in providing a number of
opportunities to the customer.

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