Impact of Digital Technology on Small Business: Unit 6 Project

This project examines the impact of digital technology on small business growth and innovation, using Regency Cafe as a case study. The project begins by establishing aims and objectives, followed by the creation of a project management plan, work breakdown structure, and Gantt chart. It then delves into small-scale research, employing both quantitative and qualitative methods to gather data from employees and managers. The research findings are analyzed using suitable tools and techniques, leading to recommendations for Regency Cafe. The project also includes a reflection on the value of undertaking the project to meet its objectives, providing a comprehensive overview of the digital technology's influence on small business operations, efficiency, and customer relations. The project covers topics like cloud computing, social media usage, and risk management.

UNIT 6: MANAGING SUCCESSFUL BUSINESS

UNIT 6: MANAGING SUCCESSFUL BUSINESS
Table of Contents
Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1: Devise project aims and objectives for a chosen scenario.....................................................3
P2: Produce a project management plan .....................................................................................4
P3: Produce a work breakdown structure and Gantt char............................................................6
TASK 2............................................................................................................................................8
P4: Carry out small-scale research by applying quantitative and qualitative research ..............8
TASK 3..........................................................................................................................................12
P5: Analysis of the research and data by using suitable tools and techniques..........................12
P6: Communicating the appropriate recommendations in the research to reach to valid
conclusions ................................................................................................................................14
TASK 4..........................................................................................................................................15
P7: Reflecting on the value of undertaking of the project to meet the objectives ....................15
REFERENCES..............................................................................................................................17
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INTRODUCTION
In this competitive world every business is trying to gain competitive advantage and achieve
profitability. In order to manage the business in a successful way the business need to have
proper planning and management system for organising the work system (Mir and Pinnington,
2014). The present topic is based on the impact of digital technology in supporting small
business growth and innovation. The study will be undertaking the medium business named
Regency Cafe in UK which does not have more than 150 employees and the annual turnover is
not exceeding more than 5 million per annum (REGENCY CAFE LONDON. 2017). The chosen
organisation will prepare a project report based on the topic given. It will give an opportunity to
illustrate the skills that is required for managing and implementing a research project. Hence, the
present study will undertake an independent research and carry out a business project that has
appropriate aims and objectives.
TASK 1
P1: Devise project aims and objectives for a chosen scenario
Over the last decade the use of digital technology has changed business models and transformed
business activities effectively. The usage of digital technology is increasing day by day giving
the business a new path to grow and innovate. Besides, the emergence of digital technology and
its usage has given the business to gain opportunity through which the business enterprise has
gained many market opportunities (Kerzner, 2013). Apart from that, it has enabled the business
to sale the products and services among large number of customers to become profitable and
innovate new products according to the expectations of customers. For example, it helps business
to administrate the operation effectively with the use of cloud technology. Moreover, the usage
of social media and mobile technology also help the business enterprises to connect with large
number communicate (Larson and Gray, 2013). This enables to build relationship and
communicate with the customers to know their feedback regarding the services.
Therefore, the project aims are showing the influence of digital technology in Regency cafe for
the business growth and expansion.
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The objectives of the research project are stated below:
 To understand the role played by digital technology within Regency Cafe
 To assess proper planning for implementing digital technology within the organisation
 To identify the requirement of Regency Cafe
 To identify the challenging situations that are faced by Regency Cafe while implementing
digital technology
 To recommend suitable strategies for solving the challenging situations
P2: Produce a project management plan
In order to implement digital technology in Regency Cafe, the management need to focus on
various factors that is required at the time of planning. These factors include cost of project,
quality, time required, and communication system with various stakeholders and risk that can
come across.
The cost is calculated below:
Particulars Amount
Setting up the system £ 250,000.00
Repairs £35,000.00
Maintenance £15,000.00
Operational cost £ 2,000.00
Labour cost £ 15,000.00
Total cost incurred in setting up the digital
system
£ 3,17,000.00
Table 2.1: Cost required for the completion of Research project
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Scope: The scope of this research project is to understand the effectiveness of digital technology
to make growth. Implementing cloud computing within Regency Cafe has helped them to
enhance the security system. They are able to store data in safe way without misleading any
discrepancy. This has helped the company to connect with large number of customers within a
particular period. Besides, with the use of social media and creating own profile on social media
page has helped Regency cafe to attract customers and get connected with the loyal customers.
Besides, it has enabled in improving communication with the customers and has allowed the
business to stay connected by building relationship with the customers. Apart from that, the
internet system has helped in connecting and integrating the business system throughout the
management structure. Besides, the big data analytics are giving the business better scope to
innovate new services and make business growth (Nicholas and Steyn, 2017).
Time: For the completion of project Regency cafe takes 8 months in order to get suitable
research outcome. The reason behind the duration of time taken is to implement digital
technology like cloud computing within the organisation successfully. Besides, the changes that
are bought down within the workplace are new for the employees who are already associated
hence; they need to be trained properly to handle the systems. By improving their working skills
the company can improve performance and reduce conflicts situations. Moreover, the employees
will be liable enough to handle the challenging situation that comes across after implementing
new technologies. It is advantageous for the stakeholders as they can carry out their work process
effectively (Phillips, 2013).
Quality: It is essential for Regency cafe to look after the quality of the system and the work
process that is carried out with digital technology. Hence, it is necessary to create a team of
project management by selecting skilled employees who can handle the system and maintain
effective customer relationship management. Apart from the planning, the management needs to
have adequate knowledge to work with cloud computing and maintain records in an effective
manner. This will able the organisation to focus on the quality while assessing data and
information (Schwalbe, 2015).
Communication: Communication is the most vital factor that the organisation needs to carry out
effectively. While implanting the new system within the organisation, the company need to make
sure that the relevant information is passed among the group of employees. Communication is
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the best way to remove misunderstanding between the groups of employees. The management
needs to make sure that proper feedbacks are taken from the staffs to understand the problems
faced by them while assessing digital technology (Heizer, 2016). This will help in solving the
problem effectively.
Risk: Cloud computing has number of disadvantages which the organisation might face while
working with it. Therefore, the management need to look after the problems and train the staffs
to assess the risk beforehand. Regency Cafe needs to select efficient stakeholders who access the
database for enhancing security. To keep the business away from risk the systems need to be
updated with modern security system (Laudon and Laudon, 2016).
Resources: While carrying out the project the management need to make sure that they are
having adequate number of resources. These can be financial resources, human resources,
technological resources and other necessary resources to implement digital technology within the
workplace. Proper planning should be done to use the resources effectively. Besides, effective
operational management need to there to reduce cost of production. By hiring IT professionals,
the organisation can bring quality in their work process (Choi et al. 2017).
P3: Produce a work breakdown structure and Gantt char
Activities 1st
Month
2nd
Month
3rd
Month
4th
Month
5th
Month
6th
Month
7th
Month
8th
Mont
h
Planning the
resources
Developing
effective
project team
Developing
budget
Assessing and
analysing risk
Communicatin
g with the
employees
Hire External
Support for
business
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progress
Setting up
machineries
Creating
accessing
system
Selecting
potential
stakeholders
Training the
staffs
Working stage
Table 3.1: Gantt chart
(Source: Self-Created)
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TASK 2
P4: Carry out small-scale research by applying quantitative and qualitative
research
In the present research project, regency cafe uses primary data collection method for collecting
raw data from the population. Besides, secondary data is also used for getting knowledge
regarding the existing information on the topic. The primary data are analysed by using
qualitative and quantitative data analysis method. The employees working within the company
are selected by quantitative data analysis and the managers are undertaken for qualitative data.
The employees are selected by using probability sampling method whereas, managers are chosen
by using non-probability sampling method. Regency Cafe has selected 50 employees by using
random sampling technique. Besides, 2 managers are selected by using purposive sampling
technique. For conducting quantitative research questioners are set for the employees where the
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questions are close ended whereas, for the manager’s interview are conducted by asking open
ended questions.
While collecting data from the respondents the management consultant made sure Data
Protection Act is followed where the information collected from the Regency cafe were only
used for business purpose. The data was protected under this act so that it is stored properly and
misplacement of data does not take place (Sekaran and Bougie, 2016). The research was reliable
as each data is different from one another as the view point of the respondents was varying from
one another. The research is valid as the questions asked to the respondents were signifying the
research topic and research objectives.
Quantitative Analysis:
Q1: How far digital technologies like cloud computing has helped in effective filing and
storage?
Options Total number of
respondents
No. of response Percentage of
respondents
Strongly Agree 50 30 60%
Agree 50 10 20%
Neutral 50 5 10%
Disagree 50 3 6%
Strongly Disagree 50 2 4%
Table 4.1: Effectiveness of cloud computing in filing and storing data
Figure 4.1: Effectiveness of cloud computing in filing and storing data
Q2: How far the use of social media has helped to share information and connect with large
number of people?
Options Total number of
respondents
No. of response Percentage of
respondents
Strongly Agree 50 25 50%
Agree 50 15 30%
Neutral 50 5 10%
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Disagree 50 3 6%
Strongly Disagree 50 2 4%
Table 4.2: Usage of social media in sharing information and attracting customers
Figure 4.2: Usage of social media in sharing information and attracting customers
Q3: How far do you agree that digital technology like cloud computing has reduced the
chance of data hacking?
Options Total number of
respondents
No. of response Percentage of
respondents
Strongly Agree 50 25 50%
Agree 50 10 20%
Neutral 50 8 16%
Disagree 50 4 8%
Strongly Disagree 50 3 6%
Table 4.3: Effectiveness of cloud computing in reducing the chance of hacking
Figure 4.3: Effectiveness of cloud computing in reducing the chance of hacking
Q4: How far cloud computing can help in increasing business performance and productivity?
Options Total number of
respondents
No. of response Percentage of
respondents
Strongly Agree 50 30 60%
Agree 50 10 20%
Neutral 50 5 10%
Disagree 50 3 6%
Strongly Disagree 50 2 4%
Table 4.4: Cloud computing increasing business performance and productivity
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Figure 4.4: Cloud computing increasing business performance and productivity
Q5: How far artificial intelligence and big data analytics has helped in maintaining security?
Options Total number of
respondents
No. of response Percentage of
respondents
Strongly Agree 50 25 50%
Agree 50 15 30%
Neutral 50 10 20%
Disagree 50 2 4%
Strongly Disagree 50 3 6%
Table 4.5: Artificial intelligence and big data analytics has helped in maintaining security
Figure 4.5: Artificial intelligence and big data analytics has helped in maintaining security
Qualitative Analysis:
Q1: How digital technology has helped in improving business performance?
Manager 1: “It has helped Regency Cafe in storing data and maintains security in financial and
operational process”.
Manager 2: “We are benefited in connecting with large number of customers and connect with
loyal customers through social media page”.
Q2: What are the issues faced while implementing digital technology within the organisation?
Manager 1: “We were facing problem in handling the technology”
Manager 2: “Many employees were not cooperating with us for the changes”
Q3: What are the suitable ways to overcome the challenges?
Manager 1: “Proper training need to be given to the existing employees”
Manager 2: “Proper assessments need to be done after training the staffs and in case of any data
loss another backup system need to be kept”
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TASK 3
P5: Analysis of the research and data by using suitable tools and techniques
The study has chosen employment of questionnaires in the researches that has included the
survey among the employees as well as the interview among the managers in the organization. A
critical analysis has been done in the research in order to reach to the expected outcome that is
aimed during the formation of the research aims and objectives.
While conducting the survey there were a total of 50 respondents that were included in the
survey. Among the 50 respondents about 60% has strongly agreed to the situations that states
that the cloud computing technologies have been effectively implemented in the organization
that is Regency Cafe. On the other hand, about 4% of the total respondents have strongly
disagreed to the statement. 10% of the respondents in the organization have been found to remain
neutral in this stature.
On the question of usage of social media for information sharing in the organization about 50%
that is the half of the total strength of the respondents in the research has agreed with the strong
influence of the social media in the functioning of the organization. Therefore, the positive
effects within the information sharing have been considered in this stature by most of the
employees. While 10% of the respondents remained neutral to the question among 4% of them
has strongly opposed the statement by disagreeing to it.
On the question of reduction on the possibility of the data hacking though the usage of the digital
technology it has been found in the survey that most of the respondents as much as 50% of them
have strongly agreed to the fact that is presently prevailing in the organization. About 6% of the
employees have strongly disagreed to the same along with about 16% of them being neutral.
The functioning of the cloud computing and its incorporation in different companies have found
it highly implacable in the functioning. The effective implementation of the same has been
considered to be one that has improved the functioning of the respective organization. However,
about 60% of the respondents have taken the situation to be positive in case of Regency Cafe.
6% of the respondents have found the implementation of the could computing in the organization
not relying to the increase in their performance and productivity.
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