Digital Transformation: Group Reflective Report for TCS Analysis

This report, focused on the digital transformation of TCS, a Pakistani courier service, analyzes the company's current challenges and proposes strategic solutions. It begins with an introduction to the digital challenge, outlining TCS's vision and mission. The report then delves into the roles of key personnel like the CEO and Account Executive Manager, highlighting their responsibilities in driving digital change. It assesses the company's current state using the Self-Assessment Framework and Porter's Five Forces, identifying areas for improvement. The report proposes a digital transformation plan, including the use of drone delivery services, and justifies its recommendations. The report also includes an analysis of digital technology devices, gap analysis, and concludes with a discussion of future prospects for TCS. Figures and tables are used to support the analysis, offering insights into market trends and the potential impact of digital initiatives. The report emphasizes the importance of adapting to the digital era to maintain a competitive edge and enhance customer satisfaction.

U31220- Digital Transformation (Group Reflective Report)

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Contents
List of figures ............................................................................................................................................................................................. iii
Lists of Table ............................................................................................................................................................................................. iv
Introduction to the digital challenge ........................................................................................................................................................... 1
Vision/ mission of the company ................................................................................................................................................................. 1
Role 1: Chief Executive officer .................................................................................................................................................................. 2
Role 2: Account executive manager ........................................................................................................................................................... 6
Digital technology devices used by TCs ................................................................................................................................................. 7
Role 3: ....................................................................................................................................................................................................... 10
Role 4: ....................................................................................................................................................................................................... 10
SAF Assessment ................................................................................................................................................................................... 11
The Digital Transformation Plan .......................................................................................................................................................... 13
Justifying the digital transformation plan ............................................................................................................................................. 14
Conclusion ................................................................................................................................................................................................ 15
References ................................................................................................................................................................................................. 16

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List of figures
Figure 1: Porter Five Forces ....................................................................................................................................................................... 5
Figure 2: Digital Transformation Plan Achievement................................................................................................................................ 14
Figure 3: AI Trends in Logistics ............................................................................................................................................................... 14
Figure 4: Autonomous Delivery Robots Market ...................................................................................................................................... 14

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Lists of Table
Table 1: DIGITAL TRANSFORMATION CANVAS ............................................................................................................................... 9
Table 2: Self-Assessment Framework ...................................................................................................................................................... 12

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Introduction to the digital challenge
The abbreviation for TCS is TRAZUM COMPANIES AND SERVICES. The courier company TCS ("A Tranzum Enterprise") has its
headquarters in Pakistan and serves the nation's entirety. Since its humble beginnings in 1983, the brand has become a global powerhouse
with more than 2,000 outlets in Pakistan. Additionally, the firm operates a cargo-only airline at several Pakistani airports.
After nearly three decades in business, the TCS name has been synonymous with trust and trustworthiness. With over 6 million monthly
pickups and deliveries, TCS provides domestic and international express services to individuals, companies, small and medium-sized
businesses, and families. TCS's mission is to provide you with the most acceptable level of service and dependability in the business by
employing over 6,000 people across its network of 430 Express Centers, dedicated charter planes, 2000 online and offline locations, and
over 225 satellite-tracked delivery vans. TCS's business partners in Dubai and London give its customers access to more than 3,500
destinations through TCS. As TCS's business model has evolved, it has achieved several significant milestones. Customers are TCS'
driving force, and the Pakistani courier service's desire to be a market leader has always driven it (Akhtar, 2020). As a result, the express
courier sector now has guidelines to help raise the overall quality and consistency of the service.
Currently, TCS is addressing the following issue:
"Orders continue to be misplaced, and drivers remain disoriented due to TCS's products and services, causing logistical issues for drivers.
The addressing system of Pakistan was well-established, but no government created a postal code system. This impacted TCS's logistical
planning and optimization" (Baldi et al., 2019).
Vision/ mission of the company
Vision

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"TCS will be recognized as a professional, inventive, and successful information technology-based logistics/services organization. TCS's
mission is to become a regional and global player concentrating on the Middle East, Europe, and North America, with customers,
workers, and shareholders at the centre of what it does. TCS demonstrates a strong commitment to ethical behaviour and corporate
citizenship." In point of fact,
Mission Statement
"It is vital that we devote all of our resources and attention to increasing the profitability of our core company while expanding into new
areas that complement and augment our core business, to establish excellence and industry leadership in the new markets. On the other
hand, TCS staff will be encouraged to be open to new ideas and services and identify emerging trends early on." In point of fact,
Roles for the digital transformation
• Chief Executive Officer
• Account executive manager
• Operations director
• Research Analyst
• Digital Strategist
• Customer Service Manager
Role 1: Chief Executive officer
Regardless of how extreme a business decision may appear, the CEO's input is vital. Digital transformation substantially transforms a
company's sales and marketing operations and business procedures. CEOs may effectively guide their companies through the transition
to the digital economy using innovative management strategies.
Due to demographic and digital trends, global exports are rising, but logistics companies cannot rest on their laurels. However, TCS has
been slower than other companies to adopt digital technologies. Even the most established organizations in the industry could be in

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jeopardy if they fail to capitalize on the slower rate of digital adoption. The logistics industry's reliance on digital platforms will increase
in the coming years, allowing smaller enterprises to compete internationally with the industry's established heavyweights. As a result of
the race to develop a worldwide platform, the customer experience of TCS will undergo a significant transformation over the next
several years.
Because TCS is a prefabricated system, customization options are limited. Without an Application Programming Interface (API) and
connectivity with customer addresses, it is difficult to have a reliable delivery procedure, on-time deliveries, and an extended GPS
position with local postal codes. When a customer uses the order number on TCs' website, they can track their order, allowing the
company to provide superior customer service. This decision-making system will help the organization better grasp the strategic value
of the system since it integrates all three levels of decision-making in a single model (Valacich & Schneider, 2016, pp. 80-83). When it
comes to daily operations and tactical decisions, technology facilitates decision-making through improved communication, on-time
delivery, and support for better resource allocation and programme design via virtual assistance. Strategically ineffective, however, if
TCS data are not manually integrated. The 1979 publication of Michael E. Porter's book "How Competitive Forces Shape Strategy" was
a game-changer in business strategy. Porter's Five Forces, sometimes known as "Porter's Five Forces," was one of the most significant
contributions to the subject. TCS has now become a global organization that has its business worldwide. TCS is a courier network that
can provide services worldwide in a very effective and efficient way. People have now shown great trust in TCS. For eons, TCS's
reliability has made the company successful in Pakistan. TCS offers domestic services to the people by maintaining all the quality
attributes expected from the best courier service provider. Porter's five forces is a useful Tool to conduct competitor analysis

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Bargaining power of buyers
TCS, A Pakistani entrepreneurial air-express company, is driven to reduce the price of its high-
quality goods due to the negotiation strength of its clients. Customers of TCS, An
Entrepreneurial Air-Express Company in Pakistan, can switch to other options more simply due
to the company's robust negotiation power.
There are three primary reasons why purchasers have considerable negotiating power:
• This is due to the wide availability of alternatives and their abundance.
• The low economic and psychological barriers to switching.
Bargaining power of suppliers
Weak bargaining power of supplier makes it comparatively less important
strategic issue for TCS An Entrepreneurial Air-Express Company in
Pakistan as suppliers cannot dictate the prices and have to accept the TCS
An Entrepreneurial Air-Express Company in Pakistan’ terms and conditions.
Three factors result in moderate to weak supplier power:
• A large number of suppliers
• High overall supply
• Suppliers’ weak control over their distribution network
Threat of substitutes
TCS Due to technology developments, a Pakistani Entrepreneurial Air-
Express Company faces competition.
A shift in customer tastes toward healthier meals has compounded this
risk for TCS. Businessman's Air-Express Company in Pakistan.
The following are some of the main reasons why substitutes are a
serious concern:
• Substitute items with a high performance/cost ratio.
• Substitute items are readily available in the market.
• Cost-effectiveness of a changeover.
The threat of new entrants
TCS The threat of new entrants to a Pakistani entrepreneurial Air-Express company is moderate, which
implies that TCS is not significantly impacted by new competitors. Air-Express Company in Pakistan's
Entrepreneurial Market Share
The industry requires a high level of marketing expertise and a large investment in marketing operations
in order to enter.
TCS New entrants pose a moderate danger to a Pakistani air-express business for the reasons listed below:
• The threat is diminished by the high expense of developing a brand.
• The threat is exacerbated by the low cost of switching.
• High capital costs make the threat less significant.
Competitive rivalry
• TCS, An Entrepreneurial Air-Express Company in Pakistan,
is having difficulty achieving its market growth targets
because of the high level of competition among its
competitors.
• Creating a product that stands out in a crowded market has
gotten increasingly complex.

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Figure 1: Porter Five Forces
When it comes to commercial transportation and logistics, drones can be an ideal answer to these challenges because they are more cost-
effective, environmentally friendly, and capable of meeting consumer demands more successfully. In other words, Transforming TCS's
transportation and logistics capabilities by using drones for deliveries might result in significant cost savings and improved customer
service, while also improving the environment and the economy" (Welch, 2015; Stanford Business, 2016).
Within 30 minutes or less, the drone delivery service will deliver packages. To provide "seamless peer-to-peer delivery by air," TCS
plans to develop a network (Eniverse, 2017). Because of the lower delivery costs connected with drones, services can be given at a low
and competitive price (Space, 2017). In addition to innovation, high quality, ease and speed of delivery being the significant factors
driving firms to embrace TCS, other service values will be included. During the first year of operation, the start-up will have a budget
of $2,000,000 to cover the first entrance, network construction, and other operational expenses. In year 3, the company is expected to
break even. Strategic planning, stakeholder communication, and general organizational guidance are all responsibilities that fall under
my purview.

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Role 2: Account executive manager
Maintaining assigned accounts, providing continuing customer assistance, and designing and implementing sales strategies based on the
delivery of logistical services is my primary responsibility as a TCS account executive manager. As a TCS representative, my primary
responsibilities include discovering and contacting potential customers to offer TCS services, negotiating contracts, and integrating
relevant technological solutions to improve logistics and communication. As a result, my job at TCS entails selecting the most cost-
effective and time-efficient transportation options for customers. My role in this digital transformation is to build and maintain a strong
carrier network and strong customer connections.
By doing a gap analysis on a business unit's performance, it is feasible to determine whether business goals and criteria are being met.
Needs assessment, needs gap analysis, and needs analysis are alternative terms for gap analysis (Suriadi et al, 2014). The service quality
gap model created by Zeithaml and Bitner (2003) investigates the discrepancy between perceived and intended service quality.
Customers receive what they desire from service providers who fulfil these expectations. Using the customer gap idea, logistics company
managers can design different criteria for evaluating their services. The gap concept also aids managers in analysing performance-value
gaps in order to improve their services or establish improvement objectives, resulting in a "win-win" strategy for both the company and
its clients.
The analysis of TCS's expected and actual performance reveals a significant disparity. Customer and employee perspectives of the
company diverge. This gap is created when management or service providers do not comprehend the client's desires or requirements.
To explain this disparity, TCS goods and services continue to pose logistical problems for drivers, such as unclear directions and drivers
who become disoriented. Pakistan never implemented a postal code system, despite the fact that the country's addresses were accurately
established. This hindered the planning and optimization of TCS's logistics.

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According to Hirt and Willmott (2014), the "digital era" has drastically altered the competitive landscape of the logistics service industry
(Hofmann and Osterwalder, 2017). In order to maintain a competitive advantage in the transportation market, TCS must enhance its
value proposition. Using digital capabilities to boost productivity, produce value for clients, manage risk, and uncover new revenue
streams in a short period of time is one example. S&R need a digital transformation plan to identify and evaluate the potential of digital
capabilities and to develop a new business model that will enhance customer satisfaction, operational efficiency, and corporate culture
(Fostec & Company, 2020)
Digital technology devices used by TCs
Geo-coding was one of the most important initiatives in this project. Even though Pakistan's addresses were established, any government
did not implement a natural postal code system (e.g., the UK's postcodes or the US' zip codes). Due to the lack of accurate description
and placement of addresses in TCS' logistics planning and optimization, this was an issue. TCS had started coding the lessons by
capturing the GPS positions of delivery addresses at the time of delivery to remedy this issue.
As a result, TCS was in talks with Google, which could code an entire street if the codes for two property numbers on that specific street
were provided to them. This coding scheme was supposed to be implemented across the country within the next eight months. The
couriers were also given portable gadgets as part of another significant endeavour. Phase-by-phase, this programme was designed to
help shippers track their shipments and obtain more detailed information. Cardholders received unique bar codes on their identity cards
at the business clients' locations. The rider scanned the client's identification card, pasted and checked a unique code for the parcel, and
took an image of the package during the pickup. When riders handed off boxes at the consolidation centre at the end of their shift, this
information was initially available. Still, it was instantly transferred to the backend via the device, allowing the information to be used
to arrange deliveries for the following day.
The term "digital transformation" refers to a continual journey into the digital world. It's not so much a project as it is a new method. To
succeed in today's digital world, you must transform your firm (Vial, 2019). Disruption occurs across all industries due to digital business

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transformation, dismantling traditional boundaries between people, companies, and objects. They can produce new products, services,
and ways of doing business by breaking down these obstacles. A wide range of companies and industries are adopting the latest
technological advancements. These initiatives differ in their specific focus, but they are all united by a common goal: transforming
business models, increasing worker productivity, and delivering more customized service to customers and citizens (Schwertner, 2017).
These companies need an outcome-driven and technology-enabled Digital Business Platform.
Digital Transformation Canvas is a toolbox for business owners, entrepreneurs, and executives who wish to train their teams to identify
possibilities, develop, and generate ideas that will fundamentally transform the firm from its current state to a prosperous future state
(Osterwalder & Pigneur, 2010).(Osterwalder & Pigneur, 2010). The Digital Transformation Canvas provides a framework for
considering significant areas of activity that might support an organization's digital transformation (Kotarba, 2018).