Research Project: Digital Technology's Impact on Business Operations

This research project, presented in two parts, investigates the profound impact of digital technology on business operations. Part 1 introduces the subject, providing a detailed literature review that examines how digitalization has transformed business processes, marketing strategies, and customer engagement. It highlights the increased efficiency, improved product quality, and enhanced communication facilitated by digital tools. The project explores both the positive and negative impacts, including the complexities introduced by continuous technological changes and the increased competition. Part 2 includes an executive summary, methodology, findings, discussion, conclusion, and reflection on the research. The study examines the factors behind increased profitability and the areas where digitalization is most beneficial, such as administration, communication, storage, distribution, and production. It emphasizes the role of digital technology in enhancing customer satisfaction, expanding market reach, and facilitating interaction with stakeholders. The project aims to analyze the efficiency gains in business operations, assess the nature of technology's impact, and identify key factors driving these changes.

RESEARCH PROJECT
(PART 1 & 2)

TABLE OF CONTENTS
PART 1............................................................................................................................................3
INTRODUCTION:..........................................................................................................................3
LITERATURE REVIEW................................................................................................................5
RESEARCH METHODOLOGY...................................................................................................10
TIMELINE OF RESEARCH ACTIVITIES..................................................................................11
PART 2..........................................................................................................................................13
EXECUTIVE SUMMARY...........................................................................................................13
INTRODUCTION...........................................................................................................................1
Background of study...............................................................................................................1
Aim.........................................................................................................................................1
Objectives...............................................................................................................................1
Rationale of study...................................................................................................................1
METHODOLOGY..........................................................................................................................1
FINDINGS.......................................................................................................................................2
DISCUSSION..................................................................................................................................9
CONCLUSION..............................................................................................................................11
REFLECTION...............................................................................................................................12
REFERENCES..............................................................................................................................13
APPENDIX....................................................................................................................................14

PART 1
INTRODUCTION:
The use of digital technology in business has transformed the way of doing business. It
has created a great impact on the business operations. By using technology in business, the
process and methods have been changed ( Pantano and Iazzolino, 2017). It has provided ease to
business operations by providing new tools and equipment. It has also helped in improving the
product and service quality. Digital technology has provided a platform for business to grow.
Moreover, in each department, technology has created a huge impact. There is some
transformation observed in every department. The major positive impact that technology has is
on marketing department. The overall process of promoting and advertising product is
transformed. In this, social media is being highly used by business to promote its product and
services. Along with this, there is high increase in sales and profits of business. Since
advancements in technology are continuously being done, these are forcing businesses to adopt
them in order to make changes in operations.
Besides this, use of technology has provided new ideas and concepts that can be
implemented by business to gain higher success ( Werthner and Stangl, 2015). This has resulted
in increase in competition in the market. Apart from this, it has allowed industry to focus on
customers’ needs rather than product. Use of social media has enabled business to identify
consumers’ needs so that products can be produced accordingly. It has also made production
process simple implementing new techniques. Moreover, communication has been improved in
overall functioning of business. It is difficult to analyse whether use of digital technology has
created a negative or positive impact on business. This is because; in many areas, it has made
processes complex creating impact on employee’s performance. Due to continuous changes,
business is not able to follow a specific concept or model. This has created gap in performing
traditional and modern business functions. Along with this, it has increased the cost of products
due to implementation of technologies. Digitalisation has helped in developing effective
marketing strategies ( Irvine, Park and Yıldızhan, 2015) The goals and objectives are changed
according to change in market conditions.
But on customer’s point of views, there has been positive impact of using digital
technology. It has provided them a new method of getting product’s information. Moreover, it
has given a variety of products to choose from. Due to improvement in product quality, needs of

people are getting fulfilled easily. Also, ease in marketing of product has allowed people to
compare different products and select the best one. All the product details are available to
customers easily ( Lerch and Gotsch, 2015). The way digitalisation has modernised business
operations and functions can be seen in a positive manner. Furthermore, it has a great influence
on consumer’s decision process. It has entirely modified that. The way in which consumer
approaches for purchasing a product has been shifted. Now, each and every product’s
information is provided to them by business. They have changed their mind-set by building a
positive brand image. This has happened due to effective and attractive marketing. Customer
behaviour towards a product has been influenced to a great extent. Social media has created a
platform for business to attract a large number of people at the same time. This research will
show how digital technology has helped business in increasing its profitability. Moreover, how
and to what extent profits are increased ( Loebbecke and Picot, 2015). What are the major
factors behind this. Also, in what areas digitalisation is been done by business and how
beneficial it has to them.
The use of digital technology in business operations has risen in recent times. This has
given hope to survive for long term and generating stable profits. Also, it has reduced cost of
products but on other hand given variety of options available to people. Big companies are
getting tough competition from small and medium businesses ( Choi, Narasimhan and Kim,
2016). This is because of availability of new products and services to people.
The main reason for selecting this project is described below: -
 How digital technology has provided efficiency in business operations
 Whether there is negative or positive impact of using digital technology in business
operations
It will help in analysing how efficiency in business operations has enhanced. In what
ways it is maintained by them and what measures are taken to implement changes in it. The
second reason will show the nature of impact on business ( Westerman, Bonnet and McAfee,
2014). What are the reasons for positive and negative impact.
LITERATURE REVIEW
Today's era is of digital evolution. The more business focuses on using digital
technology, more it will be beneficial for them. It is because; as said by (Larivière, Haustein and

Mongeon, 2015), there has been a lot of transformation in the business operations. Digitalisation
in business has completely changed the way of doing business functions and operations. It has
allowed them to implement technology in areas where business can gain competitive advantage
in the market. According to (Goldfarb, Greenstein and Tucker, 2015), technology has helped
business to improve its weak areas so that it can grow and develop. Also, it has enabled them to
improve their strengths so that they can earn more profits. As elucidated by (Tan and Carrillo,
2017), by effectively using technology, proper actions and measures are taken in order to
overcome the threats. It has allowed them to modify process and methods to increase their
efficiency and performance. (Maklan, Peppard and Klaus, 2015), said that along with
improvement in product’s quality, business is developing products to satisfy the needs of people.
This has increased both sales and profits of business. Moreover, it has resulted in intense
competition among different companies.
It has been said by (Matt, Hess and Benlian, 2015) that in various departments,
technology has created a huge impact. It has enabled them to make changes in their operations so
that overall goals and objectives can be achieved easily. Thus, having impact on each business
function has improved the overall productivity of business. It has given new tools and
equipment’s through which strategies can be developed. These strategies are useful in growth
and development of business. It has helped in generating more profits by applying changes in
concepts. As stated by (Weill and Woerner, 2015) the use of digital media in advertising the
product has influenced consumer decision process. By effectively promoting their products
business is able to attract a large number of people. It has also increased brand image in the
market. The cost and expenses of business are reduced. Also, it is being observed that online
purchasing is rising day by day. It is because of easy availability of products anytime, anywhere.
It is elucidated by (Robinson and Stern, 2015), that the main aim of company is now changed
from increasing customer base to satisfying them. This has automatically maintained its market
share as well as customer base. Apart from this, it has enabled business to retain their customers.
This is the reason why there is high demand of technology by people who are related with
business either directly or indirectly.
In a research conducted by (Nylén and Holmström, 2015), it is said that in various
departments such as finance, operations, marketing, human resources, etc. their efficiency has
increased using technology. For example – in finance department accounting software has been

implemented that has helped in maintaining accounts. Also, budgets are easily developed by
estimating profit or loss. Due to this business is able to take effective decisions. In similar way in
by making frequent changes in operations business perform its daily task. It has increased speed
of working and productivity. The major impact of technology is on marketing and research
department. It has provided an opportunity by which products can be developed and promoted in
more efficient manner. Companies are providing extra services to customers to increase their
satisfaction and retain them. The demand is easily being fulfilled by business due to increase in
its efficiency. Besides this, it has enabled them to generate more profits by gaining market share.
It is said by (Weller, Kleer and Piller, 2015), that technology has more positive impact in
monetary terms.
Internet has played a crucial role in marketing. (Piccinini and Kolbe, 2015), elucidates
that through this business not only promotes their products but also its mission and vision. This
makes aware people about what product they are providing and how it can satisfy their needs.
Networking sites is highly being used by business in connecting with more and more people.
This will help in attracting them to purchase their product. Also, (Pantano and Iazzolino, 2017),
said that consumer decision is influenced by change in taste and preference. Digital media has
allowed vast amount of information to customers to help in decision making. Rather than
analysing detail of product, customers read the reviews and feedback of other persons. It makes
easy for them to decide whether to buy or not. The rise in E- commerce has enabled companies
to do business at global level. It has increased its range of operations. Due to this sales has
increased leading to rise in profits.
(Werthner and Stangl, 2015), said that digital technology has enabled business to interact
with stakeholders in effective way. They can get their reviews on what changes are required in
product or process. The process can be related to supply chain management, delivering of
product, providing services, etc. By interacting with stakeholder’s strategies and decisions can be
taken quickly. Small and medium size business are mostly benefited by using digital technology.
It has provided them resources through which they can expand their business. Also, it has
allowed them to enter in the market with new products or services to compete with big
organisations. This has resulted in growth and development of many small and medium size
business in recent times.

For identifying impact of technology it is necessary to know how business has
implemented it and what impact does it has on its operations. This make it easy to analyse how
technology has transformed the way of doing business.
In every sector digital technology has impacted business, but as (Irvine, Park and
Yıldızhan, 2015), said mostly retail sector has taken the advantage of technology in better way
than other sector. It has helped them to expand its business widely. Moreover, it has made
customer easy to get goods anytime, anywhere 24/7. It has created a very tough competition in
retail sector. However, it has enforced companies to promote goods in effective way so that
consumers get influence easily. It has created diversified product portfolio. The areas in that are
impacted is given below: -
Administration – Database and system are being installed in that has enabled effective sharing
of data and information. Other than this, cloud computing has helped in storing of confidential
information securing and safely (Lerch and Gotsch, 2015) Apart from this, by using this business
can retrieve customer data and maintain customer relationship management.
Communication – Social media has allowed business and people to connect with each other at
global level. Stakeholders can collaborate and communicate easily. By communicating with
employees training is given to them that has reduced cost and time.
Storage and Distribution –Supply chain management has been provided flexibility in
delivering of goods. It has made business structure integrated from storage to distribution
(Loebbecke and Picot, 2015). The overall method of how product is stored and where it has to be
delivered is made easy.
Production – Digital technology has introduced artificial intelligence that has made production
of goods simple and effective. It has automated the overall process by installing machines. The
main purpose of business is to improve product quality. It has also helped in increasing per day
production with proper utilisation of resources. Product growth has increased in present times
thus, providing better quality goods to people.
But on the other hand (Choi, Narasimhan and Kim, 2016), said that development of new
process and methods has resulted in reducing the performance of employees. Due to continuous
changes done in business operations, employees are finding it difficult to maintain their

efficiency. It has forced them to make changes in their working manner in order to adopt change.
It has also changed their behaviour. Business have to give training to them. This has wasted a lot
of time and increase in their expenses. As states by (Westerman, Bonnet and McAfee, 2014),
digital technology has impacted business more positively rather than negatively.
(Jones, Borgman and Ulusoy, 2015), said that digital technology in the business adopts a
new change in it. Now a day’s business is fully dependent on technology. In other words, it is
called modern technology. Digital transformation allows rethinking what are customers’ needs
and values and how to meet them. It is a process to adopt changes and accept the new challenges
in digital media. It is said by (Larivière, Haustein and Mongeon, 2015) that every small and big
organization uses digital technology in their business. They communicate via social media and
mobile technology also allowed building relationship on global scale. In the organization all
work is done using networking sites and internet. For example- organization have their personal
websites to sell their products so that customer directly purchases it from there. This process is
easy and customer can buy it from home. Digital technology has made life simple for customers
and organization as well. All the work is done in less time. And communication is also easy one
place to another place. As elucidated by (Goldfarb, Greenstein and Tucker, 2015), some
following impact of digital media's:
 Impact on Operating Cost- In the small business the digital media impacts on business
functions such as keeping records, to handled accounts and mobiles apps are also allowed
to keep record in small software. They also help in video conferencing.
 Improved Communication- The digital media process helps to improve business
management and communication between employees and clients. Like emails, websites,
texting, via apps. Digital technology also helps for marketing. For example- customer acn
purchase products and company directly provide details via emails. And they also give
option for products delivery service to customers.
 Increased Productivity- The digital technology allows resource for ordinations and the
employees use those resources or work hard and increase the productivity of organization
(Tan and Carrillo, 2017). The company advertise their products via social media and
update content on social media's. For those things increase their organization productivity
and the customers attract to organization.

 Boarding customer base- The digital technology allowed reaching new economic
market. Some organization make their retail website so the customer can take goods and
service in low price. The digital media also helps to communicate with international
market and international activities and supply goods service to international market.
 Encourage innovation- The digital technology helps to make innovation in business,
organization have software to help to productive innovation the business (Maklan,
Peppard and Klaus, 2015). This software has many functions, they define the products
structure and how to modify them into new manner.
 Demands Transparency- In today's digital world customers wants to know about the
company, about the products what they purchase, about the brands. The company
provides details about the products, about the brands and about the company, via emails
or websites. The digital technologies finish the transparency between the companies and
customers.
 Content overloaded- in the organization having much information about the clients and
products and services (Matt, Hess and Benlian, 2015). The organization content daily
90% information from customers and they post on social media. The company having
software so they manage all huge of information and maintain the overloaded data.
Research Aim: - To analyse the impact of digital technology on increasing profitability of
business. A case study on TESCO
Research Objectives: -
 To find out the use of digital technology in various business departments and operations
 To find out impact of digital technology on consumer decision process.
 To provide recommendations and conclusion in implementing digital technology in
developing marketing strategies.
RESEARCH METHODOLOGY
Research methodology is a process that shows the overall method of how research will be
conducted. It describes design, approach, philosophy, etc. that will be used in research. Also, it is

helpful in knowing sample data and its analysis (Weill and Woerner, 2015). The methodology
for this research is described below: -
Research design – Research design shows the way in which research is conducted. Also, it
is divided into two categories that are exploratory and conclusive. The design used in this is
descriptive design that focuses on qualitative data rather than quantitative data. Thus, by
using this it will help in getting qualitative data. It is because it will help in identifying
digital technology factors that has created a great impact on business. Beside this, it will
show how there is increase in profits. The main purpose of using this design is to have an
insight on impact of digital media on business marketing strategies. Moreover, it will give a
brief overview of how business is make effective use of technology in their operations and
functions (Robinson and Stern, 2015) At last it will show overall impact of technology in
entire industry and whether it has created positive or negative impact on it.
Research philosophy – for conducting this research realism approach will be used. It will
help in developing further knowledge about this aim and objective. Besides this, it is based
on scientific approach so relationship can be identified between business and technology. So
it will provide information how change in technology impacts business operations.
Moreover, this approach is divided in two categories that is direct and indirect. Direct means
what we see and what we get (Nylén and Holmström, 2015) So in this it will be seen how
technology is impacting business. Furthermore, there has been impact on business
operations due to technology.
Research approach- In this fundamental research approach is used. It is done to expand the
knowledge in specific area. This approach will give an idea on how digital technology is
impacting business and in what ways it has made business grow and develop. Moreover, how
business is able to cope up with changes that are done in technology ( Weller, Kleer and Piller,
2015). Besides this, it will give knowledge on how there has been change in pattern of consumer
decision process and how it has influenced it.
Data sampling- The data sampling will be done by using stratified sampling method. It is
because it will be easy to make strata and collect data. The strata made will consist of business
from different sectors so that it is easy to identify impact of digital technology in each sector.
Thus, by identifying this, it will be easy to identify which sector probability has been increased

ad by how much by using it. In this the data sample collected will be of 100 business. These
business will belong from different sectors such as retail, auto mobile, electronics, etc.
Data analysis- The data analysis will be done on the basis of quantitative data analysis. It will
give a critical and rational thinking ( Piccinini and Kolbe, 2015). By this meaningful
information will be received by converting raw materials. Also, in this rational approach will be
applied. It is because it will help in finding out difference between negative and positive impact
of using digital technology in business. Besides this, SPSS technique will be used that will give
specific results.
TIMELINE OF RESEARCH ACTIVITIES
Timeline of research shows that how the entire research activities will be conducted. It
divides activities into various tasks so that it can be identified which activity has to be performed
and on which date. Also, how much time each activity will take so that next step can be taken.
By creating timeline proper research is conducted. Also, it helps in reviewing entire research
process. It is 20 weeks’ research timeline that starts from April to December.
Activity 1the
to 2nd
Week
3rd.
to
4th
Week
5
the
to
6th
Week
7the
to
8
the
Week
9the
to
10
the
Week
11
the
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the
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13the
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14
the
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15
the
to
16ht
Week
17th to
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the
Week
19th to
20th
Week
Identify
research topic
Review of
Literature

Drafting
Methodologies
Complete
Proposal
Design question
and pilot
research
Documentation
of records
Analysing data
and
interpretation
Discussion and
Conclusion
Final Report
Editing &
Completion