The Effect of Digital Technology on Business Functions of SMEs

This research project investigates the impact of digital technology on the business functions of Small and Medium Enterprises (SMEs), using The Sheldon Hotel as a case study. The project aims to understand the ramifications of digital advancements on business activities by studying the business operations, analyzing the digital technology used, assessing its impact, and recommending improvements. The research employs a literature review and a questionnaire-based survey to gather data on employee perspectives regarding technology adoption, its benefits, and the effectiveness of current technology. The findings reveal that while digital technology is generally perceived as beneficial for improving performance and business activities, there are issues related to the effectiveness of current technology, the need for employee training, and proper financial planning. The project concludes by highlighting the importance of digital technology in enhancing business activities and the need for continuous improvements to maximize its benefits for SMEs.

Research
Project

TITLE
The effect of digital technology on business functions of SME’s
INTRODUCTION
There are various areas of study that can be conducted. These are carried out so that
solution for some particular aspect can be identified. The present research is carried out on
determining identifying the impact of digital technology on business activities of SME. There are
many changes that have taken place in relation with technology and this has positively helped in
developing strong relation with customers. Different type of aspects will be covered and focused
to make the business reach their goals and objectives.
P1.
Main aim of any firm is to gain maximum profit. Business is able to increase their
performance level when there are support of employees. It is important for the firm to understand
the requirement of customers so that they will be able to develop high quality services. For this
respect, it includes use of technology that enable to deliver and better quality of services to
customers (Peppard and Ward, 2016 ). In order to carry out the research in effective manner, The
Sheldon Hotel is taken into considered. They go for understanding the prerequisite of clients and
convey them administrations. To have deliberate path for finishing the examination there are
point and goals that are shaped and they are as per the following:
Aim:
To comprehend the ramifications of advanced advances on business movement: An examination
on The Sheldon Hotel UK.
Objectives:
 To contemplate the business exercises at The Sheldon Hotel UK.
 To break down the advanced innovation utilized at The Sheldon Hotel UK
 To assess the effect of advanced innovation on business exercises of Sheldon Hotel UK
 To prescribe approaches to enhance business exercises through utilization of advanced
innovation at The Sheldon Hotel UK.
Research Questions
 What are the business exercises that are completed at The Sheldon Hotel UK?
 What are the computerized advancements utilized at The Sheldon Hotel UK?

 How computerized innovation effect business exercises of Sheldon Hotel UK?
Reason for choosing this research project:
To conduct the research I have personal interest in this area. There are different type of
strategies that are applied by the business so that they will be able to improve the performance
level in effective manner. This way, the research will help me to develop my in depth
understanding. Further, I am willing to develop my carrier in hospitality sector and I will get to
know the implication of technology in improving the quality of business activities.
Literature review
This is an essential aspect that enables to ascertain the various kinds of research that are
carried out by other researchers. It is facilitative enough to develop in depth knowledge about the
research topic.
According to Sako, (2012) there are different type of business activities that are to be
carried out within hotels. In this context, it includes preparing requirement of customers. As per
Simmons, Palmer and Truong, (2013) different people have diverse set of preference and it is
important for the firm to understand them and deliver services accordingly. Further, it requires to
have different departments like chef, employees, receptionist, etc. who have to work together
towards common goal (Bucolo and Matthews, 2011 ). In all the business activities, it consists
making use of digital technology as it helps in improving the quality of services for customers.
However, in all these aspects, it requires to have proper monitoring to be done so that the areas in
which improvement is to be made are identified. As per the findings made, employees should be
provided with training and development.
Davidson and Vaast, (2010) stated that there are many modifications that has taken place
with regards to with technology. It requires the hotel to realize the benefits that they get when
new technology is used. It is being identified that there are definite set of problems that are
identified in which implementation of technology becomes difficult. In this context, one of the
primary difficulty is related with planning the cost that will be incurred (Obeidat and Abu-
Shanab, 2010). When new or updated technology is implemented, then it is important that
employees are provided with proper training so that they will be able to develop their skills and
capabilities. Apart from this all the workers face issues in accepting the changes that

management is willing to implement. In such condition, it is important that appropriate steps are
taken so that all the employee accepts the changes that business is willing to implement.
There are many type of business activities that are performed within hotels in which there
are changes and improvements that are made so that high quality services can be delivered to
service users (Andriole, 2012). When there are improvement that are made by the business so
that they are able to understand the requirement of customers and deliver them services as per
their need and requirements. In addition to this, it is also identified that all the employees are not
able to adjust with the changes immediately and so it required to have healthy interaction from
the side of management so that all the workers are able to adjust with the changes effectively and
efficiently.
Activities and timescales
Activit
y
1th
Week
2nd
Wee
k
3rd
Week
4th
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k
5th
Week
6th
Week
7th
Week
8th
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k
9th
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k
10th
Week
Find
resear
ch
Topic
Develo
ping
aim
and
objecti
ves
Litera
ture
Revie
w
Analys
ing
journa

ls,
online
source
s, etc.
Drafti
ng of
metho
dology
Finish
Propos
al
Design
questi
on and
pilot
resear
ch
Carry
out &
Recor
d
Resear
ch
Data
Analys
is and
Makin
g
Graph
s
Discus

sion
and
Concl
usion
Final
Report
Editin
g &
Compl
etion
P2.
To conduct the research, it is important that all the methods and techniques should be
reasoned so that the in systematic manner the research can be conducted. In this context, below
given are the different type of research methodologies:
Research philosophy: It is enables to determine the appropriate sources through which
appropriate information can be gathered (Mackey and Gass, 2015). These are of two type which
are positivism and interpretivism. In this research, investigator will make use of combination of
interpretivism and positivism. This way, focus will be made on the objectives and the aim that
are set.
Research design: This enables to carry out the research in systematic manner. These are
of three type which are experimental, exploratory and descriptive ( Taylor, Bogdan and DeVault,
2015). Among these, the researcher will make use of descriptive research design as it enables to
determine the theories related with the research topic.
Research approach: There are two type of research approach which is inductive and
deductive. Inductive focus on developing theory or aim at the pattern through which data is
gathered. On the other hand, deductive aimed at testing theory related with the research topic.
Among these two, the researcher will make use of inductive approach.
Data collection: These are of two type of primary and secondary method. Both these
methods will be used by the research (Silverman, 2016). Particular will be conducted with the

help of questionnaire from 20 employees and secondary through journals, books, online
websites, etc.
Data analysis: After gathering data, it requires to have proper analysis made. In this
context, thematic will be practical as present the data in the form of tables, graphs, etc.
P3
For conducting the present research on implications of digital technology, the following research
methods have been used:
Research philosophy
Research philosophy comprises of the belief regarding collection and analysis of data. It
is concerned with source and nature of knowledge. Considering the Saunder’s onion, research
philosophy is placed at the outermost layer, and therefore, is the first topic which is clarified in
research methodology. Research philosophies are of four main types. These are pragmatism,
positivism, realism and interpretivism (Ihantola and Kihn, 2011). For the present research on
Sheldon Hotel, a combination of positivism and interpretivism research philosophies has been
used. The reason behind selecting this philosophy was that it helped in gaining factual
information through observation. Moreover, with positivism philosophy, the role of researcher is
limited to collecting and interpreting the data. Moreover, positivism is dependent on observations
that are quantifiable. Therefore, this philosophy assisted the researcher in concentrating on facts.
Therefore, with the help of it, the implications of digital technology on business activity of
Sheldon Hotel could be determined. Interpretivism philosophy was adopted because it assisted
the researcher in interpreting the elements of the study. This philosophy assisted in representing
different aspects of the phenomenon being studied.
Research approach
Research approach encompasses the plan for the procedures that are to be undertaken for
carrying out the study. The approaches are of two types, inductive and deductive approach.
Deductive approach takes the ways from general to specific (Harrison and Reilly, 2011). This is
therefore known as the top down approach. A generalized theory is narrowed down to be more
specific. In contrast to this, Inductive approach move from specific observations to broad
generalizations (Deduction & Induction, 2006). For the present study, inductive approach has
been used. By making specific observations about the way digital technology is used in the

business, its implications for business activities of Sheldon hotel have been analysed. The
specific observations helped in detecting patterns and regularities. Following this, generalized
conclusions could be determined.
Research design
Research design provides information about the strategy that has been adopted by
researcher for logical and coherent integration of different components of the study. Research
design are of different types, namely, exploratory, descriptive, explanatory etc. (Franklin, 2012).
for the present study ion Sheldon hotel, descriptive research design has been chosen. Descriptive
research design focuses on depicting participants in accurate way. It also helps to describe the
characteristics of the phenomenon being studied. A descriptive study provides three methods to
the researcher for carrying out the research. These are case study, observation and survey
(Grafton, Lillis and Mahama, 2011). This design was selected as it helped in adopting suitable
methods for studying the implications of digital technology on business activities of Sheldon
Hotel. With this design, the researcher could use survey for attaining the aim of the study.
Descriptive design assisted in better describing the digital technologies used in the hotel and their
importance. On the basis of this, the researcher could determine the implications of digital
technologies for Small and medium enterprises.
Data collection
Data collection is concerned with using appropriate methods for gathering the necessary
information so as to achieve the aim of the study. There are two methods with which data can be
collected. They are primary and secondary methods of data collection (McGrath and O'Toole,
2012). For the present study on implications of digital technology, both primary and secondary
data collection methods were used. Primary data is the information that a researcher gathers form
the first time for a particular study. It is, therefore, known as first-hand information. There are
different methods for collecting primary data. They are focus groups, observations, interviews,
surveys etc. For the present study, primary data was collected with the help of survey
questionnaire method. It was gathered from the employees of the hotel. Secondary data is the
information that has already been published in the previous researches. For the present study on
Digital technology, secondary data was collected from journals, books, organization records,
online articles, blogs etc. this helped in gaining a better understanding of the subject matter.
Sampling

There are two techniques of sampling. They are probabilistic and non- probabilistic
sampling technique (Flick, 2011). For the present study, probabilistic sampling technique was
used as it provided an equal chance to every member of the population of being included in the
study. The sample of 20 employees of Sheldon Hotel was selected by using simple random
sampling technique.
Data analysis
Data analysis involves coding, cleaning and transforming of data so that conclusion can
be drawn. There are two methods of data analysis, namely, qualitative and quantitative.
Qualitative data analysis deals with method employed for better interpretation of situations as
well as people (Ihantola and Kihn, 2011.). It helps in provides detailed insights about a particular
phenomenon. In contrast to this, quantitative data analysis methods involve the use of statistical
tools and quantitative techniques for analyzing the data. For the present study on implications of
digital technology, qualitative data analysis has been done. Data has been analysed by using
thematic technique. The chosen technique comprises of examining and recording patterns in the
collected data. On the basis of the identified patterns, themes are formed that help in better
describing the phenomenon.
Ethical issues
The following ethical issues were considered while carrying out the present study: Informed consent: One of the ethical considerations while carrying out the study is to
take prior permission from the participants by informing them about the study. Non-
compliance with the same could have led to ethical issues (Franklin, 2012). Therefore,
while conducting the present study on Sheldon Hotel, the participants were informed
about the purpose of the study and informed consent was obtained from them. Confidentiality: Another ethical issue as related to confidentiality of the information
provided by the participants. It was also essential that the anonymity of the participants is
maintained (Grafton, Lillis and Mahama, 2011). In order to address this issue, the
researcher assured the participants that their identity would be kept anonymous. Further,
they were assured about the confidentiality of information provided by them. For this, the
researcher adopted proper storage of data. Also, unauthorized access to the data was
checked.

Cost considerations
The research study requires carrying out various processes due to which costs may be
incurred. These include data collection, analyzing the primary as well as secondary debate etc.
However, the financial resources available are limited. This issue was addressed as the
researcher minimized the costs by not appointing research assistants. The various processes of
the study were carried out by the researcher himself.
Access issues
Various access issues were faced by researcher while collecting the primary and
secondary data. During primary data collection, there was issue of gaining access to the
participants of the study. This was resolved by talking permission from the organization. During
collection of secondary data, the researcher faced the issue of restricted access to some of the
journal articles. For this, permission was obtained for accessing the full article.
P4.
When data is collected, it requires to have correct investigation made so that each
response that are gathered from the questionnaire can be properly analyzed. Below given are the
analysis made with the help of thematic in which tables, chart, etc. are used:
Theme 1: The Sheldon Hotel make use of new or updated technology
Does The Sheldon Hotel make use of new or updated technology? Frequency
Yes 11
No 6
Not Sure 3

Description: In accordance with the research conducted from employees, it can be stated
that with time there are many changes that take place within the organization. There are about 11
of the employees stated that The Sheldon Hotel make use of new or updated technology.
However, there are 6 of the workers who do not think that use of the new or updated technology
is done within the firm. Further, it can be stated that there are 3 of the employees who are not
sure for the same. Overall, it can be stated that cited firm that is The Sheldon Hotel does make
use of digital technology and majority of the workers are aware of the implication that are made
by the management. In addition to this, there are issues in this aspect that are faced and this is
proper planning of finance so that all the operations can be complete effectively.
Theme 2 : Use of technology is beneficial for the firm to improve performance level
Do you think that use of technology is beneficial for the firm to
improve performance level?
Frequency
Yes 14
No 5
Not Sure 1