MBA Project: Digital Transformation of TESCO - Business Analysis

This project analyzes the digital transformation of TESCO, a leading UK retail chain, focusing on enhancing its online and in-store operations. It addresses the company's need to adapt to changing consumer demands and the increasing use of mobile technology. The project outlines a digital transformation strategy, including an e-commerce business environment and the implementation of a "Click and Collect" service. It covers project objectives, scope, work breakdown structure (WBS), project charter, stakeholder analysis, project planning steps, cost estimation, risk management, and communication strategies. The project recommends strategies like market analysis (SWOT, PESTLE, Porter's Five Forces), high-security mechanisms, and training programs to improve skills. The goal is to increase market sustainability, improve business operations, and enhance customer experience by integrating offline and online contact points. The project aims to improve efficiency, customer reach, and order processing. The project is divided into phases, including initiation, planning, execution, control, monitoring, and closure, and also provides a WBS and project charter to ensure the project is carried out successfully.

Running Head: PROJECT MANAGEMENT
Digital Transformation Project for TESCO
Name of the Student
Name of the University

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Acknowledgement
I am thankful to <NAMES> without whose help, I could not have completed this module. I am
also thankful to <NAMES> who provided me with significant help in gathering sufficient
information that was required for the analysis of the given case study and collecting data that was
required to develop an appropriate plan for the highlighted project. Finally, I am thankful to my
parents and family members without whose patient guidance and lessons, I could not have
reached this stage of life.
<INSERT NAMES>
<INSERT DATE>

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Table of Contents
Executive Summary.........................................................................................................................3
Introduction......................................................................................................................................4
Brief Outline of the Issue.................................................................................................................4
Selection of Product or Service.......................................................................................................4
Project Description..........................................................................................................................5
Project Concept and Strategy.......................................................................................................5
Available Strategies.....................................................................................................................5
Strategy Recommendation...........................................................................................................6
Options Available for TESCO.....................................................................................................7
Project Objectives for TESCO.....................................................................................................7
Project Scope...............................................................................................................................8
Work Breakdown Structure.........................................................................................................8
Project Charter.............................................................................................................................9
Project Stakeholders..................................................................................................................10
Project Planning.............................................................................................................................12
Project Planning Steps...............................................................................................................12
Project Requirement..................................................................................................................13
Project Cost Estimation.............................................................................................................14
Risk Management......................................................................................................................14
Communication and People Management.................................................................................17
Project Monitoring and Control.................................................................................................18
Project Closure...........................................................................................................................18
Recommendations..........................................................................................................................20
Conclusion.....................................................................................................................................20
Bibliography..................................................................................................................................22

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Executive Summary
TESCO is a leading retail chain company in UK that also operates through online application
and has experienced steady growth in business owing to popularity among the customers.
However, the management department has observed that the company is failing to adopt the
technical and operational factors that are essential for governing the activities. This project is
based on the digital transformation of TESCO who focusses on increasing control on the retail
and ecommerce market and solve the problems faced by the company in recent times. The scope
that has been set by TESCO is to analyse the current business environment of the company and
to identify the core operational section that requires significant focus and improvement in order
achieve the business goals of the company. It is focused on developing valuable innovation plan
which may help to augment the market sustainability of TESCO.

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Introduction
This project depicts and elaborates the importance of implementing appropriate project
management strategies and practices in the nominated business organization “TESCO” for their
commercial growth and exponential operational success. Due to constant changes in the
technical application they are failing to meet the consumer’s demand. TESCO should realize
multi-channel retailers to improve their business prospects to enhance the multichannel
experience of the consumers. The company has recognized that, the mobile technology usage is
increasing day by day among the consumers.
Brief Outline of the Issue
The annual sales report of TESCO has identified that “At Christmas the sales rate was
8% of food sales and 20% of non-food sales”. In addition to this their online grocery sales rate
was identified as £2.5 billion and the profit rate was identified as £127 million. However, the
management department has observed that the company is failing to adopt the technical and
operational factors that are essential for governing the activities. As result the company was
facing tough competition.
Selection of Product or Service
Considering the nature of requirements of the project, it can be said that instead of
launching a new product, launching of a new service is necessary at this point for the company.
The proposed service for the company in this project is digital transformation that will change
the business operational landscape of the company.

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Project Description
Project Concept and Strategy
After analysing the details operational and functional activities and TESCO’s expansion
project it is determined that TESCO’s expansion project is well conceived. The reasons for
which it can be said that the expansion project is well conceived is elaborated in the below
section. In the year of 2013 TESCO has shown effective and interesting sales growth. The
service operated by the company was found to be extremely beneficial and consumer focused.
As a result the online consumers were very satisfied due to their quality services.
It is the liability of the company heads, operation executives and the assigned project
team members to design project development strategies. It has been determined that if proper
marketing and business strategies are successfully followed by the project associates then the
company would be able to gain commercial success and competitive edge as well. Not only this
but also lack of leadership was the other reason that was causing commercial failure.
Available Strategies
There are certain strategies that TESCO should achieve to reach the objectives are as
follows: Due to the above mentioned difficulties and challenges the company is willing to
implement an E-Commerce business environment considering Business to Customer Ecommerce
model. The aim of the company is to design and develop innovation plan to increase the market
sustainability. It is also determined that the new innovation strategy will be more focused on
digital transformation strategies. Not only this but also the company must utilize the digital
media much than the current. In other words, it can be said that the company should focus more
on digital innovations for the business growth. The numbers of mobile and tablet users are

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growing these days a lot. Therefore, in order to offer a better consumer experience TESCO
should change their current purchasing process and service delivery processes. After realizing
and understanding requirements of the consumers, TESCO should design their innovation
strategies. In other words the project that will develop and deliver by TESCO is “Click and
Collect”. Not only this but also the company needs to open new stores in the convenient
locations also.
Strategy Recommendation
Different strategies those are recommended for successful implementation of digital
transformation project in TESCO are as follows:
 TESCO should conduct both internal and external market analysis in terms of
Porter’s five forces, PESTLE and SWOT analysis to ensure about the current
market scenario and existing market competition. It will help the company to
understand its strength, weaknesses, opportunities and threats.
 Apart from that, it will also help the company to realized threats from the new
entrants, suppliers and buyer’s power, competitive rivalry and threats from the
substitution.
 TESCO should analyse the political, economic, social, environmental, technical,
legal ambiance to identify the different changes that can bring success for the
company
 High security mechanisms are required to keep the confidentiality and
information secured from unwanted external access

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 TESCO needs to arrange on job technical and non-technical training and
development program to improve the skill and knowledge of the company
associates
Options Available for TESCO
The core value of TESCO involves commitments using the scale for good by becoming a
responsible retailer globally. The company opened their very first zero carbon emitting
supermarket in Ramsey. The business strategies followed by the company was always very clear
and concise. TESCO keep on formulating their core business strategies based on changing
organizational requirements and consumer’s demand. In order to improve the shopping
experiences of the consumers the company in aimed to improving their business values and
consumers loyalty as well. It has been expected that the core values will help TESCO to bring
significant changes in the competitive market. The different driving forces that are constantly
being analysed by TESCO include price, quality, and innovation range and customer services.
Project Objectives for TESCO
The actual objectives of TESCO digital transformation project are as follows:
 To understand the current situation and requirements of the consumers industry
 To realize the current digital platform of TESCO and develop the environment
considering creativity and personal inputs
 To improve the business strategies and offer a click and collect more accessible
consumers opportunities
 To integrate the offline and online contact points of business organization

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Project Scope
After analysing the consumer industry, situation and also consumers requirements it has
been determined that TESCO is looking for effective personal creativities and inputs to gain
commercial profit and competitive advantages as well. It has been defined that, if all the core
business values and project managerial practices are successfully followed by the project
associates will be able to meet the project objectives.
The scope of the project is to analyse the current business environment of TESCO to
identify the core section which requires significant focus and improvement. It is focused on
developing valuable innovation plan which may help to augment the market sustainability of
TESCO. It has been determined that the innovation of the company is strictly focused on digital
transformation strategies to allow much digital media utilization. The other scope of the project
is to increase business operational activities for commercial growth and revenue as well. In other
words, the project scope is to identify the current market status and competitive edge of TESCO
to develop effective business strategies. It has been assumed that if proper delivery model is
designed by the company then TESCO would be able to meet the purchase and selling
expectation of the consumers.
Work Breakdown Structure
In order to implement the project as per consumer and market demand it is determined
that associates should divide the digital transformation project into smaller parts. Individual
resources are needed to be assigned to each project sub sections. After successfully dividing the
project it become the responsibility of the project associates to accomplish the assigned
responsibilities within accurate time and budget. The project is divided into five phases in terms
of project initiation, planning, execution, control and monitoring and project closure. Each phase

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must be followed to exploit the digital space opportunities and keep the consumers engaged to
their responsibilities. The details WBS of the project are as follows:
Project schedule
Project initiation
Scope statement
documentation
Analyzing current
market trends
Identification of
existing competitors
Requirements
identification and
gathering
Resource
identification
Team allocation
Project planning
Risk management
plan
Procurement
management plan
Digital requirements
Feasibility study
Project design and
development
System analysis
System specification
Ecommerce and
M-commerce system
modification
System verification
and validation
“Click and collect”
service
implementation
Project control and
monitoring
SLA
Database
connectivity
Unit and integration
testing
User Acceptance
testing
Project closure
Stakeholders signoff
Final project
document
implementation
Figure 1: Work Breakdown Structure (WBS) for the project
(Source: created by author)
Project Charter
Project title: digital transformation project development for TESCO
Project objectives  To understand the current situation and
requirements of the consumers industry
 To realize the current digital platform of
TESCO and develop the environment
considering creativity and personal inputs
 To improve the business strategies and
offer a click and collect more accessible

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consumers opportunities
Project budget The net budget that has been estimated for the
successful implementation of the project is
$40,000
Project scope The scope of the project is to analyze the
current competition and market trends. TESCO
should include modifications and proper
changes based on the
Timeline In order to incorporate the required changes
and modify the current operational and
functional activities TESCO needs a time of
approximately 8 months.
Stakeholders  Project manager
 Finance manager
 Business analyst
 Application programmer
 System developer
 Marketing head
Project Stakeholders
Stakeholder for any project can be a person or can be an entire organization or group of
people as well. The roles of the stakeholders are to govern and lead the project team members

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towards the organizational policies and consumers’ expectations. For TESCO the stakeholders
are classified into two sections: internal and external. The internal stakeholders for the company
are suppliers, owners, customers, unions, directors, community, creditors, workers and
government. On the other hand, the external stakeholders assigned for the project includes
employees, government, trade union, local and national communities.
However, considering the current situation of the business organization TESCO it has
been determined that in order to govern the project successfully within assigned time and budget,
the project manager should lead and motivate rest of the project associates so that they can serve
their assigned duties professionally. The stakeholders who are assigned for developing the digital
innovation plan for TESCO include: project manager, finance manager, business analyst,
marketing head, system developer, tester, application programmer and Database Administrator.
The aims of the project stakeholders are to develop effective and successful international
trader. TESCO stakeholders are required to maintain a professional relationship with their
suppliers to deliver a god working environment to their employees and other associated as well.
However, the company must develop effective stakeholder engagement strategies to keep them
engaged to their regular responsibilities and duties as well.
The stakeholder matrix for this project is elaborated on the below section:
Name of the stakeholders Power Interest
Project manager High Interested to complete the
project within exact time and
budget
Finance manager Low To conduct a feasibility study

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and make sure that the project
will be accomplished within
appropriate budget
Business analyst High To design and develop proper
business strategies
Application programmer Low To implement proper
application and make sure
that the project is running
towards accurate objectives
System developer High To design the system in such
a way so that it can meet
TESCO’s objectives
Marketing head High To design appropriate
marketing strategies to bit the
current competitors.
Project Planning
Project Planning Steps
Initiation phase: In the project initiation phase TESCO should identify the current
market status and competitors. Considering the market status proper marketing and business
strategies will be designed and developed in this phase. The manager and team members are
required to follow the norms and policy throughout the project development life cycle period.

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Project planning phase: During the project planning phase, a project scope statement,
communication, procurement, risks and quality, schedule and budget planning should be
prepared by the project team associates.
Project execution phase: The project execution phase elaborated the complete project
outline that has to be followed by the executives and project team associates. This phase should
be developed considering current market operational and functional requirements. TESCO offers
marketing opportunities to the consumers but that is not up to the mark. Therefore after
analyzing the market and competitors trends the digital transformation plan should be
incorporated. In this phase, the existing E-Commerce and M-Commerce system of TESCO will
be modified to provide scalability, reliability, security, integrity and interoperability to the
consumers.
Project monitoring and control: The project manager will monitor the project in this
phase to check that whether it is governing towards actual objectives, aim and goals or not. The
chances of potential risks an issues get reduces if the project progress is properly monitored and
controlled by the project team associates.
Project closure: In order to modify the Ecommerce and M-Commerce services, TESCO
will hire system designer, developers externally. The project closed with stakeholder’s signoff.
In addition to this in this phase, a final project document will also be prepared.
Project Requirement
TESCO is interested to obtain future success by analysing current market trends and
competition as well. TESCO is also interested to integrate the online and offline services of the
company to make sure that they are offering the best quality services and products to their

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consumers. The digital consultants should give digital space to the consumers and make sure that
all the marketing trends are realized.
Project Cost Estimation
After analysing the project details it has been determined that the project is required to be
accomplished within the budget of $40,000.
Risk Management
Risks are associated with all projects but the intensity and impact of the risks vary on the
scale and nature of the project. Generally in large scale projects, risks can cause serious negative
impact on the project. The large scale organisations are mostly affected financially as the impacts
of the risks can result in massive financial losses, decrease in revenue and other problems that
can even result in bankruptcy of the organisation. Other than financial risks, there are also risks
that can affect the internal and external operations, brand value, customer base and other major
business attributes of the organisation.
Similarly for TESCO, this project brings about a wide range of benefits and opportunities
for future growth but at the same time, there are numerous risks that can cause major impacts on
the organisation. Some of the major risks that may occur during or after the project are analysed
and discussed as follows.
Financial Losses – One of the major and high priority risks associated with this project
for TESCO includes financial losses. Owing to the nature and scale of the project as well as
some major external factors like market competition, high prices of technical implementation
and digital technology upgrades, there is high chance that TESCO will face significant financial
losses. Furthermore, it has been already seen that TESCO has faced some drop in sales in the

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past year and this further increases the risk of financial losses during the project. The market
competition is also increasing at a rapid pace with various local and international brands
competing with TESCO for capturing the retail and online market with these brands providing
products at cheaper costs that TESCO. Hence, even after digital transformation, TESCO may not
be able to get hold of the market as expected despite high brand value and international
popularity.
Data Security – One major risk that arises with digital transformation of any business
organisation is the data security issue. Once the digital transformation is complete, the company
will require some of the personal data of the customers including name, address, phone number,
credit / debit card details and others in order to establish business relationship with customers
through the online media. However, all these data will be stored in online virtual interface like
cloud, which is very much vulnerable to threats like hacking. Unethical hackers target the cloud
storages used by the business organisations to steal personal information of the customers and
can misuse the information for personal like breaking into the bank accounts of the customers
and stealing money through online hacking processes. Hence, this is a major risk for the project
that needs to be mitigated before going live with the digital transformation.
Lack of Technical Expertise – One of the major requirements of digital transformation for
a business organisation is to deploy a technical management team with sufficient digital
technology handling skillset and a manager who will able to manage the technical team.
However, many of the business organisations ignore this fact and do not have any specific
technical team for managing and handling the digital component of the business process. This
causes major problems for the company as the staff and employees are not able to cope up with
the digital system requirements and the overall productivity of the company decreases

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significantly. This can also happen for TESCO if they are not aware of the system management
and handling requirements and do not deploy any technical team to take care of the same.
While these highlighted risks can have major impacts on the project and the company as
whole, there are some management plans that can be utilised to mitigate these risks or at least
minimise the chances of occurrence of these risks. The mitigation plans for the risks highlighted
above are listed as follows.
Mitigation for Financial Risk – There is no absolute mitigation for financial risk – even if
steps are taken, the risk will remain for the organisation. However, chances of occurrence of the
financial risk can be minimised through suitable planning, effective approach towards product /
service deployment and accurate estimation of the existing market. Similarly, TESCO needs to
evaluate the market accurately as well as the impact of digital transformation on the customers
before going ahead with the project. TESCO should also avoid overspending on the project and
ensure there is sufficient scope for generating positive cash flow once the digital transformation
is complete.
Mitigation for Data Security Risk – In order to mitigate the risk of data breach and
external attacks, the project team needs to ensure the deployment with suitable software that
provides firewall to the internal network of the organisation and blocks most of the attempts to
break into the system and steal data. There are also specific software that detect malwares and
other malicious files and deletes them immediately from the system. It is recommended for the
company to install these software in the system to minimise the chances of infection that can
destroy or compromise secure and confidential information of the company.

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Mitigation for Technical Expertise Risk – The only mitigation to this particular risk is to
deploy a technical team that has already discussed above. However, if the company finds it
impossible to deploy a new technical team due to various constraints like funding and others, one
option is to provide sufficient training to the existing employees and staff such that they are able
to manage and handle the system much more effectively.
Communication and People Management
The communication plan for the stakeholders associated with the project is developed as
follows.
Stakeholder Purpose Frequency Mode of Communication
Project Manager Updating progress of
the project and seeking
guidance regarding the
project
Weekly Face to face (recommended)
Weekly progress reports
Finance Manager Budget allocation
requirements
Monthly Spending report
Budget report
Business Analyst Business requirements
analysis
As per
requirements
Face to face
Business statistics and
expectations report
Application
Programmer
Application
programming
requirements
During project
planning
Face to face
System Developer System requirements
and expectations
During project
planning
Face to face
Marketing Head Marketing requirements Monthly Email

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In addition to the stakeholder communication plan development, it is also required to
develop an appropriate people management plan that will ensure the project team members other
than the stakeholders are appropriately managed and guided throughout the project. It is the
responsibility of each individual stakeholder to monitor the activities of the team members
working under them and guide them towards to the right outcome in the project.
Project Monitoring and Control
Project monitoring and control are two important processes that are required to ensure the
project is moving in the right direction and there is no overshoot of time and budget. The
responsibility for monitoring of the project is on the project manager who needs to get updated
on the performances of the project team members on a frequent basis. The stakeholders will have
to update the project progress report every week and handover to the project manager for
monitoring processes.
The project manager is also responsible for controlling the project in order to ensure the
right outcome is achieved and the project remains within the predetermined scope. Failing to do
the same will cause various problems like scope creep that will hamper the quality of the project.
Project Closure
The purpose of project closure is to verify the final outcome of the project and also close
the project once it is complete. Although it seems it is an easy process, it is not as it requires
detailed review of the project and the reviewer can also recommend to restart the project if one
or more of the deliverables are not met. Furthermore, project closure is a very detailed process
and it can be treated as a mini project as well. Generally, in most of the projects, the project

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managers are assigned to perform the review the project before closing but sometimes, other
stakeholders like technical manager, finance manager and others are also assigned to perform the
same and then report to the project manager.
In general, project closure is performed in two distinct steps – post project review and
stakeholder sign off. During the post project review, the project manager or the technical
manager will review the project to determine if all the requirements are met. This process varies
widely depending on the nature of the project. For instance, if it is a website development
project, the project manager will review the working features of the website from the admin and
customer end and if it is a building construction of the project, the project manager will review
the building design, interior and exterior decorations and others. Based on the review, the project
manager will use a checklist to check off all the deliverables that are fulfilled in the project. If
one or more deliverables are met, he will consult with other stakeholders and may penalize the
project team before restarting the project for completing the deliverables that are not fulfilled.
Once the project is reviewed and verified, the stakeholders sign off the project and it is finally
completed as the documentation is also submitted to the higher authority for verification.
The same process will apply for TESCO once the digital transformation project is
complete and ready to be handed over. However, it is a very large scale project and hence, it will
require a full team with sufficient expertise to review the entire project. This project is focussed
on the development of new digital transformation strategy for TESCO that includes technical
development as well as marketing plan preparation. Hence, the project review team should
include members from both technical development team and the marketing as well as the project
manager who will take assistance from the chosen team members while reviewing the impact of
the project on the company business and also to ensure the project has fulfilled all the

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requirements that have been set during the initiation process. Once the project is reviewed, the
detailed review report is to be handed over to the TESCO management for validation and
verification. Once the management approves the project outcome, it can be signed off and closed
by the stakeholders who have been deployed to manage and handle the project as per the
requirements.
Recommendations
Based on the analysis above regarding the digital transformation of TESCO, the
following recommendations can be suggested to the company for enhancing the quality of the
project.
 Before starting the project, the company must undertake detailed market analysis
in order to ensure there is high chance of success of the project financially.
 The company needs to provide certain amount of technical training to the
employees and also deploy a specific technical team who will manage and handle
the digital system only.
 The company is recommended to turn serious attention towards the risks
associated with the digital transformation including data security and customer
acceptability before rolling out the project.
Conclusion
This project is based on the digital transformation of TESCO who focusses on increasing
control on the retail and ecommerce market. TESCO is a leading retail chain company in UK
that also operates through online application and has experienced steady growth in business

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owing to popularity among the customers. However, the management department has observed
that the company is failing to adopt the technical and operational factors that are essential for
governing the activities. Considering the nature of requirements of the project, it can be said that
instead of launching a new product, launching of a new service is necessary at this point for the
company. The aim of the company is to design and develop innovation plan to increase the
market sustainability. It is also determined that the new innovation strategy will be more focused
on digital transformation strategies. In order to improve the shopping experiences of the
consumers the company in aimed to improving their business values and consumers loyalty as
well. It has been expected that the core values will help TESCO to bring significant changes in
the competitive market. The different driving forces that are constantly analysing by TESCO
include price, quality, and innovation range and customer services.

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