Analysis of the Impact of Digital Technology on Tesco

Analysis of the Impact of Digital Technology on Tesco

AIMS AND OBJECTIVES (P1)

1.1 Background

In the modern world of the post-globalization era, when the competition to:

• deliver ever cheaper and better quality products and services with support from the latest technologies
• know your clients and what they want
• deliver the products and services when and where the clients need them
• communicate instantly with suppliers, stakeholders, and clients
• reach new markets and new clients on a global

is becoming tougher, it has become obvious that companies that do not incorporate digital technologies in their everyday activities will be left behind and will lose their competitive edge in a business environment in which reaching the client a nanosecond before your competitors and a mile farther than them represents the difference between being in our out of business in your specialization.
More and more tech-savvy consumers – requiring less technical assistance, less frequently (Schwalbe, 2015) – are now getting used to getting what they want the instant they want it, and patience or understanding errors is not something naturally occurring to them in their quest for what they want or need.
Therefore, companies have started implementing modern technology in their daily working operations which has led to the enhancement of the operational activities and roles.
Tesco PLC, headquartered in Hertfordshire is a multinational organization operating in the retail industry (tesco.com, 2018). Apart from the retail business, Tesco has diversified its product portfolio and has ventured into new business lines like telecom, financial services, and others. It is the ninth-largest retailer in the world.
Self-checkout points, the online catalog of products, online ordering & sales, inventory, feedback from customers, online banking – all-digital processes implemented by Tesco in the everyday running of their business arms – led to a very high degree of digitalization and use of web-based applications, many of these software solutions, associated hardware and resources being procured through cloud computing.

1.1 Project Definition

The current project is being developed and conducted to respond to Tesco’s senior management request to assess the impact of digitalization on business activities.

1.2 Problem Statement

Following an intense process of modernization and advancement through digitalization, Tesco’s management has to learn how this transformation has impacted costs, efficiency, accuracy, customer base, customer service, profit, data protection, safety and security, talent recruitment.

Project Strategy

The project strategy is to:

• Research information available online and in written literature to identify the main elements and trends in business digitalization and the digital technologies available
• Primary and secondary research
• Research and identify Tesco’s main departments (according to the organizational chart)
• Research and identify the digital technologies implemented by Tesco so
• Design an e-survey (via SurveyMonkey cloud tool) meant to identify the exposure to and the interaction with digital technology and the effect it on business
• Survey all staff from across all departments
• Enroll Tesco’s management support to achieve the electronic completion of the survey by at least 300 staff
• Analyze and interpret the responses received electronically and compile the final report
• Present the report to Tesco’s senior management

1.4 Project Objective
To identify and assess the impact that digitalization had so far on Tesco as a business.

1.4.1 Purpose
The purpose of this study is to investigate the Impact of Digital Technology on TESCO.
To achieve this purpose, mixed methods are to be used, including quantitative and qualitative methods. As both have advantages and disadvantages, using a combination of both methods capitalizes on the strength and reduces the weakness of every method. The approach helps the researcher to collect the information.
The qualitative research will be carried out through semi-structured face-to-face interviews with Tesco’s senior management.
The quantitative research was carried out using electronic questionnaires as the main survey tool, alongside personal interviews.

1.4.2 Objectives

• Identify the impact of cloud computing on the costs of IT and data safety (admin, IT – the departments with user input in this matter)
• Identify the impact of CCTV monitoring on safety within the premises and loss through theft (Security, Retail and Finance departments can provide the best input)
• Identify the impact of using social media (i.e. Facebook) and the retail website on the broadening of the customer base, on sales volumes, and on profits (Marketing, Sales, Admin, Finance can provide info)
• Impact of self-checkout points on customer satisfaction, operational costs, stock accuracy, and sales volumes. Are there disadvantages also? Retail, Stores – departments best places to respond
• Identify the impact of inventory software and hardware (i.e. hand-held terminals) on stock accuracy, stock movement, and sales (Retail, Stores, Admin – can provide useful input)
• Identify the impact of on-line job recruitment via Tesco’s own website (the Careers section) on recruitment costs and on the supply of the skills needed by the organization (Human Resources and Finance – most able to provide this information)

The objectives stated above are SMART:

1.5 Project assumptions
Project assumptions are as followed:

• Tesco Plc has already implemented a wide range of digital applications in the everyday run of their activities:
  • cloud computing
  • self-checkout machines
  • CCTV monitoring systems
  • software-driven stock reception, movement, and inventory
  • fidelity and saving schemes for customers (Tesco cards)
  • online buying through their website tesco.com
  • Intranet
  • etc.
• Tesco invested in digitalization in all departments and processes

PROJECT MANAGEMENT PLAN (P2)

2.1 Project Scope Statement

The scope of the present research is to reveal – through surveying Tesco’s employees from all major departments – the deep transformations happening within the organization.
This insight and knowledge will enable the management to adapt the structure of the company to the challenges and transformation brought about by digitalization, to design efficient, streamlined, cost-effective processes, and to identify the skills needed in the future to further support the process of modernization through digitalization.

Included Scope

The included scopes of the project are:

• Secure £3,925 – the cost of the project, as presented in section 2.4.4Cost, to be able to conduct the research and finalize the project with a written report. The amount above will cover £3,510 – the cost of labor during the project, as well as consumables, services, and transport costs – an additional £415
• Primary and secondary research to identify Tesco’s organizational structure and digital technologies implemented so far
• Reference information available online and on specialist magazines regarding digital technologies available for businesses in the retail sector
• The project requires the use of a computer on which to build the electronic survey form (using Survey Monkey – the free cloud software available online)
• A printer is required to be able to print off hard copies of the final report and any other documentation required during the completion of the project
• A mobile phone will also be used for the necessary communication with Tesco management

2.3 Excluded Scope

The excluded scope of the research includes:

• Customers’ feedback about the impact the digitalization had on them and their interaction with Tesco as a business
• Information regarding the impact of digitalization on rival companies
• Research and recommendations on new, emerging digital solutions
  1. Performance, cost, and timescales

2.4.1 Performance
The elements of performance measured along the project’s timeline are:

• Design a can survey using the SurveyMonkey application
• Send the e-survey out via email to all staff members (with support from the It department and the company’s management)
• Receive back at least 300 completed surveys in total, ideally from each department.
• Analyze, interpret and summarise the results
• Write and present the final report

To monitor the evolution of the project and its milestones (measurable achievements) and to keep it within the delivery deadline I will maintain an Activities Logbook.

2.4.2 Timescale
The project is scheduled to be finalized then 3 months from the date the contract for the research has been signed.

2.4.3 Time management
A project schedule (Gantt chart) will be designed, to include:
– all the activities and actions necessary for the project
– the sequence and the timing of how these activities and actions will be completed depending on their inter-dependence (data input/output) with the other activities
Daily monitoring of the Gantt chart must ensure that the project is on course to be finished by the expected deadline.

2.4.4 Cost
The total cost of the survey is £3,925, with the breakdown of the elements of costs presented in the tables below:

2.5 Deliverables

The deliverable of this project are:

• The identification of digital technologies implemented so far in Tesco’s departments and processes
• The identification of Tesco’s organizational structure (main departments)
• Designing the e-survey form via the SurveyMonkey (free) cloud-based software
• Emailing the survey to all Tesco’s employees
• Receiving back a minimum of 300 responses, which should include all departments
• Creating the final report for Tesco’s management regarding the impact of digital technology and how it transformed the business and the challenges brought by this transformation that the company may need to address in future

2.6 Success Criteria

• Completing each phase of the project according to the project’s schedule (Gantt chart)
• Complete the project within the budget calculated and allocated
• Complete the project within three months from the date the research contract was signed by both parties (Tesco and myself – the researcher)
• Design a questionnaire able to inter-connect departments, roles, interaction (communication), digital technologies in use, and their impact on processes
• Collect the complete responses to the e-survey from at least 300 staff from all major departments and all types of responsibilities
• Maintain a logbook to ensure an audit trail of the progression of the project and to produce observations and conclusions valuable in the run of other projects in future
• Ensure the confidentiality of the respondents to the e-survey by creating the final report in a manner that will make it impossible to link responses to functions or individuals

2.7 Quality Management

2.7.1 Quality Planning
The main purpose of section 2. PROJECT MANAGEMENT PLAN (P1) of the project is to ensure that through detailed planning of activities, the definition of measurable deliveries, and timescales the project fulfills the client’s requirements.
2.7.2 Quality Assurance
The clear definition of the deliverables of the project, the detailed planning of the activities, and the project schedule will ensure that the final report is delivered on time and contains the information the customer commissioned the researcher to obtain.
2.7.3 Quality Control
During the execution of the project the deliverables and the delivery times, as well as the quality of the information produced at each step of the project will be compared against the measurable elements of the project – as defined at the beginning – and against the timescales agreed in the Gantt chart.
The Project Logbook will include the actions and the results completed and achieved, to capture the flow of the project, as well as ensuring the traceability of/responsibility for everything done so far.

2.8 Risk and Resources

The project management team related to this research needs to be aware of all the possible risks and threats in the case of implementing and developing the use of digital technology. There can be several risks and threats that can be aroused at the time of doing the research. As the communication system and primary research of the project are based on the internet so there may be a minor change to get some wrong information about the research that is based on the Impact of Digital Technology in Tesco Plc. The possible risks and threats for this research can be described as follows:

• Wrong information from the internet about Tesco Plc.’s internal factors related to the usage of digital technology
• Security-related risks at the vendor
• Regulation and legislation related risks
• Location-related risks
• Financial risks

2.9 Risk assessment Plan

2. 10 Implementation Plan

To make the implementation planning for the research based on the Impact of Digital Technology on Tesco Plc, several steps are required to be implemented properly. A work-breakdown structure along with a Gantt Chart can be described as follows:

2.5 Communication Plan

A proper communication system can be considered as the primary source to achieve information in any work. In the case of this project, the researcher needs to make proper planning in a communication system that there will be no interruption at any point in time. It is a crucial responsibility of the researcher to make proper communication with the employees of the organization, stakeholders of this research, and many others.

P4. Qualitative and Quantitative research methods theory

The present project involves a methodology section as it helps in guiding the process of gathering and collecting information. The researcher chose the positivism philosophy as it helps in analyzing the real facts, data and information gathered from the market. Taking a cue from the philosophy chosen, the researcher has opted for the deductive approach as it allows analysis of the existing theories, models, and journals and their findings to deduce information.
As per the choices of the methods above, the primary research methodology has been adopted. The primary research methodology involves gathering data directly from the primary sources by the researcher himself. This method involves two techniques – qualitative and quantitative. The qualitative technique is used to gather information by conducting interviews and discussions. On the other hand, the quantitative technique involves gathering information from surveys and focus groups and deals with numerical and statistical data.

Part 3 (P5, P6, P7)

Performance Review

Quantitative analysis
1. What is your age?
Figure 4: Age of respondents
From the data, it can be stated that the among 50 respondents, 18% employees fall under the age category of 22-25; 22% in 26-29; 245 in 29-32 and lastly, 36% in the age category of 33 and above. As per the data gathered, it can be analyzed that Tesco has managed to attract young talent in their company.

2. Please specify your gender.
Figures 5: Gender of respondents
From the above data, it can be stated that among 50 respondents, 32 respondents are male whereas the rest of the respondents are female. From the data gathered above, it can be seen that 64% of the employees are male and 36% are female.

3. How far do you agree that Digital Technology has helped in providing better customer services?
Figure 6: Benefits of Digital Technology in customer services
From the analysis among the 50 participants, 40% of them believe that digital technology will help the organization to be more efficient and effective for its production and consumer services. On the other hand, 14% of the participants believe that the use of digital technology hurts the working environment of Tesco Plc.

4. What kind of digital technologies Tesco is using?
Figure 7: Different digital technologies used by Tesco Plc.
From the above analysis, it can be described that among 50 participants of the research survey, 50% of them believe that Tesco Plc. is using CCTV as digital technology and 30% of them believe that Tesco is using a self-checkout system.

5. What are the challenges that can be faced while using digital technology?
Figure 8: Challenges faced by using digital technology
From the chart it can be described that among the 50 participants, 28% of them believe that there will be a performance problem that can be faced by the researcher while making the research on the Impact of Digital Technology of Tesco Plc.

Qualitative analysis

Q1. How has Digital technology helped Tesco plc?
Manager 1: As per Manager 1, the usage of digital technology helped the organization greatly. Digital technology helps an organization be more efficient and effective in its production rate and customer services.
Manager 2: According to Manager 2, digital technology will help the researcher and organization develop its business operations. For example, by using the presentation website the authority of the organization can communicate with their employees.
Manager 3: In the case of Manager 3, he stated that digital technology could help Tesco Plc. for its business purpose. For example, through an online website, the organization can able to get the consumer’s feedback much faster.

Q2. Did you face any problems and challenges in using digital technology?
Manager 1: In the context of Manager 1, the main issue of digital technology is maintenance. If the server of the control room fails then it will be impossible to monitor activities.
Manager 2: As per Manager 2, the main issues will be security-related. Online websites can be hacked by other rival organizations or any other person who can manipulate the information.
Manager 3: In case of the Manager 3, the issue of using digital technology is very minor such as in the time using self-checkout, if the checking system gets fail then there will be a chance for the employees to bunk the office.

Recommendations:

The researcher can offer better service to the readers with the help of this research based on the Impact of Digital Technology in Tesco Plc. Therefore, the researcher needs to gather more data and accurate information to satisfy the requirements of the readers. It can be recommended that Tesco Plc. needs to hire more professionals along with providing proper training to its employees about the usage of digital technologies such as CCTV, self-checkout, sales websites, and many others. It can also be recommended that the organization needs to take care of all the essential and important documents properly and the authorities need to check all the digital systems properly.

Reflection

Reference list

Schwalbe, K., 2015. Information technology project management. Cengage Learning

Walker, A., 2015. Project management in construction. John Wiley & Sons.

Tesco.com (2018). Tesco – Online Groceries, Homeware, Electricals & Clothing. [online] Tesco.com.

Appendix1

Quantitative analysis
1. What is your age?

2. Please specify your gender.

3. How far do you agree that digital technology has helped in providing better customer services?

4. What kind of digital technologies Tesco is using?

5. What are the challenges that can be faced while using digital technology?