Impact of digital technology on Tesco PLC

Essay > Words: 12459 > Rating: Excellent > Buy full access at $5

MANAGING A SUCCESFULL BUSINESS PROJECT – Impact of digital technology on Tesco PLC

Impact of digital technology on Tesco PLC

Name of the Student:

Student ID:

Table of Contents

Part 1 (P1, P2, P3) 3

Project Management Plan 3

Part 3 (P5, P6, P7) 26

Performance Review 26

Appendix 34


1.1 Background

In the modern world of 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 more tough, 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 specialisation.

More and more tech-savvy consumers – requiring less technical assistance, less frequently (Schwalbe, 2015) – are now getting used to get 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 enhancement of the operational activities and roles.

Tesco PLC, headquartered in Hertfordshire is a multinational organization operating in the retail industry (, 2018). Apart from the retail business, Tesco has diversified their 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, online catalogue of products, online ordering & sales, inventory, feedback from customers, online banking – all digital processes implemented by Tesco in their everyday running of their business arms – led to a very high degree of digitalisation 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 in order to respond to Tesco’s senior management request to assess the impact of digitalisation on the business activities.

1.2 Problem Statement

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

    1. Project Strategy

The project strategy is to:

  • Research information available online and in written literature in order to identify the main elements and trends in business digitalisation and the digital technologies available
  • Primary and secondary research
  • Research and identify Tesco’s main departments (according to the organisational 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 of it on business
  • Survey all staff from across all departments
  • Enrol Tesco’s management support to achieve the electronic completion of the survey by at least 300 staff
  • Analyse 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 the digital technology on TESCO.

To achieve this purpose, mixed methodsare 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 outthrough semi-structured face to face interviewswith Tesco’s senior management.

The quantitative research was carried out using electronic questionnaires as the main survey tool, alongside with personal interviews.

1.4.2 Objectives

  • Identify the impact of cloud computing on the costs of the IT and on the data safety (admin, IT – the departments with a useful input in this matter)
  • Identify the impact of CCTV monitoring on safety within the premises and on 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-check out 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 on 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 organisation (Human Resources and Finance – most able to provide this information)

The objectives stated above are SMART:

Specific The aim is to understand the impact of the digital technology implemented so far on the company’s operations, customers, communication, costs and profits.
Measurable Each technology implemented so far will be connected to the departments it impact, creating a clear mapping of the impact on the organisation’s departments and on its relationship with customers and markets
Achievable The information needed to assess the impact of digital technology does exist. Exhaustive primary, secondary, online and library research will reveal all the connections between the digital technologies implemented and the impact on each aspect of the business.
Realistic The objectivesare realistic: the digital technology is in place and it does affect the business – all the data for the research is available, it only requires a complex set of activities to extract and summarise it, hence the current project.
Time The three months allocated for the completion of the project is sufficient for preparation, design, execution,analysis and reporting

1.5 Project assumptions

Project assumptions are as followed:

  • Tesco Plc have 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
    • Intranet
    • etc.
  • Tesco invested in digitalisation in all departments and processes


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 organisation.

This insight and knowledge will enable the management to adapt the structure of the company to the challenges and transformation brought about by digitalisation, to design efficient, streamlined, cost-effective processes and to identify the skills needed in future to further support the process of modernisation through digitalisation.

    1. Included Scope

The included scopes of the project are:

  • Secure £3,925 – the cost of the project, as presented in the section 2.4.4Cost,in order to be able to conduct the research and finalise the project with a written report. The amount above will cover £3,510 – cost of labour during the project, as well as consumables, services and transport costs – an additional £415
  • Primary and secondary research to identify Tesco’s organisational 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)
  • Printer is required in order 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 digitalisation had on them and on their interaction with Tesco as a business
  • Information regarding the impact of digitalisation 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 e-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.
  • Analyse, 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 finalise within 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 of 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 thebreakdown of the elements of costs presented in the tables below:

Activities Hours worked Cost per hour (£) Total (£)
Clarifying with the client (Tesco) the project’s output (objectives, deliverables, etc.) 20 15 £300
Researching the organisation (structure, staff, etc.) 40 15 £600
Designing the survey 30 15 £450
Launching the survey online/seeking to maximise the response rate 10 15 £150
Organise responses by departments and hierarchy 15 15 £225
Data entry 20 15 £300
Analysis 50 15 £750
Summarizing the findings into the final report 45 15 £675
Present the report to Tesco’s management 2 15 £30
Printing of supporting materials 2 15 £30
Labour cost 170 15  £3,510
Equipment, consumables, services and travel costs Units Unit cost Total (£)
Computer and printer 1+1 £0+£0 £0
Copier paper 5 packets (*500 sheets A4) £3.00 £15
Ink cartridges 6 £20 £120
Pen 20 £1.00 £20
Printing 400 sheets (one side) £0.30 £120
Transport 20 journeys £7.00 £140
Total £415

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 organisational 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 minimum 300 responses, which should include all departments
  • Creating the final report for Tesco’s management regarding the impact of the 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 impossible to link responses to functions or individuals

2.7 Quality Management

2.7.1 Quality Planning

The main purpose of the section 2. PROJECT MANAGEMENT PLAN (P1) of the project is to ensure that through detailed planning of activities, definition of measurable deliveries and timescales the project fulfils the client’s requirements.

2.7.2 Quality Assurance

The clear definition of the deliverables of the project, the detail planning of the activities and the project schedule will ensure that the final report is delivered on time and it 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, in order 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 about all the possible risks and threats in case of implementing and developing the use of digital technology. There can be several risks and threats that can be arouse in the time of doing the research. As the communication system and primary research of the project is based on the internet so there may be a minor chance 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 the Tesco Plc.’s internal factors related with the usage of digital technology
  • Security related risks at the vendor
  • Regulation and legislation related risks
  • Location related risks
  • Financial risks

2.3 Risk Assessment Plan

No. Date
Owner Risk Probab
Effect on Project Risk Reduction Actions
Proposed & Actual
If it happens: Triggers & Actions
Proposed & Actual
1 10th September ,2018 The project manager Financial risks High High The estimation of the research is not very high, so there is a chance that the estimated cost for this research can be overflew in the time of researching By proper researching and survey of the market value the researcher needs to make a proper cost estimation planning and must look after on the ongoing cost of the research that the estimation will not overflow much Triggers

Cost reduction strategy will be used in this regard


For implementing this strategy, the management team of the research should assess the cost reduction potential, develop a cost reduction plan, wage cuts and program implementation

2 14th September,2018 The researcher Human Risk Medium High If the subordinates related to the project is not well known about the project then they will be unable to gather all the necessary information for the research and it can make the research unsuccessful or incomplete Through proper training before starting the research and proving proper guidelines to the subordinates on the research time can help the researcher to reduce this problem Triggers:

Identification of the employees those are not comfortable in using digital technology


Planning and execution of a training process

3 1st

October, 2018

The researcher Security Risk High High This can be massive threat to the research as all the documents and information during the research time must be confidential so any kind of issues on the information prevention can led the research to be incomplete and unsuccessful All the essential documents and information must be well protected and must be maintained by the research himself Triggers:

Slight leakage of data or manipulations in the data


identifying the loophole and fixing it

4. 2nd October, 2018 The researcher Existing Risk High High In case of this risk the procedure of interview to gather the necessary information can be taken into account because if any participants provide the wrong information then it can lead the research to wrong outcome Proper cross checking and taking the interview from the trustworthy persons can help to reduce this risk Triggers:

Continuous monitoring of the research progress


immediate actions to be taken to safeguard the data

  • Expired risks
No. Date
Owner Risk Happened? Impact
Effect on Project Risk Reduction Actions
Proposed & Actual
If it happened: Triggers & Actions
Proposed & Actual
1 10th May , 2018 The researcher and the project management team Data collection risks 10thMarch, 2017 The risk is related to the subordinates of the research procedure who do not have a clear idea about the digital technology This risk can led the project towards an incomplete and unsuccessful outcome as the subordinates will be unable to gather proper information due to their lack of knowledge The actions are communicating with the suppliers and vendors about the necessities of Tesco Plc. In order to avoid this kind of risks in future, the researcher should communicate with them on a regular b.............

Type: Essay || Words: 12459 Rating || Excellent

Subscribe at $5 to view the full document.

Buy access at $5

We will write a custom sample essay on
Impact of digital technology on Tesco PLC
specifically for you
for only $7.00/page