Leading through Digital Disruption Assignment Sample
Executive summary
The purpose of this report is to analyse the digital transformation of a company. The company taken for this purpose is Morrisons, which is a retail supermarket of the United Kingdom. Firstly, the company’s expectations of this transformation have been established. Secondly, its objectives and the threats and challenges faced by the company are mentioned. Based on this, techniques have been suggested to capture insights on the changes in the market regarding macroeconomic trends, competitors, and partners. In the next context, advice has been given for Morrisons to adopt an approach that would help it to make quick decisions. The decisions are expected to aid Morrisons to adapt to changes in the market rapidly.
Introduction
Businesses are developed today with the help of digital technology, implementing digital technology in the business increases the performance of the business. Digital transformation improves business performance in many areas such as sales, marketing, and customer service. Morrisons is one of the largest retail supermarkets in the UK, this company recently adopted “digital technology” into their business. “Morrisons” recently started online sales through companies’ official websites, which helps to expand its business into the global retail market.
Task 1: The case for change
Morrisons is looking forward to a digital transformation to diversify its presence in the online platform. Its competitors, that is, the retail giants of the UK market, have their presence both in the online as well as physical markets. The perquisites of an online market are one can advertise at a low price and reach a huge target market. After the emergence of the recent pandemic time, many people have opted online shopping (Loonam et al. 2018). Months of detention during pandemic has made everyone realise the advantages involved in digital marketing. Therefore, Morrisons’ objective is to remain ahead in the online race of retail markets and emerge as a competitive firm in this platform too.
Morrisons is currently taking up an IT transformation, which would enable it to transform completely within five years. It has invested approximately £ 310 million to innovate the structure of the company and the technology it currently uses. The target of this supermarket is to create small convenient shopping stores in different geographical locations and create a big data market online. It expects that the new programme would provide it with an overall view of customers visiting their site and the working of software and the entire system. The transformation programme is a “business change programme” for them to support future growth using IT systems.
The threats related to this transformation are that Morrisons would require to replace the old system entirely across its business. The decisions taken currently might not suffice the costs of hardware, infrastructure, and email handling even in near future due to uncertain market behaviour. Morrisons is a giant supermarket operating physically in the macro environment. Thus, it has a fear of losing the competitive market position while transforming, that it has achieved over the years.
Task 2: Capture Insights
Competitors
With the judicious use of technology, marketers can analyse the activities of its competitors easily. As online markets have to advertise their offerings virtually, they cannot prevent their rivals from not viewing the strategies that they are trying to portray to the target market. Morrisons can make an analysis using a “growth-share matrix” to classify its products against the “competitive landscape” of the online retail industry (Natorina, 2018). It will enable it to check the reactions of competitors in terms of improving their product’s attractiveness against Morrisons. Upon creating a BCG matrix, Morrisons would be aware of which part of a product line it needs to invest more and less. For instance, it would invest more on the “star” products of this matrix.
Figure 1: Growth-Share Matrix
(Source: Alvarenga et al. 2020)
Macroeconomic trends
In order to check the changes in macroeconomic trends, Morrisons can use the technique of trend analysis. It helps to scrutinise statistical data on the macroeconomic changes over a period. The data analysis gives valuable insights on making strategies to dominate the most recent market trends. Morrisons can collect relevant data on trends and put them under pre-defined matrices to understand the pattern in which they are taking place.
“Morrisons” also follow which strategies are chosen by the other competitors’ companies in the UK to maintain the “macroeconomic trends”. “Trend analysis” also helps Morrisons to maintain the economical growth of the company (Schwertner, 2017).
Partners – According to Correani et al.(2020), Recently “Morrisons” is contracted with TCS as a business partner, this partnership is contracted for 5 years. “Morrison” chooses “TCS” for maintaining the companies IT related works after “digital transformation” of their company. Adaptation of digital technologies helps to increase the company’s revenue through online sales of their product. This relationship between “Morrisons” and “TCS” helps this company to expand its retail business into the global business market through digital. The management of “Morrisons” easily identify that what is actually want the management of “TCS” for this partnership contract (Kotarba, 2018).
Task 3: Make fast decisions
“Morrisons” recently adopted digital technology in their business; the management of “Morrisons” chose a “quick step” approach to make a fast decision as per market requirement.
As per the “quick step” approach the company can easily handle their online marketing among the large number of customers across the world. This approach helps to promote the new product among the existing customers within a short period of time.
As per the latest CSR report of the company, “Morrisons” holds in the fourth position in the retail market as per sales, this approach helps the company to hold this position in this competitive business environment.
According to Correani et al. (2020), the “Quickstep” approach helps the management to easily adopt digital transformation into their business. The Retail Market in the UK becomes more competitive today; therefore this approach helps the management to grab new customers through online sales. This approach helps to develop not only operational performance but also help to maximize the profit (Domazet, 2018).
“Quickstep” technology helps the management to get any business decisions faster in the changing business environment; this technology also helps the marketing team to promote the new product to a large number of customers easily. This modern approach help to increase the company’s revenue in the last year, therefore the management always use this approach for making any important decision (Kotarba, 2018).
Conclusion
Digital transformation in the business is a very essential part of today’s business environment since its help to reduce human efforts and promoted the product to a large number of customers very quickly. “Morrisons” is adopted digital transformation in their business to maximize profit; however, this company also expands its retail product into the global retail market. Digital transformation such as online sales also helps to increase the company’s revenue and grab a new customer in the competitive business environment. As per the latest report, “Morrisons” increase the revenue at 10% after digital transformation in their business. Thus, the study states about the digital transformation benefits significantly.
Reference list
Alvarenga, A., Matos, F., Godina, R. and CO Matias, J., 2020. Digital transformation and knowledge management in the public sector. Sustainability, 12(14), p.5824.
Correani, A., De Massis, A., Frattini, F., Petruzzelli, A.M. and Natalicchio, A., 2020. Implementing a digital strategy: Learning from the experience of three digital transformation projects. California Management Review, 62(4), pp.37-56.
Domazet, I., 2018. Digital Transformation of Business Portfolio Through DCRM. Digital Transformation-New Challenges and Business Opportunities, pp.214-235.
Kotarba, M., 2018. Digital transformation of business models. Foundations of Management, 10(1), pp.123-142.
Loonam, J., Eaves, S., Kumar, V. and Parry, G., 2018. Towards digital transformation: Lessons learned from traditional organizations. Strategic Change, 27(2), pp.101-109.
Natorina, A., 2018. RETAIL IN THE DIGITAL TRANSFORMATION PERIOD: NATURE AND TARGETING. Economics and 2018 Finance, p.4.
Schwertner, K., 2017. Digital transformation of business. Trakia Journal of Sciences, 15(1), pp.388-393.
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