Msc management Leading Through Digital Disruption Assignment Sample
Introduction
In this report, a complete analysis of the use and benefits of digital transformation with organizational context is going to be discussed. Techniques to improve its business structure along with proper collaboration tools are going to be mentioned in this report.
Company Background
H&M is a renowned fashion brand that recently faced huge problems regarding its online and offline presence in the UK and in this report, it is going to be discussed (hmgroup.com, 2021).
Task 1: The Case For Change
Digital Transformation Strategy of H&M
H&M is a very popular fashion brand and in recent years it has increased its online stores along with a digital market facility that is their digital transformation strategy. H&M provides opportunities to collect purchases from their online stores to their customers and through 14 new countries it spreads its online platforms or stores.
Along with these purchasing opportunities it also includes the returning service for its customers. This is a strong move by H&M to become relevant in the digital era. Digital transformation needs to be incorporated for every business as it improves growth by reducing competitiveness in the digital market structure (Bertola and Teunissen, 2018).http://Msc management Leading Through Digital Disruption Assignment Sample
Problems faced by H&M in Digital Transformation Sector
In today’s time, digital transformation is adapted by every company for significant performance whereas H&M proceeds slowly in this adaptation process.
Figure 1: Statistic about stores of H&M
(Source: Charlton, 2020)
In 2018, around 140 stores of H&M have been closed and a steady downfall has been observed in the numbers of new opening stores (Charlton, 2020).http://Msc management Leading Through Digital Disruption Assignment Sample H&M faces huge marketing sales downfall along with threats from rivals in both online and offline market strategy.
Objectives of H&M
The objectives of H&M want to achieve through digital transformation are:
- To achieve a high market share structure
- To evaluate a high online and offline selling structure
- To achieve sustainable competitiveness
Task 2: Capture Insights
Recommending Techniques to detect market change for H&M
Detecting market trends is very much important as it helps a company to evaluate the exact understanding of the new market structure and market trend. Here are some techniques that H&M can apply to detect market change.
- Tracking Influencers and Publishers of the Industry
- Research about the trending reports and up-to-date of the Fashion industry
- Understanding the demand and choice of customers
- Analysis of industry’s behaviour towards digital access
- Observe the rivals
H&M can track the fashion industry influencers along with publishers as it helps to detect t the exact trend and change process of the market. Articles and magazines are helping to understand the development programs within the industry (Alsalemi et al.2019).http://Msc management Leading Through Digital Disruption Assignment Sample
H&M should research about the trending reports that going on in the fashion industry and that makes it more up-to-date. Analysis of digital access in the market along with the participation of rivals needs to be monitored by H&M to get a proper result to understand the market trend.
Analysis of the behaviour of the fashion industry is important to take care of as it helps to understand changes that the current global market operates. Concerns from customers is another big factor to understand the exact point of market change that will help H&M to incorporate this factor into its business structure.
Insight capture about Competitors, Macroeconomic trends
H&M faces strong competition from its rivals like Zara, ELLE and many others. There are some techniques through which H&M can look insight into its competitors.
Analysis of their ranks in the global context
There is a very useful app called AccuRanker which can help H&M to track its rivalries. This app gives complete knowledge about the position of a particular company and helps H&M to evaluate the performance key factors of its rivals.
Figure 2: Working Pattern of AccuRanker
(Source: accuranker.com, 2018)
Uncover the key factors of competitors
There are many tools and app like SpyFu which helps to uncover the key factors of rivals along with data of microeconomic trend. H&M can track the keywords of its rivals and it can use the missing keywords of its rivals for its better performance.
Track their invention and products
Tracking of the rival’s innovation process or a new idea of products is very important as it can help H&M to evaluate a proper strategy for it. The monitoring process of new products helps a company to understand what it needs to do to become more relevant (Yost and Cheng, 2021). http://Msc management Leading Through Digital Disruption Assignment SampleTracking micro-economic trend is necessary as it helps H&M to understand its position and how it can develop its structure.
Monitoring competitor’s articles and newsfeed
Examining the newsfeed, articles or managing about the rivals can help H&M to understand their next step in the innovation process.
Analysing properly the news, financial websites and publishers of the industry helps to understand the microeconomic trends which help to understand the proper market trends.
Task 3: Make Fast Decisions
In Today’s world is changing pretty fast so is changing business environment, business needs to adapt and overcome to crush the competition. Below are the points H&M can work on to increase their decision-making speed to adapt to the market.
Recognizing trends
The most important thing in a fashion brand like H&M is to recognize popular fashion trends. There are some uncontrollable factors like political, socio-economic factors, religious factors which determine and influence on spending patterns of consumers. It’s important to recognize trends and adapt to newer technologies to adapt to the market (Bifet et al. 2017).http://Msc management Leading Through Digital Disruption Assignment Sample
Being flexible
In order to change and adapt to new market situations, it is important to be welcoming to change and flexible (Vassileva, 2017). http://Msc management Leading Through Digital Disruption Assignment SampleSome tactics like going light with logistics, incrementing online presence rather than physical presence, partnership with local stores can be implemented by H&M.
Foresight
In any market, the most important thing is to foresee the future circumstances while focusing on the present. H&M should hire experts to monitor and predict future market trends implement them in its production process.
The role of leadership of the company is going to be the determining factor on its foreseeing abilities.
Figure 3: Fast Decision-Making Criteria
(Source: created by the researcher)
Interdepartmental communication
In an organization, it is most important to quickly understand any problem and pass its solution between different departments. Having very strong communication between the different departments of the company will help H&M to get a focused view of the business. Improving a company’s internal process is what makes accompany ahead of global competition (Aydiner et al. 2019).http://Msc management Leading Through Digital Disruption Assignment Sample
Unique approach
In the global fashion market, there are many brands competing for market share but the company with a unique approach will beat its competitors by a stiff margin. While expanding in the global market adopting not only different business strategies but also to different cultures is very important.
Decentralizing
Companies like H&M which are global brands have many branches in different parts of the world and face different problems that are very region-specific. Rather than sending them to headquarters branches with enough resources should be given the independence to solve their problems cutting short the communication time.
Task 4: Acquire and Engage Talents
In this digital era, a company is lagging behind if it is not using the technologies to digitalize its productions. Below are some points for H&M to digitalize its workforce:
Taking feedback
The most important aspect of transporting your workforce is to ask for their feedback on what should be done more to digitise the company, what are technologies they are comfortable working on.
A global brand like H&M can use these to cast individual task and responsibilities on the employees based on their preferred method of digitization.
Proper Recruitment
In this digital age companies no longer need to consider physical hurdles in the process of production. H&M like big brands have enough global reputation to hire their employees from even the furthest of areas without even having a trust issue. Some of the work can be outsourced to some other countries to cut the cost of production taking advantage of the huge competition in those parts of the world. The digital workforce can be a problem solver in creating a competitive team (Frankiewicz and Chamorro, 2020).http://Msc management Leading Through Digital Disruption Assignment Sample
Figure 4: Acquiring Talent
(Source: Created by the researcher)
Creating expertise
Only creating a digital workforce is not enough H&M is recommended to work on how much expertise does the employee has in those technologies and making sure they can use these to effectively increasing efficiency and revenue of the company.
Creating a separate incentive for personals who want to level up their knowledge and expertise (Karacay, 2018).http://Msc management Leading Through Digital Disruption Assignment Sample
Proper Strategic methods
Employees should be given the incentive to digitalise like showing them how digitalization helps in creating workspace efficiency. H&M can also promote personals who are digitalizing swiftly creating an incentive for every other employee.
Creating right workforce
It is important to hire a talented and competent team in order to increase H&Ms efficiency and competitiveness. H&M can hire people from all over the world to incorporate them into their company talent pool as the physical distance is no longer the problem.
Task 5: Create A Digital Ready Culture
Digital Ready Culture refers to a mix that reinforces the value of a practice that helps to detect a digital business environment. Some leaders want to there are some leaders who want fast-improving the digital transformation process and from that digital culture flourish.
Both formal and informal leaders of H&M can follow these three strategies that help it to incorporate proper digital-ready culture (Refer to appendix 1).
Develop best practices in the organization
Cultivation of rapid culture within H&M along with constant experiment and data-oriented decision-making ability. Data-driven culture experiment within the organization helps H&M to conduct stability and create a stable digital culture which helps to evaluate more innovation and self-growth.
This practice data-driven culture is very important to evaluate potential change (Westerman et al. 2019).http://Msc management Leading Through Digital Disruption Assignment Sample Practices of new developed AI and digital tools can be incorporated by H&M within its organizational context. Practices of digital culture help to create a possibility towards innovation.
Promoting Integrity
Creating a digital-ready culture connection between the partners, employees and shareholders are very important as it helps to create a perfect digital-driven culture.
H&M can practice integrity within its organizational structure which includes freedom from strict rules. Integrity helps to create a culture between the hierarchies which helps in the incorporation process of the data-driven structure.
Orient Practice Associates with Digital Structure
Today’s structure of the world is totally related to digitality and that is why adopting new approaches are very much needed. H&M can practice these types of demands of new approaches by focusing on the customers’ demand and obsession.
Along with the evaluation of customers’ needs experiment on digital evaluation aligned with customers demand needs to be focused on by H&M. Digital practice through customers’ concern is important to create digital-ready culture (Wokurka et al. 2017).http://Msc management Leading Through Digital Disruption Assignment Sample
Task 6: Steer Collaboration
There are various online collaboration tools that help leaders to evaluate the proper decision-making process. H&M faces digital transformation hazards throughout its business year and through these business tools, it can improve these problems.
Communication, Software development, Design, Project management are some types of collaboration tools that can help the leaders of H&M to solve their problems (Dai et al. 2020).http://Msc management Leading Through Digital Disruption Assignment Sample
Communication
Communication is a very important collaboration tool as it helps to conduct effective productivity with the understanding of the proper digital-based business process.
There are various types of communication online tools that can help H&M to conduct meetings which betterment. Slack and Chanty are two popular tools that H&M can use for development.
Slack: It is a very popular communication tool
Figure 5: Slack
(Source: slack.com, 2021)
Chanty: It gives allowance to collaborate, small teams
Figure 6: Chanty
(Source: chanty.com, 2021)
Software development
Software development is another important tool that H&M needs as it helps it to develop proper online platforms and conduct a sustainable online purchasing process.
There are some online tools that help to conduct a proper software development process. Among all these, Bitbucket and GitHub are two popular Software development tools that H&M can incorporate.
Bitbucket: It is a software development tool
Figure 7: Bitbucket
(Source: bitbucket.org, 2021)
GitHub: It is a well-known collaboration tool
Figure 8: GitHub
(Source: github.com, 2021)
Design
Being a fashion brand H&M needs this collaboration tool as it helps to create a modern design that helps to grow its market sales. There are some online tools that help to create a design. Among them, Sketch and InVision are very much popular which H&M can use.
Sketch: It is a digital collaboration app along with UI
Figure 9: Sketch
(Source: instapage.com, 2021)
InVision: Through this collaboration of design can be performed
Figure 10: InVision
(Source: instapage.com, 2021)
Project management
Project management is necessary for H&M as it helps to evaluate the proper process of management for its organizational growth. There are some online tools that help to conduct a proper project management structure.
Among them, Wrike and Asana are two popular online project management tools that can H&M use for their development.
Wrike: It is a collaboration tool where employees can connect for projects
Figure 11: Wrike
(Source: instapage.com, 2021)
Asana: It is the oldest collaboration online tool
Figure 12: Asana
(Source: instapage.com, 2021)
Task 7: Select Your Leaders
Competitive and able leadership is the most important aspect of a company its some of the key attributes for effective digital leadership:
Goal-driven
The most important trait in a leader is to keep the goals of the company in mind and work towards them. H&M should promote goal drive and purposeful leadership.
Future thinking
Leader of the H&M group should be forward-thinking and clever in order to survive and flourish in this competitive market. Predicting the market with the help of different digital parameters would help H&M futureproof their product.
Process building
Leaders should be able to deal with ineffective people and process toughly. To fix some non-profitable and useless process and replace them with the effective and revenue-generating process. Companies can work on how effective persons positively affect the work environment (Guinan et al. 2019).http://Msc management Leading Through Digital Disruption Assignment Sample
Figure 13: Behaviour of leaders
(Source: created by the researcher)
Calculative risk takers
Leaders are required to have avid risk-taking behaviour to make profitable and apart from market decisions. However, H&M is recommended to focus more on calculative risk-takers to keep the company stable and also competitive.
Calculative risk takers also have the ability to foresee and predict future trends in market dynamics.
Collaboration and cooperating
In order to survive in the fast fashion industry H&M needs to have leaders who not only can crush competitors but who can also make functional collaboration from time to time to maintain market share and also make cooperate with different branches and mall vendors that increases market share and also healthy business environment.
Conclusion
In this report, the overall idea about the downfall of the market share of H&M due to lack of digital incorporation has been discussed. Its digital transformation, problems and objectives have been incorporated within this report.
Insight process of rivals and micro-economic trends have been recommended in this report. This report included an overall idea about talent engagement, collaboration tool and digital-ready culture. The behaviours of leaders that are required for digital incorporation has been discussed through this report. This report gives an overall idea about the proper management of digital transformation.
Reference list
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Alsalemi, A., Sardianos, C., Bensaali, F., Varlamis, I., Amira, A. and Dimitrakopoulos, G., 2019. The role of micro-moments: A survey of habitual behavior change and recommender systems for energy saving. IEEE Systems Journal, 13(3), pp.3376-3387.
Aydiner, A.S., Tatoglu, E., Bayraktar, E. and Zaim, S., 2019. Information system capabilities and firm performance: Opening the black box through decision-making performance and business-process performance. International Journal of Information Management, 47, pp.168-182.
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