Leading through Digital Disruption
Digitalization is a tool that helps a company to achieve success in the current digitized business world. The process of digitization provides various prospects for various companies and has even helped achieve competitive advantage by boosting business efficiency (Autio et. al. 2021).http://MSc Management Leading through Digital Disruption Assignment Sample
Many business leaders of the world claim that digital transformation is the path to the success of the company. On the other hand, transforming any company into a digital model is not easy but requires effort. In this report, Tesco is taken as an organisation which is a British multinational retailing UK-based company.
This study discusses why the company is digitally transforming and initiatives to be taken and digital technologies that can be used by Tesco to gain digital business agility. This report also focuses on how the company can create a digital-ready culture and the type of leadership style that supports the company’s digital transformation.
Task 1: The Case for Change
Tesco is one of the major multinational companies of the UK, and it is also considered the largest general merchandise and grocery retailing company with its headquarters at Welwyn Garden City, England.
It is the leading multination retailer in the world with more than 360,000 colleagues to serve customers every day with healthy, affordable, and sustainable food products to help customers to enjoy a quality life (Tesco PLC, 2021).http://MSc Management Leading through Digital Disruption Assignment Sample It carries out business through online and multi-format stores.
The company is operating stores in various formats that are differentiated by range and size of products including small, large, dotcom only, and non-stop.
Covid-19 has forced many businesses to challenge the current situation. So, to align business activities to meet the needs of customers, Tesco has incorporated innovation to encourage digital transformation.
The pandemic has faster the expansion of e-commerce towards customers and types of products. The emergence of e-commerce has provided customers with access to different products at home.
As Tesco offers food products to its customer, so it is really to transform its business and shift online to sell its products by abiding by Covid-19 norms (Purba et. al. 2021). http://MSc Management Leading through Digital Disruption Assignment SampleTesco has also ensured safety for its employees and customers by maintaining a proper physical distance.
In addition to that, the company has served society to deliver necessary food products to people in need. Now Tesco runs its business operation by considering Covid-19 norms.
Tesco has invested a huge amount of money in e-commerce and offers a mobile app as well as a site for the United Kingdom. The company now also offers e-commerce services in more than 70 stores across the UK.
This technological shift now allows customers to order online from their mobile devices or PC and can collect their groceries in-store (Sumarliah et. al. 2021).http://MSc Management Leading through Digital Disruption Assignment Sample In addition to that, Tesco instead of building a distinct e-commerce platform for every country company operates in, company decided to build template that can be used for all global sites.
So, this new platform has been designed so that a company can work easily across borders and overcome new digital business challenges to enhance its e-commerce business.
The objectives of the digital transformation of Tesco are:
- To lever algorithms and big data analytics to adapt product offerings to purchasing trends and adapt supply chain.
- To predict purchasing habits of customers in the future.
- To generate personalized and offline discounts.
Task 2: Gaining Digital Business Agility
There are three things Tesco needs to gain agility, and these three things are hyper awareness, knowledgeable decision-making, and fast implementation.
So, it is really important for Tesco to develop these competencies for responding effectively and quickly to the emerging threats faced by the business and to gain a competitive advantage as well.
Figure 1: Digital Business Agility Model.
(Source: Wade, 2021)
Effective workforce management is considered critical element for any digital transformation attempt. So, six digital accelerators can be applied by Tesco’s workforce management as well as support capabilities to gain business agility.
These accelerators include business process changes, technology, people, applying analytics to point of decision, identifying, and allocating talent for executing business decisions (Harbott, 2021).http://MSc Management Leading through Digital Disruption Assignment Sample So, by applying the Tesco can take meaningful strides towards digital transformation in the business.
Hyperawareness: It includes two digital accelerators that can be linked to hyperawareness within workforce such as situational awareness and behavioral awareness. The purpose of these two accelerators is to harvest data that is external and internal to business atmosphere from customers, employees, and operational environment. To enable behavioral mindfulness, Tesco should efficiently collect data from the employees and contractors.
For this Tesco needs technological assistance such as Waggl as it provides an easy way for the company’s employees to give feedback in real-time. To enable situational awareness, Tesco needs to sense changes within the marketplace that may include the organisation’s customer base, partner ecosystem, and competitors (Wade, 2021). http://MSc Management Leading through Digital Disruption Assignment Sample
Here the company also needs to sense its operating environment and monitor changes in its physical assets such as food manufacturing plants, vehicle fleets, and services that Tesco uses to deliver its products. Tesco needs to utilize the business agility approach by following a fast decision strategy that knows 100% correct instead of spending time honing it to perfection.
To collect the data for increasing the awareness of employees, Tesco needs to use machine learning technology as it will allow the software application to become more accurate in predicting outcomes.
Informed decision making (IDM): IDM within the workforce transformation not only entails strategic decisions that may shape the future of Tesco but also entails thousands of smaller decisions taken by employees every day.
So, increased decision-making is a digital accelerator that incorporates omnipresent analytics that can help Tesco in making informed and analytical decisions directly to the work process (Muniz et. al. 2021). http://MSc Management Leading through Digital Disruption Assignment SampleThis may also include automated as well as the fast decision that is accelerated by technology speeding decision cycles.
On the other hand, inclusive decision-making is a type of digital accelerator that can help Tesco to tap into as well as get connected to shared intelligence of employees by giving voice to expertise and diverse viewpoints.
It is suggested that the company should take an initiative for using new tools to enable data-driven decision-making in group environment by using exclusive algorithms and should also drive cooperative decision-making through multi-criteria voting. The type of technology that can be used by Tesco for improving informed decision-making is augmented reality.
This augmented reality can support the employees of the company to improve their operations. For example, Tesco can use head-mounted displays by using augmented reality glasses for providing its employees with real-time task information (Eisele and Brettel, 2021). http://MSc Management Leading through Digital Disruption Assignment SampleSo, Tesco can offer such type of customized support to its front-line staff and can also help its employees to plan their activities effectively.
So, this can help the company to increase the performance outcome of its employees and can also increase the productivity of its employees by 25%. In addition to that, Tesco can make use of decision cockpits and business spheres to enlarge decision-making.
These are the connected meeting spaces that are equipped with the intuitive data visualization wall that may enable the company to make effective use of real-time data while making decisions.
Fast Execution: Employees of an organisation play an effective role in the fast execution of business operations of the company. So, it can be analysed that the fast execution of the workforce transformation process depends on 2 fronts like process and resources.
It can also be added that financial, technological, and human resources are the company’s dynamic resources. These resources can be further divided into two types of resources such as 1) agile talent; it can be referred to as an aptitude to identify workers that have necessary skills as well as knowledge and can assemble teams with high precision and speed. 2)
Agile technology can be referred to as an ability to obtain technological incomes more quickly and make use of the technological infrastructure of the company to meet the emerging needs of the business (Klos et. al. 2021).http://MSc Management Leading through Digital Disruption Assignment Sample So, Tesco should take an initiative to keep its employees engaged in valuable and interesting work.
On the other hand, a dynamic process can be referred to as a structured activity through which Tesco can achieve organisational goals. There are also two components of a dynamic process. 1) Rapid enablement; is an ability through which Tesco can make new company competences quickly within a broad spectrum of activities such as customer support, application development, and commerce.
2) Rapid intervention; is the ability of the company to adjust daily operations and can imprisonment the value that is time-bound (Bresciani et. al. 2021). http://MSc Management Leading through Digital Disruption Assignment SampleIn this case, Tesco should take an initiative to align staff levels along with the changing traffic patterns for avoiding loss and to enhance profitability.
The type of technology which can be used by Tesco for fast execution of workforce transformation is AI. It can help the company in the fast execution of workforce transformation as minimizes the time taken to perform tasks and also allows execution of hitherto complex tasks.
Task 3: Create a Digital Ready Culture
A company that establishes a digital culture looks different from other companies throughout the ages. In the present business scenario, companies have incorporated automation tools and internet-driven processors to remain competitive.
Now AI, machine learning, augmented reality, and virtual reality determines high-tech companies. If a company successfully establishes digital culture in its workplace, companies such as Tesco can improve their operations on a continuous basis to enhance competitiveness, productivity, and efficiency (POPOVIĆ et. al. 2021). So, by leveraging on the features of digital-ready culture that is identified by Think with Google (2017), Tesco can install digital-ready culture to support digital transformation by:
Figure 2: Features of a Digital-Ready Culture by Think with Google
(Ratchavieng and Srinet, 2021)
Putting customers first: Here Tesco needs to select the target audience. Once the target audience is selected, the company needs to focus on its needs, wants, and desires. Tesco can segment their audience into various groups based on criteria such as physiography, demography, usage and attitude, and lifestyle.
Creating a collaborative culture: To create a collaborative culture in an organisation, Tesco should communicate a clear vision to employees and need to constantly reinforce constantly so it does not become a flavor of the month (Ratchavieng and Srinet, 2021). http://MSc Management Leading through Digital Disruption Assignment SampleAlso, the company can hire and develop collaborative leaders in the workplace.
Instilling a culture of innovation: Here Tesco can install a culture of innovation by embracing a multi-faceted approach towards innovation and should start at the bottom. Also, the company needs to empower its employees, and after empowerment, they will be able to provide value in new ways (Barroso, 2021).http://MSc Management Leading through Digital Disruption Assignment Sample Also, Tesco needs to choose its approach to innovation metrics wisely.
Becoming a digital champion: Tesco can become a digital champion by developing a compelling digital vision that is linked to its business strategy. Also, the company needs to build an agile organisational structure to accelerate its digital business.
Task 4: Steer Collaboration
Job Description of Chief Collaboration Officer
The CCO is a member of the company’s executive team and helps in management as well as shaping the company’s business strategy, professional development initiatives, and organisational policies. This position reports to the Chief Executive Officer.
Roles and Responsibilities
· Developing an annual budget, go-to-market strategy, work plan, and is responsible for the execution of annual business strategy.
· Lead execution as well as the development of the company’s business strategy for relevant lines of business.
· Conducting an annual evaluation to determine needs for improvements and investments for enhancing organisational efficiency.
Skills and Qualifications
· Masters Degree in Human Resource.
· At least 5 years of professional work experience in HR.
· Demonstrate abilities to work collaboratively with diverse groups.
CCO can increase collaboration across departments and teams in Tesco by encouraging clear and consistent communication. So, it is the responsibility of the CCO in the company to promote the culture of communication.
Also, the CCO needs to practice transparency from the top and should be able to share and admit their failures.
Transparency is the best way to enhance collaboration, so the CCO needs to share the required information with employees, which can increase collaboration. The CCO of Tesco also needs to encourage feedback (Sokiyna and Aqel, 2020).http://MSc Management Leading through Digital Disruption Assignment Sample
Making employees feel safe and encouraged, the CCO needs to give open feedback to employees even if they fail. Giving chances and trusting people with polite feedback can help in getting things better.
In addition to that, the CCO of the company needs to create a sense of community and collaborative culture in an organisation which can help in developing a collaborative culture in Tesco.
Task 5: Select your Leaders
As per the views of Faas and Lu, (2021) there are six leadership styles proposed by Daniel Goleman. These leadership styles provide an insight into the type of leader a person can be based on different aspects of emotional intelligence. The first leadership style is the coercive leadership style which is commonly referred to as the directive leadership style.
This type of leadership can be used when a leader needs to fix a problem effectively and quickly. The second one is the authoritative leadership style which is also known as visionary leadership. Such types of leaders give direction to employees to achieve goals and help them reach the goal whichever way they want.
The third one is the affiliative leadership style, and this style is all about people. Such leaders want to create a positive work environment for employees and are big on the appreciation. As illustrated by Rabiul and Yean, (2021) the fourth leadership style is democratic leadership style also known as participative leadership.
Under this leadership style, every team member is valued, and the workplace is flexible. The fifth leadership style is the pacesetting leadership style. Such types of leaders want to set good examples and have high standards for the work. The last leadership style is the coaching leadership style. Such leaders focus on the personal development of their team members.
Figure 3: Six Styles of Leadership by Goleman.
(Source: Casali, 2015)
From the above six leadership styles, democratic leadership is the suitable leadership that would support Tesco’s digital transformation as it brings more viewpoints to the table, which is good for digital transformation. Besides, it can help in building team collaborations and increasing the morale of employees that can prove beneficial for digital transformation (Hilton et. al. 2021). http://MSc Management Leading through Digital Disruption Assignment SampleIt can also allow Tesco to solve complex digital problems effectively.
Approaches and techniques that can be used to develop democratic leadership in Tesco’s leaders are as follows:
- A leader must be well-organized and should help in carrying out the roles and responsibilities of the team.
- A leader must be able to communicate timely and accurately, which are the 2 aspects of the democratic leadership style.
- A leader must hear and respect the opinions of employees.
- A democratic leader should encourage creativity and employee engagement in the process.
It can be concluded that for any organisation the necessary step towards gaining competitive advantage and sustainable development is digital transformation. This report has outlined the significance of digitization for Tesco.
Covid-19 and e-commerce resulted in the digital transformation of Tesco. It has also become really important for the company to create a digitally-ready culture and a democratic leadership style can help Tesco in digital transformation successfully.
It also concluded that, democratic leadership is the suitable leadership that would support Tesco’s digital transformation as it brings more viewpoints to the table. Further, it also concluded that the strategies for developing an effective digital environment in the firm and how to acquire talented employees for it.
Moreover, it defined how digital culture can be made in an industry and how collaboration enhances efficiency in the business. The study also concluded the methodologies for selecting best digital leaders for the company.
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