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Business Transformation Assignment- Impact of Transformational Change

BUS6010 – Business Transformation – Impact of Transformational Change

Assignment Brief

As part of the formal assessment for the programme you are required to submit a Business Transformation assignment. Please refer to your Student Handbook for full details of the programme assessment scheme and general information on preparing and submitting assignments.

Learning Outcomes:

After completing the module, you should be able to:

On successful completion of this module students will be able to:

  1. Critically assess the drivers of digital business transformation
  2. Evaluate the potential impact of future digital transformation on an organisation
  3. Critically analyse the role of existing technology in a modern organisation
  4. Assess the need for procedural and social change to support digital transformation objectives within an organisation
  5. Discipline Expertise: Knowledge and understanding of chosen field. Possess a range of skills to operate within this sector, have a keen awareness of current developments in working practice being well positioned to respond to change.

All learning outcomes must be met to pass the module.

Guidance

Your assignment should include: a title page containing your student number, the module name, the submission deadline and the exact word count of your submitted document; the appendices if relevant; and a reference list in AU Harvard system(s).

You should address all the elements of the assignment task listed below. Please note that tutors will use the assessment criteria set out below in assessing your work.

You must not include your name in your submission because Arden University operates anonymous marking, which means that markers should not be aware of the identity of the student. However, please do not forget to include your STU number.

Please refer to the full word count policy which can be found in the Student Policies section here: Arden University | Regulatory Framework

The word count includes everything in the main body of the assessment (including in text citations and references). The word count excludes numerical data in tables, figures, diagrams, footnotes, reference list and appendices. All other printed words ARE included in the word count.

Students who exceed the wordcount up to a 10% margin will not be penalised.

Students should note that no marks will be assigned to work exceeding the specified limit once the maximum assessment size limit has been reached.

Assignment Task

You are a trainee management consultant at any UK-based business of your choice.

Your line manager has asked you to review organisation’s Digital Business Transformation strategies and submit a business-style report. You can select any sector i.e., Retail, IT, Banking and Finance etc. Business transformation is the opportunity to rethink your business and operating models to deliver breakthrough value. It involves strategic decisions that affect where you’ll grow, how your organisation operates, and what kinds of performance improvements you can expect.

Based on this, you are required to address the following linked to the identified organisation. The assessment will be submitted in the form of a business style report of 3000 words:

  • Critically assesses two drivers of Digital Business Transformation as selected by your organisation . An analysis of the current role of digital technology in your organisation and the rate of change will be explored along with how businesses are futureproofing their practices (LO1, LO3) (30%)
  • Identify and evaluate the potential future impact of a specific Digital Transformation project within the organisation. (LO2) (30%)
  • Recommend and evaluate procedure and social changes needed to support the Digital Transformation Project within your organisation (LO4, 5) (40%)

Please follow the steps below:

  1. Select an organisation that interests you – business case study.
  2. Give a brief, concise history of the organisation, setting out its context, why it needs a digital transformation and the change (improvement) you are designing. (In this case, you are suggesting a digital transformation project)
  3. Evaluate the change process and change leadership using change theories and models of your choice. (What steps will you take in carrying out the change, and what leadership style could you adopt?)
  4. Recommend how the organisation could improve and how it will benefit from the change. Reflect on barriers to the implementation process and discuss how they may be overcome.
  5. Reference your sources correctly

Formative Feedback

You have the opportunity to submit a draft to receive formative feedback.

The feedback is designed to help you develop areas of your work and it helps you develop your skills as an independent learner.

If you are a distance learning student, you should submit your work, by email, to your tutor, no later than 2 weeks before the actual submission deadline. If you are a blended learning student, your tutor will give you a deadline for formative feedback and further details.

Formative feedback will not be given to work submitted after the above date or the date specified by your tutor – if a blended learning student.

Referencing Guidance

You MUST underpin your analysis and evaluation of the key issues with appropriate and wide ranging academic research and ensure this is referenced using the AU Harvard system(s).

Follow this link to find the referencing guides for your subject: Arden Library

Submission Guidance

Assignments submitted late will not be accepted and will be marked as a 0% fail.

Your assessment can be submitted as a single Word (MS Word) or PDF file, or, as multiple files.

If you chose to submit multiple files, you must name each document as the question/part you are answering along with your student number ie Q1 Section A STUXXXX. If you wish to overwrite your submission or one of your submissions, you must ensure that your new submission is named exactly the

same as the previous in order for the system to overwrite it.

You must ensure that the submitted assignment is all your own work and that all sources used are correctly attributed. Penalties apply to assignments which show evidence of academic unfair practice. (See the Student Handbook which is available on the A-Z key information on iLearn.)

Solution: Business Transformation Essay

Part 1
Hello and welcome to today’s podcast episode, where we will discuss digital transformation at Sainsbury’s, one of the UK’s largest retail stores. I’m your host, Charlie, a management consultant at Sainsbury’s. Today, we will look at two key drivers of digital business transformation: digital technology changes and leadership changes. We will explore how these drivers are changing the way Sainsbury’s operates today, the company’s digital transformation, and how Sainsbury’s is ensuring that it has future proofed its practices to be able to adapt to the rapidly changing retail sector.

Digital Technology

I would like to begin with the first driver of Sainsbury’s transformation, digital technology changes. Recently, we have witnessed technology being used in more aspects of life and with the wide benefits of technology, it has turned out to be crucial for many businesses. Research conducted by Tangwaragorn et al. in 2024 on the key drivers of digital transformation indicates that businesses have opportunities to use digital technologies including artificial intelligence, automation, advanced analytics, Internet of Things, and blockchain technologies to create value. These technologies also enable organisations to optimise their business operations in various organisational aspects including inventory management and personalising customers’ experience.
Sainsbury’s sees digital transformation as an important business strategy. The technologies which the organisation has adopted has helped maintain competitiveness with other retailers such as Aldi and Lidl and e-commerce platform providers such as Amazon. For example, Sainsbury’s online shopping website and mobile application are easy to use. These platforms allow customers to purchase products on them, browse, get personalised recommendations through AI technologies, and order home delivery. You can also select the Click and Collect services, where you can just collect your items from the store at any time of your choosing without any additional costs of home delivery. Sainsbury’s also uses self-service technologies, including Scan and Go technology, for their self-checkout systems, which have made the checkout process faster without having to queue. In a 2019 report, Sainsbury’s describes their in-store digital kiosks as art of their diital future, where instead of customers having to wander through isles looking for a specific item, you can just use the digital touchscreen placed in the isles to find the location of specific products in the store, making shopping more convenient. Since implementing these digital initiatives, Sainsbury’s has been able to operate more efficiently, which is good for both customers who get a positive shopping experience and the organisation with an increase in sales and revenue.
Despite the progress that Sainsbury’s has made in implementing new technologies, there is still the question of whether they are moving fast enough as their competitors. When we Compare Sainsbury’s to other organisations like Amazon, which is using automation, and Tesco, which has implemented advanced data analytics to personalise customer offers, Sainsbury’s is still left behind and needs to make a significant transformation to catch up with such retailers and differentiate itself. With the speed at which digital technologies are continuing to emerge, Sainsbury’s can only future-proof its practices by enhancing its digital infrastructure and adopting more technologies. Recent research done by Ramazanov et al. In 2021 emphasizes the importance of business investing in new and innovative technologies and integrating these as part of its organisational culture for continuous improvement and keeping up with new trends.

Leadership Changes

Now, let us look at the second driver, leadership changes. Successful transformation not only requires digital technologies but also strong leadership with leaders who are committed to driving an organisation to be successful. In their 2021 research, Porfírio et al., shows that leaders play an important role in creating and guiding business transformation by setting the vision and defining the strategy that will lead to successful change. The environment they create in the organisation also plays a role in transformation by encouraging innovation, motivating and engaging with employees throughout the change process, managing resistance, and serving as role models in embracing digital technologies.
Sainsbury’s transformation has been heavily influenced by the recent change in leadership, especially after the selection of their new CEO, Simon Roberts, in 2020. A 2024 article by Leyland, reveales how Roberts implemented a new strategy focused on listening to what customers want, adapting to their needs, and integrating the organisation’s digital and retail teams to give customers a seamless shopping experience. This has led Sainsbury’s to make transformations for digital initiatives that prioritise their customers, which we see with the new digital initiatives like the Scan and Go technology, improvements to its online shopping platforms and the Next Level Sainsbury’s strategy, focused on giving the customer value for their money, quality products, and great services. Under this new leadership, employees have also embraced digital initiatives and contributed to the transformation process. It is fascinating to see how this new leadership in the last few years has led to digital transformation that has changed many business processes and practices, even integrating digital initiatives into the company’s culture.
Leadership change has brought about disruptions as seen inthis case, which sows the need for future proofing. We have seen that leadership changes can drive transformation but it can be a challenge too, such as in the case of Sainbury’s. Such changes bring a lot of uncertainty and employees will be reluctant to change. In order to tackle these issues, Sainsbury’s will need to encourage collaboration, ensure that employees are part of the whole transformation process, and help employees adopt new technologies by providing support and training.

Conclusion

This episode brings us to the conclusion that Sainsbury’s digital transformation has been driven by both the digital technology and leadership change. We have illustrated how Sainsbury’s’ new leadership and adoption of the new digital technologies in the recent years have supported its digital initiatives incorporated into the organization’s culture. These drivers enable customers to enjoy their experience shopping at Sainsbury’s and for its operations to grow. Sainsbury’s has made progress, but there is need for more transformation to stay ahead of the competition and future proof its practices.
I hope you have enjoyed today’s podcast and that it taught you how critical drivers of digital business transformation, both digital technology and leadership changes can help improve business processes.

Part 2: Business case study

The introduction and growth of digital technologies require businesses to change their operations and how they respond to customer demands. Business transformation is important for the business to retain its competitiveness and respond to market conditions as well as to make the improvements that will translate into growth (Zaoui & Souissi, 2020). This report will analyse Sainsbury’s digital business transformation strategies and how the company is using technology to enhance customers’ shopping experience and its operations.

Organisational Background

Sainsbury’s is one of the leading supermarket chains in the UK. It was founded in 1869 by John James Sainsbury, starting as a small grocery store in London. Over the years, Sainsbury’s has grown into a large retailer operating 600 supermarkets and over 800 convenience stores today, both in the UK and Ireland (Sainsbury’s, 2024). Sainsbury’s sells a wide range of products and is well known for its product quality, great customer service, and strong online presence. Sainsbury’s strongly competes with other giant retailers like Aldi and Tesco, requiring the company to adopt digital transformation to remain competitive and meet its customer’s needs.
Digital transformation involves the process of a business adopting and implementing digital technology in their organisation to create new or modify existing business processes, products, and operations. The current business environment provides organizations with the chance to restructure operations through digital technologies including data analytics and artificial intelligence, e-commerce platforms, mobile apps, Internet of Things (IoT) and big data (Ziyadin et al., 2020).
Sainsbury’s requires digital transformation because of the following key reasons:
Most customers are used to shopping online and have developed new expectations for personalized and more convenient shopping across all platforms (Zaoui & Souissi, 2020).
Modern businesses need to implement digital technology tools because this transforms operations through automated systems and processes for controlling their stock, which minimize costs while improving productivity levels.
Sainsbury’s competes with retailers and global e-commerce platforms that invests in digital technology to enhance operational effectiveness and understand customer needs. Digital transformation can help Sainsbury’s maintain its competitiveness against these companies to enhance its market position (Zaoui & Souissi, 2020).
Through digital transformation Sainsbury’s can build greater responsiveness as an organization to respond quickly to market changes and shifts in customer requirements.

Proposed Change

Sainsbury’s digital transformation will focus on smart store solutions. It will include computer vision technology to build smart self checkout systems, as an upgrade to the current Sainsbury’s Scan and Go technology, that will automate checkout operations for faster precise and convenient services. Sainsbury’s will also implement new customer-oriented digital technologies including IoT sensors, real-time inventory monitoring, mobile integration, and digital shelf labels (Bourg et al., 2023).
This project delivers individualized service suggestions to consumers and guides them through store to minimize time spent in the store and cut down waiting times during checkout. The technology implementation at Sainsbury’s will result in efficient business operations, reduced labor costs, improved inventory control, and enhanced store processes (Roe et al., 2022). The new technologies at Sainsbury’s also enable real-time monitoring of customer shopping activity that provides customer data to improve both understanding of client needs and inventory management systems.
Evaluation of the Change Process and Leadership
To achieve a successful business transformation, Sainsbury’s should follow a structured change management process. This transformation process will be guided by two change management models: Kotter’s change management theory and Lewin’s change management model.

Kotter’s change management theory

1. Kotter’s 8-step change model helps leaders implement change within an organisation through proper planning, integrating change in the company’s culture, and enabling companies to overcome challenges associated with the change (Trawick & Carraher, 2023). Kotter’s eight stages include
2. Create a sense of urgency: This involves showing the company that there is a need for change by identifying potential threats, for example, showcasing changes in customers’ expectations and preferences for their shopping experience, how other retail companies using digital technologies have been successful, and the emerging digital trends requiring businesses om the retail sector to adapt to these trends.
3. Build a guiding coalition: Successful change requires the opinion, ideas, and support of multiple leaders. Sainsbury’s can form a guiding coalition by assembling a team of managers and supervisors from various departments, including IT, marketing, human resources, and store operations, who will lead the transformation.
4. Create a strategic vision: Develop a vision for digital transformation at Sainsbury’s to become a smart store. The vision outlines the goals of the project, timelines, and milestones to be achieved and explains how the initiatives in the vision will help Sainsbury’s achieve growth.
5. Enlist a volunteer army: This involves effectively communicating the vision to employees to ensure they understand the plan, which is crucial in supporting change implementation and the success of the project. Employees should clearly understand the individual roles they will play throughout the transformation process.
6. Remove obstacles: Identify and assess potential barriers to the transformations, such as employee resistance, lack of clarity on the need for change, lack of support for technological changes, or poor understanding of new technologies. This requires employee training, providing essential tools and resources, ensuring effective communication, and empowering employees for a smooth transition.
7. Generate short-term wins: Launching pilot projects such as an automated inventory management system will show early success and progress in achieving milestones, which will help keep employees motivated throughout the change journey.
8. Build on the change: Using data from the short-term wins and feedback from the team will help refine the process, ensuring the final project is successful.
9. Anchor the Changes in Corporate Culture: Integrate digital technologies and practices in the store’s everyday operations so it becomes deeply rooted in Sainsbury’s culture and processes (Trawick & Carraher, 2023).

Lewin’s Change Management Model

Kurt Lewin’s change model involves a three-stage process for managing change in the organisation. The model states that driving forces motivate employees towards the new change while restraining forces influence the behaviour of organisations and individuals, resulting in resistance to change (Memon, 2021). The model aims to balance the driving and restraining forces to manage organisational change in three phases:
I. Unfreeze: Involves preparation for a desired change. During this stage, effective communication of the change and informing employees on the need for digital transformation at Sainsbury’s will help obtain their support in implementing change. Similar to Kottler’s model, this stage involves demonstrating that there is a need for digital transformation and explaining how it will improve operations at Sainsbury’s and enhance customer experience.
II. Change: The transition process where change is implemented. Involves introducing digital technologies and related processes to support the digital transformation. For a smooth transition, employees will receive training on new systems and processes and be encouraged to give feedback incorporated into the transformation process.
III. Refreeze: This phase helps solidify and adopt the desired change. It requires actions such as integrating new systems, updating work policies, and managing employee performance to reinforce changes in the organisational culture for stabilisation and long-term adoption (Memon, 2021).

Steps in Implementing Change

The digital transformation process at Sainsbury’s will involve the following steps:
Identifying the need for change: Conduct market research and internal analysis to identify digital technologies enhancing operations in the retail sectors, opportunities for implementing these technologies, customers’ needs and business processes that would be enhanced with digital technologies, and how Sainsbury’s would benefit from digital transformation.
Goals development: Define specific goals focused on digital transformation to achieve growth and enhance efficiency. Develop a project implementation plan including timelines, resources, employee roles, and necessary resources, which should be clearly communicated to employees.
Stakeholder engagement: Form teams with stakeholders, including employees, managers, supervisors, and customers, to consider their needs, concerns, and expectations for the digital transformation. Engaging with employees reduces resistance during the process for effective implementation.
Manage change: Track the progress of the transformation by reviewing progress made against the objectives set for the project. Obtain feedback from employees, which should be incorporated into the implementation process to improve the project. Eliminate barriers such as resistance to change by offering support and addressing employees’ concerns.
Future strategy: Once the digital transformation has been implemented successfully, Sainsbury’s needs to continuously innovate its processes to remain up to date with digital trends and stay ahead of competitors. Obtaining more data on the performance of new digital technologies and insights from customers and employees will help refine the digital initiatives.
Transformational leadership would be effective in implementing the digital transformation at Sainsbury’s. The approach focuses on inspiring employees by offering them support, guidance, and confidence to work towards a shared goal, leading to positive change. Empowering employees will encourage their participation in the process and prevent resistance to change, enhancing their performance (Philip, 2021).

Recommendations and Benefits of Change

Impact of Change

Digital transformation implementing smart store solutions will benefit Sansbury’s in various ways, including:
Improved customer experience: Customers will have smarter in-store shopping experiences with faster shopping processes, more convenience in accessing products, better pricing strategies, faster checkout, and having popular products always in stock, creating a more enjoyable and easy shopping experience (Bourg et al., 2023). Using machine learning algorithms to offer personalised product recommendations for consumers also leads to a positive experience, leading to customer satisfaction and loyalty.
Enhance store operations: Digital technologies will provide data on various processes at the store, which improves operations in inventory management, personalising product recommendations, customer support, and improving customer experiences (Roe et al., 2022). AI systems and real-time stock monitoring can help predict demand patterns and monitor products on the shelves, which helps avoid stockouts or overstocking, which leads to waste.
Competitive advantage: having digital technologies that enhance customers’ experience and make shopping more convenient and efficient will differentiate Sainsbury’s from its competitors, attracting more customers.
Increased revenue: Smart stores allow more efficient store operations where there is minimal waste, lower labour costs, and faster processes, as well as improved customer experience, which leads to higher sales and profitability.

Barriers to Change

Resistance to Change: The transformation may face resistance from employees and management, who may be against changing established processes and bringing in new technologies that may be more complex to operate. Providing training before implementing change can help familiarise employees with new systems and ensure they understand how to use them, making the transition process easier. Following Kotter’s change, communicating the need for the transformation and how it will benefit the company will allow employees to see the change as positive and be motivated to participate in the transformation (Trawick & Carraher, 2023).
Limited resources: Digital transformation to integrate several digital technologies requires high investments in technology, IT infrastructure, electronic equipment, and talent. Sainsbury’s can prioritise digital initiatives that will have the highest return on investments before fully implementing all technologies.
The challenges of integrating new digital technologies in Sainsbury’s existing systems can be complex and disrupt the store’s operations. This can be mitigated by examining the store’s existing technologies to develop a plan where the new systems can be integrated gradually in phases to minimise disruption.

Conclusion

Digital transformation is essential to Sansbury’s operations, helping the company remain competitive and gain value in various aspects, including operational efficiency and customer satisfaction. The goals of implementing smart store solutions will help digitise Sansbury’s systems and automate its processes, particularly in inventory management and gaining insights on customer behaviours, so its stores can operate more efficiently in meeting customer needs and expectations. This will contribute to a seamless and enjoyable shopping experience, with customers benefitting from personalised recommendations, smart self-checkout, easy navigation around the store, and more engaging interactions. Following change management models, such as Kotter’s Eight-Step Model and Lewin’s Change Management Model, will ensure effective implementation of the digital technologies and help address barriers to change so Sansbury’s can effectively transform into smarter, more efficient operations. The digital transformation will lead to higher sales and revenue and give Sainsbury’s a competitive advantage, increasing its market share in the UK retail sector.

References

Bourg, L., Chatzidimitris, T., Chatzigiannakis, I., Gavalas, D., Giannakopoulou, K., Kasapakis, V., Konstantopoulos, C., Kypriadis, D., Pantziou, G. and Zaroliagis, C., 2023. Enhancing shopping experiences in smart retailing. Journal of Ambient Intelligence and Humanized Computing, pp.1-19.

Leyland, A., 2024, August 5. The people’s CEO: how Simon Roberts changed Sainsbury’s culture. The Grocer. https://www.thegrocer.co.uk/interviews/the-peoples-ceo-how-simon-roberts-changed-sainsburys-culture/694071.article

Memon, F.A., 2021. Improving employee’s engagement in change: Reassessing Kurt Lewin’s model. City University Research Journal, 11(1).

Philip, J., 2021. Viewing digital transformation through the lens of transformational leadership. Journal of Organizational Computing and Electronic Commerce, 31(2), pp.114-129.

Porfírio, J.A., Carrilho, T., Felício, J.A. and Jardim, J., 2021. Leadership characteristics and digital transformation. Journal of Business Research, 124, pp.610-619.

Ramazanov, I.A., Panasenko, S.V., Cheglov, V.P., Krasil’nikova, E.A.E. and Nikishin, A.F., 2021. Retail transformation under the influence of digitalisation and technology development in the context of globalisation. Journal of Open Innovation: Technology, Market, and Complexity, 7(1), p.49.

Roe, M., Spanaki, K., Ioannou, A., Zamani, E.D. and Giannakis, M., 2022. Drivers and challenges of internet of things diffusion in smart stores: A field exploration. Technological Forecasting and Social Change, 178, p.121593.

Sainsbury’s, 2019. Generate efficiencies to invest in our digital future. https://www.about.sainsburys.co.uk/~/media/Files/S/Sainsburys/documents/reports-and-presentations/2019/ar-docs/sainsburys-ar2019-priority4.pdf

Sainsbury’s, 2024. About us. https://www.about.sainsburys.co.uk/about-us

Tangwaragorn, P., Charoenruk, N., Viriyasitavat, W., Tangmanee, C., Kanawattanachai, P., Hoonsopon, D., Pungpapong, V., Pattanapanyasat, R.P., Boonpatcharanon, S. and Rhuwadhana, P., 2024. Analyzing key drivers of digital transformation: A review and framework. Journal of Industrial Information Integration, 42, p.100680.

Trawick, S. and Carraher, T., 2023. Contextualising Kotter’s 8-step model to a sustainable digital transformation: A qualitative study from the perspective of organisational change.

Zaoui, F. and Souissi, N., 2020. Roadmap for digital transformation: A literature review. Procedia Computer Science, 175, pp.621-628.