2022-BUS3DIG(AW-1/BE-1/BU-1/MI-1/OL-1/SH-1) - DIGITAL BUSINESS
My LMS Subjects / 2022-BUS3DIG(AW-1/BE-1/BU-1/MI-1/OL-1/SH-1) / Assessment
/ Assessment 3: Instructions & Rubrics
Assessment 3: Instructions & Rubrics
Scenario: Amazon is Disrupting Major Supermarkets
As a major player in the digital business space, Amazon is competing with Walmart on the grocery market. This is done
through a reduction in price to undercut the big supermarket chains. Some key facts and figures are presented below:
Some products are priced lower to consumers than the supermarket’s purchase price
Supermarket giants are worried that brand owners are favouring Amazon as they can offer lower prices to customers
(perhaps offering Amazon better terms)
Selling to Amazon at cheaper prices could adversely impact brands (pricing control and favour with major supermarkets)
Amazon has less than 1% of the online food and grocery market, which grew 39.7% over the last 12 months (Nielsen 2018)
Amazon.com.au now has more than 2500 food and grocery products on its site
Source: Fortune (2021)
Your task
To adequately compete with Amazon and ensure that they do not take up too much market share, you have been hired as
an external consultant by Walmart to design a strategy on how they can compete with Amazon appropriately. Provided
below are several internal and external issues that Walmart are grappling with that need to be solved. These are outlined
below:
Worried shareholders: Shareholders are worried about Amazon’s rise as they see this as a threat to Walmart’s share price
Poor online customer service: Walmart customers have been complaining that when they try and order their groceries online
(website and mobile) they can’t sufficiently ask questions and engage with staff members for advice and/or enquiries
Social media ineptitude: Walmart are worried that their social media interactions are insufficient and unengaging and that
consumers do not have any desire to interact with the brand
Corporate staff insufficiently trained: The company has identified that not all their staff members are sure of how the online
grocery ordering system works. This also extends to payment to suppliers
Price: Walmart is unable to compete with Amazon on prices of particular products
Website not so user-friendly: Amazon’s online ordering system is much more user-friendly than Walmart
Distribution: Walmart has more effective distribution channels than Amazon already set-up. However, Walmart's
managers feel that Amazon is starting to make strong moves in this space. Not only that, but costs for the different
buying channels for consumers is higher than simply operating online
Supplier relationships: Some suppliers are willing to offer Amazon better terms than terms offered to Walmart
Brand reputation: Walmart has noticed that their reputation is decreasing, and Amazon’s is increasing its market share
Poor consumer loyalty: Consumer loyalty is difficult to establish and while Walmart has a large market share, consumers
don’t seem to be particularly loyal
As highlighted above, Walmart ha a number of worrying issues they need to deal with and that they see as a threat from
Amazon. To assist Walmart, you need to select 2 issues and develop innovative solutions to dealing with these issues.
What does your solution look liske?
Your solution needs to be innovative and draw on material and theory learned throughout the semester (e.g., we discussed
the new consumer decision-making process… how can Walmart use this?)
Your solution needs to be a step-by-step implementation guide with control measures highlighted along the process (control
refers to different evaluative tools)
You need to consider costs and timeline (include a realistic budget based on evidence and a timeline of key activities)
Who in Walmart should be implementing your solution (this refers to a role, not a name)? Consider if a new role needs to be
created, what would this look like?
Your solution needs to be based on evidence from both business and academic sources. In saying this, if you have a
completely innovative solution to a problem that has not been thought of before, then this will be considered
What will you be marked on?
Two chosen issues and two solutions (one solution per selected issue): Each solution is clearly and specifically stated. The
solution is logically linked to the problem and is innovative.
Implementation and control: A thorough and specific implementation plan is clearly identified for each solution.
Digital business theory: There is a clear integration of relevant digital business theory in the solutions provided (i.e. systems
thinking).
Sources of evidence: High-quality, credible, relevant sources to develop ideas that are appropriate for the development of
solutions.
Writing style: Language is clear and expressive showing a strong writing style and without grammar, punctuation, usage, and
spelling errors.
Other instructions
The word count for the report is 1500 words (+10%). You have a short word count which means you do not need to include
an executive summary, introduction or conclusion. Instead, your focus needs to be on solutions and how you can best
present this to Walmart’ executives.
Click here for the marking rubrics Assessment 3: Business Analysis Report
Digital Business Plan BUS3DIG
Student name: Benjamin Farnsworth+
Student email: 19054228@students.latrobe.edu.au
Subject code: BUS3DIG
Subject name: Digital business
Benjamin Farnsworth | 19054228
Subject Coordinator: Dr Daniel Rayne
Word Count: 2000 (Excluding References)
Contents
Issue One...................................................................................................................................................................................................................... 2
Proposed Solution ........................................................................................................................................................................................................ 2
Objectives..................................................................................................................................................................................................................... 3
Strategy ........................................................................................................................................................................................................................ 4
Projected Timeline ....................................................................................................................................................................................................... 8
Budget .......................................................................................................................................................................................................................... 9
Issue Two ................................................................................................................................................................................................................... 10
Proposed Solution ...................................................................................................................................................................................................... 10
Objectives................................................................................................................................................................................................................... 11
Strategy ......................................................................................................................................................................... Error! Bookmark not defined.
Projected Timeline ..................................................................................................................................................................................................... 17
Budget ........................................................................................................................................................................................................................ 18
References ................................................................................................................................................................................................................. 19
Appendix A ................................................................................................................................................................................................................. 22
Appendix B ................................................................................................................................................................................................................. 23
1|Page
Issue One
Issue one is that not all corporate staff are adequately trained in using the online platform, further uncertainty surrounds how the ordering
system works. This is a major concern for Woolworths, particularly at a time when time poor customers are turning to digital platforms looking
for convenient fast shopping. An industry report forecasts that the online grocery ecommerce segment is expected to grow significantly over
the next 5 years (Youl 2018). Human resources and organisational knowledge are two key sustainable competitive advantages for Woolworths,
the effectiveness of the organisation and overall success rests with the people within it (Olaniyan & Ojo 2008). Thus, investing in staff training
positively effects customer satisfaction , productivity , quality and financial results (Aragón-Sánchez, Barba-Aragón & Sanz-Valle 2003). In short,
survival and growth of Woolworths is underpinned by staff development.
Proposed Solution
Digital technologies are driving change, globally businesses are leveraging this technology to achieve desired outcomes (Colbert, Yee & George
2016) . The solution is to leverage technology and draw on systems thinking theory, to understand the cause of the problems at a system
structure level (Kim 1999) and determine new training needs. Any training program must start by appraisal of organisational training needs, then
structure training goals to meet these needs. Finally, evaluate if the training program implemented aligns with the needs identified (Olaniyan &
Ojo 2008).
Gamification is an effective way to meet training needs, by integrating game based elements into traditional non-game based activities such
as organisational training (Georgiou, Gouras & Nikolaou 2019). A critical element of gamification is employees get to learn through interaction,
as individuals learn through experiences, actions and behaviours (Kim 1999). With roots based in psychology learning theory, gamification
engages participants by awarding good behaviours (Landers 2014). Consequently, digital training modules will be developed for Woolworths
with a competitive element, they will have a point based system with badges. Employees will earn them when they achieve set goals such as
competency level, quiz rewards and completion. The scoring system allows for management to monitor progress and provides a control in
gamified environments. The leader board and experience point system gives individuals feedback on progress, this feedback is important as
participants are instantly informed about right or wrong behaviours (Mese & Dursun 2018). There will be leader boards both store and regional
2|Page
wide to promote competition to motivate employees. The results of gamification in organisational training find that employees are better
trained, more focused, more efficient, and provide better service (Witte et al. 2017).
With a systems thinking approach, and profits linked to training, a customer satisfaction index (CSI) will be implemented. A CSI is helpful to
understand consumers perceived quality, expectations and perceived value (Fornell et al. 1996). It is a helpful tool to evaluate if the gamification
implementation has addressed organisational needs.
Objectives
1) Short Term – Gather upward feedback from 80% of employees regarding current training processes. Goal is to determine areas that
are inadequate.
2) Medium Term - Achieve 95% competency level in all employees on the digital platforms within one month of release.
3) Long Term – To achieve a customer satisfaction rating of 90% (increasing loyalty) after implementation of new training modules within
12 months from release.
3|Page
Strategy
Step 1
Invite employees and suppliers
to give feedback on current
training processes. This will be
done through survey’s through
their email.
4|Page
Justification
Constructive feedback should not
just be a top-down process, two way communication is essential.
Employees are the key driver to
success. Employees and suppliers
provide insight to what works,
what doesn’t and why (Impraise
2019).
Control Measure
Check percentage of feedback
received on the 10th, 20th and 25th
of June. Send a reminder email
to complete survey on each date.
Role
Create a ‘Training Facilitator’ role
to manage the whole project.
Their responsibilities would
include:
•
Gather staff feedback.
•
Assess the current training
programs.
•
Align training goals with
organisational goals.
•
Facilitate communication
with employees, suppliers
and management.
•
Report to higher
management.
•
Responsibility to hire a
software developer and
oversee development of
gamification modules.
•
Monitor progress towards
objectives.
Step 2
Analyse the current training
programs of Woolworths.
Justification
To determine if inadequacy is
derived from greater system
structure problems at the
foundational level. System
thinking theory identifies
behaviours seen on the surface
(events & patterns) can be
caused by deeper structural
problems (Kim 1999).
Control Measure
Review of current training
processes and modules
complete within 3 months as
part of aligning staff needs with
organisational needs.
Role
Training Facilitator.
Step3
Design new training modules
which aligns training needs to
organisation needs based off
findings from previous 2 steps.
Justification
Workplace training on digital
platforms which incorporates
gamification has found, that
employees have higher job
satisfaction , are better trained
and are more productive (Witte
et al. 2017). Leading to increased
profit.
Control Measure
Communicate on a weekly basis
with software development
team.
Role
Training Facilitator.
Outsource development of new
gamification training modules.
5|Page
Track metrics to control
development such as:
• Cost efficiency.
• Completeness.
• Timeliness.
Step 4
Beta test software with
employees, the purpose of beta
testing is to evaluate the
capability of the training module
to meet the required objectives
(Zhu 2010).
Step 5
Step 6
Survey customers about their
satisfaction with the adequacy of
customer service when ordering
online. Most appropriate
feedback channels are through
Woolworths website and mobile
application.
6|Page
Justification
Beta testing creates feedback
loops akin to system thinking.
• Are employee training
needs met? If not, why?
•
Are organisation
objectives met? if not
why?
Control Measure
Gather results from beta testers,
analyse results.
•
Has the competency level
reached 95%.
•
Evaluate effectiveness of
aligning employee and
organisational needs.
•
Results determine if
training module need
further development.
Role
Training Facilitator.
Release Gamification Training Module to Targeted Employees
Justification
To determine if the investment
in employee training is positively
effecting the customer buying
experience.
Control Measure
Customer satisfaction rating
to be consistently monitored
after launch.
90% to be considered successful.
Role
Customer relations officer.
Step 7
Evaluation stage.
7|Page
Justification
To achieve organisational
objectives through alignment of
needs.
Control Measure
Monitor the dashboard of
employee engagement and
results overtime.
Gather feedback about
performance of employees from
data analysis.
Evaluate employee competency
levels are achieving 95% at one
month after launch. If not
investigate why.
Role
Training Facilitator
Projected Timeline
8|Page
Budget
See Appendix A for calculations.
9|Page
Issue Two
The second issue is that Woolworths customers are facing a poor online experience, the current Woolworths website is not very user friendly
when compared to Amazon’s. A poor online user experience leads to dissatisfied customers and drives customers to competitors (Carlson 2000).
The forth industrial revolution has changed the business environment, with the rapid development of technology, customer expectations have
changed with a move towards product quality, innovation and collaboration (Xu, David & Kim 2018). Greater connectivity through social media
and information exchange has changed the customers interactions with brands. The customers decision journey now largely based of openended relationships with brands and the value they are offered at each touch point (Edelman 2010). The touch point in focus in this solution is
to enhance the user-friendliness of digital platforms and bridge the gap between the new customer desire and what is currently offered by
Woolworths online.
Proposed Solution
The vision is to create adaptive user interfaces for each user through artificial intelligence (AI), to increase the user friendliness and customerpersonalised services. AI has proved very effective for enhancing customer experiences (Daqar & Smoudy 2019), it will also help in data analytics
for development of the strategy, control measures and return on investment. AI is becoming an integral part of business strategy and is a way
to create competitive advantages (Luo, Meng & Cai 2018). AI delivers a friendlier user experience because it can track user behaviour across
platforms, this big data creates inferences in real time, allowing web designers to create more user friendly websites (Ramasamy 2020).
The new website will ask users to create an individual profile. Once logged in the AI will customize an initial template based on their lifestyle and
behaviours, a fitness fanatic for example. Woolworths will predict this information because of data gathered by AI and the behaviours of the
person on the internet, such as posts liked on social media and browser search history. The initial template will display categories of groceries
that best suit the user, lean meats and fresh produce for the fitness fanatic for example. Through machine learning the user interface will adapt
with the user and predict a range of foods based off behaviour. If a user buys an item repeatedly, they will be asked if they want it added
automatically to their next shop. Users can also create a customisable menu, they can input their favourite dishes and the ingredients to make
it, then add all ingredients to their cart in one click. Users will also be able to manually select categories for the groceries they need but ultimately,
10 | P a g e
through AI and custom menu’s they won’t need to. A CSI will be used to gather data on their satisfaction of the adaptive interface, this creates
feedback loops in which Woolworths can analyse the effectiveness of certain features of online shopping and improve the website as necessary.
Objectives
1) Short Term – To increase online customer satisfaction to 90% within 3 months of launching new personal adaptive web interface.
2) Medium Term – To increase repeat customers of online shoppers by 15% at 9 months after launch.
3) Long Term – Annual profits increased through digital platforms by 20% within 2 years.
11 | P a g e
Strategy
Step 1
Investigate AI and machine
learning, and the relationships it
has between:
•
Personalised shopping.
•
Customer behaviour and
satisfaction.
•
Impact on profits.
Justification
To gather insight into customer
relationships with AI and
adaptive personalised interfaces.
As well as the effects on the
customer buying journey
experience, loyalty and profits.
Control Measure
To implement AI is a significant
investment for Woolworths.
Therefore, extensive research
must be translated into a digital
business strategy which forecasts
capital investment, timing, and
return on investment.
Projections must illustrate
objectives are achievable.
Role
For this project two positions will be
created:
A Digital Project Manager.
Responsibilities would include:
•
Oversee the whole project.
•
Facilitate communication
with AI engineers and
oversee software
development and
implementation.
•
Project budget projections.
•
Return on investment
projections.
A Quantitative Consumer Insights
Manager. Responsibilities would
include:
• Market Research.
•
12 | P a g e
Data Analytics to
understand customer
behaviour.
Step 2
Investigate what makes a
website unfriendly and trends
that make a website friendly.
Investigate what makes
customers more likely to repeat
buy after purchase.
Justification
To assist in satisfying customers
in their buying journey and
experiences with the brand, to
facilitate loyalty and repeat
purchasing.
Control Measure
Understand relationships
between customers and user
friendly websites
• Target 5 key functions
customers need in their
buying journey.
•
13 | P a g e
Example – chat bot and
search bar
Role
Digital Project Manager
Quantitative Consumer Insights
Manager.
Step 3
Take acquired knowledge from
research, work with AI company
to design an AI adaptive
interface prototype specifically
for Woolworths.
14 | P a g e
Justification
Studies that have found there is
an emergence of customers
wanting a degree of individual
customization in either their
products, or the way it is
delivered to them (Hendry 2010).
There is a significant positive
relationship between
personalised customer
engagements through the buying
journey, and the overall
customer experience and
satisfaction with the enterprise
(Daqar & Smoudy 2019).
Customer satisfaction is of the
utmost importance because it
translates to loyalty, which has
a positive correlation to profit
levels (Westbrook & Oliver
1991).
Control Measure
Communicate on a weekly basis
with software development
team.
Track metrics to control
development such as:
• Cost efficiency
• Completeness
• Timeliness
Role
Digital Project Manager
Quantitative Consumer Insights
Manager.
Step 4
Beta test adaptive interface with
customers, the purpose of beta
testing is to evaluate the
capability of the adaptive
website to meet the required
objectives (Zhu 2010).
Step 5
15 | P a g e
Justification
Beta testing creates feedback
loops akin to system thinking.
• Are customers satisfied?
If not, why?
•
Are Organisation
objectives met?
If not, why?
Control Measure
Gather results from beta testers,
analyse results.
Role
Digital Project Manager.
Quantitative Consumer Insights
Manager.
•
Evaluate customer
satisfaction through their
behaviours.
•
Through feedback loops.
•
Results determine if
adaptive interface needs
further development.
Director of Finance.
Release new adaptive interface website to public
Step 6
Ask customers to leave feedback
through a customer service
index.
Monitor performance of
adaptive interface website
through data analytics.
16 | P a g e
Justification
To acquire knowledge of
Woolworth’s customers. To
improve adaptable-personalised
touch points and enhance user
experiences through the buying
journey. Positive customer
experiences creates loyal
customers which increases sales
and expands the customer base
through word of mouth,
increasing profits (Daqar &
Smoudy 2019).
Control Measure
A pop up survey to invite
customers to leave feedback on
their user experience after their
purchase.
Role
Digital Project Manager.
Along with analytics of data
Woolworths will be able to
measure:
Director of Finance.
•
If customer satisfaction is
at 90%
•
Has customer repeat
purchasing increased by
15%
•
Is Woolworths on track to
increase profit by 20% in
2 years.
Quantitative Consumer Insights
Manager.
Projected Timeline
17 | P a g e
Budget
See Appendix B for Calculations.
18 | P a g e
References
Accounting Team Australia 2019, The Cost of Hiring Employees in Australia, Bizlatin Hub, viewed 24 May 2020, .
Aragón-Sánchez, A, Barba-Aragón, I & Sanz-Valle, R 2003, 'Effects of training on business results1', The International Journal of Human Resource
Management, vol. 14, no. 6, pp. 956-980.
Carlson, C 2000, 'Customer service: an essential component for a successful web site', Marketing Health Services, vol. 20, no. 2, p. 28.
Daqar, MAA & Smoudy, AK 2019, 'The Role of Artificial Intelligence on Enhancing Customer Experience', International Review of Management and
Marketing, vol. 9, no. 4, p. 22.
Desson, K 2015, What does eLearning development cost Androcom, viewed 24 May 2020, .
Edelman, DC 2010, 'Branding in the digital age', Harvard business review, vol. 88, no. 12, pp. 62-69.
Fornell, C, Johnson, MD, Anderson, EW, Cha, J & Bryant, BE 1996, 'The American customer satisfaction index: nature, purpose, and findings', Journal of
marketing, vol. 60, no. 4, pp. 7-18.
Georgiou, K, Gouras, A & Nikolaou, I 2019, 'Gamification in employee selection: The development of a gamified assessment', International journal of
selection and assessment, vol. 27, no. 2, pp. 91-103.
Hendry, LC 2010, 'Product customisation: an empirical study of competitive advantage and repeat business', International Journal of Production Research,
vol. 48, no. 13, pp. 3845-3865.
Impraise 2019, '7 Examples for setting professional development goals at wortk', 23 May, Impraise, viewed 23 May 2020,
.
Kim, DH 1999, Introduction to systems thinking, vol. 16, Pegasus Communications Waltham, MA.
Landers, RN 2014, 'Developing a theory of gamified learning: Linking serious games and gamification of learning', Simulation & gaming, vol. 45, no. 6, pp.
752-768.
19 | P a g e
Luo, J, Meng, Q & Cai, Y 2018, 'Analysis of the Impact of Artificial Intelligence application on the Development of Accounting Industry', Open Journal of
Business and Management, vol. 6, no. 4, pp. 850-856.
Mese, C & Dursun, ÖÖ 2018, 'Influence of Gamification Elements on Emotion, Interest and Online Participation'.
Olaniyan, D & Ojo, LB 2008, 'Staff training and development: A vital tool for organizational effectiveness', European Journal of Scientific Research, vol. 24,
no. 3, pp. 326-331.
Ramasamy, C 2020, How Artificial Intelligence Could Help You Design a Better User Experiance, Entrepreneur Asia Pacific, viewed 22 May 2020,
.
Seek 2020a, Digital Project Manager - Web, Digital Platforms Seek, viewed 24 May 2020,
.
--- 2020b, Quantitative Consumer Insights Manager, Seek, viewed 24 May 2020,
.
--- 2020c, Training Facilitator Seek, viewed 24 May 2020, .
TPP Technology 2019, How Much Does Artificial Intelligence (AI) Solutions Devlopment Cost in 2019 viewed 24 May 2020,
.
Westbrook, RA & Oliver, RL 1991, 'The dimensionality of consumption emotion patterns and consumer satisfaction', Journal of consumer research, vol. 18,
no. 1, pp. 84-91.
Witte, J, Westbrook, R, Witte, MM & Cobanoglu, C 2017, 'Gamification and training', Proceedings of the Global Conference on Education and Research
(GLOCER 2017) CONFERENCE PROCEEDINGS, pp. 157-159.
Woolworths Group 2020, Woolworths Supermarkets Woolworths Group viewed 24 May 2020 2020, .
20 | P a g e
Xu, M, David, JM & Kim, SH 2018, 'The fourth industrial revolution: opportunities and challenges', International Journal of Financial Research, vol. 9, no. 2,
pp. 90-95.
Youl, T 2018, 'IBISWorld Industry Report G4111: Supermarkets and Grocery Stores in Australia', Melbourne: IBISWorld.
Zhu, Z 2010, 'Study on beta testing of web application', Proceedings of the 2010 The 2nd International Conference on Computer and Automation Engineering
(ICCAE), IEEE, vol. 1, pp. 423-426.
21 | P a g e
Appendix A
Training Facilitator wages based off a similar role advertised on seek for full time employment (Seek 2020c).
Module development based off costing found on Androcom. The advanced program sophistication offers game environments, narration, high
level of interactivity, complex testing and detailed feedback (Desson 2015). All of which will be needed for a gamification training strategy.
Beta training cost based on a study by Accounting Team Australia (2019) that found company’s on average spent $1612.5 annually on training
per employee. This figure has been divided by four to apportion for 3 months of beta testing per employee. The calculation is based on a beta
test with 1000 employees.
Companywide training based of Woolworths 115,000 employees (Woolworths Group 2020). However, 30% of employees will be trained as it
is estimated those employees deal directly with online platforms. The training module will last for 1 hour. Study by Accounting Team Australia
(2019) found on average employees need 46.7 hours of training per year at an annual cost of $1612.5. This equates to $34 per staff member to
complete the training module.
22 | P a g e
Appendix B
Quantitative Consumer Insights Manager wages based off a similar role advertised on seek for full time employment (Seek 2020b).
Digital Project Manager based off a similar role advertised on seek for full time employment (Seek 2020a)
Prototype artificial intelligence adaptive interface and minimum viable product for beta testing based off TPPtechnology.com (TPP Technology
2019).
Pricing for a full artificial intelligence, adaptive learning interface is very hard to find, this is because it is very specific to client requirements.
Cost varies case by case, it depends on the functionalities, project size, scope and the complexity of the program. Cost estimation is based on
the fact that a prototype costs $20,000 and a minimum viable product for beta testing purposes costs around $60,000. A fully developed
product, ready for deployment for a large corporation such a Woolworths, who have turnover of billions of dollars, with millions of customers
could be up to three to four times that amount.
23 | P a g e
Purchase answer to see full
attachment