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1. INTRODUCTION: Research Proposal

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1.1 Background of the study

Cloud computing has come out as an innovative technology that offers various advantages for organizations across different industries. In current years, the adoption of cloud computing has drastically increased, mainly in the retail sector. Cloud computing enable organizations to access and use a pool of shared computing resources, including storage, servers, applications, and database, over the internet (Har, et. al. 2022). This technology eliminates the requirement for organizations to keep and direct their own physical infrastructure, allow them to focus on their core business activities. In recent years, the retail industry in the UK has undergone a substantial amount of expansion and change. Tesco is one of the companies in this industry looking into the advantages of cloud computing to improve their operational effectiveness, scalability, cost-effectiveness, and innovation capabilities. The literature review aims to investigate existing studies related to the benefits and drawbacks of cloud computing in the framework of organizations operating within the UK retail sector, with a detailed focus on Tesco.

cloud computing

Figure 1: cloud computing

(Source: Purkayastha. R, 2021)

1.2 Research aim and objectives

The aim of this study is to examine the benefits and drawbacks associated with cloud computing in the context of Tesco. The detailed objectives of the research are as follows:

  • To develop understanding about the concept of cloud computing and its significance.
  • To identify benefits and drawbacks associated with cloud computing in the context of Tesco.
  • To evaluate challenges facing by Tesco related to the practices of cloud computing.
  • To recommend competent cloud computing practices to Tesco from the perspective of data management.

1.3 Research questions

To attain the research aim and objectives, the subsequent research questions will direct the study:

Q.1 What is cloud computing and its importance for retail sector?

Q.2 What are the benefits and drawbacks associated with cloud computing in the context of Tesco?

Q.3 Which challenges Tesco is facing related to the practices of cloud computing?

1.4 Rationale of the study

The rationale behind conducting this research lies in the rising adoption of cloud computing within the UK retail sector and the requirement to broadly evaluate its benefits and drawbacks. The retail industry is undergoing rapid digital transformation and cloud computing is measured a key enabler in this procedure. Understanding the impact and implications of cloud computing implementation, especially within the UK retail sector, can offer valuable insights for Tesco and add to informed decision-making (Soltanifar and Smailhod?i?, 2021). By focusing on Tesco as a case study, this research aims to offer a deeper understanding of the benefits and challenges of cloud computing in a real-world retail background.

1.5 Significance of the study

The study holds numerous significances:

  1. Practical implications: The result of this study will offer practical implications for companies in the UK retail sector, including Tesco, by providing insight into the benefits and challenges of cloud computing implementation.
  2. Academic contribution: This research contribute to the accessible academic literature on cloud computing and its purpose in the UK retail sector (Cao, 2021).
  3. Industry insights: The research will offer insights into the impact of cloud computing on company's operations, consumer experience, and competitive advantage.
  4. Decision-making support: The research findings can serve up as a decision-making support tool for organization considering cloud computing implementation in the UK retail sector.

2. LITERATURE REVIEW

Cloud computing meaning and significance

According to Zhao (2021) Cloud computing has expand major attention and adoption across a range of industries, including the retail sector. As companies seek to improve their operational effectiveness, scalability, and innovation capabilities, cloud computing offers a capable solution. Akanbi, et. al. (2022) identified in their study that cloud computing refers to the delivery of on-demand computing services over the internet, with storage, processing power, and applications. Its significance lies in its capability to offer scalable and flexible resources, cost competence, and global accessibility, enable organizations to focus on innovation and agility.

Benefits and drawbacks of cloud computing

The study conducted by Akanbi, et. al. (2022) stated that offering scalable and on-demand computer resources, cloud computing enables merchants to optimize their operations. This enhances operational efficiency by enabling merchants to manage their inventory, supply chain, and customer relationship management systems effectively. Further, Akanbi, et. al. (2022) said that Retailers may lower their capital expenditures on hardware and infrastructure by implementing cloud computing. The pay-as-you-go approach, in which they only pay for the resources they utilize, can be used by them. Retailers gain from this cost-saving feature since it enables them to spend their money more wisely and on other key projects. Cao (2021) assessed in their study that retailers can scale their computing capabilities up or down based on changes in demand thanks to cloud computing. Retailers can withstand peak times like seasonal sales thanks to this scalability without having to make significant physical infrastructure investments.

Drawbacks and challenges of cloud computing in the retail sector:

According to ANDRICORY (2023) Security and privacy issues arise when sensitive consumer and corporate data is stored in the cloud. To reduce these risks, retailers must carefully examine data encryption, access management, and complying with data protection laws. Cole, Stevenson and Aitken (2019) presented their view that adopting cloud computing frequently necessitates reliance on particular cloud service providers. This may lead to vendor lock-in, making it difficult and expensive to migrate to a different provider or return to an on-premises infrastructure. Mariani and Nambisan (2021) mentioned in their study that retailers must carefully evaluate the dangers of vendor lock-in and make sure that their exit alternatives are effective. Several regulatory obligations, including those pertaining to consumer rights, data protection, and financial rules, are applicable to the retail industry. When using cloud computing, retailers must make sure that all laws are followed and evaluate if cloud service providers adhere to the relevant compliance requirements.

Cloud Computing Transforming the Retail Sector

Figure 2: Cloud Computing Transforming the Retail Sector

(Source: NAIK. K, 2023)

Impact of Cloud Computing on retail sector organizations

According to views of Cole, et. al. (2019) laeding retailers in the UK, has standard the potential benefits of cloud computing. The business has utilized cloud-based solutions for a variety of aspects of its operations, including data analytics, e-commerce platforms, supply chain management, and customer loyalty programs. On the contradictory note, Har, et.al., (2022) said that implementation of cloud computing has enable firms to advance its operational competence, gain insights from big data analytics, and improve customer experience. Though, companies have also faced challenges related to regulatory compliance, data security, and vendor management, highlighting the significance of effective risk mitigation strategies.

Factors Influence Company's decision-making process in adopting cloud computing:

In accordance with Cole, Stevenson and Aitken (2019) when it comes to deciding whether to utilize cloud computing, money is a crucial element for businesses. For example: companies like Tesco, the cost-effectiveness of cloud computing, particularly in terms of infrastructure and operating costs is a key motivator. Companies may save upfront expenses and allot resources as needed thanks to the pay-as-you-go cloud computing approach. According to the research of Mariani and Nambisan, (2021) stated that company's decision-making process heavily relies on the scalability and flexibility offered by cloud computing technologies. For merchants like Tesco, the capacity to adjust computer resources up or down in response to demand changes is essential, particularly during peak seasons or promotional events. With the help of cloud computing, businesses can react swiftly to shifting consumer needs and market situations.

Cao (2021) defined that company sees the potential for increased operational effectiveness as a key justification for implementing cloud computing. By using this organizations can optimize supply chain operations, improve inventory management, and streamline procedures thanks to cloud-based technologies. Firm can boost efficiency through cost savings and operational agility by utilizing cloud computing. Author investigated that organization has access to prospects for innovation and competitive advantage through cloud computing in the retail industry. Hence, firm can experiment with new apps, services, and data analytics capabilities thanks to cloud-based technology. This in turn improves customer experience, personalize offers, and set itself apart from rivals thanks to its innovation-driven strategy.

Risk mitigation strategies in cloud computing adoption:

Soltanifar, and Smailhod?i?, 2021 examined that retail sector firms undertake strong security measures to reduce the risks connected with data security and privacy in cloud computing. The significance of using access restrictions, encryption, and regular security audits to protect consumer and corporate data. Business organization needs to make sure that all applicable data protection laws are followed and works with reputable cloud service providers to guarantee the integrity and confidentiality of data. The company carefully manages partnerships with cloud service providers to reduce the dangers of vendor lock-in. Vendor management and departure options. According to the research of Mukherjee, (2019) choosing cloud suppliers, firm takes into account elements including contractual terms, service-level agreements, and exit options. Company's risk mitigation approach for adopting cloud computing must take regulatory compliance into account. On the contradictory note author entailed that business unit does its due diligence to make sure that providers of cloud services abide by all applicable laws, including data protection legislation and standards unique to the sector. Akanbi, Atoyebi and Selowo (2022) said that company uses good disaster recovery and business continuity planning to reduce the risks of service interruptions and downtime. The significance of putting backup and recovery systems in place, having redundant infrastructure, and testing disaster recovery plans often.

3. RESEARCH METHODOLOGY

3.1 Research type

The research type for this study is empirical research. Empirical research includes gathering and analyzing data from the actual world to look into a certain phenomena or research subject. This paper uses Tesco as a case study to assess the advantages and disadvantages of cloud computing in the UK retail industry (Newman and Gough, 2020). In this, to analyze the benefits and drawbacks of cloud computing qualitative research type will be selected. According to this, by doing evaluation underlying experiences and opinions of manager research problem will be addressed.

3.2 Research approach

Inductive and deductive are the main two research approach which can be undertaken by the researcher for investigation purpose (Pandey, and Pandey, 2021). In research, selection of appropriate approach is highly influenced from the type of research undertaken. Inductive approach also considered as bottom-up approach which lays more focus on the generalization of new theoretical framework. On the other side, top- down (deductive approach) presents solution by testing and confirming hypothesis. For current research, inductive approach will be followed which highly suits to the qualitative research type. On the basis of this, by evaluating observations and underlying opinions related to cloud computing practices new theory will be introduced.

3.3 Research philosophy

The research philosophy for this study is pragmatism. Pragmatism recognizes the significance of expediency and worth in research, focusing on real-world applications and address practical problems. (Mukherjee, 2019). Pragmatism allow for the integration of multiple perspective, methods, and theories to accomplish the research aim and objectives. Philosophies of research are mainly two such as interpretivism and positivism which gives clear indication about the ways through which data about specific phenomenon need to be gathered as well as analyzed. Hence, by interpreting qualitative aspects related to cloud computing research objectives will be met.

3.4 Data collection

In research, data can be gathered from mainly two sources such as primary and secondary (Snyder, 2019). For addressing research problem data will be gathered from both primary and secondary sources. In the context of primary data gathering, survey will be conducted on 20 managers of Tesco through the means of questionnaire. Further, books, journals and scholarly articles related to cloud computing will also be evaluated for the purpose of secondary data collection.

3.5 Sampling

Sample selection is highly required when researcher is planning to conduct survey for investigation purpose. Probabilistic and non-probabilistic are the main two sampling techniques which facilities selection of suitable sample for study purpose (Bairagi and Munot, 2019). In the context of current study, 20 managers of Tesco will be selected for survey purpose by using simple random sampling technique. Moreover, managers have better idea about the extent to which cloud computing is offering benefits to the concerned organization.

3.6 Data analysis

In the field of research selection of data analysis technique is highly significant for finding suitable outcome of a research problem. Techniques of data can broadly be classified into two ly thematic perception test technique and SPSS. For evaluating the benefits and drawbacks of cloud computing practices thematic analysis of qualitative data will be performed. Accordingly, by taking into account survey's responses different themes will be formulated. Further, analysis will also be supported through tables, graphs and brief research findings presented in LR.

3.7 Research limitations

It is crucial to recognise the study's limitations of the research. Some possible limitations include:

  1. Time and resource limitations: Time and resource constraints may affect the scope and depth of data gathering and analysis for the project.
  2. Sample representation: The study's sample may not accurately reflect the whole UK retail industry. It is important to use caution when extrapolating the results to the broader industry.
  3. Subjectivity: The subjective interpretation that goes into qualitative data analysis might lead to bias. Through the use of numerous researchers framework and triangulation, prejudice will be lessened.

3.8 Reliability and validity

The study will use authoritarian data collection processes to increase reliability and assurance consistency in the use of research methodologies. We'll use a variety of data sources, including surveys, interviews, and document analysis, to triangulate our findings and make the study more credible. The study will use a variety of research techniques to increase validity and ensure the acquisition of varied data. The study's theoretical validity will be strengthened by the use of well-established theoretical frameworks and ideas will be strengthened by using appropriate sampling strategies and statistical analysis.

3.9 Ethical considerations

The study process will be conducted with ethics in mind. Participants' informed permission will be sought, guaranteeing confidentiality and anonymity. The study will abide by ethical standards, preserving the rights and privacy of all engaged as well as their respective organisations. Sensitive information will be protected by data security procedures.

4. TIMELINE

Activities / weeks

1

2

3

4

5

6

7

8

9

10

11

12

Research problem selection and assessment

Drafting briefing document

Critical assessment of secondary sources

Research methods selection and assessment

Drafting questionnaire

Primary data gathering via survey

Data collation, structuring and analysis

Analyzing gathered data set

Drawing conclusion and recommending strategies for improvement

Doing formatting

Taking feedback from module tutor

Doing final modifications and submission

References

Books and Journals

  • Akanbi, T.O., Atoyebi, I. and Selowo, T.E., 2022. Security issues company face when transitioning to the cloud.
  • ANDRICORY, A.A., 2023. THE DIFFERENCES IN FOOD WASTE MANAGEMENT OF TESCO COMPANY AND ALBERT HEIJN COMPANY (Doctoral dissertation, Universitas Islam Indonesia).
  • Bairagi, V. and Munot, M.V. eds., 2019. Research methodology: A practical and scientific approach. CRC Press.
  • Cao, L., 2021. Artificial intelligence in retail: applications and value creation logics. International Journal of Retail & Distribution Management.
  • Cole, R., Stevenson, M. and Aitken, J., 2019. Blockchain technology: implications for operations and supply chain management. Supply Chain Management: An International Journal. 24(4). pp.469-483.
  • Har, L.L., Rashid, U.K., Te Chuan, L., Sen, S.C. and Xia, L.Y., 2022. Revolution of retail industry: from perspective of retail 1.0 to 4.0. Procedia Computer Science, 200.pp.1615-1625.
  • Mariani, M.M. and Nambisan, S., 2021. Innovation analytics and digital innovation experimentation: the rise of research-driven online review platforms. Technological Forecasting and Social Change. 172. p.121009.
  • Mukherjee, S.P., 2019. A guide to research methodology: An overview of research problems, tasks and methods.
  • Newman, M. and Gough, D., 2020. Systematic reviews in educational research: Methodology, perspectives and application. Systematic reviews in educational research: Methodology, perspectives and application. pp.3-22.
  • Pandey, P. and Pandey, M.M., 2021. Research methodology tools and techniques. Bridge Center.
  • Snyder, H., 2019. Literature review as a research methodology: An overview and guidelines. Journal of business research. 104. pp.333-339.
  • Soltanifar, M. and Smailhod?i?, E., 2021. Developing a digital entrepreneurial mindset for data-driven, cloud-enabled, and platform-centric business activities: practical implications and the impact on society. Digital Entrepreneurship. 3.
  • Zhao, C., 2021. Research on Cost Management of E-commerce Enterprises Based on Value Chain——Taking Suning Tesco as an Example.
    Online
  • Purkayastha,. R, 2021. Cloud Computing. [Online]. [Available on]. :<https://adamasuniversity.ac.in/cloud-computing-a-beginners-insight-to-top-use-cases/>. [Accessed on 31/05/2023].
  • NAIK, K., 2023. Cloud Computing Transforming the Retail Sector. [Online]. [Available on]. :<https://www.einfochips.com/blog/how-cloud-computing-is-transforming-the-retail-sector/>.[Accessed on 31/05/2023].
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