Digital Innovation Citrus Group Pty Ltd

Question: Discuss about the Digital Innovationfor Citrus Group Pty Ltd. Answer: Introduction This report highlights the use of digital innovation in an organization named Citrus Group Pty Ltd for adopting as well as integrating the implementation of website (Fichman et al. 2014, pp. 327). The use of digital innovation is quite advantageous for Citrus Group Pty Ltd. The report illustrates the adoption of digital innovation procedures into the organization and the changes required in any of the structural as well as managerial levels of the organization for generating digital trust within the various communities as well as market place. The report also discusses the cost benefit analysis as well as KPIs for ensuring digital innovation in an effective manner. New Technologies Adoption as well as integration in Citrus Group Pty Ltd The adoption and integration of digital innovation helps in providing new opportunities to the organization so that they can manage their sales and perform other operations, which are associated with the business in a significant way. Adoption of website in Citrus Group Pty Ltd The digital innovations, which are adopted in Citrus Group Pty Ltd, include: The use of social media is quite advantageous for the organization Citrus Group Pty Ltd. According to Nylen and Holmstrom (2015), implementation of a website is less expensive as compared to other options. It is more environmental friendly in context with advertisement as well as marketing. It helps in providing lot of ways to advertise various products as well as services over the internet. On the other hand, it is stated by Perry and Pollock (2016), that website helps in providing better service as well as technique for the consumers so that the consumers can easily purchase various products from the site. It helps in providing better opportunity to the consumers to communicate effectively with various executives as well as employees of the organization (Fichman, Nambisan Halpern 2014, pp. 135). The implementation of web page makes the procedure of transaction quite easier as well as accessible. It also assists in increasing in having better relationship with the customers. The customers can review the products online and can provide feedback for the company. It also helps in leading the company more towards potential sales. Figure 1: Advantages of adopting Web Page (Source: Svahn Henfridsson 2012, pp.3348). The website can be viewed from the mobile, which has number of advantages. It helps in providing instant contact to the customers of Citrus Group Pty Ltd. Instant contact helps the customers in reaching the business or the organization instantly with ease. It provides customers a complete access to various business related information (Brunswicker, Bertino Matei 2015, pp. 56-58). One of the most significant focused area in M-commerce helps in offering numerous channels of communication to various customers in order to solve their real-time problems. Mobile commerce helps in tracking the location for navigating the direction, which further assists in finding the nearest transportation service. Integration of Website in Citrus Group Pty Ltd The website can be integrated in the organization by following some of the steps, this includes: Assess the market: It is quite important for the organization Citrus Group Pty Ltd to assess the presence of digital maturity within the organization. The competitors of the organization must also be analyzed properly for identifying the need of digital transformation. It is stated by Carpo (2013) that Proper and effective method within the organization helps in interacting properly with the customers of the organization and it helps in beating the different actions of the competitors digitally. Figure 2: Steps for integrating digital inovation (Source: Jarvenpaa Tuunainen 2013, pp. 224) Mapping the journey of the customer: The organization Citrus Group Pty Ltd wants to use the digital innovation in order to increase its sales. According to Trefler (2014), the organization must know the demands as well as requirements of the customers properly. Lu, Lee and Tseng (2012) opined that if an organization is confident enough to pursue the right customer base then it is quite easy to understand the various transactional point of engagement within the organization. Align the organization: For adopting various digital innovations within the organization, it is very much important to align organization for taking a top-down approach in order to change. Ramilo and MR (2014) stated that for aligning the organization it is very much important to have leader who take the ownership of the entire experience of the customer for implementing various digital initiatives. Cost Benefit Analysis for Implementing website in Citrus Group Pty Ltd The cost benefit analysis is reflected from the table below: Cost Benefit Analysis using Present Value (Purchasing Operations Support) Benefits of option Year 1 Year 2 Year 3 Year 4 Year 5 Savings of the Staff $ 150,000 $ 150,000 $ 75,000 $ 90,000 $ 90,000 Enhanced buying practice $ 25,000 $ 23,000 $ 15,000 $ 15,000 $ 35,000 Developed service $ 23,000 $ 47,000 $ 25,000 $ 25,000 $ 30,000 Total Benefits $ 198,000 $ 220,000 $ 115,000 $ 130,000 $ 155,000 Costs of option Year 1 Year 2 Year 3 Year 4 Year 5 Developed service $ 270,000 $ - $ - $ - $ - Additional hardware $ 45,000 $ - $ - $ - $ - Operational Cost $ 3,000 $ 2,000 $ 2,000 $ 2,000 $ 3,000 Development of user time $ - $ - $ - $ - $ - Cost maintenance $ 3,000 $ 2,000 $ 2,000 $ 2,500 $ 2,000 Total Costs $ 321,000 $ 4,000 $ 4,000 $ 4,500 $ 5,000 Net Cost/benefit $ (123,000) $ 216,000 $ 111,000 $ 125,500 $ 150,000 Cumulative benefits/costs $ (123,000) $ 93,000 $ 204,000 $ 329,500 $ 479,500 Net benefits/cost (NPV @ 5%) ($117,142.86) $195,918.37 $95,885.97 $103,249.16 $117,528.92 Cumulative NPV ($117,142.86) $78,775.51 $174,661.48 $277,910.64 $395,439.57 Key Performance Indicator According to Li, Dong and Chen (2012), the key performance indicator helps in evaluating the success of an organization by engaging into a particular activity. Following are the key performance indicator for adoption of new technologies at Citrus Group Pty Ltd New technology development plan including budget estimation Estimation delivery date vs. actual delivery date Number of bugs Explanation on the difference of the development site Successfully completion of the project Find out the ways to development of the task in better way Changes needed in the Organizational Structure for adopting and integrating website implementation in Citrus Group Pty Ltd Changes in the Structure of Citrus Group Pty Ltd Adoption of digital innovation within the organization Citrus Group Pty Ltd helps in generating digital trust within the community as well as in the market place (Dwyer Marsh 2016, pp. 241-243). The structural as well as managerial changes, which are required, include: Providing training to the employees: The employees of Citrus Group Pty Ltd must be trained properly as they do not have proper technical knowledge (Hjalmarsson Rudmark 2012, pp. 28). The training session not only improves their knowledge but also helps in improving their skill of working. Figure 3: Structural as well as managerial changes (Source: Kosinski, Stillwell Graepel 2013 pp, 5802) Proper co-ordination: Proper co-ordination between various members of the organization must be needed in order to adopt digital innovation properly (Carpo 2013, pp- 61). Co-ordination between various managerial level helps in taking proper decisions, which are associated implementation of various digital technologies. Creating more-agile teams: The teams help in the procedure of adoption of digital innovation. They also help in implementing the technologies properly for developing a digital culture within the organization (Jarvenpaa Tuunainen 2013, pp. 224). They help in operating autonomously for pursuing innovation as well as in running various functional projects. Digital Trust needed in Citrus Group Pty Ltd The digital trust can be generated within the organization Citrus Group Pty Ltd by adopting some of the techniques, which include: Account for the downstream uses of data sets: The data as well as information of the organization must be utilized in a consistent way by understanding the status of the data, which includes public, private and proprietary (Trefler 2014, pp. - 61). It helps in increasing the digital trust within the organization. Privacy and security: It is quite important for the organization to enhance trust within the customers of the organization (Ramilo MR 2014, pp - 57). This can be done by adopting various technologies, which can collect various data and information of the users secure as well as confidential. Conclusion It can be concluded that adoption of digital innovation is very much significant for the organization in order to improve their sales. It not helps in enhancing the sales of the organization but also helps in building better customer relationship. It helps in satisfying the customers assists in providing opportunity to the consumers to that they can communicate properly with various executives of the company. It is analyzed that the procedure of digital innovation is adopted by the organization in an efficient as well as effective manner. Recommendations There are certain recommendations for the organization, which includes: Proper training to the employees: The employees of the organization must be provided proper training so that they can develop the various systems associated with digital innovations within the organization properly as well as effectively. Security: It is very much important for Citrus Group Pty Ltd to provide proper security in order to keep the data and information of the organization secure as well as confidential. It helps in keeping various significant data and information of the organization safe. Implementation of proper rules and policies: The organization must use licensed software and it is quite significant for the company to implement effective rules as well as policies in order to perform the various operations of the organizations properly. References Akram, R.N Ko, R.K, 2014, September. Digital Trust-Trusted Computing and Beyond: A Position Paper. 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