Role and Importance of IT System in Business Operations - Aston Martin Case Study

This assignment discusses the role and importance of IT system in developing functions of Aston Martin. It also explores how IT systems store and process data for CRM, communication, and data management. Additionally, it suggests practical IT solutions for resolving business problems in the automotive industry.

Business Information
Technology System

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Use of IT system within different organisational functions..............................................1
P2 Contribution of IT System in achievement of organisational objectives..........................2
TASK 2............................................................................................................................................3
P3 Ways in which different IT system store and process the data for CRM, communication
and data management.............................................................................................................3
TASK 3............................................................................................................................................5
P4 Ways in which IT system can be used for supporting value-added change to improve
business operations.................................................................................................................5
TASK 4............................................................................................................................................6
P5 Practical IT solutions for resolving business problems.....................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Information technology in today's business environment, has completely changed the way
in which a company operates its functions. By reshaping entire activities, IT system has drive
new changes and success growth in business, that lead to create product differentiation as well
(Debnath, 2018). The present assignment describes role and importance of IT system in
developing functions of organisation. Aston Martin is chosen for this purpose, that deals in
automotive industry and operate business in more than 50 countries. A description about how
this company embedded IT system, for storing and processing data, with CRM management is
also made. Furthermore, IT solutions are recommended for this firm to manipulate automotive
design and resolve other business related problems.
TASK 1
P1 Use of IT system within different organisational functions
Information system can be defined as a set of components which align the different
operations of managing data storage and processing. Emergence of technologies within a
business, has completely revolutionised the way of company, in terms of operating business,
dealing with clients requisite and managing the relationship with stakeholders (Long, 2018). The
core business activities of any organisation like Amazon, Tesco and other, cannot be
accomplished without use digital networking system. In order to collect, store as well as process
data, companies use modern technologies that helps in streamline and automate such operations.
In context with automotive industry like Aston Martin, it is considered as one the global
automobile brand that trade its products over six continents with more than 50 countries. For
industrial success, IT systems like ERP, Embedded systems' application and more, are essential
for this firm, that helps in implementing innovations in vehicles, with increasing efficiencies of
operations and reducing costs (Aljawarneh and Al-Omari, 2018). Hereby, introducing ERP
system will help in controlling & monitoring the different projects simultaneously, with
increasing visibility of enterprise. While embedded system can be used for controlling and
accessing the data within e-based systems, such as microprocessor, DSPs, ASICs and more. This
system help in introducing new features like security, ignition, audio and security system within
vehicles. For this purpose, it is essential to bring cooperation among different departments.
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Human Resource Management: As operations of Aston Martin is expanded wide
manner, so, HR managers can use virtual collaborative tools like Google Docs, Redbooth, Quip
and more, to manage the work of remote team who are working from different locations
(Tilahun, 2019). For communicating, members of this team use e-mail, voice and video-
conferencing services. So, observing work of these human resources and provide guidance them
to work in collaboration, virtual collaborative tools prove much useful. Along with this, ERP
system can also be used strengthening collaboration with multiple vendors.
Operational Management: This department of Aston Martin can use ERP system to
integrate various value chain activities and managing the inventories (Mahmoudsalehi and et. al.,
2019). It also helps in managing and controlling several projects within a same duration, that
leads to reduce operational errors with increasing excellence as well.
Research & Department: by using software like ERP system, can aid R&D department
to explore a number of options for designing the new product. It also helps in making right
decisions for reducing quality costs, to ensure that Aston Martin has efficient quality assurance.
P2 Contribution of IT System in achievement of organisational objectives
Aston Martin mainly aims to manufacture best design of models for boosting its volumes
and expand business into new segments. To take advantage for future growth and achieve
business growth, management of this firm can use a number of IT systems. It includes Embedded
system that integrates the hardware circuitry like output circuits, memory devices etc. to provide
project solutions, with software programming techniques (Shladover, 2018). As Austin Martin
probably relies more on stable inventory as well as production processes. So, utilising ERP
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system, management of this company can simplify these processes by avoiding problems like
holding costs (Shladover, 2018). This system also synchronise the delivery of raw materials in a
precise way, by enhancing efficiencies of production. Furthermore, automating the processes and
business operations like production statistics, client data, sales data and more, also can be done
by using ERP system. All these procedures, lead to Aston Martin to accomplish its business
objectives with high quality assurance and without incurring unnecessary costs.
TASK 2
P3 Ways in which different IT system store and process the data for CRM, communication and
data management
Enterprise Resource Planning (ERP) System is used to collect and process data from
different business functions, that helps management of Aston Martin to analyse the information
by making sense to capitalisation. Such information include sales data, client data, new trends
and patterns etc. that can help in predicting demand as well as creating a new budget
(Gholampour and et. al., 2018). Therefore, using this type of IT System, HR managers can track
organisational productivity as well. Furthermore, for protecting valuable information, ERP
applications allow respective firm to access to reports and provide information to end users by
customisable dashboards, Gantt Charts and other visual representation.
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For customer relationship management, integrated CRM software within an ERP, can
allows management of Aston Martin to access customer address, billing information and more,
when processing shipments. By utilising ERP system, managers of respective automotive firm
can design as well as customise the customer care solutions. This would help in easily creating
the campaigns, track users data throughout the entire sales life-cycle and more, that gauge the
satisfaction of customers (7 Reasons ERP Systems are crucial to Automotive Industry Success.
2019). This would also allow in improving marketing tasks to reach out to a larger audience,
turning leads into sales, communicate with customers over all stages of purchasing process and
more. Thus, using CRM capabilities through ERP system, make it easy for Aston Martin to
improve long-term retention of customers, by addressing their needs.
For knowledge management, as automotive organisation can operate its business
continuously by complying functions with various regulations. It includes Federal Information
Security Management Act, Sabanes-Oxely Act and more. So, deploying the ERP system with
modules, that specifically designed to regulate compliance, helps in generating and managing
secure reports that can be submitted to regulatory bodies. Along with this, ERP also helps in
ensuring that information to different people are provided timely, that bring abilities to manage
knowledge more specifically by preparing reports (Ardolino and et. al., 2018). These reports
include knowledge about updated inventory status, KPIs, expense statements, income report and
more. While for data base management, ERP applications also eliminates the problems regarding
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with combining the data from different system software and processes. This IT system is capable
of enhancing security of database, optimise the accessibility of same, manipulating as well as
sharing data in real time manner, etc.
TASK 3
P4 Ways in which IT system can be used for supporting value-added change to improve business
operations
Organizations in today’s business environment always seek to become market leader to gain
high attention of customers. But factors like recession, intense competition, inflationary
pressures and more, can hinder their performance that might arise issues for achievement of this
goal (Karabegović and Husak, 2018). Therefore, in context with Aston Martin, it is essential for
this automotive firm to develop a number of strategies that build competitive advantages, like
adoption of information systems. This would help in making adequate use of its resources and
data, with reducing workload that leads to enhance performances. For this process, three main
processes are given where managers of respective firm can use IT system that will add more
value of business –
 Classify the component failure cause - In the dynamic business environment, in order
to remain an effective player, Aston Martin needs to be in-line with current as well as
advanced trends. Making changes in business like automations for improving quality of
vehicles will keep its customers intact with advanced competitive atmosphere. But
difficulty may arise to detect any root that may cause failure of any component failure.
Along with this, in such condition, taking decisions for if failed component of vehicle is
under warranty, also seems to be equally difficult (Aljawarneh and Al-Omari, 2018).
Therefore, for this purpose, build tree based methods and perform statistical analysis
through damaged codes and other method of data collection, lead to classify the root
cause of failure component. This would help in improvise the component failure with
increasing the great customer experience.
 Automotive analytics - Disruptions in dynamic environment are at the high peaks that
heavily contributes to major changes in every sector, with new sophisticated
technologies, products and more. The Automotive sector considers as one such segment
where, if Aston Martin is not added any value to vehicles, then, it may perish in no time.
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This leads to going down their business therefore, automotive analytics in such condition
would to optimize a number of factors like digitalisation, customer-centric and
globalisation, that could bank upon for successful expansion and survival of business.
TASK 4
P5 Practical IT solutions for resolving business problems
In automotive industry, introducing an advanced embedded system has made a number of
changes including from product differentiation to system improvement. Companies that dealing
in this sector, use to bring a number of embedded systems into their cars to offer different
functionalities such as ignition, audio system, security, vehicle tracking system and more
(Ardolino and et. al., 2018). Therefore, technological innovations by different applications of
embedded system within luxury vehicle, consider as the ambitiously challenge, for
manufacturing energy efficient vehicles, network savvy and safer. It has been evaluated that in
1968, Volkswagen that deals in automotive sector has used the first embedded system for adding
more features in cars. Some business related problems faced by automotive industries including
Aston Martin with IT solutions are given as below –
Problem Statement 1: Prevent brand image from negative feedbacks of customers
 Challenge - Identifying root cause behind negative perception of customers
 IT solution – Using text mining and sentiment analysis, to reveal accurate image of
brand on social media, will help in reducing negative perception of customers (Long,
2018). Furthermore, by finding the right forum where different types of discussion about
company’s products and service is made, will help in making interaction with potential
customers.
 Impact – By using above IT solution, management of Aston Martin can enhance product
or service in line with demands of customers. It provides a platform where this company
can perform customer analysis also.
Problem Statement 2: Predict vehicle maintenance
 Challenge – Four wheelers have high tendency to break-down when they are using for
long drive purpose, without any break. So, it reduces the customer satisfaction and impact
negatively on brand image.
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 IT solution – Devices like ‘Internet of things’, mobile apps and automotive telematics
solutions can be installed in vehicles that gauge the vehicle performance and probably
helps in predicting the break-down time (Debnath, 2018).
 Impact – Given IT solutions help in increasing customer satisfaction by reducing their
complaints, insurance claims and chance of break-down.
Problem Statement 3: Network optimisation
 Challenge – Optimising the routing due to volume of crowd, duplicacy in routing and
more, creates a huge challenge for automotive industry.
 IT solutions – By applying network analysis on traffic and routes, helps users in
identifying the effective routes for optimising trip timings (Gholampour and et. al., 2018).
Along with this, performing data simulation and measures of centrality can also use to
overcome from such challenge.
 Impact – It helps in effective management of routing with enhancement of public
satisfaction.
CONCLUSION
It has concluded from overall discussion that implementing digital technology or IT system
in business, aid a firm to add more value to its business. It helps in improvising the product
design, quality with efficiency of operations in short span of time, without need of unnecessary
cost. By adopting new technologies, a company can thrive market position and can rely on robust
analytical capabilities for driving actionable insights to take strategic decisions for how to remain
competitive.
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REFERENCES
Books and Journals
Aljawarneh, N. and Al-Omari, Z., 2018. The role of enterprise resource planning systems ERP in
improving customer relationship management CRM: An empirical study of safeway
company of Jordan. International Journal of Business and Management, 13(8), pp.86-
100.
Ardolino, M. and et. al., 2018. The role of digital technologies for the service transformation of
industrial companies. International Journal of Production Research, 56(6), pp.2116-
2132.
Debnath, S., 2018. Green IS–information system framework to support environmental
sustainability of firms. International Journal of Business Information Systems.
Gholampour, G. and et. al., 2018. A Qualitative Research on Strategic Performance of Supply
Chain-A Case study in Automotive Industry. International Journal of Industrial
Engineering & Production Research, 29(4), pp.497-513.
Karabegović, I. and Husak, E., 2018. The Fourth Industrial Revolution and the Role of Industrial
Robots: A with Focus on China. Journal of Engineering, 6(1), pp.67-75.
Long, R. J., 2018. New office information technology: Human and managerial implications.
Routledge.
Mahmoudsalehi, M. and et. al., 2019. Is information technology valuable for automotive
production industries? An empirical insight from Iranian automotive
industries. International Journal of Value Chain Management, 10(2), pp.107-122.
Shladover, S. E., 2018. Connected and automated vehicle systems: Introduction and
overview. Journal of Intelligent Transportation Systems, 22(3), pp.190-200.
Tilahun, M., 2019. A Review on Determinants of Accounting Information System
Adoption. Science Journal of Business and Management, 7(1), p.17.
Online
7 Reasons ERP Systems are crucial to Automotive Industry Success. 2019. [Online] Available
Through: <https://paginas.fe.up.pt/~als/mis10e/ch1/chpt1-1bullettext.htm>.
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