Impact of IT on Business Operations

The assignment discusses how businesses can utilize IT to enhance their operations, manage supply chains more effectively, improve customer relationships, and make data-driven decisions. It also recommends the use of cloud storage for maintaining integrity of information and designing custom applications to facilitate customer access to services.

Business IT
Systems

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Usage of IT systems in various functions..............................................................................1
P2 Contribution of IT systems for attainment of objectives.......................................................2
P3 Ways for storing and processing data from IT systems.........................................................4
P4 Usage of IT systems within within value-added change.......................................................5
P5 Recommendations for IT solutions........................................................................................5
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

INTRODUCTION
Information system is an umbrella term that is being used for processes, people as well as
systems that are configured for creation, storage, manipulation, distribution as well as
dissemination of information (Blundell-Wignall, Atkinson and Roulet, 2014). Information
technology refers to examination, designing, execution, supporting or management of computer-
based information systems. They comprises of networks, database, software as well as hardware
that are responsible for governing digitized data that is generated by telecommunication and
computing. This report is based on Morrisons which is a public limited organisation and was
founded by William Morrison. They have around 500 stores that deals within clothing, food and
drink, books and DVDs. This report will include usage of IT systems, their contribution in
attainment of goals and storage along with retrieval of information. Apart from this, value added
changes have been illustrated for improvisation in business activities.
P1 Usage of IT systems in various functions.
Information technology systems acts as a means for organisation within their
communication as well as computer system that comprises of websites, software and hardware
(Brandon, 2016). As IT is rapidly evolving, cloud computing along with virtualisation has been
included which will provide organisation with resources that have abstracted (hidden) as well as
pooled in diverse configurations for meeting the needs. For an instance organisation can store
data in there systems but they are actually stored within cloud and can be retrieved whenever it is
required by them. Morrisons have around 498 stores in different sections of United Kingdom and
at present scenario, they are fourth largest supermarket within UK. This makes it essential for
them to make use of IT systems. This can be understood by an example suppose management
needs to have a meeting with respect to sales that occur on weekly basis. It is not possible to visit
all the stores as its not possible and even while meeting at some point it will also lead to wastage
of time. If they make use of IT then they can have discussions through video conferencing and
can share their opinions so that sales can be enhanced. As Morrisons, is shifting to usage of
information technology, it will aid them to carry out their diverse functions, they have been
illustrated below:
Finance activities: They are crucial part within every organisation as without this
element it is not possible to carry out their operations in an affirmative manner (Cassidy, 2016).
1

The reason behind this is that even a single zero will lead to adverse impact on ways in which
organisation carry out their operations. By the usage of IT systems, Morrisons can ensure safe
and accurate transactions takes place. For this, they can make use of transaction processing
system that is a type of information system that is responsible for collection, storage,
modifications as well as retrieval of data transactions of an firm. The finance department of
Morrisons can use this for transferring funds as well as maintaining their budget with respect to
day to day activities. It will assist them to save cost along with time through automation of
repetitive operations at larger volume (Chang, 2016).
Research & Development operations: It is not feasible to carry out manual research
every time as it is not possible. By making use of information technology this process gets
simplified. This can be understood by taking an example with respect to Morrisons. For an
instance, the reviews attained by people on social media pages or on their websites can be taken
into consideration by R&D department of Morrisons. By making use of simulation tools,
feasibility of their designs can be evaluated and it can be identified that whether they look
impelling or not to attract customers towards them. Accordingly designs can be altered. Various
simulation tools are provided by Intel that can be used by Morrisons for carrying out their
operations (Galliers and Leidner, 2014).
Human resource operations: HR is essential aspect within every organisation as they
are responsible for carrying out recruitment and selection of employees. Suppose, if employees
hired by them are not effective then it will lead to decline within overall performance of
organisation. With respect to Morrisons, HR is liable to attract more number of people towards
interview process. For this, they can make use of online advertisements on social media profiles
such as Facebook, LinkedIn, Instagram and even Twitter. This will enable them to get attention
of wide number of individuals. This means that HR of Morrisons have option for selecting an
appropriate candidate through a pool of skills.
P2 Contribution of IT systems for attainment of objectives
Information technology has made wide contribution while rendering services to
organisation or an individual. It will aid them to furnish their operations in an enhanced thereby
leads organisation to have affirmative results (Jones, 2014). Morrisons can make use IT systems
for attaining their objectives as well as entire goals. Their contribution has been specified below:
2

Process improvisation: Organisations can make use of enterprise resource planning
(ERP) which allows them (firms) to have a system of integrated applications for managing
business as well as automate office functions with respect HR, services as well as technology.
This will assist Morrisons to analyse overall sales which occurs on day to day basis. In addition
to this, cost of services, operating metrics along with this management can make use of unified
software platform in real time (Kim, 2015). Through usage of ERP system, Morrisons will be
able to appropriate system for their individual departments that will make their entire process
efficient cost as well as time efficient. Morrisons can utilise ERP system for making their
processes accurate and quick so that affirmative results can be obtained along with this there will
be reduction in errors, quick decisions can be made which will lead to enhanced profitability.
Product Development: IT will lead to enhancement in speed in way products reach the
market. Through the usage of proprietary data as well as marketing intelligence. According to
this, they formulate document so that they can have entire analysis of needs. For this, Morrisons
can make use of computer aided design (CAD) to take in decisions in an effectual manner.
Along with this, online chatting, SMS, media spaces, collaborative virtual environments can be
used by them, they are known as collaborative technologies. They will assist them to respond to
needs of individuals. This will aid Morrisons to formulate effectual decisions with respect to
what people need and what actually they are being given (Laudon and Laudon, 2015).
Competitive edge: Rapid product product development by the effectual usage of
guidelines furnished by R&D department of organisation will assist organisation to have desired
results along with this they can maintain their competitive position within market. For an
instance, if Morrisons opt for having their own applications for their probable customers then
there will be relevant enhancement in sales that will take place. In addition to this, by this
management of Morrisons will also be able to attract more number of customers towards their
services as people at present scenario are more open to online services rather than going for
offline. This denotes that their will be relevant enhancement within ways they furnish their
services as well as increased profitability.
From above it can be said that IT will be making huge contribution within ways through
which Morrisons is carrying out their operations (Laudon and Traver, 2016). This will lead them
to have enhanced results as they will be able to attain their goals in given time duration.
3

P3 Ways for storing and processing data from IT systems.
Data storage refers to aggregate method as well as technologies for capturing as well as
retention of digital information on different storage media. It is a key element of digital devices
for preserving information. At present scenario organisations can opt for cloud storage in which
digital data can be stored within logical pools in multiple servers. The cloud vendors are
responsible for storing data as well as making it available when ever it is required by user
(Pearlson, Saunders and Galletta, 2016). For an instance, Morrisons can have cloud storage from
a third party who is having a storage capacity and is efficient for delivering the same information
when it is required. For this, as per the space required they can pay and in case if they need more
space then they can pay for same and vice versa. Vendors of Morrisons will be liable for
managing, securing as well as durability of information all around world.
Data processing takes place when data is gathered and it needs to be transformed into
useful information. Generally, it is carried out by experts or top executives that are present
within organisation. At present context as Morrisons is shifting towards technology, they can
make use of electronic data processing. It is a modern technique that can be used for data
processing. In this case, input will be given top computer and operations will also be specified so
that respective actions can be carried out. For an instance, HR can use this for calculation of
salaries with respect to leaves taken by them. This will give them knowledge about certain
aspects (Rosemann and Brocke, 2015).
Customer relationship management, as information is retrieved from data processing
and stored in some mediums. When any kind of queries are asked by customers then employees
of Morrisons can give quick response to them this will lead them to have affirmative relationship
wi9thj their customers as they get quick response.
Data management, can be used by organisation to ensure security as well as timely data
is available to users. This will assist employees of Morrisons to carry out their operations in an
enhanced manner.
Communication management, refers to interchange of information in between receiver
as well as source through the usage of transmission media such as wire cable, optical fibres, etc.
For an instance if email is sent by management of Morrisons then they will act as source an the
one to whom it is sent are receiver (Blundell-Wignall, Atkinson and Roulet, 2014). Aim of data
communication is to transfer data along with their maintenance while carrying out the process.
4

P4 Usage of IT systems within within value-added change.
In this digital age, information technology can be used in an efficient manner for
supporting value added changes within business organisation which will lead improvisation in
their stability, performance as well as it will ensure long term sustainability within the market
(Brandon, 2016). With respect to this, it is crucial for management of Morrisons to possess
knowledge with respect latest trends within market in context to evolvement of technology. It
becomes necessary to have strategies with respect to that so that they can effectively use IT
within their processes as well as engage employees in the same. For an instance if Morrisons will
have their own app then people will have option to go for their services as it is easiest way to do
shopping by sitting at home. It will lead them to have significant enhancement within their sales.
This will also make them aware about products which they have to store in their warehouse
before they go out of stock. For this, they can make effectual use of information systems like
knowledge IS, management information system, transaction processing systems and various
others with respect to their needs. This will assist them to have affirmative impact on overall
productivity as well as profitability of Morrisons. Along with this, they will remain updated with
respect to latest trends prevailing within the market (Cassidy, 2016).
P5 Recommendations for IT solutions.
It has been recommended to Morrisons that by making use of IT in their working process,
they will be able to carry out their operations in an enhanced manner as well as within time.
They can make use of cloud storage for maintaining integrity of their information as well as all
the crucial details associated with their employees, customers as well as other stores. This will
aid them to have quick decisions. Furthermore, they can design their own applications to
facilitate their customers to have quick access to their services.
Conclusion
From above, it can be concluded that, information systems can be utilised for storing,
processing as well as retrieving information. It has wide contribution within organisation. Along
with this, IT assist firms to carry out their operations quickly as well as in enhanced which yields
them with affirmative results.
5

References
Books & Journals
Blundell-Wignall, A., Atkinson, P. and Roulet, C., 2014. Bank business models and the Basel
system: Complexity and interconnectedness. OECD Journal: Financial Market Trends.
2013(2). pp.43-68.
Brandon, D., 2016. The blockchain: The future of business information systems. International
Journal of the Academic Business World. 10(2). pp.33-40.
Cassidy, A., 2016. A practical guide to information systems strategic planning. Auerbach
Publications.
Chang, J. F., 2016. Business process management systems: strategy and implementation.
Auerbach Publications.
Galliers, R. D. and Leidner, D. E., 2014. Strategic information management: challenges and
strategies in managing information systems. Routledge.
Jones, C. B., 2014. Geographical information systems and computer cartography. Routledge.
Kim, Y. J., 2015. Convergence of Business Information System Process using Knowledge-based
Method. Journal of the Korea Convergence Society. I(4). pp.65-71.
Laudon, K. C. and Laudon, J. P., 2015. Management Information Systems: Managing the Digital
Firm Plus MyMISLab with Pearson eText--Access Card Package. Prentice Hall Press.
Laudon, K. C. and Traver, C. G., 2016. E-commerce: business, technology, society.
Pearlson, K. E., Saunders, C. S. and Galletta, D. F., 2016. Managing and using information
systems, binder ready version: a strategic approach. John Wiley & Sons.
Rosemann, M. and Brocke, J. V., 2015. Handbook on business process management 1:
introduction, methods, and information systems. Springer.
6