Impact of IT Systems on Business Problem Solving

This report discusses the impact of IT systems on solving business problems, the use of IT systems in different functions of an organization, and ways in which IT systems store and process data for knowledge management. It also explores how IT systems can support customer relationship management and value-added change within Tesco.

BUSINESS INFORMATION
TECHNOLOGY SYSTEMS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Impact of IT systems and their contribution to solving business problem..................................1
Use of IT systems within different functions of an organization.................................................1
Introduction to Tesco...................................................................................................................2
Manual process of transformation...............................................................................................2
Different ways IT systems store and process data for Knowledge management........................3
Ways in which proposed system help in customer relationship management.............................3
Techniques that can be adopted for data management................................................................4
Communication management......................................................................................................4
Ways in which IT systems can be used to support value-added change for improving business
operations, performance and sustainability within Tesco............................................................5
Recommend practical IT solutions for common business problems found within Tesco...........5
CONCLUSION ...............................................................................................................................5
REREFENCES................................................................................................................................7

INTRODUCTION
Information technology system are those systems that are combination of software,
firmware, computer hardware, telecommunications capabilities and other automated or
computerized items that helps an organization enhance overall performance of an organization, b
ringing improvement within overall operations of the organization and also helps them to
achieve their desired goals or objectives in a excellent manner (Lohrke, Frownfelter-Lohrke and
Ketchen Jr, 2016). Information technology system also helps an organization to analyse risk
associated with their operations and functions of the business so that those risk can be managed
in an appropriate and effective manner. This report will lay emphasis upon IT systems and their
contribution to solving business problem, IT systems use in different functions of an
organization, different ways IT systems store and process data for knowledge management, ways
in which IT system help in customer relationship management, techniques for data Management,
communication management and ways in which IT systems can be used for supporting value-
added change for improving business operations. This report will focus on IT system used within
Tesco.
MAIN BODY
Impact of IT systems and their contribution to solving business problem
Today, due to advancement in technology usage of Information technology within
organizations has also increased. IT systems includes various kinds of products and services that
can impact day to day security and operations of organization in many ways. Today usage of
Information technology system has increased in many different ways. Not only this, today due to
increasing usage of such IT systems within organizations, it has become one of the main and
integral part of organizations because of which various kinds of business problems can be solved
(Paul and et. al., 2018). One of the most important and major problems faced by business
organizations today is security of data and information stored within the organization. IT system
helps in providing excellent security to all the data and information that are stored within an
organization. Such systems can also protect an organization’s data from hackers who can either
steal or corrupt the data. IT systems has also helped business organizations in enhancing their
overall communication within an organization with both internal and external stakeholders. IT
systems can also organization to automate all of their task so that efficiency and affectivity of the
task can be increased.
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Information technology can be defined as most amazing thing that aids business
in improving their security and operational efficiency both. Companies face major issue of
security, these business problems affect the sustainability of firm badly. If confidential details are
leaked then it may affect it profitability to great extent. Information technology is able to solve
that business problem as use of advandce software allows firms to store confidential files safely
in this system. This data can be accessed by only limited people and only these people will have
password of system. Though many hackers still have option to use these hidden files but now a
days new advance software are here that protect system from these hackers. IT plays significant
role in exchanging information immediately. One of the major issues in business is circulating
new information at entire floor of company. Email, routers have made it easy for the
organisation to let others inform about the changes occurring in firm and new updating as well.
This IT system makes this information exchange so easy and smooth. Within limited time
company can circulate important information to many people without any trouble.
Business also faces issue of financial planning. Many times manual records of
cash inflow and outflow create problem for company. Use of advance information technology
such as ERP software help company in improving visibility of transactions and controlling over
entire assets so that cash transaction of the firm can be improved and mistakes can be minimised.
Keeping records of inventory, purchasing is very difficult. This may create issue in meeting
customer demand timely but IT helps in resolving this business problem easily by managing
warehousing perfectly.
Use of IT systems within different functions of an organization
Information Technology Systems can be used within retail sector organizations like Tesco
for various kinds of business functions. It can be used for planning, inventory control, managing
budgets and sales goals, logistics and sales transaction. There are various kinds of IT systems can
be used for different purposes such as:
Inventory management system can be used by retail sector organizations like Tesco for
tracking inventory levels, orders, sales and deliveries (Luftman, Lyytinen and Zvi, 2017). It can
also be used for creation of work orders, billing of raw materials etc. these IT systems also helps
in avoiding situations like product overstock and outages. It also helps in storing all kinds of data
related to inventory items within the system in a proper and arranged manner. It further helps in
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keeping a track of all the items present within the warehouse with the help of barcode and RFID
technology.
Customer relationship management system is used for maintaining data about current and future
customers of the organization, in it further helps in resolving problems or issues of their
customers in order to build a strong relationship with them.
Information technology is used by companies in many departments. Production
department is considered as most essential functional unit. In this department ERP IT system is
used by companies. This software keeps records of warehouse inventory and all purchase and
manufacturing units. This recording help in analysing need of new raw material. By this way
existing resource can be used properly by business and firm can raise its productivity as well. IT
system is also used by sales department. Sales team uyse advance CRM software to interact with
consumers. Through this software team get to know about needs of buyers and serve them
accordingly (Seyffarth, Kuehnel and Sackmann, 2018). Use of mobile application helps in
providing immediate response to consumers so that they become loyal and frequently buy
services of organisation. In the recent era million of people are using smart phone and they use
online services. They get amazing experiences by using this mobile application which boost sales
of company and also help in promoting the brand in market successfully. Use of IT is also done
in research and development department (Åkerblom and Nilsson, 2017). R&D is considered as
most essential functional unit which is responsible for researching new things that can improve
productivity of company and can boost its sales to gain competitive advantage. R&D unit use
such software through which responses of customers are recorded and analysed. This software
help in knowing more about market and implementing new things at workplace through which
customers satisfaction can be raised in business unit.
Introduction to Tesco
Tesco is a Multinational British merchandise and groceries retailer that was founded in
1919 whose headquarter is in Welwyn Garden City, Hertfordshire, England, United Kingdom. It
is third largest retailers present in the world in terms of gross revenue but when only revenue is
considered then they are ninth largest retailers present in the world. They have approximately
450,000 employees working for them. Tesco uses various kinds of Information system in order
to gain competitive advantage uh as barcode scanner, point of sales etc. But they still need to use
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and implement advance Business Information Technology Systems in order to enhance their
customer relationship and completely transform into a digital firm.
Manual process of transformation
Warehouse management system of Tesco is still partially manual. They still use pickers
and fork-lift trucks for material management of items within their warehouse (Rathi and Given,
2017). Not only this they still manually count their inventory while displacing their inventory
items from one place to another. It is extremely important for Tesco to use advance inventory
management system so that they can automate management of their inventory items. Due to
their manual material handling their warehouse management is not that effective, they need to
integrate their warehouse management process with inventory management system so that
manual process of handing items within warehouse can be controlled (Seyffarth, Kuehnel and
Sackmann, 2018). This process cannot be completely automated but can be transformed in order
to increase its effectivity and efficiency.
Different ways IT systems store and process data for Knowledge management.
There are various kinds of information technology systems that can be used for knowledge
management in many different ways as knowledge management is one of the most important
things which is required to be focused upon by the retail sector organizations. it helps in
providing competitive advantage to both employees and organization. Knowledge management
is a highly iterative and important process especially for retail sector organizations as it helps in
management of six major task, that are: create, capture, refine store, tag and circulate (Mora and
et. al., 2017). With the help of IT system organizations can capture and store required data within
an appropriate and specific location, refine the data as per the usage and its importance within
the organization and then transmit required information to its stakeholders and store it within the
system. Some of the most common IT system that can be used by retail sector organizations for
storing and processing data or information for knowledge management are: Expert systems,
Groupware, SharePoint, Decision Support Systems and Database management system (Lohrke,
Frownfelter-Lohrke and Ketchen Jr, 2016).
Ways in which proposed system help in customer relationship management
IT system in the Tesco company is useful because it makes easy for the customers to
make their things easy and build the good relationship with the company. The Inventory
management system can be used to help the customer relationship management because
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inventory management will make available the resource of the company, and they will able to
provide the products to the customers. This will provide satisfaction to the customers, and they
can easily fulfil their needs and demand (Feiner., Polymer Logistics Israel Ltd, 2019).
Employees can also provide fast and better services to the customers. Management of the
inventory is important for the company because proper availability of the products can be
used to satisfy the needs of the customers. Tesco company can provide products to the
customers whenever they want, and they can make good relationship with the customers and
they can also gain customer loyalty. Availability of the the resources on the time means the
more satisfaction to the customers of the company. This system calculates that how Mach
resources can be needed and who are their local customers so as per the demand of the
customers it will calculate and provide data and ability of the resources in the companies
inventory.
Techniques that can be adopted for data management
Data management is the process in which company collect the I informative data which
can be used To find the useful information. Data management strategy is the process of planning
or creating strategies/plans for handling the data created, stored, managed and processed by an
organization. It is an IT governance process that aims to create and implement a well-planned
approach in managing an organization's data assets (Sarma., 2017). There are different types of
the data management technique. To collect the informative data internet is the best way too find
the useful data. Every kind of data is available on the internet. If company what's to collect the
data related to their customers they can take the self of the internet and find the data about the
market where they want to enter or promote their product to aware the people in that particular
area. Some of the most commonly used data management techniques used by organizations are:
first if database management system which helps an organization to manage and store all the data
or information of an organization in a proper and structured manner. It is extremely useful
especially for storage of financial records or data. It helps an organization to reduce duplication
of data entries by creating primary and foreign keys. Another technique is data integration in
which extract, transform and loading of information within target system. It is a kind of
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integration process that runs at scheduled intervals. It is one of the most common technique of
data management within an organization.
Communication management
Communication management is the systematic plan or the management system in
which implements and the mothering of the channels and the content of the communication
take place. This management system is used by the managers of the Tesco company to manage
the activities f their employees (Demek and et. al., 2018). To manage the communication at their
workplace they organize the group practices in which employees work in group and help each
other in the task. This create flow of effective communication at the workplace. In a group
employee can do their work more effectively as compare to the individual employees, they take
less time in group, and they also get change to make good relationship with the other employees
who are working in a TESCO company. Another communication management Technique used
by the mangers is organization fun activities (Tamura and Tsubone, Ricoh Co Ltd, 2017). This
is used for the company to manage the flow of communication at the workplace. Employees
will always be active, and they give their best in the task. Superiors of the company used some
communication system at the workplace such as Email and telecommunications system which
makes easy for the employees to get the fast and secure information. This is useful because they
can store the information for the long time and use it again when they need it.
There are various kinds of useful information technology systems that can be used by
organizations like Tesco for communication management. These systems help organizations to
maintain communication between both internal and external stakeholders of the organization.
Not only this, such communication management system also helps in management of flow of
data or information within an organization. It helps in increasing efficiency of an organization
and utilized centralized web- based tool for storage and management of business
communications. It further helps in drive and track task completion like automated email
notifications so that current stage of a task can be tracked and time required for its completion
can be estimated..
Ways in which IT systems can be used to support value-added change for improving business
operations, performance and sustainability within Tesco
IT system helps to make the companies operational system smoother ad better. Company
is using different different It system which help them to take decision for the company and solve
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the problem which occurs at the workplace. Implementation of the new equipment at the Tesco's
workplace is useful to add value for the company and improve their process and increase their
productivity. Productivity of the Tesco company increase, and they can take competitive
advantages. It also helps to improve the quality of the product. They can provide quality product
to their customers and satisfy their needs and their demand. This brings the sustainability I the
business and company can show their name as a emerging brand (Arnott, Lizama and Song,
2017). The equipment boost the performance of the business, and they can make more product
in less time. This is more betters compare to the human power. Some of the problem solving It
system help to overcome problem the problem because it collect all the data about the company
and provide the information about the weakness so they can solve the problem and company
achieve their goals and their objectives.
Information technology systems helps an organization like Tesco to identify value added
processes within their supply chain so that advance IT systems can be implemented within the
organization. Implementation of such systems within an organization can help an organization to
meet changing needs and requirements of their customers and keep a track upon their changing
buying behaviour and habits so that they can bring changes within their other business strategies
in a proper and effective manner.
Recommend practical IT solutions for common business problems found within Tesco
IT is useful for the TESCO company so solve there common business problem. Company face
different problems at their workplace and IF solution are the operation to overcome from this
problem.
Decision making – If solution can help the companies superiors in the decision making process.
They can take the help of the decision making system of the Information technology and use it
to take the decision for the company (amura and Tsubone., Ricoh Co Ltd, 2017). This helps to
provide the information about the companies weakness and their solution as well so it makes
easy for the superiors to take steps for the companies decision making process.
Productivity – New technology implementation can boost the productivity of the TESCO
company, and they can make their business to achieve the higher growth and objectives.
Automated system for items management within inventory- it is one of the recommended
solutions which will help Tesco to resolve their business problems in an effective and
appropriate manner. It is important to be focused upon because They still use Fork lifts to to
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transfer items present within their warehouse from one place to another. They still manually keep
a track of their inventory items. Automated system will help them to keep a track of all of their
items present within their warehouse and will also help them to track their items and their
movement form one place to another with the help of RFID technology.
CONCLUSION
AS per the report has been coved the case study of the Tesco company. It has been
provided the information about the IT systems used by the company at their workplace and
importance of the IT system for the company. It has been included that how communication
system works and analyse the knowledge system and their benefits to the Tesco company In the
end of this report has been provided the IT solution for the common business problems at the
companies workplace to make business successful. From the above report it has been analysed
that it is extremely important for organizations to adopt flexible and reliable IT systems so that
they can bring efficiency, effectiveness and automation within their manual operational or
functional processes so that all the data or information can be stored and managed in an effective
and appropriate manner.
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REREFENCES
Books and Journals
Åkerblom, P. and Nilsson, J., 2017. Knowledge Management Systems Issues Within
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Arnott, D., Lizama, F. and Song, Y., 2017. Patterns of business intelligence systems use in
organizations. Decision Support Systems, 97, pp.58-68.
Dawson, M. E., Schell, A. M. and Filion, D. L., 2017. The electrodermal system.
Demek, K.C., and et. al., 2018. Do organizations use a formalized risk management process to
address social media risk?. International Journal of Accounting Information
Systems, 28, pp.31-44.
Lohrke, F.T., Frownfelter-Lohrke, C. and Ketchen Jr, D.J., 2016. The role of information
technology systems in the performance of mergers and acquisitions. Business
Horizons. 59(1). pp.7-12.
Luftman, J., Lyytinen, K. and Zvi, T.B., 2017. Enhancing the measurement of information
technology (IT) business alignment and its influence on company performance. Journal
of Information Technology. 32(1).s pp.26-46.
Mora, M., and et. al., 2017. The evolution of the business-IT strategic alignment process: key
insights and emergent views from a 40-year period (1975-2014). International Journal
of Business Information Systems. 25(1). pp.118-143.
Paul, P., and et. al., 2018. Business Information Sciences Emphasizing Digital Marketing as an
Emerging Field of Business & IT: A Study of Indian Private Universities. IRA
International Journal of Management & Social Sciences,(ISSN 2455-2267). 10(2).
pp.63-73.
Rathi, D. and Given, L.M., 2017. Non-profit organizations’ use of tools and technologies for
knowledge management: a comparative study. Journal of Knowledge Management.
Sarma, K. S., 2017. Predictive modeling with SAS Enterprise Miner: Practical solutions for
business applications. SAS Institute.
Seyffarth, T., Kuehnel, S. and Sackmann, S., 2018, July. Business Process Compliance and
Business Process Change: An Approach to Analyze the Interactions. In International
Conference on Business Information Systems (pp. 176-189). Springer, Cham.
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