Use of IT System in Business Operations

BUSINESS INFORMATION TECHNOLOGY SYSTEM
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Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
P1 Analyse the use of IT system within the different function of an organization.....................3
P2 Explain how IT system contributes to the achievement of objectives in a specific
organizational context..................................................................................................................4
P3 Analyse the different ways IT system store and process data for knowledge management,
customer relationship management, data management and communication management
system..........................................................................................................................................5
P4 Evaluate that how IT system can be used to supports the value-added change for improving
business operations and performance, functionality....................................................................7
P5 Recommend practical IT solution for organizational scenarios that mainly covers wide
range of common business problem at workplace.......................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Information technology or IT means the set of any components which help the business
to work together so that they can manage the data processing and organize their storage. This
system supports the company in running of their key aspects which include the book keeping,
data management and analysis of the data, improving business operations, gain competitive
advantage over their competitors and increase their market share. Tesco has started using IT
technology to improve their operation in the market. This assignment will lay emphasis on use of
IT system within the different function of an organization, IT system contributes to the
achievement of objectives in a specific organizational context, ways in which IT system can be
used to improve business operations, reliable IT system that can be used to respond to
organization’s requirements.
MAIN BODY
Overview:
Tesco is a multinational company which deals in retailing of the groceries and general
merchandise, the company was started in the year 1919 by Jack Cohen, the company has an
operating income of £2206 million in the year 2019. The company has diversified in a variety of
sectors including banking, mobile etc. the company growth has been seen good in the recent past
years and they have good prospects for the future.
P1 Analyse the use of IT system within the different function of an organization.
The IT system can be very useful in managing the different function of the Tesco. This is
explained below.
The different technologies boost Tesco’s performance, productivity and their day to today
operations. They help Tesco develop new ways to earn revenue as they help in the research and
development of the company. Tesco can-do long-term planning with the help of IT as there is all
the information available at a single platform, so with this they can plan what their customer
wants, where they can find the cheapest supplier so that they can minimize their cost and
increase their profits. IT allows companies like Tesco to be more accurate which help them in
making better decision making (Jaques, 2017). Tesco uses software like Enterprise Resource
Planning (ERP) systems so that they can manage their accounting and financing operations
which shows the company current profits, historical profits and the prediction of the company
for the future according to the inflation and interest rates, so that the company can decide
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whether to continue their operations or not. In the long term these ERP systems are very useful
as they reduce Tesco operational cost.
With the help of IT Tesco is able to expand their operation worldwide as they can use
online sites to sell their product. The company can market their product with the IT technologies
available. They can use social media sites like Facebook and Instagram to advertise their
product, they can also use other websites like YouTube to promote and market their product. The
company is thus able to maintain their competitive edge through these IT.
IT also helps in recruitment and hiring process as this helps in communicating vacancy for
a large number of people an all those who match the requirement can come and interview for the
position, this helps Tesco in having a large number of option available to them, so that they can
hire the best option available (Laudon and Laudon, 2016). This will help Tesco to select the right
employee for the right position which in turn help the employee to be motivated to work as they
like the work they are performing. This also help in increasing the retention rate by reducing the
staff turnover in the company.
IT also helps Tesco in finding out what their customer preference are and with this
information the company can give the customer exactly what they want (Argyris, 2017). The
company receives feedback about their product through their online websites and they come to
know about the customer complaints and their preferences and the company can customize their
products.
P2 Explain how IT system contributes to the achievement of objectives in a specific
organizational context.
IT systems plays a vital role in achievement of organizational objectives and helps the
organization in achievement specific goals and objectives in various manner. these Objectives
have help Tesco in achieving Operational Excellence. Tesco has achieved such growth in the
retail industry with the help IT systems managing their operations. Information technology helps
an organization in managing three main primary resources of an organization i.e. people,
information and technology which further helps in decision making (Safa and et.al., 2015). IT
systems can help an organization like Tesco to analyse each and every organizational activity of
their business it plays a vital role in achieve specific organizational objectives because it helps in
managing their human resources and makes decision making more effective. Proper and
effective use of management information system helps in planning for achievement of
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