Importance of IT Systems in Business Success

The assignment highlights the crucial role of IT systems in facilitating small and large enterprises' success. It summarizes that IT systems help attain set goals and targets in a defined time frame by fulfilling users' needs and demands. The assignment also identifies various systems beneficial for company success and development, such as cloud technology and ERP systems. It concludes that information technology is a useful tool for resolving business problems.

Business Information
Technology Systems:
The value of effective
IT systems

INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
1.1 Use of IT systems with different functions of an organization.............................................2
1.2 Contribution of IT system in achievement of organizational objectives..............................4
TASK 2............................................................................................................................................5
Different ways IT system store and process data for knowledge management, customer
relationship, data and communication.........................................................................................5
TASK 3............................................................................................................................................6
Usage of IT systems for supporting value-added change for improving business operations....6
TASK 4............................................................................................................................................8
IT system solutions for organizational scenarios which cover range of business issues............8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Information technology is the use of computers for storing, retrieving, transmitting and
manipulating necessary data and organizational facts or figures. Main objective is to facilitate
corporate world with advanced technology for running their business operations in order to
accomplish various activities in a minimum time period (Zott, Amit and Massa, 2011). Prosyn is
an IT support organization situated in London for helping small organizations in order to get
most from Information technology. IT services of this enterprise include various things such as;
support in areas of cloud computing, IT security, GPDR, network setup, backup and disaster
recovery. Therefore, main objective of this assignment is to educate the clients about the
benefits of IT system in business operations. JS supermarket is a client of Prosyn on which
whole assignment is going revolve for understanding effectiveness of information technology.
Thus, use of IT system in various functions of an enterprise and its contribution in attainment of
set goals is discussed in the report. Furthermore, effectiveness of information technology while
resolving business issues is also outlined in the assignment. Hence, overall project is surrounded
with working and use of information technology at workplace by showing various scenarios.
TASK 1
1.1 Use of IT systems with different functions of an organization
Information technology helps in transferring the way of performing JS Supermarket and
its operations system by interacting with its stakeholders which includes several members such
as; employees, suppliers, customers and investors. Basically, IT system help JS Supermarket in
managing their day to day business operations, controlled various costs and support small firms
to compete with large and developed enterprise in competitive environment. Prosyn consultancy
firm plays a very crucial role in suggesting small firms and other clients about the benefits of
information technology (Yeoh and Koronios, 2010). In fact, this system support an entity in
performing their various organizational functions which is discussed as follows-
Communication- Initial use of IT system is that it helps members of entity while
interacting across distinct regions with high speed communication system. E-mail,
teleconferencing and internet calling permits employees to stay in connectivity with their long
distance colleagues as well as customers around the world. For example; employees of JS
Supermarket England can easily conduct their designing meetings with their US partners or
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colleagues by using video-conferencing. Along with this, staff members of an organization can
easily perform their official job role from home and log into by the use of company services.
Moreover, managers who are travelling can also respond towards their staff members or
customers through e-mail services by downloading the document with their mobile technologies.
Apart from this, one of the most beneficial thing of IT system which is suggested by Prosyn to
their clients is that; company can also exchange their information and necessary facts or figures
by using social media with their customers. As a result, this will help an enterprise in seeking the
attention of domestic as well as foreign users (Willcocks, 2013).
Data Management- It’s a key function of IT system which helps managerial function of
JS Supermarket while keeping the record safe and confidential. Thus, with the advancement of
technology managers of an organization can easily manage store their necessary data such as;
details of employees, salary slip, attendance, inventory records, financial documents and many
more. For example; by the use of excel application of computer technology, an organization can
easily maintained their financial records and calculate accurate amount of company profit or loss.
Marketing- IT system is mainly central to the promotional system of marketing. It
includes several things such as; designing advertising copy on powerful graphics computers,
setting adds on internet sources and processing online orders with the use of e-commerce site. In
fact, small firms can use internet search engines for identifying consumer purchasing trends and
determine profitable marketing opportunities. Along with this, software systems also permit JS
Supermarket for tracking the visits on their professional websites.
Process improvement- Prosyn suggest their training members of JS Supermarket that IT
also aids in enhancing manufacturing process by attaining a cost savings target. For instance;
small firms is using paperless interaction process at workplace for saving the printing and
duplication expenses and attained reliable data transfer. In fact, IT system supports in making
human resource processes more effective. Moreover, Virtual collaboration aids on expensive
travel expenses and enhance productivity because staff members don’t have to spend hours or
days at airport terminals (Laudon and Laudon, 2015).
Resource planning of organization- By the use of software system, JS Supermarket can
easily connect various functions of an organization that includes; sales, manufacturing, human
resource and finance. For large association, these system is very much expensive and installation
process consume number of days or months which resultant into disrupt of business operations.
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But at the same time, small firms can easily install software modules for specifically one
function in a single time which helps in minimization of cost and disruptions.
1.2 Contribution of IT system in achievement of organizational objectives
IT system is more effective in attaining business goals by helping staff members,
managers and various authorities while performing their assigned job role. In fact, facilitate
consumers with home delivery which automatically enhance the business performance by
satisfying needs and demand of desired customers. IT system of Prosyn support business entity
in various manner which is discussed as follows-
Marketing- Promotional activities are playing crucial role in encouraging JS
Supermarket sales towards set targets by facilitating consumers with best services. For example;
Prosyn suggested that marketing team have an opportunity to use social media for informing
domestic and foreign clients about their products and advanced services. As a result, number of
members gets connected with the services of an enterprise which automatically maximize the
sales volume of company. Therefore, with the use of IT system software marketing team can
easily promote their goods across the global platform by fulfilling the needs and demand of
distinct users (Popovič and et. al., 2012).
Finance department- Main objective of accounting team is to manage funds of an
organization by maintaining finance records such as; preparing trading account, balance sheet,
profit & loss account, ledger, income statement and many more. Therefore, management of all
these data is advantageous for success of an enterprise by calculating debts and profit an
enterprise. As a result, forecasting of finance department helps in recommending other sections
towards corrective path. Thus, this will help an association in attaining their set targets by
knowing about company profit and loss level.
Production process- IT system helps manufacturing members while performing their
business operations in order to control extra cost that might incurred during conversion of raw
materials into finished products. For example; Key performance indicators, lean production, six-
sigma, just in time are some advanced tools that are used by production process for effective
running of their operations in order to attain set targets (Seddon, Calvert and Yang, 2010).
Human resource- Main objective of HR team is to hire or select best eligible candidates
by searching through internal and external environment. Therefore, this department have an
opportunity to place advertisement on various modern sources such as; social media, Facebook,
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Instagram, blogs, twitter, e-mails and many ore for identifying best candidate for an
organization. Therefore, by using this strategy HR team can easily select suitable employee for
vacant position of an enterprise.
By analysing all the above roles of IT system in various department of an JS
Supermarket, it has been assessed that modern technologies are really contributing majorly in the
goal attainment of an association by performing all the business operations in best manner.
TASK 2
Different ways IT system store and process data for knowledge management, customer
relationship, data and communication
IT system is really supportive in storing various indispensable data with the use of
various modern methods and technologies. Computer data storage is also known as memory
which consists of computer components and recording media which are used for retaining digital
data. Mainly, it’s a core function and fundamental role of computers.
Control processing unit of a computer is a tool which manipulates data by performing
computations. However, almost all the computers are having storage hierarchy which gives fast
but somehow expensive or smallest storage options close to CPU. Basically, fast volatile
technology which majorly lost data at the time of power off is referred as memory whereas
slower persistent technology is known as storage. On the other hand, in Von Neumann
architecture CPU covers of two main parts; first is a control unit and another is arithmetic logic
unit. Thus, former regulates the flow of information between CPU and memory whereas latter
performs arithmetic and logical operations on stored data. In previous years, data storage means
maintaining copies, documents, photos and applications (Elbashir, Collier and Sutton, 2011). But
now number of things get changed with advancement in technology which is discussed as
follows-
 Optical disk- It is a most common way of storing information which means for video or
data file in recent past. Blu-ray discs, DVDs and CDs are majorly available at
marketplace. However, CDs can hold almost 700mbs data whereas DVDs stores almost
4.7GM of data. But, Blu-ray disk is having largest capacity as compared to other that is
nearly 25 GB.
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 External hard drives- These storage data are consider as cheapest at marketplace. In
fact, an individual can get up to one terabyte of storage capabilities at very reasonable
rates. Moreover, these are mechanical devices which spin at very high speeds and designs
with the use of very complex circuit designs (Wang and et. al., 2012).
 Cloud storage- This is mainly for the method of storing data safely. It includes such as;
icloud, Google drive, Microsoft One drive and drop box. It’s a very secure means of
storing data online and also permits an individual to access it from any location across the
world.
On the other hand, Data processing system is a cluster of machines, people and
procedures which for a set of inputs produced a defined set of outputs. However, inputs and
outputs are interpreted as information, facts and figures. Some of the major activity of data
process system covers combination of;
 Conversion means converting information into another language.
 Validation- ensures that data which is supplied needs to be fully clean, correct and
useful.
 Sorting; means arrangement of items in proper sequence or in a various sets.
 Summarization; means reduction of detail data to its main points.
 Aggregation; is a combination of multiple pieces of data.
Apart from this, some of the other methods of IT system which is used by company for
performing their various business functions are discussed as follows-
 Customer relationship management; is done through social media sites or from official
websites of JS Supermarket. Along with this, this will also maintained with the help of e-
mail services and advanced mobile applications.
 Communication is done through e-mails, social sites such as; Facebook, comments on
advertisement, passes the message through fax system, online conference etc.
TASK 3
Usage of IT systems for supporting value-added change for improving business operations
Value added system which is used by JS supermarket for identifying where and how IT
system can easily add value to the firm. Basically, this system is composed of various operations
and processes as well as technological change which influences operational process development
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of an organization. However, value added concepts aids in recommending an organization to
examine each component of process in terms of value which is going too added in final product.
If an activity, or business operation, linkage added no value then it will eliminates which
resultant into enhancement of productivity. Value to the product is added by following a suitable
process in which raw materials is going to converted into semi-finished or finished products
which then assembled into marketable goods that will packed and shipped to final users or
distributed at centre (Boehm and Thomas, 2013).
Mainly, selection of appropriate production process is fully based on value added
analysis in order to do proper functioning of an enterprise. Basically, this assessment focussed on
working of an enterprise and its combination process which clearly added to worth of goods in
terms of meeting expectation of customer needs. Therefore, final users can reluctantly pay extra
than perceived value of products or services instead of considering how much cost it was
covered while production. This is known as non-cost principle which emphasises on product
value in place of its expense and determine margin which is earned through goods or service.
Consequently, one of the major ways for describing result of value added production is
maximization of individual contributions whomsoever are engaged in this system, as contrasted
to decrease of direct labour content of goods. This effort includes various things-
 Reduce activities and associated expense which added no value.
 Minimize lead times in transport, intrinsic flows, supplier response, interactions and
customer required schedules.
 Enhancement of product manufacturability by performing with production engineering
and tool.
Hence, advancement in hardware and software technology aids in maximizing
manufacturing flexibility, transportation speed and informational availability as well as
maximization of management complexity. Apart from this, some of the major development in
production is; cellular manufacturing and automated material handling aids in increasing
throughout rates as well as responsiveness of plants. Additionally, development in various other
technologies includes; Electronic data interchange, global position system provides JS
Supermarket with access to operational real time data. Moreover, Enterprise Resource planning
aids an organization in managing their supply chain activities in more efficient manner.
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ERP (Enterprise resource planning)- It’s a mainly denoted as category of business
management software which is used by an organization for accumulating, storing, managing and
interpreting data. In fact, this will help JS Supermarket by providing integrating and on-going
updated view of core association processes with the use of common databases which is
maintained by database management system. However, this system help in tracking resources of
an organization such as; cash, raw materials, production capacity and position of company
commitments like orders, buying orders and payroll. Main objective of this application is share
the data across several departments (manufacturing, purchasing, sales, accounting and so on). It
means, ERP supports JS supermarket in proper flow of data and information amongst various
business functions (Improving Business Performance Management, 2018).
TASK 4
IT system solutions for organizational scenarios which cover range of business issues
JS Supermarket faces large number of issues such as; failed in storing their data,
inaccuracy in manual calculation of liabilities and assets, consume time during transaction
process, misinterpretation and many more. In fact, competitions also maximized due to which
various issues are rising at workplace. Therefore, Prosyn have suggested various IT solutions to
the company for resolving their various scenarios that covers several organizational activities.
Some of the issues which is solved through IT solutions are discussed as follows-
Marketing- Promotional activities are done through social media without moving here
and there across the marketplace. Basically, members of marketing face a problem while
contacting with desired employees during promotional period but now with the use of social
media and professional websites of an organization informing consumers is becoming too much
easy. For example; through social network JS Supermarket can easily maintained their positive
relationship with long distance consumers which aids in resolving problems of minimum sales
volume (Lee, Hsieh and Hsu, 2011).
Financial calculation- Manual handling of transaction and funds creates major
probabilities of mistakes that may influence the profit level of an enterprise. But now with the
use of IT system and various software’s company can easily manage their all the debts, liabilities
and profit in corrective manner.
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CONCLUSION
From the above report, it has been summarized that IT systems are playing very crucial
role in facilitating small and large enterprise in various manner. Along with this, helps in
attainment of set goals and targets in a defined time frame by fulfilling the needs and demands of
desired users. Mainly, number of systems is identified that are beneficial for company success
and development such as; cloud technology, ERP system and many more. Hence, it has been
understood that information technology is one of the most useful tool for resolving various
business problems.
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REFERENCES
Books and Journals
Zott, C., Amit, R. and Massa, L., 2011. The business model: recent developments and future
research. Journal of management. 37(4). pp.1019-1042.
Yeoh, W. and Koronios, A., 2010. Critical success factors for business intelligence
systems. Journal of computer information systems. 50(3) . pp.23-32.
Willcocks, L., 2013. Information management: the evaluation of information systems
investments. Springer.
Laudon, K.C. and Laudon, J.P., 2015. Management information systems (Vol. 8). Prentice Hall.
Popovič, A and et. al., 2012. Towards business intelligence systems success: Effects of maturity
and culture on analytical decision making. Decision Support Systems. 54(1). pp.729-739.
Seddon, P.B., Calvert, C. and Yang, S., 2010. A multi-project model of key factors affecting
organizational benefits from enterprise systems. MIS quarterly. 34(2). pp.305-328.
Elbashir, M.Z., Collier, P.A. and Sutton, S.G., 2011. The role of organizational absorptive
capacity in strategic use of business intelligence to support integrated management
control systems. The Accounting Review. 86(1). pp.155-184.
Wang, N and et. al., 2012. Resource structuring or capability building? An empirical study of the
business value of information technology. Journal of Management Information
Systems. 29(2). pp.325-367.
Boehm, M. and Thomas, O., 2013. Looking beyond the rim of one's teacup: a multidisciplinary
literature review of Product-Service Systems in Information Systems, Business
Management, and Engineering & Design. Journal of Cleaner Production. 51. pp.245-
260.
Lee, Y.H., Hsieh, Y.C. and Hsu, C.N., 2011. Adding innovation diffusion theory to the
technology acceptance model: Supporting employees' intentions to use e-learning
systems. Journal of Educational Technology & Society. 14(4).
Online
Improving Business Performance Management. 2018. [Online]. Available
throough<https://www.heflo.com/blog/business-management/improving-business-
performance/>
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