Impact of IT System in Business Organization

This report explores the impact of information technology systems in business organizations, with a focus on Tesco PLC. It discusses the benefits of IT systems, their use in different departments, and the transformation of manual operations into digital form. The report also examines technologies used in data storing and processing, information systems for consumer relationship management, and IT solutions to improve operation, performance, and sustainability. Recommendations for common IT problems in business organizations are provided as well.

Business information technology systems

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Impact of IT system in Business organization.............................................................................1
Use of IT in Function of Tesco PLC............................................................................................2
Manual operation that are Need to Be Transformed....................................................................3
Technologies That are Used in Data Storing and Processing......................................................3
Information System for Consumer Relationship Management...................................................4
Data management System............................................................................................................4
Communication Management......................................................................................................5
Information Technology in Order to Improve Operation, Performance and Sustainability for
Tesco............................................................................................................................................5
Recommendation for Common IT Problems in Business Organization......................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Information technology is known as the implementation of computers to collect, store,
process, transmit and manipulate data or information for an organization in order to improve
their business performance in the market place. This report is providing the brief of digitalization
for Tesco Public Limited Company. Tesco is one of the largest grocery ad retail store in United
Kingdom. It was established in year 1919 by Jack Cohan in Hackney, London United Kingdom.
Tesco PLC is operating with 6800 stores around globe. This study will be explaining the impact
of Information technology system for organization. The contribution of IT is also studied for the
success of business and solving problem for organization. Use of Information Technology will
be studied for different department of organization. Information of different manual operations
which are transformed in digital form will be explained in report (Dutta, Geiger and Lanvin,
2015). Different process that are used by the information technology to store and process
information and data in data base of the organization. Customer management system will be
explained for Tesco PLC. Different data management techniques will be evaluated in the report.
Various information technology system will be analysed in the report that can be used in the
organization to improve their business operation, performance and operation in the market place.
MAIN BODY
Impact of IT system in Business organization
There are different benefits of information technology that are used in the business
organization, these IT systems are used in the organization in order to meet business objectives
of organization with high conversion rate. There are many advantages of information technology
system in the operations of Tesco PLC. It can help the organization in different ways.
This the main feature of the IT system in organization. These information technology
systems can be used in the operations and functions of organization to collect different data and
information from the market place to get various kind of information that can be utilized by them
in order to improve their product and services (Schwalbe, 2015). For example these information
systems can be used in the organization to get consumer data to evaluate the current market
trends. This will provide better opportunity and capabilities to the organization to develop new
product, service or any innovation in their business policies and operations to achieve higher
goals that are associated with their market performance. There are some other benefits of
information technology system for company, some of these benefits are- improved decision
1

making capability because organization will have better data of market place which will allow
them to implement effective business practice on the work place, it also can be used to simplify
the operation and functions of Tesco PLC. Information technology also allow the organization to
store high range of data and information in their data base which is easier than manual handling
of data and information, there are some information system which are normally used in the
business organization to manage and monitor the actions of employees within organization that
can provide better control to company. This is how Ti system can impact organization positively.
Use of IT in Function of Tesco PLC
There are different departments in Tesco retail store. It is important for the organization
to manage the operational efficiency of all department in order to gain higher functionality and
overall performance. There are different technologies are suitable for Tesco PLC which are-
Inventory Management
Inventory management software can be used in the ware house of Tesco to manage their
inventory efficiently to meet demand of consumer with proper supply.
Accounts
This also one of the important department of a business organization. There are different
accounting software can be used by company to help the people of accounts department to solve
complex account related problem with high effectiveness. This is important for their financial
capabilities.
CRM
Consumer relationship management system is also one of the most effective tool for
marketing department of Tesco PLC. The main objective of the marketing department is to
manage effective relation with the consumer of company in order to make them loyal to
organization (Marchewka, 2016). This System can help them to keep track on consumer data to
full fill their demands effectively.
Business Intelligence system
For a business organization it is important to comply with all the internal and external
factor of organization in order to stay aware of future needs, issues and problems to make
effective contingency plan to avoid any other issues further.
2

Manual operation that are Need to Be Transformed
There are different information technology systems are used in the business organization
to reduce the manual work in order to achieve effective and productive operations.
Sales
There are different employees are hired by Tesco PLC to guide the customer within the
store in order to provide them higher satisfaction (Senft, Gallegos and Davis, 2016). To improve
their buying experience Tesco can use digital technology that is capable to guide them
effectively within the premises to reduce the complexity of store structure. This is how IT can be
used in Tesco store in Sales operation.
Inventory Management
The inventory management system or software can be used in the organization to reduce
the complexity of the inventory management (Andrade and Doolin, 2016). This can help people
of organization to get effective and real time data of inventory to implement the Just in time
Approach in store.
Monitoring
This is important for all business organization to manage and monitor the operations of
the business organization to reduce the failure and other issues that can directly affect the profit
of company. For example Biometric tracking, CCTv cameras and RFID can be implemented in
organization for high monitoring and control.
This is how manual systems that are used in retail store can be transformed in digital
form to generate high value from company actions and operations.
Technologies That are Used in Data Storing and Processing
There are different data storing and processing technologies are used in the business
organization to improve the knowledge management process (Zurawski, 2018). There many
storage devices can be used in the IT system of Tesco PLC to store the data and complex
information that is important for the organization in order to perform their business in the target
market.
Data Storing Devices
The data collected by organization form different sources can be stored in organization
through different storage devices which are-
On Premises Storage
3

There are different physical devices can be used by business organization to store
different type of data and information. Mainly DVD, CD,. Hard drive and removable hard drive.
This all devices are efficient to store data which can be used in future.
Private Cloud
Cloud storage are most trending technology that is used by most of business organization
in order to store large size data in virtual storage. This can be used by the business organization
to keep the back up of organization data and store currently collected data. This is how cloud
storage technology can be used in order to store large size organizational data.
Information System for Consumer Relationship Management
There are different information technology system can be used in the business
organization in order to manage relationship with people who are connected to Tesco PLC. CRM
is a system that is considered all over the corporate world in order to manage effective
relationship with consumer and other people who are connected to the organization.
CRM
Consumer relationship management is a technical approach which is used by the
organization to manage the interaction of organization with people who are connected to them
with their personal interests. This system collects the data and information of communication
between the organization and stakeholder (Avgerou and Walsham, 2017). This data is later
compiled in order to improve the knowledge of the organization that is related to the consumer
and other important people who are connected to organization. This system collect data from
communication channel like e-Mails, company website and other sources like marketing and
sales data. By this process organization can improvise their business activities in order to
generate higher value from their operations.
Data management System
This is important for the organization like Tesco PLC to manage different type of data
that is collected from various sources. For the data management Tesco PLC can use different
information system in their operations. TPS, DSS, KMS, MIS and AI are some information
systems that are effective to store and process data in Transaction processing system can be used
by company to to manage the all the transaction data of Tesco on daily basis. This can help them
to manage the large size data to avoid any kind of complexity. Decision Support System and
Knowledge Management System can be used by Tesco to manage other type of information with
4

in their data management system. All above this, Management of information system can be used
by the organization to manage other information system of organization in order to provide better
opportunity to Tesco to control and monitor the functions of the organization.
Communication Management
Communication management planning is a systematic approach that is used by the
organization like Tesco PLC to manage effective communication with in the organization.
Effective communication is required in company processes for better transaction of data and
information between people and various department in order to reduce the chances of failure in
company operations and full fill company objective with effective conversion rate. It helps the
employees of organization to understand their work and task effectively. This is how
communication management can help organization to gain higher profitability (Hills, 2018). For
effective communication within organization there are different technologies are used.
Communication techniques used in Tesco are- Verbal communication where people
communicate face to face for effective transfer of data and information, Written communication
can be used by Tesco PLC to deliver statistical and official information to employees, telephonic
communication can be used for fast and effective communication between the people of
organization. E communication techniques like E- mail communication and social media
communication can be used in organization for official communication between people. This is
how various technologies can be used in organization for effective communication management.
Information Technology in Order to Improve Operation, Performance and Sustainability for
Tesco
There are various technologies are available in organization to which can be used to
improve the operational capability of organization.
Automation
Automation is one of the most trending technology in retail sector. For the small size
organization it is easy to manage the operation in organization but for the large size retail sector
companies like Tesco PLC have different complex operation that need high precision and
accuracy (Saunders and Brynjolfsson, 2016). This is not possible for the employees to perform
heavy bulk operation with high accuracy and execution speed. In this case Automation can help
them to handle heavy operation without any risk or hazard. This is how automation can be used
in inventory for transportation of heavy goods.
5

Artificial Intelligence
Artificial Intelligence is one of the most advance technology that can be used in the retail
sector organization in order to handle different situations. The artificial technology is based on
the concept of self learning method. This is high versatile technology that is suitable for all
departments of organization. It is self capable of data collection, storing and processing. The
concept of this technology is based on the neural technology where processor of AI system
analysis the data that is collected from different source in order to find various patterns and
connections between collected data. This queries are analysed by the AI system and on based of
self learning process it provides the best solution for particular condition. It can help Tesco PLC
to deal with different operational and technical problems. This is how Technology like AI can
improve the performance of organization by providing better solution for each problem in
different functions of organization.
Automation and Artificial Intelligence are two most effective technology for the retail
sector organization that can be implemented in organization to reduce the complexity of their
operations.
Recommendation for Common IT Problems in Business Organization
On the daily basis their different technical and operational issues are faced by the
business organization. This is difficult for companies like Tesco PLC to manage these small
issues on the small level. This issues can reduce their operational efficiency and market place
performance. This is important for them to use various Information technology to solve issues
with these faults. To solve technical and operational issues they can implement different
solutions in order to develop high productivity in the internal and national market. There are
different processes can be used in order to reduce operational faults in company (Passey and
Samways, B, 2016). Tracking and monitoring is a process that is effective way to manage the
operational efficiency of Tesco Store. Monitoring and tracking can help them to identify the
problems in initial level to avoid major failure later. Different monitoring and measuring devices
can be used in order to track the technical failures on initial level. This is how Tesco PLC can
avoid daily basis minor operational issues.
CONCLUSION
This report id concluding the importance of the information technology for Tesco PLC.
The impact of technology and its contribution in the performance of organization has been
6

evaluated in the report to know it benefits for organization. The innovative technologies that can
be used to improve the operational capability of organization has been explained in report.
Importance of communication management and data management has been evaluated in report.
Various suggestions are provided for Tesco PLC to improve their data, information, knowledge
and people management.
7

REFERENCES
Books and Journals
Andrade, A.D. and Doolin, B., 2016. Information and communication technology and the social
inclusion of refugees. Mis Quarterly. 40(2). pp.405-416.
Avgerou, C. and Walsham, G. eds., 2017. Information technology in context: Studies from the
perspective of developing countries: Studies from the perspective of developing
countries. Routledge.
Dutta, S., Geiger, T. and Lanvin, B., 2015. The global information technology report 2015.
In World Economic Forum(Vol. 1, No. 1, pp. P80-85).
Hills, J., 2018. Information technology and industrial policy. Routledge.
Marchewka, J.T., 2016. Information technology project management: Providing measurable
organizational value. John Wiley & Sons.
Passey, D. and Samways, B. eds., 2016. Information Technology: supporting change through
teacher education. Springer.
Saunders, A. and Brynjolfsson, E., 2016. Valuing Information Technology Related Intangible
Assets. Mis Quarterly. 40(1).
Schwalbe, K., 2015. Information technology project management. Cengage Learning.
Senft, S., Gallegos, F. and Davis, A., 2016. Information technology control and audit. Auerbach
publications.
Zurawski, R., 2018. The industrial information technology handbook. CRC press.
8