Utilisation of IT within various functions of an organisation
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This report is based upon an organisation named, British Home Plc, which deals with various sectors such as retailing, property dealing, consultancy and travelling. This report is based upon the importance of information technology in overall growth of a business.
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Table of Contents INTRODUCTION..........................................................................................................................1 LO1..................................................................................................................................................1 P1. Utilisation of IT within various functions of an organisation.........................................1 P2. Contribution of IT system in achieving predetermined objectives..................................2 LO2..................................................................................................................................................4 P3. Different roles of IT in CRM, communication and data management............................4 LO3..................................................................................................................................................6 P4.UseofITsysteminsupportingvalueaddedchangestoimproveperformance, sustainability and business operations...................................................................................6 LO4..................................................................................................................................................8 P5. Recommendations regarding practical IT solutions........................................................8 CONCLUSION................................................................................................................................9 REFERENCES.............................................................................................................................10
INTRODUCTION Information technology is determined as a communication technology and system which is used by an organisation and it also determines the manner by which individuals interacts with such technologies for supporting the processes of businesses. This report is based upon an organisation named, British Home Plc, which deals with various sectors such as retailing, property dealing, consultancy and travelling. This organisation was not able to meet technical factors and hence it is sold to an American organisation(Abramowicz, 2015). This report is based upon the importance of information technology in overall growth of a business. This report covers the use of information technology with all the other departments and its contribution towards achieving business objectives. It also covers different manners in which IT system data used for customers relationship management, communication and data management. It also covers the way in which IT system contributes to bring changes in improving performance, sustainability and business operations. At the end, it certain recommendations are given of practical solutions of IT which covers common business problems at workplace. LO1 P1. Utilisation of IT within various functions of an organisation Information system helps the business for the development in large amount of systems which are considered as value add one system in an organisation. Also, such system helps in eliminating repetitive tasks which enhance the accuracy of business activities and helps the businessinachievingitspredeterminedobjectivesandgoals.Informationtechnologyis considered as one of the most important component of an organisational function which aids the business and allow its workers for concentrating on more high functions level. British Home Plc is lacking in innovation technology and measures due to which it is not able to meet overall objectives of a business. There are various other departmental functions, within which IT performs its functions and it is determined as follows- HR department-Information system plays a major role in the human resource functions of an organisation. The HR manager uses the information technology for enhancing the performance of workers and also assess the feedback of employees which can be utilised for organisationaloverallbenefits(TheRoleofInformationSystemsinHumanResource Management,2019). There are different software and hardware applications which can be 1
utilised for examining the worker's performance and in establishing the standard of performance. In British Home Plc, ITcan help the HR managers by providing them information fortaking major HR decisions and it also helps in keeping tracking of all the workers and certain specific information about them. This is usually done in database or in a series that is of inter-related databases. Finance department-Information system plays a vital role in the financial services for various different reasons but the most importantamong them is in electronic networks that will help in exchanging information. This is considered as an important support for the financial staff and due to which finance managers are required to possess IT skills and have to focus upon utilisation of IT for the effective financial management (The Role of Information Technology in Financial Services,2019). It helps to store, share and publish financial data even more easier and also reduce the cost of financial management. In British Home Plc, this helps the finance managers in preparing the financial reports and the processed data without any kind of complexities and in conducting real time analysation. Marketing department-Information technology is considered as a newest trend in the field of marketing which has changes the whole new concept of advertisement and marketing in achieving the overall objectives of a business. This function has improved marketing by the introduction of internet and digital marketing which helps in identifying target audience, identifying their overall needs and building the marketing campaign for persuading customers to purchase. The basic drawback of British Home Plc is that it is not able to meet all the objectives of customers and the reason behind it is lack of promotional means. This can be solved by bringing information technology and promotion of travelling and retailing sector can be done through mobile and internet marketing. P2. Contribution of IT system in achieving predetermined objectives Information technology system helps in fostering the innovation in an organisation which will result in smart applications, improvementin data storage, fast processing and wide distribution of information(Abramowicz, W. ed., 2015). This helps in making the business to run in a more efficient manner and it also results in improving the overall quality of products ad services of a business which will result in boosting its productivity. In British Home Plc, Information technology van contribute to this enterprise for the purpose of achievement of overall predetermined objectives which can be seen in following points- 2
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Effectivecommunicationwithcustomers-Thebasicrolewhichisplayedby Information technology is to maintain effective communication with customers. In today's world, where the world is busy, it becomes necessary for an organisation to form interaction with customers in quickly basis. Certain websites allows the consumers for finding answers to their certain queries after hours (WHY IS TECHNOLOGY IMPORTANT IN BUSINESS,2015). Option of fast shipment will allow the businesses in moving its products over a large geographic area. When customers utilises information technology for interacting with a business, than the business can get certain benefits as better communication can create a strong image in public. In hospitality sector of British Home Plc, customers can get to know about various travelling and tourism packages when its official website is created. Efficient Operations-In British Home Plc, technology can help this for understanding itsneedsandpreservationsofcashflowandresourceslikephysicalandtimespace. Technologies of warehouse inventories let the owners of a business in understanding the best method in managing the storage costs of holding a product. With adequate technology in place, executives of this organisation can save its money and time by holding up the meetings over internet in place of corporate headquarters. Security-Most of the organisations in today's world are subject to vandalism and threats of security. Technology in British Home Plc can be utilised for protecting financial data, proprietaryinformationandexecutivedecisionswhichresultsinenhancingcompetitive advantages. This also helps in keeping the ideas of a business secure from its competitors and by passwords in computers, an organisation can make sure that none its forthcoming project can be copied by competition. Capacity to conduct research-An organisation which has the capacity of technology and innovation helps in researchingnew opportunities and business ideas which will help it to stay ahead of its competitors(Abu Naser and Al Shobaki, 2016). Internet also helps the business in virtually travelling towards the new markets without any kind of cost of effective jet or any kind of risk that can create a factory in abroad. Basically, information technology helps an organisation in indulging in research and converting the business idea into a product or service. It makes the overall activities of a business to run fast which helps the business in achieving business goals. 3
Information technology plays a very important role in making business to achieve its overall predetermined business goals and objectives. It helps HR department in preparing databases,andaidinstoringvoluminousinformationaboutworkers.Thiswillhelpin differentiating vacant and involved positions which results in if an individual fits for a position or not. IT helps financial departmentin making an easy exchange of information and data that is between certain functions(Anaya, Dulaimi and Abdallah, 2015). It helps the marketing department by developing various latest mode of advertisement and marketing such as social media, blogging, websites, and so on. All these departments will work together and utilise the benefits of IT towards achieving overall objectives of British Home Plc. LO2 P3. Different roles of IT in CRM, communication and data management IT is an important component of an organisation which helps in storing and processing informationanddataforcustomerrelationshipmanagement,communicationanddata management. It helps in improving the overall efficiency and effectiveness. This is elaborated in detail in following points- CRM-Customer relationship management is determined as an approach which can be used for managing interaction of an organisation with potential and existing customers. It utilises data analysation regrading history of customers with an enterprise for improving the relationship of business with customers. It lays down its focus upon customer retention which will help in driving growth in sales. There are various types of CRM which are- Operational CRM-It is determined as a business procedure which includes market automation, service and sales automation. Information system helps this kind of CRM to develop leads and convert them into certain contacts, than capture all the needed details and in providing services throughout the life cycle of customers. Analytical CRM-It helps the top management, sales, support personnel and marketing to determine a more better way of serving customers(Bach, Čeljo and Zoroja, 2016). By using IT, analytical CRM can analyse data of customers who are coming from different touch points for getting better insights regarding existing status of an enterprise. Collaborative CRM-This CRM approach enables an enterprise in sharing information about customers among the various units of business such as sales team, technical, support and 4
marketing team. For instance, with the help of information system, a feedback from support team can be used by marketing team in approaching the targeted audience with particular services or products. There are certain advantages and disadvantages of CRM- AdvantagesDisadvantages It helps the organisation in consolidating the data of customers and provides basis for its deepinsights(Benckendorff,Xiangand Sheldon, 2019). It can result in dis improving the experience of customersbecause of staff over-dependence upon system. It also results in speeding up the procedure of sales conversion and increases the productivity of staff by lowering down the time cost. There can be issue take place regarding data protectionandsecuritywiththecentralised data. Data Management-Data management is defined as an administrative procedure which includes acquiring, storing, processing, validating and protecting the required data for ensuring reliability, timelines, and accessibility of data for its customers. In this regard, information system plays an important role in managing data by distributing accurately and timely based data across the organisation with an assistance of high automated technical solutions. The merits and demerits of data management are defined as follows- AdvantagesDisadvantages Thisapproachcanhelpindevelopingan environment in which the end users may have better access to better and more managed data. It leads to increased cost and expenses of a company as it requires sophisticated software and hardware skilled personnel. Datamanagementhelpsinprovidinga frameworkforbetterenforcingofsecurity policiesanddataprivacy.Thishelpsin improving the security of data. It can lead to complexities among management as it interface with various technologies which hasasignificantimpactuponcultureand resources of a company(Cassidy, 2016). Communication management-It is a systematic planning, monitoring, revising, implementing ofallthecommunicationchannelswithinabusinessenterpriseandinbetweenvarious 5
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departments of an organisation. Information system plays an important role in forming a strong communication between an organisation and customers which helps in improving its relations with customers. AdvantagesDisadvantages The main advantage of this system is that is that it saves cost of a company in the long run andalsodevelopseffectivecommunication among employees(Chang, 2016). Sometimes,thissystemisnotsafeasthe information is centralised under one database and is exposed towards people with wrong intention within an organisation. Byformulatingeffectivecommunication within an organisation, itwill also leadto increased productivity of overall organisation. The information shared can also be attached by virus or hacker which can make the data lost in one minute. IT is significant in collecting and storing data and information which results in managing the overall functioning of organisation in a desired manner. In CRM, information technology can help in analysing customer's data who comes from various touch points to get better insights in regards to current organisational status. It helps the communication department by developing innovative communication measures which help in improving the flow of communication within an organisation. The role of IT is wide in data management system as it provides data to organisation on timely basis which results in taking the decisions on prompt basis. LO3 P4. Use of IT system in supporting value added changes to improve performance, sustainability and business operations There are various types of information system which helps the organisation in supporting value added changes in order to bring improvement in company's performance, business operations and sustainability(Dwivedi, and et. al, 2015). These systems are elaborated as follows- Decision Support System-This system is utilised by senior management in taking the non-routinedecisions.Itusesinputfromtransactionprocesssystemandmanagement information system and other external systems. It helps the managers in evaluating certain 6
alternative ways to achieve the organisational goals. It also helps senior executive in asking if questions are asked or adjusted values for the total sales, goods costs, and so on. For example, business's net profit can be calculated by utilising formula of Total sales less which is (expenses+ cost of goods). It will help the organisation in taking decision on the basis of data and information available which will improve the business operations and sustainability. There are certain merits and demerits of this system such as- AdvantagesDisadvantages The main advantage of this system is that it savestimebyincreasingemployee's productivity and provide it timely information. A computerised system of decision making can sometimes result in overload of information. It alsoanalyseallaspectsofanissueora problem and leave organisation in dilemma regarding what have to be considered(Laudon and Laudon, 2015). It also improve the effectiveness of overall effectiveness of decision making and helps an enterpriseintakingbetterorganisational decisions. It pays attention upon computerised form of decision making which is not required in each and every situation. Management Information System-MIS is utilised by managers of an organisation in monitoring current status of performance of an enterprise. The output results from transaction process system can be utilisedas an input to information system of a management. It analyses inputs with algorithms which determines aggregate, summarisation and comparison of results for producing reports that are utilised by tactical managers in monitoring, controlling and predicting the performance in future(Laudon and Traver, 2016). For example, data from sale system point can be utilised for analysing products trends which are performing well and those who are not performing well. This information will aid to make future orders of inventory. AdvantagesDisadvantages This system helps an enterprise in having an overall brief look towards the company. An organisationcanutilisethesestatisticsin MISisexpensiveforsettingupand maintenance. Company owners and managers are required to learn certain skills for using 7
competinginmarketandownerscantake quick actions on this basis. MIS Itwillalsoimprovetheoverallqualityof productsasitallowsinrecordingpast responses and paste experience of customers whichwillhelpthecompanyintaking decisions. Another disadvantage of this system is that it works upon quantitative data and it ignores quality data which questions upon its overall accuracy(Long, 2018). LO4 P5. Recommendations regarding practical IT solutions Information technology helps an organisation in managing the activities of a business in more efficient and effective manner. It helps in inquiring regarding a specific problem, identify its complexity and develop new services and products. In short, IT helps in improving the overall output and productivity of an organisation(Obeidat, North and Rattanak, 2015). An organisation can face face certain problems in its workplace regarding complexitiesintraining and development, marketing and advertisement and product failure and so on. There are various IT solutions which are available in market which will help the enterprise in solving such problems. Recommendations regarding this are elaborated as follows- The basic problem which can be faced by an organisation is product failure. Product can befailedduetovariousreasonssuchasitsinefficiencyinmeetingcustomer's expectations,technicalerrors,andsoon.Anenterprisecanuselatestinnovative techniques and solutions which will help the organisation in developing a product with innovativefeatures.Thiswillalsohelptheenterpriseinremainingaheadofits competitors by launching product with innovative solutions. Administration of organisations are often a costly but important function of a business but at the same time, it is difficult to scale it efficiently. In this regards, technology has large impact. A business can use automated innovative solutions which makes sure that there are less errors and in frequent manner(Peltier, 2016). With the help of technology, these errors can be caught in advance and it is easy to solve and unravel them. 8
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The another problem which is faced by an organisation is the decision regarding advertising and marketing and in identifying which mode is more accurate in promoting company's products and services. Digital marketing helps the enterprise in promoting its productsandservicesondigitalplatformwhichwillhelpitinachievingits predetermined goals and objectives. Now-a-days, company's mostly rely upon online promotions as it is quick and it covers large number of customers in target market(Simon and Schmidt, 2015). By promoting goods online will help in solving the problem of targeting and positioning. Anotherbasicproblemwhichcanbefacedbyanorganisationispoorflowof communicationwhichwillhavenegativeimpactuponoverallfunctioningofan organisation. Communication is an important component of a business as it helps the business in forming better relations within its department and with customers also. IT helps in forming a strong communication among all the departments of an organisation through mails, advertisement, and so on. This makes it easy to transfer information from one person to another with just one click. Information technology helps in solving the overall problems of an organisation which will make the enterprise in running its business in an effective and appropriate manner. It will help an enterprise in developing a product which is innovative and advance and will satisfy the overall customer's expectations. IT will also help in formulating effective communication within all the departments(Smith, and Wong, 2016). By automated innovative solutions, errors can be minimised and can be recorded. It will also help in promoting its products and service by digital marketing which will result in covering large number of customers. CONCLUSION From the above report, it has been concluded that information technology plays an vital role in storing, transmitting, manipulating and retrievinginformation or data which will make the organisation more effective. This report concludes thatinformation system plays various roles in all the other functions of an organisation. It helps finance department in preparing annual financial reports without any complexities and conducting analysation. Further, it concludes that IT is an important aspect in achieving overall goals of a business by formulating effective communication with customers, maintaining efficient operations and providing security to personal data of employees and customers. In addition to this, it concludes that IT department 9
helps CRM in analysing data of those consumers who come from various touch points to get better insights in regards to current enterprise status. It also concludes that there are various IT systems such as management information system which helps the business in taking vital decisions as it allows to record past experiences and responses of customers. REFERENCES Books and Journals Abbasi, A., Sarker, S. and Chiang, R.H., 2016. Big data research in information systems: Toward an inclusiveresearchagenda.Journal of theAssociationforInformation Systems.17(2). p.I. Abramowicz, W. ed., 2015.Business Information Systems: 18th International Conference, BIS 2015, Poznań, Poland, June 24-26, 2015, Proceedings(Vol. 208). Springer. Abramowicz, W. ed., 2015.Business Information Systems: 18th International Conference, BIS 2015, Poznań, Poland, June 24-26, 2015, Proceedings(Vol. 208). Springer.business intelligencesystems.JournaloftheAssociationforInformationScienceand Technology.67(1). pp.134-147. Abu Naser, S. S. and Al Shobaki, M. J., 2016. Enhancing the use of Decision Support Systems for Re-engineeringof Operationsand Business-AppliedStudy on thePalestinian Universities.Available at SSRN 2814456. Anaya, L., Dulaimi, M. and Abdallah, S., 2015. An investigation into the role of enterprise information systems in enabling business innovation.Business Process Management Journal.21(4). pp.771-790. Bach, M. P., Čeljo, A. and Zoroja, J., 2016. Technology acceptance model for business intelligence systems: Preliminary research.Procedia Computer Science.100.pp.995- 1001. Benckendorff, P. J., Xiang, Z. and Sheldon, P. J., 2019.Tourism information technology. Cabi. Cassidy, A., 2016.A practical guide to information systems strategic planning. Auerbach Publications. Chang,J.F.,2016.Businessprocessmanagementsystems:strategyandimplementation. Auerbach Publications. Dwivedi, Y. K. and et. al, 2015. Research on information systems failures and successes: Status update and future directions.Information Systems Frontiers.17(1). pp.143-157. 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.] Long, R. J., 2018.New office information technology: Human and managerial implications. Routledge. Obeidat,M.,North,M.,Richardson,R.andRattanak,V.,2015.Businessintelligence technology, applications, and trends. Peltier, T. R., 2016.Information Security Policies, Procedures, and Standards: guidelines for effective information security management. Auerbach Publications. Simon, D. and Schmidt, C., 2015.Business Architecture Management. Springer International Publishing:.|| Imprint: Springer,. 10
Smith, L. C. and Wong, M. A. eds., 2016.Reference and Information Services: An Introduction: An Introduction. ABC-CLIO. Online: The Role of Information Systems in Human Resource Management.2019. [Online]. Available through: <https://www.intechopen.com/books/management-of-information-systems/the-role-of- information-systems-in-human-resource-management> The Role of Information Technology in Financial Services.2019. [Online]. Availablethrough: <https://www.techfunnel.com/fintech/the-role-of-information-technology-in-financial- services/> WHY IS TECHNOLOGY IMPORTANT IN BUSINESS.2015. [Online]. Availablethrough: <https://www.oksbdc.org/why-is-technology-important-in-business/> 11