Impact of IT System in Business Operations

This report discusses the impact of IT system in solving business problems and improving operations. It explores the use of IT system in different functions of the organization and how it can support value added change and sustainability. It also provides practical IT solutions for business problems. The report contextualizes Sainsbury’s, a retail industry, and suggests improvements in manual processes.

Business IT System

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
The impact of IT System and its Contribution in Solving Business Problem.............................3
Use of IT system within different functions of the organisation.................................................4
Introduction to Organisation........................................................................................................4
Manual Processes that can be transformed..................................................................................5
Different ways IT system store and process data for Knowledge Management.........................5
Describe that how proposed system help in customer relationship management.......................5
Discuss that how would suggest the technique that would adopt to do data management.........6
Define communication management...........................................................................................7
Evaluate that how IT system can be used to support value added change for improving
business operations, performance and sustainability...................................................................7
Recommendation practical IT solution for business problem identified within Sainsbury’s......8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Information technology is a system through which data is generated, stored and processed
which is in digital form. Information technology is being used in every business industry and at
various parts and levels of the business. Effective use of information technology can allow
business for improved performance in competition and regarding their customers as well. This
report will discuss about information technology and its uses in retail industry and what
improvement can be made in manual process of the industry. Information technology has
significant contribution in carrying out processes of the business within the organisation and
outside as well. This report will contextualise Sainsbury’s.
MAIN BODY
The impact of IT System and its Contribution in Solving Business Problem
IT system has solved several problems in the organisation because of their ability to
generate, store and process data in speed and accurately. Some of the problems which has been
solved by IT system are;
Faster completion of the task
One of the biggest benefit of IT system is that through this task can be and are being
completed faster than it used to be earlier (Eichhorn and Tukel, 2018). This helps in efficiently
generating data and then processing data. This also contributes in faster analysing of the data
which has been stored and generated and this solves problem faster and accurately. For example
Purchase and sales records are now being faster generated and being processed then earlier.
Content Discovery
Content discovery refers to discovering content related to various factor of the business
and this has become possible because of IT and internet. This content discovery helps
Sainsbury’s to make better decision related to its operations and functions. This allows
information and content concerned with environmental factors and competitive forces and
through this Sainsbury’s can prepare it for competition.

Use of IT system within different functions of the organisation
Business organisation encompasses several activities and this is why utility of IT also
span to several functions in the organisation. Different function in Sainsbury’s which use IT are;
Communication- In context with IT communication is a significant use of this. Communication
is also an important function within Sainsbury’s. Communication is required for information
sharing and making coordination within organisation and outside organisation. This is the reason
that IT in communication function is used in Sainsbury’s (Howell, van Beers and Doorn, 2018).
Communication happens in various forms and Email is one of the form of communication and
this is how IT is used for communication.
Data Management- Data management refers to management of data in the organisation. Data
involves data regarding data of organisation such as data of purchasing, selling, financial data,
employee data and customer data and all this are important for Sainsbury’s. This is why data
management is important which means storage and processing of data whenever required. Data
related to customers is used for accurate targeting of customers so that Sainsbury’s can attract
those customers whom company is willing to and capable of serving.
Introduction to Organisation
The organisation considered in this report is Sainsbury’s, second largest supermarket
chains in UK with around 16% share in the supermarket sector. Sainsbury’s was founded in 1869
by John James Sainsbury and is headquartered at London, UK. This was started as a retailer of
fresh food and later expanded it into selling packaged groceries. Area served by Sainsbury’s is
UK and its products are Hypermarket/Superstore, Supermarket, Convenience Shop and forecourt
shop. Sainsbury’s operates at 1415 locations across UK (Aluko and Knight, 2017). As of 2019
net income of Sainsbury’s was £219 million and employees in the organisation are 116,400
across UK. Sainsbury’s has some of the Subsidiaries which are Sainsbury’s Bank, Sainsbury’s
Supermarket Ltd, Sainsbury’s local, Argos, habitat, Nectar.
Being an organisation operating in present business environment Sainsbury’s is effectively using
IT and one of the important functions which Sainsbury’s carry out with IT is for online

commerce and marketing. Sainsbury’s undertake activity in which its products are also available
on online platforms through use of information technology.
Manual Processes that can be transformed
There are several processes which are employed in Sainsbury’s and many of them require
assistance of information technology. Manual process refers to those which are done by labour
rather than machine in nature such processes are physical rather than mental or mechanical.
Manual processes which are employed in Sainsbury’s are organisation of its stores and stocks in
the store. This also requires one more manual process and which is done by customers rather
than employees of the Sainsbury’s (Devarajan, 2018). This is the process which involves looking
out for the product required to customers and checking whether the product is available or not.
This process can be changed by employing information technology. This will require that
Sainsbury’s employs automation and information technology in which customers can find out
whether te products is available in the store or not. This will save time of customers. This can
also be employed in form that this can clearly tell the customers about exactly at which place the
product is placed so that this will also remove the difficulty that customers face while looking for
the product they require.
Different ways IT system store and process data for Knowledge Management
Knowledge management refers to process in which organisation create, share, use and
manage organisational information. This is done in order to make the best use of knowledge
which is available to the organisation. Information technology can be of significant use in
relation with knowledge management. Information which is in form of data can be stored in
information technology system, this requires conversion of information in digital form of data
spo that it can be stored in information technology (Soto-Acosta, Popa and Martinez-Conesa,
2018). Later this information and data can be processed by Sainsbury’s whenever they require it.
Another way in which information is stored and processed is storage of information from various
internet sources and this is used for decision making of the organisation. This is also known as
decision support system, this also involves using past data of the organisation for making
organisational decisions.

Describe that how proposed system help in customer relationship management.
Customer relationship management is the combination of practices, strategies and other
technologies that Sainsbury’s company to manage and analyse customer interaction. In order to
follows the customer lifecycle with goal of improving customer service relationships and
assisting in the customer retention (Popovič, Puklavec and Oliveira, 2019). The Sainsbury’s firm
is basically used CRM system which always support for managing all company’s relationship,
interaction with potential consumers. Furthermore, it also improved the business relationship for
increasing overall organizational productivity as well as profitability in global marketplace.
Sainsbury’s has proposed the IT system which primary aim is to improve enterprise
relationship. it provide the facilities and services to establish connection with existing client,
streamline process and also improve profitability. It help for organization relationship with
individual people which including suppliers, users and other service providers. It is better way to
store large amount of customer data and prospect contact information, sales opportunities,
manage marketing campaign and record service issues. By using IT system, Sainsbury’s can
easily access data and become easier to collaboration for increasing business productivity.
Furthermore, IT systems are directly relevant to the Sainsbury’s business which mainly
include data management and CRM. These are considered as important aspects for improving the
overall business performance. The primary aim of organization is to establish the coordination
with other customers. In order to maintain or control large amount of data in proper manner. For
purpose of data management when easily access information of client, product. The organization
is generally used data management tool such as CRM which indicated the relationship among
existing customers. In Sainsbury’s, service provider will use customer relationship management
platform to communicate with person who will be showing interest in particular item. So that it
become easier for organization to store their demand, preference. It is becoming helpful for
future to store data and identify their demand. The purpose of business is to attract a large
number of consumer through better quality of product as well as service.
Discuss that how would suggest the technique that would adopt to do data management.
Sainsbury’s that has been suggested to adapt the customer database software technique
which can easily manage or store large amount of information. It is to be consider as the best

way for collecting consumer information. In this way, businesses that take data seriously will
store their client information within secure database.
On the other hand, customer relationship management is another tool which provide the
facilities to store information about the customer. it can be designed to make organization where
each and every data should be secured (Towell, 2020). The database software can be used by
Sainsbury’s and provide segmentation customer insight on the basis of data. It is great way to
determine opportunities for business growth and development.
Even through the chances of losing data or information, database software is prepared to
back-up storage of all customer data in proper manner. In this way, it can easily protect or secure
information of both organization as well as customers.
Database software technique is based on the modern technology that always supports for
collecting large amount of data on regular basis. So as require to update in proper manner.
Database software is an appropriate which improving the price, consumer confidence along with
having a data back-up plan.
Define communication management.
Communication management is based on the systematic process which mainly used for
planning, monitoring, implementing and revision of all distributed channel within Sainsbury’s.
Sometimes, it may include the enterprise and dissemination of new communication directive
which automatically established the connection with network.
Other aspects of communication management is that when include developing strategies,
designing internal as well as external communicative directives. The Sainsbury’s use an effective
communication for manager in the task management (Tworek, Tworek and Rauscher, 2019).
There are various function performed within organization such as planning, controlling and
leading. At that time communication helps for manager to do their job and responsibilities. All
essential information must be communicated to manager who in turn must communicate the plan
so that implement them. Through communication management, it will be establishing the
internal coordination between one or more department. As sending and receiving of message
among interrelated individual within particular environment. In order to achieve the significant
goal and objective.

Evaluate that how IT system can be used to support value added change for improving business
operations, performance and sustainability.
Information system have become integral, online and interactive platform that deeply
involved in the business operation, decision-making and performance improvement. IT system
have fundamentally altered the economics of enterprises and greatly increased the possibilities
for organising entire work in proper manner. IT system has represented the function as major
functional area of business operations such as finance, marketing, accounting and human
resource management (Mola, Rossignoli and Giangreco, 2020). It is the best way to contribute to
improve the operational efficiency, employee productivity, morale and other customer service
satisfaction. In order to promote an effective decision making by manager in Sainsbury’s.
Nowadays, organization must be aware and open to influence of information system and
provide benefits of business expansion in global marketplace. Sometimes, it also added more
value for adapting the new IT system. In order to improve the business performance,
sustainability in global marketplace.
Recommendation practical IT solution for business problem identified within Sainsbury’s.
In Sainsbury’s firm, it always bring incredibly common enterprise problems that are
required to resolve with the help of Information technology system. It can be identified the
common issues such as human errors, lack of data management, reduce profitable rate,
mismanagement of information. These common business challenges that will be resolved by
information system that always support for handling complexity within organization (Mola,
Rossignoli and Giangreco, 2020). In another way, it has been recommendation practical IT
solution for removing business problem. In order to increase overall business productivity and
profitability in global marketplace. Furthermore, it has been recommendation an effective IT
solution.
Improved customer targeting: Sainsbury’s has required to adapt the CRM system that can
easily captured customer data. In order to do something with it. Sometimes, it is one of important
innovative idea that help for resolving the fundamental problem.
Implement remote working: it is another IT solution for business to integrate with
smartphone and other application that come along with it. Sainsbury’s needs to use this concept
for establishing connection with multiple devices. It is actually feasible now to work from
anywhere, any place.

CONCLUSION
From above discussion, it has summarised about the innovative concept of information
system that always supports for organization in term of growth as well as development. It has
discussed about the impact of IT system and their contribution of organization. Also, describe the
various IT system that useful for business to store or record large amount of customer
information. Furthermore, it has found the common business problem which directly impact on
the business profitability so as implement IT solution, provide the direction to maintain overall
business operation and function.

REFERENCES
Books and Journals
Aluko, O. and Knight, H., 2017. From corner store to superstore: a historical analysis of
Sainsbury’s co-evolution. Journal of Management History.
Devarajan, Y., 2018. A Study of Robotic Process Automation Use Cases Today for Tomorrow's
Business. International Journal of Computer Techniques. 5(6). pp.12-18.
Eichhorn, B. and Tukel, O., 2018. Business user impact on information system projects.
International Journal of Managing Projects in Business.
Howell, R., van Beers, C. and Doorn, N., 2018. Value capture and value creation: The role of
information technology in business models for frugal innovations in Africa.
Technological Forecasting and Social Change. 131. pp.227-239.
Mola, L., Rossignoli, C. and Giangreco, A., 2020. Business intelligence system design and its
consequences for knowledge sharing, collaboration, and decision-making: an exploratory
study. In Information Diffusion Management and Knowledge Sharing: Breakthroughs in
Research and Practice (pp. 382-402). IGI Global.
Popovič, A., Puklavec, B. and Oliveira, T., 2019. Justifying business intelligence systems
adoption in SMEs. Industrial Management & Data Systems.
Soto-Acosta, P., Popa, S. and Martinez-Conesa, I., 2018. Information technology, knowledge
management and environmental dynamism as drivers of innovation ambidexterity: a
study in SMEs. Journal of Knowledge Management.
Towell, J., 2020. An Active Learning Environment for Teaching Object-Oriented Concepts in
Business Information Systems Curricula. Journal of Information Systems Education.
11(3). p.10.
Tworek, K., Tworek and Rauscher, 2019. Aligning IT and Business. Springer International
Publishing.