Role and Purpose of IT Systems in Business

This report discusses the role and purpose of IT systems in business operations, focusing on the case of AZA (A-Z Accounting). It evaluates the influence of IT systems on diverse functions of the firm and provides recommendations for improving their IT systems. The report also analyzes different methods of information storage and processing. Subject: Business IT System

Business IT System

Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
1.1 Critically evaluate role as well as purpose of making use of IT systems by analysis of
influence on diverse functions of firm........................................................................................3
Task 2...............................................................................................................................................6
2.1 Critical analysis of ways in which information is stored and processed...............................6
Task 3...............................................................................................................................................9
3.1 Justified recommendations to AZA to improvise their IT systems in context of support to
value-added change.....................................................................................................................9
Task 4.............................................................................................................................................11
4.1 Critique recommended solution for efficacious monitoring as well as evaluate IT system.
...................................................................................................................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................14

Introduction
Business information system refers to group of inter associated entities that works in
collective manner for carrying out input, processing them, having output, its storage and
controlling actions to convert data within information product for supporting certain activities
within the organisation. Usually, it involves IT infrastructure within business enterprise for
generation and dissemination of desired information (Aydiner and et. al, 2019). This have data as
well as other resources related with IT infrastructure from environment that process them for
satisfying information needs of distinct entities. This report is based on AZA (A-Z Accounting)
that is liable for rendering accounting services for registered businesses along with self-
employed people. They are expertise within Tax returns and possess good client base but there is
a relevant decline within their customer base. This report comprises of role of IT system, their
contribution, and utilisation of IT in different ways. Furthermore, it will also illustrate any
peculiar system through which operations of firm can be enhanced and recommendations will be
given through which problems faced by them will be resolved.
Task 1
1.1 Critically evaluate role as well as purpose of making use of IT systems by analysis of
influence on diverse functions of firm
Information technology system denotes aggregated set of entities that are utilised for
collection, storage and data processing for furnishing knowledge, digital products and
information for management of operations and interacting with customers. For an example
organisation makes use of information system for processing their financial accounts through
which human resources can be managed for reaching their probable customers by opting for
online promotions (Banerjee, 2019). Firms depends on IS (information systems) to execute their
operations and allow them to possess information about their competitors and enhancements
related with the same. This enables them to make alterations accordingly an ensure that the
strategies utilised by them are adequate for accomplishment of needs of their customers. For an
example, AZA can design their own application that will enable them to carry out online
transactions in an affirmative manner. By opting for technology, it will become easy to carry out
processes associated with services and products through this they will be able to grab attention of
their potential customers. With respect to AZA, they provides accounting services to distinct

stakeholders and are specialized within Tax returns. They have started new offices across
London and Midlands which means that they have diversified their operations. But with
evolution of technology, the ways in which operations has to be conducted will also change in
order to have high efficiency and authenticity. The role and purpose of IT in different functions
of organisation has been specified beneath:
Function of communication: This is critical aspect for organisations even before the
invent of technology. With evolution of internet and computers, this function or entity is
redefined. With this, the aspect of communication have also evolved and this can be understood
by taking an example like individuals can communicate across the world irrespective of their
physical location (Five IT Functions in an Organisation, 2019). The IT department of AZA will
provide them to have an enhanced opportunity to diversify their connections by opting for
distinct channels. They are mentioned beneath:
 Email: Message can be easily sent to employees while an individual want to interact
without having any physical contact. It acts as great channel through which official
communication can be conducted by AZA and leaves virtual paper trial that enables to
possess steady record of their conversation.
 Collaboration software: This aids teams to work collaboratively on projects in
affirmative manner which is both fast and efficient. By making use of adequate
collaboration software, the project time can be reduced to half and will eradicate needless
meetings as this can be also conducted through virtual meeting rooms. Video conferencing: This acts as a enhanced way for communicating with faraway team
and see them at similar time frame (Braff, 2020). This will enable AZA to easily have
remote meetings along with collaboration on projects.
Function of data management: With increase in the complexities associated, the amount
of data that has to be dealt by AZA firm is also increasing with which they have to deal with.
The information is within distinct dimensions like audio, video and text data. For this, it is
necessary for organisation to opt for IT system named database, this comprises of: Storage of data: By making data in the storable format, database aids firm within storing
huge amount of data within small space (Brenstein, 2019). This will aid AZA to have
easy access to information as per their requirements.

 Management of data: Raw data is not of use until this is sorted within meaningful format
so that their meaning can be deciphered in adequate manner and formulate business
decisions accordingly. The IT department within AZA is liable for managing it, analysis
and draw implications.
 Accessing data: Irrespective of data which has to be stored by organisation, it is valuable
as well as it is required to control adequate people who possess access to them
(Drobyazko and et. al, 2019). It will also be assured by IT department of AZA that any
unauthenticated access is prevented.
Function of Process Improvement: This involves improvisation of processes as well as
efficiency for saving money of the company. It will further lead to save cost associated with
copying and printing by depending on paperless interaction. Video conferencing and
collaboration software will lead AZA to save the logistics expenses that might be required each
time the team meeting has to be conducted.
Contribution of IT systems in improvisation of organisational performance, solving problems
and accomplishment of organisational objectives
Information technology has made wide range of contribution in each firm irrespective of
their functionalities, industry or size. This enables them to ensure that they are able to deliver
their services as per desired standards and attain precise accuracy (Franco, 2019). IT can be used
by AZA for attaining their goals and objectives on desired time frame. The certain aspects
related with this are depicted beneath: IT in Stakeholder integration: This is critical objective that can be attained by making
use of information technology. By making use of 24*7 interconnectivity, AZA can
deliver their services as per desired standards. The firms have options through which
firms can utilise investor relations website for communicating with research analysts,
shareholders and other participants within the market. IT and cost efficiencies: The initial IT execution cost might be substantial which will
further lead to long-term savings that are worth saving. This allows firms within
minimising transaction as well as execution costs . For an instance, the cost of desktop is
fraction at present in comparison to what it used to be in 1980s and they are powerful

(The six important business objectives of information technology, 2019). The solution
which AZA firm can have in context of productivity involves word processing to email
which have allowed firms to save cost associated with redundancy along with postage
while improvisation of customer services and product quality. This leads firm like AZA
to ensure that they have cost effective solution to have cost efficient solutions and save
any unwanted cost. In addition to this, software simulations, rapid prototyping and other
IT-based systems will lead firm to have quick and cost effective solution.
 Globalisation: Firms have to survive within competitive environment which denotes that
they can have operational as well as financial flexibility through which they can grow
internationally and locally. This will enable AZA to easily outsource and telecommute
their operations (Gutierrez-Leefmans and Patrick Holland, 2019). Firm have the option to
outsource their non-core functionalities like finances, human resources to offshore firms
and utilise network technologies for being in contact with their overseas customers,
employees as well as suppliers.
These are certain contributions which are being made by information technology within
firm while delivering their services. In addition to this, these functions will not only be conduced
but it will also be ensured that précised outcomes are being attained. This will further lead firm
like AZA to achieve their goals as well as objectives within timely duration within enhanced
manner.
Task 2
2.1 Critical analysis of ways in which information is stored and processed.
Data storage is defined as aggregate technology and method that is liable for capturing
as well as retaining digital information within silicon-based, optical or electromagnetic storage
medium. In this case, recording media's are utilised for retaining data by utilisation of computers
or other devices. This implies that documents and files can be digitally recorded as well as stored
within system for future utilisation (Han, 2019). Through data storage it will become easy for
AZA to create backup of files through which they can be recovered quickly and safely kept
within the event of any cyberattack or computer crash. This can take place on disk drives, USB

drives, virtually in cloud or hard drive. This means that files will be easily backed up and made
available even after any crash. Certain types of data storage have been illustrated below: DAS (Direct attached storage): This denotes kind of data storage which is physically
linked with computer is accessible with only one machine. For an example, AZA have an
option to make use of CD/DVD drives, hard drives, solid state drivers and many more.
They are liable for providing organisations with local backups but while sharing data
there is a probability that machines may become cumbersome.
 NAS (Network attached storage): This enables multiple machines within sharing storage
over certain network. It can be attained via multiple hard drives or any other kind of
storage devices within the RAID configuration (What is Data Storage? Data Storage
Types & Attributes, 2020). The key benefits that can be attained by its usage comprises
of ability for centralising data as well as improvising the collaboration. This enables firm
within easy sharing of data between connected machines as well as setting up permission
levels in context of control levels.
Knowledge management: The systematic management associated with knowledge assets
for intent of creation of value as well as acknowledgement of tactical as well as strategic needs is
referred to as knowledge management. This comprises of initiatives, strategies, processes along
with systems for sustaining and enhancement of storage, sharing, assessment, refinement as well
as creating value for knowledge. The three major areas associated with knowledge management
comprises of accumulation of knowledge, its storage and sharing as per requirements (Langford
and Langford, 2019). The goal behind this is to enable organisational learning and formulation of
learning culture so that AZA can have relevant knowledge related with probable aspects of data.
This will further ensure that firm will be able to deliver their operations in an appropriate
manner. An example can be taken into consideration to understand this process like
Raw data: 123456, Alex, UK, 8956707875, Elizabeth, street
Processed information: Alex
Elizabeth Street
123456
UK
Knowledge attained: Address of Alex

If any employee need address of Alex then they can see the processed information to
attain knowledge. This will simplify the process of employees as extraction of knowledge from
raw data will be time consuming process.
Customer relationship management: This is defined as an approach which aids
businesses within improvisation of existent customer relationship by acquisition of new
customers quickly (Lim and Seo, 2019). The CRM software provides single repository for
bringing up marketing, sales as well as customer support activities together along with
streamlining processes, people and policies within single platform. It is liable for managing
centralised data which assist businesses within improvisation of customer satisfaction, retention,
experience and services. AZA can customise their CRM system for meeting up peculiar
requirements of their operations. This will enable business to gain new customers as well as their
existent ones. The system will emphasise on considering customers at the centre with respect to
whatever they do.
Data management: The administrative process that comprises of acquisition, validation,
storage, protection and processing needed data for ensuring timeliness, accessibility and
reliability of data for their users. This will AZA to maintain their organisation, people as well as
connected things for optimisation of data in bounds of policies. Managing data comprises of
broad range of practices, tasks, procedures and policies (Massaro and et. al, 2019). This will
enable organisation within creating, accessing, updating and ensuring privacy as well as security
of data that is being utilised by them. The common approach that can be utilised by AZA are
master data files which provides illustration of all assets along with their properties for
elimination of competing or ambiguous data policies. This will further lead them to minimise
operating expenses by making use of only critical storage as well as computing power for having
optimised performance.
Communication management: This implies systematic formulation of plans, their
execution, monitoring and revision of channels via which interaction within firm occurs.
Effective communication acts as a key to success of the firm and for this AZA needs to sure that
they have relevant channels through which operations can be carried out in an effective manner.

It is crucial that the communication must be across all the stakeholders and this can be created by
formulation of adequate communication management plan. This must include all their audiences,
communicate objectives, illustrate the message and channels through which this can be carried
out (Qu and et. al, 2019). This will lead them to make sure that AZA organisation is able to
deliver their services in precise manner and also leads to ensure that goals & objectives
associated with projects have been attained within desired time frame.
An example can be taken to understand this aspect like, AZA can opt for cloud
computing which will lead firm to have different opportunities for data storage along with its
management. This will further enable them minimise the cost associated with unwanted space,
security aspects, maintenance of hardware, security of software & hardware, high processing
capabilities and many more assets can be acquired by them. This will enable them to have
knowledge form data and further conduct their operations in smooth manner.
Task 3
3.1 Justified recommendations to AZA to improvise their IT systems in context of support to
value-added change.
With the growing needs of the market and evolution of technology people are looking
forward to have smooth services without any kind or minimised efforts. Thus, each firm is
delivering their services in a manner that will lead to ensure that they accomplish needs of their
potential customers in an adequate way (Renfroe, 2019). With reference to AZA firm, they are
facing different challenges with respect to attainment of satisfaction of their customers and their
retention. This lead them to have decline in their customers as they opted to switch to other
accounting organisations. The quality of services delivered were not adequate and when any
complaints are being made by their customers then they have to wait over phone which means
that there is delayed response and confirmation with respect to filing tax through emails or other
methods is also not received. Along with this, certain operational issues like sharing and
recording of information between offices was difficult as there was no adequate IT infrastructure.
For competitive edge, it is recommended that AZA can make use of Management information
system. This will lead firm to ensure that they have support of technology through which they
can enhance their business operations and sustain within the competing environment.

Management information system refers to scrutiny of people, organisations, technology
and relationship between them. This aids firm within realising enhanced benefits from
investment within equipments, personnel and other business processes. Here, emphasis is laid on
people orientation.
Advantages:
 This will assist decision makers within formulation of effectual decision making through
which AZA firm can conduct their operations by analysing all the aspects associated with
the project.
 MIS will facilitate interaction within as well as outside the firm. This implies that it will
be easy for employees to have access of relevant information for everyday activities
(Smith and et. al, 2020). For an instance AZA can opt for making use of email and short
message service to interact with their suppliers and customers.
 MIS will enable the firm to maintain records of all the business transactions so that they
can have reference for all the transactions that have been carried out by them. The AZA will be provided with adequate information through which they can formulate
adequate plans and conduct timely control. In addition to this, data is present within
summarised form that will restrict the issue related with information loading.
Disadvantages:
 There might be security issues such as hacking or any other kind of attack like distributed
denial of service (DdoS), malware, etc. This implies that there is high threat that third
person might have access to their system.
 Lack of flexibility in context of upgrading software and execution of MIS is also
expensive in context of training furnished to human resources, hardware & software.
Though, there are certain disadvantages associated with this concept (MIS) but this will
aid AZA to have adequate value added support through which their business operations,
sustainability and performance can be improvised (Tonnison and Tonnison, 2019). An example
can be taken to understand these three aspects like with the usage of MIS, AZA will have a
overview of all the departments (will act as a central repository) in terms of resources, budget,
activities, etc. in summarised form. According, to this information they can formulate plans and
make decisions with reference to project, this implies that MIS will aid within decision making

and when relevant judgement & plans are made then this will lead them to complete their
operations precisely and attain high performance. In similar manner, when project will be
successful as it will enable them to accomplish needs of their customers then sustainability
within the market place can also be attained. This denotes that through usage of MIS, AZA will
be able to attain their goals and objectives in timely manner.
Task 4
4.1 Critique recommended solution for efficacious monitoring as well as evaluate IT system.
The various challenges are being faced by organisation while delivering their services
within the competitive environment which limits their offerings and ways in which they deliver
their services in order to accomplish needs of their potential customers. The major challenge that
AZA might face is inconsistent data collection which makes it critical to streamline their peculiar
reporting, data might not be aligned, the process can be time consuming, low quality data
gathering, etc. There are different tools which can be utilised by AZA to meet needs of their
stakeholders both via online and offline modes. The offline data collection as well as evaluation
tools are: Magpi, Dimagi, ODK based ecosystem, etc. In context of online operations, they can
make use of survey monkeys, Google forms, qualtrics, etc. (Viriyasitavat and Hoonsopon, 2019).
This implies that as per the requirements firm can opt for relevant method or tools through which
they will be able to make sure that needs of AZA are accomplished in an adequate manner.
For dealing with these aspects, it is recommended that firm can opt for customer
resource management system so that consumers can have a platform through which they can
make their complaints easily and also give precise solution to them. In addition to this, it will
also allow firm to give quick response to the queries raised by their potential customers. CRM
denotes a method for managing interaction of company with current as well as probable
customers along with storage and analysis of data related with past interaction. By having
adequate CRM strategies, firm will be able to provide the customers with products which they
are exactly looking forward for, render enhanced customer services, aids sales staff to close deals
quickly and retain their existent customers as well as discover new (Aydiner and et. al, 2019).
By opting for CRM information system, AZA will be able to support customer-centric
strategy which denotes that emphasis has to be laid on needs of their customers and they will be
at centre.

This will enable AZA to centralise their customers data by combining all marketing,
customer and sales services within single central database. The software will also record the
entire conversation which took place in order to avoid any clashes in future with respect to
offerings given. Like the tax rate discussed with client was 4.5% but after this the given rate was
4% which means that firm is not on their words. Therefore, CRM will be an adequate option
through which firm can have relevant source for interact, respond and address all the problems
that are being faced by them due to lack of adequate information technology system (Banerjee,
2019). In addition to this, it is recommended that firm must also opt for services from cloud as it
will eradicate cost associated with having in-house infrastructure, maintenance, etc.
Conclusion
From above, it can be concluded that, it is important for organisation to opt for
information system as this enables them within making sure that all the acquirements of their
customers are addressed in adequate manner. Furthermore, it will also lead firm to attain their
Illustration 1: Customer-Centric Strategy

organisational goals within desired time frame. IT can be used within each function that are
being carried out by the organisation and provides them with precise information through which
it becomes easy for them to formulate relevant decisions. Furthermore, by opting for MIS and
CRM organisation will have centralised repository that will enable them to have access to all the
critical information and accordingly deliver their operations.

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