Impact of Information Technology on the Management of TESCO

This report explains about the impact of Information technology on the management of TESCO. Also, it emphasizes on the role of internet in growth and development of profits of the company.

Business

ABSTRACT
This report explains about the impact of Information technology on the management of
TESCO. Also, it emphasizes on the role of internet in growth and development of profits of the
company. TESCO is investing in the information technology due to which the company faces
some of the key challenges in its implementation in the working environment. It also discusses
about the different types of networking system which are followed by the company. Moreover,
there are some of the social and ethical issues are faced by the company which are associated
with the technology.

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Information Technology and its use in Retail Business..............................................................4
Ethical and Social issues faced by Retail Businesses.................................................................5
Networking Technology and its types.........................................................................................5
Intranet and Internet....................................................................................................................6
Software development life cycle.................................................................................................7
Analysis and discussions..................................................................................................................8
Role of IT in TESCO..................................................................................................................8
Information System used by TESCO..........................................................................................8
Ethical and Social Issues of TESCO...........................................................................................9
Networking Technology used by TESCO...................................................................................9
Intranet and Internet in TESCO................................................................................................10
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11
Books and Journals...................................................................................................................11

INTRODUCTION
Technology is a a way of implementation of the scientific knowledge in the practical
world which will make their working management convenient. It is a tool which is used by
various organisations which helps them to grow in the competitive industry. Information
technology can be described as a way of combining the all forms of technology that involves the
usage of information and data of the company. Also, use of internet have enhanced the
promotional connect of the company with their customers. This report will focus on the
application of the concepts and tools of the IT in the management of TESCO. This report will
cover the different stages of system development in relation with the mentioned company.
Moreover, it will focus on the ethical and social issues faced by the company by collaborating
the IT in their management (Asongu and Odhiambo, 2019). Furthermore, it will focus on the
types of internet networks used across the various companies.
MAIN BODY
Information Technology and its use in Retail Business.
Retail business uses technology as way to capture the customer data in order to evaluate
their preferences in the changing working environment. The application of IT in retail business
will provide them effective market knowledge. Since the retail businesses goes through a lot of
transactions on a daily basis and to tackle those transaction effectively the company implements
the information technology. The retailers implements IT for multiple reasons which are
explained below:
 IT will enhance the flexibility and speed of the operations of the company . This results
in enhanced ability of the business in responding to the customer groups.
 For introducing differentiation the company can evaluate their customer data. This data
will give them an insight about the current trend and preferences of the customers which
is stored in information management system of the company (Bergholt, Larsen and
Seneca, 2019).
 Moreover, the company develops a global data synchronization platform that will store,
manage and control their data and information effectively.

Ethical and Social issues faced by Retail Businesses.
The retail business works in an dynamic competitive environment. For growing
successfully in this environment they have to make sure that their customer base is enhanced on
a regular basis by implementing their effective strategies. But sometimes the companies faces
some of the ethical and social issues that impacts their goodwill and image in the industry. Some
of the ethical and social issues faced by the retail organisations are as follows:
 Personal Privacy: This is the major issue faced by the retailers in safeguarding the
information of the customer data. The company collects the customer data for judging
their preferences which will help them in improvising their products (Chi, Li and
Tsekrekos, 2019). But to secure that data company must devise effective software which
will safeguard the customer information from third party.
 Piracy: This is the act of stealing the information or idea of any other party. Sometimes
the data of the company are stolen by the third party and they misuse that data. It is the
duty of the management to implement strong networking system in order to secure that
information.
 Copyright: The IT specialist make use of copyright law in order to secure their software
before and after security breach. This type of breach involves the misuse of personal data,
documents and company information.
Networking Technology and its types.
Networking technology provides a right and authority to the retail organisations to send
their data digitally. This will make their work convenient and flexible which will minimise their
operating cost and enhance their profits. Routers and modems plays an crucial role in the
establishment of networking system (Campbell and Tawadey, 2016). It includes the transmission
of data between two or more computers that are connected through routers and modems. The
types of networking technology can be explained as follows:
 On the Basis of Transmission: It involves the two kinds of networking technology
which are as follows:
◦ Point to Point: It involves the guided medium and unguided medium. Guided
medium means when the sender and the receiver are connected directly then the data
transmission is done through this way. While on the other hand when they are
connected through wireless networking it is included in unguided medium.

◦ Multi point: in his several nodes are connected with the help of a common medium
in a direct way. This will help them in time sharing technique which will enhance
their efficiency.
 On the basis of scale: The networking technology can be classified on the basis of scale
in the following way:
◦ Local area network: These network devices linked computer, mobile and laptop are
connected through this network will cover a range of 100m to 10 km.
◦ Metropolitan area Network: When more than one LAN is connected and forms a
bridge then it comes under this network.
◦ Wide area Network: When more than one WAN is connected through routers are
known as WAN (Dunbar, Fraser and Kunz, 2020). It comprises of two types public
WAN and private WAN.
Intranet and Internet.
Intranet: It establishes a network connection between more than one computers of an
private organisation. This network is not accessible to the individual outside the organisations.
The companies use this network to make sure that their will be an flexible networking system
across the company which will make the working of the employees more convenient. The
importance of Intranet can be explained as follows:
 Due to its accessibility only to the members of the organisation it safeguards the company
data from its competitors or to be misuse by the third party.
 This speed of network is more as compare to internet as there are limited number of uses
which indulges less traffic at the networking system.
 The information of the company is transmitted only to the employees of the company
which makes their work easier and enhances their speed and flexibility.
Internet: It is a global system of interconnected transmission of data through numerous
networking system across the world. This system uses Internet protocol suite to communicate
their information to the third party through this medium (Fine and Sojo, 2019). This system is
used in various organisation, institutions and public authorities. Moreover, this reduces their
work stress and securely transfer their information to the selected party. The importance of
internet can be explained as follows:

 Anyone can access the internet and get the information they want which makes their
work easier and effective.
 This system have enhanced the knowledge of an individual which will motivate them to
take complex tasks for their growth and development.
 It act as a communication bridge between two peoples who are miles a part. This system
ensures their effective and convenient communication.
Software development life cycle.
Software are the tools that ensure smooth working of the companies in the complex
working environment. Software development life cycle (SDLC) is a way to develop high quality
software with low cost to be incurred in this process by the software developers (Fuller,
Jacobides and Reeves, 2019). The developers try to follow their budget which is pre determined
by the management of the company for the SDLC process. This process includes the following
steps:
 Identify Current Problem: This is the first and main stage which focuses on the
identification of the problem faced by the company in he current scenario. This problem
is judged and evaluated after the current trend analysis by the software developers.
 Plan: In this stage the software developer team will evaluate the cost structure and
resources requirement for the software. After that the team will develop numerous sub
plan which involves formation of budget and so on.
 Design: This includes specifying the design of the software according to the idea
generated. This plan will be submitted before the stakeholders which will provide
suggestion and feedback for further processing.
 Build: This stage involves that the developer must follow the blueprint developed in the
previous steps. This will make their work easier and effective (Ghemawat, 2017). Also,
the team must make sure that they must develop proper guidelines for the codes and
software development.
 Code Test: This is a crucial step which analyses the hard work done by the team in order
to develop an effective software. This will detect the deficiencies in the software which
will be fixed by the team for further processing.

 Software Deployment: this stage includes the introduction of the software in the
production department which will enhance their working techniques. Sometimes
stakeholders allows to release the software in the market.
Analysis and discussions
Role of IT in TESCO.
TESCO operates their chain of grocery network from London, UK across the globe. The
company was founded in 1919 by Jack Cohen as a British multinational store. After that the
company have diversified its operations into different areas namely; clothing, retail, toys, petrol
and so on. The company have digitalised their operations in last 15 years which have enhanced
their customer base across the globe (Holloway and Humphreys, 2019). The company have
implemented the technology in their business environment in the following ways:
 Stock Counter: TESCO have introduced a RFID enabled barcode which have enhanced
their stock counting abilities and make the workings of the employees convenient. This
software counts the product automatically which will be removed before entering and
after leaving their store. This information is then passed on to the suppliers for the
purpose of tracking the records.
 BYOD integration: TESCO have introduced bring your device for their employees to
keep a check on the stock of the products available in the store. It is an app through
which the employees can check that the products which are out of stock just by scanning
the barcode. This will solve the problem of out of stock products of the store as the
employee can order the product before that.
 Advanced M-commerce: TESCO have developed strategies to make use of their
potential in digital world. The company have introduced videos, 360 degree images of
their products on their websites which will enhance their customer engagement.
Information System used by TESCO.
TESCO is the largest grocery store across the globe. The company have successfully
implemented the oracle and SAP in their working department to ensure effective information
system (Liu, Zhang and Desbordes, 2017). Oracle database is used for running data warehousing
and online transaction processing which will ensure scalability and high performance for the

company. While SAP is a software developed for establishing effective customer relationships
and for managing the business operations. This software is cost efficient which analyses the data
and maintain consistent information. The following system are also used by TESCO:
 Transaction Processing System: TESCO uses a variety of software's like
EPOS( Electronic Point of Scale) and PDCU (Portable Data Capture Unit) and so on.
Through these software's an employees or a client can scan the products of the store to
purchase or sell them.
 Management Information system: This product is very useful for TESCO as it allows
the company to order large batches of products through establishing communication
among different stores of the company.
 Executive Support System: The ESS is adopted by TESCO under which the company
have introduced credit to cash software which act as a financial tool. With the help of this
software the managers can easily access the customer data and their billing applications
which will be used to analyse the financial position of the company (Power, Heavin and
Daly, 2018).
Ethical and Social Issues of TESCO.
TESCO faces the following ethical and social issues in their working environment:
 Trade secrets: This is an important issue faced by TESCO which is created by the
software developers. It is the duty of the management to maintain the secret information
of the company and to safeguard the customer data effectively. The company can
introduce legal agreements will protect the confidential information of the company.
 Patents: It is difficult for the company to obtain a patient. This ethical issue is faced by
TESCO which effects their integrity in the marketplace. A patent preserve the unique
idea developed in an organisation. But before that the patent holder have to disclose their
unique idea before the programme developer (Sheppard, Yeon and London, 2018).
Networking Technology used by TESCO.
TESCO adopts the Wide Area Network technology to transmit their data across the
company. The company focuses on connecting the numerous WAN's through routers which will
ensure effective processing and transferring of the data. This network ensures that the data is
securely transferred among the employees of the company. Also, the company have used WEP

(Wired Equivalent Privacy to ensure privacy of their data. The company was facing exhaustion
attacks which have impacted their internet performance. That is why the company have
introduced WEP and WPA2 to change the encryption of data for securing its mishandling. This
will secure the message from the unauthorised usage which will develop effective ways for
growing in the contemporary environment (Snihur and Tarzijan, 2018). The company is working
on network topology which involves usage of multiple computers at one place. There are three
types of technology namely; bus, star and ring. The company have diversified its operations to
ensure smooth operations in their working environment.
Intranet and Internet in TESCO.
Application of intranet in TESCO have enhance their flexibility in sharing important
information across the company. Also, this will enhance the knowledge of the management team
regarding the technology and its various concepts. Moreover, this will result in improved
collaboration among the employees. The employees can establish effective relationship and
guide each other through proper feedback system. This will motivate a transparent culture in
TESCO which will create engaging content for the company.
TESCO uses internet to connect with the customers across the globe. This system will
ensure that the customer gets the information about the products of the company which will
engage their attention towards the company (Sun, Wu and Yang, 2018). The company uses
internet to gather the customer data and communicate them regarding their preferences. This will
help the company in improving their current offerings.
CONCLUSION
From the above report it can be concluded that technology plays a vital role in the
enhancement of growth and productivity of the company. Also, this report gives a brief
description of various networking systems which can be used to create connection among
numerous devices. Moreover, it includes the application of internet and intranet system in the
organisation which will improve the flexibility of their operations. Although due to technology
the company faces some ethically and social issues but they tackle those issues effectively to
satisfy their customers. It also depicts the role of information technology in the organisation and
in building their brand identity in the complex working environment of the industry.

REFERENCES
Books and Journals
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International Money and Finance, 96, pp.283-303.
Campbell, A. and Tawadey, K., 2016. Mission and business philosophy. Elsevier.
Chi, T., Li, J., and Tsekrekos, A. E., 2019. Real options theory in international business. Journal
of International Business Studies, 50(4), pp.525-553.
Dunbar, W. S., Fraser, J., and Kunz, N.C ., 2020. Mining needs new business models. The
Extractive Industries and Society, 7(2), pp.263-266.
Fine, C. and Sojo, V., 2019. Women's value: beyond the business case for diversity and
inclusion. The Lancet, 393(10171), pp.515-516.
Fuller, J., Jacobides, M. G. and Reeves, M., 2019. The myths and realities of business
ecosystems. MIT Sloan Management Review, 60(3), pp.1-9.
Ghemawat, P., 2017. The laws of globalization and business applications. Cambridge University
Press.
Holloway, J. C. and Humphreys, C., 2019. The business of tourism. SAGE Publications Limited.
Liu, D., Zhang, J. J. and Desbordes, M., 2017. Sport business in China: Current state and
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approach. Journal of Business Analytics, 1(1), pp.40-53.
Sheppard, B., Yeon, H. and London, S., 2018. Tapping into the business value of design. The
McKinsey Quarterly.
Snihur, Y. and Tarzijan, J., 2018. Managing complexity in a multi-business-model organization.
Long Range Planning, 51(1), pp.50-63.
Sun, J., Wu, S. and Yang, K., 2018. An ecosystemic framework for business sustainability.
Business Horizons, 61(1), pp.59-72.
Urbinati, A., Chiaroni, D. and Chiesa, V., 2017. Towards a new taxonomy of circular economy
business models. Journal of Cleaner Production, 168, pp.487-498.