Roles of Information Technology in Tesco: Analysis and Discussion

This report discusses the roles of information technology in Tesco and its impact on the growth and success of the business. It also explores ethical and social issues related to business and different types of network technologies used by Tesco. Additionally, it highlights the importance of intranet and internet for the business and the stages of system development life cycle.

CFPBUS003 -
Introduction to
Information
Technology

Abstract
The report has discussed about information technology and its usefulness for organisation
that can lead to effective achievement of goals. Information technology helps in collection and
maintenance of large information of firm for effective formulate of strategies to achieve
objectives. It have discussed about importance of internet and intranet in growth and success of
enterprise. It has also explained about different types of network technologies that can be used by
enterprise to communicate with each other.

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................4
Literature review..........................................................................................................................4
Analysis and Discussion..............................................................................................................7
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................11

INTRODUCTION
Due to digitalisation and development in technology most of the organisation is using
information technologies to analysis different data to formulate effective strategies that can
contributed in effective growth and success of enterprise. Different roles are played by
Information technology that may lead to success or failure of organisation. This report is about
Tesco enterprise that operates business in retail industry to fulfil needs of various individual in
order to earn specific amount of profit margin. It have analysed roles of IT, ethical and social
issue related to business. It also differentiates between different types of network technologies
that are used by enterprise to connect with people. It has also discussed about various importance
of internet and intranet for Tesco and different stages of system development life cycles.
Literature review
Role of IT in success and failure of business
As per view of Watrous-deVersterre, (2020) there are various roles of information
technology that lead to success and failure of business in competitive market condition.
Information technology means that companies makes use of recent and innovative technologies
such as computer to collect, analysis and evaluates or protecting different and curial information
of firm so that appropriate strategies can be formulated for growth and success of enterprise.
Information technology helps in better communication between employees, customers and
investors of firm for taking or implementing decision so that overall objectives can be attained.
Poor network connection or employees having less knowledge about information technology
may lead to ineffective communication, confusion and hinder smooth operation of enterprise.
Another roles that is played by Information technology in organisation is effective management
of inventory so that company can have sufficient products and services for its customers. It helps
in reducing over cost of organisation as it can avoid storage of unwanted products within
warehouse of company. So as per Watrous-deVersterre, ineffective management of information
system lead to shortage of products thus delay in satisfaction of customer’s needs and wants.
Customer’s relationship management is another role that is played by information technology in
organisation which helps in retaining customer’s satisfaction and loyalty for long term growth
and success of enterprise. Customers are most crucial for any organisation as they by making

purchase of products and services helps in increasing sales volume and profitability. Most of the
company collect, analysis large amount of data in order to formulate effective strategies so that it
can survive and grow in competitive market. Therefore as per Watrous-deVersterre,
effective management of information technology helps in maintain strong relationship with
customers and optimum utilisation of resources for achievement of common goals.
Ethical and social issue related to business
As noted by Mythili, ( 2018) ethics are moral principle and values that are followed by
individual or organisation while performing different task to build and retain strong brand image
in the market. There are diverse individual working in organisation so manager need to
understand social, culture preference and background of employees for their effective
coordination and cooperation towards common goals. There are different ethical and social issue
that are faced by business in recent world that resulted into various problems for firm, customer
and employees. Most of the individual that are working in enterprise think that company does
not take crucial steps for ensuring their safety, security and effective implementation of ethical
practice within organisation. Most of the public organisations are following unethical or
misrepresentations of profit in accounting that have created problem or issue for other business.
Another social and ethical issue related to business is that lost of most crucial information of
organisation through such medium that directly impacted on overall brand image of enterprise.
Some of the organisations restrict their employees to freely post their views, ideas to social sites
that result threat to their freedom. Harassment and discrimination is most crucial social and
ethical issue that is related to number of business so government of various countries have
formulated strict laws so that no harm can be caused to employees that are working in the
organisation. As per Mythili, there are various discrimination that have to bear by individual in
the firm on terms of gender, religion, caste. Some of the harassment and discrimination
prevailing in workplace are sexual harassments, racial discrimination and inequality regarding
distribution of payment to men and women. Employees are not provided good working
environment or equal opportunities to share their views, ideas that lead to dissatisfaction among
existing employees.
Different types of network technology

As illustrated by Kilgour, Sutherland and Wood, (2020) network technology refers to
such type of technology that is used to exchange or share various information that is used by
business or education institute for effective operation of their business. Transmission and scale
are two method that can be used to classified network technologies. Based on transmission of
information there are two types of method point to point and multi- point network technology
that are used by firms to connect with employees or customers. Point to point state that when
sender and receiver of information are connected to each other closely or directly then unguided
medium can be used for wireless network. On the other hand in case of multi-point there are
several nodes that are connect to common medium therefore time sharing and spatially shared
are two types of connection. The Kilgour, Sutherland and Wood, has also explained about
network technologies based on scope such as LAN (Local Area Network) which use computer,
smart phone in order to connect with each other with areas of 100 m to 10 km. Another category
of scope of network technology is MAN (Metropolitan Area Network) that made after joint of
various LAN to exchange various information across large area. Wide area network route are
jointly united that are used by enterprise to share their information to number of customers for
increasing overall sales volume and profitability. Kilgour, Sutherland and Wood, has also
described about personal Area network that are made by use of various components such as
wireless keyboards, head phones and printers thus such network are useful for personal purpose.
Some of the data and information are transferred or shared virtually so Virtual private network is
one such technology that is used by people for virtual exchange of information. Therefore it can
be illustrated that there is various differentiate between different types of network technology.
Importance of Intranet and internet for business
From the point of view of Ataie, Shah and Ali, (2018) intranet helps in fulfilling digital
communication needs of business by providing secure space to store, collect and develop
electronic material for smooth operation of business. It can be stated that intranet are one of the
most useful tool for business as it helps in strong large amount of information about staff news,
memos at centrally which can be utilised any time to take accurate decision for growth and
success of enterprise. It also important for organisation as helps in better coordination of diverse
individual of organisation towards accomplishment of common goals. Most of the organisation
use intranet to trained different types of employees that work in firm so that specific objectives
can be attained within limited errors, mistakes. By use of intranet enterprise can easily analysis

and evaluates previous performance of each employee thus plan for appraisal, growth and
development of individual within firm. On the other hand importance of internet for business is
that company can easily connect with its employees, customers and investors that are living
across different countries. Company by use of effective internet connection can coordinate
different department to work together for achievement of common goals and satisfaction of
customer’s requirements beyond their expectancy. Internet connection has reduced cost of
companies as it can easily promote various products and services to large number of customers
within limited time and cost. Therefore, firm need to have internet connection and intranet for
effective growth and sustainability of firm in any industry.
Different stages of system development life cycle stages
As per view of Lanka, Ehsan and Ehsan, (2017) there are main six stage or process that
need to be followed by individual in order to developed effective system for organisation. First
and foremost step of software development is planning which stated that a plan need to be
prepared in beforehand to know about associated risk, advantages or benefits of software. The
second steps that is involved in development of software is analysis of performance of software
so that various action can be taken to improve system. Design of system is another crucial steps
that need to be taken so that software can be designed appropriately. As per Lanka, Ehsan and
Ehsan, after designing of software it is finally implemented so that various data can be analysed
or function of organisation can be performed. Testing is the five stage where mistakes, errors
within system developed in find through testing so corrective action can be taken for effective
development of system for organisation. Last stage of system development life cycle is
maintenance which stated that after following all process of development life cycle system need
to be properly managed so that it can yield benefit for longer period of time. Thus, all such
stages are of system development life cycle that needs to be followed by enterprise in order to
gain competitive advantages.
Analysis and Discussion
From the above analysis and discussion it can be illustrated that information technology
play different roles in Tesco that helps in growth and success of business in retail industry.
Company need to communicate with its suppliers, customer and employees in order to perform
different function within organisation. Therefore Tesco manager by using information
technology is able to communicate supplier about requirements of raw material for

manufacturing of different services of organisation. It also helps manager to easily informed
employees about new changes in policies and organisational structure that is firm is planning to
incorporate so that customers requirements can be fulfilled in best possible manner (Trkman and
Trkman, 2018). At the same time it helps in creating awareness among existing customers about
products and services in which firm deals so that they can make correct and accurate decision for
purchase. Another roles that its performed by information technology is management of
inventory so that various resources can be arranged within limited time for better satisfaction of
customers need. Thus, it contributes towards reducing overall cost of organisation and optimum
utilisation of resources for achievement of common goals. Tesco is able to retain customer’s
loyalty and maximum market share in retail industry that is 28% in UK because of information
technology as it have completed detailed regarding its customers and their respective preferences
(Al-Khasawneh, 2020). Company is also able to manage various crucial information such as
previous years sales, total cost or expenditure that firm incurred to get specific outcome.
Information management system helps Tesco manager to check or review its set strategies as per
goals so that corrective action can be taken for expansion and success of organisation. Thus, it
can be stated that information technology of Tesco helps in minimising amount of risk so that
certain amount of profitability can be earned for success of enterprise.
It can also be analysed and discussed from above report that Tesco was unable to follow
ethical practices that have resulted into decreased in brand image, customers loyalty of firm.
Tesco have been founded misrepresenting its profitability in order to have more market share and
competitive position form other competitors in retail industry. Therefore such strategy has
negatively impacted on firm performance and positioning in retail sectors. So manager of Tesco
have decided to follow various ethical practices and become socially responsible for
sustainability of organisation for longer period of time (Madhukar and Sharma, 2019). There are
various ethical and social issue related to organisation that are taken care by manager of Tesco
such as equality and diversity that state manager have provide equal opportunities to all
employees to share their ideas. It have not discriminated among individual on basis of caste,
culture, gender or race so that they can work together as team for common goals. There is high
conflict among employees as each individual belong to different culture that increase chance of
confusion between individual regarding task or activities that need to be performed. It have also
be analysed from above report that Tesco manager have ensure healthy, supportive working

environment to employees so that they can put their best efforts for growth and success of
enterprise. Company or Tesco manager facing challenges in coordinating work of different
individual that resulted in poor deliver of products and ineffective performance.
It can be critically analysed from above report that there are various types of network
technology that have been used by Tesco manager to build and maintain strong relationship
between customers, employees and suppliers or investors. Tesco manager have used point to
point technologies when it have to directly communicate with specific employees or individual
that work in organisation (Chang, Srirama and Buyya, 2016). On the other hand multi point
communication technology is used to conduct group meeting for number of individual so that
they can be aware of specific changes that company wants to bring in order to retain its position.
Time slot have been made by manager of Tesco regarding the way conservation will be
continued and information can be easily exchanged. It can also be analysed from literature
review that on basis of Scope of its operation or task that need to be performed it have use
different network technology so that desired outcome can be gained. Tesco have scanner, printer,
phones and computer that are used to share information among various individual that work in
organisation so that task can be effectively performed. In order to attract people of UK only
company have make use of MAN network technology so that various individual of UK can be
motivated to make purchase of products and services of Tesco as compared to other competitors
in retail sectors (Urbinati and et.al., 2020). Another network technology that is used by company
is that WAN that helps in better coordination of various stores that are operating across
worldwide so that mission and vision of firm can be achieved. There is minimum use of
personal area network in Tesco as they only helpful in exchange of crucial information among
close person only. For examples: wireless keyboard, printer that are used for personal purpose so
Tesco does not allow such types of personal network for safety and security of company
information. Last network technology that is used by manager to communicate with investors so
that they can be influence to make investment is virtual private network it helps in explaining
associated risk, benefits of project by use of virtual image (Marabelli and Galliers, 2017). Thus,
investors can easily get different information about project quickly and takes decision to make
investment that is essential for growth of enterprise.
Another point that have been analysed from above analysis it can importance of intranet
and internet for Tesco. It can be stated that intranet has helped staff member to get accurate and

consistence information regarding taste, preference and recent trends in retail industry thus
contributed in enhancing performance of employees of Tesco. Manager of Tesco is able to
effective coordinate and evaluates performance of each individual by use of intranet as it helps in
storing and collecting lot of information regarding various employees that work in organisation.
Another importance of intranet for Tesco is that manager is able to effective share various
information to diverse employees that work in organisation so that chance of conflict and
confusion regarding task that need to be performed by particular individual can be reduced.
Strong internet connection and networking has helped company to manage different stores of
firm that operates in various countries (Zhang, Wang and Zhuang, 2017). Internet is also crucial
for Tesco as it helps in establishment of strong brand image and market share as company by
using social media platform is able to create awareness among large number of individual. It is
able to attract existing as well as new customers that reside in different countries to make
purchase because of its expansion or increase presence in online sites. Internet connection helps
manager of different stores to coordinate and formulate effective strategies for Tesco so that it
can maximum its market share and profitability (Jain and Yadav, 2017). Internet has contributed
in effective performance of various tasks, effective satisfaction of customer’s requirements and
reduction in cost of marketing of products to different individuals.
It have been critically analysed and interpreted that various stages of software
development process life cycle that is considered by manager in order to know specific outcome
for period of time. There are six stage of system development life cycle that are followed by
manager of Tesco so that overall objectives of firm can be accomplished. Manager of Tesco
before development of system prepare plan that effective analysis strength and weakness of
project, reason or importance of system development for organisation (O'Neal,m Gibson and
Cotten, 2017). It also analysed total cost, risk and benefits involved with development of
particular system for organisation. The second steps that is considered by Tesco manager is
Analysis of software development to know about keys areas in which it excel and other that need
to be improved for getting maximum benefits. Manager set standard steps, procedure and task
that need to be performed by each individual for development of system so qualitative services
can be render to number of individual that live in UK and across worldwide. Manager finally
developed better system so that task can be performed in effective manner and finally
implemented the system developed in order to evaluate particular outcome that company wants

to achieve. It also test system developed in order to find associated error, mistake so that
effective plan or solution can be planned to reduce them (Eikebrokk and Iden, 2016). Tesco
manager for long term growth and strong brand image, reputation of firm ensures that system
developed is effectively managed and upgraded time to time so that customers can be happy and
satisfied.
CONCLUSION
From the above report it can be concluded that information technology helps in effective
management of information regarding customers, employees of organisation. Tesco can use
information technology to expand its business operation and effective manage different stores in
order to earn more profitability. Both Intranet and internet are crucial for organisation as they
contributed in effective building of brand image and better customer’s satisfaction. At last it can
be stated that in order to enhance life cycle of system developed Tesco manager need to ensure
its maintenances and adapt as per external changes for growth of firm.

REFERENCES
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