Role of Information Technology in Business Success and Failure

This report discusses the role of information technology in the success and failure of businesses. It covers topics such as organizational communication, decision making, customer support, and resource management. The report also explores ethical and social issues related to information technology and different types of networking technologies. Additionally, it highlights the importance of internet and intranet in a business.

CFPBUS003 - Introduction to
Information Technology

Abstract
Information technology is concerned with technology that is used by organisations to
create, store, retrieve and share information in digital format. In order to carry out these functions
it is important that technology is connected with internet. This report has discussed different
roles of IT in organisation and its success. Later different networking technologies have also
been discussed in this report through which computers and technological can be connected with
each other. Report further discussed about internet and intranet and what importance of internet
and intranet in organisation.

Table of Contents
INTRODUCTION...........................................................................................................................4
Role of information technology in success and failure of business.............................................4
Ethical and Social Issues related to Information Technology.....................................................6
Different types of networking technologies................................................................................7
Importance of Internet and Intranet in a business........................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Information Technology can be defined asuse of any computer storage networking and
other physical devices and infrastructure and processes to create process store and exchange all
forms of electronic data. This report aims to discuss different elements of Information
Technology it application and services in business organisation. This report will contextualize
Tesco British multinational groceries and general merchandise retailer. Company was founded in
1919 ad is headquartered at Welwyn Garden City, England, UK. As a retail organisation Tesco
operates through offline as well as online medium and also undertake application of information
technology to carry out different organisational activities. This report will discuss about role of
IT in success and failure of organisation and ethical and social issues associated with running a
business. Report will also discuss about types of networking Technology and importance of
Internet and intranet in business organisation. Followed by this report will discuss about different
stages of system development life cycle.
Role of information technology in success and failure of business
Information Technology has important role to play in today’s organization because several
organizational functions are carried out using information technology (Alzaghal and Mukhtar,
2017). Role of information technology in success and failure of business mainly depends on
organizational adaptation and use of Information Technology. Some of the role that information
technology plays in success and failure of Tesco are-
Organizational communication
Information Technology has facilitated organisational communication that enhanced and
improved quality of organisational communication. Enhanced organisational communication
results in improved an effective coordination and collaboration between different organisational
activities that result in effectiveness of performance in different functions of Tesco. Elements of
information technology that contributed in improving organisational communication includes
software, email, video chat and intranet and internet within Tesco.
Decision making

Decision making is another role that Information Technology plays in success and failure of
Tesco. This means that using information technology Tesco can collect wide range of data and
information from different sources and this data and information can be used for making
decisions. This contribute in effectiveness and efficiency decision and also make decision more
reliable. Tesco can also collect information regarding customers competitors suppliers and
different stakeholders through information technology and information technology can also help
in accurate organisation of data and information to draw decision (Howell, van Beers and Doorn,
2018). In an business organisation that is frequently changing is important to have enough data to
create basis for decision otherwise Tesco might face failure in adaptation to change.
Customer Support
Information technology also facilitate effective customer support and through which organisation
can contribute in customer satisfaction. With help of Information Technology it has become very
feasible for customers to connect and contact with Tesco to share their issues and complaints.
This contribute in customer satisfaction as their complaints in issues get resolved on time.
Information technology is also helpful in sharing information of different nature for customers
this includes sharing different offers and benefits with customers. This is beneficial for
customers as well as for Tesco as through this Tesco enables it to attract more customers.
Improved Marketing
Information technology is also playing important role in marketing.This means that digital
marketing and social media marketing have become there are important for success of
organisation. Information Technology has enabled Tesco to effectively target customers through
social media and digital marketing. Social media and digital marketing also enhance visibility of
organisation and it helps in creating brand image of Tesco. Marketinghas become very important
for success of organisation and digital marketing can make effective contribution in ensuring
competitive success of Tesco. Marketing through Information Technology involves digital
marketing, social media, marketing through email and different digital platforms.
Resource management and globalizing
Resource Management is concerned with effective acquisition organisation and utilisation of
organisational resources. Along with this information technology is also important for success of

organisation while globalising (Mohamad, Ramayah and Lo, 2017). Because through use of
information technology Tesco can communicates with global customers. This is very important
for a company like Tesco that operate in more than one country. It can contribute in successful
operations of Tesco in international market. Ineffective use of information technology can also
cause failure of Tesco in multinational operations.
Ethical and Social Issues related to Information Technology
Ethical and social issues are concerned with those issues and that are not right on the
basis of right and wrong judgement of the actions. There are several ethical and social issues
associated with running a business. Certain issues that Tesco faces are as follows-
Data Privacy- This is one of the most important social and ethical issues for running a business.
This means that businesses operating using information technology face this issue. Tesco collects
and gathers significant amount of data from customers and from different sources and this is
aimed at accurately targeting customers (Balraj, 2016). This involves threat of failure in
protection of data and this requires effective protection of the data and through which
information of customers related to their identity information and financial information as well.
Using information for business- This is another issue for running a business in which Tesco
collect information through different sources. This is required for targeting customers and
communicating with them regarding different sources. Businesses are using different types of
information from different sources and these sources and collecting information from these
sources. This is why such sources have started to gather information and then sell it to Tesco and
other organisations and this comes in category of social and ethical issues. This involves
different types of data and information that these sites collect for the purpose of selling and this
involve different information like their identity related, and hobbies related. This is a issue to
consider whether these sites should collect and sale such information or not.
Hacking- This is one of the very important social and ethical issue. Hacking is an activity that
seeks to compromise with digital devices and involves information technology (Bessen, 2017).
Hacking is often done because of wrong means in which hackers often undertake unlawful
activity and intention of hackers involves financial gain, protests, information gathering and

changes in information and data of the organisation. In order to hack website and information
technology devices hackers make unauthorised access to such websites.
Access Rights- This is another and one of the most important issues related to information
technology use in business. This is concerned with security for information of data from
unauthorised access and different organisations and individuals can access this information and
data. Because of e-commerce and electronic payment systems this has become very important for
organisations to consider this issue. Tesco requires ensuring that within and outside organisation
only authorised people can access information and data of Tesco and also data that is related to
customers and other stakeholders.
Intellectual property rights- Patent and copyrights are tools to preserve intellectual property. In
this obtaining a patent is very difficult compared to copyrights. Concerned with obtaining patent
Tesco will require disclosing every information related to software and program.
Trade Secrets- Concerned with information technology and its application and utilisation in
organisation. Trade secrets are information that includes value and usefulness and this
information is very private for Tesco (Baller, Dutta and Lanvin, 2016). Information technology
has made it very easy and facilitated for organisations and outside parties to gather and access
information related to trade secrets. Trade secrets are also being protected through law of
protecting trade secrets.
Different types of networking technologies
Networking technologies can be defined as technology through which two or more
networks are connected. There are several types of networking technology and these mainly
differentiate on the basis of their extension and their capacity to connect networks. Different
types of networking technologies are-
Personal area network (PAN) - Personal area network is a computer network that allows
connection between computer devices that are close to a person. This network is used to establish
communication among personal devices for connecting digital network and internet (Kuo,
Mourad and Ahn, 2018). This network allows connecting to devices in limited area and can be
connected through wire and wireless devices. Compared to all other networks personal area
network is more secure and safe when is connected with mobile and computer devices. This

means that when a computer is connected with a printer it is a personal area network. Bluetooth
system and wireless devices are also example of this.
Local area network (LAN) - Local area network is a computer network is a group of peripheral
devices that are connected in a limited area. This area can be a small premises or building. LAN
is also a private network and is not controlled by any outside body and operates at relatively
higher speed. Using this network Tesco can connect all its computers and printers and other
information technology devices in its stores.
Wireless Local Area Network (WLAN) – This is another type of network that help Tesco to
link multiple devices using wireless communication within limited area for Tesco, it can be
office building or stores of Tesco (Sharma and et.al., 2020). This network type gives flexibility
to users to move around within a local coverage area which is connected to network.
Metropolitan area network (MAN) - This is network that consist of computer network across
an entire city, and small region. This network is larger than local area network. This type of
networking technology allows covering several miles however, it mainly depends on type of
configuration. This network mostly covers towns and cities in a range of 50 km range and in
order to connect cable of optical fibers are used. This networking technology provides excellent
support for extensive size network.
Wide area network (WAN) - Wide area network is another type of networking technology in
which and this network is spread across large geographical area. This network is mainly limited
to a enterprise and organisation. WAN also can be connected with more than one local area
network. Using this network Tesco can form its global integrated network. In this network
software files will be shared among all users. WAN is useful for Tesco in covering large
geographical area and this is why business offices situated at longer distance can easily
communicate with each other.
Enterprise Private Network (EPN) - These are network type in which organisations and
enterprises build their own networks and that is owned by organisations. Through this numerous
locations are connected in order to share different computer and digital resources and data
(Kafle, Fukushima and Harai, 2016). Tesco can create its own network and this will allow Tesco
to share data and resources at different locations where Tesco operates.

Importance of Internet and Intranet in a business
Internet can be defined as a global network of computers. Internet enables computers to
send one another small packet of digital data. This means that internet enables computers to
connect with each other and communicate with each other and also allows sharing data in digital
format (Horn, 2018). Which connection between wide range of computers around the world Is
result of mass of cables computer data centres routers repeaters satellite and Wi-Fi Towers that
allow users to share and collect Digital information from different computers around the world.
Importance on internet for business organisation is as follows-
Business activities- Tesco is a retail organisation and operates through offline and online
mediums. In order to operate through online Tesco requires internet. This is because e-commerce
activities as well as online business activities are possible through internet. Internet allows Tesco
to carry out its business activities and operate through different channels and attract customers
through different channels in order to increase its sales and market share.
Ability to communicate more easily- This is also possible through internet in which they can
effectively communicate within organisation (Infante-Moro and et.al., 2016). Internet provides
different channels and mediums like Email and other digital channels through which
communication becomes easy within and outside organisations.
Frequent information sharing- This is another importance of internet for a business. In this
organisations can frequently share information within and outside organisations. This involves
sharing of information with different stakeholders and with customers and other parties.
Intranet can be defined as a private network that is used by organisations. Intranet is
developed with the purpose of helping employees to communicate securely with each other
within Tesco. This is also used by Tesco to create and store information and help in collaboration
(Horn, 2018). Intranet is very important for sharing company updates, store files, connect
employees and collaborate with team and departments. Intranet is used to increase productivity
and employee engagement and to simply give employees a voice within organisation.
Importance of intranet within Tesco is as follows-
Improved communication within Tesco- This is concerned with ability of organisation in
which employees can communicate with each other and share data at a common platform. This is

very important in frequently changing environment of the business, this means that fast changes
in environment requires fast actions and this requires fast communication within organisation.
This will enhance organisational communication and will also improve coordination and
collaboration within teams and within organisation.
Employee engagement- Intranet is very important tool for employee engagement, this is
because intranet offers complete employee experience hub by creating one holistic environment
for activities like on-boarding, mentoring and on-the-job learning, feedback and recognition,
networking and collaboration, corporate communication and dialogue (Hautapaakkanen, 2020).
These activities play significant role in employee engagement and because intranet connects
people from across the company and different departments.
Employee Support- This is another importance of intranet through this, employees in
organisation as easily supported and also they can seek support from more than one person.
Along with designated organisational authorities they can also seek support from other
organisational members and peers in Tesco.
Stages of SDLC
SDLC is process of developing software or project. in this framework is provided that how to
develop a project in step by step manner. Moreover it helps in maintaining and designing of
particular software as well. Therefore it is method of software development. There are various
types of models which is used in it such as waterfall, spiral, big bang and many more. But it
depends on nature and type of software project that which type of model is suitable. There are
seven stages in this they are as follows
Stage 1 – Planning and requirement analysis – it is first Stage where the software requirements
are determined. Moreover planning is done to find out how project activities will be done.
Stage 2 defining requirement- This is stage where software requirement document is prepared. it
includes all designs of software. also hardware and other system need are included as well
(Infante-Moro and et.al., 2016).
Stage 3 design of product architect
Here the architect is design that is based on SRS document. for that more than one approach is
used and is based on DDS. therefore all stakeholders view it on several criteria such as risk

budget etc. then best quality design is selected. This define all modules of project and flow of
communication and data in it. also the internal design Details are included in DDS.
Stage 4 development of product-
This is crucial stage where the product is developed. in this programming is done of design. so
developer follow certain guidelines as well. the use of programming language depends on
developer and design. this is because there are various language available like Java, Python C
etc. It is very time consuming stage and also difficult one.
Stage 5 testing- it is a stage where the product developed this tested to find out defects and errors
in it. hence those errors are removed. it is necessary to do testing so that it is ensured that product
is as per standards mentioned in SRS document (Kuo, Mourad and Ahn, 2018).
Stage 6 implementation – as name depicts it is a stage in which the product is launch in the
market. The software must be properly tested so that no error occurs during implementation.
However, software is launched in small market to test it and collect feedback regarding it. So
accordingly changes are made into software. These are final changes that is done before
launching it at large scale.
Stage 7 maintenance and monitoring – it is last stage of SDLC in which product maintenance and
monitoring is done. This enables in ensuring that software efficiency is not impacted and it
works properly. Moreover, any change required in it needs to be reported.
So these are the stages of SDLC which is followed in developing software. It also helps in
maintaining quality of software as well. Each stage is dependent on each other. For example for
developing E Commerce app these all stages will be followed.
CONCLUSION
On the basis of above discussion, it can be concluded that information technology is very
important in organisations. There are several ways in which organisation can utilise information
technology and improve organisational performance and functioning. Roles that information
technology plays in success and failure of the organisations were also discussed in this report.
This was further followed by ethical and social issues associated with running business and
associating information technology within business and its functions. Later, report also discussed
about different types of networking technology and what differentiates these from each other.

These were discussed in what Tesco can use involves EPN, LAN, PAN and several other types
of networking technology. Later report also discussed about internet and intranet and what are
the reason which make it important for Tesco. Discussion outlines that in order to remain
competitive and become successful in present environment it is important organisations
effectively use information technology.

REFERENCES
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Balraj, N., 2016. A Study of Ethical and Social Issues in E-Commerce. Splint International
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