Importance of Information Technology in Business | Desklib

This article discusses the role of information technology in the success or failure of businesses, ethical and social issues in running businesses, different types of networking technologies, the importance of social media in business, and the stages of the system development life cycle. It focuses on the case of ASDA, a retail company, and how it utilizes IT in its operations.

Introduction to Information
Technology
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Table of Contents
INTRODUCTION...........................................................................................................................3
LITERATURE REVIEW ..............................................................................................................3
Identify the role of IT in the success or failure of chosen organisation.................................3
Find ethical and social issues that pertain to running businesses...........................................4
Identify and differentiate between different types of networking technologies:....................5
Discuss the importance of social media in business...............................................................7
List and explain the different stage of system development life cycle...................................7
ANALYSIS AND DISCUSSION...................................................................................................8
Potential benefits and drawbacks of chosen company investing in Information Technology8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Information technology can be defined as configuration, study, execution, advancement
and support system of PC based data framework. This specifically enclosed with different
elements like hardware and software, which helps the user to perform number of activities based
on the need. Under this report, the organisation that has been taken into consideration is ASDA
which is an auxiliary type business company (Ahson and Ilyas, 2017). 1949 was the year when
this ASDA was found by Peter and Fred Asquith. Along with this, report is also going to present
the information in relation to job of IT in disappointment and accomplishment of business, moral
and social issues which happen while running business. Away with this, report will also put light
on significance of web based life (social media), various phase of framework advancement life
cycle. Lastly, assessment will show the data referenced to disadvantage and advantages of
Information Technology.
LITERATURE REVIEW
Identify the role of IT in the success or failure of chosen organisation
In present time, it is said that Information Technology (IT), plays a crucial role for
different industry and mostly, it has impacted in both positive and negative manner on retail or
grocery store segment so as to lead their business activities in successful way just as it will help
them in dealing with their work appropriately with least wastage. In regard of ASDA they are
working in retail general store segment and at that place utilization of data innovation is high
since it help them in develop business. A portion of the principle roles of Information
Technology (IT) at ASDA working environment are given underneath:-
 Customer database management: When an organisation is taking into consideration of
IT and implementing it within the company, it consists of different elements like
customer base management and so on. Basically, this type of management system plays
an effective role within a company, which has helped firm in maintaining information of
consumers in a much more secured manner. In present context, if it is talked about ASDA
then it is needed for the organisation to keep on maintaining data related to their customer
base and the reason behind this is number of customers are huge in nature. Since, ASDA
comes in four big supermarket it is much needed by company to enhance the performance
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level through considering customer database management system (Alotaibi and Federico,
2017).
 Maintain transparency and tracking: Another role that came in front of IT department
within a company is that, it helps in tracking and developing transparency among all the
functions (Dursun and Dönmez, 2018). Basically, considering different software within
the production unit, it would lead ASDA to deliver the information to other departments
with the help of the software that has been taken into consideration. It will also lead to
track all the information, which is flowing within ASDA.
 Store Management: Over the years, it is said that Information Technology has helped
businesses to administer themselves and enhanced capacity of performing number of
tasks. Essentially by embracing and executing advance technology at ASDA their
administration just as representatives work get diminished and it also helped firm in
directing every single work appropriately. Alongside this, IT Department within ASDA
would also help organisation in identifying stock out time through alarms just as by
executing IT clients shopping experience additionally get improved.
 Forecasting demand and sales: In present time, it is said that considering proper
execution of advance Information Technology, firm could effectively estimate and figure
their interest. Essentially, ASDA utilize Agile information system, that has helped firm to
develop their interest by analysing past deals data or information. Through determining
the information, all supervisor ready to create procedures or activity plan appropriately
with the goal that they can satisfy need and necessity of their potential clients (Arpaci and
Baloğlu, 2016).
Above mentioned are said to be some of the crucial roles that IT department performs
within ASDA that has helped firm in reaching to new heights through maximising their profits
and productivity. It has also helped company in conducting daily operations in a rightful manner.
Find ethical and social issues that pertain to running businesses
In today's scenario every employee working in a company faces some or other ethical
dilemma. Whenever a person is caught in a conflicted situation where he needs to choose from
morale or principles of the society is said to be an ethical issue. It becomes very important to
keep a check on these issues because many a times it may lead to huge losses for businesses in
terms of employees turnover or loss of capital due to lawsuits. Social issues refer to the problems
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that has an effect over more than one person or a group of person and all them come together to
solve these issues. Corruption, Discrimination, Alcohol abuse etc. can be stated as some
examples of social issues. Some of the major ethical and social issues faced by ASDA are
mentioned below:
 Discrimination and Harassment: Discrimination is unfair treatment towards a person on
the basis of caste, gender, nationality, colour etc. Whereas harassment is offensive
behaviour which embarrasses or demeans an individual. Companies with advanced
information technology needs to make sure that the data of employee especially personal
data regarding mails and contact number cannot be misused by someone. Personal data
might also include the data related to their finances. ASDA makes sure that no such
incidents happens in their company (Halbouni, Obeid and Garbou, 2016).
 Compliance with Government Rules & Regulations: Government in every country have a
number of laws and rules which an organisation needs to comply with. Internet misuse,
norms related to data privacy, and also the norms related the emission of radio waves.
Radio waves are wavelengths with electromagnetic radiations. ASDA has its stores
across places and it is important to maintain connectivity between all these. ASDA made
sure that they do not use information technology that emits radio waves in excess
quantity.
 Safety and Security of Data of Customers: Along with the data or employees data of
customers is also very valuable to a business. There have been instances where data of
customers have been leaked which led to negative impact on goodwill as well as profits
of companies. Also companies need to face lawsuits if any such incident happens. ASDA
makes sure that the information which they have regarding their clients cannot be
misused by someone. Risk of losing the data to competitors is very high (Hesmondhalgh
and Meier, 2018). Competitors always look for ways to lure customers, and this personal
data will make it easy for them.
Identify and differentiate between different types of networking technologies:
Businesses and educational institutes use networking technologies to exchange data
between large and small information systems. There are professionals known as network
engineers or specialists who install and configure these networks. Internet and intranet are used
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in it in order to share files and data through emails or messages in networking. Various types of
networking technologies are: Personal Area Network (PAN): PAN is most basic network which consists of wireless
modem, generally a system or two , printers etc. It is usually used by a single person in a
building. In billing sections in ASDA each cashier has a PAN network of their own.
There network consists of a printer, a system and a barcode reader which helps them
accommodate the customer with their shopping (Khanam, Siddiqui and Talib, 2016). Wireless Local Area Network (WLAN): WLAN are networks most commonly used
across the world. It is similar to LAN simple, common and original. The only difference
between LAN and WLAN is that WLAN is wireless system. It helps connect a group of
computers within a same building or one can consider two to three premises maximum.
The data and resources can be shared within this network to accommodate easy flow of
work. ASDA uses WLAN in order to link various sections such as storage, billing etc. in
the same store. Systems at various billing counters and storage units are linked to each
other through this network which helps to analyse the status of stock available, so that the
reorder quantity and time can be determined easily.
 Enterprise Private Network (EPN): Enterprise Private Network is a network system
generated by organisations which have sites or businesses in more than one place. It can
also connect various departments such as factories, warehouses, stores etc. ASDA has a
number of stores across UK. It uses EPN network to connect its stores throughout UK.
The comparison between performances of various stores can be easily done through this
network. It also helps to analyse the preferences of various products according to their
location. While in use this networks makes it easy to keep a track of stock, profits,
expenses, etc. of all its stores in one place. Also ASDA has many schemes for its
customers in which it provides some benefits to their premium customers which can be
availed at any store they own. With help of EPN the data regarding such customers is
available at every ASDA store. SO the benefits can be availed by customers without any
difficulty (Perlin, 2016).
This is how ASDA uses different types of networking technologies effectively and
efficiently. It supports the functioning at ASDA. Along with company it also benefits the
managers, employees and customers saving their efforts and making their life easy.
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Discuss the importance of social media in business
In present time, social media can be defined as a crucial communicating channels that
helps individuals to get connected with others across the boundaries. Including this, it is said that
for a business company or in today's business world social media generally utilised to directly
stay connected with extended family and it will also provide career opportunities for individual.
Away with this, if it is talked about ASDA, organisation has taken into consideration of social
media as it consists of a number of importance and some of these are presented underneath:-
 Help in building brand awareness: If it is talked about ASDA, then one of the major
importance that came in front of Social media is that it helps the business company in
enhancing the brand awareness considering LinkedIn, Whatsapp, Facebook, Instagram
and so on, among potential customers within the market that consists of high market.
 Cost effective method: In present time, it is said that social media costs less than any
other marketing approaching and grabs a wide range of area (across the countries).
Within an advertisement, a company like ASDA could effectively generate information
in front of customers in relation to discount, post information, offers and other
information at social media they may become able to reach to high ratio of targeted
audiences in minimum amount (Tomassetti, 2016).
 Boost sales: Through social media a company able to attract more and more potential
customers or targeted audiences which help in increasing their sales as well as
profitability ratio. In respect of ASDA, by posting advertisement on social media they
able to engage customers at wide range and in easy way which help them in enhancing
their sales, profitability ratio and goodwill. This is so because when more customers
know about the company then it will directly increase sales of respective firm which help
in profit maximization.
List and explain the different stage of system development life cycle
The different stages within the System development life cycle that can be taken into
consideration by ASDA are mentioned underneath:
 System Planning – Primal stage of systems development life cycle, which may help
ASDA in managing and conducting the analysis along with the identifying the software
and hardware. Including this, ASDA would require to involve particular stages in
relation to employees, investors, stakeholders along with the managers as well.
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 System Analysis – In this stage, the requirements as well as expectations of a particular
task is specifically being mentioned. Along with this, if it is talked about the system that
ASDA is following then it holds a number of factors that are directly linked with
organisational, economical along with the technological aspects.
 System Design – This is being considered as the next stage which consists of a number
of systems, components, its security level, data type, architecture along with the system
as well.
 Implementation and Deployment – This step is considered to be the stage which stays
deployed, and it also gets installed as well, which is going to be utilised by consumers.
At this stage, it is may be possible that potential customers might require some of
information in relation to how the application can effectively be utilised and so on.
 System testing and Integration – This is the stage where, ASDA's IT department will
test the developed features within the software.
 System Maintenance – This stage involves maintenance of the system from time to time
in order to ensure that it does not become outdated. This includes replacing the old
components with the latest ones and that right standards are met.
ANALYSIS AND DISCUSSION
Potential benefits and drawbacks of chosen company investing in Information Technology
In present time, if it is talked about ASDA, then investing within Information Technology
may carry a range of benefits along with the drawbacks as well and some of these are given
underneath:-
Benefits of investing in IT (Information Technology)
 Improve communication: By investing in information technology a company able to
enhance their communication among the employees, customers and stakeholders.
Moreover it will also help them in understand need and demand of these peoples which
aid in effective decision making.
Drawback of investing in IT (Information Technology)
 Expensive and time consuming: Investing in information technology could cost high
but it would also take time as well when it comes to spending plan and firm profitability.
In regard of ASDA when they put resources into usage of IT then they have to change
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entire procedure just as they additionally need to give preparing to staff which is costly
just as time taking in nature (Brenner and et. al., 2016).
CONCLUSION
With the help of above mentioned report, it is being concluded that retail business could
effectively take into consideration of Information Technology in order to reduce the waste
materials of limited resources. Including this, considering social media which is one of the
crucial segment, it has helped companies in developing direct contact with customers which
reduced both ethical and social issues in specified time frame. Different network securities like
SAN, PAN, WLAN and so on which helps companies in connecting with it's subsidiaries, offices
and so on. Including this, with this help of system development life cycle which an organisation
may adopt in order to implement IT at workplace.
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REFERENCES
Books and Journals
Ahson, S. A. and Ilyas, M., 2017. RFID handbook: applications, technology, security, and
privacy. CRC press.
Alotaibi, Y. K. and Federico, F., 2017. The impact of health information technology on patient
safety. Saudi medical journal. 38(12). p.1173.
Arpaci, I. and Baloğlu, M., 2016. The impact of cultural collectivism on knowledge sharing
among information technology majoring undergraduates. Computers in Human
Behavior, 56, pp.65-71.
Dursun, Ö. Ö. and Dönmez, O., 2018. Predictors of cyberloafing among preservice information
technology teachers.
Halbouni, S. S., Obeid, N. and Garbou, A., 2016. Corporate governance and information
technology in fraud prevention and detection. Managerial Auditing Journal.
Hesmondhalgh, D. and Meier, L.M., 2018. What the digitalisation of music tells us about
capitalism, culture and the power of the information technology sector. Information,
Communication & Society. 21(11). pp.1555-1570.
Khanam, S., Siddiqui, J. and Talib, F., 2016. Role of information technology in total quality
management: a literature review. Khanam, S, Siddiqui, J. and Talib, F.(2013),“Role of
Information Technology in Total Quality Management: A Literature Review”,
International Journal of Advanced Research in Computer Engineering and
Technology. 2(8). pp.2433-2445.
Perlin, J.B., 2016. Health information technology interoperability and use for better care and
evidence. Jama, 316(16), pp.1667-1668.
Tomassetti, J., 2016. Does Uber redefine the firm: the postindustrial corporation and advanced
information technology. Hofstra Lab. & Emp. LJ, 34, p.1..
Brenner, S. K. and et. al., 2016. Effects of health information technology on patient outcomes: a
systematic review. Journal of the American Medical Informatics Association. 23(5).
pp.1016-1036.
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