Impact of Information Technology on business operations

This report discusses the role of information technology, types of networking technology, ethical and social issues, and the importance of internet and intranet in business operations. It focuses on a retail business, Marks & Spencer, and covers topics such as sales growth, decision making, networking technologies, ethical concerns, and the use of internet and intranet.

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Impact of Information Technology on
business operations
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Executive Summary or Abstract
As information technology is an essential aspect for the all businesses because in the
modern world various technologies and systems are introduced over several period of time
which makes organisational working easier and accurate. In this report, study about the role
of information technology, types of networking technology, ethical and social issues as well
as importance of internet and intranet are discussed in detail. Along with this discussed about
the analysis of stages of system development life cycle as well as types of information system
along with the analysis of all the above topics.
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Table of Contents
1.Introduction........................................................................................................................................4
2. Literature Review ..............................................................................................................................4
2.2 Information Technology and its role in retail business in general................................................4
2.3 Networking Technology, different types in general.....................................................................4
2.4 Ethics and Social Issues of using technology in general...............................................................5
2.5 The importance of Intranet and Internet in business in general..................................................6
3. Analysis and Discussion.....................................................................................................................6
3.1 Role of Information Technology in the selected business............................................................6
3.1.1 Types of different Information Systems that are used in selected business like Management
Information System, Decision Support Systems etc...........................................................................7
3.2 Types of Networking Technologies that used in the selected business ......................................7
3.3 Ethics and social issues in selected business................................................................................7
3.3 The importance of Intranet and Internet in the selected business..............................................7
3.4 List and explain the different stage of system development life cycle ........................................7
4. Conclusions........................................................................................................................................8
5.References .........................................................................................................................................9
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1.Introduction
The information technology defined as a process of development and use of computer
systems, software as well as networks that is used in the data processing & distribution. In
other word, it can be said that IT enables processing, storage and flows of informations
within a business organisation. The present assignment is based on the utilisation of
technologies in a retail business such as Marks & Spencer which is a multinational retailer
that deals in different segments like clothing, home, food, personal care products etc. which
was established in 1884. This report is going to be cover role of IT, types of networking
technologies, ethical and social concerns, uses of internet and intranet as well as life cycle of
system development.
2. Literature Review
2.2 Information Technology and its role in retail business in general
Information technology can be defined as a utilisation of computer systems and networks for
the purpose of implementing technical procedures within an organisation in an effective way
(Akcigit, 2016). It plays signifiant role in the conduction of processes like data storage, technical
transactions, data management and so on. Some of the major role of IT in the context of Marks &
Spencer are considered as follows: Rise sales: With the help and use of IT in retail businesses, the selling of goods and services
are increase along with the customer satisfaction and effectively fulfilment of desires. With
the use of IT, Marks & Spencer can able to offer better quality and services in order to
improve their sales. Through which the customer satisfaction and loyalty can be enhanced and
they sustain for a long period of time. Help in decision making: All businesses has to take effective decisions for getting high
accountability and system efficiency with the speed. In the modern world, organisation have
to formulate appropriate decisions by choosing the unique path for maintaining orders of
companies (Tchamyou, 2019). As M&S use web and other online modes for availing
information as well as ensures their accuracy along with the validity.
 Provides growth and success: Every organisation depends upon the marketing strategies
which are used by a company in order to get huge success. For this a company Marks &
Spencer decided to use latest tools and techniques which are prevailing in the retail market.
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Mainly, the company emphasised on promotional and advertisement strategies of marketing
their products and services as it helps in creating better awareness to the customers. By using
information technology for communicating with different kind of customers regarding their
offerings this will directly provide huge market growth and success along with the
profitability.
2.3 Networking Technology, different types in general
Network technology means the use of integrated systems that are connected via wireless
connections, optic cable and satellite in order to communicate information and data across the world.
Numerous networks are to be used by the businesses across the world according to the requirements
(Alreemy, 2016). As Marks & Spencer can use these networks in order to communicate with the
customers across the world. Basically, IT departments of retail businesses use wireless networks in
order to manage data. Some of the networks are considered as follows:
Local Area Network: This kind of networks are basically operates in geographical areas of
around 2 miles that are closely to each other in offices or buildings. The speed of LAN is recognised
to be high as hardly few systems are connected with each other as approx. speed is 1000, 100, 10
MBPS. For this, the wireless, Fiber optic cable, twisted pair etc. are used.
Metropolitan Area Network: This type of network is larger than the LAN and smaller than
WAN as it consists of big networks which tends to be set as a connection between many businesses.
The area of this connection is acknowledged to be of 100 miles to 200 km. And the speed of this
connection is approx. 100 MBPS. Fiber optic cable and twisted pair are considered as technologies
(Tavani, 2016).
Wide Area Network: It is the large network area where two or more LAN network are
connected with each other to cover a large area on geographical basis. Networks connectivity is free
range however it is confined within the domain of 1000 km. and for the extension of connectivity
range some devices are used. Whereas, the speed of this network is 1.5 MBPS and this connectivity is
installed local geographical location or use some technologies like wireless, coaxial cable and twisted
pair etc.
Wireless Local Area Network: It is a wireless LAN or computer system that connects two or
more systems by using wireless communication in order to form a local are networks in a limited area.
These kind of network do not need any physical cable for connectivity.
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2.4 Ethics and Social Issues of using technology in general
IT is the core systems of all businesses which helps in enabling smooth flow of information
(Beynon-Davies, 2016). While using information technology in Marks & Spencer the company may
face several ethical and social issues so that they need to be ensure that they don't indulge any issues.
Ethical issues: These are related to that kind of challenges that deviate the morality of
businesses and this type of issues tend to facilitate a clear view of correct and incorrect by analysing
all the available alternates. With the use of IT in M&S, some of the ethical issues are confined as
follows: Acting against public interest: It is mainly related to the loss of data as this kind of issue are
ethical in manner that prohibits the use of information technology and systems for exploiting
harms to the people,owner, staff, organisation and so on. This kind of unethical problems in
M&S may belongs to unethical changes of program that results in the wastage of resources
and increase expenses (Chae, 2018).
 Breach of privacy: While M&S use IT applications it is necessary for the company's
management to ensures that large range of data exchange does not result in breaching of
privacy. As there is a high risk of data or information violation so it is required for the top
level management to use appropriate measures so that they properly ensures confidentiality of
information at all time.
Social issues: These are termed as a course of action that interpreted by a person or business
and it adversely impacts on the society. In regards of M&S, such issues are discussed as follows: Hacking: It means unauthorised access to the network as it termed as a social challenge
because in which third party may enter into the personal systems in order to get their personal
data (Daulatkar, 2016). In order to handle this issue, M&S appoints a team of software
engineers and technical personnels who have depth knowledge of several ways in which
hacking can be prevented.
 Identity Theft: it is related to the asking for personal details for example, a person may send
message to the customers that they have won lottery and ask for their personal details in a
promise of paying amount of money. Through which customers get fooled and give
confidential personal and financial information with which intruder can transact from their
accounts. So M&S need to control and manage some measures strictly in order to prevent
them.
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2.5 The importance of Intranet and Internet in business in general
Internet is a open or public space networks that is used by a person at anywhere in order to
collect information, communication, e-commerce activities, financial transactions as well as for
educational purpose (Meeker, 2018).
Importance of internet: Research: Through the internet, M&S can able to gather data or information of their rivals
offerings and strategies which is accurate in terms and that are used through in analysis and
detail surveys.
 Communication: Internet is used by the Marks & Spencer in order to execute face-to-face
communication with their customer's by a medium of video and audio conferencing. This will
also help in arranging meetings, video calls etc. with their workers which pertains different
outlets across the world.
Intranet means a private or local area connectivity that can be utilised by the companies in
order to link gateways outside the companies (Nieles, 2017). It is mainly used for online data
storage, resource sharing, training session, internal communication etc.
Importance of Intranet: Resource sharing: M&S keep their information safe as well as secure and conduct several
events or manage training sessions for better employment. This will help employees to
enhance their skills and knowledge.
 Better internal communication: For this, M&S considers intranet facility for hubs, forwarding
mails to each others (Oak, 2016).
3. Analysis and Discussion
3.1 Role of Information Technology in the selected business
Information technology plays an important role in businesses with the help of this all
information is being sorted and processing for the further transaction by using networking systems.
With respect of M&S, IT helps in getting more accuracy in their works and increase sales by making
effective decisions.
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3.1.1 Types of different Information Systems that are used in selected business like
Management Information System, Decision Support Systems etc.
Several information system are used by the M&S in order to manage organisational
information such as MIS and Decision support system. As management information system helps in
managing the personal information of people and decision support system helps in making appropriate
decisions (Paul, 2018).
3.2 Types of Networking Technologies that used in the selected business
There are several types of networking technologies that is essential for the IT department of
Marks & Spencer in order to facilitate better data transmission and reliability which can also be
managed and shares central devices too. These are required for the different kind of networks where
in the M&S wireless LAN can be used for the connectivity.
3.3 Ethics and social issues in selected business
Identification of issues are needed to know by the company while undertaking information
technology system in an organisation for managing and controlling the flow of information. These
issues need to be handled effectively in order to get optimum outcomes (Roshan, 2016).
3.3 The importance of Intranet and Internet in the selected business
Both concepts are important for businesses as intranet is used for internal connectivity and
internet is used for external communication. Both are needed by M&S in order to inters=act with their
customers and employees.
3.4 List and explain the different stage of system development life cycle
This is a process in which work is divided into the different groups so that it can be done in a
systematic manner. It includes many stages such as: Planning: It is related to the forecasting so the R&D department will require to ascertain all
issues that are being faced by company. Analysis: For this, top level manageable of business is responsible for collecting all
informations in order to analysed them systematically. This will help in knowing the
requirements of business for improvement in level of performance (Soomro, 2016).
 System design: In this, design some systems to check whether the business requirements are
meet or not and it includes database, applications, network etc. Implementation: In this, IT department is responsible to plan coding into source codes which
helps in determining errors.
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 Support: It helps in facilitating support which shows the need of changes that can be needed
in certain period of time.
4. Conclusions
It can be summarised from the above discussion that IT plays a big role in the business
success and failure as well as it is helpful in performing various activities like data management,
communication and so on. It has been viewed that data retrieval can be dine by using internet while
information is required to be pertained. Along with this, it analysed that business possess requisites
resources to make software such as Sage 50, SQL etc. for the retention of organisational information.
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5.References
Books & Journals
Akcigit, U. and Liu, Q., 2016. The role of information in innovation and competition. Journal
of the European Economic Association.(4). pp.828-870.
Alreemy, Z. and et. al., 2016. Critical success factors (CSFs) for information technology
governance (ITG). International Journal of Information Management.(6). pp.907-
916.
Beynon-Davies, P., 2016. Information Systems Development: an introduction to information
systems engineering. Macmillan International Higher Education.
Chae, H.C., Koh, C.E. and Park, K.O., 2018. Information technology capability and firm
performance: Role of industry. Information & Management. (5). pp.525-546.
Daulatkar, S. and Sangle, P.S., 2016. Proposed re-conceptualization of IT business value
benefits. Business Process Management Journal.
Meeker, M. and Wu, L., 2018. Internet trends 2018.
Nieles, M., Dempsey, K. and Pillitteri, V., 2017. An introduction to information security (No.
NIST Special Publication (SP) 800-12 Rev. 1 (Draft)). National Institute of
Standards and Technology.
Oak, V.J. and Laghate, K., 2016. Analysis of project management issues in information
technology industry: an overview of literature. International Journal of System
Assurance Engineering and Management.(4). pp.418-426.
Paul, P. and Aithal, P.S., 2018. Cyber Crime: Challenges, Issues, Recommendation and
Suggestion in Indian Context. International Journal of Advanced Trends in
Engineering and Technology.(IJATET). (1). pp.59-62.
Roshan, D.R. and Rao, K.S., 2016. Intranet Design Strategies. International Journal of
Electrical & Computer Engineering (2088-8708).(3).
Soomro, Z.A., Shah, M.H. and Ahmed, J., 2016. Information security management needs
more holistic approach: A literature review. International Journal of Information
Management. (2). pp.215-225.
Tavani, H.T., 2016. Ethics and technology. Wiley.
Tchamyou, V.S., 2019. The role of information sharing in modulating the effect of financial
access on inequality. Journal of African Business. (3). pp.317-338.
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