Role of Information Technology in Business Success and Failure

This document discusses the role of information technology (IT) in the success and failure of businesses. It explores how IT impacts decision-making, marketing, customer support, and resource management. It also addresses the ethical and social issues related to running a business. The document includes a case study on Tesco plc and differentiates between types of networking technologies. Additionally, it highlights the importance of internet and intranet in business.

CFPBUS003 -
Introduction to
Information
Technology

Contents
INTRODUCTION...........................................................................................................................2
Literature Review.............................................................................................................................2
Analysis & Discussion.....................................................................................................................2
Role of Information Technology in business success and failure..........................................2
Ethical and social issues related with running business.........................................................4
Types of networking technologies with distinction................................................................5
Importance of internet & intranet in business........................................................................7
Different stages of system development life cycle.................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

1

INTRODUCTION
Information technology is referred as the study, designing & developing and
implementing of computer based information system specifically computer hardware and
software application that helps IT workers to ensure effective working of computers for human
resources. It is also considered as the application and services essential in business world for
effective functioning and success of firm. In today’s modern world it is more needed then before
and helps to enhance efficiency and productivity of a company that saves the time, cost and
efforts (Avgerou and Walsham, 2017).
Tesco plc is British multinational general merchandise and groceries retailer with its
headquartering in England. It was developed in 1919 and now 1010 years older firm serving in
several countries such as- UK, India, Ireland, Slovakia Hungary and Czech Republic etc. it is
known as third largest retailer in the world.
This report is based on role of IT in firm’s success and failures, ethical and social issues
associated with running business. Furthermore differentiation between types of networks and
importance of internet and intranet are discussed within organisational context. Moreover stages
of system development life cycle are explained within the report.
Literature Review
Analysis & Discussion
Role of Information Technology in business success and failure
Innovation and technological advancement is the best way to succeed business in today’s
world of digitalisation. It is the way of doing something unique and different that has prominent
impact over successful running of business and helps to take competitive advantages over
rivalries (Benckendorff, Xiang and Sheldon, 2019). Information technology makes business
easy, simple and convenient for instance digital marketing, online shopping, social networking
etc. in terms of Tesco plc role of digital technology in successful running of business are
considered as follows:
Role of IT in business success
2

Decision-making: Accuracy and speed may see as the heart of making effective
decisions for successful operation and running of business firms. In context of Tesco plc go
through comprehensive market research that enables senior management of firm to make right
decisions and implement them for successful functioning of firm. It can be done in several ways
such as-online surveys, forums, blogs and World Wide Web that helps to provide big data
information about market trends, customer expectation, risk factors and many others. Thus
digital technology plays significant role in effective and efficient decision-making of business.
Marketing & business growth: Marketing is one of the essential elements of any
business which enable management to find out target customers and then analyse their needs and
wants in order to fulfil their requirements. In terms of Tesco plc spends huge amount on
marketing research based on digitalisation. For instance search engine optimisation (SEO) Pay
per click (PPC), blogging, emails, SMS, MMS and social media sites. This makes marketing
effective and gives accurate results that has prominent role in future growth and sustainability of
firm.
Customer support and satisfaction: Customer satisfaction is the key of business success
based on their needs, requirements and expectations. Effective communication is the best tool to
understand customer’s demands and enable to make right choices of goods and services that has
prominent impact over business performance. When it comes to Tesco plc uses effective digital
channels for identifying the needs and wants of society. For instance webinar, emails, social
media, online newsletters etc. in order to satisfy target audiences. It also uses customer
relationship management system (CRM) so as to hold valuable data for knowing and
understanding behaviour and future needs of customers.
Resource management & globalisation: Digitalisation also plays significant role in
business success through effective management of resources. These resources may include
financial, tangible and human resources. In terms of respective firm information technology
plays prominent role in automating complex problems by introducing user friendly solutions.
Internet gives internet and cloud technology that enables engineers to develop and introduce
cloud based ERP (Enterprise Resource Planning) solutions. Thus IT helps to manage resources
effectively that leads business success (Bogatenkov, Palamarchuk and Bazhenov, 2018).
Role of IT in business failure
3

Poor implementation: It causes complex results that affecting organisation’s IT
environment due to interconnected and integrated nature. It affects organisation adversely and
other applications that depends on technological advancement. Thus in order to effectively deal
with poor implementation of technology respective company needs to pay attention on the
impacts and dependency of a system on other application at the time of implementing a specific
service for organisation.
Risk of fraud: Information technology has significant negative impact over business
organisations in terms of online schemes, fraud and risk of losing personal information and data
that creates huge risk for company. In terms of Tesco plc can use methods like master password
to protect online accounts and personal information of business accounts that has direct impact
over business failure (Hemrungrote, Jakkaew and Assawaboonmee, 2017).
Over utilization: Unnecessary utilisation of digital technology may also impact
maintenance of existing infrastructure and responding to support incidents to attend to each task
effectively. Lack of capacity could results in not performing effective technology which impacts
company’s performance. In terms of dealing it respective organisation may needs to specialise
skills to ensure IT environment constantly to operate at peak performance and optimum
efficiency.
Ethical and social issues related with running business
In business fundamental ethical issues includes promoting conduct based on integrity and
trust, but more complex issues empathetic decision making, accommodating diversity,
compliance and government that consistent with firm’s core values. Following are the ethical and
social issues that impact the business operation in continuous manner:
Harassment & discrimination in workplace: It comes under largest ethical issues that have
prominent impact over business and its owner. In terms of respective organisation needs to be
aware of laws and legislations based on anti-discrimination which is developed to protect and
secure employees from unjust treatment. Several types of discrimination and harassments
statutes that impact running business may include age, gender and religion. Race, equal pay,
accommodation and treatment for disable employees etc. thus in terms of respective organisation
should concentrate on these laws and legislations that ensures employees safety and protection at
workplace. This helps in successful running of business without any interceptions (Insana,
Hapsari and Eko, 2019).
4

Consumer protection: Another important ethical issue that affects organisational performance
consist as customer is main element of business success and protecting their interest is important
in order to succeed firm for long run. With respect to Tesco plc provide consumer protection law
within basic and fundament laws and policies of firm. It is very important to take care of the
interest of customer in order to gain long term relationships with customers and make them
capable of offering effective and efficient business services that provide better quality, durability,
reliability for customers. This helps in rising customer experience and helps to enhance market
shares of firm.
Health and safety at workplace: One of the major issue comes within successful running of
business organisations is associated with safety and security of human resources at workplace in
terms of their physical as well as mental health. This type of ethical & social issue consist of the
elements such as- hazard communication, required resistance & maximum weight numbers,
safety requirements for distribution modes, controlling hazard related to energy resources like
gas and oil etc. these are important to consider in fundamental laws of respective organisation so
as to ensure effective function and long term success of respective firm.
Technology and privacy practices: Development in technological security capabilities poses
privacy concern for clients and employees as well. This helps to monitor employee activity on
their pc and other devices provided by firm. In terms of ensuring employees surveillance that
doesn’t terns into ethical issues for business, employees and reviews should be constant and
remains conscious of actual outcomes of being monitored and useful way to develop a record of
job performances (Kaddoura, 2020).
Ethics in accounting practices: Ethics should also be considered in accounting and financial
practices of business firms. It is important for any organisation to maintain accurate bookkeeping
records that reflects as serious concern for firm especially in public traded companies and firms.
Thus in terms of respective organisation have to take care of ethics within accounting operation
and practices of firm as it leads to accurate position and performance of company.
Types of networking technologies with distinction
Network is simply defined as the term which is connected with two or more computers or
any other devices, linked for the purpose of sharing information and making communication
effective and successful so as to save the time, cost and attain accuracy within communication. It
5

can be wired or wireless through use of cables, radio waves, satellites, telephone lines etc. in
terms of Tesco plc differences between different types of networks are considered as follows:
LAN: It consists as the network stands for local area which is a group of network devices that
allows communication between devices that are connected with each other. The ownership is
controlled by private sector in LAN as compared to MAN. It covers smallest areas such as-
schools, colleges, hospitals etc.
MAN: On the other side it stands for metropolitan area networks. It is the type of network which
covers largest area than LAN for instance small towns, cities etc. it is connected with two or
more computers that occupy within the same and different cities. It is an expansive type of
network which is owned by organisations (Koch, 2018).
WAN: This type of network system stands for wide area network and covers larger areas than
both LAN & MAN like country. It is more expensive and should or might not be owned by any
business organisation. Satellite or PSTN medium used for this type of network.
Basis of comparison LAN MAN WAN
Area It stand for local areas
such as- college, hospital,
school etc.
While as compared to
LAN, MAN stand for
metropolitan area
networks like organisation,
small cities and towns.
On the other hand based
on contradiction of both
LAN & MAN, it covers
wide area of networks.
Ownership In terms of LAN,
ownership is private as
compared to other
networks (Lloyd, 2020).
As compared to LAN,
ownership of MAN can be
public or private.
While, in Wide area
network ownership might
not be owned by one
organisation or firm.
Transmission speed Transmission speed of
local area network is high.
While as compared to
LAN, transmission speed
of respective network is
average due to large
distance (Luftman,
Lyytinen and Zvi, 2017).
On the contrary of both
networks, it has low speed
of transmission.
Propagation delay In local area network
propagation delay is short
(Ptitsyna and et. al., 2019).
While, in MAN, there is
moderate propagation
delay as compared to
LAN.
On the side it has long
propagation delay as
compared to both LAN &
MAN.
Design & maintenance When it comes to local
area network design and
While in MAN
maintenance and design is
As compared to local and
metro area networks
6

maintenance is easy. difficult as compared to
LAN.
design as well as
maintenance of wide area
network is more difficult
(Noble, 2017).
Importance of internet & intranet in business
Internet: It refers as the worldwide system of computer networks that allows access and
exchange of information of other computers and enabling services array that hold entertainment,
communication and news. From entertainment to finance, learning & innovating internet covers
every area of human lives. With internet applications are endless, power a driverless car, Wi-Fi
connections make it easy for today’s business firms to run their business effectively (Rahmelina
and et. al., 2019).
Importance of internet:
Provide a superior experience to customer: Digital technology enables respective firm to attract,
retain and engage customers in effective manner. For instance online websites plays significant
role in creating awareness about goods and services through internet and online delivery of
products. Customer relationship management software enables users to keep accurate business
records about customer’s needs and wants. With the help of this respective company personalize
experience of customers and offer them better services.
Reaching audience throughout world: Internet also important for to reach global audience
through social networking, and rising use of e-commerce. It is very easy for respective firm to
reach global users through promoting its goods and services at broader platform so as to helps
them to access and acquire its offerings.
Improve team work: Another important role performed by internet in business firms. Web-based
technology improves team work that has prominent impact over organisational performance.
Digital technology free up employees time and enhance their performance and coordination
towards accomplishment of common objectives.
Enhance organisational productivity: Although internet performs significant role in providing
customers satisfaction through offering them durable, reliable and convenient goods, web-based
technologies also makes effective team work within firm. Thus, it leads to raise overall
productivity of firm that contributes towards profit maximisation of business.
7

Intranet: It is the minimal set of functions that are primarily aligned with helping employees
and human resources within organisation. It refers as the restricted version of internet and one
that doesn’t allow access to anyone outside its network.
Importance of intranet:
Increase productivity: Intranet plays significant role in rising organisational productivity through
enabling firm to produce effective goods and services with help of digital technology. Intranet
plays significant role in effective implementation of technology within manufacturing and
production process of firm. Thus it leads to raise performance and productivity of firm.
Encourages collaborations: Use of intranet helps to encourage business collaborations that has
prominent impact over firm’s performance and raise productivity in order to effective
functioning of business. Technology has immense role and contribution in building effective
relationships with business partners.
Reduces errors: Based on digital technology intranet performs significant role and importance in
reducing errors occurs within processes and activities related to manufacturing, producing and
delivering of goods and services that has prominent impact in enhancing company performance.
Different stages of system development life cycle
It is defined as the multistep process which is structured in methodical manner and used
to provide framework for technical of nontechnical activities in order to deliver a quality system
that meets and exceeds business expectations & managing decision-making progression of firm.
It is classically it consists in five stages but now increased to seven phases that helps to define
clear actions and helps to achieve specific objectives of firm (Rajaraman, 2018). Following are
the stages of system development life cycle process in order to understand activities and actions
that are indulge in every step:
Planning: The first step of system development cycle is helps to identify needs of new systems
within organisation in order to achieve strategic business objectives. It reflects as feasibility
study or plan initiatives to acquire the resources in order to build infrastructure to improve and
modify a service. As per this step business firm might be trying to match expectations of
customers, their employees and stakeholders. The main purpose of this phase is to find out scope
of problems and evaluate solutions.
System analysis & requirements: The next phase of system development cycle will work on
sources of problem or the need for a change required for accomplishments of best objectives that
8

has prominent impact over business position. Several tools and techniques such as- requirement
gathering, case, structure analysis etc. that plays vital role in determining what is the need of a
business as well as how to meet business expectations.
System design: It is related to detailed description about necessary features, specifications and
operations that will helps to satisfy functional requirements of proposed system. During this
phase organisations consider essential components, processing for system to achieve objectives.
Development: It consists as real work starts with a programmer, network engineer and database
developer is brought on to do the major work on projects. Development phase featured by
installation and change. Concentration on training reflects as huge benefits at this phase.
Integration & testing: Next step comes under the process of system development is related with
system integration and testing carried out by Quality Assurance (QA) professionals to determine
if the purpose of purpose design meets initial business objectives. Testing may includes repeated
specifically to check errors, bugs etc. it enables verification and validation that helps to ensure
successful completion of program (Rainer and et. al., 2020).
Implementation: The sixth phase and step of system development cycle involves real
installation of newly developed system. It puts projects into manufacturing through moving data
from older system and placing them in new system through direct cutover. It is an essential part
or phase of system development cycle.
Operation and maintenance: The last and seventh step of system development cycle is
involved maintenance and regular needed updates. It is the phase where end user can fine tune
with system in order to boost performance and new capabilities or to meet requirements of
additional requirements.
CONCLUSION
Although above discussion it is observed that there are several roles plays by information
technology within both success and failure of business. This is as important as surviving of firm.
Furthermore various ethical as well as social issues that impacts and influence running business
for long run. Various differences between types of networks are also considered within the
report. Importance of internet and intranet both are explained within organisational structure. In
last different stages of system development life cycle are explained in report. All are important in
terms of helping customers, effective implementation of resources etc.
9

REFERENCES
Books and Journals
Avgerou, C. and Walsham, G. eds., 2017. Information technology in context: Studies from the
perspective of developing countries: Studies from the perspective of developing countries.
Routledge.
Benckendorff, P.J., Xiang, Z. and Sheldon, P.J., 2019. Tourism information technology. Cabi.
Bogatenkov, S.A., Palamarchuk, L.N. and Bazhenov, R.I., 2018, October. Introduction of
Information Technologies: Training Methodology. In 2018 IV International Conference
on Information Technologies in Engineering Education (Inforino) (pp. 1-6). IEEE.
Hemrungrote, S., Jakkaew, P. and Assawaboonmee, S., 2017, March. Deployment of Google
Classroom to enhance SDL cognitive skills: A case study of introduction to information
technology course. In 2017 International Conference on Digital Arts, Media and
Technology (ICDAMT) (pp. 200-204). IEEE.
Insana, D., Hapsari, A. and Eko, M., 2019. Increasing Entrepreneurial Creativity Through the
Introduction of Information Technology Utilization. In The 1st Workshop on Multimedia
Education, Learning, Assessment and its Implementation in Game and Gamification in
conjunction with COMDEV 2018. European Alliance for Innovation (EAI).
Kaddoura, S., 2020. Developing a Green Curriculum for Introduction to Information Technology
Course. In Sustainable Development and Social Responsibility—Volume 2 (pp. 49-52).
Springer, Cham.
Koch, C., 2018. Introduction to Information Technology. Scientific e-Resources.
Lloyd, I., 2020. Information technology law. Oxford University Press.
Luftman, J., Lyytinen, K. and Zvi, T.B., 2017. Enhancing the measurement of information
technology (IT) business alignment and its influence on company performance. Journal
of Information Technology. 32(1). pp.26-46.
Noble, D.D., 2017. The classroom arsenal: Military research, information technology and public
education. Routledge.
Ptitsyna, V.S. and et. al., 2019, October. The introduction of information technology in business
processes as a method of quality improvement. In IOP Conference Series: Materials
Science and Engineering (Vol. 666, No. 1, p. 012059). IOP Publishing.
Rahmelina, L. and et. al., 2019. The effectiveness of the flipped classroom model using e-
learning media in introduction to information technology course. International Journal of
Emerging Technologies in Learning (iJET). 14(21). pp.148-162.
Rainer, R.K. and et. al., 2020. Introduction to information systems. John Wiley & Sons.
Rajaraman, V., 2018. Introduction to information Technology. PHI Learning Pvt. Ltd..
10