(PDF) Impact of Information Technology

IMPACT INFORMATION
TECHNOLOGY THE BUSINESS
OPERATIONS OF MARKS AND
SPENCER
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Executive Summary or Abstract
The study will cover purpose and background of IT in Marks and
Spencer. Different networks used by the company. There are different
issues such social and ethical issues are discussed in detail. The
importance of internet and intranet is also discussed from business
view. The different stages of life cycle is also explained here in the study.
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TABLE OF CONTENTS
1. Introduction.......................................................................................................................................4
1.1 Purpose........................................................................................................................................4
1.2 Background..................................................................................................................................4
2. Literature Review...............................................................................................................................4
2.2 Information Technology role in a business which is retail in general...........................................4
2.3 Technology network and the different types of it (general)........................................................5
2.4 Social as well as ethical issues in the technology usage...............................................................5
2.5 Importance of intranet as well as intranet from business point of view (general)......................6
3. Analysis and Discussion.....................................................................................................................7
3.1 Information Technology role in the business which is selected...................................................7
3.1.1 Different Information Systems used in selected business.....................................................7
3.2 Networking technologies used in the business whichis selected.................................................8
3.3 Social as well as ethical issues in the business which is selected.................................................8
3.3 Importance of internet as well as intranet...................................................................................9
3.4 Different stages of System development life cycle......................................................................9
4. Conclusions......................................................................................................................................10
5.References........................................................................................................................................11
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1. Introduction
The process involves processing and also distribution of the data. Here in the study the role
of IT in making a business successful will be discussed in detail in which IT application to the business
will be entertained(Cui, Teo. and, 2015).
1.1 Purpose
The of the study is find out the importance of IT for a business and how important IT is for
the retail sector. How IT applications on the modern business in order to gain various advantages
like saving cost, saving effort and result in productivity these all are the purpose of study. The
process involves processing and also distribution of the data(Khuntia. and et.al, 2018).
1.2 Background
Marks and Spencer is a British multinational company which deals in retail industry. The
Headquarter of company is in Westminster London. Founders of the company is Michael Marks.
Headquarter is in London, UK of the Marks Spencer. Marks and Spencer was founded in the year
1884.
Information Technology is the study of using the systems generally the telecommunications
as well as computers. By using these the data is stored, retrieved and also information is sent to the
user(Laudon. and Laudon, 2016). IT includes development as well as maintenance of the soft
wares and networks via which the information is sent.
2. Literature Review
2.2 Information Technology role in a business which is retail in general.
Retail sector is the fast growing market in the world. The continuous growth has influence
attitude and marketing approach of customers towards the companies. Whereas the information
technology is accepted as essential tool in enhancing competitiveness in economy. As per the view
of Ayers and Odegaard (2017) with application of the IT in the retail helps in soving the complex
retail problems . The successful retail operation is termed as the key to obtain competitive
advantage in market environment. However it was argued by Pantano (2016) that the practice of
having application fo the IT in the business which is retail turns out to be costly. As with information
technology used by retailers to have automation in controlling services such as finance, pay roll and
the management accounts.
As Banerjee and Mishra (2017) stated information technology used in retail sector to have
planning for the business such as planning, budgeting and controlling the business. Data mining tools
and model decision-making is used for the sales forecasting and location preference. However, it
was argued by Ayers and Odegaard (2017) that as in the retail stores , the staff members usually
have less knowledge if handing the automation and other technical tools. The retail company has to
hire the technical qualified people to have correct implementation of tools which turn out to be
high on investment along with routine maintenance. The Bellini and et.al (2017) also stated that
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there is high risk of failure of IT projects in retail business due to lack of knowledge along with
training and development of employees.
2.3 Technology network and the different types of it (general)
There are different type of the technology networking majorly used in the business of retail
to have the strong relationship in expansion and competing the business. The major types of the
networking used technology in retail business and LAN,WAN,SAN and MAN which are Local Area
Network, Network of Wide Area, System Area Network as well as Metropolitan Network
respectively. According to Pantano (2016) the major advantage of using such networks in the retail
business will allows the various department to have in file sharing and remote access to another
department. Due to this the company use to have the hassle free transaction and storage of data for
multiple users. On the other hand it is argued by Ayers and Odegaard (2017)that there is necessity
of high security concerns to prevent theft of any confidential and classified data. The Odegaard
(2017) also added that due to inter connectivity of work stations , there is high risk of having
corruption in file due to easily spread of virus and malware.
According to Bellini and et.al (2017) the network technology is inexpensive setup which
reduces the hardware cost and other storage expenses in buying and installing of the same software
as any times or many users. However Banerjee and Mishra (2017) argued that due to lack of
robustness , the entire system and setup became useless. With the fails of the central linking servers
and the bridging device, the whole system stands still and some times turn out to be loss in data
which will be recurring cost to company.
2.4 Social as well as ethical issues in the technology usage
According to (Mao Zhang, Deng, 2016)The ethical and social issues faced by the IT are:
Trade secrets
As the information is shared among the workers via internet there is always chances of trade
secrets to be stolen. Generally in order to take competitive advantages companies employee hackers
to hack the information of the competition to get the business insiders. In order to protect the
company the hackers must hire ethical hackers.
Copyrights
Copyrights protect the data from being copied. But of there is always risk to the software to
be hacked and the hacker in order to gain personal advantage can misuse the software. In a way to
protect the rights of intellectual property the software the retail businesses must follow the laws
and report immediately to the authority in order to save the software from the hackers.
Social issues are:
Privacy
Privacy is always an issue in which the data of the user is always having the security issue. As
the data of the users is spread all over the internet there are higher chances that the data can be
leaked or stolen. It is very much advisable for the retail businesses to have a tight security in order to
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protect the data of the users which can be the employees, customers, as well as owner of the
business.
Computer crime
The emergency of the computer technologies have also given way to the emergency of
computer crimes. The access of the computer without authorizing is done by the hackers. It is
complete illegal and retail businesses can protect computer crime by user passwords and tight
security.
2.5 Importance of intranet as well as intranet from business point of view
(general)
According to (Pantano, 2016)Internet is a global network which provides various
communication as well as information facilities by using interconnected networks using protocols
which are standard.
Importance of the internet in the business are as follows:
Internet can be used for marketing
Internet is very useful for marketing products in which the designing of the product is done
considering the needs and wants of the customers. Using the internet businesses can target
particular audience and sell to them the required products. There is a lot of importance of IT for the
business in which the company can make their own website to highlight the products which the
company want to sell. This very beneficial for the businesses in selling the product and decrease the
cost of the product by using digital marketing.
Internet can be used for training and development
Internet plays a major role in designing and delivering various training and development
programs. There are various mediums or platforms by which the training programs can be delivered
such as video conferencing, Apps, Webinars and seminars. It helps businesses by saving a lot of time
and making employees of the company easily understand what the company wants make them
understand by innovative and visual effects.
Intranet is a communication network which is restricted and also known as private network
which is created by using software of world wide web.
Importance of intranet in business:
Helps in adapting customer and employee behaviour
There are different habits of different people due to different age groups. The intranet
collects the information of the consumers and send it to the employees and which helps the
business to engage in various platforms such as social media to reach the audience. It is very
beneficial to the companies because a lot of the time is saved and also a productive method.
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3. Analysis as well as Discussion
3.1 Information Technology role in the business which is selected
Information Technology is used to store, create as well as distribute and also manipulate
data. Information Technology role for the Marks and Spencer is as follows:
Communication
Marks and Spencer uses the IT services for Email chatting, phone calling, voice over internet.
IT is very useful for Marks and Spencer and helps the company by saving a lot of cost and lot of time
if compared to traditional communication.
Data Management
Data Management is also used by Marks and Spencer in which company manages the data
instead of using papers uses files and folders in the computer. It saves Mark and Spencer's lot of
time as well as efforts.
Quick Resutls
IT services used by Marks and Spencer brings quick results. For example IT services helps
organization in sending quick messages to the employees(Peng, J. and et.al., 2016). This helps the
firm by saving a lot of time and quick decision-making.
3.1.1 Different Information Systems used in selected business.
There are many types of the Information Systems used by the Marks and Spencer such as:
Management Information System (MIS) is collection of hardware and systems all working
together to process as well as store information which is useful for Marks and Spencer. MIS is very
useful for Marks and Spencer because it tracks sales data on daily basis in order to increase
productivity of employee and reduce cost.
Customer Relationship Management (CRM) is the software which is used for maintaining
and managing the relationship of the customers and also potential customers. For the Marks and
Spencer it is very useful because it helps in designing and managing customer relation and it
increases the profitability of the company by increasing sales of the company(Sabherwal. and
Jeyaraj, 2015).
Inventory Management System(IMS) is used for management of the inventory. IMS helps
Marks and Spencer by letting know the FIFO if the taxes rate is higher and LIFO method when the tax
rate is low. It will increase the profit of the company.
3.2 Networking technologies used in the business whichis selected.
Networking technologies helps in networking with the other people by a network of
computer as well as other electronic devices. Here the company has used the MAN and WAN.
MAN (Metropolitan area Network) which connects the computer as well as devices over
geographical area. Marks and Spencer has chosen this network because the network is less
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expensive, having high speed, High security and communication using MAN is very easy. All these
factors help the company in saving lot of time and money and also increases the productivity.
WAN (Wide Area Network) is network which extends over the area which is large, may be
world. Marks and Spencer has chosen this network because the business is spreader all over the
world and helps in making centralized data, Global coverage, etc(Cui, Teo. and, 2015). All this
helps the company to save cost and increase the performance of the company by increasing the
profitability.
3.3 Social as well as ethical issues in the business which is selected.
Ethical issue faced by Marks and Spencer are:
Data gathering, this issue involves from where the data is gathered, monitored and used.
Online sources can be right as well as devastating. This issue can affect Marks and Spencer by
making wrong decision by using manipulated data. So the organization must use data from the
reliable sources in order to achieve effective and efficient result.
Security Liability, this issue can affect Marks and Spencer by hacker. The hacker hacks the
information of the organization by breaking the security. This problem can be solved by hiring sound
ethical hacker by paying them well.
Social issues faced by Marks and Spencer:
Privacy issue, this issue can affect Marks and Spencer by leaking the secret information of
the employees, customers and clients. This issue can be resolved by installing software which
ensures security of the data. Example Avast, Quick Heal anti viruses(Khuntia. and et.al, 2018).
Catfishing Issue, this is the issue in which any person makes fake ID in the name of Marks
and Spencer and misused it by spreading wrong information. This problem can be solved by Marks
and Spencer by using logo and secret symbol at the site of the company.
3.3 Importance of internet as well as intranet.
Importance of internet in Mark and Spencer:
Ease in communication, internet makes easy communication by making viable
communication. There are various sources such as cell phones, social networking, email and also
faxes. All these sources makes easy communication which helps Marks and Spencer by saving a lot of
time and also distance advantage.
Making Marketing, internet makes marketing much easy and much effective for Marks and
Spencer. Marks and Spencer can target specific customer in order to drive specific product. This
helps Marks and Spencer to sell more products and make more profits(Laudon. and Laudon,
2016).
Importance of intranet in Mark and Spencer:
Employee engagement, intranet helps Marks and Spencer to maintain relationship between
the employees and the employer by sending out employees motivation survey. This helps Marks and
Spencer by increasing the productivity.
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3.4 Different stages of System development life cycle.
System development life cycle involves a process of planning, testing as well as deploying an
information system.
There are 7 stages of system development of the life cycle.
Planning
In planning what are the new information system as well as determining what are the
sources to develop them.
Analysis
In this stage the performance of software is analysed then notes are made for the
requirements(Luftman, Lyytinen. and Zvi, 2017).
Design
Here the blue print of the software which is required is made.
Development and testing
Hardware is first purchased and then installed and then coding of the software is done and
then software is loaded on the platform for testing.
Implementation
Here with the used of source code design is implemented.
Documentation
In this stage documentation of whatever is done by recording them on the computer.
Maintenance
This is the last stage in which the queries which are still remaining are resolved after
installing the software(Sabherwal. and Jeyaraj, 2015).
4. Conclusions
As per the study it is concluded that IT role in the Marks and Spencer is immense. There are
various issues such as hacking, privacy issues etc. and such issues can be solved by taking proper
actions by Marks and Spencer. The organization must take care of the software and always make the
software updates and free from bugs.
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5.References
Ayers, J.B. and Odegaard, M.A., 2017. Retail supply chain management. CRC Press.
Banerjee, M. and Mishra, M., 2017. Retail supply chain management practices in India: A
business intelligence perspective. Journal of Retailing and Consumer Services.
34.pp.248-259.
Bellini, E. and et.al , 2017. Innovation Strategies in Retail Services: Solutions, Experiences,
Meanings.
Côrte-Real, N., Oliveira, T. and Ruivo, P., 2017. Assessing business value of Big Data
Analytics in European firms. Journal of Business Research. 70. pp.379-390.
Cui, T., Ye, H.J., Teo, H.H. and Li, J., 2015. Information technology and open innovation: A
strategic alignment perspective. Information & Management. 52(3). pp.348-358.
Khuntia, J. and et.al., 2018. Information technology and sustainability: Evidence from an
emerging economy. Production and Operations Management. 27(4). pp.756-773.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education
India.
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.
Mao H, Liu S, Zhang J, Deng Z., 2016. Information technology resource, knowledge
management capability, and competitive advantage: The moderating role of resource
commitment. International Journal of Information Management. 2016 Dec
1;36(6):1062-74.
Pantano, E., 2016. Benefits and risks associated with time choice of innovating in retail
settings. International Journal of Retail & Distribution Management.44(1) .pp.58-70.
Peng, J., Quan, J., Zhang, G. and Dubinsky, A.J., 2016. Mediation effect of business process
and supply chain management capabilities on the impact of IT on firm performance:
Evidence from Chinese firms. International journal of information management. 36(1).
pp.89-96.
Sabherwal, R. and Jeyaraj, A., 2015. Information Technology Impacts on Firm Performance:
An Extension of Kohli and Devaraj (2003). MIS quarterly. 39(4). pp.809-836.
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