Impact of Information Technology on Business Operations

This report discusses the impact of Information Technology on business operations, with a focus on the British multinational retailer TESCO. It includes a literature review on different types of computer systems, ethical and social issues related to the use of technology, and the impact of the internet and intranet on businesses. The report also analyzes the role of IT in businesses and the types of computers used by TESCO.

Impact of Information
Technology on business
operations

ABSTRACT
Current era of technology has made essential for bushinesses to opt Information
Technology in its bushiness operations. Although the technology use needs large capital but its
benefits are unmatched. Bushinesses uses the Information Technology for storing, retrieving and
processing the large information in a short period of time. It is essential for understanding the
businesses to know what type of software it needs for optimizing the operations of business.
Various issues like social and ethical are involved with use of modern technology which are to
be identified for formation of efficient policies for dealing with them. Executives of business
have no need to rely on the arbitrary senses but they may act and take decisions based on
quantitative data for gaining new insights and competitive edge.

Table of Contents
INTRODUCTION...........................................................................................................................4
LITERATURE REVIEW ...............................................................................................................4
Classification of Computers........................................................................................................4
Ethical and Social issues of using technology ...........................................................................6
Impact of Internet and Intranet on business...............................................................................7
Role of IT in business.................................................................................................................8
ANALYSIS and DISCUSSIONS....................................................................................................9
Classification of computers and their types in TESCO.............................................................9
Ethical and social Practices in TESCO....................................................................................10
Impact of Internet and Intranet on TESCO...............................................................................11
Role of IT in TESCO................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Information Technology refers to the use of computer devices and systems for accessing
the information. IT is accountable for large part of work force, operations of business and
personal access to the information. IT is used by each one from businesses to education centres.
Information technology plays a crucial role in businesses and gives the foundation for present
workforce from communication to management of data and efficiency of operations. IT assists in
various functions of business and aid in improving the productivity. The company selected for
this report is TESCO which is a British multi-national general merchandise and groceries
retailer established in the year 1919 at Hackney, London, England, UK by Jack Cohen. Company
is headquartered in Welwyn Garden City , Hertfordshire, England, UK. The report discusses the
impact of Information Technology on operations of business. A literature review on different
types of computer systems will be done along with it the analysis on different issues related to
use of technology will be mentioned. In addition the explanation of various ways by which the
executives of business exploit the IT for benefit of the business will be stated.
LITERATURE REVIEW
According to (Liao, Shi and Yee, 2021) for being able to utilize the full potential of
business company's today rely on using the Information Technology. IT aids in reducing the
input costs while amplifying and diversifying the streams of revenue.
Classification of Computers
According to (Gani, Yoshi, and Rahman, 2022) computers are of many types and are
different from each other. Here are some of the types-
 Super computer- Supercomputer is very fast, powerful and expensive type of computer
for data processing. Their size and capacity of storage is huge and designed in a way for
processing large amount of data in less time with high productivity. They are specially
made for performing multi specific activities. Many CPUs work parallelly on these
computers and called multiprocessing or parallel processing. It is designed is very
complicated and may be heterogeneous, by combining computers of various architectures
passing all the existing computers and it makes it a ultra high performance
supercomputer(Habimana, 2018).

 Analog computer- It performs the activities by using ceaseless data. Analog computers
are basically used for measuring the physical units such as pressure, voltage, temperature,
electric current and convert them in numerical digits. It is used for measuring and
performing the arithmetic calculations of numbers, objects length, amount of voltage
which passes through the points in the electrical circuit. The computer gets all data by
some measurement. These computers are primarily used in field of science and
engineering. They are very slow and equipped for measuring the thing rather than
counting and checking.
 Digital computer- It represents the digital letters, numerical values and symbols. The
computer calculates number for data processing. These computers run on electrical signs
and binary method from 0 to 1 for calculation and also their speed is also very fast. It
performs the operations of arithmetic like occurrence, addition, multiplication,
subtraction and division. Most of the available computers in market are digital
computers. They are built for bringing the solutions of equations at almost precision but
very slow in comparison to analog computers.
 Hybrid computer- It is a combined complex computer built by using analog and digital
computers and united by one control system. The main purpose behind designing the
hybrid computers for providing functions and characteristics which can be found on
analog and digital both the devices. These computers are created for kind work unit
which offers best services of both the computers.

Ethical and Social issues of using technology
According to (Limani, Hajrizi and Stapleton, 2019) there are various social and ethical
issues related with use of technology mentioned below-
Ethical issues
 Use of personal information- Privacy and ethical information use collected by
businesses by their sites and various other sources are the primary concerns in today's
high tech world. Information entered by the individuals in using the different platforms of
social media like photos and personal info on Twitter, Facebook or details of online
purchasing. The data if not used in ethical manner will be destructive to the institution or
people(Patnaik, 2022).
 Lack of reliable information- Anyone on internet can assassinate the individuals
character as most of the people consume the information from internet. The fact
checking procedure which is adopted by media agencies is absent from the internet
information.
 No supervising and obligation lacking- Business organisation are inter dependent on
using the various software's, platforms and technologies making it very difficult for
fixing accountability on single firm. Various business firms are registered in different
areas of jurisdictions and operate in accordance to different laws. There is no
international policy for using the information technology which makes criminal acts and
breaches go unpunished.
Social issues
 Online aggression- Internet has made it possible for the individuals for being aggressive
while escaping any accountability. As the internet use has been rising day by day cases
related to cyber crimes are also rising. Anti social elements reach has been also
extended. They target any individual in the world and escape the accountability as their
identity is anonymous on internet.
 Communication Collapse- It is very intuitive in regard to information technology as the
reason for collapsing the communication between the society's people. The information
technology use keeps the people in touch with others in whole world. But people must

cross check before contacting some one which was the early tradition in society before
the innovation of information technology(Scharfman, 2020).
Impact of Internet and Intranet on business
Internet is the part of mainstream business as it has become the widely used tool for
offering access to public of communication, commerce, collaboration all across the world.
Technology of internet is used in closed networks for supporting the intranets internally in the
business organisation and extranets that link the firm with the partners(Tarkhanova,
Chizhevskaya and Baburina, 2018).
INTERNET- It has replaced various conventional forms of business communication by
using online sites or digital media for distributing and sharing the information . It has decreased
the costs,elimination of waste and enhanced consumer service in comparison to paper based
info. Email, text messages and social networks which gives high speed, highly accessible tools of
communication, speeding up of the processes which are time oriented. Collaboration on internet
enhances the productiveness, improves the decision making and decrease the cost of travelling.
Access of internet makes it easy for the firms for doing business anywhere in the globe without
any investing in any locals physical presence. By using the e commerce facilities, firms sell the
goods internationally by taking payments online and offers consumers the digital delivery of
goods and services.
INTRANET- It is a internal network which is accessed by only authorized users which
are employees. It uses the technology of internet and offers the same benefits of business.
Business organizations uses the intranets for distributing and sharing information, deploying the
applications of business, supporting collaboration and management of project, simplifying the
internal communications and streamlining processes of businesses. Intranet utilizes the
techniques of social networking for building the sense of community. Improvements in sharing
of knowledge and preservation which underpins the innovation and productivity in the delivery
of services. Firms believes that information quality and facilities of collaboration on intranet has
aid them in recruiting, assimilating and retaining the skilled individuals. All these factors
combination aids in building and maintaining the market leadership position(Titu and Stanciu,
2020) .

Role of IT in business
IT is the vital part of any firms business as it monitors and manages all the things related
to information technology and systems of communication. The IT department is the centre for
building and maintaining the networks of communication for small and large businesses. A good
IT department in any business firm makes them imperative in day to day businesses existence.
For sending a email to password changing and accessing the database each and everything is
included in IT. IT in businesses aids them for being more productive and efficient. Here are some
points explaining the significance of IT-
 Safeguarding the information and data- The end goal is for protecting the data from
getting compromise. IT department ensures the safeguarding the data against the loss,
destruction, misuse and changes. IT ensures that laws of data protection are abided by
safeguarding the vital info from loss, compromise and corruption(Veljković and et,al.,
2019).
 Troubleshooting of problems- Troubleshooting is known as the problem solving by
online mode. It can bes applied to various things like the repairing of failed digital
products and processes on the computers. When problem is solved a logical and
systematic search is done for source of the problem for solving it and make product and
process full operational.
 Management of cloud based solutions- It is a on demand service for every thing for
saving info like network, applications and resources accessed by internet or external
providers cloud, storage etc. Small and large businesses uses solution based on clouds
for keeping the control of online and offline offices and employees internationally.
 Quick and effective communication- Technology of IT aids the businesses in ease of
communication. They help them to connect with consumers instantly. Success of the
firm largely depends on understanding the needs of consumers, behaviours, trends of
buying and satisfaction scales. Quick and efficient communication is the best medium
when it comes to deal with the demand of consumers, difficulties and problems and IT
allows them for communicating with them.

ANALYSIS and DISCUSSIONS
Classification of computers and their types in TESCO
Tesco uses various types of computers in its business for effectively management of the
trading operations. Here are some of the computers used-
 Analog computer- Tesco uses it for performing the tasks by the use of data. Firm uses it
for hard calculations in business activities. Firm uses it for accounting purposes where the
accuracy matters but various installed softwares helps the firm in quickly and accurately
get the big picture of firms financial condition. Computers are used for this purpose and
various other task like invoice, data maintenance for creditors and debtors,payroll
calculating and tax filing forms and many more. With the use of analog computers
TESCO can focus on big picture of business finance.
 Hybrid computers- Use of these computers helps the business for performing various
things. Tesco uses it for research about the competition in markets, and what the
consumers want from business. By using contemporary data mining techniques Tesco
acquires the information about consumers and competition from all place like forums,
industry specific sites, social networks and search engines. They even help for storage
purposes as they occupy the fraction of space which was earlier covering large space. But
computers store the large amount of information as there are million of files which
company has to access any time(Zhang and et, al., 2021).
 Mini computers- By the use of these computers Tesco develops the professional site
completed with graphics and content of various forms of media like text, photos and
videos. They perform the search engine optimisation for the site so it looks prominently
in Google searches which attracts consumers traffic. They create marketing campaigns
which spans across each social media platform on internet. They create advertisements
for running on sites and social media by using software's all connected to internet. It even
helps for contacting with consumers and for maintaining the contact. It makes easy for
them in keeping in touch with consumers and employees.

Ethical and social Practices in TESCO
Ethical Practices
Personal Information issues
Tesco maintains the high standards for ethics in using the personal data and information
of individuals which it collects like transactions information. Firm invests very heavily in s
updating the hardware and software capabilities for removing any potential attack on the servers.
It ensures the data repository kept by the firm and is not misused by attackers.
Reliability
The firm uses many checks so that data and information shared on the platform is correct.
The goods sold by the company on its platform are properly verified and go by various checks
of quality for getting listed. Firm refrains from sharing data on different social media platforms
whose claim is not verified.
Responsible use
Tesco uses the world class 3rd party payment processing platform and use the leading
cyber security provider for making sure that responsibility culture is built between in its
employees. Firm has taken different measures for ensuring that operations scrutiny is done for
improving the process. If any breach of information takes place they have policy of quick
response to stake holders so they take suitable action for mitigating any crisis.
Social practices
 For tackling the online aggression the firm has opted a strict no tolerance policy against
the people who involve in bullying the character of any individuals with false
information. The employees are motivated for speaking up and reporting any incidences
of abuse and misbehaviour which they have suffered online.
 Firm uses unique ideas and employee involvement programs by which employees can
socialize in proper way. It allows employees for maintaining the close connection with
members of team and departments which aids in enhancing productiveness as conflict is

reduced. The structure of communication is not emphasised and informal communication
way is encouraged.
Impact of Internet and Intranet on TESCO
Tesco makes effective use of information technology at large scale in its business
operations. Business organisation uses artificial intelligence systems like chatbots combined
with human representative for providing solutions to the consumers. Further supply chain is
expedited by giving orders of goods for which the business enterprise anticipates demands by
using big data analytics. Firm uses some software's like LS nav and Qmetreix for handling the
company's day to day activities.
In terms of Internet Tesco uses the all aspects of its such as selling goods by online mode,
communication with the different stake holders. Firm uses the internet for keeping as watch on
logistics aspect of trading operations. Tesco uses the internet for circulating the emails within the
business organisation and for accessing by employees the different reports on network as its very
secure as all the ownership lies with the business enterprise itself. Further company puts the new
features on its websites by intranet servers,.
Role of IT in TESCO
Information systems are playing a great role in aiding Tesco for delivering profits. Tescos
executives uses essential IT systems tools for management, assessment and effectively
functioning the departments. The information provides the firm with the past, current and future
material. Tesco uses the IT systems for finding out the statements of month for expenses which
aids the executives in making decisions. System also finds out the hours employees have worked
in a time period. Executives use the IT systems for helping them to understand the consumers in
better way which helps them in analysis of price and schemes for loyalty. Since its establishment
in 1997, Tesco Clubcard has more than 700,000 members and received over $200 millions in
form of vouchers(Dolgui and Ivanov, 2022).
Tesco is using G.O.L.D for handling sales of goods, purchase deals, merchandise, stock
utilization and pricing policy, they have implemented and installed information systems in year

1998. Its used for management of stock flows in warehouses. IT system is aiding the executives
in warehouses for controlling the levels of stock, products quality, stock location and warehouse
function. Company is using Internet for giving consumers access to their website for buying
goods. This is the age of information systems and key to success(Chopra, Joshi and Saxena,
2021). Firm is achieving objectives, goals, competing with rivals and earning profits by smart IT
systems. So, information systems play crucial role in growth and development of TESCO.
CONCLUSION
The above report concludes that Information Technology entails the exploitation of
computer systems for making the work completion in more easy and in quick manner as it
includes the storage, retrieval and information transmission. Now a days businesses rely on using
softwares and computer systems in each and every aspect of business. IT is the paramount in
satisfying the stake holders in business. For being successful in business firms select what kind
of computer software they require for meeting the needs. They even have to know and
understand the ethical and social issues in forming the effective policies. Further the report
mentions the use if IT in in taking care of the consumers and role of IT in its business.

REFERENCES
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