Role of Information Technology in the Success of TESCO

Individual Report

INTRODUCTION...........................................................................................................................1
LITERATURE REVIEW................................................................................................................1
Role of Information Technology (IT) in success of TESCO.................................................1
Ethical and Social Issues regarding the use of technology in Retail Industry........................3
Differentiation between various networking technologies.....................................................5
Importance of Internet and Intranet in TESCO......................................................................6
Different stages of system development.................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

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INTRODUCTION
Information technology plays an important in today’s business environment, especially in
handling the complex retail operations. This branch of organisations undertakes overall main
operations like development of software, security of business transaction, transformation of
electronic information and more (Piotrowicz and Cuthbertson, 2014). The present assignment is
going to describe role of IT in either success or failure of retail sector. For this purpose, TESCO
is taken that operates business in same sector, in more than seven countries. It has over 6800
stores where, with the help of information technology, it becomes for respective company to
handle all major operations more easily. In this report, focus on ethical and social issues, with
different types of networking technologies is also given. Furthermore, importance of internet and
intranet, as well as different stage of system development life-cycle elaborates in brief.
LITERATURE REVIEW
Role of Information Technology (IT) in success of TESCO
With rapid development of technology, it becomes easy for organisations whether they deal
in retail, service, manufacture or any other industry, to operate business at different locations
easily (Nguyen, Newby and Macaulay, 2015). In retail sector, it has been analysed that IT plays a
crucial role in dealing with major operations like struggle with large amount of customer data,
maintaining transparency in system, track sales performance within each store etc. In context
with TESCO, it is a British multinational grocery, whose business is diversified into category of
retailing of clothes, books, furniture, software, financial services and more. Information
technology has completely revolutionized the way in which TESCO operates its business, in
terms of stock-control, supplier management and distribution worldwide (Milgrom and Gemmill,
2015). This technology has enabled respective company in developing more effective retailer-
manufacturer innovation as well as shortening the process of decision making by sharing
electronic information to each department.
According to the article given by Kim Jones (2017), it has been evaluated that IT has
played the most significant role in changing entire face of retail operations (Role of IT in the
retail industry – Adapting to trends. 2017). The success criteria of TESCO in this regard can be
measured by given aspects of information technology :-
1