Role of Information Technology in Retail Sector

This report discusses the role of information technology in the retail sector, focusing on Tesco. It covers the importance of IT in managing data, flow of information, and productivity. It also explores different networking technologies used by Tesco, ethical and social issues in IT, and the significance of intranet and internet in business. The report concludes with an analysis of the stages of system development life cycle (SDLC).

Individual Report IT

Table of Contents
INTRODUCTION...........................................................................................................................................3
2. Literature Review....................................................................................................................................3
2.2. IT and its role within retail sector.....................................................................................................3
2.3 Networking Technologies..................................................................................................................4
2.4 Ethics and Social Issues of making use of technology.......................................................................5
2.5 Significance of Intranet as well as Internet in business......................................................................6
3. Analysis and Discussion...........................................................................................................................7
3.1 Role of Information Technology in Tesco.........................................................................................7
3.1.1 Different Information Systems.......................................................................................................7
3.2 Types of Networking Technologies used by Tesco...........................................................................7
3.3 Ethical and social issues in Tesco......................................................................................................8
3.3 Consequence of Intranet along with Internet in Tesco.......................................................................8
3.4 Explicate unlike stages of system development life cycle (SDLC)....................................................8
Conclusion.................................................................................................................................................11
References.................................................................................................................................................12

INTRODUCTION
The maintenance, development along with utilization of computer systems, network and
software is referred to as information technology. This implies processing as well as distribution
of data. It comprises of telecommunication, hardware, software and transmission of information
through which effectual interaction can be carried out (Eason, 2014). To understand the concept
of IT, Tesco is taken into consideration which renders its services in retail sector and was
brought in 1919. This report comprises of role of IT in business, different network technologies
along with social and ethical issues. Furthermore, significance of internet and internet will be
analyzed. Apart from this, it also comprises of distinct information systems and stages of SDLC.
2. Literature Review
2.2. IT and its role within retail sector
Information technology is defined as making use of systems for storage, retrieval,
transmission along with manipulation of data. It has critical and inherent role in each industry
whether its retail, fashion, aviation or any other sector. With respect to retail, role played by
information technology is illustrated below:
 Data management: While rendering services at wider perspectives, it becomes
important for firm to manage their information by which it becomes easy to render their
services (Kiran, Oudshoorn and Verbeek, 2015). For an instance, details of inventory and
warehouse have to be maintained so that what is required can be identified quickly and
resources are available before they go out of stock. Thus, database, servers, internal or
external hard drives can be used by retail industry for handling data.
 Flow of information: This is the key resource which involves internal, external,
objective and subjective information. Subjective comprises of illustrating which is not
known on the other hand objective implies what is being known. Internal information
illustrate environment within the firm whereas external involves outside surroundings
(Law, Buhalis and Cobanoglu, 2014). By making use of IT retail sector can have
centralised data centre for retrieval of data. When retailers render their services at global
level then this aspect is foremost as travelling or sending important documents via courier
do not seem feasible.

 Productivity: To have amplified profitability, it is necessary that retail businesses make
use of appropriate applications like work processing, relational database technologies and
various other software’s through which feedback from customers can be taken. Through
this overall productivity of firm can be enhanced.
2.3 Networking Technologies
Block of two or more devices via which interaction takes place is referred to as network.
Basically, it involves different systems that are interlinked with one other by making use of
wireless or physical connections (Marchewka, 2014). Retail businesses can utilize these to
ensure that while interacting with other departments of organization they have eased to do so.
Like they can have instant messaging apps, chat rooms or an email provides a simplified ways
for sharing data. Moreover, resources can also be shared with other which will aid them within
quick decision making and unnecessary cost can also be eradicated (like usage of printers). Wide
range of networking technologies is there, Virtual Private Network (VPN), PAN (Personal Area
Network), MAN (Metropolitan Area Network), LAN (Local Area Network) and WAN (Wide
Area Network). Usually, LAN, MAN and MAN are being utilized, they are elaborated below:
Local Area Network (LAN): It is liable for connecting various devices by which
information, programs and tools will be shared between various workstations and personal
computers. Associations are being developed by making use of single or stack switches along
with addressing schemes through usage of TCP/IP protocols (Mehlman and Li, 2014). When few
computers will be connected then high transmission speed can be acquired. When retailer needs
to interact within a building then it is an opt technology.
Metropolitan Area Network (MAN): This is responsible for linking computers as well
as workstations through which larger areas can be covered in comparison to local area network.
They cover entire city as well as connects distinct LAN networks within a identical network by
making use of identical (single) cable. For this retailers, have diverse options like fiber optical
cable, coaxial, twisted pair and many others (Neuhofer, Buhalis and Ladkin, 2014). This can be
utilized by retailers to have communication with their other outlets present within the same city.
Wide Area Network (WAN): This implies geographical area which involves either
same country or even entire world. Connections are being developed by making use of radio

waves, telephone lines and satellites. This furnishes high speed but it is very costly. Retailers can
use them to develop an impelling connection among their outlets if they are rendering their
services globally.
2.4 Ethics and Social Issues of making use of technology.
Ethical issues: The description for making choices in context of what is right or wrong
for identifying choices is defined as ethics. In case of ethical issues in IT, success of retailers
depends on mobility of goods and services with high speed as well as accuracy (Nieves,
Quintana and Osorio, 2014). Issues are mentioned below:
 Cyber bullying: This implies harassment by making use of electronic means. This
involves pejorative labels, sexual remarks and various others. Such kind of ethical issues
will hamper reputation of retailers but due to strong image within market it may not
create that much impact but appropriate measures are necessary.
 Internet privacy: Each move which is being made by individuals can be tracked. Thus,
retailers have to ensure that any such sort of information is not shared and uploaded on
internet (Pardo and Siemens, 2014). Furthermore, firewall and anti-virus will prevent
intruders to get into their systems.
Social issues: This denotes problems which impacts huge number of individuals in
society. Few of them are illustrated below:
 Identity Theft: Fraud are evolving as technology and usage of internet is increasing.
Here, personal details of person are being used by third person for doing malicious
activities. Like, an email can be sent on behalf of Tesco to a person and they might take it
as official mail.
 Hacking: The unauthorized access to a network or computer. Like if intruder gets into
system of firm to have their confidential information. For this, retailers need to ensure
that they have strong system and employees do not click on unauthorized links (Sampson
and Makela, 2014).

2.5 Significance of Intranet as well as Internet in business.
Internet: The network which can be accessed by individuals at anytime and from
anywhere for having interaction, carryong out research, education, financial transactions or
online shopping is referred to as internet (Santoro, 2015). This is a faster network that is liable
for saving a lot of time.
Importance of Internet
 Communication: This enables retailers to carry out diect interaction with their
employees and clients by making use of video calls worldwide without any kind of
interference.
 Research: Retailers opt for collection of precise as well as efficacious information for
carrying out in depth research for preparation of reports, doing surveys, analysis and
many other things.
Intranet: This denotes private network or local area network that can be accessed only
within organization as well as can be associated with one or more gateways outside firm. This
can be utilized by retailers for having internal interaction, sharing resources, training and
development, storage of data via online mediums and many others (Schwalbe, 2015).
Importance of Intranet
 Resource sharing: This will enable retailers to have a workspace in a firm where they
possess capability for sharing events, storage of events, online training programme to
employees for enhancing their knowledge.
 Better customer service: Retailers can have information from employees about response
attained from their customers with respect to services which are being delivered to them
(Wang and et. al, 2016). This will lead to create affirmative impact on operations carried
out by businesses.

3. Analysis and Discussion
3.1 Role of Information Technology in Tesco.
Technology is being utilised by Tesco for enhancement of services that are being
delivered by them as well as for creating an impelling environment. The role OF IT within Tesco
has illustrated beneath:
 Expense management tools can be used by Tesco for monitoring as well as tracking the
expenses which are made (Eason, 2014).
 Transaction can be automated by making use artificial intelligence for having enhanced
recurring actions.
 Risk, information and cash management can be done via security and control operations
along with handling of instruments through technology.
3.1.1 Different Information Systems.
For having smooth functioning, Tesco makes use of transaction processing system and
management information system for doing their day to day operations. It aids them within
analysing the performance of firm.
Transaction Processing System: They process data which is attained from occurrences
of business transactions. Objective of these is to update records as well as generate reports
(Kiran, Oudshoorn and Verbeek, 2015). Like this enables Tesco to manage their inventory, stock
control system, etc.
Management Information System: It is formulated for taking raw material from TPS
and transforming them into summarised form which can be utilised by management. Through
this, manager of Tesco can have on-demand reports related with HRM and sales management
system.
3.2 Types of Networking Technologies used by Tesco.
Three networks are being used for having interaction with their various outlets as they
render their services at global market. LAN is used within single building or in peculiar
premises, MAN for linking various LAN;s in same city and WAN is utilised for connecting
MAN’s that exist in distinct cities (Law, Buhalis and Cobanoglu, 2014). This is being done for

ensuring that efficacious interaction occurs among their all outlets so that any king of
interference do not occurs while having any kind of transactions.
3.3 Ethical and social issues in Tesco.
There exist distinct concerns related with information technology. From above it has been
found that IT has critical role in each firm as well as makes each task smoother but there are
certain aspects which violate system. To understand this, example can be taken like with
reference to ethical issues if intruder have access to confidential data then it can be used for
illegal activities (Marchewka, 2014). This will hinder brand image of firm. In context of social
issue, if third person makes some post on social media page of firm for defaming them to have a
competitive advantage. For this, it is necessary for Tesco to monitor activities carried out in their
network as well as social media pages to ensure that they do not fall into such kind of acts and
have a secured information structure.
3.3 Consequence of Intranet along with Internet in Tesco.
Internet is being utilized by firms for carrying out interaction around the world. Intranet
is being used for conducting operations within premises. In context of Tesco, both creates a
significant impact as later (intranet) aids them to share their information and resources. Internet
is utilized for sharing important information, formulate strategies, have video conferences, etc.
with outlets that are present in other countries (Mehlman and Li, 2014). This leads them to have
quick as well as easy interactions.
3.4 Explicate unlike stages of system development life cycle (SDLC).
The process associated with formulation of plans, creating, testing along with deployment
of information system is referred to as SDLC or application development life cycle. It is widely
utilised within configuration of hardware and software as system involves amalgamation of both.
It allows individuals to make conversions of newly developed project within operational one
(Neuhofer, Buhalis and Ladkin, 2014). The distinct steps which are involved within doing this or
in lifecycle are mentioned beneath:
i. Planning: This is the preliminary stage in which businesses identify whether there is
requirement of a new system or not for attainment of their strategic objectives. This is a
feasibility plan which is being carried out by firms like Tesco or M&S for acquisition of

more resources that will lead them to have enhancement within the services they furnish
to their customers (Nieves, Quintana and Osorio, 2014). Through this, they may tend to
look to acknowledge needs of customers, employees and stakeholders. The rationale of
this stage is identification of scope of problems which exist and respectively discover
solution for the same. Furthermore, factors like cost, benefits, resources, time and various
other aspects have to be taken into account.
ii. System analysis and requirements: This is second stage where top executives of
business work on classification of sources that cause problem and needs for alteration
within them. In case any kind problem occurs then possible solutions are being given and
from them best one has to be analysed according to goals of businesses like Tesco. With
respect to this, functional requirements of project will be taken into consideration. Along
with this, system analysis will be done to analyse what end users are expecting so that
new system is being developed according to their needs (Pardo and Siemens, 2014).
System analysis has a relevant role for knowing needs of business along with ways in
which they can be attained. Furthermore, time required for doing same can also be
calculated by reviewing previous somewhat similar projects. But for doing so, it is
necessary that firm like Tesco have adequate tools for gathering information by
structured analysis or computer aided system.
iii. System design: This implies third stage that is liable for illustrating essential operations,
features and specifications that are liable for satisfying functional requirements associated
with proposed system. This is an important step for firm for discussing and analysing
peculiar business needs associated with proposed system (Sampson and Makela, 2014).
Within this stage, all the crucial elements are considered like hardware, software,
networking capabilities of their existent devices, processing along with procedures for
attainment of objectives of system.
iv. Development: This is next stage where tangible working starts such as database
development, programming and many other aspects related with new system. It involves

making use of flow charts for make sure that processes are organised as per requirements.
This stage implies termination of initial stages of process. In addition to this, it signifies
initiation of production. Development stage is being categorised by instillation along with
alterations that will be made (Santoro, 2015).
v. Integration and testing: This is the fifth stage which involves system integration along
with testing of programs and procedures upon which quality assurance professionals have
agreed on. This is being done for identification of design meets so that organisational
goals can be ensured. Testing is done to have surety against errors, bugs and
interoperability. This is being done till the end until all the needs of end users are
accomplished as well as are adequate enough to furnish enhanced services. The other
section of this involves validation along with verification that will aid within succefull
attainment.
vi. Implementation: This is the sixth stage that involves codes that are written for a new
system. In addition to this, it comprises of actual installation and implementation of new
system which is developed (Schwalbe, 2015). This project steps further by moving
components as well as data forward from older system. It can be risky or complicated
move and this may take place at peak hours for minimisation of associated risks. System
analyst and end users look for realisation of project where modifications are being made.
vii. Operations and maintenance: This is the last stage that comprises of maintenance along
with regular updates are being made. It is being carried out by end users. This will
enhance overall performance of the system as well as give their feedback to businesses so
that appropriate medications can be made in case it is required (Wang and et. al, 2016).
If information technology department of firm like Tesco or M&S determine that some
changes are needed within any stage of SDLC then firm can utilize all the stages again.

Conclusion
From above it can be concluded that information technology illustrates the way in which
data is stored, processed, retrieved and transmitted. Operations can be conducted efficaciously
and information can be attained by making use of internet. Furthermore, through technology
resources can be shared which will lead to save unnecessary cost. There are various issues but by
tracking network and making regular updates they can be avoided.

References
Books and Journals
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Kiran, A. H., Oudshoorn, N. and Verbeek, P. P., 2015. Beyond checklists: toward an ethical-
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Law, R., Buhalis, D. and Cobanoglu, C., 2014. Progress on information and communication
technologies in hospitality and tourism. International Journal of Contemporary
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Marchewka, J. T., 2014. Information technology project management. John Wiley & Sons.
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Neuhofer, B., Buhalis, D. and Ladkin, A., 2014. A typology of technology‐enhanced tourism
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Schwalbe, K., 2015. Information technology project management. Cengage Learning.
Wang, D. and et. al, 2016. Assessing hotel-related smartphone apps using online reviews.
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