Role of Information Technology in Retail Sector

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