Information Systems in Organisations Report - Desklib

This report covers the modern information systems used by Tesco Company, different types of information systems that the company can adopt to support the managerial decision making, benefits, challenges and future opportunities of the technology and role of technology in assisting in the decision making of the company.

INFORMATION SYSTEMS
IN ORGANISATION
REPORT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Modern information systems used by Tesco Company...............................................................3
Types of information system.......................................................................................................4
Management information system and its benefits.......................................................................6
Justification..................................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Information system can be defined as the set of elements for collecting, storing and process
data to provide relevant information and knowledge. Business companies and firms depend
upon the information systems in order to carry on its operations. It helps the organisation to
manage and interact with the customers and suppliers, and also to compete in the market. It
includes the software, hardware and other telecommunication network that people develop
and distribute the useful data (Bettín-Díaz, et.al, 2018). An information system stores the
information in the database which helps to find the required data easily. It also helps in the
process of decision making of the company. The report covers the modern information
systems used by the Tesco Company which is British retailor supermarket, different types of
information systems that the company can adopt to support the managerial decision making
(Ghobakhloo, 2018). Along with this the study also reflects on the benefits, challenges and
future opportunities of the technology and role of technology in assisting in the decision
making of the company.
MAIN BODY
Modern information systems used by Tesco Company
Tesco is a British based company operating in retail sector. Their profits exceed three billion in a
year and are the third largest retailer in the world. The company is the leading Superstore in UK
and has more than 2000 outlets in UK and is one of the most successful grocery stores in the
world. Tesco has installed various applications in its systems which focus on the feasibility
(Waters, 2021). The information system can be defines as the set of the components for
collecting and storing the data in order to provide knowledge and information. It is the
technologically implemented standard with the aim of recording and storing. An information
system involves the variety of information technologies such as computer, software,
communication systems in order to perform specific task by the company. The company was
previously using the Linux systems for digital marketing and after that they switch to Oracle
marketing platform, The Company can understand closely to their customers because of the
various digital marketing services.
Information systems focus on the use of the communication and information technologies
in managing the operations of the Tesco Company. The company uses the modern information

technologies in order to effectively manage their operations, helps the manger to take better
decision and helps to gain competitive advantage. It also facilitates better communication at all
the levels of the company (Filatova, and Fedorenko, 2019). It was observed in the past when the
company receives and order from the customer for the product or service, the order goes through
various levels which included the paper based workflow that goes to every department. In those
times there was no accurate information of tracking of the order but today The Company has
eliminated the in inaccuracy and adopted various tracking systems and software in order to
eliminate the in inefficiencies caused in the process of tracking the order. The company uses the
modern ERP systems which is unified program that links with the various functional departments
such ad finance, HR, Sales and marketing etc. By adopting these new and modern information,
Tesco has reduce its extra costs, improved its productivity and the management are making more
efforts in implementing such technologies in order to compete in the market. There are various
components of information systems:
 Hardware: These are the physical resources and equipment’s used by the company
and includes the machines such as computers and other equipment’s such as data
media on which all the data of the company is stored and recorded (Gnatyuk, et.al,
2019). These computer systems consist of the various interconnected devices.
 Software: Software consist all the sets of information processing instructions and
includes the system software that is the operating systems, application software and
procedures which are the operating instructions for operating the information system.
 Data: The organization collects all the types of data and uses it for making the
decisions. This helps the company to analyse its effectiveness and the areas of
improvement.
Types of information system
The application of the different types of information systems that can be adopted by the Tesco
Company operating in the retail industry such as management information system and executive
information system. The information systems in the retail should support the basic retail
functions such as material procurement, storage, dispatch etc. These systems enable the manager
to monitor the sales of the product mix and sales volume on daily basis (Krymov, et.al, 2019).
The organisational growth is important for every industry whether operating on large or small
scale. With the growth come various responsibilities, planning and the need for better

communication. In order to expand and grow, it is essential to have information system that
allows the employees and the managers to interact and communicate in order to process the
transaction speedily. The business should adopt various different types of information systems
that assist in managing any business unit. As the business environment has a wide range of the
data requirements these technology system will help the department to manage and organise all
the data.
 Management information systems: Management information system are the kind of the
computer information systems that collects and process the information form various
sources and helps in the enhancing the decision making in the management. The
management information system uses the various data form the transaction processing
system to help the middle management in optimising the planning and decision making.
These systems provide information in the form of reports and displays which helps in
supporting the decision making in the company (Toleuuly, et.al, 2020). This information
system will provide secure way for the managers in order to meet their organisational
target and expand its operations in future. The other main feature for using the
information system is that it collects the internal data form the system and summarizes it
into meaningful and useful forms as it will help to support communication and decision
making in the company.
 Decision support systems: This is the computer based system by a manager or group of
managers at the organisational level in decision making process. It is computerizes
information system that helps the manager in decision making and helps in selecting the
best option which will benefit the company (Fathi Elshahed, 2019). Decisions support
systems are basically designed to help to the management make the decision in those
situation where there is uncertainty about the possible outcomes of those decision. Tesco
company should adopt the decision information support systems as it will helps the
managers to take decisions in the complex situations or solving the organizational
problems.
 Executive information system: This system is developed which provides access to both
internal and external information about the company. It provides the critical information
form the wide variety of internal and external sources (Erdoğan et.al, 2019). It will also
help the managers to take strategic and technical decision and will allow tracking the

internal performance of the company. Implementing such systems in the company will
help to monitor the competition and also helps in identifying the future opportunities for
the growth of the company.
 Customer relationship management: It is the management software that looks into the
data of the current and future customers that will help the company to understand the
customer better which will help in building the customer relationship (Dellino, et.al,
2018). This system stores the information which will help the retailer to increase its sales
and also helps in gaining better understanding of their customers.
Management information system and its benefits
Management information system is the machine system that provides the information to support
the planning and control functions of the managers in the company. It is basically designed in
order to support control and decision making functions in an organisation (Soltani, et.al, 2018). It
is defined as the information system that evaluates and process the organisational data in order to
provide meaningful information which helps the management to take right decisions to ensure
future growth of the company. It is the kind of information system that collects and process the
data form the different sources which helps in the effective decision making process of the
company (Albelbisi, 2019). It provides the information in the form of the reports and further
displays to support the management in the decision making of the company. This information
system collects the data from the transaction process system to provide necessary information to
the supervisors. It gathers the data from the internal sources and summarize into meaningful
information that helps in the decision making of the company.
Benefits of the management information system:
 Improving the data accuracy: It is important for the company to keep accurate data in
order to take strategic decisions so management information system is a tool that
provides accurate data which the company requires to make administrative tasks more
efficient and effective(Lukic, ). With the help of internet, the data can be retrieved by the
company.
 Facilitate coordination: Management information system provides the various
information services that can be used by the managers for planning, monitoring and for
administrative control. It helps in delegating the task in other departments easily.

 Integrated system: Management information system is an integrated process which allows
better communication with the managers, employees and departmental heads.
Challenges related to the management information system:
 Lack of strategy: The major issues the company faced relating the MIS is the lack
strategy. The information system leaders are aware about the various tools in order to
gather the data but putting the information to use sometimes becomes challenging for the
leaders. It is very important that information system plan should be aligned in order to
obtain long term organisational support.
 Lack of participation of the managers, users and system directors which can be
challenging to install such technologies in the organisation.
 There can be various environmental challenges procedures and methodology of creating
the systems, lack of evaluation of environmental aspects in management information
system.
Opportunities
Emerging various new technologies is affecting every company as the tech industry is considered
as the fast growing sector. It is important for the managers to be up to date with the latest
technology and implement in its organizations systems as it helps in improving the productive
capacity of the company. The company has the opportunity to implemented updated technologies
in is company which will also help in taking competitive advantage over the other competitors in
the market. It can help the company to effective data which will help the company in taking
decision in the complex situations (Yuniarto, et.al, 2018). It is observed that the emerging
technologies have changed the nature of work and also reduces the need to perform the tasks
manually. The main role of MIS is to convert that data into information and it organises the data
in such a manner that information can be useful for the managers for taking decisions in the
business related projects. Implementing new and computerised information system is very
difficult as it involves huge cost.
Justification about the technology that can assist with communication and decision making
Any business unit can be successful when there is continuous management of the financial and
organisational data with the defective information system. The chosen Management information
system will help the company in communicating and also helps in decision making by providing
up to date and accurate information about the company (Loginovskiy, et.al, 2018). Implementing

best and suitable management system in the company can identify the useful data from the
operations of the company and reports the management for making decision regarding the
organization matters. These information systems help to track and distribute the information to
the managers of the company that helps in taking complex decisions for the effective functioning
of the company. Bu using the management information system will enable the company to
effectively manage its operations. Management is the set of procedures which converts the raw
data into useful information and helps the manager to take decisions and also to communicate in
order to make relevant conclusions for the success of the company. It captures the data form
various internal and external sources. It also stores the data which can be required by the
company for future use. The company operating in the retail sector can use the management
information system which helps to collect the data regarding the sales, collection, inventory
control and internal communication which affects the retail business. In any organisations
managers need quick access to the information in order to take decisions relating to the financial,
marketing, and strategic. The information related to the customer records, financial records,
market research and data regarding sales will be used by the managers to predict its performance
and helps to take decisions accordingly. It is beneficial for the company to use the management
information system as it simplifies and provides information by string the data which helps in
making quick decisions for the benefit of the company (Kazimieras Zavadskas, et.al, 2019). The
management information system collects the data form internal and external sources and by
setting up the database through the retail stores, the company can analyse the supply chain and
there daily sales data and make relevant decisions based on the latest information. Where it is
necessary to involve number of people in decision making process, management information
systems makes it easier for the teams to communicate with each other while making decision for
the company. These systems help to convert the data into useful information which helps the
managers to identify the patterns which would not have been possible in case of the raw data.
Management information system converts the data into useful information and sometimes aware
the management about the issue by specifying the poor performance and inefficiency in
operations which is overall affecting the company. The management information system helps in
the strategic planning and operational control of the company. It also helps in short- term
planning and setting the target to achieve the goals.

CONCLUSION
From the above report it can be concluded that information systems is considered as an
important part in operating in business and also helps in making complex decisions in order to
improve the overall performance of the business. They provide timely and accurate information
to the managers to identify the trends in the business. With the rapid changes in the technology,
the companies are now using new software which has led to fast supply of the information.
Management information system is the integration of the hardware and software technologies
that focuses on the management of information technology. It converts the raw data into relevant
information to facilitate decision making process and controls the overall operations and
functioning of the company. Tesco can use the useful information system in its company that can
be helpful for the company to take decisions which will improve its performance based on the
information given by the systems.

REFERENCES
Books and journals
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Lukic, R., PROFITABILITY OF RETAIL TRADE.
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