Role of Information Technology in Tesco

This article discusses the role of information technology in the success or failure of Tesco, ethical and social issues in running a business, different networking technologies used by Tesco, and the importance of intranet and internet in the company.

Information Technology

Abstract
Information technology has become an important component for all organizations and
ensures that operations run smoothly. Tesco uses various kinds of networking technologies in
order to ensure that the knowledge sharing takes place effectively. Apart from this,
implementation of information technology comes along with various advantages as well as
disadvantages. Intranet and internet are used by the company to make sure that the overall level
of its efficiency is maintained. Lastly, a system development life cycle ensures that information
technology is implemented within the company in the most efficient manner.

Contents
Abstract......................................................................................................................................................2
INTRODUCTION.....................................................................................................................................4
Literature Review......................................................................................................................................4
Role of IT in the success or failure of a business.....................................................................................4
Ethical and Social issues that pertain to running business.......................................................................5
Different types of networking technologies.............................................................................................5
Importance of Intranet and Internet in Tesco...........................................................................................6
Different Stages of System Development Life Cycle..............................................................................6
Potential benefits and drawbacks of investing in Information Technology..............................................7
Analysis and Discussion............................................................................................................................8
Role of IT within Tesco...........................................................................................................................8
Ethical & social issues in Tesco..............................................................................................................8
Network technologies utilized by Tesco..................................................................................................8
Significance of intranet as well as internet..............................................................................................9
SDLC lifecycle......................................................................................................................................10
REFERENCES........................................................................................................................................12

INTRODUCTION
The use of computers to store, transmit, exchange and manipulate data or information can
defined as information technology. It has become an important component for almost all
organizations and helps the management of an organization to ensure that all departments rum
smoothly. Apart from this, information technology also helps organizations in improving their
overall efficiency as well as productivity (Aasheim, Li and Williams, 2019). Technology today,
is advancing at an increasing rate and has changed the way in which businesses operate.
Organization chosen for this report is Tesco, which is a British retailer of groceries and general
merchandise. The company was founded by Jack Cohen in the year 1919 and is headquartered in
the United Kingdom. The report discusses the role of IT in the success or failure of a business,
ethical and social issues relating to running a business and the importance of intranet as well as
internet in the chosen business.
Literature Review
Role of IT in the success or failure of a business
Information technology can play a role in the success as well as failure of a business and
ensure that it works efficiently. It provides businesses an opportunity to analyze the large
amounts of data available with them and thus, make effective decisions. Information technology
speeds up the overall process of data analysis and makes sure that accurate results are obtained.
This further helps in making decisions that contribute to the overall success of the business
(Avgerou and Walsham, 2017). With the implementation of technology within the workplace, a
business can easily provide a higher level of service to the customers. This is important because
the overall success of an organization depends on knowing the requirements of the customers
and trends in the market (The Role of Information Technology in Business Success, 2020).
Information technology also enables the managers within a business to monitor the overall
performance of the employees in an effective manner. On the other hand, if a business fails to
implement the right technology in its system, it can affect the overall performance as well as
productivity of the business. Further, the business can lack behind from its competitors and also
start losing loyal customers.

Ethical and Social issues that pertain to running business
Although it is a known fact that information technology has made it easier for businesses
to run their operations, there can still be various ethical and social issues that can affect running
the same. Some of the issues are explained below –
 Discrimination and Harassment – This is one of the major issues that many employees
within a business face. This issue can lead to a decline in the overall performance as well
as productivity of the employees. They can be discriminated based on religion, gender,
age and caste.
 Abusive Workplace Practices – This is another issue that can pose serious challenge to
the business (Benckendorff, Xiang and Sheldon, 2019). Sometimes, the managers and
team leaders do not treat their team members in a fair manner.
 Cyber Crime – It can be defined as the use of information technology to commit crimes
wherein a person uses someone else’s identity and portrays as their own. Also, increase in
the use of technology has led to an overall increase in the number of cybercrimes taking
place.
 Privacy of Employees – All businesses, including Tesco have a responsibility of keeping
the details of their employees private and safe. This is important so as to avoid any kind
of misuse and illegal activities.
Different types of networking technologies
A networking technology can be defined as a technology through which two or more
computer systems are connected and communicate with each other. It can help a business to
grow as well as secure valuable information (Lloyd, 2020). An effective networking technology
can allow a business to cut unnecessary costs on expensive soft wares. There are different types
of networking technologies which are explained below –
 Local Area Network – This is one of the most frequently used network technologies that
connects two or more computers within short distances. This helps in sharing information
and resources. A LAN can be connected with another local area network through
telephone lines.
 Metropolitan Area Network – This network is larger than local area networks but
smaller than wide area network. This type of network can spread across an entire

geographic area. The ownership of MAN is usually handled by a single person (11 Types
of Networks Explained: VPN, LAN & More, 2020).
 Wide Area Network – This type of network connects computers across longer distances
and the internet is one of the examples of this network.
 Campus Area Network – This type of network is usually seen in university and college
campuses or small businesses. It can enable the sharing of information over a short
distance.
Importance of Intranet and Internet in Tesco
Intranet can be defined as a private network that is accessible only to authorized users
and is basically a computer network that allows sharing of information within an organization. It
is an important component with a business and facilitates better and improved communication
among the employees within the workplace. Tesco has an inbuilt intranet within its workplace
that has proved to be beneficial for its employees. This is because the staff members can use the
same to store important information. Intranet is also important because it eases out
communication as well as collaboration for people within the workplace.
Internet can be defined as the network of networks that connects a large number of
computers globally. An ISP or Internet Service Provider connects the home user to other
computers across the globe. Internet has become one of the most important tools that
organizations use in order to carry out their operations smoothly (Mikalef and Pateli, 2017). It
allows knowledge sharing and learning not only within the organization, but also outside it.
Tesco has operations across different locations due to which the importance of communication
and connectivity has grown even bigger. Therefore, the company has implemented high speed
internet so that employees working in a particular location can communicate with others as well
as the customers effectively.
Different Stages of System Development Life Cycle
It can be defined as a model that includes different policies and procedures for
developing as well as altering systems (Stover, 2019). The model consists of different stages that
are associated with the development of a particular project within the company. The stages of
system development life cycle are explained below –

 System Planning – This is the first stage of the model wherein the management of the
business carries out an analysis in order to identify any requirement for a new hard ware
or software.
 System Analysis – In this stage, relevant information is gathered and analyzed. Apart
from this, the requirements of the project are also defined and an evaluation of
alternatives was also done.
 System Design – This stage involves the designing of application as well as system
interfaces (Theis and Wong, 2017). Once the design is finalized, it is then reviewed and
made sure that it meets the requirements.
 Implementation and Deployment – In this stage, the design is implemented and
deployed. Here, effective training is provided for the customers so that they become
familiar about the same.
 System Testing and Integration – In this stage, testing is done in a proper manner by a
team of professional.
 System Maintenance – This is the last stage of the system development life cycle
wherein proper maintenance of the system is performed. Also, in case if any errors or
mistakes are identified, they are rectified.
Potential benefits and drawbacks of investing in Information Technology
Implementing information technology can have various benefits for an organization like
increase in the overall productivity as well as performance. It has become a mere necessity for
businesses to survive and succeed in the market. It also saves a lot of time on manual labor and
allow the organizations to cut unnecessary costs. Information technology has proved to be very
beneficial for Tesco as the managers can get a clear understanding of the requirements and needs
of customers and can therefore satisfy the same (Xiang, 2018). This has led to the customers
being more loyal and satisfied with the services provided with the brand. But there are many
disadvantages of implementing information technology as well. This can include time as well as
cost for implementing the solutions. Apart from this, the company has to provide additional
training to its employees. This can also include errors and mistakes while implementation.

Analysis and Discussion
Role of IT within Tesco
Information Technology have essential role that will aid firm within generating amplified
profits long with revenues. The management of this firm makes use of information systems that
leads them to have privileged knowledge related with preferences as well as needs of their
probable customers in an effectual manner. Tesco has opted to utilize information technology for
management, assessment as well as ensuring that they are able to execute distinct departments in
an amplified way (Cepec and Grajzl, 2020). This will assist them within having insight into their
history, current situations prevailing within the market as well as future requirements. In addition
to this, information technology will help management of organization within monitoring of their
performance and make sure that each asset of firm is rendering their services in precise manner.
Ethical & social issues in Tesco
At present scenario, firms are making investment within implementation of enhanced
technologies within their systems through which overall functions can be carried out as per
requirements. But, in addition to this, there are various social along with ethical issues which are
related in information technology and creates a significant impact on functionality of Tesco. It is
necessary for firm to have precise information related with these aspects. They involve identity
theft in which one employee can make use of identity of other employees to conduct
unauthenticated or unauthorized activities for having an edge. In addition to this, hacker or third
person can hack all the essential information of their employees and then might misuse this. It
will lead to creation of agnostic impact on productivity as well as performance of firm. Along
with this, there will be probable impact on mental state of employees when work done by them
will be stolen by others and credits for that will be taken by other. It will hamper goodwill of
Tesco in pessimistic manner of which their competitors can take vantage. Therefore, it is
necessary that relevant measures are being taken by management for avoiding these kind of
circumstances (Verberght, 2020).
Network technologies utilized by Tesco
Tesco is multinational firm which delivers their services worldwide thus it becomes
mandatory for them to have adequate channels through which they can connect with other

subsidiaries or stores. For this they make use of distinct networking technologies within their
working environment. They have been illustrated beneath:
 Wireless LAN: The firm utilize Wi-Fi within their unlike offices which are present
within different locations but each have their own connections. The reason behind this is
that LAN provides services within restricted dimensions like within a building. All these
systems are connected with Wi-Fi that enables them to deliver on time services.
 Wide area network: As firm delivers their operations around the world, all the systems
must be associated with other via an internet as this has enhanced reach. The network is
being handled by different administrators within their offices.
 Metropolitan Area Network: Tesco makes use of MAN as this enables them to have
high speed through which quick interaction can be conducted. This is attained by making
use of fiber optical cables (Gautam and Sharma, 2019). MAN is liable for rendering high
speed as compared to WAN that is responsible for transferring data among various
computers. In addition to this, it will enable Tesco to have higher security levels in
context of WAN.
Significance of intranet as well as internet
Intranet refers to private network that is accessed by authorized or authenticated persons
for carrying out their functions. It is mainly formulated for having internal interaction between
people of business. This is very crucial for Tesco; its significance is depicted below:
 Productivity of employees: The efficiency of employees will be enhanced by carrying out
video conferencing, formulating discussion groups, chat rooms and audio.
 Communication: This is one of the critical aspect that creates a huge impact on
performance as by utilizing this, employees can have precise information related with the
projects via emails, voicemails, fax and blogs.
 Cost effectiveness: This aids within cost saving for Tesco as the investment required
within maintenance of physical or manual documents will be eliminated.
Internet denotes globally wide network that aids within connecting distinct computer systems
worldwide. This needs higher bandwidth data lines that will aid within connecting internet with
other countries through usage of web servers, internet service providers and many more. The
importance is specified below:

 Brand awareness: Through the assistance of internet, Tesco can have brand
awareness related with products rendered by Tesco. This will lead to creation of
enhanced image of firm among their consumers. The reason behind this is that,
ample number of people can connect with internet through which they can have
services.
 Sharing information: Internet has made it easy to share data among different
people irrespective of distance that prevails within them. Within microseconds or
even less than that (depending on network speed) information can be transmitted
through which affirmative results can be attained.
SDLC lifecycle
It refers to model to model that is being applied for managing projects as well as
illustrating different stages that are related with developing projects. This can be utilized within
all kind of projects irrespective of whether they are technical or non-technical. They are
illustrated below:
 System Planning: This is critical phase within creating adequate and successful system.
For this, they analyze and determine needs of software and hardware. The individuals
who are part of this stage are employees, managers and investors.
 System analysis: This is liable for planning of anticipation along with needs of their
customers along with ways related with performance must be documented by
formulation of feasibility study.
 System design: It defines distinct entities of system, components, architecture, security
levels as well as kind of information which is installed within system in adequate manner
(Xiang, 2018).
 Implementation & deployment: The systems are deployed, installed as well as utilized
by individuals. This needs adequate training for ensuring usage of system.
 System testing & integration: This phase comprises of testing the projects that are
conducted by team within enhanced manner.
 System maintenance: This involves maintaining system from time to time by monitoring
it so that vulnerabilities do not occur.
CONCLUSION

The above report concludes that the use of information technology within businesses is
increasing day be day. Due to this, many organizations have implemented the latest technology
in their system. There are many benefits of implementing information technology within the
business and plays an important role in the overall success or failure of the same. Apart from
this, there are various social and ethical issues that pertain to running a business and can have an
impact on the overall productivity of the employees within a company. A business can use
different types of networking technologies like LAN, MAN, WAN etc. Intranet as well as
internet can play an important role for a company in making it efficient and enhance its overall
productivity. Lastly, a system development life cycle ensures that information technology is
effectively implemented with the system.

REFERENCES
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