Introduction to Information Technology in Business: A Case Study of Walmart
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This study explores the importance of information technology in business through a case study of Walmart. It covers different types of software used by companies, ethical and social issues in running businesses, impact of Internet and Intranet on businesses, and the role of IT in organisational management.
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Introduction to Information Technology
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ABSTRACT The study is based in introduction of information technology in a company. It is key component in many companies as it assists in carrying out practices as well as achieving objectives smoothly. Improvements in productivity along with efficiency through technology is major focus of any company. For this project, secondary research is selected for collecting information from various sources. Walmart is a retailer which has incorporated information technology in its functioning. The study focuses on various software used in business along with significance of ethical and social issues n running enterprise. It also highlight impact of Internet and Intranet on businesses addition to role of information technology in organisational management.
Contents ABSTRACT....................................................................................................................................2 Contents...........................................................................................................................................3 INTRODUCTION...........................................................................................................................1 LITERATURE REVIEW................................................................................................................1 Different kinds of software which could be used by companies.................................................1 Ethical along with social issues are increasingly becoming significant in digital world. Identification along with importance of them for running of organisations................................3 Information addition to Communication technology makes a business concern more effective as well as efficient in responding towards needs of customers. Discussion of impacts on Intranet and Internet on businesses..............................................................................................4 Discussion of role of IT in assisting managers for business management..................................6 ANALYSIS AND DISCUSSION...................................................................................................7 Potential benefits along with drawbacks in making investment in Information Technology.....7 CONCLUSION................................................................................................................................8 REFERENCES................................................................................................................................9
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INTRODUCTION Information technology is described to a term which comprises all kinds of techniques that are used for creating, storing, exchanging together with utilising information in ample number of forms comprising conversation, motion pictures, business data and multimedia presentations (Benitez, Llorens and Braojos, 2018). It acts as building communication network for an establishment that create and administer databases, safeguard data and information, assist workforcetotroubleshootissueswithcomputersorotherdevicesforensuringsmooth functioning of enterprise. It analyses particular data as well as assist to plan organisational journey accordingly through trends and information that are presented in data. It equips businesseswithabundanttoolsforsolvingchallengingobstaclesaswellasplatfuture entrepreneurial growth. To gain insights about introduction to information technology, Walmart is taken into consideration. It is retail corporation which operates chain of supercentres, grocery stores and discount department stores. It has approximate of 10593 stores along with clubs in around 24 countries. The report reviews literature related to types of software which could be used by establishments, importance of social and ethical issues in running businesses, impact of Internet and Intranet in company as well as role of IT in organisational management. LITERATURE REVIEW Different kinds of software which could be used by companies According toUllah (2020), All size of business need software for assisting automate complex processes which are costly and time consuming in nature (Ullah, 2020). Software are termed to set of computer programs which are used by workforce for performing business functions. With varied software, managers of Walmart are able to enhance productivity together with perform other functions in accurate manner. When used effectively, software reduces workload of employees and automates corporate practices. Mentioned below are different types of software that can be used by managers of Walmart: Audit management software: A software which streamlines audit processes of company and comply with internal policies as well as regulations is termed to audit management software. In Walmart, managers can use audit management software for defining, executing together with monitoring auditing procedures for ample number of purposes, for example, environmental 1
protection, health and safety. It can provide well detailed performance reviews that could permit team managers for working on immediate addition to long term solutions to issues(Al-Sartawi, 2020). Training management software: A software which is intended for simplification of training management process related to employees is termed to training management software. It is cost effectivesoftware having characteristicswhich ensure easy database management concerned with workforce, effective training schedules as well as accurate training records. In context to Walmart, managers can use training management software in order to monitor certificationsandqualificationsofeachemployeeforbecomingawareaboutupcoming expirations. It assists in locating, updating addition to cross referencing training information of personnel which keep all in information loop. Quality management software: It is a software used with the aim of quality management, process improvement as well as compliance. The software when used in Walmart can help in sorting and filtering data easily, assign people into groups that are based on job functions and run searches across all records in system with simple search. With this software, the retailer can automate procedures associated to tracking addition to controlling defects in products. Moreover, it can be used by the company for checking final quality as well as ensuring effective improvements in production, practices along with revenues. Issue management software: The software that serves as centralised location for all information related to issues or problems which can arise in business and documents all processes that areundertaken prior occurrence of issue addition to proffer solutions is named as Issue management software(Wang, Sigerson and Cheng, 2019). In case with Walmart, use of the software can help managers in identification of problem areas, assign people to solve it, offer corrective practices and keeping proper track of accurate actions which have been taken for providing detailed reference about future purposes addition to preventing similar repeating. Total quality management software: It is designed for assisting organisational managers will all phases of operations to offering top level of quality performances. When administration of Walmart uses total quality management software, they can bring long term success by satisfying customers with top quality of products and impact positively on workforce to perform better. It can also provide for supplier quality management, document management and hence 2
forth. It is required in all divisions or functional units of the retailer for participation in ongoing efforts related to quality improvement. With usage of mentioned software, managers of Walmart can simplify decision making, improve data security, increase sales potential, enhance analysis, increase productivity and provide better customer services. Through distinct types of software, it becomes easy for staff members to automate tasks, report progresses along with analyse lags in operational activities. Ethicalalongwithsocialissuesareincreasinglybecomingsignificantindigitalworld. Identification along with importance of them for running of organisations In a company, ethical issues are those problems that arises when a given decision, activity or scenario results in disputes with moral principles associated to society. While social issues are challenges recognised by society as issue which prevents from functioning in optimal level. In accordance to Schroeder (2020), in a corporate, social and ethical issues are important as they promote integrity among workforce addition to gain trust from key stakeholders, for example, consumers as well as investors (Schroeder, 2020). Unethical accounting, abuse of leadership authority, privacy, corporate espionage and so on are some of ethical and social issues that are faced by managers of Walmart while carrying out business practices. In aspect to Walmart, mentioned below are some of importance of social and ethical issues in running the company: Build positive culture: Ethical and social issues are important for running an establishment as it builds positive culture. An organisation, for example, Walmart devote resources so to develop policies together with procedures which encourages actions for minimising ethical and social issues leads to building positive business culture for effective functioning of company. Members of team improves morale through taking actions against social and ethical issues to make workforce protected from retaliation of beliefs(De Stefano, Bagdadli and Camuffo, 2018). When staff members feel good and complete practices ethically, the overall feel at workplace is more positive. It breeds loyalty and productivity of corporate due to ethical functioning of employees. Benefits bottom line: Issues related to ethics and society are important in running of an entity as it benefits bottom line through improving profitability. Ethical issues cultivate trust that strengthens brand together with enhance sales of organisational products and services. In aspect to Walmart, customers care about contribution of managers for ethical and social issues and stop purchasing services when perceive that the company continue working unethically. With clear 3
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communication of ethical practices and social responsibility, Walmart is likely to see spending from consumers and returning again and again that drives profitability. Improves organisational reputation: Ethical and social issues are important in running an establishment as they improve organisational reputation to great extent(Schönborn and Et. Al., 2019). For example, reputation of Walmart for ethical and social complexities help in creating more positive image in marketplace that brings potential customers due to word of mouth referrals. On the other hand, reputation of company for unethical practices hurts organisational likelihoods for obtaining new target audience, specifically, in age of digital world when dissatisfied customers fastly disseminate information concerned with negative experiences of social issues. In digital world, social and ethical issues play significant role in an organisation, for example, Walmart. It aids the establishment to lead greater productivity that impacts the ways of achieving profitability for smooth running in digital world (Cantele and Zardini, 2018). Information addition to Communication technology makes a business concern more effective as well as efficient in responding towards needs of customers. Discussion of impacts on Intranet and Internet on businesses Information and communication technology improves engagement of customer along with knowledge retention. An organisation makes use of information and communication technology so to provide assistance to target audiences for using information. It is concerned with storage, retrieval as well as transmission of digital data. Within Walmart, information and communication technology assist in improving communication processes with target customers and meeting their needs. In this aspect, use of internet and intranet have huge impact on business of Walmart. Heath (2017) says that Internet has revolutionised the ways in which businesses are conducted to meet needs of customers and assists in creating more efficient market. With Internet, global marketplace for a company is more connected, diverse, accessible and inclusive. In aspect to Walmart, some of impacts of Internet on the business are as discussed: Communication more rapidly and easily: Internet has made things easier for business communication. In aspect to Walmart, Internet has impacted in making communication more easily and rapidly with target customers. At the time of interacting with people or responding towards queries of customers, internet offers ample solutions so to optimise day to day workflow together with communication. Ranging from connected calendars, chat services, E-mails and 4
cloud phone systems, Internet has offered various tools that are designed with the purpose of improving business communication internally and externally (Viriyasitavat, Anuphaptrirong and Hoonsopon, 2019). With high speed Internet, superiors and subordinates of Walmart are able to deliver instant messages to customers, optimise day to day tasks with no efforts and connect with people that reside at long distance places. Moreover, teamwork hubs, chatbots, social media platforms and VoIP phone systems, all ate emerged due to Internet technology that helps in effective communication of company to drive business forward. Learn about trends: Evolution of Internet has impacted on business through assisting in learning about trends which have possibilities to affect working, discover products which can improve services, observe consumer behaviour and increase knowledge about industry. In association to Walmart, amount of information addition to reviews related to businesses and industry on Internet impacts on making consumers more comfortable and in control while devising decision making. It enhances rate of decision making by learning about trends and carrying out productive practices. Accessible: Advent of Internet resulted in presence of establishments globally. In a business, Internet impacts by bridging gap among organisation and consumers. In context to Walmart, Internet impacts positively as it fosters accessible of organisational offerings to consumers at worldwide level. It impacts by making exchange of transaction more open and transparent. Through Internet, consumers connect with the company, access products and services, ask pertinent questions, obtain support as well as offer suggestions. It impacts in enhancingcustomersatisfactiontogetherwithenablefurtherexpansionthatimproves profitability of company. In accordance to Priscott (2022) Intranet is powerful tool for businesses as it facilitates collaboration, communication along with information sharing internally. It permits organisation for building private and secure network which is accessed by employees of workplace. Discussed below are major impacts of Intranet on business of Walmart: Create recognition mindset: In a company, recognition along with rewards are made prominent across intranet for demonstration of great culture of work in the workforce are values as well as rewarded for performing best. In Walmart, intranet impacts by highlighting all great work which are not went unnoticed that in turn provides effective example to all staff members contributing to creating really positive mindset among colleagues. 5
Connecting entire business: For other locations of an establishment, becoming siloed as well as disconnecting from team can be easy. In Walmart, Intranet impacts by allowing conversations or exchange of information to take place in which all personnel are able to access together with engage assisting in bringing multi location all together. It also impacts in a business through enabling teams to carry out working collectively and simultaneously for achieving great results. Easy employee engagement: Modern and well-designed corporate intranet impacts by transforming employee experiences towards promoting innovation, connection, efficiency and growth that are key components for engaged workforce (Funk, 2018). In Walmart, Intranet is becoming go to place in which people are connecting with colleagues addition to initiate two way communications with staff members all overt company. It makes workforce engaged which contribute in increasing productivity, morale and innovation in the company. Reinforce brand as well as value: For a business, intranet is appropriate platform for reinforcing values. Intranet provides ample number of ways so to put values of the establishment upfront. In context to Walmart, Intranet impacts by reinforcing brand and values through recognising personnel which live at values of company and facilitates sharing of suitable web article which is significant for enhancing values. It also facilitates manpower to share certain values which they encounter at workplace. Discussion of role of IT in assisting managers for business management de Mattos, Kissimoto and Laurindo (2018) says that Information technology plays a crucial role in managing businesses and help managers (de Mattos, Kissimoto and Laurindo, 2018). It is beneficial for organisations to enhance their ability for producing more with improved quality in order to attain customer satisfaction. It assists managers in enhancing their effectiveness and increasing their competitiveness as well as flexibility simultaneously. Varied ways in which information technology help managers in managing their business operations in relevance with Walmart are mentioned below: Making a greater reach-Information Technology aid managers in making their reach to massive number of customers on a global level. With the help of mobile applications and e- commerce platforms, Walmart is able to reach a large network of customers. In recent years, Walmart has launched their mobile application regarding their grocery business called 'Alphabot' (Walmart just unveiled a new technology that could help defend its position as America’s largest 6
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grocer,2020). It is designed in such a way whereby shoppers can give and receive their orders in a faster manner at their door step. Through this practice, managers of Walmart can better manage diverse needs of their customers as well as keep them satisfied. Through their mobile application, managers of Walmart can forecast diverse demands of their customers. Help of artificial intelligence- Artificial intelligence plays an important role in managing the business in an effective manner. Managers of Walmart also use artificial intelligence in order tomaketheirwebsiteandmobileapplicationsmoreviable.Withthehelpofartificial intelligence, they can gather extensive data of their existing customers and also provide them recommendations regarding their new products. With the help of this, managers at Walmart can make efficient decisions in relation to frame marketing strategies for engaging their customers with their brand. This practice led them to retain their existing employees with them for a longer period of time. As per Ryan (2021), Walmart has implemented SUSE Linus enterprise which is an open- source operating system (Ryan, 2021). These systems are highly robust and help managers of Walmart in managing their physical stores in an effective manner. Even IT team of Walmart are working on developing mPOS which can be operated through mobile very easily. ANALYSIS AND DISCUSSION Potential benefits along with drawbacks in making investment in Information Technology Inacompany,whenmanagesdevisedecisiontomakeinvestmentonInformation technology, it brings various benefits and drawbacks. In association to Walmart, it has been analysed that investment in information technology benefits by allowing business in expansion togetherwithattainingsuccessfulmilestonesinmoreeasymanner.Withtechnological investment, a company is able to adopt various advanced techniques which makes working of employeeeasycontributingtoemployeesuccess(Saldanha,LeeandMithas,2020). Furthermore, investment in technology helps company to avoid becoming obsolete as there are competitorsthatleverageinformationtechnology.Throughtechnologicalinvestmentor modernising systems, Walmart is able to practice business to stay relevant. New technologies are significant for boosting corporate culture. In a company, mindful handling transitions for investing in information technology benefits in implementing to go more smoothly. 7
There are various drawbacks related to investment on information technology to a company. Making investment in information technology requires huge time and money. In context to Walmart, investment in information technology requires huge financial resources that leads to a costly investment decision. When embarking on significant investment on information technology, businesses remain cognizant of risks associated to intelligent automation that engrosses insufficient cybersecurity, skill gaps, lack of processes of change management, business disruption and inconsistent developer training. CONCLUSION In accordance to reviews of literature, it is concluded that information technology is associated to building communication networks for business concerns, devise and administer databases as well as safeguard organisational data and information. In a company, kinds of softwarewhichcouldbeusedincludesauditmanagementsoftware,qualitymanagement software,totalqualitymanagementsoftware,trainingmanagementsoftwareandissue management software. Importance of ethical and social issues in organisational running are build positive culture, benefits bottom line and improves organisational reputation. Communication more rapidly and easily, learn about trends and accessibility are impacts of Internet, while, creatingrecognitionmindset,connectingentirebusiness,easyemployeeengagementand reinforce brand as well as value are impacts of Intranet on business. Making a greater reach and help of artificialintelligence are some of role of IT in assisting managers for business management. 8
REFERENCES Books and Journals: Al-Sartawi, A. M. M., 2020. Information technology governance and cybersecurity at the board level.International Journal of Critical Infrastructures,16(2), pp.150-161. Benitez, J., Llorens, J. and Braojos, J., 2018. How information technology influences opportunity exploration and exploitation firm’s capabilities.Information & Management.55(4). pp.508-523. Cantele, S. and Zardini, A., 2018. Is sustainability a competitive advantage for small businesses? An empirical analysis of possible mediators in the sustainability–financial performance relationship.Journal of cleaner production.182. pp.166-176. de Mattos, C. A., Kissimoto, K. O. and Laurindo, F. J. B., 2018. The role of information technology for building virtual environments to integrate crowdsourcing mechanisms into the open innovation process.Technological forecasting and social change.129. pp.143-153. DeStefano,F.,Bagdadli,S.andCamuffo,A.,2018.TheHRroleincorporatesocial responsibilityandsustainability:Aboundary‐shiftingliteraturereview.Human Resource Management.57(2). pp.549-566. Funk, M., 2018, January. Designing the fog: towards an intranet of things. In6th Workshop on Interacting with Smart Objects (SmartObjects 2018)(pp. 31-38). CEUR-WS. org. Saldanha, T.J., Lee, D. and Mithas, S., 2020. Aligning information technology and business: the differentialeffectsofalignmentduringinvestmentplanning,delivery,and change.Information Systems Research.31(4). pp.1260-1281. Schönborn, G. and Et. Al., 2019. Why social sustainability counts: The impact of corporate socialsustainabilitycultureonfinancialsuccess.SustainableProductionand Consumption.17. pp.1-10. Viriyasitavat, W., Anuphaptrirong, T. and Hoonsopon, D., 2019. When blockchain meets Internet of Things: Characteristics, challenges, and business opportunities.Journal of industrial information integration.15. pp.21-28. Wang, H. Y., Sigerson, L. and Cheng, C., 2019. Digital nativity and information technology addiction: Age cohort versus individual difference approaches.Computers in Human Behavior.90.pp.1-9. Online: Heath. D. 2017.What Are the Positive Effects of the Internet on Business. [Online]. Available through: <https://bizfluent.com/info-8236794-positive-effects-internet-business.html> Priscott.A.2022.PositiveimpactsofGreatIntranet.[Online].Availablethrough:< https://insights.perspicuity.co.uk/5-positive-impacts-of-a-great-intranet> Ryan,2021.WhatPOSSystemDoesWalmartUse.[Online]Availablethrough: <https://therisesmb.com/what-pos-system-does-walmart-use/> Schroeder. K. 2020.Reasons Why Business Ethics Is Important. [Online]. Available through: <redlands.edu/study/schools-and-centers/business/sbblog/2019/may-2019/3-reasons-why- 9
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business-ethics-important/#:~:text=Business%20ethics%20enhances%20the %20law,become%20common%2C%20the%20quality%20varies. Ullah. S. 2020.What types of software are helpful for large businesses. [Online]. Available through:https://techbullion.com/what-types-of-business-software-are-helpful-for-large- businesses/ Walmart just unveiled a new technology that could help defend its position as America’s largest grocer. 2020. [Online] Available through: <https://www.cnbc.com/2020/01/08/walmart- unveils-a-new-technology-for-its-grocery-business-alphabot.html> 10