Tesco's IT Initiatives and Retail Strategies

The report discusses the importance of information technology in Tesco's operations, highlighting its role in conveying messages and reducing communication errors. It also touches on ethical and social issues faced by the company. The document mentions three types of networks (LAN, MAN, and WLAN) used by Tesco to connect to the internet and wireless applications. Additionally, it proposes potential improvements such as digital wallets and face-scanning barcodes for self-checkout machines.

INTRODUCTION TO
INFORMATION
TECHNOLOGY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LITERATURE REVIEW................................................................................................................1
Theme 1: Role of Information technology in the success as well as failure of TESCO.............1
Theme 2: Ethical and social issues of Information technology...................................................2
Theme 3: different types of networking technologies.................................................................2
ANALYSIS AND DISCUSSION...................................................................................................3
FINDINGS.......................................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Information technologies are widely used in this world. These techniques help a person to
do the work in fast and effective way. The chosen company for this report is TESCO which is
one of the leading companies in UK who offer different variety of food products to their
customers (Eccles, Krzus and Ribot, 2015). The report presents the literature review of
information technology and the importance of internet in this world. Further it also describes the
use of social media as well as communication technology. The report has discoursed upon the
role of IT in the success as well as failure of an organization. Further it has also defined some
ethical and social issues which pertain the running of a business and different types of
networking.
LITERATURE REVIEW
Theme 1: Role of Information technology in the success as well as failure of TESCO
According to Goolsbee and Klenow (2018) the biggest use of internet for an individual is
to do online marketing. Internet also helps to provide useful data in order to raise the
performance of their own. Chatting and playing games is another use of an internet that helps to
improve their self. Electronic newspaper and magazines are another usage of the internet for an
individual life. Through internet, an individual can easily book their train as well as air tickets
without going anywhere. This helps them to saves their time as well as money. Emailing and
convey their message is another usage for an individual. Even a person can also keep connected
with their family members by providing the various information. On the other side, Hobbs
(2016) argued that in the business, marketing is the most important benefits of the internet for
business.
Through internet, business owners also draw attention of many customers and through
marketing as well as advertising, the business will be fast and it also requires to engage less staff.
Internet also help to improve the workplace and business productivity such as through app, many
of the business owner start doing online business and that will help many customers to buy their
favourite things in low cost and also saves time. Internet also enhances the range of customers,
such as through social pages and websites, many of the users are automatically pull towards the
business and it helps to maximizes the sales. Internet banking is another important key aspect
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which help to provide banking services and also speed the business transaction. It also allows to
keep engaging the employees to achieve the business high goals and objectives.
As per the views of Fuchs (2017) the main use of social media is to boost up the business
overall performance level. This is basically used to keep interacting with the employees as well
as customers so that they will come to know the new offers related to their business. It also helps
to build strong relationship with their customers and employee will also get know about their
regular updates related to new products. It also increases the brand awareness and also generate
new ideas from their employees as well as stakeholders. Social media keep interacting with new
staff members as well as encourages two-way communication. Such that it takes feedback from
their employees in order to let know about any weakness. Social media is considered as cost
effective and therefore, it is quite useful for the company or an organization to use this in order
to boost up their sales or profit.
Theme 2: Ethical and social issues of Information technology
According to Perrin (2015) TESCO faces some ethical issues related to information
technology is that privacy. Many of the data are miss used by the third party and this may also
lead to many problems. Company also track many internet usages as well as collect information
and there may be chances to use those data by third party. On the other side, security related to
data of their customers and visitors is another ethical issue which is arises from the continuous
monitoring of employee activity.
A per the views of Dinerstein and et.al. (2018) social issues faces by the company is
recycling the dangerous electronic waste that may lead to harm the ecosystem of the country.
The generation of the workplace is another issue that is find by the people of the TESCO. The
generation gap between the peoples also led to creates many problems in the working place and
as a result, many of them may leave the company and join another one in order to get rid from
the problem.
Theme 3: different types of networking technologies
According to Khalaila and Vitman-Schorr (2018) network is the process that actually able
to connect two devices in order to exchange the information with the process through another.
There are 3 main types of network such as LAN which is actually cover only small area of
network such as office, home and groups of building. Now a days this is installed by using
wireless technologies. On the other side, MAN is used to connect technologies such as cable TV
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network that covers one city or a group of several LAN. It is also used by large organization in
order to connect various branches across a city. Third type of network is wireless local Area
network that provide the network over short distance such as by using radio. These are so
expensive and that is only used by an alternative to cable to LAN. Most of the business are used
this type of network in order to convey the message form one area to another.
ANALYSIS AND DISCUSSION
Theme 1- Tesco has successfully implemented a digitalised in- store to provide the finest
experience to its customers.
Interpretation- This has shown an improved operating model of Tesco and an initiative to invest
into in- store digital networks. In which, they have mainly placed some handheld devices as well
as self-check- out stations to help customers in checking out easily, without any interruption
from Tesco’s employees (Aloysius and et.al., 2018). This has not only increased the sense of
satisfaction in the shoppers who largely supports this concept, but has also helped them in
efficient cost savings due to fewer employees, performing the task of manual checkouts.
Although, it has together led to create several numbers of challenges where a deficit employee
supervision often resulted in fraud checkouts where Tesco is now combating with the state of
thievery. For which, they have now adopted the technique of digital receipts with specialised
cameras at self-checkout posts to alert their staff about any irregular scanning activity by the
shoppers.
Theme 2- Development of Tesco Clubcard as a sophisticated data driven customer loyalty
scheme has provided huge benefits to the organisation in terms of earning high profits.
Interpretation- This has been specified as the most effective loyalty scheme for the consumers
buying from Tesco that is fully customer driven and various technical progressions in it. It has
not only resulted in generating a loyal set of customers for Tesco but has together assisted Tesco
in forecasting the future buying habits of its consumers (Morimura and Sakagawa, 2018). The
cited firm has also generated many personalised discounts through it that has in turn created
around 16.5 million subscriptions and a guaranteed repeat purchase. However, there together
exists a huge scope of improvement in Tesco’s currently designed app called Tesco app that
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could have better functionality to assist customers in locating the specific items at their
superstores.
Theme 3- Tesco has moved from ‘bricks and mortar’ to ‘bricks and clicks’ system to run its
online grocery platform, having ‘click and collect’ functionality that also resulted in several
number of difficulties.
Interpretation- Tesco grabbed this opportunity in the year 2000, when online grocery shopping
was gaining huge popularity in UK. At that time, Tesco quickly responded to it by changing its
previously adopted business model and established a channel for delivering online grocery at
consumer’s doorstep (Laudon and Laudon, 2016). This channel was named as Tesco Direct and
was upgraded in the year 2011 to provide further convenience to the consumers when they
lowered the delivery costs to a great extent. Herein, Tesco together took assistance of an
omnichannel network to undertake the ‘click and collect’ function through which, the shoppers
can themselves place their online orders and collect the bagged groceries from the collection
point of their own choice. It however led to the emergence of challenges related to investments
in efficient home delivery workforce and supply chain ordering, etc.
FINDINGS
This is on the basis of above demonstrated report on Tesco, in which, online retailing has
been found to be one of the most effective strategy adopted by the quoted entity. Herein, several
modernised IT applications have largely assisted Tesco in generating high amount of profits. One
such successful drives of success in Tesco is the adoption of digital receipts and self-scanner
scheme (Purvis, 2015). This has resultantly saved £8 million on yearly basis. This has helped
them in giving a paperless future to its clients by eliminating the paper receipts at the shops.
Also, this trail of digital receipts and self-scanner tech has led to decrease thefts and eradicate
frauds.
It is also on considering to such some statistical data of British shoppers who have been
found to steal items of around £1.6 billion, each year. However, this can be reduced with the help
of trailing cameras at the stores with a special concern of installing them at their self-checkouts
system (Shaikh and Karjaluoto, 2015). Beside this, it has also found to develop an effective
consumer loyalty scheme that has in turn enhanced their customer base to a great extent.
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However, it is together required to have a number of improvements in terms of reducing the
existence of robbery due to fraud checkouts and other such mishaps.
This showcases the ethical consideration of Tesco to protect both their image in front of
consumers by together protecting themselves from such fraudulent actions. Apart from this, a
high costing to invest in the development of such advanced means is required to be budgeted by
Tesco by considering the returns from it (Zokaei and et.al., 2016). This is also referring to yet
another acquired fact of Tesco’s applied digital means that requires huge improvement in terms
of leveraging its smartphone expertise. This is basically to innovate the experience of in- store
consumers to help them shop digitally. It is also evident to provide a personalised experience to
the customers with a familiar in- store.
This is for instance on considering the existent Tesco App that has a greater scope of
enhancement and can be easily extended in terms of effective functionality. A vital possibility of
improvement hereby refers to a significant assistance to the customers to themselves locate the
products that they are intending to buy from the store (Reilly and Hynan, 2014). Also, another
application named digital wallet can be introduced to provide a unified digital experience and
substitute the ‘scan as you shop’ with it. These improvements can lead to create some effective
opportunities in their undertaken operating model by together reducing their costs and
headcounts related to in- store. Lastly, yet another effective strategy could be introducing face
scanning barcodes in their machines for self-checkout.
CONCLUSION
By summing up above report it has been concluded that information technology plays an
important role in TESCO. This are actually used in order to convey the exact message from one
person to another so that there will no miss communication. Further it also concluded that there
are some ethical as well as social issues which are faces by TESCO. Report also describe three
main types of network such that LAN, MAN and WLAN and among all WLAN which is also
used by many companies in order to connect internet and wireless application protocol.
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REFERENCES
Books and Journal
Aloysius, J.A. and et.al., 2018. Big data initiatives in retail environments: Linking service
process perceptions to shopping outcomes. Annals of operations research. 270(1-2). pp.25-
51.
Eccles, R.G., Krzus, M.P. and Ribot, S., 2015. Models of best practice in integrated reporting
2015. Journal of Applied Corporate Finance. 27(2). pp.103-115.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education
India.
Morimura, F. and Sakagawa, Y., 2018. Information technology use in retail chains: Impact on
the standardization of pricing and promotion strategies and performance. Journal of
Retailing and Consumer Services. 45. pp.81-91.
Purvis, M., 2015. Direction and discretion: the roles of center and branch in the interwar
management of Marks and Spencer. History of Retailing and Consumption. 1(1). pp.63-81.
Reilly, A.H. and Hynan, K.A., 2014. Corporate communication, sustainability, and social media:
It's not easy (really) being green. Business horizons. 57(6). pp.747-758.
Shaikh, A.A. and Karjaluoto, H., 2015. Making the most of information technology & systems
usage: A literature review, framework and future research agenda. Computers in Human
Behavior. 49. pp.541-566.
Zokaei, K. and et.al., 2016. Creating a lean and green business system: techniques for improving
profits and sustainability. Productivity Press.
Online
Hobbs, T., 2016. Tesco trials digital receipts and self-scanner tech. [Online] Available through:
<https://www.marketingweek.com/2016/10/21/tesco-trials-digital-receipts-and-self-
scanner-tech-that-aims-to-reduce-theft/>
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