The Role of Information Technology in Business

This assignment discusses the role of information technology in modern business, highlighting its advantages such as improved productivity, financial performance, and communication within firms. However, it also touches on the disadvantages like implementation expenses and security breaches that pose a risk to companies. The conclusion emphasizes the importance of considering both benefits and drawbacks when investing in IT for businesses.

Introduction to Information
Technology

Table of Contents
PART 1............................................................................................................................................1
TASK 1............................................................................................................................................1
Classification of computers and their application in real world.............................................1
Covered in PPT.............................................................................................................1
TASK 2............................................................................................................................................1
Significance of internet...........................................................................................................1
Covered in PPT.............................................................................................................1
TASK 3............................................................................................................................................1
Use of social media in transforming the way business interact with stakeholders and
customers................................................................................................................................1
Covered in PPT.............................................................................................................1
PART 2............................................................................................................................................1
INTRODUCTION ..........................................................................................................................1
Literature Review.............................................................................................................................1
Role of information technology in success or failure of business..........................................1
Ethical and social issues that are pertaining to running business...........................................3
Difference between various types of networking technologies..............................................4
Analysis and discussions........................................................................................................5
Findings..................................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

PART 1
TASK 1
Classification of computers and their application in real world
Covered in PPT
TASK 2
Significance of internet
Covered in PPT
TASK 3
Use of social media in transforming the way business interact with stakeholders and customers
Covered in PPT
PART 2
INTRODUCTION
Information Technology (IT) refers to the method involving in development,
maintenance and utilization of computer networks, systems and software for data processing and
distribution (Eason, 2014). Firms are require to implement information technology in business
practices as it saves their money and time as well as increases its productivity. In the present
assignment, chosen organisation is Tesco which is a multinational grocery retailer operating in
the United Kingdom. This report includes role of information technology in success and failure
of business as well as ethical and social issues pertain to run business. At last, difference between
various types of networking technologies are defined in this project.
Literature Review
Role of information technology in success or failure of business
As per the view point of Dahlstrom, Walker and Dziuban, (2013), success of every
organisation rely on certain factors including selection of right technology, accurate analysis etc.
Choosing path of innovation and invest in suitable technology can improve financial figures,
increase market share and overall competitiveness of firm. Only information technology is the
technology that provides an opportunity to company to analyse particular data and plan business
activities accordingly. It plays vital role in success or failure of business.
Role of information technology in business success:
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In different phases of business, information technology plays vital role that leads it
towards success or failure. Some of the phases are defined below:
Customer support and satisfaction:
As per the view point of Holtshouse, (2013), the key to business success is high customer
satisfaction level that cannot be attain without real time Client Support Process. Success of
business rely on knowing its behaviour, needs, trends, and satisfaction level of customers.
Effective communication is an appropriate way or tool to understand issues, demands of
customers and identify their solutions. Internet technology allows Tesco to communicate with
many existing or potential customers in real time. Information technology provides various
channels to firm to interact with customers in an effective way (Holtshouse, 2013). Some of the
channels includes social media, email, online newsletters, webinar, member portals, multimedia
or text messages by smart phones. Tesco use customer relationship management system to store
valuable data related to its customers which helps it in understanding future needs and behaviour
of customers. This enables company in offer products accordingly and satisfy customers that
ultimately contributes in business success.
Resource management and globalisation:
In success of every business organisation, resource management play vital role.
According to the view point of Prajogo and Olhager, (2012), when it comes to large firms, it is
difficult for top administration to manage resources manually. These may include financial,
technological, physical and human resource. A crucial role is played by information technology
in automating complex issues of Tesco related to resource management via initiating user
friendly solutions. Earlier, most of the solutions were find out on desktops. But, now cloud and
internet technology enables firm to implement cloud based Enterprise Resource Planning (ERP)
solutions. It enables manager of Tesco to manage and monitor their resources virtually form
anywhere in the world via utilizing their laptops, smartphone, tablets or personal computer. It has
also introduced globalization idea. Tesco uses cloud based solutions in order to manage their
physical staff and offices worldwide.
Decision making:
Accuracy and speed are necessary for making right decisions. Every successful firm has
to go through the process of comprehensive market research that allows management in taking
right decisions. As per the view point of Duffy and Jonassen, (2013), research can be done in
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various ways by blogs, online surveys, group discussions, forums, interviews etc. Currently,
google analytics, big data and Microsoft CRM dynamics are great tools that helps Tesco in
extracting useful informations that impacts on process of decision making. It administers real
time responses as well as ensures data accuracy by decreasing risk of human errors.
Less requirement of leadership: Information technology leadership needs excellence in
some key areas like people, business and technology. If leadership of Tesco miss any of three
components, it will leads to IT failure. Proper execution of ERP system within firm leads it
towards long term success (Rainer, Cegielski and et. al., 2013).
Ideal communication: Proper communication is very necessary to forbid information
technology failure. Projects of firm usually influence large number of people. It requires proper
communication at all levels throughout the organisation. Use of proper communication tools
helps firm in increasing its productivity and growth.
Ethical and social issues that are pertaining to running business
As per the view point of Aral, Dellarocas and Godes, (2013), there are number of ethical
as well as social issues that may be face by TESCO while operating their business operations
using Information technologies following are the ethical issues that may be faced by TESCO:-
Computer crime:- It refers some illegal activities that are performed using computer
network which includes theft, virus infection, financial fraud etc. It is consider to most common
ethical issue for large companies which operate their functions over internet (Dahlstrom, Walker
and Dziuban, 2013). As computer crime is increasing day by day, firms are required to
emphasize on maintaining data confidentiality and ensures that data must be use in right way. In
terms of information technology, firm needs to undertake ethics of confidentiality and rightful
use of information. Companies like TESCO, relay more over internet to perform their
transactions such as selling product online. This may prove to riser as hacker may stole client's
confidential data which may affect the goodwill of the company.
Job displacement:- With the invention of information technology major social issue
arises in front of society is job displacement of people. As the introduction of IT facilities
reduces the requirement of human capital within the organisation which leads to higher
unemployment. For improving their operational efficiency and eliminating the changes of error
TESCO digitalize their majority of function by reducing number of employees working within
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the organisation. It help in reducing the cost of recruiting and remunerating the employees as
well as in increasing the operational efficiency (Forman, King and Lyytinen, 2014).
Protecting company data :- It is commonly faced ethical issue which affect the
operations and goodwill of the company. TESCO upload their data related to finance and other
operation for sharing it with their branches spread over different geographical area. This data
may be hacked by its competitors for identifying their strategies or may misuse for creating a
false image in front of customer.
So these are the major social and ethical issues which are faced by TESCO that may also
affect the operation and goodwill of the company. So, these issues must be consider while
performing their activities and must formulate the strategies for eliminating these issues.
Difference between various types of networking technologies
As per the view point of Lajoie and Derry, (2013), Network technologies refers to the
utilization of connected systems either by satellite, optical cable, wireless connections to relay
resources, data and communication in distinct parts of world. Different types of networking
technologies includes LAN, MAN and WAN.
 LAN (local area network) that covers the small area.
 MAN (Metropolitan area network) that covers larger area in comparison to LAN.
 WAN (wide area network) that comprises the largest among all (Marchewka, 2014).
Some differences between all the three technologies are defined in below mentioned table:
Basis LAN MAN WAN
Speed Speed of local area network is
high.
Speed of metropolitan
area network is
moderate.
Speed of wide area
network is low.
Used for This network technology is
used in schools, hospitals and
colleges.
This network is used
in small cities and
towns.
This network
technology is used in
the whole country.
Design and
maintenance
Design and maintenance of
this network technology is
easy and can be carried out by
an individual.
Design and
maintenance of this
network technology is
difficult and operated
In wide area network,
design and
maintenance is
difficult.
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by single entity which
can be governmental
body or a large
corporation
Operating areas This network connects
various computers in small
geographical area.
This network covers
large regions like
towns or cities.
It connects countries
together and spans
large locality. For
instance: Internet.
Analysis and discussions
It has been evaluated that information technology plays crucial role in business as it has
helped in shaping business world and society. Investing in information technology provides
various benefits to Tesco. It helps firm in saving time, improving productivity, enhancing
communication etc. Besides these advantages, there are some disadvantages also of investing in
information technology (Rainer, Cegielski and et. al., 2013). Some of the advantages and
disadvantages for Tesco in investing in information technology are defined below:
Advantages:
Saves time and increase production:
Today, businesses use technology in order to automate tasks. Investing in information
technology provides an advantage to Tesco in terms of increasing production and saving time
(Rainer, Cegielski and et. al., 2013). It reduces the paper work of firm and enables it to store all
the data and information related to existing or potential customers on system.
Improves communication:
With the assistance of various communication technology tools such as electronic mails,
smart phones, messenger etc., information flows instantly within organisation (Advantages and
Disadvantages of Information Technology, 2017). So, it is beneficial for Tesco to invest in
information technology as it can assists company in easily moving data across various
departments without having interruptions.
Improves data storage:
Use of cloud hosting services helps firm in store and backup data. It also saves paper
work and makes easy access to data remotely. With services like dropbox.com, Tesco can access
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its data or information at any place (Aral, Dellarocas and Godes, 2013). So, it is beneficial for
firm to invest in information technology.
Disadvantages:
Implementation expenses:
Sometimes, it becomes a struggle to maintain and afford expensive technology which
results loosing clients. Implementation of technology takes long time and high cost is incurred in
it. So, it may be a disadvantage for Tesco to invest in information technology.
Security breaches:
Since, the data of businesses are store on remote cloud servers, it can be accessed online
with only password and username. It creates a risk of potentially losing data to viruses or
hackers. So, there is a risk for Tesco to invest in information technology (Duffy and Jonassen,
2013).
Findings
From the above mentioned discussion, it is observed that information technology plays
crucial role in business. Success and failure of organisation highly rely on it. Use of information
technology helps company in interacting and maintaining good relations with customers and
other stakeholders (Eason, 2014). By the use of various information technology tools, Tesco's
stakeholders evaluate the performance of firm on regular basis. There are various ethical and
social issues including computer crime, privacy etc. As firm is selling its product online, there is
high risk of leaking information of customers. Different types of networking technologies are
available that helps firm in connecting with various computers through internet. As information
technology assists in improving business productivity and saves time, it will be beneficial for
Tesco to invest in it. But, besides various advantages, there are some disadvantages also of using
information technology, thus manager of Tesco requites to consider those.
CONCLUSION
As per the above mentioned report, it has been concluded that in today's world, IT plays
vital role in all modern business aspects. Information technology is used in businesses to store,
retrieve, manipulate and exchange data. It helps in improving productivity, financial
performance, communication within firm and also assists in saving time. It reduces paper work
of company and also decreases manual work. By the use of information technology, firm can
access its data related to customers from anywhere and at anytime. There are various advantages
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and disadvantages of investing in information technology. It includes improving productivity and
it saves time. The drawbacks includes implementation expenses and security breaches that poses
a risk for company.
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REFERENCES
Books and Journals
Online
Advantages and Disadvantages of Information Technology, 2017. [Online]. Available through:
<https://www.useoftechnology.com/advantages-disadvantages-information-
technology/>
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