Role of Information Technology in Retail Business - Tesco

This report discusses the role of information technology in the retail business, with a focus on Tesco. It explores the different types of networking technology, ethics and social issues, and the importance of intranet and internet in the business. The report also covers the stages of the system development life cycle.

INFORMATION
TECHNOLOGY

Contents
INTRODUCTION...........................................................................................................................3
LITERATURE REVIEW................................................................................................................3
2.2 Information Technology and its role in retail business in general.........................................3
2.3 Networking Technology, different types in general..............................................................3
2.4 Ethics and Social Issues of using technology in general.......................................................4
2.5 The importance of Intranet and Internet in business in general.............................................5
DISCUSSION AND ANALYSIS...................................................................................................5
3.1 Role of Information Technology...........................................................................................5
3.1.1 Types of different Information Systems.............................................................................6
3.2 Types of Networking Technologies that used in the selected business.................................6
3.3 Ethics and social issues in selected business.........................................................................6
3.3 The importance of Intranet and Internet in the selected business..........................................7
3.4 List and explain the different stage of system development life cycle..................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Information technology can be defined as the study or use of systems (especially computers
and telecommunications) for storing, retrieving, and sending information. This technology is
been used and operated by business so that they can carry out their operations and day to day to
activities effectively. Present report will lay emphasis on Tesco which is one of the largest
British Grocery store. Assignment will focus on the information technology and its role in retail
business. It will also discuss the different type of networking technology. Studies will also lay
emphasis on the ethics and social issues of using information technology in general.
LITERATURE REVIEW
2.2 Information Technology and its role in retail business in general
As per the view of Lloyd, (2020) information technology has one of the most important
role in retail industry. It has been analyzed that in the era of globalization a lots of retail
organizations are been involved in making use of advanced technology. It has assisted them in
bringing out more innovative and creative products and services, so that they can attract large
number of consumers towards them. Information technology has also helped the retail firms in
improved data process. Now they can collect and store information related to their consumers
and employees effectively. This aspect has helped retail business in analyzing the needs and
demands of both consumers and employees according to the information stored.
They have able to bring new and innovative goods and services which have assisted them
in growing of their business. Information technology has helped companies in processing the
information faster so that the business can be run effectively. It has assisted firm in achieving
their set target. Innovation has supported the retail business in enhancing the quality of goods
and services provided by retail business. It has also assisted them in increasing the productivity
of their firm. The other role of information technology can also include making communication
process more effective. It has been analyzed that IT streamlines communication. Business now
can easily interact with other organizations by making use of advanced technology such as social
media platforms. This has assisted them in making a better bond with consumers.
2.3 Networking Technology, different types in general
In accordance with Bessen, (2017) it has been analyzed that there are eleven n types of
networking technology which are used in present time. It includes Local area network (LAN).

This type of network connect group of computers so that the information can be shared with only
those group of computers who are connected with each other. LAN is generally used by
companies who operate at single place and also at small scale. Personal area network (PAN) is
that type of network in which only one computer is been linked with a printer or phones. This
type of network is generally managed by one person. (WAN )Wireless local area network. It
makes use of Wi-Fi to connect with other computers. These devices are not dependent on the
physical cables. Campus area network (CAN), in this type of network computers of universities
are been connected so that the information can be shared across schools and destructs. They can
also be connected with various buildings that are building closely to each other. This had made
interaction easier. It has been analyzed that making use of all these networks has made the
communication easier. Metropolitan Area network (MAN), this network is basically larger than
CAN, WAN and LAN. In this type of network, the internet is been shared in whole town or
district. This network can be managed by either an individual or by a company.
2.4 Ethics and Social Issues of using technology in general
As per the view of Trantopoulos and et.al., (2017) it has been analyzed that various retail
organization has been engaged in making use of information technology. There are various social
and ethical issues associated with making use of Information technology. Company who are been
involved in making use of advanced techniques needs to make sure that no hacking of the
personal data of consumer and employees has been done. The data stored by organization of
consumers and workers must be kept confidential. They are not allowed to leak any of their
personal as well as professional information as it is against the ethical code of conduct. It has
been analyzed that that retail organizations have the ethical responsibility to provide protection
to their stakeholders under all circumstances.
Firm needs to be engaged in aiming sure those customers are given chance to chose how
the secondary information which has been given by them is used by company. Retail business
also needs to ensure that the data which has been shared by them online does not hamper or hurt
the culture, attitude, thoughts and values of any employee or customer who is connected with
company. It has been analyzed that the company must not be engaged in doing any type of
internet abuse. They must not be involved in doing any type of unethical or illegal acts by
making use of advance technology. This aspect can hamper the goodwill and brand reputation of

firm. It has also been analyzed that no fraud can be done to the consumers by company by
making use of information technology as this is against the rule of ethics. Moral duty of retail
organization is to protect consumers from any type of fraud and errors.
2.5 The importance of Intranet and Internet in business in general
In accordance with Baller, Dutta and Lanvin, (2016) Intranet can assist the retail
organizations in keeping up the important documents which are essential for company up to date.
It also provides support to the firm in interacting with their team meters. It has been analyzed
that making use of intranet can be really beneficial as it provides the retail business with better
secure space for storing. This type of network when used by firm also provides the organization
assistance about speeding up the procedure related to work flow. It makes business transactions
better. On the other hand making use of internet is also very useful, as it assist them in
connecting the retail organization with consumers. Internet has helped retail business in
communication with customers so that their needs and demands can be analyzed. It has assisted
the company in increasing the satisfaction level of consumers which has supported them in
creating consumer loyalty. It has been analyzed that internet has assisted the various retail
organizations in taking the feedback from the consumers. This has supported them in
improvising the quality of services that has been provided by company. It has also supported the
firm in increasing their efficiency.
DISCUSSION AND ANALYSIS
3.1 Role of Information Technology
Information technology has one of the most important roles in the business operations. It
provides support to Tesco in doing strategic thinking. Various problems can be solved by firm
through main use of information technology. It also supports them in managing and organizing
all task related to business. They also provide the company with platform where they can interact
with consumers as well as their employees. They are also been able to solve problems and issues
faced by the workers and employees online. Information technology has assisted Tesco in
enhancing their operational efficiency. It has helped them in growing.

3.1.1 Types of different Information Systems.
It has been analyzed that Tesco is been using management information system. This
software is basically used to analyze the information of all employees so that better decisions can
be taken. It supports the firm in increasing the coordination and cooperation level with workers.
It is really necessary for achieving the goals and objectives. It has been analyzed that Tesco also
make use of decision support system (Brooks and Pomerantz, 2017). It assists them in evaluating
and interpretation the collected data. This software also assists them in solving problems so that
adequate decision can be made. It also helps them in increasing the operational efficiency of
firm. It is really necessary for growth of Tesco. It supports company in making high quality of
decisions.
3.2 Types of Networking Technologies that used in the selected business
The various types of networking technology which is being used in Tesco LAN and WAN.
These networks have assisted them in sharing information with their employees through wireless
technology. It is really easy to share data with this type of network. They have been able to
coordinate and manage the operations of business firmly by making use of selected networking
technology. Tesco has also been engaged in providing training to all the employees who have
been involved in making use of this technology. It has assisted them in enhancing the capabilities
of workers so that productivity can be increased.
3.3 Ethics and social issues in selected business
Tesco has adopted various policies so that the consumers or employees do not face any
type of problem which can reduce the brand reputation of firm. Tesco is been engaged in making
sure that no personal information of employees as well as the consumers are been leaked. They
make sure that the data remains confidential so that consumers and workers trust can be raised.
Tesco also makes sure that they are been engaged in following the ethical code of conduct so that
satisfaction level of employees and consumers can be increased (Benckendorff, Xiang and
Sheldon, 2019). This will also help them in creating belongingness and loyalty of both
consumers and employees. Tesco by behaving ethically has been able to increase the sales of
their goods and services.

3.3 The importance of Intranet and Internet in the selected business
Tesco make use of both Intranet and internet while running the operations of their
business. Intranet has assisted them in analyzing the needs of local consumers. It has assisted
them in providing the better secure space where the data can be analyzed and evaluated. This
also helps them in protecting the data. Tesco is also engaged in making use of Internet. It has
assisted them in promoting the goods and services of them online and too worldwide. They have
been able to connect with consumers all over the world. It has assisted Tesco in increasing their
business and expanding their market share.
3.4 List and explain the different stage of system development life cycle
System development life cycle includes the following stages that is been used by Tesco in order
to grow. It helps in main ting the software that is being used by firm.
Planning: In this stage Tesco is been engaged in thinking about the type of software
which they will used in the firm.
Requirements: In this company will be engaged in analysing the resources that will be
needed to install the software.
Design: Company will think about the design of software which will be used by them so
that problems can be solved.
Testing: In this testing of the software will be done by Tesco. It will assist them in
realising whether the software will be capable for the firm or not.
Deployment: Tesco will be involved in analysing the needs relate to installing the
software. This will assist them in adequately using the software.
Maintenance: In this the company will be engaged in maintaining the software, they will be
involved in time to time update of software.
CONCLUSION
From the above study, it has been summarised that various retail organization has been
engaged in making use of information technology. There are various social and ethical issues
associated with making use of Information technology. It has been analyzed that internet has
assisted the company in analyzing the needs and demands of consumers. They have also
interacted with consumers by making use of internet. It has assisted the firm in building better
relationship with consumers. It has also helped firm in increasing their profitability as well as
sales.

REFERENCES
Books and Journals
Lloyd, I., 2020. Information technology law. Oxford University Press.
Baller, S., Dutta, S. and Lanvin, B., 2016. Global information technology report 2016. Geneva:
Ouranos.
Benckendorff, P.J., Xiang, Z. and Sheldon, P.J., 2019. Tourism information technology. Cabi.
Trantopoulos, K. and et.al., 2017. External knowledge and information technology: Implications
for process innovation performance. MIS quarterly, 41(1), pp.287-300.
Bessen, J., 2017. Information technology and industry concentration. Boston University School
of Law Law & Economics Paper Series, (17-41).
Brooks, D.C. and Pomerantz, J., 2017. ECAR study of undergraduate students and information
technology (Vol. 4, No. 3, p. 3). 2017.

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