Importance of Enterprise Resource Planning System for Tesco PLC

This report discusses the importance of Enterprise Resource Planning (ERP) system for Tesco PLC and provides recommendations for its implementation. It also explores different categories of information systems used in business organizations and their benefits.

Managing Info & Technology 2

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Categories of Information Systems..............................................................................................1
Enterprise Resource Planning System (ERP)..............................................................................4
Benefits of Enterprise Resource Planning System.......................................................................5
Recommendation.........................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Information systems can be considered as socio-technical systems that are designed for
collection of data, process of data, storage of data and distribution of data. This information
system are very important for business organization to manage information and data related to
internal operations and market place (Grudzień and Hamrol, 2016). This can improve the
operations of organization by providing better data related to demand of market and internal
operations of company. In large size organization data collection, storing, processing and
distribution is complex and difficult process. This report is providing importance of Enterprise
resource Planning systems that can be used in Tesco PLC to gain higher efficiency in operation
and market performance. This report is providing brief information about various type of
information systems that can be used in the business organization to manage their knowledge,
information and data. Different categories of information systems will be analysed in study.
Detailed information will be provided in report regarding Enterprise Resource Planning (ERP)
system that can be used by organization to manage their information and data. Various benefits
of Enterprise Resource Planning system also will be analysed in study for Tesco PLC in real life
basis. Different process will be suggested regarding ERP systems to improve the capability of
company with effective information and data management.
Enterprise Resources Planning System is known as business process management system
that provide the capability to an organization to use a system that is consists of various
applications to manage various back office operation of organization and business functions of
organization related to technology, Human Resources and services. The basic concept of ERP
system is related to implementation of centralized data base for various business processes in
order to reduce manual labour and control the work flow that exists in organization. This system
also can be explain as a platform which is used to track and monitor the real time organizational
data.
MAIN BODY
Categories of Information Systems
There are different categories of information systems are used in the business
organization. Some information systems that are most common in all organization which are:
Pyramid Diagram of organizational level and information requirement, transaction processing
system, management information system, decision support system, Artificial Intelligence and

online Analytical Processing. Are most common in different functional departments like Human
resource department, operation department, finance department, inventory control department
and marketing department (Hwang, Lin and Shin, 2018). By using various information system
these departments can effectively perform their specific functions.
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Pyramid Diagram of organizational level and information requirement
On the different level of organization information required by people is different. This
system. There are three different level are classified in this information system which are-
operational level, tactical level and strategically level. In operational management level is related
to the data of day to day transaction. The tactical data is provided to middle level of employees.
The data collected in this level is overview of operation management data. The data which is
collected in strategically management level is concerned with long term goals of organization to
help the senior level managers and leaders to take decisions for organization. This system used in
Tesco PLC to manage data and information in order to reduce the complexity in data transaction
and management.
Transaction Processing System
Transaction processing system is used by Tesco PLC to manage the information that is
related to the day to day business transaction of organization. TPS (Transaction processing
System) helps the Tesco PLC to effectively manage the information related to financial and
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Illustration : Pyramid Diagram of organizational level and information requirement,
(Source: Types of Information System: TPS, DSS & Pyramid Diagram. 2020)

goods transaction. This is one of the most important system for organization. This can help them
to take different decisions that are based on the routine transaction of organization. This system
also can help the organization to prevent major failures in business processes (Maican and
Lixandroiu, 2016). In this system stores real time data to effectively manage transaction
information in organised manner.
Management Information System
This system is used by the senior and tactical managers of organization to monitor current
performance status of Tesco PLC. The algorithm of the management information system is
designed to aggregate, compare and summarise the data which is collected from various other
systems of organization to provide effectively managed business report to take effective decision
for organization. For example sales data of organization is used by the management information
system to develop business report for senior level management of company. Some of main
example of management information system are Sales management system, budgeting system
and human resource management system.
Decision Support System
DSS system is used by senior level manager of the Tesco PLC to take effective decision
for organization. This system used the internal inputs form various system of organization and
external system of organization to provide effective and suitable solution for various problems
that are related to the performance of Tesco PLC in target market. For example this system is
used by the organization to generate effective decision in order to meet business objective
effectively.
Artificial Intelligence
Artificial Intelligence system is consists of self-learning technology. The artificial
intelligence technology is used by the organization to analyse current and previous data to
predict future conditions in business (Soomro, Shah and Ahmed, 2016). This system is used by
the organization as smart system to find patterns and relation between different types of data to
make suggest the best suitable solution that is currently faced by organization. This system also
helps Tesco PLC to avoid different possible challenges and issued in business process.
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Enterprise Resource Planning System (ERP)
The enterprise resource planning system that is used by the organization to effectively
integrate with various system that are used by different departments of organization like human
resource department, finance department, operation department, customer relationship
department and marketing & sales department of Tesco PLC. ERP system is also known as CIES
(Centralised integrated enterprise system). There are some features of enterprise planning system
that can help the organization to achieve maximum efficiency in market place. These features of
organization are related to various systems that are included in business processes.
Management Reporting
Management Reporting is known as part of management control system that is used to
gather business information regarding particular business organization. The information that is
provides by this system is in form of numerical / non numerical data or report that consists of
detail information of business (Cook, 2017). This system was designed to provide assistance to
the management of the organization to get regular information of organization business. In Tesco
PLC this system can be used to get timely business data.
Process Control System
Process control is explained as system that include the process of data collection and
distribution systems. The main role of process control system is to collect data and information
from various sources in organization. For the collection of data, Process control system used
different ways to store and organise data in right manner (Liebowitz, 2019). The main purpose of
process control system is to acquire and generate data in first place. There are different
operations are performed with in organization and the role of the process control system to
monitor and track industrial and physical process like inventory process of organization.
Sales and Marketing System
In Tesco PLC sales and marketing feature is used to manage information of various
processes that are related to marketing and sales process. Marketing operations that are managed
by organization are- identification of consumer, product development process and promoting
products and services of organization. The sales processes like selling products and services,
taking customer orders, communication with customer and providing customer support. The
complete information related to sales and marketing is collected and processes by sales and
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marketing system to get better result in these functions of organization. The main role of this
system to keep track on sales and marketing data of company.
Accounting & Finance
Accounting and financing department is one of most important part of organization.
Accounting and financing feature of ERP is used in the finance department to keep track on all
financial assets and investments of organization (Harwood, 2017). All the data related to
investments and financial assets is managed by the accounting and finance system to prepare
financial report of organization. All this type of data is used to prepare reports that are required
by law. For example functions such as payroll, local taxes, federal taxes and state taxes.
Accounting and finance system provides this financial reports on frequent basis for processes
like financial audits and annual reports of company.
Human Resource Management
Human Resource Management feature is used by the organization to manage and keep
track on people who are related to organization. The main function of this system in Tesco PLC
is to manage information and data related to processes like recruiting and employees of
organization. Some of financial assets of human resources are also tracked by this system to
manage the operations like payroll management, benefits and retirement. The performance of
employees and their attendance is also tracked by this system in company.
Inventory Control
The inventory management and control feature is implemented as information system in
Tesco PLC in order to keep track on movement of goods inside and outside the organization to
manage the availability of goods in warehouses to meet customer demand. All the real time data
of inventory is stored in this system to make changes in purchasing of raw material (Ali and
Miller, 2017). This can help company to save cost in order to keep business of organization
sustainable.
Benefits of Enterprise Resource Planning System
There are different benefits of enterprise Resource planning system that can help the
organization to improvise their performance in the target market. Some of the benefits of Enter
Resource Planning System are- Enterprise Resource Planning system is highly cost effective for
organization. It can help the Tesco PLC to reduce their investment in other information systems
by providing a unit system that is effective to perform all information management actions
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effectively (Masa'deh, Mufleh and Alrowwad, 2017). This system provides the capability to
track and manage all the function of organization on real time basis. All the functions of
organization can be monitored with this system to improve the internal operations of company.
ERP Enterprise Resource Planning system is efficient to improve the reporting and planning
operation of organization. This system allows the organization to make critical customisation in
order to meet the requirement related to business functions. ERP system can improve the overall
efficiency of organization target market. Customer services also can be improved by tracking
sales and marketing data to make effective changes in the organization process. This is important
for organization to manage safety and security of their data in order to avoid major failure in
business operations. Enterprise Planning Management system also provide capability to improve
collaboration and work flow between different functional departments of organization. ERP
system can improve the standardization of business practices. This system is also efficient to
improve the supply chain and maintain superiority with scalability. Some of the main advantages
of Enterprise resource planning system are related to effective planning of company resources
that can help the company to make proper development within the operations of company with
less cost and high marginal profit. It is how enterprise resource planning system can be used by
the company to achieve their long term goals.
Recommendation
There are different processes and methods can be used by organization to improve
performance of Enterprise Resource Planning system in Tesco PLC. There are some changes can
be made in the organization and IT department to improve the capability of company. By
providing effective training to employees can help the organization to implement ERP system
efficiently in organizational practices. By implement regular updates in technical system can
help to improve the efficiency of system. By adding cloud computing effectiveness of ERP
system can be improved. There are different changes can be implemented within the information
system of the organization to make positive development in the resource planning of the
company. All the systems that can be used in the business organization can be considered by the
company in interconnected way to obtain better result with it. All the real time information can
be analysed and managed over common interface screen for effective management and
monitoring.
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CONCLUSION
This report is concluding the importance of Information management system for business
organization in order to improve the internal and external performance of Tesco PLC. Various
information systems has been studied in report that are used by different functional department
of organization. The importance of Enterprise Resource Planning system has been studied in
report to evaluate its real time benefits for business organization (Madanhire and Mbohwa,
2016). Various suggestion also has been provided in order to improve the implementation of
Enterprise Resource management in organization. This report has been providing information of
various systems that can be used by the organization to improve the performance of organization
within their operations. Different type of information systems are used by business organization
to maintain their knowledge and information effectively. Various information management
systems has been discussed in report to develop better understanding about systems that are used
in the business organization.
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REFERENCES
Books and Journals
Ali, M. and Miller, L., 2017. ERP system implementation in large enterprises–a systematic
literature review. Journal of Enterprise Information Management.
Cook, M., 2017. The management of information from archives. Routledge.
Grudzień, Ł. and Hamrol, A., 2016. Information quality in design process documentation of
quality management systems. International Journal of Information Management. 36(4).
pp.599-606.
Harwood, S., 2017. ERP: The implementation cycle. Routledge.
Hwang, Y., Lin, H. and Shin, D., 2018. Knowledge system commitment and knowledge sharing
intention: The role of personal information management motivation. International
Journal of Information Management. 39. pp.220-227.
Liebowitz, J., 2019. Building organizational intelligence: A knowledge management primer.
CRC press.
Madanhire, I. and Mbohwa, C., 2016. Enterprise resource planning (ERP) in improving
operational efficiency: Case study. Procedia CIRP. 40. pp.225-229.
Maican, C. and Lixandroiu, R., 2016. A system architecture based on open source enterprise
content management systems for supporting educational institutions. International
Journal of Information Management. 36(2). pp.207-214.
Masa'deh, E.Y.R.A., Mufleh, M. and Alrowwad, A.A., 2017. The impact of ERP system's
usability on enterprise resource planning project implementation success via the
mediating role of user satisfaction.
Soomro, Z.A., Shah, M.H. and Ahmed, J., 2016. Information security management needs more
holistic approach: A literature review. International Journal of Information Management.
36(2). pp.215-225.
Online
Types of Information System: TPS, DSS & Pyramid Diagram. 2020. [Online]. Available
Through.<https://www.guru99.com/mis-types-information-system.html>.
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