Managing Information and Technology Essay - Sainsburys company

Managing Information
and Technology

Table of Contents
INTRODUCTION...........................................................................................................................3
Aims and objective of ERP system.................................................................................................3
Category of Information system......................................................................................................4
ERP System.....................................................................................................................................5
Benefit of ERP system in real life business....................................................................................6
Recommendation ............................................................................................................................7
Conclusion ......................................................................................................................................8
References.......................................................................................................................................9

INTRODUCTION
Information technology includes the use of physical devices like computers, network and
storage to create, store, secure as well as exchange all electronic data. It is very essential for
company to manage their information technology on the basis of needs and priorities of an
individual. This helps in improving overall value chain of an organisation with the use of
technology by involving a network between internal and external environment. To carry out this
essay, Sainsburys company has been chosen which is the second largest supermarket chain of
United Kingdom that uses Enterprise Resource Planning system to manage the business process
as well as back office function that is related to technology. This essay will cover topics like
aims and objective of ERP system, various category of information and ERP system. Moreover,
discussion will be made on benefit of ERP system in real life business. Furthermore, conclusion
and recommendations will be given in favour of respective company (Laudon and Laudon,
2015).
Aims and objective of ERP system
Enterprise resource planning (ERP) system is a management software used for business
process to enhance their operation efficiency. ERP is widely applied software that is used in all
companies including medium and small size companies. Herein, Sainsburys ERP is used for
different measures like inventory control, maintaining long term customer relationship and
managing human capital effective. Therefore, ERP serve huge benefit to company in
maintaining the data electronically as well as improve service experience by respective
company.
The main aim or objective behind implementing ERP software is that it helps in
enhancing the customer base of company. Herein, Sainsburys has become market leader not
only because it provide high quality services but also it has increased the interaction between
customer and company in better manner.
Moreover, this system provides result at real time due to which respective company can
make faster decision to fulfil short term as well as long term objective.
Apart from this, ERP system support multiple currencies as well as languages due to
which Sainsburys if operate or widespread its business outside UK won't find difficulty due to
flexible software (Brown, et.al. 2012).

Category of Information system
Information system is a tool which helps to collect, manage and store different type of
data and processing that into information. After the introduction of computers role IT has
increased due to efficiency and effectiveness it provides in every sector of organisation.
Nowadays, not even a single company work without using computers. Management, operational
and tactical level have created the categories of IS in business. It is now being used at every part
of business organisation thus, plays a major role in operation of business. The operational level
performs various task such as dealing directly with the customers, managing cash and credit
transactions. This helps to identify regular, loyal customers so that they can be used to increase
sales and profit. Decision making for managers has become mush easier as company's have large
amount of data available about their competitor's strengths and weakness. They can compare the
data and then make judgement.
Sainsbury is one of the most successful chain of supermarkets. It was established in 1869
by John James Sainsbury. Effective distribution method through technology has led to increase
in the sale of it's business. Super market uses technology to operate control of stock and
checkout process. Respective company uses transactions processing system to manage data
collection of customers, suppliers and cash transactions. Systematic management of small
activities through IS provide strong support to the whole management.
Moreover, on tactical part company uses decision support tool for production planning,
financial planning, marketing planning. Use of IT find strategic solution and help in making
improved actions plan for the middle level managers. Human resource management is used to
analyse the human requirement to perform the business. Management of employee's attendance,
their salary, personal information, type of job they are performing and so on. Furthermore,
management in the company take big decisions such as production of goods, designing of store,
quality of goods and services. Management information system helps to solve issues associated
with these (Brown, et.al. 2012).
Accuracy is one of the key features of suitable information system, there are 100%
chances that the information provided by information system is reliable. If any mistake has
occurred then it will be fault of employee or the user working on it. This should be designed by
IT department based on company's structure as it is time saving feature which solves analytical
problems. Millions of calculations can be performed within a very short period of time. In a

business administration, management of finance is very important task, doing this task manually
took lot of time but the introduction of Information System has solved this issue. Due to it's high
storage characteristic large amount of data can be stored which can also be classified further
based on their nature, that makes it easier for user to extract distinctive data. Internet innovation
in IT sector has improved the communication by leaps and bounds through management
information system, any relevant content can be pass to specific people at the same time.
ERP System
Enterprise resource planning is a system software designed to manage day to day
operations and essential areas of any organization such as accounting, human resources,
customer relationship management, planning, marketing, productions and material management,
supply chain management and many more. This system coordinated and combines various other
functions into one complete system to provide information as and when required and appreciates
the role of information system in the organization. Such system enables the growth of an
organization by managing the complex operations and eliminated duplication of data to provide
better services. There are various ERP systems used by different organizations to manage the
day to day operations. Some of them are JD Edwards Enterprise One, Microsoft Dynamics AX,
Tech Cloud ERP, SAP B1. The description of each is given below (Galliers and Leidner, 2014):
Jd Edward Enterprise One: JD Edwards Enterprise One system is a framework of
Enterprise Resource Planning and supply chain management which provides techniques and
tools for all types of businesses to simplify and conduct their operations successfully. The
selected system performs the operations without duplication of work and providing all the data
in unified manner. Sainsburys if uses this software, helps in combining business value, standards
based technology and experiences to provide solutions through minimum investment.
Microsoft Dynamics AX: Microsoft Dynamics AX system is applicable in the mid sized
and large organizations. It enables an organization to have full control in its operations and
provides functionalities in management of finance, customer relationships, projects, supply chain
and human resources to increase efficiency and promoting growth. If Sainsburys uses this
system helps in diversifying business globally and providing opportunities through simplifying
international processes of performing various operations to collaborate effectively with
customers, suppliers, employees and partners.

Tech Cloud ERP: Tech Cloud ERP system is applicable in small and mid sized
organizations and designed with advance modules and features which are required in the present
dynamic scenario to perform operations as to provide 24*7 services as to reduce the burden on
the organizations. Herein, Sainsburys if uses this system, it helps in maintaining records for day
to day activities and activates reports to send alert notifications for the entire organization and
keeps the reports confidential as only limited users can access or view data as well as
notifications and helps in understanding the role of information while performing the operations
(Christiansen et.al., 2014).
SAP B1: SAP B1 system designed to provide tools and techniques for performing
operations in financial, human resource, purchasing, procurement, warehousing and production
management. Such system helps in improving the efficiency in performing operations by
providing proactive notifications which are actionable. Sainsburys applies this system to make
decisions and take corrective actions by using real time reports which helps them in performing
multiple tasks.
Therefore, among all Sainsburys mainly uses Microsoft Dynamics AX, SAP BI ERP
systems which helps in providing opportunities to diversify its business globally and to take
correct decisions in order to perform its operations efficiently and effectively by eliminating
inefficiency in performing operations, duplication of work, reducing wastage and increasing
productivity.
Benefit of ERP system in real life business
Information system refer to the network of hardware and software program that is used
by people or an organisation to collect, create, filter and process data. It's basic role is to support
management operations and promote effective decision making in the favour of company. The
role of ERP is to manage information system to integrate the functional area of purchasing,
planning, inventory, marketing, human resource and finance (Bilbao-Osorio, Dutta and Lanvin,
2013).
Database: ERP system can benefit Sainsburys by tracking the data related to raw
material, business resources, cash reserves, production capacity as well as purchase order. This
data act as a information system that can be availed by various department like manufacturing
and sales to carry out the business operations by managing their connections with stakeholders.

Forecasting: Among all ERP systems respective company mainly uses Microsoft
Dynamics AX this helps the managers to gain as accurate data as possible, due to which business
gets benefited by making realistic estimates about future. Hence, with the role of information
system as well as ERP respective company can make effective decision (Schwalbe, 2015).
Cost management: As the role of information system is to analyse data, along with that
ERP provide accurate data in real time. This helps respective company to reduce operation cost
by selecting most appropriate solution as well as vendor to get maximum rate of return on
investment.
Security: Sainsburys which is one of the market leaders of self serve retail chain also
deal online with their prospectus. They have more than 1400 shops, thus their main concern is
security and safety of data. Therefore, ERP resolved their security concern for huge information
system as it help company in improving accuracy and brings consistency to serve various chains.
Cost effective: ERP benefit company by proactively managing its operations as well as
preventing delay and disruption work. Hence, cost saving helps respective company in making
quick decision by choosing most appropriate alternative of given problem.
Customized service: The biggest advantage which company gets for using ERP system is
complete customization. Thus, various vendors of ERP offer various application which business
can implement on the basis of their need. Therefore, customizes application can help respective
company to achieve best result.
Recommendation
Sainsburys should uses ERP to build strong internal project of an organisation as it
provide most appropriate solution to company. Thus, this solution needs to be implemented on
time, otherwise even after adopting most appropriate solution does not give expected result if not
implemented on right time.
While choosing most effective method of ERP, company must train their employee
effectively. As the data of ERP are accessed by various department to conduct the operation.
Hence, 360 degree visibility as well as informed decision can only be achieved into operations
by training and development.
Moreover, it is very tough for company to manage all the information as well as data
manually. Thus, adoption of Information system act as solution by electronically maintaining

sophisticated database for company. Hence, respective company must use it to store, and
analyse the information.
Furthermore, the employees of above mentioned company should make the use of
information technology to get the information from all the sources and uses it to get the best
suitable decision in favour of company.
Conclusion
From the above essay it has been concluded that enterprise resource planning plays a
significant role in managing information technology by tackling problem of customer service,
inventory storage, quality issues and so on. Moreover, information system offer support of
decision making to ERP, which then further assist solution to Sainsburys by offering real time
result. Furthermore, among various enterprise resource planning respective organisation mainly
prefer Microsoft dynamics AX as well as SAP BI ERP systems. These ERP's ensure operations
are conducted efficiently by reducing delay, wastage and duplication of work. Apart from this it
help company to gain competitive advantage over its competitors by improving service
experience for its customers (Amies, et.al. 2012).

References
Books and Journal
Laudon, K. C. and Laudon, J. P., 2015. Management Information Systems: Managing the Digital
Firm Plus MyMISLab with Pearson eText--Access Card Package. Prentice Hall Press.
Brown, C. V., et.al. 2012. Managing information technology. Pearson Education, Inc..
Galliers, R. D. and Leidner, D. E., 2014. Strategic information management: challenges and
strategies in managing information systems. Routledge.
Schwalbe, K., 2015. Information technology project management. Cengage Learning.
Bilbao-Osorio, B., Dutta, S. and Lanvin, B., 2013, April. The global information technology
report 2013. In World Economic Forum (pp. 1-383).
Christiansen, et.al. 2014. Method and system for assessing, managing, and monitoring
information technology risk. U.S. Patent 8,744,894.
Amies, A.P., et.al. 2012. Managing user access entitlements to information technology
resources. U.S. Patent 8,132,231.

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