Managing Information and Technology

This document provides an understanding of information technology and its role in business operations. It discusses different categories of information systems, including transaction processing systems, decision support systems, executive information systems, management information systems, and workflow systems. The document also explores the benefits of ERP systems in real-life business, using Tesco as an example. Recommendations for leveraging information technology are provided as well.

Managing Information and
Technology

TABLE OF CONTENTS
ABSTRCT.......................................................................................................................................3
INTRODUCTION...........................................................................................................................4
MAINBODY...................................................................................................................................4
Categories of information systems..............................................................................................4
ERP systems................................................................................................................................6
The benefits of ERP systems in real-life business.......................................................................7
Recommendation.........................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

ABSTRCT
It had been given understanding about information technology like it gave direct
communication with other peoples and provided effectiveness in the business operations,
productivity as well as performances. Numerous types of information system had been described
in report. Role of ERP systems in the business and its benefits could be evaluated in it.

INTRODUCTION
Information technology refers as a type of technology that involves in the development,
maintenance, utilize of computer systems, software, distribution data and networking for the
processing purpose. Information technology is beneficial for the company because it supports
business to become more productive. In other word, it allows organizations to work more
effectively and increases productivity. There are several benefits of information technology such
as it helps business to deliver products and services on time. it helps to improve sales revenue by
providing faster communication and better understanding of customer attitudes. It reduces human
errors and machine while working at workplace (Ilmudeen and Bao, 2018). It is cost saving
because does not need to spend time and cost to improve turnover of employee at workplace as
results leads competitive advantage within company. Information technology (IT) gives accurate
detailed about resources which helps business to plan better resourcing so that leads commercial
benefits within business on time. There is a purpose that causes numerous companies adapts
information technology such as it leads foster innovation in the business and makes more
potential. As know innovation enhance automatically improves value, enhance quality and
boosts productivity.
There is an example of Tesco company for understanding role of information technology.
It is a British multinational groceries and general merchandise retailer which is headquartered in
Welwyn Garden city, England, UK. It is third-largest retailer in the world which is measured by
gross revenue and comes in ninth-largest retailer across the world that is measured by revenue.
Organization offers product services across the world.
The brief study provides understanding about role of information technology. It includes
different types of information systems. It will explain the benefits of ERP systems in real-life
business.

MAINBODY
Categories of information systems
There are different types of information systems which are categories into different
forms. These are described below:
Transaction processing system
It is specific type electronic system which is primarily used for record keeping and
requires in company to execute business. The system is used to generate periodic report in a
scheduled manner. It is also applied for preparing and producing report on demands and
exception report as well. TPS is mainly applied for sales order entry, payroll as well as shipping
records. Basically, transaction is used in two ways i.e. batching processing and online transaction
processing. Therefore, it improves efficiency of the business at the workplace.
Decision support system (DSS)
It is used by senior management to prepare non-routine decision. The information is
captures through external and internal systems i.e. transaction processing system and
management information system by the decision support system (Bryson, 2017). The main
purpose of the decision support system is to give solution of each problems so that can get
unique change frequently. The system uses sophisticated mathematical figures and statistical
tools i.e. probability, forecasting modelling etc. and gives solution on the basis of questions. It is
data analysis tool so it uses data from external source i.e. current stock price then analyse all
aspects of problems-specific and gives appropriate decision-making process. The system is used
by organization when problem is too complexed in that state needs more information to make the
best decision over the difficult situation.
Executive information system
It is also known as executive support system which is used by senior managers in the
organization. The reason behind is that it supports to take strategic and informative decisions. It
aware about unstructured decision and develops a generalised computing and effective
communication environment instead of giving fixed application or specified capabilities. The
system is basically designed tackle change array of problems but does not use to solve any

specified problem. The system is used to incorporate data about external events i.e. new tax laws,
competitors and draw a portray on summarized information which gathered from decision
support system and management information system (Busse, Meinlschmidt and Foerstl, 2017).
Thus, EIP system tracks critical data and decreases time while strategic management uses
compressed information to make strategic plan.
Management information system
The system gives management routine summary that is based on the basic operations of a
company (Fleig, Augenstein and Maedche, 2018). The system provides routine information about
managers and decision makers as well. It helps in different department of organization such as
production, marketing and finance where owner of the business can monitor manager’s activities
within business. The main goal behind installing management information system within
business is to enhance operational efficiency. The system provides the information which is
needed to create the structured decision. Based on the information manager makes judgemental
call like inventory must order for the second quarter on the basis sales of first quarter. The
system includes sales management system, budgeting system and human resource system that
uses to make structured decision.
Workflow system
Ait is rule-based management system which guides, coordinates and supervises assigned
sets of tasks that are aligned to form business process. There are three types of workflow
software’s i.e. administrative workflow systems that access on the tracking of expense reports,
texts & messages and travel requests. While Ad-hoc is also workflow software that deals with
designing of products, sales proposals and creates strategic plans (Tramullas, Garrido-Picazo and
Sánchez-Casabón, 2018). As same production workflow system that concerns with mortgage
loans and claims insurance. It is internal-based type system that combines with e-mails. It is
basically designed to act as server architecture and use file server.
ERP systems
It is a centralized information system which gives tight integration along with all main
enterprise operations such as HR, planning, sales, customer relationship, finance and other
connected application operations. The system is also known as centralized integrated enterprise

system. It is powerful business tool because it helps to integrate different types of information
relevant to business functions. The system is used by various organization for arranging and
concise the crucial parts of it’s businesses. It has various software applications that are crucial for
the organization because it supports to develop and implement resource planning by compressing
overall the processes which is required to execute its business with a particular system. The ERP
software systems are purchasing inventory, sales, marketing, integrates planning, human
resource and others. the software applications lead effective communication between different
departments and easy to share information more effectively with the remain of the business. It
gathers information of numerous divisions, develops information for other parts which can be
used productively. ERP system interlinks business part to each other and aware manager about
overall functions related to finance, production, distribution and finance. the system is used to
manage schedule of the daily activities as result gets benefit’s in finance. organization uses ERP
system because it assists to manage the record of the staff and allows organization to create plan
the growth based on the individual performance. It is cost effective system and the main
advantages is that it is greater instead of investment. In addition, it develops long-term planning
and management. It declines multi-management software and assists to integrate the
interconnection between marketing, sales, quality control, product processes, stocks, customer
relationship management, information technology and other functions in a specified database. It
eliminates the chance of typing errors and re-entry and arrange database for the whole business
(Samuel, Holowczak and Pelaez, 2020). The ERP system is act as merger because it merges
financial and operational information that allows the business to examine needs of organization
and gives response in highly effective manner. The system supports company to expand it’s
business in global market by using internet. To operate the system requires expertise and highly
experienced team so that gets effective result within workplace. It gives assurance to enhance
productivity and profitability by managing data of management. It also assists to supervise
customer’s attitude and enhance efficiency of business to make plan accordingly. It is known as
cost cutting system by eliminating non-compatible technologies and improve effectiveness of
business operations. Apart from this, it supports in the management of material and assures that
material is not stolen. It is automated process of purchasing and maintain material after
supervising available stocks. There is various type of ERP systems such as ASP R/3, JD Edward,
Microsoft Dynamics AX and others. Customer relationship management is a type of ERP system

which helps to keep customer satisfy by meeting their objectives. CRM system gathers detailed
information about customer and all employees who contacts initially with customers.
The benefits of ERP systems in real-life business
Tesco is multinational company which is famed as general merchandise retailer in the
UK and offers products services worldwide. Organization adapts ERP system to tackle
workplace and customers as well. ERP system leads beneficial impact on organization
performance. Benefits of ERP systems are explained below:
Increase productivity
The system helps Tesco by enhancing overall efficiency by compressing all important
functions. In addition, it manages numerous processes i.e. marketing, supply chain management,
accounts and human resource processes (Wager, Lee and Glaser, 2017). Tesco gets positive
impact on task delegation because it automates day to day routine tasks and easy to display data
by analytical report. The ERP system provides visual dashboards facility that allows managers to
supervise overall parameters quickly and make better decision. Thus, it improves productivity of
products and operations without creating uncertainty in the operation.
Promotes culture of collaboration
The ERP system provides smooth flow information within numerous departments of
organization and supports team to work together by communicating effectively. Tesco gets
positive impact of the ERP system on the business operations because it gives direct
communication between departments and provides smooth flow of information that causes
confusion does not take place (Jayawickrama, Liu and Smith, 2016). The system helps to build good
relation between management employee and creates healthy workplace. it boosts innovation as
well that causes organization easy to collaborate with other potential companies for promoting
business in large scale.
Sales and Marketing
Tesco easy to manage whole sale cycle and automating marketing process by the help of
ERP systems. The system restores important sales data as per customer inquiries, orders,
quotation and invoices. Resting sales order tracks and relays information to team member by

alerts or notification (Kumar, Parthiban and Adhiyaman, 2018). It is a typical type sales processes
that are automated as result reduces workload of the organization sales team.
Finance management
Finance management is a type of ERP system which supports to arrange cash inflows and
outflows. It integrates all daily basis financial and accounting functions i.e. leader management,
balance sheet, bank reconciliation and expenditures. Finance management gets positive impact
in their function by the ERP systems because Finance management modules manages taxation
and ensures that overall functions are performed under current government regulation (Badewi
and Shehab, 2016).
Recommendation
 Organization can take more advantage of information technology by recruiting
experienced and trained team which helps business to take advantage of these
technologies. So, organization should adapt effective recruitment strategy.
 Complementary technology is another strategy which can help organization to manage
product life cycle management (PLM), customer relationship management, supply chain
management and enterprise asset management. These technologies are cost effective and
helps company to improve selling infrastructure as result can achieve high revenue within
business.
 Artificial Intelligence is another strategy which helps to improve effectiveness of ERP
systems. So, organization should adapt this strategy because it helps business to expand
it’s business in global market along with large market shares of products.
CONCLUSION
The brief study given understanding about information technology that led faster
communication, electronic storage and protected crucial documents. It demonstrated role of
information system in business operations. Categories of information system i.e. direct
information system, management information system, executive information system, workflow
system and others has been concluded in report. Transaction processing system considered as
stock control system because it kept information about stock availability in the warehouse. While

DSS applied to get effective impact on decision-making process but could not make any
decision. The brief study can be summarized ERP system that it quite secured system where no
information cannot leak. It provided number of software application based on the business needs
and nature of the business. ERP system led various benefits in the organization such as
established good relationship with customers, maintained records of selling and acted as control
storage system. It improved productivity of organization by providing direct access to manager
and integrated daily basis business activities.
REFERENCES
Books and Journals
Ilmudeen, A. and Bao, Y., 2018. Mediating role of managing information technology and its
impact on firm performance. Industrial Management & Data Systems.
Bryson, J., 2017. Managing information services: a sustainable approach. Routledge.
Busse, C., Meinlschmidt, J. and Foerstl, K., 2017. Managing information processing needs in
global supply chains: A prerequisite to sustainable supply chain management. Journal
of Supply Chain Management. 53(1). pp.87-113.
Tramullas, J., Garrido-Picazo, P. and Sánchez-Casabón, A.I., 2018, June. Use of Wikipedia
categories on information retrieval research: a brief review. In Proceedings of the 5th
Spanish Conference on Information Retrieval (pp. 1-4).
Samuel, J., Holowczak, R. and Pelaez, A., 2020. The Effects of Technology Driven Information
Categories on Performance in Electronic Trading Markets. arXiv preprint
arXiv:2002.10593.
Wager, K.A., Lee, F.W. and Glaser, J.P., 2017. Health care information systems: a practical
approach for health care management. John Wiley & Sons.
Jayawickrama, U., Liu, S. and Smith, M.H., 2016. Empirical evidence of an integrative
knowledge competence framework for ERP systems implementation in UK
industries. Computers in Industry, 82, pp.205-223.
Kumar, C.M., Parthiban, M. and Adhiyaman, A., 2018. Implementation of ERP in an
Automobile Manufacturing Shop Floor. International Research Journal of Automotive
Technology. 1(3). pp.75-86.

Badewi, A. and Shehab, E., 2016. The impact of organizational project benefits management
governance on ERP project success: Neo-institutional theory perspective. International
Journal of Project Management. 34(3). pp.412-428.
Fleig, C., Augenstein, D. and Maedche, A., 2018, September. Designing a Process Mining-
Enabled Decision Support System for Business Process Standardization in ERP
Implementation Projects. In International Conference on Business Process
Management (pp. 228-244). Springer, Cham.