Impact of IT Systems in Business Organization

This report discusses the impact of IT systems in solving business problems and improving operations, performance, and sustainability. It explores the use of IT systems in different functions of a business organization and provides recommendations for practical IT solutions.

INFORMATION
TECHNOLOGY

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Impact of IT systems and their contribution in solving business problem...............................................3
Use of IT systems in different functions of business organization...........................................................4
Overview of the company........................................................................................................................5
Description of the processes intended for transformation........................................................................5
Different ways in which IT systems store and process data.....................................................................6
Assistance of proposed system in customer relationship management....................................................7
Suggestion of data management techniques............................................................................................7
Communication Management..................................................................................................................8
Utilization of IT systems for supporting value added change for improving business operations,
performance and sustainability................................................................................................................8
Recommendations of practical IT solutions for common business problems found within the
organization.............................................................................................................................................9
CONCLUSION.........................................................................................................................................10
REFERENCES..........................................................................................................................................11
Books and Journals................................................................................................................................11

INTRODUCTION
Information Technology can be determined as an attribute that allows business organisation to
have a systematic record and maintenance of the data management, client contacts, essential files
and documents and other forms of software and cloud management system (Lloyd, 2020).
Technology assist business institution in regulating their business functions with great efficiency
and effectiveness. It also enhances the scope for advancements within the business operations as
well. The proposed report will highlight upon the impact drawn by IT systems within the
business organisation. It will also highlight upon the relationship management, communication
management and data management assistance provided by information technology within the
business organisation. The report will also involve the discussion relating to utilisation of
information technology in facilitating value-added changes and alteration for improvisation of
business practises. Several recommendations pertaining to IT solution will also be incorporated
within the report.
MAIN BODY
Impact of IT systems and their contribution in solving business problem
Information technology has a very powerful impact upon their business activities and practices
carried out by the business forms within the market environment. Technology has completely
altered the traditional ways and means of doing the business and has led to the transformation of
a new and advanced way of facilitating business activities within the market domain. Each and
every business organisation faces numerous day to day problems within business roles and
functions in constant manner. Technology is a component that has helped the business
organisation in solving their day to day problems by the utilisation of creative and innovative IT
solutions that enhances the ability of the organisation to achieve excellence and perfection within
their business management operations. Information technology has given rise to various
technical advancements that can be aligned to the business operations of the company in order to
assist them in achieving more productivity and profitability through their business practices in
the market (Alam, 2020). Information technology has also elevated the standard of efficiency
within the work operations by allowing the employees to deliver their duties and task in a more

systematic and organised manner. The communication and management problems have also been
reduced within the business sector due to the emergence and Optimisation of information
technology tools and techniques within the business line up by the enterprises.
Use of IT systems in different functions of business organization
Information technology plays a very significant role within each and every business function of
enterprises. It delivers a very prominent assistance in every department of an organisation by
serving more smooth and flexible management within the same. The current standard of
information technology can be considered to be one of the most essential in important
components in regulating the roles of business management functions within institution.
Production and Operations
Information technology provides assistance in regulating the operations and production actions
of the company in a more flexible and time efficient manner (Zemlickienė and Turskis, 2020). It
provides various technological reforms through which company can achieve major production
goals and meet the global requirements of the business environment.
Finance and Accounting
In terms of accounting procedure, business organisation relies upon accounting software in order
to track the sales and operations, bills and invoices, record management, financial statements etc.
There is certain IT software technology which provides the necessary support for business
organisation by alerting them about various taxation requirements and bill payments in a
consistent manner.
Marketing
Marketing is an extremely vital business function that allows the business organisation reach
global audience within fraction of seconds. This has been made possible with the utilisation of
information technology in leading the marketing plan and objectives of the firm in a prominent
manner. The emerging trend of digitalisation has been incorporated by almost every corporate
enterprise in order to attract huge percentage of customers towards organisational offering and
retain the same. Marketing has become completely digitalised due to information technology.
Various new forms of marketing such as content related marketing, online marketing, email

marketing, digital marketing, influencer marketing, social media marketing etc. has been
emerged in past few years because of excessive needs and dependency of firms on the
technology.
Overview of the company
Tesco is one of the most successful market leaders within the supermarket industry in UK and
other different parts of the world. The company was founded by the contribution of Jack Cohen
in the year 1919( Dinata, 2020). The company provides a variety of goods and services to their
customers such as home and technical appliances, apparel, children products, footwear,
beverages, confectionery, food-based products etc. Tesco is a well known and booming business
enterprise within the supermarket industry and has the acquisition of highest market share within
the same.
Description of the processes intended for transformation
Tesco is a global enterprise which has gone through a complete digital transformation in order to
raise the standard of customer service provided by the company within the market. The business
as well as operations model of the company has also been modified through the capitalisation of
information technology. Moreover, the investments and financial procedures facilitated by Tesco
are aligned with information and technical advancements.
 The In-store experience provided by Tesco has been digitalised in order to facilitate more
advanced and innovative service experience to the target consumers. The utilisation heat
sensing technology for analysis and monitoring the line ups at the stores as well as
advanced scanners within the stores has enhance the operational productivity of the
management operation.
 The incorporation of cameras at different areas of the store has made it very easy for the
management to monitor the employees and customers activity (Kumar, 2020).This has
further helped the firm to facilitate the right decision making within certain circumstances
where it is important to make a judgement regarding of particular situation.
 The customer queues have also been reduced lately with the utilisation of information
technology as the customers are provided with the facility of self service checkout
through which they can save their time and complete their shopping efficiency.

 The investment of Tesco in online store has increased the profit margin of the company
as well. Through online stores, the company is able to generate better sales. The online
services are also very popular within the customer segment and have helped the company
to increase the percentage of customer retention as well.
Different ways in which IT systems store and process data
There are several leading IT system available within the technical environment through which
business organisation’s data can be stored and processed advance and prominent manner.
Server based Storage
Business institution can also store and process their data with the optimisation of service-based
storage. The respective IT tool allows storing the data and essential information of an
organisation at a particular data centre which is presented within the official business websites.
The respective technological advancement within the IT storage provides high-level speed and
controlling features to its users. It provides the opportunity to the organisation through which
they can incorporate variety of data across the server chain (Muhammedrisaevna, Mubinovna
and Kizi, 2020). Server-based storage also provides several perks to its users by facilitating a
virtual network through which the expenditure occurred upon the hard drive can be reduced to
minimum. The respective form of data storage tool is more adaptable and affordable by highly
successful and leading business institution as it is very costly as compare to different other forms
of data storage tools in the field of IT. However, despite the price, server based data storage are
very effective to the management and can help the organisation to lessen their overall
management expenses within constant utilisation in the long run.
Cloud Storage
The first and foremost method of data storage and processing can be characterised as cloud
storage. It is a data storage tool that allows the business organisation to access the data at any
point of time at any given place. It is an information technology tool that assists the business
firms to store their data in a flexible manner and gain access to the same at any given time. It
provides high-tech privacy and protection to the data and restricts unauthorised access as well
(Sofyani, Riyadh and Fahlevi, 2020). Expansion of data storage as well as the maintenance of
data is also facilitated in an organised manner through the utilisation of cloud computing

technology. It also promotes better communication, interaction and collaboration within the
organisational members as various team members can access the cloud data with the permission.
Traditional Data Storage
Traditional storage system such as network attached storage is one of the methods available with
the organisation through which they can store their data in an adequate and effective manner.
The basic utilisation of traditional storage methods are facilitated in order to create a backup for
the existing data available within organisation. The accessibility provided with the traditional
forms of data storage can be acquired through active internet connectivity. The data stored within
tradition storage systems can be deleted as well as duplicated as per the requirement of the
management. They are extremely affordable and cheap in nature. This form of data storage is
more suitable to small scale business enterprises due to its affordability and prominence.
In context to Tesco, the company majorly relies upon cloud computing methods for data storage
in order to achieve higher level of privacy and confidentiality. The accessibility provided by the
respective means is also very effective in nature which is one of the perks derived by the
company.
Assistance of proposed system in customer relationship management
Customer relationship management is an organisational aspect that cannot be fulfilled without
the integration of technology. In case of Tesco, the company needs to rely upon technological
servers in order to partner up with the customer and analyse their demands and requirements in
order to produce goods and services that are in accordance with the same. The cloud databases
provide the much-needed acceptance within regulating the customer relationship management of
the company. The database system acquired by Tesco can assist the firm in collection of personal
data from the customer and facilitate the organisation of the same in the favour of the firm. The
CRM procedures of Tesco are quite influential and strong as they deliver the clear vision of the
company to the customers and help the customers to connect better with the company. The role
of technology has been extremely significant in leading the CRM operations of Tesco as it has
allowed the company to increase its current level of customer base and meet up to the striving
competition within the market industry.

Suggestion of data management techniques
Data management can be defined as a process that affects the business organisation effectively
storing organising as well as maintaining a systematic record of the data formulated and acquired
by the company (Jafarijoo and Joshi, 2020). There are several data management techniques that
can be utilised by Tesco in order to manage its data more systematically and confidentially.
 The necessary prioritisation to the security and protection of data should be provided in
order to protect the privacy concerns of the customers and increase their faith and trust
within the business practises of the firm.
 In order to manage the data in an appropriate manner, it is very necessary for the business
enterprise to make the data accessible to the other parts of the organisation in the need of
the hour. Hence, the company needs to work upon the accessibility of the data in order to
ensure more smooth and flexible operation.
 The management of the company should also focus upon the quality of the data and
should collect relevant data that is of high use and value to the firm.
 Data recovery strategy also needs to be formulated by Tesco in order to ensure that in any
given circumstances, the company is able to recover the data in a easy manner and should
not face any issue or obstacle in realisation of data.
Communication Management
Communication management is also one of the integral components that need to be facilitated by
Tesco in order to lead better business operation and achieve greater level of coordination within
the business procedure and activities of the firm. Technical advancement within the
communication process makes it very easy and comfortable for the employees to interact with
their peers and colleagues in an optimal manner. Hence, it can be stated that the utilisation of
information technology within the communication process of Tesco is highly effective for the
business performance of the firm. It also increases the employee efficiency and enhances the
ability of the same to achieve greater level of output within the work setting.

Utilization of IT systems for supporting value added change for improving business operations,
performance and sustainability
Information system is an extremely powerful source that can aid the strategic direction of Tesco
in order to facilitate value generation and alteration within its current line of business procedures
(Alsalim, 2020). In order to do the same, the company needs to focus upon the idea that every
given technical advancement and technology within the business process is capitalised to the best
of the capabilities in order to achieve maximum level of productivity and output within the
business domain.
 The respective will also assist the company in enhancing its current standard of
performance and achieving more brilliance within the market environment in terms of
profit generation and market share.
 The utilisation of information technology can also increase the sustainability of the
organisation in the long run by helping the same to formulate sustainable and creative
solution within the society and environment.
 It can be stated that Tesco needs to assure that it established information technology plans
and objectives are in alignment with the business goals so as to lead the company towards
success and growth within the concerned industry.
Recommendations of practical IT solutions for common business problems found within the
organization
In the current pandemic, the most problematic scenario faced by business institutions across the
globe and even Tesco can be characterised as remote working. Information technology has
helped the business enterprises to provide work from home opportunity to the employees. IT
systems have also made it more flexible for the workforce to provide their services in a
continuous manner towards attainment of the goals and objective of the business institution.
In order to stay relevant and approachable within the market environment, it is very necessary for
business institution to lead effective communication with their prospective clients. Information
technology has provided a platform to the business institutions through which they can interact
with their customers in a more up close manner. The customers can also put forward their

concerns and opinions about the products and services created by the organisation and can
become a part of the feedback loop designed by the business firms as well.
In the earlier period, before the integration of information technology within the business
process, it was very challenging for business institutions to maintain systematic records data and
information. There was always a possibility of human error that could ruin the entire statement
and lead to failure in assessment and evaluation process. The emergence of information
technology has helped the business enterprises to manage data in a more systematic way. This
has also assisted in increasing the overall business management process of the firm and has
enhanced the degree of flexibility for them to acquire information and manage the same in a safe
and secure manner.
CONCLUSION
From the above discussion, it can be concluded that impact of information technology has been
very vital for the business organisation. It has changed the entire business management approach
in the current market environment. Almost every organisation has adopted the route of
information technology in order to achieve maximum productivity and excellent within their
field of operation. Tesco is a leading firm that has also incorporated information technology in
order to maximise its growth and expansion. Also, to lead better customer relationship
management, communication process, data management procedure within the company. It can be
said that in order to raise the standard of technology within Tesco, the management of the firm
needs to constantly upgrade its technology and incorporate the most effective data bases and
software in order to live up to the expectations of the global environment. With the right IT
strategy and direction, Tesco is likely to achieve and optimise upon more profitability,
sustainability and development opportunities within the global market.

REFERENCES
Books and Journals
Lloyd, I., 2020. Information technology law. Oxford University Press.
Alam, T., 2020. Cloud Computing and its role in the Information Technology. Tanweer Alam.
(2020). Cloud Computing and its role in the Information Technology. IAIC Transactions on
Sustainable Digital Innovation (ITSDI), 1(2), pp.108-115.
Zemlickienė, V. and Turskis, Z., 2020. Evaluation of the expediency of technology
commercialization: a case of information technology and biotechnology. Technological and
Economic Development of Economy, 26(1), pp.271-289.
Kumar, A., 2020. Information technology industry. Journal of Management Science, Operations
& Strategies (e ISSN 2456-9305), 1(1), pp.12-15.
Muhammedrisaevna, T.M., Mubinovna, R.F. and Kizi, M.N.U., 2020. The role of information
technology in organization and management in tourism. Academy, (4 (55)).
Sofyani, H., Riyadh, H.A. and Fahlevi, H., 2020. Improving service quality, accountability and
transparency of local government: The intervening role of information technology
governance. Cogent Business & Management, 7(1), p.1735690.
Alsalim, F., 2020. The role of information technology management in supporting managerial
innovation. Management Science Letters, 10(11), pp.2483-2490.
Jafarijoo, M. and Joshi, K.D., 2020. How do firms derive value from cloud computing
investment? examining the role of information technology governance.
Dinata, H., 2020. Business Process Reengineering: The Role of Information Technology as a
Determinant of Success for Improving Performance. Jurnal Ilmiah Bidang Teknologi Informasi
dan Komunikasi, 5(1), pp.25-31.