Advantages of Information Systems in Woolworths

Report

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Overview of organisation............................................................................................................1
Current information system problems ........................................................................................2
Change program .........................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Information system is defined as a formal organisational system which is designed to
allocate, process, store and distribute data and information. Business organisations undertake use
of IT infrastructure as per need and requirement of entity to accomplish their goals with great
effectiveness (Sarkar, Liu and Shah, 2020). Present report has been conducted on Woolworths.
Company is operating their business functions in retail industrial sector and was founded in the
year 1924 (Haskins and et. al., 2020). This organisation is Australia leading chain of grocery and
supermarkets store. In this report formative discussions has been made on advantage of
information systems to improve areas within organisation. In addition to this, report also include
current information systems problems that are being facing by entity along with the application
of customer relationship management to overcome these problems. Along with this, report
include discussions on implementation of new information system that allows organisation to
add more competitive advantages, improved sales, profit and consumer traffic.
MAIN BODY
Overview of organisation
Woolworths Group Australia leading supermarket chain stores are operating their
business operations with having more than 225,000 employees. Foundation of this company was
laid down in the year 1924 and currently this entity is offering their business services in
approximately 1024 locations (WOOLWORTHS GROUP. 2020). According to the evaluation it
has been evaluated that, retail industrial segment is facing aggressive competition this makes
Woolsworths tough to conduct their business operations with outdated information system.
Ineffectiveness of this lead entity to face many issues that are related to decreased market share,
specific quality concerns, loss of loyalty from customers and more (Chambers, 2020). However
all these issues can be effectively overcome by entity by taking advantage of effective form of
information system. With the help of this company can make significant improvement in loss of
loyalty form consumers, specific quality concerns, reduction in market share and more.
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Current information system problems
Due to the tough competition prevailing in retail industrial sector Woolworths finding it
tough to serve their business and customers objectives in effective manner. As per according to
the evaluation it has been evaluated that there were various form of IT troubles that being facing
by company (Australia’s Woolworths stabilises IT systems after “worrisome time”. 2020).
Along with this, it has been determined that outdated information system also decrease overall
performance efficiency of company, that further lead towards numerous range of problems that
entity is facing. Along with this company is also facing with the problem of feedback loops due
to present information system (Lian, Chen and He, 2020). Mentioned below there are some
certain for of issues due to company current information system is being defined:
Loss of profit due to outdated system:
It is one of the major issue that organisation in facing, in this it has been determined that
outdated system is increasing costs of company as it require high maintenance cost. It also takes
unnecessary time of employees that they can spend to be more productive (Sittig and et. al.,
2020). Outdated information system is decreasing satisfaction and morale of employees that
decreases their overall productivity. It automatically decreases profitability margin of
Woolworths.
Loss of loyalty from customers:
According to the evaluation, this has been determined that current information system is
creating various problems for Woolworths, loss of loyalty from customers in one of them. As
this has been evaluated that outdated information system is decreases performance level of entity
that lead towards ineffective end outcomes (Gottschalk, 2020). Decrease in organisation products
and services effectiveness in making customers loosing their loyalty towards company which is
one of the major issue for company profitability.
Decreased market share:
Outdates information system is significantly decreasing Woolworths competitive edge in
retail industrial sector. Along with this, it has been evaluated that outdated information system is
leading Woolworths to face many security holes and also increasing legal and regulatory
compliance risks (Top 5 Risks of Using Outdated Technology. 2020). All these issues are having
maximum tendency to make reduction in Woolworths market share.
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