The Role of IT Systems in Business Performance

This assignment explores the importance of IT systems in enhancing business processes, quality, cost-effectiveness, and time constraints. It examines the contributions of IT solutions to meeting business goals, resolving sustainability issues, and improving performance reliability. The report recommends implementing IT systems to support decision-making processes and provide accurate information for top management.

BUSINESS INFORMATION
TECHNOLOGY SYSTEMS

TABLE OF CONTENTS
INTRODUCTION..........................................................................................................................1
LO 1 ................................................................................................................................................1
1.1 Application and use of IT systems within different functional roles of organisation ..........1
1.2 Contribution of IT system in achieving business goals .......................................................2
LO 2.................................................................................................................................................3
Different approaches used by IT systems for management of various aspects ..........................3
LO 3.................................................................................................................................................5
Role of IT system in supporting value added changes ...............................................................5
LO 4.................................................................................................................................................6
Recommendations for practical IT system solutions for the given business scenario ...............6
CONCLUSION................................................................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
Information technology (IT) systems are defined as the technically advanced system
which are capable of processing huge information of business organisations so that their
sensitive and valuable information and knowledge assets can be managed and used for
profitability of the business. With rapidly changing innovations and technology it is essential for
the business groups to use these systems so that the sustainability, reliability and performance of
their business can be improved (Hasan, Mahdi and Nat, 2017).
The report will explain the role of flexible and reliable IT systems in achieving business
objectives. From the given case study of JS supermarket document will also evaluate the system
which can support the value added changes within organisation by providing suitable
recommendations. It will also discuss that how these systems can meet the functional needs of
organisation.
LO 1
1.1 Application and use of IT systems within different functional roles of organisation
The operational and functional activities of the JS supermarket can be made more
effective and time efficient. Different functional activities such as accounting, production,
information management and marketing can be managed easily with IT solutions. The
organisation can use IT systems to interconnect the systems of various departments so that there
will be no need to maintain records by making duplicate copy of them. It will not only make
process cost effective but will also save the time of users (Chang, Ittner and Paz, 2014).
For instance when suppliers of the JS supermarket need payment information of the
particular order then accounts department of one store first need to contact with the purchase
department of all branch stores to confirm the products details in the order and then it has to
verify the store involved in the transaction so that the associated store can provide details. On the
other hand if JS supermarket will have a centralised IT system then it can maintain the records of
all of its stores and within a minutes details can be provided without disturbing all other stores.
Similarly, with expansion of the business it is also getting challenging maintaining the records
and order details of consumers.
When supermarket need to find detail of particular consumer then, it has to search it in
manual records of all stores. The use of IT system in marketing functions will make them easy to
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understand the choice and behaviour of each consumer irrespective of the fact that from which
store of JS supermarket they have purchased.
The implementation of IT system in accounting functions will make the analysis and
calculation process very accurate and quick (Matrane and et.al., 2015). It will enable
organisation to keep sales records of each branch of the supermarket and to evaluate overall
performance of organisation without waiting to collect records for each of branch. Due to lack of
IT system information sharing is very complex and involves time.
The manual handling of record also has higher probability of the errors. In addition, with
manual record management it is difficult to update changes in information simultaneously in all
departments or branches. For instance currently when suppliers of the supermarket make any
deal then this need to be updated in accounts department, purchase department as well as
operational department. Contrary to this if JS supermarket will implement IT system then
information update in single department will automatically reflect in other departments as well.
Hence, implementation of IT system within different functions will enable effective information
sharing and easy update of the records. It will make organisational process more quick and
accurate.
1.2 Contribution of IT system in achieving business goals
IT systems are crucial for achieving the business goals. The knowledge and information
assets are the success factors of the business organisations. If JS supermarket will not manage its
information with security and effectively then it can reduce the quality of its performance and
can also cause delay in the operational functions (Laudon and Laudon, 2016). For instance
currently it took significant time for JS supermarket to access any information. IT systems will
make it possible for organisation to share information easily. The quick response and effective
management is essential for the supermarket so that it can explore its business to wide range
without concerning about security and complex system of managing information manually.
IT systems make it possible to handle huge amount of data with ease. IT system can also
improve the quality of work by providing monitoring and controlling. Currently there is no
continuous monitoring system which can regulate or give instant update on work process.
However, with IT system the responsible authorities can check the status of different operational
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activities. So the continuous evaluation will also motivate human resources of the organisation to
perform their task on time.
The automatic update of the information in different departments as well as in different
branch stores will make process less time consuming and will also eliminate the error possibility
(Rahimi, Møller and Hvam, 2016). IT systems can also provide competitive advantage to JS
supermarket. With the help of these systems it is also feasible for the organisation to analyse its
past records. Currently it is very complex to manage the records of past 2 years but with huge
management capacity of IT system JS supermarket can not only store but can also compare the
sales records of even last 5 years.
The performance comparison will help supermarket to analyse its performance and the
factors which are affecting the growth of organisation. These systems will also permit
organisation to have complete control over the business process and to accomplish task on time
so that JS supermarket can achieve its business objectives in terms of high sales, large benefits,
reduced operational cost and performance evaluation. In order to achieve the growth and profit
related business objective communication between various teams and functional units is
essential.
Without IT system the communication may be time consuming and less effective and it
can be difficult for the different functional teams to establish coordination with each other
specially when JS supermarket has wider operational region. Thus, information technology
systems need to be implemented and maintained so that the employees of JS supermarket can
enhance their skills and efficiency which is a must for achieving long term business objectives of
the organisation (Kasemsap, 2018).
LO 2
Different approaches used by IT systems for management of various aspects
IT system can be efficient tools for supporting various management needs of the
organisation. It is equally important for JS supermarket to manage its different aspects such as
customer relations, knowledge, data as well as communication. To manage these aspects
following IT systems can be used.
Customer relation management system (CRM): To achieve the goals of profits and customer
retention JS supermarket can use CRM sytem. It will enable organisation to analyse the
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consumer data so that their purchasing behaviour and expectations can be analysed. It helps
organisation to include necessary improvements in its practices which can increase consumer
satisfaction and can also manage complete records of all customers (The Role of a CRM in
Customer Support Services, 2018). CRM is very effective system to improve the customer
relations of supermarket with its target population.
Database management system (DBMS): These IT systems helps organisation to manage and
store its valuable information and data in systematic arrangement so that data can be accessed
anytime and from anywhere. It also provides so facility that only authorised users of JS
supermarket are able to use the organisational data. Database system makes it possible to manage
huge records of the organisation on single platform so that data can be easily shared between
various users or departments.
Knowledge management system (KMS): For managing the knowledge assets of organisation JS
supermarket can use KMS. This IT system not only ensure that knowledge is protected but also
regulate that there is regular generation and reformation of knowledge within organisation so that
success is not compromised with time and changing business environment.
Social intranet software: This solution reduces IT maintenance cost and allows all employees
and departments of JS supermarket to communicate with each other so that they can share
information. It is one of the effective system for managing communication within organisation.
Along with the means of sharing information it also provides the way to store all documents or
conversations involved in the communication to store at single platform (Peng and et.al., 2016).
Issue tracking software: The suppliers and consumers require connecting easily with JS
supermarket so that their issues and requirements can be resolved. It is also beneficial for the
supermarket as it will promote the long term growth and consumer retention (5 Foolproof
Business Communication Tools Every Company Should Be Using, 2014). The issue tracker
software provides the solution so that various stakeholders can express their concern and from
the stored database the issue is transferred to corresponding authority. Thus, the suggestions and
queries are resolved quickly and business process of JS supermarket can be made fast.
Enterprise resource planning (ERP) system: The connectivity issues between various functional
departments is also major concern for the supermarket. It can be managed by using ERP system.
This system integrates different functional areas such as production, human resources,
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operational, finance and supply chain into a unified system. It will eliminate the business issue of
JS supermarket such as double entry of data for sharing and communication concerns between
different teams.
LO 3
Role of IT system in supporting value added changes
For increasing the overall performance and sustainability in its functions JS supermarket
can use IT systems so that it can bring value added changes in its business functions. The
operational effectiveness can be enhanced by establishing a proper communication and
information sharing path between various functional departments of the supermarket. IT system
will provide services so that it will be easy for the individuals to share information and avoid
time delay and inaccuracy which may caused due to data repetition (Fowler, 2017). This easy
communication channel significantly improves the quality and added value to the products and
services delivered by supermarket.
The reduction in operational cost without compromising the product quality is also
considered as the value addition for improving sustainability. The use of information technology
also reduces operational cost. For instance with manual information management huge cost and
space is required to store the records with safety. Instead, if organisation uses these systems then
there is no need to spend any capital on maintenance and storage of such records. Though IT
implementation also involves investment but it is for long term and is capable to explore and
manage the growing and future needs of business. It is very challenging for JS supermarket to
understand the expectations of its consumers and to design and deliver their products so that its
sales targets can be achieved easily.
IT systems such as customer relation management and issue tracking systems can help
supermarket to analyse the marketing trends. This understanding is necessary to develop
effective and advanced operational and marketing strategies which can force consumers to make
purchasing decisions. IT systems makes analysis process very simple and quick by exploring
broad subject group. The suggested IT systems also enhances transparency in process and thus
operational activities can be accomplished on time (Orzen and Bell, 2016). The regular
interaction with consumers and workforce is the key factor for gaining sustainability in business.
IT systems provides cost friendly and effective approach to manage and interact with the human
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assets of the organisation. Thus, JS supermarket requires IT system to improve its performance
and functional reliability.
LO 4
Recommendations for practical IT system solutions for the given business scenario
The benefits of the information technology systems can be extracted only if JS
supermarket implement IT solutions with appropriate strategies. The employees of supermarket
are the fundamental assets of the organisation and their performance directly influences the
decisions of customers. Thus, these human resources can use IT system with accuracy it is
recommended that JS supermarket provides training to their employees so that they can
understand the need and methods of IT system.
The lack of skills for managing IT resources can lead to errors as well as can also invite
security vulnerabilities (Porter and Heppelmann, 2015). For instance if team members of
supermarket are not aware about cyber and networking threats and does not follow the security
measurements then the valuable information assets of the organisation can be misused by
unauthorised individuals and supermarket may suffer financial as well as legal troubles. The
information system of organisation comprises personal details of their employees, suppliers as
well as customers. Hence, it is very important that users of these systems must follow the
guidelines and security regulations. This is possible only when these employees are trained and
well known with various aspects of IT system.
To sustain the efficiency of practical solutions it is also recommended that organisation
must analyse and specify its needs clearly. There are various types of IT solutions but the
selection of the system must be on the basis of requirements, future scope, cost and target
audience (Rahimi, Møller and Hvam, 2016). For example if supermarket employs a system
which has very limited range of storing data then it is not recommended because it may fail to
meet the growing business needs of supermarket and hence it will create additional burden of
cost as well as mismanagement.
Thus, it is recommended that JS supermarket must first analyse all possible IT solutions
which can meet its requirements and only then IT solution must be implemented and used. The
analysis of market trends and approach of other competitors, feedbacks from consumers and
team members can serve the purpose. Security aspects are the major concern for IT system. A
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minor negligence to this area can cause huge troubles. To ensure this all users of organisation
must be trained with the suitable remedies. The use of security remedies such as antivirus,
firewalls and network monitoring tools must be necessarily included in IT solutions. The team
members of supermarket must ensure that these security tools are installed and updated.
It is also recommended for JS supermarket that organisation must have appropriate
strategies and planning for maintenance of IT system. The timely monitoring and upgrading of
technology will help organisation to sustain the effectiveness and performance of IT solution
(Hasan, Mahdi and Nat, 2017).
These recommendations will definitely help JS supermarket to improve its performance by
eliminating the barriers such as time delay, ineffective coordination between organisational
teams and inaccuracy in functional outputs.
CONCLUSION
From the report it can be concluded that for meeting the growing needs of business IT
systems are mandatory. These systems make business process more effective in terms of quality,
cost as well as in terms of time constraints. The report has discussed the role of IT system in
improving performance of business activities and to promote the value added changes. It has also
provided recommendations so that IT solutions can meet the business goals. The document has
also discussed the contribution of IT systems in resolving sustainability and accuracy related
issues. Thus, it can also be concluded that IT system plays a significant role in improving
performance and reliability of the business processes.
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REFERENCES
Books and Journals
Hasan, H.F., Mahdi, A.A. and Nat, M., 2017, September. A Recommendation of Information
System Implementation to Support Decision-Making Process of Top Management.
InProceedings of the International Conference on Bioinformatics and Computational
Intelligence (pp. 55-61). ACM.
Chang, H., Ittner, C.D. and Paz, M.T., 2014. The multiple roles of the finance organization:
Determinants, effectiveness, and the moderating influence of information system
integration. Journal of Management Accounting Research.26(2). pp.1-32.
Matrane, O., Talea, A., and et.al., 2015. Towards A new maturity model for information
system.International Journal of Computer Science Issues (IJCSI).12(3). p.268.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education India.
Rahimi, F., Møller, C. and Hvam, L., 2016. Business process management and IT management:
The missing integration.International Journal of Information Management, 36(1),
pp.142-154.
Kasemsap, K., 2018. The role of information system within enterprise architecture and their
impact on business performance. In Global Business Expansion: Concepts,
Methodologies, Tools, and Applications (pp. 1078-1102). IGI Global.
Peng, J., Quan, J., and et.al., 2016. Mediation effect of business process and supply chain
management capabilities on the impact of IT on firm performance: Evidence from
Chinese firms. International journal of information management, 36(1), pp.89-96.
Fowler, A., 2017. Accelerating business and IT change: transforming project delivery.
Routledge.
Orzen, M.A. and Bell, S.C., 2016. Lean IT: Enabling and sustaining your lean transformation.
Productivity Press.
Porter, M.E. and Heppelmann, J.E., 2015. How smart, connected products are transforming
companies. Harvard Business Review, 93(10), pp.96-114.
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Online
5 Foolproof Business Communication Tools Every Company Should Be Using, 2014 [Online]
Accessed through <https://axerosolutions.com/blogs/timeisenhauer/pulse/283/5-
foolproof-business-communication-tools-every-company-should-be-using>
The Role of a CRM in Customer Support Services, 2018 [Online] Accessed through
<https://www.tenfold.com/crm/role-crm-customer-support-services/>
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