The Importance of Information Technology in Business

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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