The Value of Effective IT Systems

The value of Effective
IT Systems

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
LO 1.................................................................................................................................................3
P1 Use of IT Systems Within Different Functions of Aldi.........................................................3
P2 Contribution of IT systems Towards Achievement of Organisational Objectives and Goals
in Aldi..........................................................................................................................................4
LO 2.................................................................................................................................................6
P3 Different Ways IT Systems Store and Process Data..............................................................6
LO 3.................................................................................................................................................7
P4 Analysing How IT Systems are Used to Support Value Added Change for Improving
Business Operations Within Aldi................................................................................................7
LO 4.................................................................................................................................................8
P5 Practical IT Solutions For Common Business Problems Experienced Within Aldi..............8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Information technology refers to the use of digital computers and peripheries with the
intention to store, transmit, retrieve, analyse and manipulate information or data as per the
requirements of the user. An Information Technology system refers to a general digital computer
system that is made up of appropriate hardware, software and peripheral machines and
equipment that is used for varying operations based on the user’s requirements (Lohrke,
Frownfelter-Lohrke and Ketchen Jr, 2016). This report analyses the of overall value of effective
IT systems within Aldi, which is a private German owned retail business organisation, that was
founded in 1946 and currently operates from its operational headquarters in Essen Germany and
Mulheim Germany respectively. Aldi operates more than 11,234 distinct retail establishments
across 20 different countries around the world. Aldi specialises in selling retail merchandises,
groceries and household essentials to the customers within retail industry of UK in order to
effectively satisfy their needs and demands and conduct the operations of the retail business
organisation in a successful manner.
MAIN BODY
LO 1
P1 Use of IT Systems Within Different Functions of Aldi
Most of the varied organisational functions of Aldi such as manufacturing, finance,
marketing, sales, human resources, logistics etc., make appropriate use of IT systems within the
business organisation in order for the business organisation’s overall operations to be conducted
in an increasingly effective, efficient and successful manner. The way in which the various
organisational functions of Aldi make use of IT systems is as follows:
Finance: The finance department within Aldi is required to make effective use of IT systems
within the retail business organisation in order to conduct its daily operations in an increasingly
successful and efficient manner. The finance organisational function of Aldi uses IT systems for
analysing how efficiently the business organisation is able to make use of its allocated financial

resources, in order to maximise the profit margins generated by the retail business organisation
within the retail sector of UK (Randall, Goel and Abujamra, 2017). In addition, the finance
department within Aldi also uses IT systems to effectively manage the payroll of all its
organisational employees. Finance department of Aldi also uses IT systems to perform financial
audits of the operations of the other organisational functions within Aldi, in order to identify
which operational function is not able to make optimum use of its allocated financial resources
so that appropriate changes can be made towards increasing the profit margins generated by the
retail business organisation.
Sales: The sales functions of Aldi are also required to make effective use of IT systems within
the retail business organisation in order to maximise the productivity and profitability of the
business organisation within the retail sector of UK. The sales department of Aldi uses IT
systems to forecast consumer demands within the external consumer retail markets, for assessing
the effectiveness of the diverse sales and marketing strategies used within the retail business
organisation, amongst other operational uses. The sales department of Aldi also uses IT systems
to store and record the operational data and information about their clients and their sales
requirements in order to be able to satisfy these needs and demands of their clients in the future
in an increasingly effective and efficient manner.
Human Resources: The human resources department of Aldi also makes use of IT systems in
order to be able to effectively conduct its daily operations within the business organisation in an
increasingly effectively, efficient and successful manner. The HR department of Aldi uses IT
systems to create dedicated recruitment plans and strategies for the retail business organisation
by recording relevant data and information related to the operational vacancies within the
organisational structure of Aldi, along with the the skill gaps present amongst its operational
employees and workforce (DeLone and McLean, 2016). The HR department of Aldi also uses IT
systems for managing workforce planning and management operations within Aldi, which
enables the retail business organisation to become able to conduct its daily operations towards
optimum standards of performance and efficiency within the retail industry of UK.