The Value of Effective IT Systems

This document discusses the use of Information Technology systems in different functions of an organization and how it contributes to achieving organizational objectives. It also analyzes the various ways in which IT systems process and store data for knowledge, data, communication, and customer data relationship management.

The Value of Effective
IT Systems

Contents
INTRODUCTION...........................................................................................................................2
P1 Analysis the use of Information Technology systems in different functions of
organisation............................................................................................................................2
P2 Examine the various ways by which Information Technology systems contribute in
achievement of organisational objectives...............................................................................4
P3 Analyse the various ways in which Information Technology systems process, stores data
for knowledge, data, communication & customer data relationship management.................6
P4 Assess how Information Technology can be utilised for supporting value added change for
improvisation in business operations, performance & sustainability.....................................7
P5 Recommendation of IT solution for business problems....................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10
1

INTRODUCTION
Information system is basically defined as a set of interconnected components for
storage, collection as well as processing of information with digital products & knowledge of
services. Business entities rely on information system in order to manage and carry out
operations, meeting with suppliers and interaction with customers as well. For the present report,
ASDA is taken into consideration (Al-Emran, Mezhuyev and Kamaludin, 2018). The company
was established by Peter and Fred Asquith in the year 1949. The head of company is located in
England, United Kingdom an at present it offer product and services in more than 12 countries.
The products as well as service offered by respective organisation are groceries, general
merchandise, financial services and many more. One of the main reason of company’s success is
its effective and skilful 1,65,000 staff members that offer quality and on time service to the
customers. The report will cover the use of information system along with its contribution in
attainment of organisational objectives. In addition to this, different methods of storing data will
be described. Moreover, ways in which information technology system can be use to enhance
business activities have been elaborated. In the last, some recommendations were given to
company in order deal with issues faced by organisation.
P1 Analysis the use of Information Technology systems in different functions of organisation.
Information technology is a broad term that describe technological advancements in
relation to processing and management of electronic information. It is stated that almost all the
companies were dependent on IT system for storing information, managing operations,
interacting with customers, dealing with suppliers and so on. For instance, company can make of
IT system for marinating financial information, reaching potential customers, managing
employees and for doing promotion of products and services as well. In relation to ASDA, they
are giving retaining and financial services in more than 634 locations. In addition to this, there
are various departments in ASDA, which are responsible for furnishing distinct functions at the
time of adopting shifting of technological advancements. The use of IT systems in various
function is given below in relation to chosen company:
HR operations: Human Resource department of ASDA is responsible for hiring of
effective employees that is met with the requirements of company. It is important for an
organisation to have effective and talented employees that enhance productivity and profitability
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of a company. With the assistance of technology, the performance of company is improved in
less time period which leads to attainment of positive results. The functions of Information
technology system in context to ASDA is given below:
Online advertisements: It is consider as one of the effective function of IT that will help
ASDA to reach large number of customers within shorts span of time. In addition to this, it saves
the time and money of respective organisation of we compare it to the traditional way of
advertisement (Al-Emran., Kamaludin and Shaalan, 2018). Moreover, implementation of such
function will help company to enhance its customer base level that has positive impact on sales
and profit of company.
Email: In order to give information to employees about meeting and other information and
to give them knowledge about vacancies that is arise in respective organisation, the higher
authorities make use of emails that help in giving formal information in a proper manner. In
addition to this, it help company to reduce the time of information flow that has positive impact
on productivity of ASDA.
Video conferencing: This system is adopt by human resource manager of ASDA in order
to conduct online interview and meetings with staff members as well. In addition to this, it is
consider as a feasible way for implementing out process and schedule it in effective manner that
is easy for both the candidate and employer as well.
Data management – In almost every organisation, Information technology system is
useful for maintaining and managing information of employees, suppliers and customers as well.
In addition to this, it also help in accessing latest information for making a proper decision about
financial, operational as well as strategic issues. The company store information by using
various sources such as market research, sales data, inventory and manufacturing information,
customer records within a single data centre. Information technology set a connection in
collecting information about supply chain, technology and distribution in order to make
production, sales and market which is mainly based on latest information and data as well.
Security – It is undertaken as one of the most significant function in a company.
Information technology system help in maintaining and security of all kept data that is associated
with operations as well as functions of company in an appropriate manner. In addition to this,
information technology system is advantageous for an organisation in order to make safe and
secure transaction and keeping employee data properly. Moreover, it is analysed that IT
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department of ASDA put stringent security policies that minimize the level of risk and also help
in facing issues that arise due to diverse and complex environment.
R & D operations: Research and development department of ASDA will make use of
information technology system such as internet in order to gain knowledge about its competitors
and process as well. This will assist ASDA to develop effective policies in order to make
changes in the existing services or to bring new service at marketplace in a proper manner. For
this, company make use of simulation tools that search out what factures will leads organisation
to gain positive and feasible results (Al-Qaysi, Mohamad-Nordin and Al-Emran, 2020).
Moreover, this will yield affirmative outcomes that enables company to analyse crucial factors of
their project and make changes in an appropriate manner.
Along with this, virtual collaboration can be adopt by higher authorities and IT department
of ASDA. This directly denotes working in a group with the help of digital tools in order to
achieve task. In addition to this, it help company to make face to face interaction and meetings to
its employees who has placed on different locations in a proper manner.
P2 Examine the various ways by which Information Technology systems contribute in
achievement of organisational objectives.
Information technology plays an important role in a company as it help in effective and
systematic implementation of activities that leads to achievement of objectives within stipulated
time period. The way information technology used by ASDA for attaining objectives are as
follows:
Product Development: Information technology improve the manner by which product as
well as service reach at marketplace. With the help of proprietary information along with market
intelligence, company can document needs of product within the market. Computer aided design
(CAD) as well as manufacturing software will assist to take rapid decisions, In addition to tis,
collaborative technologies help various teams to perform on different sub-sections of groups
simultaneously. Moreover, it also help company to respond to customer requirements that is
changed. This will assist ASDA for effective product development which leads to development
of effective decision and attainment of objectives timely.
Process improvisation: Enterprise resource planning help management to review sales,
service cost along with unified software platforms and operating metrics that is based on real
time. ERP system will develop various legacy system for human resource, finance and different
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functional areas that will make internal processes efficient and cost effective as well. In relation
to ASDA, it cannot adopt Enterprise resource planning system will help them to develop their
processor accurate, easier, accurate as well.
Cost efficiency: Execution of information technology system occur expense at the initial
time but will lead to cost saving for longer time period. In addition to this, it will help company
to decline the number of transaction and activities in an appropriate way. It is determined that
information technology based productivity solutions that ranges between word procession to
emails allow company to cut down their cost and avoid duplication which will leads
improvement in customer service quality (Romney, 2018). In context to employees, there is high
possibility of occurrence of errors but can be eliminated with the help of IT software. Therefore.
It will help company to make improvements in their productivity level and earn higher profits
which is consider as one of the objective of respective organisation.
Globalisation: Companies can endure in a competitive environment have operational as
well as financial flexibility for developing up at domestic and then in international market as
well. One of the major operating model that is significant for globalisation are
telecommunicating and outsourcing as well. With reference to ASDA, it outsource most of its
function such as human resource, finance and also make use of innovative technologies in order
to remain in touch with its customers, suppliers and overseas staff members.
Competitive edge: It is analysed that improvement within the existing process, rapid
product development and cost savings help a business entity to attain competitive advantage at
marketplace. For instance, if ASDA develop its application for smart phones that impact on its
competitors and they will also prefer the same with the maintain its market share level. This will
assist respective organisation to attract large number of customers as they get easy and
convenient services. Moreover, the higher authorities of ASDA can make use of rapid
prototyping, software simulations and other information technology based systems in order to
bring product within the market in a successful and proper manner.
From the above discussion, it is analysed that information technology has widely
contributes in managing and carrying out operations of company in an effective manner. In
context to ASDA, it will help company to achieve their objectives and goals within stipulated
time period.
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P3 Analyse the various ways in which Information Technology systems process, stores data for
knowledge, data, communication & customer data relationship management.
Data storage is defined as the procedure of collecting and storing information in the storage
medium of an organisation. It is one of basic function of general purpose computer systems and
is defined as most common file object as well as block storage along with the diverse operations.
It is analysed that file storage is inexpensive and simply constructed and its information is stored
in files and folders. It is mainly found in hard devices as they do to the main user. In context of
block storage, information is stored within the form of object along with metadata and unique
identifiers. It is determine that block storage is less expensive and mainly used for information
which cannot be edited (Jeyaraj and Zadeh, 2020). Moreover, it is the collective technology as
well as method that retain and capture digital data on electromagnetic, optical and silicon based
media storage. With reference to ASDA can adopt for storing information of cloud. In addition
to this, there are various number of vendors in market who provide service to those only who opt
for them. It is analysed that according to the space for storage needed, company can pay for it
respectively. Furthermore, they and adopt more storage according to requirements and pay the
same as well.
Knowledge mainly showcase the level of understanding and awareness of data along
with the manner that can be adopt for supporting activities and development of effective
decision. For instance, the information technology department and higher authorities of ASDA
can make use of this data on the time given by each staff member on particular project in order to
gain information about the budget needed for future project. By gathering of raw data, the
company can transformed it into information and then developed knowledge with the passage of
time. Knowledge management system is defined as a structured collection of devices, people,
procedure, database for development, sharing, storage as well as utilization of knowledge and
experience of the company. In addition to this, it involve various forms of knowledge that is
explicit knowledge that is objective, measured as well as documented. For instance, ASDA can
analyse actual expenditure and original budget of various projects which further help in
evaluation of different projects along with their required budget and time in an effective manner.
Knowledge denotes directly to possession of data and awareness of ideas, principles as facts as
well. Explicit data can be gained by experience, familiarity and study as well.
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Knowledge is related with doing and implying an understanding on a particular concept.
In addition to this, it is possessed by every person as their experience & involve norms by which
inputs has been evaluated within the surroundings. Moreover, the project manager of ASDA
analyse from its own experience along with elements such as communication challenge,
language barrier & exchange rates which are performed by them.
Data communication is termed as interchange of information between receiver as well
as source by transmission media such as wire cable. In addition to this, it is local if
communicating devices are present in restricted area or within the geographical area. The devices
such as a mail is sent to staff members of respective organisation will be consider as source &
one who receive message is undertaken as receiver (Kappelman, 2019). The main motive of data
communication is to mainly to transfer information in a proper manner at the time of
implementing out the process.
Customer data relationship management is termed as strategies for maintaining
relationship with customer and to reach potential customer in an effective manner. In addition to
this, it is basically a system by which a business entity remain in touch with its customers that
develop positive mind set towards brand. Moreover, it help company to maintain and improve its
performance level, customer base level, productivity and profitability level and so on. Moreover,
there are customer relationship management tools are available that can be adopt by respective
organisation for maintaining effective relation with customers. This help company to strengthen
its market performance and improve its performance in an appropriate manner.
P4 Assess how Information Technology can be utilised for supporting value added change for
improvisation in business operations, performance & sustainability.
In the present world, Information technology can be utilised by business entity to support
value added change that improves performance and operations of company. In context to this, it
is significant for top-level authorities in company to have an effective knowledge about
technology and along with the change take place within the technology. It is determined that
change in technology take place rapidly that assist company to smoothly and systematically carry
out operations and ensure long term advancements. Therefore, it is significant for company to
ensure that system they will adopt will meet with their requirements. It is determined that
information system provide many opportunities to ASDA. It is important for higher authorities to
develop strategies that assist in utilising information system in order to enhance their
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productivity and profitability of company. It is significant for company to have awareness about
evolving system changes in order to decline networking lifecycle that brings new network and
satisfy customers in an effective manner. By the assistance of effective information system,
business entities are capable to accomplish strategies & can attain long term and short-term
advancements. Moreover, it assist companies to effectively improve productivity level that
strengthen its market performance in a proper manner. In context to this, it is important for
company to analyse structure, management style and environment in order to attain advancement
in an effective way.
By an appropriate utilisation of IT system, ASDA can able to develop low cost products
that can help in gaining higher profitability. With the help of undertaking such systems, business
entities were able to fulfil their top line with its bottom line objectives and goals which can assist
in attaining competitive advantage at marketplace. In order to effective utilise information
system, it is significant for company to make their employees accept information system and
utilise it in a full and best manner. It is analysed that information system seems as a
revolutionary way which effectively contributes in enhancing productivity of an organisation in
an appropriate manner.
Along with this, it has been analysed that information system facilitate in enhancing
performance and productivity level of staff members as using technology they are able to share
information, emails and conduct video conferencing with other departments of company. By
executing effective form of information system, business entity cannot only enable to gain
benefits but can also satisfy requirements of customer by innovative goods as well as services.
Moreover, company is able to analytically gather customer feedback which in turn help in
making improvements and met with requirements and expectations of customer. This will further
enhance loyalty towards company and raise the chance of attaining competitive advantage at
marketplace.
P5 Recommendation of IT solution for business problems.
It is suggested to ASDA to adopt IT system as it will give them an easy and convenient way
to implement out activities and operations in an effective manner. The company have many store
present in different locations which shows it has high customer base but it can be increase by
adopting and using IT. One of the main objective behind this is direct that fiancé department
carry out transaction without any errors. By the development of application, people can satisfy
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their needs and order products from their homes. Herein, ASDA can give customer various
options to buy product that is online and offline shopping, online payments and many more.
Organisation require to update its system as without such loopholes were developed and can
destroy systems, features which will not be rendered in future. There are various components
required by company to add, which are as follows:
a) Accounting consultancy regulatory systems: This denotes structure that company utilises
for storage, collection, management, processing, retrieval & reporting of their financial
information that can be used by accountants, consultants, chief financial officers, tax agencies
regulators & business analysts of respective organisation. For this, they can make use of XBRL
(eXtensible business reporting) language. It is a standardised software which was formulated for
improvising ways by which financial data can be communicated in an easy and proper manner.
Accounting software packages: This are the application software which are responsible
for processing and recording accounting transaction within functional modules like general
ledger, accounts receivables, payroll and trial balance (Kumar, Mookerjee and Shubham, 2018).
b) Cloud: It involves delivering of services over internet so that distinct features can be
given to firms. The higher authorities of ASDA can make use of it for various services such as
developing software, storage, servers and so on that us depend on the requirements of they can
adopt services rom cloud.
Conclusion
From the above discussion, it has been concluded that information technology plays an
important role in every organisation as it help in collecting, storing, processing & retrieving
information in an effective manner. In addition to this, company can make use of IT system in
order to make improvements in the overall activities and operations which is carried out by them.
Moreover, it also help company to remain in touch with customers and maintain effective
relationship with them. With the help of cloud storage, company can have the platform with
them to store information, develop applications, improve processes and retrieve information
when it is required.
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References
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Cham.
Al-Emran, M., Mezhuyev, V., Kamaludin, A. and Shaalan, K., 2018. The impact of knowledge
management processes on information systems: A systematic review. International
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Al-Qaysi, N., Mohamad-Nordin, N. and Al-Emran, M., 2020. A systematic review of social
media acceptance from the perspective of educational and information systems theories
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Rainer, R.K., Prince, B., Splettstoesser-Hogeterp, I., Sanchez-Rodriguez, C. and Ebrahimi, S.,
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Online
Five IT Functions in an Organisation. 2019. [Online]. Available through:
<https://smallbusiness.chron.com/five-functions-organization-34002.html>.
formation-technology-25220.html>.
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