The Value of Effective IT Systems

THE VALUE OF
EFFECTIVE IT SYSTEMS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P1 Use of IT systems in different functions of Tesco.................................................................3
P2 Contribution of IT systems in achievement of organisational objectives..............................5
LO 2.................................................................................................................................................6
P3 Reliable and flexible IT systems to meet requirements of the company................................6
LO 3.................................................................................................................................................8
P4 IT systems that support value added change in Tesco...........................................................8
LO 4.................................................................................................................................................9
P5 Practical IT solutions for business problems in workplace....................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
An information system is a unified set of components for collection, storage, processing
of data along with providing knowledge, information, and digital products. Business
organizations and corporations depend upon information systems for carrying out and
management of the business operations, interaction with the suppliers and customers and to
compete in the marketplace (Bessen, 2017). Information systems are used for running the supply
chains, logistics infrastructure, and electronic markets in an inter-organizational context. The
company chosen for assessing the It needs and infrastructure is Tesco. Tesco is a British
multinational corporation consisting of supermarket chains and stores across the globe to retail
general merchandise and groceries, headquartered in Hertfordshire, England. The report will aim
at demonstrating the role of IT systems in support of organizational objectives and analyzing
reliable and flexible IT systems to meet the requirements of the company. It will also evaluate IT
systems that support value-added changes in Tesco, and give recommendations of practical IT
system solutions in business scenarios.
LO 1
P1 Use of IT systems in different functions of Tesco
Information technology systems are inculcated in organizations for smoothing their
business operations and attaining their organizational objectives. Business organizations and
retail companies like Tesco depend upon information systems for management of the business
operations, human resource management, in-store communication and operation, handling
finance, billing procedures, marketing, interaction with the suppliers and customers, running the
supply chain, and electronic marketplace. The primary components of IT systems are computer
software and hardware, databases, data warehouses, telecommunications ingrained in the
operations and management of Tesco. The systems can be used in major functions across the
company such as:
Financial management: An efficient financial system consists of the underlying
technology that can handle analytics, cash flow and management, transactions, and reporting
ideally in one place so that the finance team of Tesco can plan, transact, report, and analyze data
without leaving the system. A cloud-based financial management system is incorporated to carry
out these functions. Tesco uses the management information system called Oracle accounting
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hub for a streamlined credit decision, flexible invoices activity prioritization, configurable
collections strategies, self-service account management of customers, creating automated
receipts, revenue processing for effective inventory control, product details, supplier details,
customer details, and purchase and sales ledger (Toerien, 2017).
Customer relationship management: For interaction with customers TESCO is using the
customer relationship management system to follow up on them using telephone and email from
the contact center, as well as for the generation of a knowledge base of information on products
like food, drinks, electronics, clothing, financial services.
Supply chain: The oracle retail warehouse management system has been adopted by
Tesco for the standardization of its supply chain pattern across businesses and alteration in the
distribution networks.
Figure 1: Retail Warehouse Management System
Source: Oracle
This system is operational across Europe, Southeast Asia, and America. Tesco initially used the
system in South Korea for ambient distribution of its fresh products, with the purpose to strip out
the aggregate amount from the supply chain and making it possible for transportation across
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