Analysis of IT Systems in Business Operations - Report

This report provides a comprehensive analysis of Business Information Technology Systems, focusing on the application of IT within various organizational functions. Using British Home Plc as a case study, the report examines how IT systems contribute to achieving business objectives, including improved efficiency, customer relationship management, and marketing strategies. It delves into different methods of data storage and processing, such as knowledge management and customer relationship management, and evaluates how IT supports value-added changes to enhance business operations, performance, and sustainability. The report also recommends practical IT solutions for common business problems, covering areas like e-commerce, online advertising, and enterprise resource planning. The analysis highlights the importance of IT in driving business growth and competitive advantage, emphasizing the role of systems like MIS, DSS, and KWS in supporting decision-making and innovation. This report is a valuable resource for students studying business and information technology on Desklib, offering insights into the practical application of IT in a real-world business context.

Business Information
Technology Systems

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Analyse the use of IT systems within different functions of an organisation...................1
P2 Explain how IT systems contribute to the achievement of objectives in a specific
organisational context.............................................................................................................4
LO2..................................................................................................................................................6
P3 Analyse the different ways IT systems store and process data knowledge management,
customer relationship management and communication management..................................6
LO3..................................................................................................................................................8
P4 Evaluate how IT systems can be used to support value added change for improving
business operations, performance and sustainability..............................................................8
LO4................................................................................................................................................10
P5 Recommend practical IT solutions for organisational scenarios that cover a range of
common business problems experienced in the workplace..................................................10
Conclusion.....................................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The process of development, maintenance and usage of computer networks, systems and
software is defined as information technology. Organisation make use of information to carry out
their routine information but it is only usable when it is processed form as raw data takes lots of
time and do not serve the purpose. Therefore, it is necessary for firms that they make use of IT to
accomplish their goals in precise as well as within required time frame (Legner and et. al., 2017).
For understanding the effectiveness of information technology within organisation, British Home
Plc is taken into consideration, it deals within different industries but still then they are not able
to generate required amount of profits as they do not seems appealing to their consumers. This
denotes that firm need to have additional features through which they can attract more number of
customers. It deals with ways in which IT can be utilised for carrying out various functions
along with their contribution for attainment of objectives. Furthermore, ways for storing
information have also been illustrated and methods for supporting value added change to
enhance operations.
LO1
P1 Analyse the use of IT systems within different functions of an organisation
Set of components that works collectively for managing data processing as well as their
storage is referred to as information systems. Collection, processing and retrieval of data or data
is defined as IT. This has affirmative role for supporting crucial aspects of organisation with
respect to carrying out their operations. For an instance record-keeping, communication, data
analysis, decision-making and various others. British Home Plc utilise this information for
enhancement within business operations as well as formulate their decisions for having
competitive edge. For an instance, they can utilise customer relationship management systems to
have more number of customers as well as acknowledge which age group, they have to target
(Role of Information Systems in an Organsiation, 2019). It will allow British Home Plc to collect
as well as analyse activities associated with sales, carry out marketing campaign as well as
measure satisfaction of customers.
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It comprises of usage of distribution as well as processing of data for maximising efficiency
along with production. IT aids within protection of information, its processing, transmission as
well as for retrieval of information. The usage of IT within different departments of British
Home Plc have been illustrated below:
Information technology department
Data management is one of the crucial function that makes this indispensable, with
enhancement in complexity there is need to deal with enhanced amount of data. British Home
Plc can have data in the form of video, audio and text data (Lohrke, Frownfelter-Lohrke and
Ketchen, 2016). For this IT department is liable to manage database whose function in context of
British Home Plc is been specified beneath:
1. Storage of data: By keeping data within storable format, it enables employees to store
large data as well as access it whenever this is required. This leads other departments to
make use of information and carry out their operations in an required manner.
2. Management of data: Raw data is not of any use until, it is being processed, this needs
to be transformed into meaningful form that enables British Home Plc to formulate
decisions in context of business.
3. Accessing data: It do not matter that data is in what form but this is necessary that there
is control in terms of what access must be given to whom. The data that is being stored
within database needs to be maintained in an efficacious manner so that its security can
be ensured (Zancul and et. al., 2016).
Functions of marketing
This is major aspect of business as digitalisation has enhanced marketing campaigns are
also becoming digital. Marketing department of British Home Plc can opt for making use of
different functions that are being rendered by IT:
1. E-commerce: This denotes buying or selling of products and services via online
medium. British Home Plc is furnishing their services in retail, property, travel and
consultancy industry. By going for e-commerce, they can have enhanced profitability as
large number of people can reach out them. In this case, at initial stage they can have
their own website and ensure that, it needs to include the option by which online
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transactions can be made. If things works fine then they have their application for
reaching out maximum individuals.
2. Marketing research: With enhancement within number of search engines, it has became
easy to carry out online research with respect to trends as well as profitable opportunities
they can have (Shollo and Galliers, 2016). By making online presence strong within
social media, management of British Home Plc can acknowledge trends of market as well
as identify requirements of their potential customers. This will lead them to meet
expectations of their customers as well as ensure their competitive positioning within
market.
3. Online advertisements: British Home Plc is carrying out their operations in different
departments. This makes it crucial for them to give online advertisements so that they can
make their customers aware about what is being offered by them. This will assist them to
grab the attention of multiple customers as most of the time is spent by individuals on
internet.
Enhancement within processes of all departments
It is crucial for a firm to improvise their processes so that efficiency can be increased by
which money of organisation can be saved. British Home Plc can utilise systems that will lead
them to eliminate cost associated with copying as well as printing. As when management opts for
making use of IT any documents can be transmitted by the usage of network. Video conferencing
and collaboration software will lead management of British Home Plc to save expenses of
logistics that have been taken place when diverse teams work collaboratively. In addition to this,
it will also assist HR department to furnish training sessions by the usage of technology
(Wilamowski and Irwin, 2018). This also denotes that associated with travelling along with time
can be reduced and that can be utilised for rendering effective sessions.
Improvisation within planning
ERP can be utilised by British Home Plc to link diverse functions within firm. Enterprise
resource planning processes can be utilised by organisation for managing as well as integrating
crucial aspects of business. ERP software will assist British Home Plc within integration of
planning, marketing, sales, purchasing inventory, human resources and various others. These
systems will aid within operations and strategic decision making.
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In this way information technology will aid British Home Plc to render their operations
in an effective manner. Apart from this, through this they can have precise results along high
accuracy. Furthermore, overall processing of operations will be enhanced in terms of time, cost
as well as efficiency (Madon and Krishna, 2018). This denotes that by usage of IT British Home
Plc can have affirmative outcomes.
P2 Explain how IT systems contribute to the achievement of objectives in a specific
organisational context
Information technology provides organisations with a scope for growth not only in terms
of productivity and profitability but also in terms of sustainability for longer duration of time.
This make it more important for British Home Plc to opt for IT as they are having a profit
margins but still they are not able grow at similar pace as other organisations do. Information
technology systems can have strong contribution while carrying out their (organisation)
operations, they have been depicted below:
1. Management information systems: They can be utilised by organisation for
development of planning, controlling as well as decision-making activities of middle
manager. This system within British Home Plc will be liable for extraction of data from
transaction processing systems, their compilation as well as needs to produce information
in terms of responses, displays or reports (Barata and Cunha, 2017). This will aid
management as well as supervisors of British Home Plc to formulate decisions as through
this comparisons can be carried out through which solution can be reached.
2. Decision support systems: This is a interactive computer based system that serves
management of organisation for supporting them within formulation of decisions. It
furnish middle managers with relevant information that will enable them in building up
smart decisions. It will aid British Home Plc to formulate plans as per altering trends
within the market along with this it assists in formulation of complex decisions top
support TPS and OAS. This system possess analytical power and are able to summarise
large amount of data in the form of charts which makes it easier for management of
British Home Plc to alter their investments or policies accordingly.3. Knowledge work systems: It is differentiated system that is responsible for promoting
creation of knowledge as well as technical skills that are merged within business (Six
major types of information systems, 2019). It leads employee's of British Home Plc
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within creation of new knowledge as well as information by furnishing analytical,
communication, graphics as well as document management tools. This illustrates that, it
will assist within identification of knowledge that resides in outside environment. Few
examples of these have been illustrated below that will help British Home Plc within
extraction of information from raw data:
 CAD (Computer aided design) systems: They are being utilised for automation of
creation as well as revising of designs through usage of graphics & computer
software (Aversano, Grasso and Tortorella, 2016). It will render British Home Plc
with design specifications for manufacturing along with tooling processes. This
leads them minimise money and time while rendering their activities.
 Financial workstation: They are being utilised for combining ample data from both
external and internal sources. In this, management of British Home Plc can have
knowledge with respect to research reports, market as well as contact management
data. This will aid to acknowledge them which unit or industry they need to invest
more so that improvised results can be yielded.
 Virtual reality system: These systems will yield British Home Plc intensified
results as by this simulation, rendering as well as visualisation can be carried out.
But in this case organisation need to possess additional interactive graphics
software for creation of simulation as this will assist them to identify what must be
improvised in there services so that better outcomes can be attained (Batkovskiy
and et. al., 2016). Though it seems costly but through this amplified outcome can
be attained in terms of productivity and profitability.
4. Office automation systems: It denotes accumulation of communication technology that
will assist individuals to carry out their official tasks. This will help British Home Plc to
manage their managerial as well as clerical operations. In terms of clerical activities, it
comprises of printing, written communication, etc. With respect to managerial activities,
this includes creation of reports, messages, conferences as well as controlling operations
that are being carried out within organisation. There exists different applications that
have been integrated with office automation systems. They are processing (used for
formulation of memos, reports or any printable data through electronic mediums), e-mail
(assists within transmission of documents or messages (can be audio video or in any
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format) via computer) and voice mail (allows to carry out call services, storing as well as
retrieval of telephone messages within memory of computer).
5. Transaction processing systems: Each firm have to carry out process transactions for
carrying out day to day operations. As they operate within different industries
transactions will also differ as well as processing within departments will also vary. With
respect to British Home Plc, transactions comprises of cash withdrawals, deposits, etc.
The major benefit that can be attained by organisation through this is consistency,
reliability as well as performance (Wang and et. al., 2016).
This illustrates that, British Home Plc can have diverse impact on ways in which they
carry out their operations. This will lead to creation of affirmative influence on it but the initial
investment will be high.
LO2
P3 Analyse the different ways IT systems store and process data knowledge management,
customer relationship management and communication management
The term that is being utilised for depository data within electromagnetic as well as other
forms for utilisation by device or computer is referred to data storage. There are wide options
that are available like hard data storage (such as USB) and there are also new options for storing
data remotely by cloud computing. This includes data of users as well merges software and
hardware systems that are being utilised for capturing, managing as well as prioritising data
(Ferreira Rebelo, Silva, and Santos, 2017). This also comprises of applications, databases,
archiving, backup appliances, data warehouses and cloud storage. It is stored in form of 0 or 1
which denotes binary number and depending upon their size their units vary like kilobit, megabit,
gigabit, etc.
Data processing is defined as transformation of raw data into useful information via a
process. Data is altered to yield outcomes which will aid them to have improvised solution for
existing problems as well as resolution. There are different ways through which data can be
stored, it has been specified below:
1. External hard drives: It is inexpensive way for adding more storage which can be
directly linked to computers. They provides additional storage space but data cannot be
accessed from anywhere if it is not present with an individual as it becomes necessray to
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have its copy within systems. In case if any kind of misshapenness occur within British
Home Plc, like fire then it won't be possible to retrieve that information again.
2. Online storage: They will be providing British Home Plc remote storage as well as
backup over internet offer wide range of compelling facilities to their employees. By
creation of backup files can be secured from external disaster. This will also enable
management to share large information with their partners and clients (Peltier, 2016). In
case of security of data, passwords must be applied to online storage services so that there
do not arise need to send that by an email or any other source. This will assist employees
of British Home Plc to have remote access to data and carry out their operations.
3. Network attached storage (NAS): This is reliable, simple and fast access to data within
IP networking environment. It is a best option for British Home Plc as they are medium
sized firm and needs large amount of economical storage by which multiple users can
share within a network. They can be deployed, consolidate as well as centrally managed
within British Home Plc.
Knowledge management: They are liable for storing as well as retrieval of knowledge
that improvise collaboration, locates sources of knowledge so that they can be utilised by firm to
have desired results. It will assist British Home Plc for data mining with respect to input and the
services which they are opting for. For an instance by this firm can identify trends consumers are
looking forward for. This will aid them to furnish training as well as orientation for their
employees by which better sales results can be yielded (Lu, 2017).
Customer relationship management: The process of integration of technologies, practices and
strategies that is being utilised by firms for managing as well as analysing customers
communication along with data throughout within customer life cycle for improvisation of
customer service relationship to provide assistance within customer retention as well as acquiring
growth within sales is referred to customer relationship management. By this British Home Plc
focus on relationship with their customers, employees as well as other individuals involved
within their business by which their requirements can be analysed.
Data management: There are different options that can be utilised by British Home Plc
for storing information but there is need to manage it in an effectual manner so that its
confidentiality, integrity and availability can be maintained. This will aid them to save their data
from external access like hacking or access into their systems.
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Communication management: Interaction is crucial aspect while carrying out
operations of business to ensure that project can be carried out as per desired standards and
without any kinds of bugs in it. This denotes that British Home Plc needs to provide their
employees with crucial information as per what kind of information is needed by whom, duration
for that specified task and responsibilities of individuals. This will assist them to furnish their
responsibilities in a required manner (Kasemsap, 2016).
LO3
P4 Evaluate how IT systems can be used to support value added change for improving business
operations, performance and sustainability
Organisations tends to carry out their operations in an enhanced manner so that they can
become leader within market no matter what situation prevails. For this it is necessary for
British Home Plc to utilise information systems as it will assist them to make relevant usage of
data as well as minimise workload which will aid them within compliance of relevant
regulations. Through the usage of information system British Home Plc will be able to deliver
their services at reasonable prices as well as by this they will be able to acquire higher
profitability. By effective utilisation of system requirements of firms can be attained in an
appropriate manner within the market. For this it is mandatory for firm that their employees
make use of information systems while rendering their operations. This will boost up their
morale to deliver the services as per required standards and will also have knowledge related
with latest techniques that are being utilised by firms. It denotes a revolutionary way through
which effectiveness of business can be enhanced in terms of their productivity as well as
profitability in efficacious manner.
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Raw data can be collected by British Home Plc as per industries in which they are
working as well as store it within database. In addition to this, this data can be processed by the
usage of diverse software for mining the data to retrieve information from it. With respect to this,
they are disseminated into business processes as well as management activities depending upon
type of data it is. It will be including supply chain, enterprise, customer and knowledge
management with respect to business processes (Weichhart and et. al., 2016). On the other hand,
management activities comprises of planning, coordination, controlling as well as modelling &
decision making. This will aid British Home Plc within profitability as well as positioning within
market. This denotes that their will be affirmative impact on overall operations of organisation
and will furnish value added services. In addition to this, certain factors have been illustrated
below:
1. Assistance within business processes: IT aids firms within development of value added
services for all the human resources that are associated with them. British Home Plc can
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Illustration 1: Business Value added change

make use of information technology systems in their processes so that better results can
be attained in terms of accuracy and preciseness. Therefore, it is necessary for firm to
ensure that there systems are effectively maintained by which leader can ensure that
performance of employees do not gets affected.
2. Aids in decision-making: Performance along with sustainability of business completely
depends on ways by which firm formulates their decisions. This has been illustrated by
the above fig that raw data is processed into information that can be utilised by British
Home Plc. This information must be taken into account while making crucial decisions as
without this they might move in wrong direction & can face hefty losses (Mursu, Soriyan
and Korpela, 2018). Along with this, information technology will assists organisation to
have video conferencing with their clients for acknowledging their expectations.
3. Analysis and information storage: At present scenario , organisation are not using
traditional methods for storing information as it do not yield affirmative outcome.
Suppose if organisation is looking forward to share information with others then it will
lead them to top physically go to that location. But it might not be feasible each time.
Therefore, this is crucial for British Home Plc to utilise IT by which they can store as
well as analyse information by which amplified results can be attained.
From above it is clear that IT will furnish intensified results for British Home Plc which
will enable them to ensure performance and sustainability within market for longer duration of
time. As this yields value added services to their employees, customers and individuals who are
directly or indirectly associated with organisation.
LO4
P5 Recommend practical IT solutions for organisational scenarios that cover a range of common
business problems experienced in the workplace
Information technology system will assist British Home Plc to have amplified results as
by this they will be able to have intensified results. This can be understood by an example like by
the usage of transaction processing systems calculations can be easier as well as precise. It is
recommended that if they have their own application then it will lead them to have better results
as people at current environment wants to have digitalised services as they are being delivered on
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