Business IT Systems: Analysis of Functions and IT Solutions Report

This report provides a comprehensive analysis of Business Information Technology Systems, focusing on the application of IT across various organizational functions. It explores how IT systems, including Transaction Processing Systems (TPS), Customer Relationship Management (CRM), Management Information Systems (MIS), and Enterprise Resource Planning (ERP), are utilized to store and process data, contributing to the achievement of business objectives. The report delves into the data storage and processing methods employed by systems like Knowledge Management Systems (KMS) and CRM, and how they support value-added change and improve business operations. Furthermore, it evaluates the advantages and disadvantages of IT systems, recommending practical IT solutions for organizations and critically analyzing how these systems support business problem-solving. The report uses Tesco as a case study, examining how IT systems are used to improve efficiency, customer service, and overall business performance. The analysis covers various aspects of IT systems, including data management, communication management, and the integration of different departments through a centralized system.

Business information technology
systems
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Table of Contents
INTRODUCTION...........................................................................................................................3
P1 Analyse use of IT system for different functions of organisation..........................................3
M1 Evaluate how IT system are applied in different functions...................................................3
P2 How IT system contribute in achievement of objectives........................................................3
P3 Analyse different ways IT system store and process data for KM, CRM .............................3
M2 Critically analyse how IT system store and process data......................................................3
P4 How IT system can be used to support value added change for improving business
operation and performance..........................................................................................................3
M3 Critically evaluate advantage and disadvantage of IT system in value added......................4
P5 Recommend practical IT solution for organisation................................................................4
M4 How IT system support practical solution for business problems.........................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5
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INTRODUCTION
Information technology has transformed the way of doing business. It has enabled in doing
complex task in easier way. Also, IT is playing vital role in success of business and expansion in
new market. Moreover, it is supporting in generating value to business. There are many ways
through which IT system are used. It depends on type of business function. Apart from it, a lot of
data and info is stored and processed in order to obtain useful info. The decisions are taken with
high accuracy and efficiency. The report will explain about use of IT system for different
functions and how it contributes in goals and objectives. Furthermore, it will analyse how IT
system store and process info and data for CRM. Besides that, it will be described about how IT
system support for value change in enhancing business efficiency. And at last some IT solution
for company (Anderson, Dawson, and Radhakrishnan, 2016)
P1
IT is used by business to a great extent. It is used as per requirement of organisation. Along
with it, the use of system depends on nature and type of business. It has enabled in ease of
performing various operations and generating value in it. Now, data is stored and processed in
effective way which provide useful info that is used. However, in business different functions are
performed and according to it IT system is used. So, they are as follows (Bai, Kusi-Sarpong and
Sarkis, 2017)
Transaction processing system- it is a type of system in which all data regarding daily business
transaction are stored. Basically it is used in recording of financial transactions such as sales,
expense, etc there are many things related to it. This helps in providing report about how much
expense has incurred, for what and other things. In this way data is analysed and kept in proper
way.
CRM- this system is used for managing of customer data and info. Here, all data lf customer
such as name, address, contact no, e mail ia stored. The system is used by sales division to
develop strong relations with customers. The company is able to identify needs of people
through it and change in their taste and preference. With that info, new products are developed
(Benckendorff, Xiang and Sheldon, 2019).
MIS - it is a system which is used in Tesco where all data and info is stored. It allows different
departments and managers to use that data in managing daily function. Along with it, MIS is
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useful in storing of data in segregated way. Thus, data is accessed by management to take
decision as well.
Enterprise resource planning- this is an advance IT system which allows Tesco to allocate
resources on basis of requirements of division. They are able to do effective planning of what
type of resource is required. There is proper procurement of resources in business. This saves
cost as well as time of company. Moreover, planning is done for future regarding use of
resources (Black, Danielson, and Zito, 2016)
M1 Evaluate how IT system are applied in different functions
It is identified that there are many types of IT system which is used in Tesco. The TPS is
used by finance and accounts function for storing of data and info. Furthermore, it allows in
dealing with daily transaction of sales and expenses. Similarly, MIS is applied in management
function where data and info is stored related to daily activities and operations. This allows
manager to take decision of managing things. Thus, MIS process data and provide useful info so
that task are managrd in efficient way (Cotten, Haase and Hotes, 2018)
P2 How IT system contribute in achievement of objectives
It has been analysed that IT system are highly useful in attaining of business object. This is
because it provide crucial info by processing of data. This info is used in making changes within
operation and function. There are many uses of IT system as it helps in providing useful info
which can be used. Moreover, all company operations are controlled and operated through it. So,
if there occur any error then it is identified and according changes are made. Similarly, quality
standards of product is maintained through IT. Moreover, use of IT helps in proper planning of
daily activities and completing of goals. It allow in taking smart action and decision. The system
store all kinds of info and it can be easily whenever required. Thus, it helps in taking Right
decision in right time and finishing task (Diatmika, Irianto and Baridwan, 2016) the system
support and assist in making bring innovation snd creative change in process. This leads to
change in business operations. Through proper planning strategy is developed to attain goals.
By maintaining of data it is easy to segregate task. Hence, on basis of it goals are formed
and operations are executed. This is because IT system help in making things easy by offering
useful details. IT system collect and process data that provide useful info this information by
identifying weak areas within business. This enables in improving that area by redesign of
process or procedure. Likewise, there is change in performing of operations. This allows in
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eliminating variation from process and helps in faster processing of operation. The use of BI
system in Tesco gives info of sales data. With that customer services are provided to people
which increases their satisfaction. In this way their needs are fulfilled. It also helps in protecting
confidential data which can be used for further process. However, the structure and function of
organisation is modified with IT system and made it flexible so that there is fast flow of data and
info from it. So, a centralized server is developed for communication and where all data is
stored. This makes it easy for Tesco to access and use data in effective way.
P3
In business each IT system consists of features and process through which data is stored
and processed. This depends on type of info and system which is being used. The data processed
provide useful info which is used by business. It enables them to take effective decision. Tesco
uses those advance system which enable in proper processing of info . For instance, MIS is used
to gather and store large data sets. Then, relevant info is accessed by manager to get effective
outcomes. Hence, it is evaluated of processing data for various systems is described as (Lohrke,
Frownfelter-Lohrke and Ketchen Jr, 2016)
KMS - it is a type of system in which data and info is stored snd processed in different way.
Here, data is processed in context of knowledge. Apart from it, data is stored in different forms
such as document, report excel etc KMS is system which supports overall business operations
and provide accurate findings that is accessed from user specific groups. The knowledge is
shared with different divisions and contains info of many things like future prediction, market
trends etc thus, data and info related to particular group
Customer relationship management- In this system the data of all types of customers is stored in
it. The data is stored on basis of certain categories such as loyal, first time buyers, area wise,
complain wise etc the company analyse data to find out relationship between customer and their
purchase decision. Furthermore, data is processed in order to enhance the customer services.
Also, CRM system is integrated with various sales point so that data is directly recorded into it.
However, processing is done in such a way that data related to particular aspect or variable is
included in it. For instance, processing is done of sales, market segment customer needs etc in
addition, data is processed on basis of customers complain and issues (Mitchell, Petter and
Harris, 2017)
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Data management system- in this variety of data is gathered, collected and stored. The system
consists of large data set containing variety of data. In addition, Tesco uses this system as it gives
insight and in depth analysis of market info along with threats, opportunities, and data is stored
related to various to products and its sales. Besides that, data is processed on basis of behavior of
buying of product by customer. This gives insight in what changes are to be made for them.
Communication management system- here, data is stored regarding the communication between
customer and various departments in Tesco. The company is using various CMS which help to
communicate and interact with others such as e mail, Smart phones, voice mail etc so, all the
data of these is installed with system. Then, processing is done on basis of type of information
required in it (Mossialos, Wenzl and Sarnak, 2016)
M2 Critically analyse how IT system store and process data
In Tesco there are various types of system which is used to store and process data. The
CRM store data of customer and process it on basis of product info. It means on basis of needs
processing is done. CRM also process data on basis of buying behavior of customers. The data
stored is related to complain of customers and reason for it. So, similarly data is also processed
as per. Alongside, KMS store large data set of business knowledge. Like, processing is done in
context of it. It is different from CRM and other system. In CMS data is stored on basis of
communication method and channel.
P4
The main purpose of using IT system is to enhance business performance. It is done in
order to gain competitive advantage and achieve goals and objectives in effective way.
Moreover, the system helps in solving complex business problems. Besides, it brings change
within operation by finding out weak area. This led to ease in doing of operations and enhancing
performance (Randall, Goel and Abujamra, 2017)
It helps in maintaining quality of product through entire process. This is done by installing of
advanced system which check each product quality as per defined standard. In this way, business
operations are improved and quality of product is maintained.
IT system collect and process data that provide useful info this information by identifying weak
areas within business. This enables in improving that area by redesign of process or procedure.
Likewise, there is change in performing of operations. This allows in eliminating variation from
process and helps in faster processing of operations. Thus, in this way value is generated.
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The use of information system provides statistical data about various operations and process.
Thus, as per needs operations are done and target is achieved. The use of ERP allows in efficient
use of resources within operation. In this way, efficiency is improved.
In addition to it, a network is created in IT where communication is done and data and info is
shared. With that data is shared quickly and decision is taken.
IT system is useful in finding out loophole within process. They also give suggestions that how it
can be enhanced. With that, changes are made into it to make it more effective. This result in
increasing operational efficiency. The performance of Tesco is increased by integrating all
departments into a centralized system. They are able to interact and all reports is shared with that
system. Besides, with proper communication operations are performed on time. Moreover, use of
IT helps in proper planning of daily activities and completing of goals. It allow in taking smart
action and decision. The system store all kinds of info and it can be easily whenever required
(Ravichandran, Han and Mithas, 2017)
M3 Critically evaluate advantage and disadvantage of IT system in value added
The system installed in Tesco is used for various purposes. They are having several pros
and cons in adding value to business. This is as follows
Advantage
The system used in it may not provide accurate and relevant data and info. It may led to
improper and ineffective implement of system which can result in not adding value to company.
There are many other things as well.
When business get useful and valuable information from data then it is used to transform
operations and process. It led to rise in efficiency of it and adding value to company.
With help of IT system innovation is implemented within process. This allows in changing of
process which results in adding value to business operations.
Disadvantage
The IT system has to be maintained properly so that there is no fault or error in it. So, it requires
a huge cost for it. This increases burden on company as well.
Any technical error in IT system leads to failure of entire process. Thus, it directly affect on
operations and process.
The system has to be updated regularly so it takes a lot of time and according process has to be
designed agaia. In this value is affected (Ravichandran, Han and Mithas, 2017)
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P5 Recommend practical IT solution for organisation
It is necessary for Tesco to implement some information system so that they are able to
solve business problem. The use of system enable in providing different solution so that
operational efficiency is increased and goals and objectives are attained. However, with
advancement in IT there is need to install variois system. They are explained as below
DSS- the decision support system can be implemented by Tesco which will help in taking
effective decision. Through it, management of company will be able to take decision as per
needs. Also, system will provide them useful info of decision and then making things easy for
them. It will assist in solving problem of decision making. Thus, right decision will be taken that
will help in doing operations in smooth way.
The MIS can be used as by company as it will help in storing all data and info in
segregated way. so, when tesco require any type of info in order to make decision they can use
MIS. it will be useful in providing relevant info. thus in this way overall functioning of
organisation can be managed in proper way (Randall, Goel and Abujamra, 2017).
Apart from it, MIS will provide crucial info to all department of tesco. thus, managers
will gain knowledge about what decision can be taken. hence, they will become expert in taking
decision in proper way. besides that, on basis of past data and info decision will be made. it will
increase new concept which not only basis of knowledge but also make decision as per situation.
MIS will consist of all data and info that is crucial in decision taking. so, whenever there is some
problem in it then with use of MIS tesco manager can solve it. then, that data can be stored on
system or server which can be used in future. Therefore, MIS is a base for taking all types of
decision whether it is tactic or strategic in organisation. MIS lays overall foundation of TESCO
in terms of business establishment. It is concrete decision through platform which are adequately
managing policies and regulations. (Mossialos, Wenzl and Sarnak, 2016)
M4 How IT system support practical solution for business problems
It is evaluated that there are several problems which is faced by business. These problems
have to be solved so that operations are not affected. So, Tesco is facing problem of ineffective
decision making by manager. They are not getting enough data and info to manage daily task.
Thus, use of MIS will enable in providing them relevant and accurate information so timely
operations are managed. In addition to it, MIS will support in giving various options of how to
manage task. Likewise, implemented of DSS will help in solving problem of decision making.
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The manager will get idea and support from DSS to timely take decision. It will enable in taking
effective decision as well (Diatmika, Irianto and Baridwan, 2016)
CONCLUSION
Hereby, it is summarised that IT is playing a vital role in success of business. There are
various types of IT system which is used within business function such as ERP, CRM, MIS etc.
These all enable in generating value by providing useful details and info. The operation
efficiency is improved by use of software and tools. However, there are various ways in which
data is stored and processed in Tesco like CRM, CMS, DMS etc. The IT system support in value
change by maintaining quality of product, providing useful details and info etc in addition, Tesco
can use several IT solutions such as DSS, MIS that will allow in solving Business problem.
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REFERENCES
Books and journals
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