Impact of IT Systems on Business Performance and Growth

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This report delves into the application of Business Information Systems (BIS) within an organization, specifically focusing on JS Supermarket. It explores the utilization of IT systems across various functions such as marketing, production, accounting, and human resources, highlighting their contribution to achieving organizational objectives. The report analyzes how IT systems support decision-making, marketing and business growth, customer support, and resource management. Furthermore, it examines different IT systems for data and communication management, including knowledge management and customer relationship management. The report also discusses the role of IT in supporting value-added changes to improve business operations, performance, and sustainability, and provides IT system solutions for different organizational scenarios, such as the airline, retail, and banking industries, addressing potential issues like security and cloud storage.
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Business Information
Technology Systems
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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Use of IT systems with different functions of an organisation.............................................1
1.2 IT system contribute for achievement of objectives.............................................................2
TASK 2............................................................................................................................................4
Different IT systems store and process data for knowledge, customer, data and
communication management......................................................................................................4
TASK 3............................................................................................................................................5
IT system to support value added change for improving business operations, performance and
sustainability...............................................................................................................................5
TASK 4............................................................................................................................................6
IT system solution for organisational scenarios to cover business problems.............................6
CONCLUSION................................................................................................................................7
.........................................................................................................................................................7
REFERENCES ...............................................................................................................................8
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INTRODUCTION
Business Information Systems (BIS) is degree which teaches relationship between
technology and people in company environments. Professionals evaluate, develop and implement
information and communicating technologies for improving process of business and enhancing
overall firm performance. BIS comprises information of entity and analysing through help of
application of technology. The given assignment is based on JS supermarket which deals in food
and beverages (Chang, 2016). Here will be discussing about role of information technology (IT)
systems in achieving organisational objectives and analysing flexible and reliable of system for
requirement of entity. Also report includes system which support value added change and
recommendations for practical IT solutions to business scenario.
TASK 1
1.1 Use of IT systems with different functions of an organisation
Any organisation whether small or big, should have system for collecting, processing,
storing and sharing data. In past, task requires time and paperwork but in today's era, firm uses
modern technology for data processing and decision making. Information Technology is
component which work together for managing, processing and storing data. It is combination of
telecommunication network, software and hardware. JS supermarket also uses such system for
improving business operation, competitive edge and making strategic decisions. It helps in
achieving goal and objectives of entity which assist in effective decision making. Use of IT
systems with different functions of an organisation are as follows:
Marketing and sales- Marketing activities means planning, selling and promoting goods
and services for satisfying customer need and objectives. IT marketing support decision
regarding product, price, place and promotion. JS supermarket uses market intelligence for
knowing about competitors and make strategies for survival at market place (Chen, Chiang and
Storey, 2012). Subsystem of marketing includes information related with production, sales
forecasting. There are many IT system used by JS supermarket such as decision support system
(DSS), point of sale scanning (POS), electronic data interchange (EDI). Sales forecasting tool is
used for knowing about actual demand in market.
Production- For manufacturing or production of products and services, new technology
has been used which calls for new market place. Market place can be flexible, alienage.
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Production includes subsystem such as quality control, design and engineering, scheduling and
logistics, production costing, planning. JS supermarket uses IT software for manufacturing such
as computer aided engineering (CAE), computer aided design (CAD) which provide benefit to
firm for achieving result (Deng and Chi, 2012).
Accounting and Finance- This function manage flow of money and other asset out and
in of an organisation. It includes accounts receivable/payable records, payroll, ledger, inventory
control. Financial IT perform following functions such as forecasting, planning, internal auditing
and funds management for business which is helpful while preparing profit & loss account,
income statement, cash flow, balance sheet. JS supermarket also uses accounting and finance IT
for proper maintaining of data and information related with business. It helps in decision making
and knowing about profit and loss incurred during period.
Human Resources and Administration- Human resource information system (HRIS)
support HR functions of organisation with adequate and relevant information. It reflects
recognition of people working in firm as most valuable assets. The complexity of HRM has
grown because of new rules, regulation and laws. It assigned responsibilities to internal
stakeholders such as performance checking, involved in strategic and tactical planning & control.
HRIS has information of employees which can be position, skills, benefits, applicant related for
assigning work and performing. JS supermarket applies this function for proper planning,
recruiting & workforce management, compensation & benefits (Eason, 2014). Similarly,
administration work like query handling, orientation programme for new joinee are taken care
through helps of HRIS for effective results.
1.2 IT system contribute for achievement of objectives
Success of business depends on various factors which provide sustainability and growth.
IT provide opportunity for analysing specific data and planning firm journey. Information
Technology suggest various tool in order to solve complex problems and plan scalability of
entity. IT system contribute for achieving objectives of JK supermarket in following ways:
Decision Making- It is very important for JK supermarket to make quick and speedy
decisions for business. As success depends on market research of business which enables
management to make right decision. Research can be conducted in many ways such as: online
surveys, blogs, forums, group discussion, personal interview, world wide web. Nowadays,
google analytics, Microsoft CRM dynamics, big data are tools which helps in extracting useful
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information for decision making. Online techniques not only give real time responses through
potential audience but also check accuracy of data and information by reducing risk of human
errors (Laudon and Laudon, 2015). Through help of Information Technology, analysis of each
and every data and information can be done for taking better decision for both employees and
company which result in achieving objective.
Marketing and Business Growth- Marketing enables management for identify target
audience first and ensuring their need, trend and want. It covers public relations, promotion,
advertising, sales which impacts on growth on business. It assist in reaching potential customer
to supply them products. With help of digital marketing promotion of products and services is
done globally. It has various concept such as search engine optimisation (SEO), pay per click
(PPC), discussion forum, SMS, email, MMS, social media. JS supermarket use digital
technology because without this long term success cannot be gained. Thus, this result in
achieving goal and objective of business effectively and efficiently. Through helps of
Information Technology, proper marketing can be done for products which attract consumer for
buying that goods which leads to business growth and achievement of objectives.
Customer Support and Satisfaction- Customer satisfaction is key for business success
which cannot be achieved by help of real time support process. Success really depends upon
knowing consumer and their need, want, satisfaction level and trends. Communication helps in
understanding individual demands, problems and providing solution. IT provide channels for
communicating such as social media, online, email. Nowadays, customer relation management
(CRM) is used effectively and efficiently for understanding consumer and abstract valuable data.
Through helps of IT system, JS supermarket meet need and demand of visitors and provide them
satisfaction (Mithas and et. al., 2012).
Resource Management and Globalisation- It is necessary for company to manage all
resources. It is very difficult for top management to maintain data such as financial, HR for large
and medium size organisation. As IT has played an effective role in automating complex
problem and giving friendly solutions to organisation. Currently, enterprise resource planning
(ERP) is used for monitoring and managing resources through laptops, smartphones, computer,
tablets which introduced idea for globalisation. JK supermarket uses cloud bases solutions for
managing virtual or physical offices and staff worldwide.
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TASK 2
Different IT systems store and process data for knowledge, customer, data and communication
management.
Knowledge Management (KM)- It is process for sharing, creating, using, managing
knowledge and information of organisation which refers to multidisciplinary approach to achieve
objectives. JS supermarket use KM for process and storing of data. When customer purchase
goods and services data is recorded in system through help of IT information it can be abstracted
(Mueller, 2012). JS supermarket can easily know about regular and loyal consumer from system
and know about their need, want and demand and accordingly provide benefit to them. In this
way IT helps in storing and processing data for sustainability and growth of business.
Customer Relationship Management (CRM)- It is approach for managing company's
interaction with potential and current consumers. It use history of customer for data analysis in
order to improve business relationship with people for retention and sales growth. Here, JS
supermarket uses CRM for maintaining effective relationship with their people. Through help of
IT system where data are stored and processed , list of loyal and regular customer can be found
easily and company need to provide them discount, coupons for better relationship. It assist in
profit making and appropriate decision making of firm.
Data Management- Data management is practice of organising to maintain and process
data to meet ongoing information. JS supermarket have to analysed each and every data for
running of business. IT helps for minimizing errors to improve quality and use best strategy. If
data are managed properly, updated then fast access can be made for all employees in entity.
Proper management of data and security is important to protect from problems and risks. JS
supermarket helps in managing data quality and access. This assist in better results for
organisation and enhance better decision making. In this way data management contributes for
achieving goal and objective of firm (Piotrowicz and Cuthbertson 2014).
Communication Management- Communication management is systematic planning,
monitoring, implementing and revision of communication channels within firm and between
organisation. It includes entity which is connected with channel, network and technology. It
helps in developing and maintaining relationship with customer through effective
communication. IT enable to communicate at any part of world for better result. Through
communicating also data are processed and stored to get effective result for growth and
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sustainability. Global expansion of commerce and trade requires networking channel for
fulfilling needs and want through communication. IT has made life easy and simple which assist
in achieving final goal of entity. Thus, in this way communication management store and process
data through help of IT system.
TASK 3
IT system to support value added change for improving business operations, performance and
sustainability.
Value added change means enhancing company for giving its service or good before
offering product to consumers (Popovič and et. al., 2012. There are various types of IT system
which is useful for goal and objective achievement which includes transaction processing system
(TPS), management information system (MIS), decision support system (DSS). It helps in
improving business operations, performance and sustainability.
TPS provide way for collecting, storing, modifying, processing, transaction and take
multiple task at a time. Here, data are stored in database which used to produce reports such as
wages, inventory, register. Through helps of value added change and TPS provide sufficient
information to individual which enhance and improves operations, performance and
sustainability (Information Systems and IT Systems, 2018).
MIS uses data to create reports in such way that provide benefits to manager for business
decision making. Such reports includes summary, ad hoc and exception which helps in
increasing efficiency of managerial activity. MIS also accept valued added changes in firm for
better result for both employee and company. JS Supermarket use these IT system along with
change behaviour which attract large number of customers and improve operations, performance
and sustainability.
DSS is most important IT system which assist in analysing and working data to generate
statistical projections. It improve quality and support manager rather than judging. It solve
problem by taking external data. DSS also accept value added change in organisation for
improving quality, operations and performance. IT system support value change in JS
supermarket for sustainability (Rainer and et. al., 2013).
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TASK 4
IT system solution for organisational scenarios to cover business problems
Nowadays every business use Information Technology for conducting business activities.
Here, three different sectors are selected such as Airline Industry, Retailer Industry and Banking
Industry (Reichert and Weber, 2012). As these use IT in business but sometime they may faces
issues such as security and cloud storage which are described below:
Airline Industry- With use of IT, airline industry provide help and facilities to
passengers in terms of transportation, online booking, reservation. British Airway is United
Kingdom based airline firm which provide facilities to customers. This firm use Information
Technology for service providing. As British Airway has faced some problems related with IT
which is described below:
Security- This was main issue faced by British Airway in which data were hacked by
hacker related with financial and personal. These caused problem to large number of customer
and they also received fake call regarding cards. So in order to solve such issues, company have
to hire expert and use software to protect data and information (Venkatesh, Thong, and Xu,
2012).
Cloud Storage- Cloud storage means storing of data at single or one place in order to
avoid issues and problems. Because of storing data at one place, British Airway can lost many
data. In order to get relief from such problem it can use new application where data can stored
and easily retrieved.
Retailer Industry- Retailer is way of selling goods and services to customer through
help of many distribution channel which can be online and offline. Marks and Spencer (M&S) is
retailer company located at London which provide foods, grocery items to customers. It has
faced issues related Information Technology such as security and cloud storage.
Security- At time of online service company faces security problem related with leak of
data of customer. So in order to solve such problem M&S should use encryption and e-wallets
for payments.
Cloud Storage- M&S face problem related with data redundancy which is arsing issue in
current scenario. In order to overcome from such problem company should hire IT expert for
maintaining data accurately and effectively (Wagner, Beimborn and Weitzel, 2014).
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Banking Industry- Bank is financial institutions which provides banking and other
services to customers. It is subset of financial service and plays major role in global economies
and economic growth (Weske, 2012). HSBC is multinational bank which provides financial
services to people in terms of loans, accounts. Information Technology is used by HSBC for
making financial transactions. Here, security and cloud storage are main issues for bank which
can be solved by following way:
Security- Many customer face hacking of bank data and information by hacker which
create problem for user. Other issues also arises which are malware, data bugs. In order to solve
such issue network security can be used for both public and private. IPS protocol secured
company can use private network and senders & receivers can use public.
Cloud Storage- When all data stored at one place electronically is called cloud storage.
As HSBC work for customer which provides service throughout world. Company face issues
which need to be overcome through help of inhibitor to cloud deployment (Willcocks, 2013).
CONCLUSION
From this assignment it can be summarised that Information Technology is very
important for all types of organisation whether big or small. JS supermarket use IT in various
functions such as human resource & administration and production for achieving goal and
objective of firm. Through help of IT proper decision making and satisfaction to consumers.
With assist of IT system data can be store and process for better communication, relationship and
knowledge management. Report also contain valued added change which is adopted by JS
supermarket for attracting consumer to improve performance, operations and sustainability.
Security and Cloud storage are main issues faced by retailer, airline and banking industry which
is solved through new application, encryption etc.
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REFERENCES
Books and Journals
Chang, J. F., 2016. Business process management systems: strategy and implementation.
Auerbach Publications.
Chen, H., Chiang, R. H. and Storey, V. C., 2012. Business intelligence and analytics: from big
data to big impact. MIS quarterly, pp.1165-1188.
Deng, X. and Chi, L., 2012. Understanding post adoptive behaviors in information systems use:
A longitudinal analysis of system use problems in the business intelligence context.
Journal of Management Information Systems. 29(3). pp.291-326.
Eason, K. D., 2014. Information technology and organisational change. CRC Press.
Laudon, K. C. and Laudon, J. P., 2015. Management information systems (Vol. 8). Prentice Hall.
Mithas, S., and et. al., 2012. Information technology and firm profitability: mechanisms and
empirical evidence. Mis Quarterly, pp.205-224.
Mueller, B., 2012. Additive manufacturing technologies–Rapid prototyping to direct digital
manufacturing. Assembly Automation. 32(2).
Piotrowicz, W. and Cuthbertson, R., 2014. Introduction to the special issue information
technology in retail: Toward omnichannel retailing. International Journal of Electronic
Commerce. 18(4). pp.5-16.
Popovič, A., and et. al., 2012. Towards business intelligence systems success: Effects of maturity
and culture on analytical decision making. Decision Support Systems. 54(1). pp.729-739.
Rainer, R. K., and et. al., 2013. Introduction to information systems. John Wiley & Sons.
Reichert, M. and Weber, B., 2012. Enabling flexibility in process-aware information systems:
challenges, methods, technologies. Springer Science & Business Media.
Venkatesh, V., Thong, J. Y. and Xu, X., 2012. Consumer acceptance and use of information
technology: extending the unified theory of acceptance and use of technology. MIS
quarterly, pp.157-178.
Wagner, H. T., Beimborn, D. and Weitzel, T., 2014. How social capital among information
technology and business units drives operational alignment and IT business value.
Journal of Management Information Systems. 31(1). pp.241-272.
Weske, M., 2012. Business process management architectures. In Business Process Management
(pp. 333-371). Springer, Berlin, Heidelberg.
Willcocks, L., 2013. Information management: the evaluation of information systems
investments. Springer.
Online
Information Systems and IT Systems. 2018. [Online]. Available through:
<https://sourcemaking.com/uml/basic-principles-and-background/information-systems-
and-it-systems>.
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