HND Business IT Systems: Analyzing Impact and Recommending Solutions

This report examines the role and impact of IT systems within a business context, using a case study of A-Z Accounting (AZA), a small to medium sized enterprise (SME) providing accounting services. It explores the various functions of IT systems, including data and communication management, and their contribution to improving organizational performance, solving business problems, and achieving objectives. The report delves into how IT systems store and process data for knowledge and customer relationship management, providing ways IT systems can support value-added changes in business operations. Practical IT solutions are recommended to address common business problems experienced by AZA, along with potential consequences of their implementation.

UNDERSTANDING THE
USE OF IT SYSTEMS IN
BUSINESS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Role and purpose of using IT systems by analysing their impact on different functions of the
organization.................................................................................................................................1
Contribution of IT systems in in improving organisational performance, solving business
problems and accomplishing organisational objectives..............................................................2
TASK 2............................................................................................................................................3
Different ways IT systems store and process data for knowledge management, customer
relationship management, data management and communication management.........................3
TASK 3............................................................................................................................................4
Ways in which IT systems can help AZA in supporting value-added change for improving
business operations, performance and sustainability with its advantages and disadvantages.....4
TASK 4............................................................................................................................................5
Recommended practical solutions for the effective monitoring that covers all common
business problems experienced by AZA with their potential consequences of their
implementation of AZA...............................................................................................................5
CONCLUSION................................................................................................................................6
REREFENCES................................................................................................................................7

INTRODUCTION
IT system is a kind of system that helps an organization in data management, customer
relationship management, knowledge management, enhancing operational efficiency in a better
manner (Kasemsap, 2018). Today adaptation of IT system has become extremely important for
an organization as it helps increasing their overall efficiency in a much better and appropriate
manner. This assignment will focus upon a case study of A-Z Accounting organization is an
SME who provides accounting services to registered businesses and self-employed people and
recently that have been facing some business issue because of which many of their customers are
switching to other accounting firms. This assignment will cover understanding of the role of
different IT systems, different ways IT systems store and process data, evaluation of IT systems
that support value-added change, and recommend practical IT systems solutions.
TASK 1
Role and purpose of using IT systems by analysing their impact on different functions of the
organization
Information system plays a vital and important role within an organization. There are
different kinds of IT systems and each of them are used for different purposes within an
organization. IT system can be defined a type of system which is used for management,
processing and storage of information or data of an organization. IT systems can impact an
organization and its functions in different ways. Data or information within organization is
maintained with the help of effective communication, record keeping, analysing data, decision
making etc. Organizations use this data or information for bringing improvement within their
business operations, taking strategic decisions and gaining competitive advantage. There are
different kinds of IT systems and each of them have different role within an organization and
impacts different functions of an organization differently. Main organizational functions that are
impacted by IT system are:
 Communication is one of the most important function of an organization. IT system helps in
development of effective internal and external communication (Shollo and Galliers, 2016).
IT systems helps in providing different channels with the help of which communication
within and outside organization can be maintained such as emails, social media, video
conferencing, collaboration software etc.
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 Data management is another important function of an organization which is impacted by an
organization. Today due to advancement in technology and increasing competition for
organization, data management has become one of the most important and major challenge
for organizations. But with the help of IT systems it has become much easier for
organizations to manage their data in an effective manner. These IT systems can store,
manage and access different kinds of data such as text data, audio data, and video data and
many other kinds of data. Especially for organizations like AZA data management is one of
the most important function which is required to be improved.
 IT system also helps in process improvement (Beynon-Davies, 2020). It is important for
organizations to focus upon bringing improvement within their overall processes in order to
reduce operational cost of the company by collaborating different departments, increasing
paperless digital work etc.
Contribution of IT systems in in improving organisational performance, solving business
problems and accomplishing organisational objectives
Information system plays a vital and important role in enhancing overall performance of an
organization. Information technology systems are used in different ways by the organization
which not only help in enhancement of their overall performance but also help an organization in
resolving their business problems and accomplishing their desired organizational objectives.
Implementation of Information technology system within an organization can help them in
effectively managing their customers data and maintain communication with all of their
stakeholders. It helps in increasing performance of an organization in many ways.
Implementation of IT system provides a platform to the organization where they can store all
kinds of their data, extract then any time and from anywhere. This further helps in increasing
effectiveness and accuracy of desired results (Eliseev, Kachalov and Farkhadov, 2017). It is also
helping in increasing accuracy of financial or accounting calculations as well as speed up overall
process of extracting desired data which further contributes in increasing overall performance of
the organization.
IT systems can also help in resolving all kinds of business problems in a proper manner. IT
system can automate routine task, store all kinds of data and can easily extract required data
because of which it becomes much easier for organization for organization to take measures to
resolve business problems faced by them. Problems that were faced by AZA organization such
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as management of their client’s data, slow service, delayed response, issues in recording and
sharing information etc. IT systems will help in storing all the data and documents at one place
so that it can be accessed and shared with anyone any time. IT system will increase response
time and time duration in which service is provided to their clients. Not only this need of
responding to each and every client can also be eliminating as all the clients can record their
details online on IT systems which also help them in reducing waiting time of clients (Sirsikar
and et. al., 2016).
IT systems can also be used for achieving business objectives of n organization for
example increasing customer base by 10 percent. IT systems can effectively maintain
communication with customers and can be used for marketing of their services. not only this, it
also helps in reaching large number of customers together in a timely manner.
TASK 2
Different ways IT systems store and process data for knowledge management, customer
relationship management, data management and communication management
There are different ways in which IT systems can be used for data processing and storing for
different purposes such as:
Knowlagent Management: IT systems can be used for storing and processing data for retrieval
knowledge, extract hidden knowledge, capture important knowledge in a much better and
appropriate manner. Such systems are also used by organization for analysing current data and so
that it can be used for decision making and for other purposes (Gonzalo and et. al., 2017). Today
IT systems have become one of the most important components for knowledge management as it
helps an organization in many different ways. it helps organization to analyse problems faced by
the business and ways in which it can be resolved, provide required knowledge so that decision
making can be done, helps in making predications so that according to the prediction’s strategies
can be developed.
Customer relationship management: IT systems can be used for storing and processing data
and information of organization’s potential customers. it can also help company in manging
effective interaction and relationship within their potential customers as it not only helps
business in staying connected with their potential customers by maintaining effective
communication, responding to their feedbacks and providing them with after sales service. For
example: Tesco uses IT systems for providing after sales service to their customers. in which
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customers can not only provide feedback about the products and services but can also provide
suggestions to the company (Vuolo and et. al., 2016). If they have any kind of issue or
compliment within their current products or services then they can launch a complaint and that
complaint along with customers details is displayed to the customer exercise in order to resolved.
Data Management: IT systems such as database management system provides various kinds of
functions that helps an organization in storing data within the system in a sequential manner
within categories which further makes it much easier for organization to extract required data in
a proper manner. Not only this it further helps in controlling access to data i.e. sensitive or
important data can be accessed by only limited number of users which further increases
protection of data.
Communication management: IT systems provide a platform though which both internal and
external stakeholders of an organization can communicate with each other any time, regardless
of their location and time in a secure manner.
TASK 3
Ways in which IT systems can help AZA in supporting value-added change for improving
business operations, performance and sustainability with its advantages and disadvantages
Value added chances are those kinds of changes that can help an organization in reducing
their operational cost, reduce change of errors or can omit it and can increase accuracy of their
results and enhance business performance. There are various kinds of value- added changes that
can be brought with IT system that can help AZA in bringing improvement within their business
operations, performance and sustainability. There are various kinds of project management
methodologies that can be used for creation of value and competitive advantage. Adaptation of
project management methodologies will help AZA in bringing improvement within their current
IT system so that issues faced by them can be addressed and resolved. Not only third these
methodologies can also provide guidance to AZA so that they can increase efficiency of their IT
systems so that additional value can be added with the organization. Project management method
can also be used for development of new IT system.
Adaptation of project management methodologies can help AZA to identify their main
issues that are being faced by then because of their non- effective IT system such as slow
response to customers, long waiting time for customers, issues in sharing information or
documents with other department or offices at different locations etc. (Gholami and et. al., 2016).
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This will further help them in creation of value creation strategy so that they can take
effective decisions, resolve issues faced by then and gain cost benefit as well. For value added
change AZA can focus upon adopting new approach for bringing improvement within IT
Position of the organization so that business areas that has been impacted because of which they
are losing their potential customers can be improved. One of the most common system
development methodology that can be used for gaining value added change for improvement
within IT system is spiral system development methodology because this method mot only helps
in bringing improvement within their IT system but will also help in identifying risk associated
with each development phase.
TASK 4
Recommended practical solutions for the effective monitoring that covers all common business
problems experienced by AZA with their potential consequences of their implementation
of AZA
Practical solution of AZA for covering all the business problems faced by AZA are:
 They can use high availability architecture for data management and storage such as SQL
server, Oracle etc. This will help them in management of their customers data. Not only this,
it will also make sharing of customers information and documents with other departments
and location much easier.
 They can also use a proper decision- making model which will help them in identifying and
analysing a problem in depth and resolve and take effective decision for it in a proper manner
(Gholami and et. al., 2016). Some of the most common decision- making models that can be
used by AZA are group decisions, decision support, artificial intelligence and many more.
Adaptation of one of these models will help AZA to resolve issues such as long waiting time
for customers, resolving operational issues like sharing of key information between the
offices etc.
 They can adopt and implement advance IT systems like MIS system so that they can
effectively store and manage data storage, information sharing, communication, security etc.
Adaptation of this MIS system will help them in storing all kinds of data, share data with
other offices, manage customers information and maintain effective communication with
them.
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For monitoring and evaluation of IT systems time to time auditing can be conducted.
Audit will help AZA to evaluate their IT system, issues within it so that improvement within it
can be brought which will further help in increasing operational efficiency of the organization.
CONCLUSION
From the above report it has been analysed that IT systems are one of the most important
part of an organization that not only helps the organization in enhancing their overall
performance, increase operational efficiency but also helps them in gaining competitive
advantage, retail their current customer base and enhance their business. Implementation of IT
system helps in achievement of business objectives and omit chances of errors within their
business operations and processes.
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REREFENCES
Books and Journals
Beynon-Davies, P., 2020. Business information systems. Red Globe Press.
Eliseev, A., Kachalov, D. and Farkhadov, M., 2017, November. Modern methods to collect,
store, and process big data in large-scale systems. In 2017 5th International Conference
on Control, Instrumentation, and Automation (ICCIA) (pp. 179-182). IEEE.
Gholami, R., and et. al., 2016. Information systems solutions for environmental sustainability:
How can we do more?. Journal of the Association for Information Systems. 17(8). p.2.
Gonzalo, J.D., and et. al., 2017. Value-added clinical systems learning roles for medical students
that transform education and health: a guide for building partnerships between medical
schools and health systems. Academic Medicine. 92(5). pp.602-607.
Kasemsap, K., 2018. The role of information system within enterprise architecture and their
impact on business performance. In Global Business Expansion: Concepts,
Methodologies, Tools, and Applications (pp. 1078-1102). IGI Global.
Shollo, A. and Galliers, R.D., 2016. Towards an understanding of the role of business
intelligence systems in organisational knowing. Information Systems Journal. 26(4).
pp.339-367.
Sirsikar, S., and et. al., 2016. Database Agnostic ETL Tool: An Economical Solution to Store
and Process Data. International Journal Of Computer Science And Applications. 9(1).
Vuolo, F., and et. al., 2016. Data service platform for Sentinel-2 surface reflectance and value-
added products: System use and examples. Remote Sensing. 8(11). p.938.
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