Analyzing IT System Implementation and Impact on Tesco's Business

This report provides a comprehensive analysis of the implementation and impact of Information Technology (IT) systems within Tesco, a multinational retail company. The report begins by exploring the diverse applications of IT across various functions within the organization, emphasizing how technologies like Enterprise Resource Planning (ERP) systems contribute to efficient accounting, financial management, and strategic planning. It then delves into how IT supports the achievement of organizational objectives by enhancing operational excellence, improving decision-making processes, and facilitating global expansion. The analysis extends to examining how IT systems store and process data for knowledge management, customer relationship management (CRM), data management, and communication management, highlighting their significance in managing customer interactions, streamlining data processes, and fostering effective communication. Furthermore, the report evaluates how IT systems drive value-added change, improving business operations, performance, and functionality. Finally, the report recommends practical IT solutions to address common business challenges within Tesco, providing insights into how IT can be leveraged to optimize various aspects of the company's operations. The report underscores the critical role of IT in Tesco's success and competitive advantage.

BUSINESS INFORMATION TECHNOLOGY SYSTEM
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Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
P1 Analyse the use of IT system within the different function of an organization.....................3
P2 Explain how IT system contributes to the achievement of objectives in a specific
organizational context..................................................................................................................4
P3 Analyse the different ways IT system store and process data for knowledge management,
customer relationship management, data management and communication management
system..........................................................................................................................................5
P4 Evaluate that how IT system can be used to supports the value-added change for improving
business operations and performance, functionality....................................................................7
P5 Recommend practical IT solution for organizational scenarios that mainly covers wide
range of common business problem at workplace.......................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Information technology or IT means the set of any components which help the business
to work together so that they can manage the data processing and organize their storage. This
system supports the company in running of their key aspects which include the book keeping,
data management and analysis of the data, improving business operations, gain competitive
advantage over their competitors and increase their market share. Tesco has started using IT
technology to improve their operation in the market. This assignment will lay emphasis on use of
IT system within the different function of an organization, IT system contributes to the
achievement of objectives in a specific organizational context, ways in which IT system can be
used to improve business operations, reliable IT system that can be used to respond to
organization’s requirements.
MAIN BODY
Overview:
Tesco is a multinational company which deals in retailing of the groceries and general
merchandise, the company was started in the year 1919 by Jack Cohen, the company has an
operating income of £2206 million in the year 2019. The company has diversified in a variety of
sectors including banking, mobile etc. the company growth has been seen good in the recent past
years and they have good prospects for the future.
P1 Analyse the use of IT system within the different function of an organization.
The IT system can be very useful in managing the different function of the Tesco. This is
explained below.
The different technologies boost Tesco’s performance, productivity and their day to today
operations. They help Tesco develop new ways to earn revenue as they help in the research and
development of the company. Tesco can-do long-term planning with the help of IT as there is all
the information available at a single platform, so with this they can plan what their customer
wants, where they can find the cheapest supplier so that they can minimize their cost and
increase their profits. IT allows companies like Tesco to be more accurate which help them in
making better decision making (Jaques, 2017). Tesco uses software like Enterprise Resource
Planning (ERP) systems so that they can manage their accounting and financing operations
which shows the company current profits, historical profits and the prediction of the company
for the future according to the inflation and interest rates, so that the company can decide
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whether to continue their operations or not. In the long term these ERP systems are very useful
as they reduce Tesco operational cost.
With the help of IT Tesco is able to expand their operation worldwide as they can use
online sites to sell their product. The company can market their product with the IT technologies
available. They can use social media sites like Facebook and Instagram to advertise their
product, they can also use other websites like YouTube to promote and market their product. The
company is thus able to maintain their competitive edge through these IT.
IT also helps in recruitment and hiring process as this helps in communicating vacancy for
a large number of people an all those who match the requirement can come and interview for the
position, this helps Tesco in having a large number of option available to them, so that they can
hire the best option available (Laudon and Laudon, 2016). This will help Tesco to select the right
employee for the right position which in turn help the employee to be motivated to work as they
like the work they are performing. This also help in increasing the retention rate by reducing the
staff turnover in the company.
IT also helps Tesco in finding out what their customer preference are and with this
information the company can give the customer exactly what they want (Argyris, 2017). The
company receives feedback about their product through their online websites and they come to
know about the customer complaints and their preferences and the company can customize their
products.
P2 Explain how IT system contributes to the achievement of objectives in a specific
organizational context.
IT systems plays a vital role in achievement of organizational objectives and helps the
organization in achievement specific goals and objectives in various manner. these Objectives
have help Tesco in achieving Operational Excellence. Tesco has achieved such growth in the
retail industry with the help IT systems managing their operations. Information technology helps
an organization in managing three main primary resources of an organization i.e. people,
information and technology which further helps in decision making (Safa and et.al., 2015). IT
systems can help an organization like Tesco to analyse each and every organizational activity of
their business it plays a vital role in achieve specific organizational objectives because it helps in
managing their human resources and makes decision making more effective. Proper and
effective use of management information system helps in planning for achievement of
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organizational objectives. It also helps in monitoring basic progress of the organization on the
basis of which organizational goals are managed, initiatives are taken so that smatter decision
can be taken.
It helps in storing and analysing all kinds of information that contributes in managing their
timescale and activities. There are various kinds of information technology systems that
contributes in achievement of specific objectives in many ways. CMS system helps the
organization to maintain data and information related to all the function of the organization and
users as well. These systems help in segregating types of users and on the basis of their types
permission to access the information is provided (Kim, 2015). This helps the organization in
managing their data and activities. MIS systems helps in analysing the way in which things are
being carried out and also helps in identifying need of training and development programs as
well. Inventory management system helps retail sector organizations like Tesco to manage their
inventory i.e. if there is shortage of any product then it is directly ordered from the suppliers and
this system also helps in managing overall sales of an organization.
With the help of this system organization can focus on achieving their target sales
objective. There are many BI information systems that can be used by organization to provide
service to their customers. Management information system is the suitable tool or platform for
managing data of business on daily basis. In this way, TESCO will use for arranging data in
proper format which help for increasing productivity and profitability in global marketplace.
P3 Analyse the different ways IT system store and process data for knowledge management,
customer relationship management, data management and communication management
system.
Information technology system is a type of communication which especially used within
organization for store and process data in proper manner. It mainly operates by group of users
which processes for designing to create, store, distribute and manipulate the information. Tesco
is mainly used the different types of information technology system which supports for
maintaining and collecting data or information in proper manner (Caetano, Silva and Sinogas,
2016). For Example- management information system, which are mainly used for databases that
stored large amount of data in proper format and also improve overall performance. It useful for
make important decision regarding business development. There are different types of IT system
supports for storing and processing data effectively.
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Customer relationship management:
It is based on the combination of strategies, practices and other type of technologies that
Tesco use for managing and analysing the relational between customer by using exchanging
data. Its primary goal is to improve the customer services where assists of client retention which
driving for increasing rate of sales in global marketplace. This type of CRM system is compiled
with the consumer data across various distribution channels, point of contract among client and
organizational management (Yeh, Lee and Pai, 2015). The CRM system will help for recording
details about client where Tesco easily access the information as per requirement. Increasingly,
customer relationship management is being used to refers as modern technology that engage with
potential customer to make external interaction. Indirectly, it is beneficial for TESCO in terms of
production and sales because various type of people attracts towards product and services.
Data management system:
A data management is a type of administrative process which may include validating,
protecting, storing and processing the various type of information. It also ensured the reliability
and accessibility of time for its multiple users. TESCO is making use database management
system because it is a type of software that easily collecting a large number of data set which
useful for organization in decision making (Johansson, Christiernin and Pejryd, 2016). It also
gained deep insights into opportunities, behaviour and trends. It allows for TESCO to leverage
big data from different sources and directly engaged with the clients. Database system is the
most appropriate tool that stored large volume of information gathered in it. It become easier for
manger to access data or information in proper manner.
Knowledge management system:
It is a type of tool that mainly used by TESCO for purpose to organise documentation and
frequently addressed questions and other type of information. It is the best way to accessible
format in both external and internal consumers. Knowledge management system supports overall
business process which providing an accurate finding or knowledge access from specific user
groups. In this way, TESCO must consider as an appropriate valuable tool that are just starting
and also distributed the knowledge to different audiences. Afterwards, it easily records data or
information after decision making within organization (Suyono, Sukoco and Rahim, 2017).
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Communication management system:
Currently, communication management system will be supporting the overall interaction
between client. It provides a flexibility within a single handled address for identify need and
requirement of customers. TESCO is mainly used electronic device for sending the message
from one place to another. This type of communication management system is implemented
within organization because it allows to build a strong coordination between employees. On the
other hand, it also uses the Voice mail and mailbox which provide facilities and services for
exchanging information data from one department to another (Suyono, Sukoco and Rahim,
2017). In this way, it can be understanding that communication management system plays
significant role within organization. There are various type of communication tool uses in the
business data exchange such as email, text messages, telephone, voicemail and many more. It
help for building coordination between employee and customer within organization.
P4 Evaluate that how IT system can be used to supports the value-added change for improving
business operations and performance, functionality.
Information technology systems are becoming increases greater opportunities for Tesco which
directly impact on the overall business performance and efficiency. In the current market
stetting, TESCO undertakes various types of operations which provide the better quality of
product and services to consumers (Suyono, Sukoco and Rahim, 2017). An operation is an
effective if it will create an output which are more reliable for added values. Tesco is mainly
focused on the competitive advantage to satisfy need and requirement of consumer by using
Information technology system. In organization, everything has to be connected with the
physical devices and IT system that shared data from one place to another (Jain, Kumar and
Dash, 2015). It also changing the consumer preferences while reshaping the business for
producing goods and services. In this way, it supports in terms of value-added change for
improve speed, performance, efficiency and overall functionality of organization.
 Through proper involvement of IT system within business process, it will increase the
productivity because it easily identifies need and requirement of consumer. On the other
hand, it also established the coordination with the employee which has rapidly increasing
performance of workers (Martinez-SimarroDevece and Llopis-Albert, 2015).
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 TESCO can communicate and transfer the essential resources which require for business
development. IT system will try to record data and also access economic information
around the world.
 Information technology system will add more value in the business activities which are
feasible to conduct enterprise and also make investment for logistics, transportation
improvement.
P5 Recommend practical IT solution for organizational scenarios that mainly covers wide range
of common business problem at workplace.
In context of IT solution, it has recommended to use management information system
because it mainly based on the concept that applicable within business operations and functions.
TESCO will use MIS system whether any type of issue or problem arise in organization. By
using MIS, TESCO is targeted, computerized and use machine system which providing the
required data to supports in decision making. It also considered the important element to handle
overall functionality in proper manner.
It will need for integrated with the many services that provided by TESCO and established
linked with software such as database. In this way, use machine has automatically responding on
particular interface and searching on file (Martinez-SimarroDevece and Llopis-Albert, 2015). So,
as it become necessary part for TESCO to use MIS system which easily stored and managed the
information of business even many experts of different level of business. it will increase new
concept which not only basis of knowledge but also make decision as per situation.
Apart from that there are some common problems arise in the organization that’s why, it
needs for improvement in business development.
 It can be overlapped the categories of information system which are not properly generate
accurate result or outcome in the form of graphical format.
 It will increase the mismanagement in day to day operational decision because don’t have
properly maintained data at one place.
These types of problem arise so that it has recommend as an IT solution which supports overall
enterprises activities through Management information system. it will perform the role where
manager is responsible person in decision making. It will take decision based on the prepared
report. Secondly, when decision making happens but only input data has changed. In this way, it
is the most suitable tool for providing entire information regarding the business activities. In
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TESCO, Manager use MIS system for understanding the problem and try to resolve issues.
Afterwards, it will find the solution of any problem within organization. As per analysis, it has
suggested that great choice of organization which easily fitting platform for good decision
making. Management information system lays overall foundation of TESCO in terms of business
establishment. It is concrete decision through platform which are adequately managing policies
and regulations.
CONCLUSION
In above discussion, it concluded that Information technology system is a type of process
that set up components which help the business for increasing the profitability. it mainly uses for
storing and processing data. It also supports organization which help for running business for
data management and analysis of the data, improving business operations, gain competitive
advantage over their competitors and increase their market share. It has summarized about the
use of IT system with various function of organization. It also understands that how IT system
contribution of business goals and objectives. There are different types of Information
technology system which applicable in business activities.
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REFERENCES
Books and Journals
Argyris, C., 2017. Integrating the Individual and the Organization. Routledge.
Caetano, A., Silva. A. and Sinogas, P., 2016, June. The Modify Project: Combined Business and
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Conferência da Associação Portuguesa de Sistemas de Informação (Vol. 1, No. 1).
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marketing strategies of political parties: analysis through AHP. International Journal of
Business Information Systems. 20(1). pp.71-94.
Jaques, E., 2017. Requisite organization: A total system for effective managerial organization
and managerial leadership for the 21st century. Routledge.
Johansson, A., Christiernin, L.G. and Pejryd, L., 2016. Manufacturing system design for business
value, a holistic design approach. Procedia CIRP. 50. pp.659-664.
Kim, Y.J., 2015. Convergence of Business Information System Process using Knowledge-based
Method. Journal of the Korea Convergence Society. 6(4). pp.65-71.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education
India.
Martinez-Simarro, D., Devece, C. and Llopis-Albert, C., 2015. How information systems
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of Business Research. 68(7). pp.1592-1594.
Safa, N.S., and et.al., 2015. Information security conscious care behaviour formation in
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in Developing of Regional Central Business (Case 50 Airports IT City Development in
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Publishing.
Yeh, C.H., Lee, G.G. and Pai, J.C., 2015. Using a technology-organization-environment
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