Business IT System Analysis and Recommendations: Tesco Plc

This report provides a comprehensive analysis of the IT systems employed by Tesco Plc, a major player in the global retail industry. It begins by introducing the company and its reliance on IT for efficient operations, highlighting the need to replace manual processes with advanced IT solutions. The report delves into the implications of IT systems in achieving organizational objectives, emphasizing the importance of data management and strategic decision-making. It identifies and explains several manual procedures within Tesco, such as financial transaction recording and customer self-checkout, proposing the implementation of ERP software and online billing systems to streamline these processes. Furthermore, the report explores knowledge management systems, including DSS, Groupware & KM 2.0, and document management systems, to enhance decision-making and collaboration. The report also discusses how these IT systems support customer relationship management (CRM) by improving communication and reducing customer burden. Techniques for effective data and communication management, such as DMS, MySQL Database, EMT, CCM software, and Tactical communication systems, are suggested. Finally, the report evaluates how these proposed IT systems can support value-added change, improve performance, and enhance Tesco's brand image, ultimately leading to increased sales and profitability in the competitive retail market.

BUSINESS IT SYSTEM

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Introduction of the company..................................................................................................1
P1............................................................................................................................................1
P2 Implication of IT system to achieve the organisational objectives...................................1
P3 Describing and explaining manual procedures which should transform..........................2
P4 Evaluating IT systems to support value added change.....................................................5
P5 Recommending practical solutions related to IT...............................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Information technology regarded as one of the essential and pivotal part for each and
every organisation. The reason is that, it helps to run or operate the business in smooth way and
decline time for completing some tasks in the workplace. The current project is based on Tesco
Plc which has worldwide presence in the retail industry. The study shows various manual
systems incorporated in the workplace which will be replaced with relevant IT systems. Apart
from this, proposed IT systems are evaluated in terms of operating smoothly, enhancing
performance ans sustaining in the market. Further, about the CRM system is discussed which is
supportive for managing customer relations up to the greater level. At the end of project,
practical IT solutions are suggested to the Tesco Plc.
Introduction of the company
For conducting the present research of IT systems, the Tesco Plc is taken into account
which is UK based public limited company. It was founded in the year 1919 by Jack Cohen and
as of now it is 98 years old enterprise. Further, it operates under the retail industry and has higher
level of market share worldwide as compared to other retailers across the globe. Key products
offered by Tesco up to its customers are supermarket, superstore and hypermarket. Under this,
food and bakery items, cloths, grocery products are provided by it in the world. Apart from this,
it contributes a better percentage of its profits in the growth rate of economy. Along with this, it
takes initiatives of corporate social responsibilities and provide financials to the charities and
local community organisations. The Tesco company faces higher level of competition in the
retail market where its major rivals are Morrison, Asda, Sainsbury and The Co-operative Food
(Company profile for Tesco, 2017). However, in terms of financial performance it unable to
perform well since last three to four years. The reason is that, it considers less marketing using
social media and other IT systems.
P1:The role of IT system
The companies today no longer make use of manual system that is register and pen in
order to store data .Tesco is making use of sophisticated and comprehensive databases due to
use of information system in the business. About the company this system contain all the
imaginable pieces of data. The information about the company is being stored, analysed and
updated by the information system. In order to form strategic plans and make decision for the
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organizational longevity and property an organization such as Tesco make use of information
system. In the company the information system aid business in developing a larger number of
value added systems. The unnecessary activities are being removed in the business due to use of
information system and it also simplifies business processes.
P2 Implication of IT system to achieve the organisational objectives
Tesco will be beneficial as if there will be implication of effective IT system in the
operations of the organisation. There is need to have the adequate management of accounting
and digital records of all the transactions. The transaction will be relevant with the inventory,
investments as well as cash flows of the organisation. However, with the help of such technical
advancement the business will be beneficial in terms of having the adequate operations as well as
having promptness in the daily tasks.
P3 Describing and explaining manual procedures which should transform
In the workplace of Tesco Plc, various manual processes are considered which consume
more time for completing the works. One of the major manual system used is related to the
recording of financial as well as non-financial transactions incurred in the workplace. When all
theses kinds of transactions recorded by an employee manually then takes huge time. Along with
this, it can be possible that some issues or loopholes will be remained under this. When all the
transactions are not made properly then affect to the procedures of preparing financial statements
in inverse manner. Therefore, the recording of financial transactions manually by employee
should be transferred with proper IT system or particular software. The system which should be
used instead of manually for this issue is Enterprise Resource Planning (ERP) software (Kilov
and Baclavski, 2013).
Apart from the recording of financial and non-financial transactions, in the Tesco Plc the
customers have to make bills own where any system is not undertaken. Regarding the
consumers, there is self check out system used by the Tesco retailer in which they check out by
their self. Due to this specific method, sometimes users carry extra luggage or materials which
are not added in the billing. This procedure must be replaced using online billing system where
the employee operate the software and make bill of the materials purchased. In addition to this, at
the exit door the company requires using IT system which track those goods which are not
counted at the time of making bills. Due to this, all the products will safe and amount of them
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will be taken by the Tesco Plc. Therefore, overall sales and revenue will become proper and
relations with customers will become effective.
Explaining various ways IT systems store as well as process data for managing knowledge
A system which refers to store as well as analyse knowledge, enhance collaboration, use
various sources for boost up business performance is known as knowledge management (KM)
system. On the basis of this, managers and senior authorities of the Tesco firm make highly
effectual decisions for the working environment. In the present days, each and every business
entity considers wide range of IT systems and one of among them is KM system. In the above
section suggestions for basically two types of the manual systems are given i.e. financial
transactions and self check out by users. Under the knowledge management those systems which
needs to consider Tesco Plc are described below: Decisions Support System (DSS): In the workplace wide range of complex situations
incurred for resolving it DSS system is taken into account (KM Systems, 2017). For the
present case scenario of Tesco Plc, when the CEOs have to make strategic decisions then
they should employ this mentioned system. The reason is that, it is one of the supportive
tool for taking complex decisions in international businesses such as Teco Plc. Groupware System & KM 2.0: Another KM system which will help to the Tesco retailer
for adopting effective kind of communication method is groupware & KM 2.0. On the
basis of this, highly supportive conferencing as well as collaborative management
methods are to be undertaken in the working environment. Moreover, to manage the
knowledge system the firm must use this tool.
 Document Management Systems: An IT system which helps to manage all the
recordings as well as documents in proper manner is considered as document
management system. The reason behind recommending this tool to Tesco is that, it will
support to track all the records in proper way. Its key functions include capturing,
segregation of metadata, indexing, searching, versioning, retrieval, security and
administration of all the documents (Document Management Systems, 2017).
Describing ways through which proposed IT system will support in customer relationships
management (CRM)
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A term which refers to the relations with the customers by providing better services and
using practices is known as CRM. To the Tesco Plc different systems are recommended which
will be supportive to manage effective relations with its various consumers. The Enterprise
Resource Planning software will lead to frame financial statements in proper way. Due to this,
the people able to go through such statements in adequate manner and ultimately they can make
better decisions towards the company. If such accounts are easily understandable then cannot
analyse then which affect CRM in adverse direction (Frank and et.al., 2014).
When considering to IT system of self check out and online billing then it will reduce
burden of the customers up to the greater level. Further, their time for make the bill, payment and
check out by self will decline in the Tesco enterprise. The proposed system will be highly
supportive for managing time and reducing unproductive burden and ultimately CRM will
improve.
Those systems which are suggested under the KM lead to enhance communication with
the people properly. Further, DSS leads to make better decisions towards the customers also
which create positive impact on the CRM system. Through Groupware & KM 2.0 system, the
cited firm can communicate with users properly and assess their issues towards it. Therefore, can
resolve their problems along with completing wants and needs properly. Moreover, the customer
relationship will be enhanced and managed which help to boost up performance in retail industry
(Nofal and Yusof, 2013).
Suggesting techniques for data and communication management:
In the workplace communication must be clear and proper among subordinates and
customers both. Apart from this, data should be also recorded properly along with managing in
an effectual manner. In order to manage the business information, there are wide range of
systems as well as software available. For this part, Tesco Plc should use Data Management
software (DMS) and MySQL Database. On the basis of these, the firm able to track the data
which needed in proper way. Through these suggested IT systems the organisation will be able to
record data with password (Rachele, 2017). Moreover, arrangement of available information is
also done in proper structure with the help of MySQL as well as DMS.
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Apart from managing data, communication is also one of the effectual part which help to
make things and clear. When the manager of Tesco Plc is going to communicate with its
employees or consumers then he or she must go through some specific software as well as IT
systems. Further, such softwares are like Electronic mail transmission (EMT), CCM software as
well as Tactical communication system. On the basis of customer communication management,
the firm able to make better conversation with existing or potential users (Different Types of
Communication Systems, 2017). The Tactical system is supportive for making conversation with
employees or middle level of the managers in the company. However, the EMT is useful for
communicating with both the stakeholders of Tesco Plc which are employees or managers and
customers properly.
P4 Evaluating IT systems to support value added change
In the workplace, when management considers IT systems to operate rather than using
manual ways then able to manage the firm, boost up performance as well as sustain in the
industry for long term. In Tesco Plc, if it uses suggested IT systems then can operate smoothly as
well as manage the customers properly. With the help of ERP software accountant able to record
all incomes and outflows properly which reflect financial position in adequate direction. On the
basis of this, performance can be tracked and then effective strategies will be framed. By
employing some tactics it able to enhance performance and then provide higher quality of retail
products at the low prices comparatively (Willcocks, 2013). Other than these, using DSS, DMS
and Groupware & KM 2.0 systems, Tesco Plc easily able to manage and enhance knowledge in
the company. Further, it will become more capable for delivering high practices with proper way
which is valued added for Tesco. By using DMS, MySQL, CCM, EMT and Tactical IT systems,
the cited firm can easily manage its information and data along with communication aspect.
Using the above systems related to IT, Tesco can improve its brand image and attract
huge customers. Therefore, easily able to generate huge sales and profit which is indication of
increasing business performance in the retail industry worldwide. As its profitability and
liquidity position in the market enhance consistently then become more capable for attracting
customers and shareholders both (Antonov, 2013). Therefore, performance will enhance which is
sign of sustaining in the retail market up to the long period.
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P5 Recommending practical solutions related to IT
There are different systems of IT are advised to Tesco Plc which will help to make wide
of solution of common business problems. For issue of financial recording, Enterprise Resource
Planning software is recommended which helps to make financial statements properly. The
Morrisons and Asda retailers using this software due to which they easily able to track all the
financial information. Therefore, their financial performance is continuously improving in the
industry as compared to Tesco enterprise. When looking at the business problem of self billing
and check out then use of IT systems at exit door and online billing software is advised to the
firm. The another mentioned retailers using this systems by which time of both customers and
company is saved up to better level.
In terms of enhancing knowledge management, there are three systems suggested to
Tesco which are like DSS, Groupware & KM 2.0 as well as DMS. For making solution of the
communication problems, CCM. EMT and Tactical communication systems are recommended
which will help to make effective conversation with workers as well as consumers.
CONCLUSION
It can be articulated from the present project that, IT system has one of the pivotal role in
each organisation for operating and managing whole business smoothly. Tesco Plc which
operates in retail industry considers some manual systems like self check out, financial
transactions recording etc. These systems should be replaced with IT systems like Enterprise
Resource Planning (ERP) software and online billing. For knowledge management, Groupware
& KM 2.0, DSS and DMS systems Tesco Plc should consider. Apart from this, for data and
communication management it should use DMS, MySQL; CCM, EMT and Tactical IT systems
respectively. These all the systems will support to Tesco for changing value added like operation,
performance, sustainability etc.
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REFERENCES
Journals and Books
Antonov, A., 2013. New business-oriented global/regional information network. International
Journal of Business Information Systems. 12(3). pp. 321-334.
Frank, U. and et.al., 2014. The research field “modeling business information systems”. Business
& Information Systems Engineering. 6(1). pp. 39-43.
Kilov, H. and Baclavski, K. eds., 2013. Practical foundations of business system specifications.
Springer Science & Business Media.
Nofal, M. I. and Yusof, Z. M., 2013. Integration of business intelligence and enterprise resource
planning within organizations. Procedia Technology. 11. pp. 658-665.
Willcocks, L., 2013. Information management: the evaluation of information systems
investments. Springer.
Online
Company profile for Tesco. 2017. [Online]. Available through:
<https://www.theguardian.com/sustainable-business/profile-tesco> [Accessed on 26th
October 2017].
Different Types of Communication Systems. 2017. [Online]. Available through:
<https://managementstudyguide.com/satellite-communication-system.htm> [Accessed on
26th October 2017].
Document Management Systems. 2017. [Online]. Available through: <http://www.knowledge-
management-tools.net/document-management-systems.html> [Accessed on 26th October
2017].
KM Systems. 2017. [Online]. Available through: <http://www.knowledge-management-
tools.net/knowledge-management-systems.html> [Accessed on 26th October 2017].
Rachele, W., 2017. Examples of Database Management Software. [Online]. Available
through: <https://www.techwalla.com/articles/examples-of-database-management-
software> [Accessed on 26th October 2017].
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