Business IT Systems: Value, Operations, and Performance Report

This report, prepared for a BTEC Higher National Diploma in Business, analyzes the application and impact of Information Technology (IT) systems within a business context, using British Home Plc as a case study. The report explores the use of IT across various business functions such as finance, marketing, and HR, highlighting their contributions to operational efficiency and achieving business objectives. It examines different methods of storing and processing data for knowledge, customer relationship, data, and communication management. Furthermore, it evaluates the role of IT systems in supporting value-added changes to improve business operations, performance, and sustainability, offering recommendations for addressing common workplace IT problems. The report emphasizes the importance of IT in enhancing productivity, customer satisfaction, and overall business growth.

Higher Nationals
Assignment Decision Feedback sheet– BTEC (RQF)
Higher National Diploma in Business
Kensington College of Business Centre Code:
10149
Programme Title BTEC Pearson L5 in Business HND
Student Name Cristian Arnautu
Student KCB ID
Number
18047
Unit Number and Title Unit 33 Business IT Systems
Unit Code: M/508/0575
Academic Year 2018/2019
Unit Assessor Geof Branch
Targeted Learning
outcomes
LO1, LO2, LO3 and LO4
Issue Date 20/06/2019
Submission Deadline 20/09/2019
Date submitted: 24/09/2019
Group/ Semester. Friday day
Referred Pass Merit Distinction
Unit Final Grade
Learning Outcomes Feedback Grades
awarded
LO 1
LO 2
LO 3

LO 4
Guidance for improvement / Action Plan / General comments
Date assignment marked:__________________________

Value of Effective IT
Systems-British Home
Plc

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
Use of IT systems within different functions of business............................................................1
TASK 2............................................................................................................................................4
Different ways of storing IT systems & process data for knowledge, customer relationship,
data and communication management.........................................................................................4
TASK 3............................................................................................................................................5
Evaluate IT system that used to support value added change to improve business operations,
performance and sustainability....................................................................................................5
TASK 4............................................................................................................................................7
Recommended IT practices for business to cover range of common problems in the workplace
......................................................................................................................................................7
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business information system is design to resolve business problems through making
managerial decisions (Beuren, Ferreira and Miguel, 2013). This system includes organizational
data, resources of IT infrastructure which satisfy the need of entities associated with the
business. IT system provide flexibility which helps the organization to adopt changes in effective
manner. Business information system need to be proactive which anticipate changes as per the
requirement of users. For the better understanding of this concept, this report select British Home
Plc which is medium size group of companies. It was founded by Colonel Williams in 1950 and
they targeted premium class customers.
This report include the various topics such as understanding of different role of IT system
which support to achieve business objectives. In addition. This report include reliable & flexible
IT systems which respond as per the requirement. Along with this, evaluate value added system
and some recommendation for the organization to resolve common business problems.
MAIN BODY
TASK 1
Use of IT systems within different functions of business
IT systems: It is an organizational system that used to collect information, process and
stores in well manner that further utilized for managerial decision making process. Information
technology system means the collection of hardware, software, data communication, internet
related things, technical equipments which are used for communication. Basically IT system help
the business to manage information or their subsidiaries (Cassidy, 2016).
In context of British Home Plc, they have separate IT department which focusing only on
their functional area but still does not centralised their data for all the group of business.
Company still does not have centralised IT department which helps the internal members to
access information at any time.
Use of IT systems for different functions of the business:
Information technology used in organization for the effective functioning which helps the
business to increase departmental efficiency as well as effectiveness. Most of the corporations as
well as government use information system to handle large size of data, collect, store, maintain
and then monitor it for analysis. Information technology and use of internet will change working
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method of business operations along with this, HR to marketing and financial departments use IT
systems for overall growth. There are different functions which perform in an organization and
IT systems helps in improving their performance & outcomes. It explained below:
Financial function: Information technology change the way of working which is very
beneficial for the organization. Because every finance manager have sound knowledge of
technology and IT skills. Record all business transaction manually will take longer time which is
costly as well. It will also generate errors at the time of recording so by using technology
manager adopt various accounting software to record their accounts such as general ledger, cash
management, budgeting planning, financial reporting etc.
As per current scenario, British Plc does not have centralized IT system. They have
separate IT department for each subsidiary which increase the efforts of managers to identify
actual business position. With the help of centralise technology, manager can be able to
communicate and collect information at single place and in effective way. So management have
to show their concern regarding centralization of data which reduce individual departments
burden and efforts to collecting or monitoring information (Hilton and Platt, 2013). Use of
technology will help the staff members to record their large amount of data without any error or
mistake. It will provide efficiency as well as accuracy in the final outcomes.
Marketing function: Information technology helps the organization to increase its reach
to customers by using various techniques, computer networks which provide various benefits
(Womack and Jones, 2015). Technology play major role in the marketing function which helps
the British Home Plc to generate demand which automatically increase productivity as well as
profitability. Use of technology provide different types of promotional strategy such as online
marketing, content marketing, marketing mix and other strategies which helps in creating
product awareness among the customers. With the help of IT systems, organization can be able
to increase productivity as well as profitability which further helps in achieving business goals &
objectives. Content marketing is very important because it generate opportunities to engage with
customers by using experts experience & knowledge. Along with this, it increase search engine
optimization (SEO) and brand awareness. Organization use online media to promote their
products & services which increase demand and then productivity. It further helps in achieving
business goals & objectives.
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HR function: In the organization, use of information technology will increase efficiency
as well as effectiveness. Change in technology will provide transformation of HRM practices
where organizations use to collect data, share information and represent in understood manner.
By using effective HR practices, will maximise benefits and reduce problems. In context of
British Homes Plc, company use technology to recruit new talent by using internet and other
mode of hiring employees. Before that, organizations use to contact candidates through phone or
letter (Kane, Kerr and Pianta, 2014). This process save time as well as efforts of internal
employee because traditional method of hiring new candidate is time taken process. So, manager
of British Home Plc get all the benefits by using IT systems. Now organization use social median
sites to post vacancy and most if the process will be completed online through video call. It will
save organization time and efforts.
Above mention functions help the business to increase organizational productivity or
profitability by using information technology system. It helps the business to achieve their goals
& objectives with minimum efforts or time.
Contribution of IT system to achieve business objectives in context of the organization:
Information technology system provide various benefits to the organization which
contribute for the development and market growth. It also helps the business to achieve its goals
& objectives. In context of British Homes Plc, assistant of IT experts team discuss the
contribution of IT systems and it is discussed below:
Customers: In the modern business environment email is the basic method of
communication between suppliers, employees and customers. By using technology, internal
parties can share information with external users which increase working efficiency as well as
effectiveness. By using IT system, organization is able to achieve business objectives through
satisfy their customer and identify their view with the help of feedback process.
Inventory management system: This system help the business to manage their
inventory level which meet the demand of production. Also try to order quantity according to the
requirement. This is also a part of IT system which reduce the efforts of individual to manage
stock. Because over or under level of stock will impact the business and its profitability margin.
By using this system in the British Home Plc will help the organization to achieve their
objectives.
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Data management system: Before DMS, organizations are used to maintain large record
in the file and these files will be stored in the room. But today's organization store all the
information & data in digital form to reduce the space. Along with this, electronic data can be
available anytime for everyone in the office location. It will enhance working experience &
reduce employees efforts to physically maintain data. This system increase efficiency as well as
effectiveness that helps in achieving business goals & objectives (Vickers, 2013).
TASK 2
Different ways of storing IT systems & process data for knowledge, customer relationship, data
and communication management
Information technology system helps the organization to centralized their data to develop
management plan which facilitated the delivery of IT services. It allow individuals to respond as
per the requirement of business. IT system helps in maintaining day to day operations and linked
with cloud services (Kuijken, Gemser and Wijnberg, 2017). Data can be stored in different ways
which helps in improving knowledge, customer relation, communication etc. Type of storing IT
systems & process will discussed below:
Knowledge management: It is the systematic process of managing organizational
knowledge regarding assets which help the business to create value, meeting tactical and
strategic requirement. Business required data storage and processing system which further helps
in maintaining records for the managerial decisions. Transactional process system (TPS) use to
monitor knowledge management because it is used to record daily transaction of business. Main
objectives of this system is to find the answer of specific questions which arrived in front of
manager in the operational level.
Customer relationship management: This system used to manage customer relation
with existing or potential customers. To improve business relation with customers organization
have to adopt CRM system which develop effective relation, connected with them which
increase customer satisfaction level, productivity or profitability. This system majorly focus on
corporate relation with their users which include various people such as customer, colleagues,
suppliers etc. Along with this, Online analytical processing system used for customer query and
then analyse for further actions.
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Data management: It is the main activity done by the IT system where day to day
transactions will record for the purpose of analysis. It is the administrative process which include
acquiring, validation, storming, protecting and processing information and ensure the reliability
of information for its users. Data management system used to store information which helps the
organization to take managerial decision to achieve business goals & objectives (Neches and
Madni, 2013). This system helps in storing huge data which provide historical analysis as well.
Communication management: It is a systematic approach which include planning,
execution, monitoring and analysing all the way of communication among the organization. IT
system helps in maintaining internal records and provide various benefits at the time of decision
making process. Basically communication enhance workplace effectiveness as well as reduce
confusion. Management information system used to monitor organizational performance and it
will be done through effective communication.
Above mention storing system help the organization to increase their internal process as
well as operational activities. Organizational data will be used for the various purpose where
manager have to manage every things. IT systems helps in enhancing knowledge,
communication, data and customer relationship management. It increase organizational
efficiency as well as effectiveness which automatically increase productivity or profit margin.
Along with this, it further helps the manager to achieve their business goals & objectives.
TASK 3
Evaluate IT system that used to support value added change to improve business operations,
performance and sustainability
Information system helps the business to add value in the improvement of organization as
well as employees performance which enhance operational activities and provide sustainability.
Along with this, information system helps the individual that how to use data, reduce work
pressure and implement various regulations in order to achieve business goals & objectives.
There are various IT systems which is used to support for adding value and improve business
performance and sustainability. It explained below:
Transactional Processing system (TPS): This information management system used to
record daily business transaction which helps the manager to maintain their accounts. It is
basically used in operational level where all the initial transactions happen. Main objective of
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this IT system is to solve the query of their internal members regarding production. In context of
British Home Plc, manager have to identify answer of few questions which provide them clear
idea regarding their work (Neogy, 2014). Such as total outstanding amount, revenue from
operations etc. Manager of the company can get the knowledge through recording day to day
transaction and then analysing. TPS include various functions such as point of sale system,
payroll system, stock control and airline booking system. This system add the value for the
business along with this it increase organizational performance which further helps in providing
sustainability.
` Management Information System (MIS): It is used to monitor current performance of
the organization where TPC outcomes used as a input for the MIS. In this information system,
manager of British Home Plc used to monitor, control and predicted future performance with the
help of past experience and performance of the organization. For example: point of sale system
used to identify product trend in the current market. It further used to measure future demand
regarding product and the requirement of inventory for the production. MIS include other
systems too which helps the organization for the prediction such as sales management system,
budgeting system and human resource management system. It is manager's responsibly to collect
information and evaluate end results. So MIS helps in monitoring all the activities and take
necessary actions for the future events.
Decision Support System (DSS): A decision support system can be based on the
computerized program that is utilised by British home place in order to determinations,
judgement and conduct courses of action. A DSS sifts determine large amount of data, compiling
comprehensive information that can be utilised to sort out the problems and in decision making.
As a result improving business operations, performance and sustainability. The particular
program utilised for the typical information where consist of targets or projected income, sales
figures and past ones from several time periods and focus on any other stock or operations
related data.
This system utilised by British home plc to present their information in the graphical way
and may consist of expert system or artificial intelligence. It is considering as aim of the business
administrator or some other group of knowledge workers. It is different from other systems that
become reason of improve operations whose function to gather data. The system help in decision
making, improved efficiency and dealing with different issues.
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Online Analytical Processing (OLAP): It is defined as computing method that enables
user to daily and by selection extract and query data in respect to determine from various point of
view Through this system British home Plc sort out different types of queries and analysis of
trends, financial reporting, predict sales, budgeting and other planning purposes. This system
work in efficient manner in order to improve operation, performance and sustainability top
collect data from multiple sources than store in a particular place then cleaned and formulated
into data cubes (Ni and Jin, 2012). Every OLAP cube carry data in different class such as sale
region, customers and period of time. There are analysis of different types of OLAP that are -
 Roll up
 Drill down
 Slice
 Dice
 Pivot
Above mention IT system used by the manager of British Home Plc in order to added
value in the business. Along with this, it help in improving business performance and provide
sustainability which is important for any business to survive in the market. There are few more
technology which helps in improving organizational efficiency of British Homes Plc and it is
discussed below:
 Internet of things: Internet of things can be described as an ecosystem or computing
concept which connected the physical objects. These objects may be a person, thing,
device, machine, etc. that can identify itself with a Unique Identifier (UIDs). These
objects are able to communicate or transfer data over a specific network. This system
connects various devices embedded to the internet which helps in providing more data
and improving the security system of the British Homes Plc. Internet of things system can
reduce the cost by improving process efficiency, productivity and assets utilization. It
helps the objects to identify and understand the surroundings.
 Big data: Bid data is a set of large variety data that is too large to be dealt with usual data
processing software or traditional method of data resourcing. Sometimes the provided
data may be huge in terms of variety, velocity, complexity or volume that make it
difficult for the normal application software to process it find out the useful information.
In case of big data, results may be irrelevant, false or misleading. Today most of the
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industries such as education, banking, retail, manufacturing, health care, etc. are using big
data platforms to collect relevant information for their business.
 Cloud Computing: Cloud computing can be defined as a process of using remote
network resources to collect, process, manage and store the data rather using local
networks or servers. Cloud computing term is rapidly increasing now a days. A cloud
network typically provide its services in terms of time or storage space. A cloud network
can be a public or private service. Public cloud sells its service to anyone whereas private
cloud provides its services to limited or specific customers.
 5G Network: Fifth generation network which is usually known as 5G are digital cellular
networks. 5G networks are the next generation internet connectivity technology which is
providing more reliability and faster speed than ever before. 5G NR (new radio) speed is
slightly higher than 4G networks and its “air latency” target is 8-12 milliseconds. This
new network technology will provide ultra-low latency, huge capacity and more uniform
user experience.
Above mention latest technology help the manager of British Homes Plc in order to
increase their organizational efficiency as well as effectiveness. It further helps in generating
revenue and achieve business goals & objectives.
TASK 4
Recommended IT practices for business to cover range of common problems in the workplace
IT Systems provide a variety of solutions which can help an organisation overcome both daily as
well as occasional problems that are a common place in the business world. In the context of
British Home Plc, the following recommendations are provided on a variety of business
problems arising under different organisational scenarios:
Scenario 1: Lack of innovation and appeal due to incorporation of obsolete IT Systems has
resulted in delayed task completion which has eventually led to the British Home Plc to incur
additional costs on production.
Recommendation: In order to resolve such an issue by implementing latest IT Systems
such as Enterprise Resource Planning (ERP) so as to enable the business enterprise such as
British Home Plc to increase their overall levels of productivity, develop stronger efficiency,
inculcate economies of scale (Porter and Kramer, 2019). This would help British Home plc to
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not only have faster task completion and process optimisation but also provide a stronger
competitive edge among its competitors.
Scenario 2: British Home has been unable to identify current market trends as it still relies upon
the conduction of extensive field work in order to collect data from its targeted customer base for
the purpose of researching and analysing the opinions of consumers from the recorded responses.
This activity is conducted once in five years.
Recommendation: In the context of British Home plc, adoption and implementation of
suitable Knowledge Management Systems would help the company workforce to create, store,
share as well as utilise the knowledge and information of British Home Plc. Utilising this in
combination with a well-placed and managed Customer Relationship Management System
would help the company to regularly update its marketing strategies so as to remain competitive
in the market. Additionally, it would also help British Home Plc to demarcate between fads and
trends on a continual basis (Stair and Reynolds, 2013). Thus, enabling them to fulfil customer
needs in a better way as well as develop customer value sustainably.
Scenario 3: British Home Plc has been facing increased administration costs during its
production process for all of its product lines. As a result, the company has started to experience
inadequate working capital within the company.
Recommendation: Managing costs is an essential business function of any organisation
including British Home as it can significantly affect the overall costs of productions which can
lead to the rise in cost of sales for a given product line. Thus, it is important for the company to
control such costs effectively before they result in loss for the business. This can be achieved by
British Home Plc by the automation of financial processes using a comprehensive price
optimisation system. As a result, streamlining of various financial services as well as their
forecasting under various alternate scenarios will be achieved by British Home which can help
the managers to control administration costs to a greater extent (Strang, Chein and Steinberg,
2013).
Looking at these recommendations, it can be said that implementation of suitable IT
Systems can help in resolving various functional problems that arise within a business ecosystem
on a regular basis.
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CONCLUSION
From the above above discussion, it has been concluded that information technology
plays very important role where business has to adopt technical changes according to the time. In
the modern organization, handling large volume data is the biggest issues which generate
problem in the future. IT system help the organization to adopt latest technology such as
accounting software to record transaction. Along with this, this system used for product marking
which generate demand and increase productivity as well as profitability. Basically infirmation
system help the organization to resolve their common problems which become barriers to
increase their employees as well as organizational performance. IT system improve business
performance and provide sustainability for the longer time.
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REFERENCES
Books & Journals
Beuren, F. H., Ferreira, M. G. G. and Miguel, P. A. C., 2013. Product-service systems: a
literature review on integrated products and services. Journal of cleaner production. 47.
pp.222-231.
Cassidy, A., 2016. A practical guide to information systems strategic planning. Auerbach
Publications.
Hilton, R. W. and Platt, D. E., 2013. Managerial accounting: creating value in a dynamic
business environment. McGraw-Hill Education.
Kane, T., Kerr, K. and Pianta, R., 2014. Designing teacher evaluation systems: New guidance
from the measures of effective teaching project. John Wiley & Sons.
Kuijken, B., Gemser, G. and Wijnberg, N. M., 2017. Effective product-service systems: A value-
based framework. Industrial Marketing Management. 60. pp.33-41.
Neches, R. and Madni, A. M., 2013. Towards affordably adaptable and effective
systems. Systems Engineering. 16(2). pp.224-234.
Neogy, D., 2014. Evaluation of efficiency of accounting information systems: A study on mobile
telecommunication companies in Bangladesh. Global Disclosure of Economics and
Business. 3(1).
Ni, J. and Jin, X., 2012. Decision support systems for effective maintenance operations. CIRP
annals. 61(1). pp.411-414.
Porter, M. E. and Kramer, M. R., 2019. Creating shared value. In Managing sustainable
business (pp. 323-346). Springer, Dordrecht.
Stair, R. and Reynolds, G., 2013. Principles of information systems. Cengage Learning.
Strang, N. M., Chein, J. M. and Steinberg, L., 2013. The value of the dual systems model of
adolescent risk-taking. Frontiers in human neuroscience. 7. p.223.
Vickers, G., 2013. Value systems and social process. Routledge.
Womack, J. P. and Jones, D. T., 2015. Lean solutions: how companies and customers can create
value and wealth together. Simon and Schuster.
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