The Value of Effective IT Systems: Business Functions and Operations

This report delves into the value of effective IT systems within a business context, examining their application across various organizational functions. It begins by defining IT systems and their importance, using JS Supermarket as a case study, and then explores how IT systems contribute to achieving organizational objectives through management information systems, customer relationship management, and knowledge management systems. The report further investigates how IT can support value-added change to improve business operations, covering aspects like organizational productivity, performance sustainability, marketing, and customer satisfaction. It also discusses different methods for storing and processing data for knowledge and communication management. Finally, the report provides IT system solutions to address business-related issues, particularly in the banking industry, focusing on security challenges and suggesting solutions for data protection and cloud storage.

The Value of Effective IT
Systems

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Use of IT system with different organisation function.........................................................1
1.2 Explain how IT systems contribute to the achievement of objectives in a specific
organisational context.................................................................................................................2
TASK 2............................................................................................................................................3
1.2 How IT can be used to support value- added change for improving business operations....3
TASK 3............................................................................................................................................4
1.3 Different ways IT system stores and processes data for knowledge and communication
management................................................................................................................................4
TASK 4............................................................................................................................................6
IT systems solution for organisational scenario to cover the business related issues.................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9
.........................................................................................................................................................9

INTRODUCTION
Information technologies plays an very integral part in every sector of businesses. It is a
combination of hardware and software services use by business organisation in different ways.
Company can implement different measures like inventory management , data management and
consumer relation management to perform effectively. In this report, elements that are cover is
different use of IT system with various organisation function. Different ways of IT system stores
and process data for knowledge, data and communication management(Appadurai, 2012). In
what ways IT can be use to support value-added change in organisation. And IT issues and their
solutions.
TASK 1
1.1 Use of IT system with different organisation function
IT system means a formal structure of all material computer system, network equipments,
servers or any other computer hardware which is owned by a company. IT system plays an very
crucial and integral part in every business plan and organisation functions. They helps them to
main a competitive position over rivals, it helps in building proper communication system and
enhance efficiency for their work. Which increase their productivity and maintain a systematic
work flow system in their workplace. Their are different types of IT system that can be use by JS
supermarket to increase their production and enhance their business efficiency.
Management information system: This system is basically use for decision making,
coordinating, controlling , analysing and visualisation of information in a company(Bentley,
2012). JS supermarket can implement this system in their organisation to organise and
programme their financial information.
Customer Relationship Management: This system obtain every consumer interaction a
company is having with them. For example if a consumer call in a centre regarding any issue,
then consumer support representative is able to see item which is purchased by consumer, view
all necessary details like shipping and then provide an effective response to that issue. With the
help of customer relation management whole interaction of that consumer and customer
representative is stored. This system must prove very beneficial to JS supermarket to have more
focused and better customer experience and improve their productivity.
1

Knowledge management system: This IT system is use to store and recover
knowledges, improve collaboration, share perspectives and ideas. JS supermarket can implement
this technique in their organisation to locate and use source of knowledge which will help them
to find source of knowledge at right place and in right time. Which improve their efficiency and
reduce time that is need to rediscover source of knowledge again and automatically saves their
time.
1.2 Explain how IT systems contribute to the achievement of objectives in a specific
organisational context
IT systems plays an crucial role in achieving organisational objectives as it helps them in
data analysis, decision making and in keeping records. In this context, it will helps the chosen
organisation JS Supermarket in boosting their company's performance and in increasing their
productivity(Chen, 2014). There are different types of IT system which are necessary to achieve
organisational objectives:
(a) Management information systems
This IT systems helps an organisation in tracking their sales data, expenses and
productivity levels. It will helps JS Supermarket in monitoring their profitability over time and
also to identify areas which required improvement. It will also helps managers of JS
Supermarket in boosting their employees productivity and in reducing cost of an particular item
by tracking sales records. This IT systems will makes an organisation effective and efficient in a
business market.
(b) Customer relationship management
This system helps an organisation in capturing their customers interactions which leads in
enhancing customer experiences. It will helps the chosen organisation JS Supermarket in
achieving their customer satisfaction by keeping a proper record of customers purchased items
and shipping information. It also helps an organisation in increasing their productivity.
(c) Knowledge management system
The main purpose of this IT system is to share ideas, perspectives and information to the
right person to achieve a competitive advantages. It helps JS Supermarket in generating
continuous learning environment among its workforce.
2

TASK 2
1.2 How IT can be used to support value- added change for improving business operations
Information technology plays an very innovative role and brings an value-added change
in every aspect of business. JS supermarket can use these information system to attain its various
short term and long term goals. With the use of various IT measures company can improve their
performance level and increase sustainability. There are some major points mentioned below in
which IT can be very beneficial:
IT system and Organisational productivity: Business organisation can use different
types of information system to maintain their daily process and requirements. IT could be very
beneficial in all segments of business to store and retain their data and evaluate them for future
purpose. JS supermarket can use effective transaction system to make their organisation
productive. Company can do their daily work routine for example, cash transactions, payroll and
sales transactions. Decision system can also be enhanced with IT system. IT system also helps in
increasing employees productivity for example by introducing video conferencing company can
enhance their overall production.
IT system and performance sustainability: IT system ensure speedy and effective
performance of work. It will help an business organisations for improve their operations along
with performance & suitability. JS supermarket can use different IT services method to make
their work effective and improve their work quality. They can use these system in their financial
sector and in online product selling.
IT system and Marketing: In this company can able to sell and advertise about their
products and services in different internet websites. As marketing environment put direct impact
on function and working of a company. With the help of this method JS supermarket distribute
their products in a very wide range of circle. And also maintain internal and external records. It
will help them to develop and track marketing plans, use different locations to sell their products,
and manage data as per their marketing requirements.
IT system and Customer delight: IT helps organisation to connect with their customers
directly. In this regard JS supermarket make sure that they take regular feedbacks from their
customers in order to create loyal consumer base which will help them to achieve success for
long run. IT system provide various facilities like analytics capability and data warehousing to
3

organise and collect feedback from customer and develop their product according to it(Costanza,
2014).
In current competitive environment where there is continuous need for innovation IT
system plays an important role is changing and increasing business operations. As it it clear that
business environment are of complex nature, hence with the help of different IT services JS
supermarket can ensure their growth for of long term. They can adopt various services to attract
consumer attention and make them to buy products. They can use operations support system to
store data, reports and organise their businesses transactions, control excess wastage production
and gain there customer loyalty.
TASK 3
1.3 Different ways IT system stores and processes data for knowledge and communication
management.
Information technology is a concept which enables users to capture, store, share and
utilize knowledge data and experience of an organisation with its clients and staff members. Data
is a very broad term which consists of basic facts, figures and values. Information is an organised
collection of facts that provides context of data and helps in further decision making. Knowledge
whereas refers to awareness and understanding of information and evaluate ways in which such
information can be used effectively(Nasca,2012). Various aspects of information sector is
explained below:
Knowledge management- It is a management process which refers to any kind of an IT
system that helps in timely storing and retrieval of information, improving collaboration between
firms, locating various sources providing key information(Covey, 2014). Also it helps in mining
repositories for hidden or secretive knowledge which is not available in open market. Various
categories of knowledge management systems are:
1. Groupware system
2. Intranet and extranet
3. Decision support system
4. Content management system
4

 Knowledge management helps in timely management of information (storing and
extraction).
 It helps users to improve contacts and relations with other firms by effective
collaboration process.
Data management: It is a process which deals with efficient management of data and
information by creation of a system software known as database management software. It helps
users and clients to systematically extract or retrieve information. Database system is a software
that works on defining, manipulating , retrieving and managing data. It also helps in forming
rules that help in validation and manipulation of data and information. It reduces cost of framing
new programmes that were earlier used for data maintenance. Various examples of DBMS
include MySQL, SQL Server,Oracle,dBase and FoxPro.
Features of data management include :
 Receiving instructions from database administrator.
 Instructing system to make necessary changes regarding loading retrieving and modifying
data as and when required.
 It provides proper independence regarding data analysis. It helps in reducing complexity of data and also saves time.
Communication management- It is a very important process in today's corporate world
which is helpful in transmitting data and information from one level of an organisation to
another. It has gradually become a differentiating factor between managers and leaders involving
engagement of various stakeholders. Communication may at times even make or break a deal if
some details are misunderstood or miscommunicated. Various features of communications
management include :
 Developing efficient communication strategies that help in building firm's brand image at
corporate level.
 Designing proper internal and external communication channels for flow of channels.
 Managing flow of information at all levels in a set pattern and flow.
 Nowadays almost all firms practice both online and offline communication practices as
technology has improved and businesses have expanded globally.
It helps to build trust and confidence among employees thereby resulting in smooth functioning
of employees. Above mentioned ways help IT department of JS Supermarket to store and
5

process data for knowledge management data management and communication management and
how all three are interlinked or connected to each other.
TASK 4
IT systems solution for organisational scenario to cover the business related issues
IT issues are increasing rapidly in both small and large companies but small companies
are at greater risks because most of them doesn't have a security policy. In this context, there will
be a solution for all IT related issues arises in banking, education and retail industries.
(a) Banking industry
There is rapid increase in use of informational technology in banking industry as it is
essential for them to manage their customers crucial data. In this context, the bank chosen to
explain IT related security and cloud issues and their appropriate solution is HSBC, which
provides its banking services at a global level. There are two types of IT related issue:
1. Security
In this issue intruders get access to the personal banking information of an individual
which cost the bank very much and also effects its productivity at a global level. The intruders
can also hack their storage cloud to get the information that they want to, so it is essential for
HSBC to get permanent solution for these IT issues to improve their overall growth. In this
context, the solution for HSBC storage and security issue is that they will have to store their
important and personal data in pen drives, hard drives and other medium of storage. It will helps
them in recovering their data at the time of lost.
2. Cloud Storage
In cloud storage only the intended person can access the stored data but sometimes
intruders hacks cloud storage to steal that data which is stored online. In this context, HSBC can
takes several steps like aware its customers to change their password of online banking on a
quarterly basis. It will helps both HSBC and its customers in protecting their online data which is
stored in cloud(Davies, 2013).
(b) Education industry
Education industry also using information technology which is very helpful for peoples to
get knowledge by sitting at home. There are also many IT related issues arises in education
6

industry. In this context, the company taken for explaining IT related issues and their solution is
Alpha group.
1. Security
In this issue intruders get access to personal computers of an educational institution in
order to disrupt its operation and to steal important information. In this context, Alpha group
should use antivirus in their system to prevent themselves from these types of cyberattacks.
2. Cloud storage
In this issue due to mismanagement of education institutions, intruders fetch all their
important data which is stored in their cloud. In this context, it is necessary for Alpha plus to
choose effective storage company so that it will be impossible for intruders to access their data.
(c) Retail industry
Retail sectors also uses information technology to increase their reach in a global market.
For explaining IT related issues and solution in retail industry the company taken is Marks and
Spencer(Jensen, 2017).
1. Security
Data leak and stealing of intellectual property is a major IT issue faced by Marks and
Spencer. Data leak is a issue in which intruders steal customer's online data and in stealing of
intellectual property intruders steal design of a particular product. In this context, it is essential
for Marks and Spencer to adopt encryption and provide a tag on each of its product.
2. Cloud storage
The main issue faced by Marks and Spencer in this segment is data redundancy in which
there is repetition of same data on its data management systems. In this context, Marks and
Specialist has to appoint an specialist to manage these data regularly(Ricci, 2015) .
CONCLUSION
As per the above mentioned report, it have been analyse that with the use of different IT
methods a business organisation can able to achieve its growth and enhance their productivity in
a very effective manner. Company can use various management system like management
information system, customer relationship management and knowledge management system to
increase their performance. There are some issues in relation to this system and it is necessary
7

for a company to have proper knowledge about their solutions. By implementing proper security
measures company can increase performance level.
8

REFERENCES
Books and journals
Appadurai, A., 2012. Commodities and the politics of value. In Interpreting objects and
collections (pp. 88-103). Routledge.
Bentley, T., 2012. Learning beyond the classroom: Education for a changing world. Routledge.
Chen, K.K., 2014. Assessing the effects of customer innovativeness, environmental value and
ecological lifestyles on residential solar power systems install intention. Energy Policy.
67. pp.951-961.
Costanza, R. and et. al., 2014. Changes in the global value of ecosystem services. Global
environmental change. 26. pp.152-158.
Covey, S.R., 2014. The 7 habits of highly effective families. St. Martin's Press.
Davies, R.S., Dean, D.L. and Ball, N., 2013. Flipping the classroom and instructional technology
integration in a college-level information systems spreadsheet course. Educational
Technology Research and Development. 61(4). pp.563-580.
Jensen, M.C., 2017. Value maximisation, stakeholder theory and the corporate objective
function. In Unfolding stakeholder thinking (pp. 65-84). Routledge.
Nasca, T.J. And et. al., 2012. The next GME accreditation system—rationale and benefits. New
England Journal of Medicine. 366(11). pp.1051-1056.
Pearce, D. and Moran, D., 2013. The economic value of biodiversity. Routledge.
Ricci, F., Rokach, L. and Shapira, B., 2015. Recommender systems: introduction and challenges.
In Recommender systems handbook (pp. 1-34). Springer, Boston, MA.
Online
Data Management. 2018. [Online]. Available through
:<https://www.sas.com/en_us/insights/data-management/data-management.html>.
9