Business Report: The Value of Effective IT Systems at ASDA

This report examines the value of effective IT systems within ASDA, a grocery and general merchandise retailer. It explores the usage of information technology across distinct functions within the firm, such as research and development and finance, highlighting how IT streamlines operations and supports decision-making. The report illustrates various ways IT systems contribute to achieving business objectives, including product development, process improvement, cost efficiency, competitive advantage, and globalization. It delves into data storage and processing methods, including file, block, and object storage, as well as the application of knowledge management systems and customer relationship management (CRM). Furthermore, the report analyzes how IT supports value-added change within the digital age, emphasizing the importance of adapting to market trends and formulating effective IT strategies. The report provides recommendations based on the analysis and concludes with a summary of the key findings, emphasizing the critical role of IT in ASDA's success.

The Value Of Effective
IT Systems

Table of Contents
Introduction.................................................................................................................................................2
P1 Examine usage of information technology in distinct functions of firm.............................................2
P2 Illustrate different ways through which information technology systems contribute within achieving
objectives.................................................................................................................................................3
P3 identify distinct ways for storage and processing of data...................................................................5
P4 How information technology is used for supporting value added change...........................................6
P5 Recommendations..............................................................................................................................7
Conclusion...................................................................................................................................................8
References...................................................................................................................................................9

Introduction
The set of organized components that are being utilized for collecting, storing as well as
data processing by rendering information, digital products as well as knowledge of services.
Business firms are entirely dependent on information system through which they can carry as
well as manage their operations within the competitive market (Becerra-Fernandez and
Sabherwal, 2014). To understand the concept of business information technology, ASDA is
taken into consideration which was established on 19th February, 1949 and delivers their services
in groceries, general merchandiser and financial services. This report comprises of utilization of
information technology, role within organization and the different ways for handling data will be
illustrated here. In addition to this, IT systems are being used for enhancing the operations as
well as solutions are provided for issues that occurs within.
P1 Examine usage of information technology in distinct functions of firm.
The broader term that is liable for illustrating technological enhancement in context of
management as well as processing of electronic data is referred to as information technology.
Business firms make use of information system which enables them to deliver their services as
per required standards which make them stand ahead from competitors present in the market
(Bentley, 2012). There exist distinct departments in ASDA who are liable for carrying out
distinct functions. Through usage of information technology, operations of different units can
become easy, it has been mentioned below:
Research & development operations: This unit carries out their operations on the basis of results
attained by marketing department as well as carrying out analysis with respect to what their
competitors are doing within the market. ASDA can make use of technology to identify what
new products are brought within the market and how they are captivating customers towards
services that are being rendered by them. To have a enhanced as well as clear view of their
products, they can make use of simulation tools (Burrough and et. al, 2015). It will enable them
to have optimistic outcomes as through this, ASDA can identify what goes wrong and what is apt
via which needs of their customers can be addressed.

Finance activities: Every firm carry out their operations to ensure that their activities do not get
hampered due to lack of resources. For this it is necessary that appropriate budget must be
formulated and before stock gets over it must be made available so that their probable customers
do not face any problem & shift to their competitors or look for substitute for services that are
being rendered by competitors of ASDA. For this, if Information technology systems will be
used then it will have an affirmative impact as when manual calculations are carried out then
there are higher probabilities that some errors might occur but when same thing is done by
machine probability of bugs declines (Hendriks, 2013). For this, finance department of ASDA
can make use of transaction processing system which will enable them avoid small mistakes and
have a clear idea about what is the total budget and how it can be utilized .
As ASDA is delivering their services in multiple locations, then they can also opt for
virtual collaboration. This term implies that digital tools can be utilized for attainment of tasks.
Basically, through this, virtual collaboration can be carried out in between different teams who
might be within different locations but can have a interaction through which they can formulate
strategies and discuss the plans with respect to future growth (Hitomi, 2017). This will enable
ASDA to have efficacious face to face communication via making use of technology.
P2 Illustrate different ways through which information technology systems contribute within
achieving objectives.
IT has important role in the way services are being delivered by organization as it makes
work easier as well as enhance them. ASDA can make use of IT for rendering their services and
through this they can attain their objectives in an appropriate manner. Contributions of IT have
been illustrated below:
Product Development: Information technology will enhance the ways by which end product
gets within the market. Through proper usage of proprietary data and marketing intelligence
firms will be able to document product needs as per required standards. For this different tools
can be utilized like computer aided design or manufacturing tools. They will assist within
carrying out responsibilities quickly as decisions can be formulated easily with respect to designs
and other aspects associated with end product (Jaques, 2017). Furthermore, collaborative
technologies aid distinct teams for working within different subsections of teams in a
simultaneous manner. Information technology assists firms to respond to changing needs of their

customers. Within product development ASDA can make use of these tools so that efficacious
decisions can be made.
Process improvisation: Enterprise resource planning assists management for reviewing their
sales that have occurred, cost associated with them, operating metrics along with unified
software platform in a real time environment. ERP system will aid within regeneration of
different legacy systems for distinct functional areas (Laurillard, 2013). This will lead ASDA to
have a cost efficient as well as efficacious system as it will enable them to carry out their
processes in accurate as well as precise manner so that affirmative results can be attained.
 Cost efficiency: Initially execution of information technology is costly but in context of
long term benefits this is worth making investment. This will assist within elimination of
errors which might take place while carrying out transactions in an effectual way.
Information technology based solution ranges from utilization of word processing to
sharing of resources among different units of firm. This will lead ASDA to save the
unnecessary cost that is related with resources and delivering their customers with high
quality end products. Through utilization of software errors will be minimized as there
are higher chances when manually things will be carried out by employees.
Competitive edge: Cost savings, rapid product development and enhancement in existent
processes will assist firms to acquire and maintain their high competitive position in the market
(Mohammed and Yusof, 2013). For an instance, if ASDA opts to develop their own application
through which they can provide their customers with an option to opt for online shopping then
there is possibility that their competitors might also opt for same. This is done so that market
shares do not get adversely affected. But this will render ASDA within a competitive edge as
they brought in the technology and individuals will be more open to services delivered by them
as ease will be provided to them. For this, management make use of rapid prototyping, software
simulations as well as other IT based systems can be utilized which will assist within bringing
product successfully in marketplace.
Globalization: Organization can sustain within evolving market if they possess operational and
financial flexibility for growing p at domestic along with international market (Pearlson,
Saunders and Galletta, 2016). Within globalization, this will act as a core operating model like

telecommuting and outsourcing. It will enable ASDA to outsource non-core functions such as
human resources, finances as well as network technologies so that they can stay in contact with
overseas employees, suppliers along with their customers.
This implies that IT has made wider contribution within the way firms render their
operations. In context of ASDA, information technology will lead them to attain their goals
within timely manner as per desired standards.
P3 identify distinct ways for storage and processing of data.
Data storage is defined as a process that is being utilized for storage of data or
information in storage devices. Basically, it illustrates the way for keeping information within
the memory storage for utilization by the system (Rainer and et. al, 2013). Most common forms
of data storage are block and file storage as they will render apt outcome within unlike
operations. File storage is inexpensive & constructed in which data is present in files & folders
which is found within hard drives. In context of block storage, information is stored within the
evenly sized blocks which are less complex, scalable as well as more expensive. This implies
information that has to be accessed frequently and edited. In case of object storage, data is stored
like an object which possesses exclusive identifiers and meta data. It is not expensive and
frequently edited data. This is a collective technology which can be used for retaining
information present on different storage mediums. In addition to this ASDA can make use of
services from cloud as here firm do not need to make expenses with respect to storage or
maintenance of hardware (Reichert and Weber, 2012).
Knowledge illustrates the awareness related with information as well as how it can be utilized
for formulation of decisions and carrying out tasks. An instance can be taken to understand this;
the budget can be analyzed by ASDA with respect to amount of time needed by employees to
work on specified project. Through this, raw data will be collected and on the basis of that
knowledge will be extracted from this. Knowledge management system is defined as an
structured gathering of devices, people, software, database, storage and procedures. Basically,
knowledge illustrates possession of information and general aspects in terms of truth, awareness,
facts and ideas (Schwalbe, 2015). Knowledge is possessed by individuals with respect to their
experiences and involves certain norms on the basis of which certain situations can be examined.

Data communication refers to exchange of information in between source and receiver by the usage of
transmission medium such as wired cables. It is referred to as local in case interacting devices are
restricted into same building or geographical. An instance can be taken to understand this aspect such as
mail sent by staff of ASDA will act as a source and the one will receive it is referred to as receiver. The
rationale behind data communication is to interchange information as well as its maintenance while the
process is being carried out (Stair and Reynolds, 2013).
Customer data relationship management is defined as strategy that can be utilized by
management for carrying out communication so that trenchant relationship can be maintained with their
probable customers. This implies a system that aids firm for remaining in association in terms of
streamline processes, gaining higher profitability as well as being in connection with customers.
Generally, CRM tools can be utilized by management of ASDA for improvisation of sales, productivity
along with other major assets of firm. The rationale of this is to enhance overall operations as well as
business relationship.
P4 How information technology is used for supporting value added change.
Within the evolving or digital age, IT is being used by almost every firm to ensure that their
performance can be enhanced by gaining stability. With respect to this, it is important for
management of ASDA to possess complete knowledge related with altering trends within the
market in terms of technology. It is one of the most evolving alterations which have critical role
within the firm in terms of ways in which services are being delivered by them (Becerra-
Fernandez and Sabherwal, 2014). Therefore, it is crucial for them to identify significance of
technology within their specified business. Information system is liable for rendering various
benefits to firm and they must be identified by them so that they can have long term benefits by
making use of them. This can be attained through formulation of strategies as in case effective
policies are being framed then it would become easy to attain goals. This is important o possess
knowledge related with technology so that their networking channel can be enhanced which will
lead them to enhance their sales as well as identify actual needs of their customers. This denotes
that by making use of technology both short term and long term goals can be attained in an
impelling manner. For this, it is necessary that ASDA to identify their management as well as
leadership style so that appropriate alterations can be made through which employees can be
comfortable with respect to technology they are about to use. This will lead them to gain

enhancement as individuals will be open to adapt to a new technology while delivering their
services (Bentley, 2012).
Through appropriate usage of information system, ASDA will be able to render their services
and reaching out their customers at optimum prices. By taking this into consideration in an
effective manner a strong position can be developed within the market which will enable them to
attain their bottom & top line objectives. For effective usage of IT, it is crucial for firm to accept
the information system as well as render training to them accordingly (Burrough and et. al,
2015). This will enable them to work till their entire potential. Basically, it can be said that
information system will act like a revolutionary way which will intensify performance thereby
leads to enhanced productivity in an effectual way.
Furthermore, this has been found that IT will aid within enhancement of knowledge along with
performance of their employees. An instance can be taken to understand this, in case any
problem is faced by individuals of ASDA then they can make use of emails or video conferences
to have a solution to specified problem. This will create collaboration within the working
environment that will make sure that work is carried smoothly in an appropriate way (Hendriks,
2013). Through assistance of this profitability along with productivity can be enhanced in an
efficient manner. Furthermore, it can be used for attaining feedback from customers and
accordingly products can be delivered.
P5 Recommendations
It is suggested that ASDA can make use of information technology for carrying out their
operations as this will aid them to improvise their efficiency. As they are rendering their services
within distinct stores it is necessary that strong bond must be created with customers and this can
be done in an appropriate manner through usage of information technology. The rationale behind
this is that through utilization of social media it will become easy to carry out communication.
ASDA can also opt for having their own application to grab attention of maximum number of
customers and render them easiness. It is recommended that firms must update their system so
that any kind of vulnerabilities do not come and enter into their system with respect to security
aspects. The reason for this is that new features are being added when system is upadated, this
will render ASDA with enhanced elements.

Accounting consultancy regulatory systems can be utilized for collecting, storing,
managing and reporting of financial data can be utilized by accountants, regulators, consultants,
business analyst and chief financial officers of ASDA. Management of eXtensible business
reporting language (XBRL) can be utilized. It is a standardized software that can be used for
improving ways in which financial data can be communicated.
Conclusion
From above it can be concluded that, information technology plays critical role the way in which
they carry out their operations. Overall IT will have an affirmative way within the organization in terms
of storage, processing, security of data, reaching out their customers and many other factors. This will
lead them to gain enhanced productivity, profitability as well as make ahead from their competitors as IT
will make their tasks easy and assist them within meeting requirements of their probable customers.
Furthermore, through usage of cloud they can eliminate the unnecessary cost that is associated with
storage space, maintenance or security aspects.

References
Books & Journals
Becerra-Fernandez, I. and Sabherwal, R., 2014. Knowledge management: Systems and
processes. Routledge.
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university press.
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effective implementation by the public sector of South Africa. South African Journal of
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Schwalbe, K., 2015. Information technology project management. Cengage Learning.
Stair, R. and Reynolds, G., 2013. Principles of information systems. Cengage Learning.