Analysis of Effective Information Technology Systems

This report provides a comprehensive analysis of effective information technology systems within a business context, using Johnson Supermarket as a case study. It begins by outlining the crucial role of IT in various business functions, such as sales, marketing, production, and human resources, and demonstrates how IT systems contribute to achieving organizational goals. The report then delves into the different ways IT systems process data, including transaction processing systems (TPS), decision support systems (DSS), and customer relationship management (CRM). Furthermore, it explores how IT supports organizational changes, enhancing efficiency and communication. The report also addresses common business problems, such as forecasting, supply chain management, and resistance to change, offering IT-based solutions. Overall, the report underscores the importance of IT in modern business operations, providing practical insights and examples to illustrate its impact.

Effective Information
Technology Systems

TABLE OF CONTENTS
INTRODUCTION:..........................................................................................................................1
TASK 1............................................................................................................................................1
P1 How IT systems are used in different business functions.................................................1
P2 How IT system contributes in achieving goals of Johnson Super market........................2
TASK 2............................................................................................................................................3
P3 Different ways in which IT system process data...............................................................3
TASK 3............................................................................................................................................4
P4 How IT system supports changes within organisation......................................................4
TASK 4............................................................................................................................................5
P5 IT solutions for common business problems.....................................................................5
CONCLUSION:...............................................................................................................................5
REFERENCES:...............................................................................................................................7

INTRODUCTION:
Information technology plays a crucial role in every business function. It is useful in
managing and controlling business operations so that effective outcome can be achieved. IT
helps in transforming business operations to bring efficiency in working and functioning of
departments. By implementing IT systems process, procedures, etc. can be changed to increase
productivity and performance of business. In this report it is shown that how IT systems are
implemented in different business functions which helps in achieving objectives (Taylor, Fritsch
and Liederbach 2014). Moreover, it is analysed that how IT systems process different data to
provide useful information. In another section, it is evaluated that how IT system brings change
in business performance. At last, an example is given to show how IT system solves common
business problems.
For present assignment, firm taken is Johnson supermarket. The cited firm belongs to
retail sector and operates in the UK. The existence of company on large level requires proper IT
systems to operate effectively. Thus, this report will brief about some IT systems that can be
implemented by firm.
TASK 1
P1 How IT systems are used in different business functions
The most common business functions include marketing, sales, production and human
resource. The objectives and goals are achieved by combing all these functions
Sales and marketing- It includes activities related to advertising and promotion. The marketing
information system helps in providing data and information about customers needs and market
condition. This information is useful in taking decisions regarding product, price, promotion, etc.
based on different factors. It helps in forecasting sales so that effective strategies can be
developed (Stadtler 2015).
Production- By implementing IT system in production process the efficiency of workers and
machinery can be increased. It helps in maintaining product quality and reducing cost. Also, it is
beneficial in implementing new system and machinery.
Accounting and finance- It refers to providing resources to business to execute its operations.
IT system will help in recording each transaction so that financial statements can be maintained
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properly. Also, it is useful in allocating resources to departments on the basis of their goals and
objectives (Schwalbe 2015).
Human resource management- It is related to work force planning that means estimating
required man power within ans organisation. IT system helps in providing training to employees
and measuring their performance. It is useful in enhancing productivity so that working
efficiency can be increased among them.
Research and development- Doing research in various areas help in expansion and growth of
business. It shows opportunities through which business can effectively perform its operations. It
brings change in process and system by implementing IT systems. Also, a platform is created to
implement new methods to improve business functions.
Management information system- It is essential for a business to store all data and information
regarding business activities. It is useful in creating reports of departments based on their
performance. IT system collect and stores data to take decisions which is helps in planning
activities (Laudon and Laudon, 2016).
Therefore, implementing IT systems helps in improving business operations. It modifies
overall organisational process and system that helps in bringing efficiency in operations. Thus,
the overall objectives and goals are achieved with increase in profits.
P2 How IT system contributes in achieving goals of Johnson Super market
An effective IT system will help in increasing profits and improving business efficiency.
It brings modifications in activities and process so that goals and objectives are attained with
proper utilisation of resources. Moreover, system collaborates working of different departments
to achieve common goal. However, it processes data to provide useful information that helps in
decision making and developing strategies. Through this data duplicity is reduced which
provides accurate and effective data. Also, it helps in providing training to employees to
complete task in effective way and enhancing their productivity.
Business decision- A manager role is to take effective decision to grow and expand the business.
IT system helps in providing data so that it becomes easy for manager to take decisions. It also
helps in setting goals and objectives of business. It provides flexibility in decision making so that
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in certain situations decisions can be changed (Peltier 2016). This leads to improve manager
performance in achieving goals and objectives. Thus, overall business efficiency is enhanced.
Various IT system implemented helps business to work with new techniques and
methods. It creates an innovative environment in which employees efficiency is increased. It
allocates resources effectively so that it is utilised properly and there is no wastage. For example-
data collected by sales department will be shared with production department. This will help in
producing goods according to market demand (Liebowitz and Frank 2016). Moreover, it will
allow production department to make changes in products with change in customers taste and
preference. In this way customers demands can be fulfilled. Thus, it will contribute in achieving
business goals.
TASK 2
P3 Different ways in which IT system process data
The data can be processed in different ways. In small scale enterprise information is
needed to make strategies to improve operations. It must be ensured that a suitable information
system is implemented to process data. It will be helpful in providing accurate and proper
information. So there are various information systems available to process data that are
mentioned below:-
Transaction processing system (TPS)- It is related to maintain and record daily transactions of
a business. It is a real time based system that stores and process data in an organised manner.
Johnson super market is a company whose mostly transactions are based on sales and purchase.
In this the data is processed through a database which stores all business transactions. This is
useful in maintaining records of each customer so that customer satisfaction is increased. It is
done to retain them by solving their problems and improving after sales services. This will lead
to enhance their decision making process and maintaining customer relationship management.
Furthermore, it creates a smooth flow through which communication between supplier and
purchase department is increased. Also, it helps in providing a clear information about which
stock is available, which needs to be fulfilled, etc. (Pearlson,, Saunders. and Galletta, 2016)
Decision support system (DSS)- A small scale enterprise has to take many decisions on growth
and development of business. So a decision support system provides information about various
business operations. It gives various alternatives to choose the best one from it. Decisions are
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made by analysing the past data and market condition. It is used by managers and experts at
every level to develop strategy. DSS collects information on sales, revenue, etc. It also helps in
solving employees conflicts by taking effective decisions. CRM can be improved by solving
customer problems or increasing satisfaction. DSS implemented in CRM gives an insight about
change in customer behaviour. DSS helps in taking decision in choosing supplier with cheap rate
and better quality raw material(Stair and Reynolds 2017).
Customer Relationship Management (CRM) – It helps in building strong relations with
customers so that they are retained. The techniques and methods used decides effectiveness of
business in solving customer problems. With CRM their needs are identified and feedbacks are
taken for improving product quality. It is generally used to keep details of customers such as
name, address, problem faced, etc. CRM also helps in identifying performance and behaviour of
sales employees toward customers. It shows that how an employee solved the problem and by
which method.
TASK 3
P4 How IT system supports changes within organisation
IT systems helps in modifying the entire organisation functioning. It changes the
procedures, process, etc. that enables employees to work accordingly. These systems allow
business to bring changes in its activities to increase their efficiency. All the information and
data is shared between departments that creates proper flow of communication. Due to this
employees are able to work effectively with more efforts. This leads to improve their working
ability and overall productivity. Also, IT system is useful for long run as it improves product
quality to compete in the market (Avgerou, and Walsham 2017).
The implementation of TPS will help in recording each transaction in Johnson super
market. It will help manager to make decisions based on data so that sales can be increased.
Also, it will allow purchase department to check inventory and communicate with supplier. An
analyses of financial statements can be done which will help in determining profit and loss of
each year. It will help in identifying weak areas and thus managers can develop strategies to
improve them. Moreover, it will help in controlling expenses and measuring performance of each
department. This will lead in providing resources accordingly and enhancing employees
productivity. It will directly affect the overall functioning of super market and increasing profits.
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TPS will bring change in operations by maintaining track record of every month profit and loss.
This is useful in measuring business operations and finding out areas to improve. It will allow
managers to take decisions regarding short and long term goals. If short term goals are achived
then business can focus on long term goals. Therefore, achieving short term goals will help in
improving overall business performance and productivity. Hence, it will lead to rise in profits
and gaining larger market share for Johnson super market (Boud, Cohen. and Sampson, 2014).
TASK 4
P5 IT solutions for common business problems
Various problems are been faced by business every day. This affects the entire business
operations and its productivity. So it is essential to solve these problems for smooth flow of
business operations. Managers develop strategies that helps in solving problems and ensures that
it does not happen in the future. The common problems are discussed below:-
Forecasting- It is done to predict future sales and profits. Many business are not able to properly
forecast it. This affects their growth and ability to increase profits. IT system helps manager in
forecasting b y analysing past data.
Problem solving- conflicts occurs every day in business. It affects working environment and
productivity of employees. Managers have to deal with it to maintain strong relations with every
one. IT system provides information to managers to solve these conflicts and is useful in
discussing
Supply chain- The supply chain is an important element as it provides raw material and delivers
goods to customers. So IT system creates link between purchase department and suppliers to
share data. This enables supply chain efficiency as an effective communication channel is
established between each element (Kerzner and Kerzner 2017).
Resistance to change- It is the most common issue faced by business due to employees
resistance in adopting change. Implementing IT systems allows employees to use it in enhancing
their skills and abilities. These systems provide various tools and methods to adopt by which
work becomes easier. Therefore, it motivates them to use it in completing tasks.
Failure of plan- It usually occurs in small enterprises as they do not have enough experienced
professionals and resources. Also, frequently changing market conditions causes plan to fail. IT
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system helps in overcoming this problem. Manager analyses different situations and develops
alternative plans that can be used in critical situations.
CONCLUSION:
From this report it is concluded that implementing IT systems helps an organisation to
improve its business operations. It is useful in increasing efficiency in overall business functions.
There are different IT systems used in business departments and that helps in taking effectively
decisions to achieve goals and objectives is shown. In addition to this transaction processing
system (TPS) and decision making system (DSS) in relation with customer relationship
management (CRM) is analysed. Further, how some common business problems such as
problem solving, resistance to change, etc. can be solved by implementing different IT systems.
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REFERENCES:
Books and Journals:
Avgerou, C. and Walsham, G. eds., 2017. Information Technology in Context: Studies from the
Perspective of Developing Countries: Studies from the Perspective of Developing Countries.
Routledge.
Blais, K., 2015. Professional nursing practice: Concepts and perspectives. Pearson.
Boud, D., Cohen, R. and Sampson, J. eds., 2014. Peer learning in higher education: Learning
from and with each other. Routledge.
Cassidy, A., 2016. A practical guide to information systems strategic planning. CRC press.
Garvey, W.D., 2014. Communication: the essence of science: facilitating information exchange
among librarians, scientists, engineers and students. Elsevier.
Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education
India.
Liebowitz, J. and Frank, M. eds., 2016. Knowledge management and e-learning. CRC press.
Pearlson, K.E., Saunders, C.S. and Galletta, D.F., 2016. Managing and Using Information
Systems, Binder Ready Version: A Strategic Approach. John Wiley & Sons.
Peltier, T.R., 2016. Information Security Policies, Procedures, and Standards: guidelines for
effective information security management. CRC Press.
Schwalbe, K., 2015. Information technology project management. Cengage Learning.
Stadtler, H., 2015. Supply chain management: An overview. In Supply chain management and
advanced planning (pp. 3-28). Springer, Berlin, Heidelberg.
Stair, R. and Reynolds, G., 2017. Fundamentals of information systems. Cengage Learning.
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