University of Suffolk CFPBUS003 Report: IT Impact on M&S Operations

This report delves into the impact of Information Technology (IT) on Marks and Spencer (M&S), examining how IT tools and internet applications have been integrated into their operational strategies. The report explores the use of POS terminals, mobile applications, and CRM software to enhance customer reach and engagement. It highlights the role of Management Integrated Systems in fostering innovation and improving revenue, profit, and productivity. The report also discusses M&S's collaboration with Tata Consultancy Services to optimize processes through automation, noting the rise in both online and offline sales as evidence of IT's effectiveness. The literature review covers M&S's initiatives in redefining operations through innovation, emphasizing sustainable approaches and the integration of IT in various business processes. The analysis section discusses the implementation of IT in M&S's various functions, including financial transactions, customer service, and data management. The findings show the impact of IT on customer experience, sales growth, and overall business performance, with the conclusion summarizing the benefits of IT implementation and potential challenges. The report also touches upon the importance of data protection and adherence to regulations.

IMPACT OF INFORMATION
TECHNOLOGY

EXECUTIVE SUMMARY
This report is based on Marks and Spencer (M&S) operational undertakings with context of
maintenance and development of inclusion of Information Technology tools and application of
internet for promotional activities. It had put insights on the use of POS terminals, mobile phone
application in order to reach their potential customers’ conveniently and faster, CRM Software
and many more. Their approach in employing Management Integrated System had also enhanced
their innovation and creative concepts to reach the targeted marketplaces for enhancing their
company’s revenues, profits and productivity. In regard to the same, M&S management
collaborated with Tata Consultancy Services to improve their end-to-end processes
commendably through new technologies through automation. There was a rise in both offline
and online sales that implied the effectiveness on the impact of IT field on M&S operations.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LITERATURE REVIEW................................................................................................................1
ANALYSIS AND DISCUSSIONS.................................................................................................4
FINDINGS.......................................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Information Technology has revolutionized all the operational procedures involved in the
production or manufacture of a product or service of an organization. It is steadfastly gaining
popularity to reach their targeted population to enhance their employees’ engagement and
customers’ retention. This assignment gives useful insights about emergence and gradual
interferences with appropriate implications on the investment, extension, overall status and
utilization of Information Technology (IT) in the field of business sector. Here, Marks and
Spencer (M&S) has been considered, which is one of the largest retailing organizations of UK.
LITERATURE REVIEW
M&S is interested in redefining their operations with innovation, including value chains,
stores etc. through providing high quality standards in their branded clothing, home products and
food items at both national and international levels. Their ultimate aim is to maintain carbon
neutrality worldwide until 2020 by implementing sustainable approaches that promote the utility
of IT (Zokaei and et.al., 2016). However, this is only possible by integrating basic knowledge of
Information Technological advancements with M&S operational processes such as e-business,
its project management with mobile technologies, that takes place every day.
As per Pinto and Bellini, 2017, it has not only assisted in processes of production or
development, but is also easier to employ them at faster speed with cost effectiveness and time
efficiency. With the help of using internet and IT, marketing and promotional activities can be
done effectively. This IT study emphasis on the emergence of its expansion in context to work-
culture environment to promote the direct and clear organizational paradigm. For e.g. Google
gave wings to public and companies as well to explore options available and recent market
trends for modifications or improvisations. Along with this, it has helped companies for their
website development and inclusion of mobile phone applications that has also come into great
demands to bring a 360 degrees’ shift in their customers’ perspectives along with shareholders to
enhance and update their company’s details.

Figure 1.Official website of M&S
(Source: M&S official website, 2018)
Additionally, it has given opportunities to companies in broad classification for their
businesses such as simplification of decision making by applying innovation in their designing
part and decentralization of information in handling tasks and sharing data or information. ICT
(Information and communications technology) is the integrated convergence through a single
linkage for unification of all the communication channels by reducing costs and additional
burden in leaps and bounds. Online Analytical Processing (OLAP) is the effective tool which
supports organizations in performing queries by using data warehouses and databases. These is
also use of Artificial Intelligence tools like genetic algorithms, networks of neural etc. to
determine whether customers have overdue accounts (Eccles, Krzus and Ribot, 2015). An
organization can split the computing power by locating the functional spectrum in a sequential
order with informal accessibility at a single position. This has affected the financial record
keeping by incorporating MIS, POS etc.in a more proficient manner
According to Aloysius and et.al., 2018, Research and Development field has also seen
progress by embracing IT for overall development and growth in various departments. It acts as
the infrastructural backbone for undertakings to make inventions and innovations by succession
implementation of steps to gain the competitive advantages prevailed in the market.

Consequently, analysis can be done on the consumer behavior that can help the large as well as
small businesses to apply their strategic moves and tactics for maximum utilization of their
allotted resources and increasing their profitability rates gradually in an exponential direction.
Further, detailed designing has been made convenient by using computer aided programs
like CAD, CAM, Photoshop, etc. that have paved a flexible path for improvements in products as
per customers’ requirements, needs and demands. There are many more benefits that supported
enterprises to expand globally by channelizing the challenges into their advantages with the help
of IT. In regard to this, Morimura and Sakagawa, 2018 said that use of social media platforms for
collecting data and surveys, promoting their products or launching dates, evaluating the quality
parameters by referring to reviews given by legal bodies and consumers as well has been
established. Moreover, the practical utility in businesses has a widespread reach towards their
brand awareness amongst consumers at global level. There is a propagation of seamless online-to
offline experience and vice versa for customers so that they can be maximizing M&S revenues
indirectly by using digital technology methods like RFID that assisted its stores layout to do
renovations at a faster and convenient mode to fetch attention of their consumers, opponents and
employees.
Subsequently, this IT networking of software development and administration of
database has many loopholes. There can be cases of frauds, scam, IPR or copyright issues.
Negative publicity can occur, if some unwarranted incidents like discrimination, pay inequality,
support to some taboo topics and leakage of financial records can tarnish company’s reputation
in few strides (Wilson, 2016). When IT services are hired from external sources, there is a
possibility that compliance specifications are met but along with, there will be chances of risk
penalties or legalities problem. Businesses can become vulnerable to cyber hacking, stealing of
clients’ data, phishing, susceptibility towards any malware or viruses, crashing of hard drives due
to outdated software and weak firewalls breakthrough. This leads to re-constructing of the entire
database that will lead to uncalled additional expenses by the establishments.
ANALYSIS AND DISCUSSIONS
The following analyses has been done with context to Marks and Spencer regarding the
extension of inclusion of IT in their several businesses all over the world. They have a large
workforce and thus, in need of maintenance of their details and records in systematic order by

creating huge databases with the help of computer programs (Morimura and Sakagawa, 2018).
Recently, IT has become an indispensable part in all business functions for executing their
financial information and transactions electronically with a strong and secured back up storage
arena. Point-of-sale (POS) terminals have replaced cash registers that helped in billing of
customers, tracking of total production, required supplies, payments and more. Its practical
application must be encouraged by various corporations so that the world can lead this
digitalization with ethical and socially relevant principles to give another level of adrenaline rush
to their customers. There are many stigmas attached to its utility and employing part but
however, it has been observed that it has helped in promoting growth and innovation by saving
time, cutting operational costs and building efficient and skilled workforce.
Figure 2. Changed objectives due IT interference
(Source: Making M&S Special, 2017)
However, it helps in printing of this sales receipt for future use by customers. When
customers use their mobile app, then they can easily get notified about new offers, sales or
discounts with their availability of shipment. Successively, this technology has benefitted M&S
by using CRM software with their customers’ phone systems so that they would be automatically
direct towards their services.
Organizations can handle personal information of their employees, shareholders and
other confidential resources by implementing Data Protection Policy and procedures. M&S did
the same and ensured that any such mis-happenings can be stopped beforehand about losing out
on their vital data involving promotional gimmicks or marketing related to brand’s product or

service (Laudon and Laudon, 2016). They have been abided by the strict regulations and policies
as per the Computer User Agreement and when failed to follow this, it will result in disciplinary
action. It might also come under deliberate breach of contract or unauthorized access.
M&S has merged their entire collection of data at one centralized single location, by
adopting Management Integrated System for easy approachability so that the complete
framework of their security requirements must keep in compact and intact order. This
governance of information must be committed with appropriate legal and obligatory regulations
that will help in doping legitimate business at international level and national level as well
(Purvis, 2015). In today’ s time, this controlling of procedural methodologies can lead to use of
more such ubiquitous and sophisticated innovations which help in diverse utilization of such
hardware and software technologies. These can support innovations exclusively by following
Intellectual Property Rights that can help in waiving any rights related to protection of this
invention or new idea. Thus, M&S has victorious profits and productivity as it has outperformed
its competitors like Tesco, Asda, Sainsbury in effective manner.
FINDINGS
With this onset of IT, it solely helped this cited enterprise to make its services customer
friendly by upgrading their mobile phone application and website as well. It is just a click away
from the plethora of information, that can be found on M&S. It was observed that there is only
18.5 % participation from its clothing and home sales that are online at local level. Moreover,
their existing growth is 5 % annually, which they have planned to increase by 2022 to 33 %
target (Vincent, 2018). This organization has approximately 1035 stores alone in the United
Kingdom, with more than 425 stores that are located in the other parts of the world.

Figure 3. Lower cost in retailing by using IT tools
(Source: Making M&S Special, 2017)
There has been an increase in both the sales, that is, online and offline as well. This has
directly enhanced the performance management of Marks & Spencer. There was a huge
investment made on this IT inclusion in terms of techniques, tools and methods to improve their
poor online logistics (Shaikh and Karjaluoto, 2015). The retailing sector has been struggling
lately due to the competition escalation at higher rates but although, the situation looks
complicated, there is the ray of hope in the form of a trustworthy, transparent and clear
distribution channel. It will affect the operative conditions in proper and algorithmic sequence to
help M&S restore its integrity internationally in today’s cut-throat market.

Earlier, in mid-November, Marks & Spencer outlined a transformational program to spot
a basic futuristic plan for restoration purposes. In addition to this, the sales growth was gloomy
as 3% only was recorder in non-food goods, which had been always estimated at roughly 8%.
This situation alarmed their stakeholders, employees, shareholders as it will hamper their overall
appraisal system (Reilly and Hynan, 2014). Currently, M&S management has collaborated with
Tata Consultancy Services, who have pioneered their way of doing things by including
automation through new technologies to improve their end-to-end processes effectively. This
will help in bringing significant worth to customers and employees. This creation will push
major geographical boundaries, with effective from 1st March, 2018 and has a huge impact on the
workplace culture, employees, refurbishment of stores with distribution channels and customers.
CONCLUSION
It is summarized about expansion of IT and its usage of tools for fulfillment of customers
and employees. This slowed the promotion of business team towards the success pathway of
improvements and developments by providing cost-proficient solutions to multiple challenges of
M&S to complete their projects on schedule. It has also described about the various
malpractices’ that can occur to gain financial profits by illegally stealing private data of
businesses through hacking, forgery and various other mediums. To sum up, this implementation
of IT is proving beneficial but one must be careful while dealing to avoid any losses.

REFERENCES
Books and Journals
Aloysius, J.A. and et.al., 2018. Big data initiatives in retail environments: Linking service
process perceptions to shopping outcomes. Annals of operations research. 270(1-2). pp.25-51
Eccles, R.G., Krzus, M.P. and Ribot, S., 2015. Models of best practice in integrated reporting
2015. Journal of Applied Corporate Finance. 27(2). pp.103-115.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education
India.
Morimura, F. and Sakagawa, Y., 2018. Information technology use in retail chains: Impact on
the standardization of pricing and promotion strategies and performance. Journal of Retailing
and Consumer Services. 45. pp.81-91.
Pinto, G.L. and et.al., 2017. Innovation strategies in retail services: solutions, experiences and
meanings. European Journal of Innovation Management. 20(2). pp.190-209
Purvis, M., 2015. Direction and discretion: the roles of center and branch in the interwar
management of Marks and Spencer. History of Retailing and Consumption. 1(1). pp.63-81.
Reilly, A.H. and Hynan, K.A., 2014. Corporate communication, sustainability, and social media:
It's not easy (really) being green. Business horizons.57(6). pp.747-758.
Shaikh, A.A. and Karjaluoto, H., 2015. Making the most of information technology & systems
usage: A literature review, framework and future research agenda. Computers in Human
Behavior. 49. pp.541-566.
Wilson, D., 2016. Marks & Spencer: the quest to master the new millennium. The Business &
Management Collection.
Zokaei, K. and et.al., 2016. Creating a lean and green business system: techniques for improving
profits and sustainability. Productivity Press.
Online

M&S official website, 2018. [Online]. Available through:<
https://corporate.marksandspencer.com/annualreport>.
Making M&S Special, 2017. [pdf]. Available through:<
https://corporate.marksandspencer.com/documents/reports-results-and-publications/half-year-
result-17.pdf>.
Vincent, M., 2018. M&S is finally coming to the online retail party — like it’s 1999. [Online].
Available through:< https://www.ft.com/content/ea497d0e-5e7a-11e8-9334-2218e7146b04>.