Impact of Information Technology on Retail: A Comprehensive Analysis

This report provides a comprehensive analysis of the role of Information Technology (IT) in the retail sector. It begins with an introduction to IT and its significance, followed by a literature review examining the impact of IT on business success and failure, with a focus on Tesco as a case study. The report also delves into ethical and social issues pertaining to running a retail enterprise, such as data privacy and misuse of personal information. It then explores different networking technologies, including LAN, MAN, PAN, and WAN, and discusses the importance of the internet and intranet within organizations. The analysis and discussion section focuses on the role of IT in management, encompassing communication, planning, and control functions. Finally, the report concludes by summarizing the key findings and implications of IT in the retail industry, offering insights into the system life cycle for establishing IT infrastructure. The report uses various academic sources to support its arguments and provide a well-rounded understanding of the subject.

INTRODUCTION TO INFORMATION TECHNOLOGY

Contents
INTRODUCTION...........................................................................................................................2
LITERATURE REVIEW................................................................................................................2
ANALYSIS AND DISCUSSION...................................................................................................6
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Information technology is based on the process of making use of modern technologies which
bring about better growth and development. It is consider as branch of IT basically help to store,
collect, retrieve the large amount of data which can manipulate within hardware system. Apart
from the hardware and networks, information technology always makes use of various other
resources through television. The overall purpose of IT is to provide the better facilities to handle
the business activities. The assignment will discuss about the significant role of IT in retail
enterprise in term of success as well as failure. In order to find out the ethical and social issues
which automatically pertain to running business efficiently. Furthermore, the documentation will
describe about network technologies, significant of internet and intranet in the organization. At
last, it will discuss the different steps where team member follow the system life cycle for
adapting the phases in IT infrastructure establishment within organization.
LITERATURE REVIEW
Discuss the role of IT in the success of failure of business
According to Rodríguez, Molina-Castillo and Svensson (2020) with increasing the
globalization of retailing where information technology spend in Tesco which has increased
significantly. Information technology plays an important role for managing overall business
operation and function. In order to manage or control the large amount of data or information in
proper manner. Nowadays, Tesco retailer need to transform their information technology
capabilities for various reasons. Information technology plays important role in Tesco to increase
ability and response evolving marketplace through flexibility, enhanced the overall speed. In
another way, it also helping for retailer to collect and analyse the customer data while enhancing
for differentiation. In context of success, Tesco need one system working across multiple store
and make sure that handle effective stock market. In order to improve the business operation and
function.
As per Saha, Cerchione and Dahiya (2020) view information technology provide the
security to Tesco retailer where setting security practices. In this way, it can easily mitigate
payment security risk. There are lot of customer purchase product through online website. So as
require for Tesco to maintain their security aspects. Therefore, retail enterprise engaged in credit
payment processing which require to comply with PCI security standards. If in case retailer
collect, store credit card derails which become compromised. Tesco would take advantage
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through IT system which obtain optimal benefits, advantage. In order to control the price and
provide better service delivery by using IT system.
Pattinson and Wanjiru (2020) argue that when it comes to organising information
technology which completely change the impression among customers. Retailer adapt the digital
concept to perform different task. Therefore, it can easily control the problem among customer
where they are directly interact with service provider to resolve their issue of query related
product. However, IT plays important which automatically increase the productivity and
profitability in global marketplace. In order to achieve success of business through outcome or
result.
Ethical and social issues that pertain to running enterprise.
As per Saha, Cerchione and Dahiya (2020) the growth and development of business
depend on the internet that has made it possible to store information about individual’s. It relying
on modern technology and abuse the personal data, privacy violations in the information
technology. Tesco retailer have faced the issues related social as well as ethical. It has a lack of
integrity in the business environment or culture. The most use of information technology that
become consider issue such as illegal way to download software. The usage of social network
which directly affects on the social culture, people. In another way, it can be understands that
unethical way to use sites and access which become easier. In order to expose unethical site and
increase the social dilemmas, mental and psychological problem among people.
Pattinson and Wanjiru (2020) said that issues related ethics in the information technology
and directly effects on the society in order to give insight view. Afterwards, it can easily
identified the negative measurement. The high use of internet has increased the negligence of
people life including work, sleep and physical activities. it is completely damaged the current
situation and rapidly change the behaviour of customers. Moreover, The ethical abuse is
common in the field of information technology. In this way, it will require to analyse the current
situation and underlying causes of problem. It should be consider solution to prevent them.
Furthermore, it can be identified several ethical issues in IT such as lack of personal privacy,
harmful actions and unauthorised access from third parties. In this way, it can easily address such
type of ethical issue in term of IT within retail enterprise.
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Different types of networking technologies
According to the view of Chakraborty and Telgote, (2019) there are various kinds of
networking technologies that can be adopted by organizations as per their operational and
communication needs. But most commonly four main types of networking technologies are used
by organizations, that are: LAN (Local Area network), MAN (metropolitan area network), PAN
(personal area network) and WAN (Wide area network). Chakraborty and Telgote, (2019) says
that, LAN is used by organizations for connection of two or more personal computers with the
help of wired communication medium like coaxial cable, twisted cable etc. LAN is mostly used
for connecting group of computers within a small area such as a building or an office. It is used
by organizations as it is less costly. It is used by organizations as it is less costly because it uses
less costly hardware’s such as: hubs, network adapters, and ethernet cables. All the data
transferred with this network is done at an extremely faster rate. Another reason because of
which this LAN network is adopted by organizations is because it is highly secure. PAN network
is mostly used for connecting range of devices within 10 meters. It is majorly used for
connecting computer devices for personal use. This network can be used for connecting laptop,
mobile phones, media player, play stations and many other devices. There are two main types of
PAN network: wired and wireless personal area network. Wireless PAN uses technology like
WiFi, Bluetooth etc. Whereas, wired PAN is connected with the help of USB cable.
As per the view of Hanes and et. al., (2017) Other than LAN and PAN there are two other
kinds of networks: MAN and WAN. MAN network is used for connecting large geographical
area of network by interconnecting different LAN in a large network. Most of the times MAN is
used by government agencies in order to connect private industries and citizens together. It has
high range of LAN connected with each other. It is also used by banks to maintain
communication within a city. Mostly it is used for airline organizations for reservation purpose.
In simple words, it can be said that Man helps in maintaining communication within a city area.
Lastly and majorly WAN is a kind of network which is mostly used by people as it helps in
covering large geographical regions such as states or countries. Hanes and et. al., (2017) says
that, WAN is a much larger network as compared to LAN, PAN and MAN. This network is not
limited to a single location but can be connected globally though telephone line, fibre optic cable
or satellite links. Three most common examples of wide area network are: mobile broadband
such as 4G which is used across a region or a country. a telecom company that provides internet
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services to their customers. Private network that are used by large organizations, as Wan helps
them to connect all of their offices present globally together.
Importance of Intranet and Internet in organizations
According to the view of Stein, Taskaeva and Chibisova, (2016) intranet plays a vital role
within an organization. Most of the organizations today relay upon intranet for automating their
operations and daily workflow of the organization in order to enable excellent and better decision
making. Most of the operations and functions of a business relay upon intranet in order to deliver
tools such as customer relationship management tool, collaboration, scheduling, project
management and many more in order to increase productivity of the organization. Stein,
Taskaeva and Chibisova, (2016) further explains that, Intranet is s kind of a private network
which is only accessible to the staff members of the organization only. It is one of the best things
which helps in maintaining companywide internal communication. Large organizations allow
intranet to access public internet with the help of firewall servers. It provides various kinds of
benefits to the organization such as: it helps business in distributing information to all the
employees of the organization in a much effective and time saving manner. All the useful
information such as: procedure manuals, internal phone list and requisition forms can be viewed
by the users though web- browsers rather than maintaining physical documents.
As per the view of Isaac and et. al., (2018) internet is another important thing which is
necessary for organizations in many ways. Growth of Digital Marketing, Internet banking, and
eCommerce business models itself helps in explaining importance of internet within business. It
is extremely useful and important for business in maintaining effective relationship with their
clients and customers. high speed internet also helps in increasing overall production of the
organization. It helps organizations in getting and analysing customers data, buying behaviour
and habits so that this data can be used by the, for developing marketing strategies. It has also
helped the organizations in increasing overall speed of the production. Not only this, Isaac and
et. al., (2018) further explains that, effective use of internet has also helped the organizations in
increasing scope of marketing so that they can reach their customers in an effective manner with
the help of digital marketing, social media marketing and many more. It has also helped business
in bringing innovation within their products and services which further helps them to achieve
their desired goals in a better manner.
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ANALYSIS AND DISCUSSION
Understand the role of information technology in management.
The information technology plays important role in tesco management which consists of
wide range of hardware as well as software solution. In order to create and enhance the
performance of manager in business operation. Since, IT is mainly adapted to server the multiple
function in term of management (Hassan, Parvez and Ekiz, 2019). Sometimes, it also described
in different term such as communication, control, planning and monitoring. These are consider as
important function that are performed in Tesco. In these functions, information technology can
enhance each function to gain more competitive advantage.
In retailer, the important thing is that when leading management so as needs to establish
communication between manager and staff members. Information technology perform
significant role where they provide better way interact with manager such as email, telephone
(Hassan, Parvez and Ekiz, 2019). It allows staff members with quickly share information both
inside as well as outside office (Sparks, 2019). On the other hand, information technology
provide video conferencing software that can allows for retailer manager to meet with staff
member face-to-face when they are geographically very far distant. The Tesco management
involved the planning but needed to collect, analyse the large amount of data set. After, it will
make wide range of metrics through information technology (Hassan, Parvez and Ekiz, 2019). It
is becoming perfectly suitable that always assists in task management. Retail can use budgeting
software that help for management team to construct the details and informed with reasonable
price. In this way, manager of Tesco can take benefit or advantage of logistic planning,
workforce management and demand forecasting. In order to provide the better solution by using
virtual planning (Awadari and Kanwal, 2019). IT ensure the reliability for planning and
aggregating large volume of data set which possible to control and manage in proper manner.
In Tesco, manager is responsible for keeping plan on track whether it is short-term or
long-term. The organization is developing the marketing campaign which supports for providing
information to potential customer in global marketplace. In context of IT, it should be consider
hardware as well as software technology which controlling the quality and monitoring the
activities of productivity (Awadari and Kanwal, 2019). In some situation, this type of monitoring
software support for providing alert message in case if mistake occurs in production. It provide
the facility to recover the complex situation in proper manner.
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Identify the potential benefits and drawback of Tesco of investing in information technology.
Information technology is based on the modern technique that always support for retailer
to increase productivity and profitability in global marketplace. It mainly consist of the hardware
and networks, information technology always makes use of various other resources through
television (Shulzhytskaya, 2019). IT is to provide the better facilities to handle the business
activities but there are certain advantage and drawback in the organization.
Benefits
It can be identified the various advantage or benefits of information technology in business.
IT improve communication
Email changed the way in which employee interact with one person to another at
workplace. When Tesco is investing a lot of money for implement concept of information
technology within organization. Email is a type of medium for convey online message and
response to digital communication (Suriyantphupha and Bourlakis, 2019). It is much faster than
sending someone. In Tesco, employee can get a positive response from colleagues within
matters. Information technology provide the benefits to store data set on cloud server and then
after staff member can easily access information. In retailer enterprise, communication is
important function that needs to resolve issue of potential customer (Hassan, Parvez and Ekiz,
2019). Therefore, it would be required to handle the business task in proper manner.
IT protect information
It will always place for tradition file in retail industry. However, it may not be best way
when it comes to sensitive information. Tesco provide the online facilities for customer where
they can purchase item through online site. Many consumer can use credit card to buy a product
where IT system automatically record information of client (Bheekharry and Singh, 2019).
Therefore, it is necessary step to maintain privacy and security in proper manner. It is the best
way to invest IT with encryption and consider other security aspects that keep unauthorised eyes
from viewing.
Drawback
There are different drawback of investing information technology in the organization.
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Increasing data regulations
Information or data is the biggest factor in business which needs to protect in ethical
manner. Tesco always investing IT system but involves protecting client data. Sometimes, it
heavily regulated the retailer sector because every day business activities. It is collecting of
gathering large amount of data on regular basis (Suriyantphupha and Bourlakis, 2019). But it
may affect on the business process because some regulation will not support to maintain the
sensitive information of people. It has been increased the security issues due to lack of
encryption. On regular basis, it would require to maintain daily otherwise, it has chances of
unauthorised access. It is directly targeted the sensitive information of potential client.
Discuss about the different stages of system development life cycle
System development life cycle is based on the process that can be used by developer. It
can be slightly technique that comes to coding different part of project. It is conceptual model
that mainly used in project management in order to describe the different stages (Hassan, Parvez
and Ekiz, 2019). SDLC can apply in both technical as well as non-technical system. in some
situation, A system is IT technique such as software as well as hardware (Suriyantphupha and
Bourlakis, 2019). Project manager focus on the process of SDLC along with development team,
software engineer and end-users. In another, it is a type of project development life cycle which
always supports for performing different task in step by step manner.
Planning and analysis: it is initial step of system life cycle where evaluated the process
for identifying the essential resources for project development. In order to identify the
deficiencies that can be done by interacting with people (Awadari and Kanwal, 2019). In another
way, consulting with other support personnel. Afterwards, it can be defined the new system
requirement and particular to the existing system. It must be addressed with specific proposal for
improving the current system or upgrade in proper manner.
Designing: it is an important stage when proposed to design the new system. Initially, it is
require to make an effective plan for developing physical construction, operating system,
security issues and programming (Awadari and Kanwal, 2019). In this phase, it will be used
programming language to be coding. In order to create an effective design structure, layout
through programming.
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Development: it is another step when including new components and program which
providing the better new system. User can use system that easily access information or data. It is
development step where design overall functionality (Awadari and Kanwal, 2019).
Testing: when overall new system development after implementing testing process to test
threats, bugs (Hassan, Parvez and Ekiz, 2019). Testing is performed by quality assurance where
team may including the system integration.
CONCLUSION
From the above assignment it has been concluded that information technology plays a
vital role in success or failure of an organization. However, there are some social and ethical
issues that pertain while running a business. It is extremely important to focus upon these issues
so that IT can be implemented within business in an appropriate manner. It has been analysed
that there are various kinds of networking technologies that can be used by business
organizations in different ways. These technologies also help in increasing overall network
security of the organization and growth of ICT within the organization as well as for the growth
of the organization. Furthermore, the assignment is described the importance role of IT in retail
enterprise in term of success as well as failure. In order to find out the ethical and social issues
which automatically pertain to running business efficiently.
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REFERENCES
Book and Journals
Chakraborty, P. and Telgote, A.M., 2019. Performance Analysis of LAN, MAN, WAN, and
WLAN Topologies for VoIP Services Using OPNET Modeler. In Computing,
Communication and Signal Processing (pp. 185-196). Springer, Singapore.
Hanes, D., and et. al., 2017. IoT fundamentals: Networking technologies, protocols, and use
cases for the internet of things. Cisco Press.
Isaac, O., and et. al., 2018. Integrating user satisfaction and performance impact with technology
acceptance model (TAM) to examine the internet usage within organizations in
Yemen. Asian Journal of Information Technology. 17(1). pp.60-78.
Stein, E., Taskaeva, N. and Chibisova, E., 2016. Methodological aspects of the creation of
information-and-technological complexes within the investment projects as a factor of the
urban territory development. Procedia Engineering. 165. pp.1410-1416.
Rodríguez, R., Molina-Castillo, F.J. and Svensson, G., 2020. The mediating role of
organizational complexity between enterprise resource planning and business model
innovation. Industrial Marketing Management. 84. pp.328-341.
Saha, R., Cerchione, R. and Dahiya, R., 2020. Effect of ethical leadership and corporate social
responsibility on firm performance: A systematic review. Corporate Social Responsibility
and Environmental Management. 27(2). pp.409-429.
Pattinson, S. and Wanjiru, R., 2020. Supporting sustainable, equitable growth in sub-Saharan
Africa: a conceptual model for enabling social enterprise governance. In Research
Handbook on Entrepreneurship in Emerging Economies. Edward Elgar Publishing.
Hassan, A., Parvez, M. and Ekiz, E., 2019, July. Technology Induced Loyalty Schemes for
Customer Relationship Management and Positive Purchase Decisions. In 9th ADVANCES
IN HOSPITALITY AND TOURISM MARKETING AND MANAGEMENT CONFERENCE
PROCEEDINGS (p. 241).
Sparks, L., 2019. Tesco: how supply chain strategy supports retail success. The Business &
Management Collection.
Awadari, A.C. and Kanwal, S., 2019. Employee participation in organizational change: A case of
Tesco PLC. International Journal of Financial, Accounting, and Management. 1(2). pp.91-
99.
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Shulzhytskaya, K., 2019. Analysis and evaluation of storage technologies and methods of order
picking in commercial and service enterprises (Doctoral dissertation, Katedra
Innowacyjności i Przedsiębiorczości).
Suriyantphupha, P. and Bourlakis, M., 2019. Information Technology in a Traditional Retail
Supply Chain: A Structured Literature Review. Projectics/Proyectica/Projectique. (1).
pp.89-102.
Bheekharry, N.D. and Singh, U.G., 2019. Integrating Information Technology and Marketing for
Better Customer Value. In Information Systems Design and Intelligent Applications (pp. 1-
9). Springer, Singapore.
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