Impact of Information Technology on TESCO: A Comprehensive Report

This report provides a comprehensive analysis of the role of Information Technology (IT) in the success of TESCO, a UK-based multinational retailer. It examines how IT, including digital marketing, online shopping, and data analytics, contributes to key business functions such as decision-making, customer communication, collaboration, and advertising. The report also delves into the ethical and social issues associated with IT in business, such as hacking, lack of security and privacy, cyberbullying, and communication breakdown. Furthermore, it identifies and differentiates various networking technologies, including LAN, MAN, and WAN, and discusses the importance of the internet and intranet for business operations. Finally, the report defines the stages of the system development life cycle, providing a holistic view of IT's impact on TESCO's operations and strategic objectives. The report concludes with potential benefits and drawbacks for an organization while investing in IT.

INTRODUCTION TO
INFORMATION
TECHNOLOGY

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Analyse the role of information technology in the success of business organisation.................1
Different social and ethical issues that concerns running business.............................................2
Identification and difference in various type of networking technology....................................4
Importance of intranet and internet in business..........................................................................5
Define various stages of system development life cycle............................................................6
ANALYSIS AND DISCUSSION...................................................................................................7
Potential benefits and drawbacks for an organisation while investing in IT..............................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

ABSTRACT
This report is based on TESCO which is a UK based multinational organisation dealing
in retail sector. This report covers the role of information technology in success of business due
to their activities like advertising, promotions, assisting in taking right decisions etc. Beside this,
different ethical and social issues like hacking, lack of privacy etc. can disrupt the mage of
company in a negative way. Different networking technologies like LAN, WAN and MAN can
be used by TESCO to interact and communicate with customers and business partners. Intranet
and internet benefits in business success of TESCO. Information regarding system development
life cycle helps in developing a robust system which increases organisational productivity.

INTRODUCTION
Information technology is referred to the maintenance, development and use of software,
networks & systems so that distribution or processing of data can take place in a proper manner.
In context with information technology, data is described as facts, information and statistics
which is collected for the purpose of analysis or storage (Nijssen, Schepers and Belanche, 2016).
It is the implementation and design of computer networks so that data communication and
processing can take place efficiently. This assignment is written in context with TESCO which is
a UK based multinational retailer dealing in general merchandise and groceries. Company is
headquartered in Hertfordshire, England. This report will cover role of information technology in
failure or success of company along with different ethical and social issues related with
technology. Various kind of networking technology and role of internet & intranet in business is
mentioned. At last, stages related with system development life cycle are discussed in a generic
manner.
MAIN BODY
Analyse the role of information technology in the success of business organisation
Information technology has changed the lives of business organisations and people in a
considerable manner. In present time, digital marketing, online shopping, cloud computing,
social networking are some examples which defines the role of IT in the basic life of people.
Success of each organisation depends upon different factors. One of these factor is the use of
right technology to perform business activities. In context with TESCO, role of IT in the success
and profitability of company is discussed beneath:
 Right decision making: Accuracy and speed helps in taking right decision within time.
Each business organisation is needed to perform a comprehensive market research so that
they can take accurate and strategically beneficial decisions. With the help of Information
technology tools such as Big data, Microsoft CRM dynamics, Google analytics important
information related with customers and market can be gathered that will help in taking
right decisions in a timely manner. This will benefits TESCO in gaining advantage over
rivals by offering required products to their customer base (Bruss and Leuchs, 2019).
 Communication with customers: Information technology allows a company to interact
and communicate with their customers in an effective manner. In current business
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environment, it is essential for a business persons to interact with their clients in a clear
and quick manner. With the help of online platforms like social media and websites
which are parts of IT helps people to acknowledge about the services or products offered
by a company. In case of TESCO, IT benefits the company in creating a positive and
strong image in the minds of customers about their products. Due to this, sales and
revenues of company enhances in accordance with expected outcomes.
 Collaboration opportunities: Other than offering wide customer base and high
profitability, information technology benefits TESCO in identifying their potential
collaboration partners so that business activities can be promoted to diversified areas.
With the help of collaboration, TESCO will be able to gain large quantity of resources,
capital, access to new and innovative technology to perform their business activities.
Search engines like Yahoo, Bingo that are part of IT benefits TESCO in identifying those
firms and business owners that will like to invest in their company. By using various
tools, database and software TESCO can partnership with other companies for business
work (Bruss and Leuchs, 2019).
 Promotion and advertising: Information technology is a boon for business firms as it
benefits them in promoting and advertising their services or goods to large population
without taking longer time. This will benefits TESCO in gaining wide attention from
customers so that high sales can be earned. Due to increased sales, company will be able
to earn high profits and revenues that will allow them to compete with rivals in a strategic
manner. Different IT tools that can be used by concerned company to promote their
services or products are Facebook, Instagram, Twitter etc. Manager in TESCO can use
these online platforms to target their existing and potential customers by describing the
effectiveness of their products.
Different social and ethical issues that concerns running business
Ethical issues are defined as those problems or situations in which an organisation is
needed to select a particular option out of two available choices. Choosing right choice is
considered as ethical whereas selecting other alternative will be treated unethical. Social issues
are those problems that can impacts large number of people in society. These social issues are
the consequences of those aspects that extend beyond the control of an individual. These social
and ethical issues can reduce the sales and profits of company due to which it will be difficult for
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company to achieve their aims and objectives in a proper manner. In context with TESCO, some
social and ethical issues are mentioned that can impact business organisation in a considerable
manner are mentioned below:
Ethical issues concerning business activities of TESCO
 Hacking: This is an ethical crime where a professional programmer of computer steals
information and data presents on other systems without any permission or authorisation.
Organisations hacks the importation and content of other organisations so that their
business strategies can be acknowledge and an effective solution is generated to
overcome those strategies. In context with TESCO, if company will hack the data,
content and information of their competitors then this will hinder the positive image of
company in marketplace (Pantano, Priporas and Baier, 2017). This will results in loss of
reputation, sales, revenues and profits for company due to which achieving targets and
objectives of company will not be possible. Also, the company or person whose data is
hacked can file a case against TESCO which will results in payment of high fines and
penalties.
 Lack of security and privacy: While interacting or working in an organisation,
customers and workforce of company is needed to share their sensitive information like
their account number, card number etc. with company. It is the responsibility of manager
in TESCO to provide security to the data and information of consumers & employees so
that they can trust organisation for share their details without any worry. If company will
not offer privacy then it will be a big ethical crime as any harmful person can steal their
information for personal benefits. This will results in lack of trust in the minds of people
for TESCO due to which their sales and revenues will decrease.
Social issues that concerns business operations of TESCO
 Cyber bulling: TESCO can adopt information technology to manage their business and
other cornered activities in a proper manner. But use of IT has made defamation or
harassment of people over internet easier. Due to this, people feel reluctant is sharing
their valuable information with strangers whether it is an organisation or a person. If
employees of TESCO will not secure the information of people properly or harass them
by misusing their information. It will be a big social issue that can damage the reputation
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of company both at national and international level. Due to this, customers will shift their
preference towards the products of other companies (Shladover, 2018).
 Communication breakdown: Face to face interaction with customers is the best way by
which company can acknowledge customers about their services or products in a detailed
manner. But due to the advancement of internet and information technology, people do
not want to waste their time in offline shopping and acknowledge about services or
products of company via online platforms. Due to this, it became difficult for company to
have real interaction with customers which results in communication breakdown (Waser,
2012).
Identification and difference in various type of networking technology
Network technology is defined as a technology which enables an individual to
communicate with other individuals with the help of computer and other connected electric
devices. For example, cable, wireless technologies, modem, intranet are networking
technologies. Basically there are three types of networking technology which is MAN, LAN and
WAN that are mentioned below:
 LAN: Local area network has connectivity to smaller area and coverage. It is a privately
owned network which covers a limited geographical area like school, home, buildings
etc. LAN is basically used to connect computer systems and other networking devices so
that sharing of resources and interaction can takes place in a desired manner. Size of
LAN network is very small. For example, TESCO can have a wireless or wired LAN
network to connect local networking devices like servers and printers to connect internet.
 MAN: It is abbreviated as metropolitan area network which is a relatively new kind of
network. MAN is a bigger network technology then LAN but smaller than WAN
technology. It can covers the area of single city and in rare case it can exceed beyond the
limit of 100 KM. This network technology can be used by big companies like TESCO so
that its various branches within city can be interconnected in a proper manner (Schwalbe,
2015).
 WAN: It is abbreviated as wide area network which is basically an interconnection of
hundreds of LAN so that a wide area can be covered that will benefits in proper
interaction and communication. WAN is capable to connect LANs that can be on
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opposite side of building or across a country and continent. Data communication rate of
LAN is slow due to the large distance coverage it posses.
Difference between networking technologies
LAN MAN WAN
 Local area network is
limited to a house,
school, office, hospital
etc.
 Metropolitan area
network is limited
within a city, town or
small region.
 Wide area network has
unlimited connectivity
range which is up to a
country or an entire
continent.
 Cost required to setup
LAN is low as it needs
less hardware
 Set up cost for MAN is
higher than LAN due
to increment in
coverage range
 Setting up WAN
network is most
expensive as large
number of hardware
are needed
 Bandwidth is very less  Bandwidth of MAN is
higher in comparison
with LAN
 WAN has highest
bandwidth
 Data transmission
range of LAN is very
low i.e. up to 1 Km.
 Transmission range for
MAN is high than
LAN i.e. around 100
Km.
 WAN has highest data
transmission range
which is beyond 100
Km.
Importance of intranet and internet in business
Internet is referred to a global computer network that provide various communication
facilities with the assistance of interaction and communication protocols. To perform their
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business operations desirably, TESCO is required to increase usage of internet and associated
faculties (Okumus, 2013).
Importance of internet in business
It is the cheapest and fastest way by which retail firms like TESCO can interact with
their customer base. Internet assists in carrying out online market research due to which buying
pattern and habits of customers can be identified. Internet will helps the concerned company in
reducing operational and processing costs, eliminating waste procedures in a fast manner. With
the help of social networks, E-mails, instant messaging, communication among workforce is
became easy that results in timely completion of work.
Intranet and its use in business
Intranet is defined to an intrinsic network that only allows the users i.e. mainly employees
of an organisation to have access. Intranet works in accordance with internet technology and
offers similar benefits to business firms but at low level. Organisations like TESCO can take help
of Intranet to distribute and share their data or information, business application, projects and
other processes in an efficient manner (Magrabi and et. al., 2013). With the help of intranet,
digital communication needs of company will be satisfied in a desired manner, also, intranet will
offers a secure place to company so that they can develop, process and store their information in
a desired manner. Replacement of manual working with intranet will benefits TESCO in
enhancing organisational productivity of company. Due to this, customers will be satisfied more
properly and company will acquire high returns.
Define various stages of system development life cycle
System development life cycle is defined as a framework which include the steps of
software development at each phase. It involves a detailed plan for maintaining, deploying and
building the software in an appropriate manner. SDLC aims to describe the complete
development cycle. There are different stages associated with system development life cycle
which are mentioned below:
 Requirement gathering and analysis: In this phase, all relevant and useful information
is gathered from the customers so that an effective product according to the expectation
of customers can be developed. For example, if TESCO wants to develop an application
so that customers can do payments easily, manager will be needed to collect the opinion
of customers about this plan. After information collection, analysis is performed.
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 Design: This is the second phase in which collected information is used as an input and a
specific software architecture is used to implement system development (Laudon and
Laudon, 2015).
 Implementation or coding: In this stage, coding and implementation will takes place
after system designing. Coding will helps in creating a software design which will further
transformed into source code. Different components of newly developed software will be
implemented in this phase.
 Testing: This is the forth stage which takes place when the coding is completed and the
modules are prepared for the testing purpose. During this phase, the developed software
will be tested in a detailed ,manner and the defects which are found will be given to
developers. These developers will carry out modifications as per requirements. Testing
will continue until, an payment application satisfying the expectation of customers will
not be developed by TESCO (Held, 2016).
 Deployment: After testing the product, it is deployed for the the first use in production
environment to acknowledge if it can satisfy the needs and demands of customers or not.
In case demands are not satisfied, process stated above are repeated again.
 Maintenance: It is the last stage of system development life cycle in which periodic
maintenance to the software is given so that high outcomes can be achieved properly.
This app will benefits TESCO in enhancing the customer experience during shopping.
ANALYSIS AND DISCUSSION
Potential benefits and drawbacks for an organisation while investing in IT
Benefits of investing in IT
There are different advantages which can be enjoyed by TESCO due to their investment
in IT. In this context, some advantages are mentioned below:
 Major benefit of investment in IT is that it streamlines the interaction and communication
procedure at external and internal level. It will benefits TESCO in performing activities
like recruiting, communicating, retaining and leveraging in a simplified manner (Devaraj
and Kohli, 2013).
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 Information technology is going to benefit TESCO in facilitating the process of strategic
thinking and knowledge transfer so that organisation can develop efficient strategies.
These strategies will benefits in gaining advantage over rival companies.
Drawbacks of Investing in IT
IT offers different benefits to business organisations but there are certain drawbacks
while investing in information technology. In context with TESCO, these disadvantages are
discussed below:
 Implementation of information technology require high amount of capital. Beside this,
company will have to spend high expenses in training workforce about the use of
technology for business purpose. Due to this, costs and expenses of TESCO will rise that
will reduce profit margins (Buabeng-Andoh, 2012).
 Maintenance of a robust IT system is a complex process that can be a big threat for the
effectiveness of organisation. Reason is that if information and sensitive data of people
will not be managed properly, their trust for TESCO will break. It will results in loss of
revenues and sales for company.
CONCLUSION
From above mentioned report, it is summarised that IT plays a vital role in the failure and
success of an business organisation. If information technology can be used in a proper manner, it
will helps the company in gaining attention of millions of customers at a single time. This will
helps the company in increasing their sales and revenues in a visible manner. There are various
ethical and social issues related with technology like lack of security, privacy, cyber bulling
which can impacts business organisations in a considerable manner. Different network
technologies benefits in connecting organisations and customers at both national and
international level. Intranet and internet assists in achieving high business growth. Different
stages of system development life cycle allows the company to develop a strong system to
perform business activities.
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REFERENCES
Books and Journals
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and communication technology into teaching: A review of the literature. International
Journal of Education and Development using ICT. 8(1).
Devaraj, S., Ow, T. T. and Kohli, R., 2013. Examining the impact of information technology and
patient flow on healthcare performance: A Theory of Swift and Even Flow (TSEF)
perspective. Journal of Operations Management. 31(4). pp.181-192.
Held, G., 2016. Introduction to light emitting diode technology and applications. Auerbach
Publications.
Laudon, K. C. and Laudon, J. P., 2015. Management Information Systems: Managing the Digital
Firm Plus MyMISLab with Pearson eText--Access Card Package. Prentice Hall Press.
Magrabi, F. and et. al., 2013. A comparative review of patient safety initiatives for national
health information technology. International journal of medical informatics. 82(5).
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Okumus, F., 2013. Facilitating knowledge management through information technology in
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Schwalbe, K., 2015. Information technology project management. Cengage Learning.
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Shladover, S. E., 2018. Connected and automated vehicle systems: Introduction and overview.
Journal of Intelligent Transportation Systems. 22(3). pp.190-200.
Pantano, E., Priporas, C. V. and Baier, D., 2017. Guest editors’ introduction: smart interaction
with consumers: from co-creation to smart partnership. International Journal of
Electronic Commerce. 21(4). pp.449-453.
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