Analysis of Information Systems and ERP for Business Success

This report provides a comprehensive analysis of information systems and Enterprise Resource Planning (ERP) systems, with a specific focus on their application within Tesco. The study begins by defining information systems and categorizing different types, including transaction processing systems, management information systems, decision support systems, and executive information systems, detailing their functions and examples. The main body of the report then delves into ERP systems, explaining their features, advantages, and implementation within Tesco. The report highlights the benefits of ERP systems in real-life business scenarios, such as increased efficiency, cost reduction, improved decision-making, and effective inventory management. It also provides recommendations for Tesco to further optimize its information systems for enhanced business performance. The report concludes with a summary of the key findings and the importance of information systems in the business environment.

Managing Information
and Technology
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Categories of information system................................................................................................3
ERP system..................................................................................................................................5
Benefits of ERP systems in a real life business...........................................................................6
CONCLUSION................................................................................................................................7
RECOMMENDATIONS.................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
Information system refers a combination of hardware, software and telecommunication
networks which people build and makes an effective used to filter, collect, creating and
distributing data (Link and et.al., 2017). This study is based on Tesco which is a British
multinational general merchandize and groceries retailer. Headquarter of this company is in
England, UK. It was founded in the year of 1919 by Jack Cohen. Its shops are in 7 countries and
provide qualitative food products, furniture, toys, electronics and others. This study is going to
show importance of different types of information systems and uses of them. It will also show
ways, roles and examples of different categories of information systems which help people n
identifying the best one. Further, it will also show enterprise resources planning systems which
helps organizations to manage their business functions in an efficient manner. There are several
advantages and reasons of using enterprise resource planning systems which improves
efficiency, customer services, quality of data and others. In real life business like retailers and
others, both systems play an important role.
The main aim of conducting this study is to analyse importance of information system
and supporting Tesco in identifying the best type of system by which they can manage their
business functions effectively. By evaluating and identifying both advantages and disadvantages
of ERP systems and information systems in order to identify the best one and help companies in
accomplishing their goals. Enterprise resource planning system play a vital role in managing as
well as controlling organization wide information steams. One of the main objective if
developing and discussing more about different types of information systems and enterprise
resource planning systems are to provide detailed or in depth analysis to companies as how they
can increase data collection as well as dissemination capabilities of their business by making an
effective use of ERP systems.
MAIN BODY
Categories of information system
Information systems are interrelated components such as hardware, software which
works together to store, process, collect and distribute informations or data in order to make an
effective decision, controlling and analysing in an organization (Leroux, 2018). There are
different types and categories of information system like transaction processing system,
management information systems, decision support system and online analytical processing or
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executive information systems. All types of information systems are discussed below in a
detailed manner such as:
Transaction processing systems: These systems are known as operational level systems
at bottom of a pyramid. These types of systems are being operated by small level of
organizations like shop floor workers or front line workers. The main aim of using this system by
shop floor workers is to provide the key data which are required to support management of
operations. This collected data are than being obtained via either automated or semi-automated
tracking of main or basic day to day transactions. In the context of data processing, it can be said
that it plays several roles such as: it produces informations for other systems, they are efficient
oriented, and they are used for supervisory levels. Some examples of these types of systems are:
stock control systems, payroll systems and systems for payments.
Management information systems: It includes and covers all those information systems
which are mainly found in commercial organizations. These systems are at management level
system that is why they are considered as management information systems as they are being
used by middle managers in order to make them sure the smooth running of the company. These
systems provide mainly highly structured and well-developed informations in order to support
manager of an organization to evaluate their organizational performance. They evaluate
performance and measure effectiveness of their organizational performance by comparing
current outputs with previous outputs with these systems (Yulianeu and et.al., 2019). The main
role of management information systems is to support relatively structured decisions and deal
with only present and past and not with the future. Some examples include: inventory control
system, HRM system and sales management system. Tesco is one of the retailer which makes an
effective use of these inventory control and sales management systems.
Decision support systems: These systems are knowledge based systems which are
mainly used by senior managers which facilitates creation of knowledge as well as allowing
integration of knowledge into the company. The main aim of using these types of systems is to
analyse previous or existing structured informations and support managers of an organization to
estimate and analyse effects of their decision-making into the future. With the help of these types
of decision support systems, companies including Tesco can solve all problems related to
structure. They also offer access to analytical tools, data bases and can also allow them to
exchange and share informations within an organization. Some main roles of these systems
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include. It has capacity of analytical and are mainly concerned with the estimating about the
future. Some examples include: spreadsheet models, group decision support systems etc.
Executive information systems: They are at strategic level systems. It is one of the main
and topmost system which are being used by senior managers as well as executives. These
systems help senior managers in analysing the environment in which they operate and wants to
operate in an efficient manner. One of the main aim of using these types of systems is planning
appropriately and identification of long term trends (Amuna, Al Shobaki and Naser, 2017). But it
can also be said that informations and data which are being stored and gained from these systems
are not well-structured as they are weakly structured. The main objective of designing such kind
of systems is to decrease needs of intermediaries and help executives to operate directly. These
are mainly concerned with ease of use and have flexibility.
ERP system
ERP is known as enterprise resource planning or software solutions which are available
in the market and are being used by organizations to the great extent. ERP software is one of the
most used software solution which all sized of companies like to purchase. The main thing which
differ and make business success is the way of using and implementation. With the help of some
common features of ERP systems, it can be analysed that why it is important and reasons of
using it by Tesco such as: Accounting, human resource, manufacturing, inventory management
and customer relation management (ERP System of Tesco, 2020).
In addition, Tesco also stated that effective relationship with customers which it has is
only because of implementing ERP system as it allows it to maintain database related to business
processes. The best way of using this and how it works is being discussed with an example: For
example: This supply chain software solution receives customers' orders and then send it
automatically to distribution centre. After getting all informations, this centre complete orders in
as soon as it can complete (Almajali and Tarhini, 2016). So, overall it can be said that enterprise
resource planning system uses centralized database for several business processes with the main
aim to decrease manual labour as well as simplifying previous business workflows. So, it can be
said that ERP system does not only make operations and business activities easy but also
decrease operational and labour cost. There are some reasons and functions which are being
completed by ERP system by Tesco such as:
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Accounting: This module in ERP system help Tesco in saving their time which accountants take
on completing tasks. Some tedious tasks of accounting which is being done by ERP system
include: Input receipt informations manually from different types of reports. But now with the
help of Enterprise resource planning software solutions, Tesco can send invoices to clients
directly or automatically (Venkatraman and Fahd, 2016).
Customer relationship management: Customer relationship management tools allow Tesco in
analysing purchasing history as well as browsing history in order to know different types of
needs. By knowing needs with the help of analysing history they can make strategies accordingly
and can satisfy them. It directly helps them out in improving relationship with customers and
retain them within an organization for the long run.
So, from the above discussed features and reasons of Tesco of developing and using ERP
system, it can be said that it plays an important role nowadays (Heredia-Calzado and Duréndez,
2019).
Benefits of ERP systems in a real life business
In the context of ERP systems, it can be said that it has been proven beneficial and
helpful for several companies. Tesco Plc is one of them who stated that with the help of ERP
(enterprise resource planning) systems they can integrate different components of their business.
It also stated that making an effective use of ERP systems make them able to gain captivity.
There are several features of ERP systems which has made beneficial to Tesco such as:
One of the main feature of ERP system is a shared database which helps Tesco's multiple
functions which are being performed and operated by different units of it by communicating in
an efficient manner (Jayawickrama, Liu and Smith, 2016). With its help, Tesco is identifying
needs of retail customers and trying to satisfy them accordingly and it is one of the main key of
its success. Some main and top 5 benefits of enterprise resource planning systems are:
Efficiency: With the help of ERP systems, manager can decrease red time and can also
make sure that if employees are working on the right job and are completing their working hours
or not. So, it can increase efficiency.
Decrease cost: A well-developed ERP systems allow companies to reduce overhead
costs by streamlining processes in which a human power and job goes through starting to
completion.
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Better decisions: It is stated that ERP systems have shop floor visibility which allows
manager to keep an eye on all operations as well as aspects of business processes, It directly
helps them out in making better decisions (Sumner, 2018).
Inventory management: With the help of ERP systems, each component of products are
assigned a barcode which helps users in identifying and to see that where every piece come from.
It allows them in managing inventory in a very effective manner.
CONCLUSION
From the above study, it has been summarized that information systems played a vital
role in a real business and different sectors of organizations. They allowed companies in
processing of data from inputs given by the company in order to generate informations which are
useful for them to manage operations effectively. It makes their informations accurate and also
allow them to use all that data in new different ways. Further, it has shown different types of
information systems such as: executive information, management information, decision
information systems. All these systems are being used for different purpose and as per the size
and objectives of an organization. By developing and applying appropriate information systems,
companies made themselves beneficial and able to accomplish goals by managing operations and
improving performance. Lastly, this study, discussed effectiveness of enterprise resource
planning systems which are being used by all sectors of organization to the great extent. It has
helped them out in increasing overall efficiency of performance and making effective decision.
RECOMMENDATIONS
On the basis of above discussion, it is identified that Tesco mainly focuses on
management information type of system in order to manage inventory, HRM system and sales
management. So, it can be recommended to the company that it should focus and invest in
decision support system in order to implement them and support its staff in making the best
decision regarding company' growth.
In addition, it is also analysed that Tesco is making an effective use of ERP system which
is helping it out in providing needed items and products to customers but ERP systems has
created some problems for Tesco. One of the main reason is identified is lack of senior
management support as well as inefficient training to staff about ways of operating this system.
So, in this context, it can be recommended that company should invest in training to staff and
make them aware about problems and ways to solve in regard to information and ERP systems.
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REFERENCES
Books and journals
Almajali, D.A. and Tarhini, A., 2016. Antecedents of ERP systems implementation success: a
study on Jordanian healthcare sector. Journal of Enterprise Information Management.
Amuna, Y.M.A., Al Shobaki, M.J. and Naser, S.S.A., 2017. The Role of Knowledge-Based
Computerized Management Information Systems in the Administrative Decision-
Making Process.
Heredia-Calzado, M. and Duréndez, A., 2019. The influence of knowledge management and
professionalization on the use of ERP systems and its effect on the competitive
advantages of SMEs. Enterprise Information Systems. 13(9). pp.1245-1274.
Jayawickrama, U., Liu, S. and Smith, M.H., 2016. Empirical evidence of an integrative
knowledge competence framework for ERP systems implementation in UK
industries. Computers in Industry. 82. pp.205-223.
Leroux, P., 2018. Categories of information. In Clinical Effectiveness in Psychotherapy and
Mental Health (pp. 97-104). Routledge.
Link, D.F. and et.al., 2017. Management techniques for non-traditional network and information
system topologies. U.S. Patent 9,537,731.
Sumner, M., 2018. ERP Project Retrospectives—55 Enterprise Systems: Evaluating Project
Success, Lessons Learned, and Business Outcomes. Midwest Association for
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Venkatraman, S. and Fahd, K., 2016. Challenges and success factors of ERP systems in
Australian SMEs. Systems. 4(2). p.20.
Yulianeu, A. and et.al., 2019. Business Intelligence Applications In Government: Executive
Information System At Civil Servant Agency (NCSA) In Indonesia.
Online
ERP System of Tesco. 2020. [Online] Available through:
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