The Role of Information Technology: A Case Study of Asda's Business

This report provides a comprehensive analysis of the role of Information Technology (IT) in business, using Asda, a major UK supermarket chain, as a case study. It explores how IT impacts Asda's operations, productivity, and market strategies. The report delves into the ethical and social issues arising from IT implementation, such as data security, privacy concerns, and the impact on employees and customer service. It also examines different networking technologies used by businesses, including Local Area Networks (LANs), Wireless LANs, Metropolitan Area Networks (MANs), Wide Area Networks (WANs), Storage Area Networks (SANs), and Enterprise Private Networking. Furthermore, the report highlights the importance of social media for business organizations in terms of marketing, customer engagement, and brand awareness. The report also touches upon the stages of the System Development Life Cycle (SDLC). Overall, the report aims to provide insights into the challenges and opportunities of IT in the retail industry, focusing on Asda's experience and offering a broad understanding of the subject.

INTRODUCTION TO
INFORMATION
TECHNOLOGY

ABSTRACT
Information technology is very wide concept which helps business to increase its productivity
with various methods and techniques. Information technology helps to solve all the ethical and
social issues which is presented in this report. This also provides a brief understanding about all
the market factors to formulate effective strategies to compete with competitors. IT help to
motivate employees and regulate business culture within business organization.
TABLE OF CONTENT
INTRODUCTION...........................................................................................................................1
Literature Review.............................................................................................................................1
Role of Information Technology.................................................................................................1
Ethical and Social Issues of Business Organization....................................................................2
Different Types of Networking Technologies For Business Organization.................................4
Importance of Social Media For Business Organization.............................................................5
Stages of System Development Life Cycle (SDLC)....................................................................6
Analysis and Discussion..................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Information technology is the use of computers which provide effective communication
throughout the business organization and it is also used for sending and receiving of data from
one geographical location to another easily. Information technology is very essential for business
organization as it helps to gather, process, store and present the information making effective
decision and maintaining the productivity.
In this report, about a discussion is made on role of Information technology in
organization, where case study is taken of Asda. This retail firm is one of the largest supermarket
chain of UK, which provide groceries and other household products to its customers. Company
was established in 1949 in England and it is the second largest supermarket chain in UK with
annual gross revenue of around 21 million euros. The main objective of this report is to identify
the importance of information technology and challenges which are faced by Asda to increase its
productivity. This report will focus on role of IT in success of Asda and its ethical and social
issues due to technology. This will also discuss different types of network technology and
importance of social media with effective explanation about system development life cycle.
Literature Review
Role of Information Technology
According to Hemrungrote, Jakkaew and Assawaboonmee, (2017) information
technology helps to maintain the operations of retail industry as it provides information which
helps to increase productivity. Asda is using information system which helps company to
manage all the operations which increase growth of company. IT provides business expansion
and effective study about all market factors which are evaluated and formulate strategic planning
according to resources available to ensure efficiency of marketplace. Its increases the risk
bearing capacity of Asda new opportunities. This firm mainly concern to analyse the new market
opportunity with help of information system as it also deceases the cost and tie to process the
information on the system. Asda is using information technology to determine the strategies and
policies of competitors like Tesco, M&S and more, which are effective in taking better decisions
to achieve competitive advantages. Asda is dealing with many products and it is essential for
company to analyse all product availability in stores for tailoring demands of customers on time.
Information technology in this regard, helps to maintain all data about stock on system which
saves time and also reorder products which are not available immediately. Sales and purchase
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record with information management system help to integrate and generate effective data. With
help of inventory management company reduces its cost and increases its profitability.
As per the view of Lugmayr and Grueblbauer (2017) information technology helps Asda
to understand behavioural pattern of customers and make effective strategies for increase their
satisfaction. Asda is also producing its goods and modifying its services according to needs and
wants of customers. Information technologies is also responsible to maintain and increase
cultural values with analysing all the information about employees to formulate techniques
which help to integrate them with company's objectives. Asda is also using information
technology to identify all the factors which impact the demand and supply of products and
services of customers of company. This help to determine the price by analysing cost of
operations and cost of production. Information technology help to identify product prices of
competitors which impact the sales of Asda this also help company to be more effective and
increase its efficiency. Asda is also using Customer relationship management system to increase
customer services. Company also used inventory management system which helps to increase
the information about all the good availability and products sold to focus on purchase.
Ethical and Social Issues of Business Organization
In accordance with Waser and et.al (2016) Asda is facing challenges in its daily operation
of business and need to analyse all the issues and problems to formulate effective strategies and
policies to reduce the issues related to technology. As IT is also very essential in business
operation and provide smooth working but with various ethical challenges it reduces the
efficiency of business. Asda is very effective in increasing its efficiency due to lack of
information technology In company. Company also determines that with the increased usage of
information technology data protection have compromised due to increase in cyber crimes. With
the help of internet hacking and data theft is very easy to perform. Which creates ethical issues
for Asda to use new technology with high risk or continue old traditional way to save data which
deceases productivity of business organization. Viruses and fake IP addresses can reduce the
security of data and it is very important to secure all information from criminal as it can also
decrease market position of Asda. Privacy issues is also a very big concern as cyber criminal can
also use the private content to access online websites of customers, and they can also enter into
the personal computers of customers to use their bank details to snoop all the money from the
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customer's account. Asda is also loosing its brand value due to increase of technology as many
duplicate websites are made t sell their products online with poor quality this also deceases the
sales of company.
As per the opinion of Nieles, Dempsey and Pillitteri (2017) Asda also faced issues in
making decision as it is very difficult to survive in competitive market without technology and
provide effective solutions for the problems. This give rise to ethical dilemma and company have
to choose between two or more alternatives which are against the nature of business to expand
and grow in different markets. Technology have also increased the knowledge of Employees of
Asda as they are ,ore aware about all the laws and equality policies of government. Employees in
company have the tendency to discriminate their co-workers on the basis on gender and power
which generates ethical issues. Company have to formulate effective policies to reduce this
issues and provide effective and healthy work environment but it will also discourage the
superiors and males in the organization as they do not have knowledge to work in that
environment which also can decrease the efficiency of business organization. With increase in
technology it also deceases the efficiency of Asda to increase profit margins and compete with
competitors.
Lloyd (2017) said that Technology also increase hate and criminal activity and deceases
the customer satisfaction. Increase of competition and increased education and awareness of
customers has also increased the expectation of them to get after sales services effectively and on
time. With the increase in technology Asda is facing issues in this daily operation as the
employees are not potential and also do not have expected skills as compared to technology to
satisfy their customers on time as Asda have a large customer base. Service helps company to
increase loyal customers and with ineffective services Asda loses the efficiency to attract more
customers to increase its sales. Fake news due to internet have also confused the customers to
trust the companies which also deceases Brand value of Asda. Asda is facing this social issues as
it is very difficult to analyse the brand value and formulate pricing strategies according to its
process to gain more premium value from the products and services. Internet is the fastest
medium to share information which also impacted business due to foul publicity and unethical
activities by competitors to capture market share. Mechanization also increases dependency of
delivering the products to customers. Asda is having issues with handling of all the data as it is
very important to understand all the stored data to make effective decisions and increase the
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quality of working environment. Technology also discourages the legal justice which take place
on the online platforms. It is not in notice of legal justice institutions which discourages
customers to buy online.
Different Types of Networking Technologies For Business Organization
As per the view of Turel, Soror and Steelman, (2018) networking technologies is
framework that helps to connect two or more computer system longer so that it can transfer and
receive data that can be connected to a server helps to provide all the information effectively.
Local Area Networking is the simplest type of network system Asda is using to by connecting to
a hub or server to exchange information. This firm is using this type of networking system at its
each store to connect all computer integrally from each other and increase the performance of
store. Wireless Local Area Networking This system is similar like Local Area network but is
upgraded as it is wireless and It is connected with the help of in internet or personal server of
Asda to exchange information. Asda is also very effective in exchanging the data in the small
area with wireless networking without any cables.
Alsmadi and et.al, 2018 said that MAN is a big larger area network than LAN as it is the
combination of two or more local networks with help of single server or internet which help to
manage all the network of stores at one place of particular market. Asda is using this networking
system to connect all the store's system of particular city at in one place which will integrate all
the data of tat location which will also help company to differentiate the sales and other factors
of all cities separately.Wide Area Networking is very large and it allows to connect all the
computer systems of Asda from any location of the world to send or receive their data through
internet or personal server which will help to secure the data and also provide advantage to
compete in market. WAN help to connect all the Local networks with the help of internet which
help increase the efficiency business. Storage Area Networking is pool of system which is
working in high speed server to store information in different server, so that only those systems
can assess data which are connected to pool and gain efficiency to manage all the activities.
Asda is using storage area network to secure their information in a safe storage of company.
Asda is using Enterprise private networking technology which have the effective techniques to
secure its data and it is customized for every store with secure passwords which also help to
protect it with data theft and cyber crimes which can decrease the productivity of company.
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Employees of Asda are also very effective in understanding the information due to high skilled
training and knowledge. This also helps to formulate strategies which will grow the company's
revenue and market share. Enterprise private networking is different from all the other
networking system as it helps to provide effective information for only superiors and
management to avoid the leakage of information through lower level employee.
Importance of Social Media For Business Organization
(Tavani, 2016) stated that Due to change in market trends and technological
advancements, customers have increased their knowledge and also have skills to understand the
use of social media. This is very helpful for retailers like Asda to develop marketing plan and
increase their customers and also evaluate external and internal factors of business environment.
Asda is using Social media platform to increase the brand awareness by posting the
advertisements on websites and also describing about the nature of company which help online
users to increase their knowledge and consider purchasing some product form company, this will
increase the sales of company in long run and also improve the brand value. Social medial also
help Asda to communicate with them and also help the company to know customer's point of
view which help to generate effective policies and differentiate new products so that it can
satisfy existing customers and attract new customers in stores. Asda also uses social media to
provide information about all the products and services which the company is providing which
also help to attract new customers and improves customer engagement. Social media provide
platform to innovate their products and with the help of product differentiation it helps to make
customers loyalty. Social websites also with additional benefits to customers which will also
retain them to company. This marketing technique which also increases the goodwill by mouth
publicity and which is very effective marketing in present day. Asda also provides support to
their customers with the help of social media platform to solve their queries about the products
and services. Social media helps to generate effective suggestions by users which helps to
develop new products and services to increase customers satisfaction and making them loyal to
company.
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Stages of System Development Life Cycle (SDLC)
According to Pekkola and Päivärinta, (2017) system Planning is a very important phase
in the entire cycle because in this stage there has to be a decision related to identify key problems
with specific solutions and what has to be done overall (Koch, 2018). The problem has to be
addressed and resources required to solve the same is being discussed at first stage of SDLC.
There has to be a study as to how the product can get a competitive advantage in the market and
be better than all the other competitions. After this discussion the organization will have a clear
vision whether they have to improve the current scheme or leave the method as it is or develop a
new instrument all together.
As per the view of Jakkaew and Hemrungrote, (2017) system Analysis is the
Understanding demand of targeted audience and check feasibility of new product is done at the
second stage of SDLC, in aspect of socially, organizationally, economically and technologically.
The communication between the client and the business has to be there so that there is a clear
vision as to what has to be done in the organization and the finished product can get justification
and satisfy the clients.
In accordance with Beynon-Davies (2016) designing is third stage which focus on the
formation of components of system after analysing the needs and wants of customers, a user-
friendly interface is created. This would help to increase the quality of operation with effective
features which are required. This stage also helps to understand all the information processing
for evaluating the functioning of system before implementation. This stage will help to
understand all the issues and flaws of system.
(Kaplan, 2017) said that Implementation and development is the fourth stage After
understanding all the internal factors and component which will help to function the system will
be created in this stage according the designing in the previous stage. This stage is the
programming stage for the system and software which help to develop the language and all the
features which are discussed in the above stages. The system will be completed in the stage and
will be ready to be installed for customers. The customer will provide with training about the
system function and operations to increase their efficiency increase their productivity of business
organization to increase their profitability.
Ptitsyna and et.al., (2019) stated that Testing stage provides all the system be combined
and integrated to form a complex system which will be more effective for the customer and
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provides better quality of operation to them. After that a testing will be done by the business
employees which is trained for system to ensure the quality of system both hardware and
software quality with real activity testing.
In opinion of Rajaraman, (2018) maintenance is the last stage where system will be
maintained in regular interval of time and all the corrections will be made to provide efficiency
to system. This will help to change the components which are inefficient due to changes in
technology and market rends which can make the system obsolete can also lose its productivity.
Analysis and Discussion
IT also help to compete as it is also very effective in increasing the opportunity to globalize with
the rise in market share. Information technology help to identify all data to add all cost and
revenue generation in future from customer point of view. Asda also is suing feedback system
which help to identify customer behaviour when customers visit stores to purchase their goods.
This firm has also implemented information technology to increase speed of billing and reduce
the waiting period of clients and increase customer loyalty in company. Asda is using
information technology to evaluate the performance of their employees which helps the company
to formulate effective management policies. IT also helps to identify the needs and wants of
employees which motivate them and increase retention in stores. Ethical and social issues in
perceptive of technology are the problems which contradict with the nature of business values
which also create ethical dilemma about the situation. Whereas social issue are the problems
which a business faces due to changes in behaviour of customers which impact the nature of
business like increase in education level of customers also decrease the chances to increase the
profit margins as the customer is more aware (Insana, Hapsari and Eko, 2019). Asda is using
these network in their business operation to maintain all information and increasing the
effectiveness of management to formulate strategies which help to compete in market. It helps all
systems of different stores to accumulate all the information in place to analyse growth rate of
company. Asda will increase its customers on social media by posting regularly about the types
of products which can be used by customers. This will also increase the customers' interest in the
product and accumulate more customer base to increase the efficiency of company and also help
to gain more knowledge about preferences and tastes, cultural values and beliefs also help to
develop effective strategies and policies to attract more customers in the company. Social media
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is the networking platform which help to communicate with each other and share thoughts with
the society. This platform also helps to maintain a social balance between global cultures and
also increase knowledge about all the factors of present in the market. This is very beneficial for
Asda as it helps to provide a platform which company can analyse to understand customer
behavioural patterns. Social media provide platforms to organizations like Asda to evaluate the
current market conditions for making effective decisions to increase sales. Asda is using Social
media as marketing tool as it shares the information at large market at low cost this also increase
the profitability of company.
CONCLUSION
This report had a brief study about importance of information technology in operating
business activities. IT helped to management their employees in the organization and increase
their efficiency with effective strategies. It also increased the communication between employees
and customers to foster the growth of company. Legal and accounting is essential aspect of firm
to analyse its financial position, for formulating the effective strategic planning to increase the
efficiency of business as technology helped to reduce cost of production and increase
profitability.
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REFERENCES
Books and Journals
Alsmadi, I. and et.al., 2018. Introduction to information security. In Practical Information
Security (pp. 1-16). Springer, Cham.
Beynon-Davies, P., 2016. Information Systems Development: an introduction to information
systems engineering. Macmillan International Higher Education.
Hemrungrote, S., Jakkaew, P. and Assawaboonmee, S., 2017, March. Deployment of Google
Classroom to enhance SDL cognitive skills: A case study of introduction to information
technology course. In 2017 International Conference on Digital Arts, Media and
Technology (ICDAMT) (pp. 200-204). IEEE.
Insana, D., Hapsari, A. and Eko, M., 2019. Increasing Entrepreneurial Creativity Through the
Introduction of Information Technology Utilization. In The 1st Workshop on
Multimedia Education, Learning, Assessment and its Implementation in Game and
Gamification in conjunction with COMDEV 2018. European Alliance for Innovation
(EAI).
Jakkaew, P. and Hemrungrote, S., 2017, March. The use of UTAUT2 model for understanding
student perceptions using Google Classroom: A case study of introduction to
information technology course. In 2017 International Conference on Digital Arts,
Media and Technology (ICDAMT) (pp. 205-209). IEEE.
Kaplan, R.M., 2017. A Concise Introduction to Information Technology.
Koch, C., 2018. Introduction to Information Technology. Scientific e-Resources.
Lloyd, I .J., 2017. Information technology law. Oxford University Press.
Lugmayr, A. and Grueblbauer, J., 2017. Review of information systems research for media
industry–recent advances, challenges, and introduction of information systems research
in the media industry. Electronic Markets. 27(1). pp.33-47.
Nieles, M., Dempsey, K. and Pillitteri, V., 2017. An introduction to information security (No.
NIST Special Publication (SP) 800-12 Rev. 1 (Draft)). National Institute of Standards
and Technology.
Pekkola, S. and Päivärinta, T., 2017, January. Introduction to Information Systems Success and
Benefits Realization Minitrack. In Proceedings of the 50th Hawaii International
Conference on System Sciences.
Ptitsyna, V.S and et.al., 2019, October. The introduction of information technology in business
processes as a method of quality improvement. In IOP Conference Series: Materials
Science and Engineering (Vol. 666, No. 1, p. 012059). IOP Publishing.
Rajaraman, V., 2018. Introduction to Information Technology. PHI Learning Pvt. Ltd..
Tavani, H. T., 2016. Ethics and technology. Wiley.
Turel, O., Soror, A. and Steelman, Z., 2018, January. Introduction to the Minitrack on The Dark
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Waser, R and et.al., 2016. Introduction to nanoionic elements for information technology.
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