Analyzing the Impact of Information Technology on Business Operations

This report analyzes the impact of Information Technology (IT) on business operations, focusing on the retail company M&S. It explores the crucial role of IT in organizational success, emphasizing its use in communication, inventory management, information systems, and customer relationship management. The report also addresses ethical and social issues related to IT, such as unemployment, education, data security, and privacy. Different types of networking technologies, including PAN, LAN, WLAN, CAN, WAN, SAN, and EPN, are explained to highlight their importance in facilitating interconnection and communication within businesses. The report further discusses the significance of the internet and intranet for marketing, customer service, remote operations, and employee training. Finally, the report touches upon the system development life cycle, providing a comprehensive overview of IT's multifaceted influence on business practices.

Impact of It on Business
Operations

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Role Information Technology in Success of Organization..........................................................1
Ethical and Social Issues of Information Technology.................................................................2
Types of Networking Technology...............................................................................................3
Importance of Internet and Intranet.............................................................................................5
System Development Life Cycle.................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Information Technology is consider as the development, maintenance and utilization of
computers hardware (system), software and networks. This is also consists of collecting, storing
and processing of data and information. Use of information technology improves the
performance and productivity of business by improving information system of organization. M
& S is a British multinational organization that is working in retail industry (Dutta, Geiger and
Lanvin, 2015). M & S was established in 1884 by Michael Marks and Thomas Spencer. M & S
is operating worldwide on around 1463 locations. Company is selling range of clothing, home
products and food products. Headquarter of M & S is in London, United kingdom. This study is
explaining use of information technology in business organization. The advantages and dis
advantages of information technology are also considered of information technology. Social and
ethical issues of information technology are covered in report. Different types of networking
technology used in organization are explained with importance of internet and intranet.
Development stages of system is explained in the report.
TASK 1
Role Information Technology in Success of Organization
Information technology is a computer system that is used in the organization to collect,
store and process different type of information of the organization to improve its performance
and productivity in market place. The purpose of use of information technology in organization
is to improve the handling of information of organization. The information technology is used in
different departments of M & S. the functions like communication, inventory management,
management of information system and customer relationship management.
Communication
It is important for the organization to maintain communication between the different
departments of organization for effectiveness of work. For better operation and processes
communication is most important (Avgerou and Walsham, 2017). There are different methods of
communication are used in the M & S. e-mail, video and audio chat rooms and social
networking sites. The use of information technology in makes the information transfer faster and
efficient. For the professional communication like work orders and information transferred
through information technology system.
Inventory Management
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inventory management is most important practice of the organization cause this can help
the organization to save a lot funds by full filling stock of company as per requirement. This also
can improve the stock handling. There are different type of information systems are used in the
organization. M & S is a retail store and it is important for the organization to manage inventory
to maintain continuity of supply. IT can help the M & S to maintain supply as per the demand of
goods (Baller, Dutta and Lanvin, 2016). The products in the organization also can be tracked by
different Information technology systems like RFID and block chain management can be used
for this. This is also can be used to track the employees of organization.
Management of Information System
Information management is the most important thing for organization. There are multiple
departments are their in a company. For the coordination and cooperation different information
interfacing systems are used in M & S. mostly TPS (Transaction Processing System) MIS
(Management Information System), DSS (decision Support System) and Artificial Intelligence
are used in organization. This systems help the organization to conduct the business in effective
manner. This improves the productivity of M & S.
Customer Relationship Management
It is important to maintain relation with customer because good relation between
customer and company can help the organization to build trust and retain customer for longer
time. This customer retention will help M & S for the long term success and goals. This is also
good for customer satisfaction. Different computer system and storage devices are used by the
organization to store and process the customer data (Benckendorff, Xiang and Sheldon, 2019).
This processing and data storing improves the knowledge and information of M & S and this
help company to make better decisions about company products and services.
This use of information technology improves the efficiency of organization and help
them to conduct and manage the business on the large scale. This improves the performance of
organization on global level and improves the coordination between different branches of
organization.
Ethical and Social Issues of Information Technology
There are many positiver and negative impact of information technology on working and
processes M & S. Use of information technology can affect the various factors of organization
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and people. Information Technology also have impact on different social and ethical issues. This
can affect the people and organization in different ways.
Social Issues of Information Technology
Information Technology can create different social issues that are big concern to the
society. Unemployment and education level. Information technology is highly work efficient and
quality of and accuracy of this technical system is high (Xiang, Magnini and Fesenmaier, 2015).
This high efficiency causing unemployment in society. High accuracy and speed of IT system
need only few operators this reduce the requirement of employees in organization. System like
Artificial Intelligence and Automation technology make the operation of M & S highly accurate,
and cost effective for organization. The other problem and issue with information technology is
that the person who is working on this system need high education qualification and high
technical skills. To get a job in organization will be more difficult for people. This is also
problem for organization cause they also have to conduct different type training and
development session for the employee to work on the latest technology. This is how information
technology is causing social issues to M & S and people.
Ethical Issues of Information Technology
The ethical issues of information technology are more related to the security and privacy
of the customer and employees. Information technology is just a technology that can be
manipulated by any person who can intentionally harm any employee of organization or
customer of organization. There is large amount of customer and employee data is stored in the
system of organization. It is duty of company to keep the data and information safe and secure.
Data security and privacy is important for M & S cause this information can be used for criminal
activity. Any breach in security and safety of data can lead to misuse of information of customer
and employee data that can cause legal trouble to M & S (Theis and Wong, 2017). There is also
threat of computer viruses and hacking of information by any external person.
These are different ethical and social issues to organization that can be occurred due to
use of information technology.
Types of Networking Technology
The different type information technology are used in business organization are important
to maintain interconnection and communication between people and systems of organization.
Verbal and oral communication is not that much effective for purpose of data and information
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transfer. There are different type of networking technologies are use in M & S that are explained
below.
PAN (Personal Area Network)
in this type of networking two computer devices are connected together on the personal
network. This type of networking is only for the personal use of authority of organization. PAN
is good for small area and personal use.
LAN (Local Area Network)
For small local area this is the best networking technology. In this networking type
multiple devices are connected together (Nevo, Nevo and Pinsonneault, 2016). This one of the
simplest type of interconnection network in organization. This will be the best type of selection
for short physical distance. The data and information transfer is much faster in it and in LAN
multiple which are close to each can be connected together.
WLAN (Wireless Local Area Network)
WLAN is same as Local area network but the only difference between WLAN and LAN
is the WLAN networking connects devices and systems together in wireless technology.
Computer systems are not connected physical together.
CAN (Campus Area Network)
The campus area network is used with in the campus of organization. All the systems and
computers of organization are connected together with this networking technology. This is the
best type networking technology to communicate and transfer information with in the campus of
M & S.
WAN (Wide Area Network)
For the long physical distance WAN is used by different organization. In wide area
networking devices are connected together at long distance. In the method of connection is wired
and physical connection between systems. The vast reach of WAN help the M & S to
communicate and transfer information on large physical distance.
SAN (Storage Area Network)
Storage area network is best for the organization to store huge size of data at a single
location (Madon and Krishna, 2018). All the data and information collected from different
location where M & S is currently working is stored and processed for further use. The
authorities are allowed to use this information for business purpose.
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SAN (system Area Network)
In this networking technology different systems of the company which are currently in
use are connected to each other for better coordination and cooperation. This is server to server
high speed connection . The devices connected through SAN works on High speed server. For
bulk information transfer system area network is best. By this networking technology different
departments are connected in organization.
EPN (Enterprise Private Network)
The enterprise private network is used by the organization to create personal network in
the organization that is only for employees and authorities of M & S. All the functional
departments of company are connected to this network and it is not accessible for public use.
These are the different types of networking technology in M & S to improve business,
information transfer and communication.
Importance of Internet and Intranet
Internet and intranet are the modern technology that is accessible to all people and it is cost
effective. Internet and intranet can be used by different business organization to improve
productivity of organization. Both internet and intranet are important for operations of M & S.
internet and intranet can be used in organization for different purposes.
Importance of Internet
internet can be used for different purposes. Internet can help the M & S to perform
marketing and promotion to improve number of sales. Online promotion improves the visibility
of organization and help M & S to serve more customers. Marketing data also can be collected
from internet and the sources of this information can be directly consumer or third parties that
are providing market data to company (Lee, Thomas and Baskerville, 2015). That can help to
decide the future strategy and operation of company. Internet provide opportunity to organization
to provide services to customer 24 * 7. customers are able to buy product from online shopping
platform. M & S can also use internet to provide support and services to customer. This will
provide immediate solution to customer about their problems and issues. Internet also provide
the organization to conduct business in the remote area because the reach of company is
increases with the use of internet in business practices. For training and development M & S can
use internet and this will provide more flexibility to company and employees. This is also the
best way to conduct training in cost efficient manner. For money transfer it is the best way
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cause it provides facibility to organization to perform fast fund transfer at any time. Internet
allows the company top maintain better connection with employees. The chances of growth
increase by use of internet in company. Internet also provides online storage to the company to
store customer and business to increase the mobility of organization. This is how internet help
the organization to improve the business possibilities.
Importance of Intranet
Intranet helps the business in various ways this used by companies to improve the
performance of company in market place. This can be used for employee engagement. This help
the organisation to make the better relationship with employees and this improves the
involvement of employees in business practices. This can help the M & S to grow strong
communication with employees and this lead to better transfer of information and help company
to convey foal to ground level employees of M & S. Intranet allows the employer to make direct
contact to employees on immediate basis. Collaboration and coordination is effective through
this technology (Nguyen, Newby and Macaulay, 2015). Intranet provide better opportunity to
organization to manage and process information with in the organization. This is how intranet
help the organization to conduct business in effective way.
System Development Life Cycle
System development cycle is used to represent the process of development of information
system with in a business organization. There are few steps are followed by company to match
the requirement and efficiency of system. The steps of information development cycle are. There
are nine different steps are followed by the organization to develop information system in
organization. This steps are analysis, planning, designing, development, testing, deployment,
maintenance, evaluation and disposal.
Analysis- An analysis is performed to find the details and check requirement for information
system.
Planning- In this stage according to the requirement specific plan is designed by technical and
management team of M & S.
Designing- As per the requirement of company a paper design or lay out is designed by group of
technicians.
Development- As the design for the information system is completed engineers start developing
the system for M & S.
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Testing-After the development of system a team of engineers check the performance and
working of IT system.
Deployment- As the system pass the quality and performance test system is deployed in
organization.
Maintenance- Maintenance of system is perform regularly to get maximum optimum output
from information system.
Evaluation and disposal- After the implementation of system performance is evaluated by
organization to check efficiency of system. If system performs the best then company keep using
it and for the condition of failure company dispose the system and start research for new system.
CONCLUSION
This report is concluding the importance of information system in M & S. The business
of company is evaluated with the information technology. Social and ethical issues are
considered which are related to implementation of information technology. Types of networking
technologies are suggested for company to perform information transfer and communication.
Importance of internet and intranet is analysed in study.
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REFERENCES
Books and Journals
Avgerou, C. and Walsham, G. eds., 2017. Information technology in context: Studies from the
perspective of developing countries: Studies from the perspective of developing
countries. Routledge.
Baller, S., Dutta, S. and Lanvin, B., 2016. Global information technology report 2016. Geneva:
Ouranos.
Benckendorff, P.J., Xiang, Z. and Sheldon, P.J., 2019. Tourism information technology. Cabi.
Dutta, S., Geiger, T. and Lanvin, B., 2015. The global information technology report 2015.
In World Economic Forum(Vol. 1, No. 1, pp. P80-85).
Lee, A.S., Thomas, M. and Baskerville, R.L., 2015. Going back to basics in design science: from
the information technology artifact to the information systems artifact. Information
Systems Journal. 25(1). pp.5-21.
Madon, S. and Krishna, S., 2018. The Digital Challenge: Information Technology in the
Development Context: Information Technology in the Development Context. Routledge.
Nevo, S., Nevo, D. and Pinsonneault, A., 2016. A Temporally Situated Self-Agency Theory of
Information Technology Reinvention. Mis Quarterly. 40(1). pp.157-186.
Nguyen, T.H., Newby, M. and Macaulay, M.J., 2015. Information technology adoption in small
business: Confirmation of a proposed framework. Journal of Small Business
Management. 53(1). pp.207-227.
Theis, T.N. and Wong, H.S.P., 2017. The end of moore's law: A new beginning for information
technology. Computing in Science & Engineering. 19(2). p.41.
Xiang, Z., Magnini, V.P. and Fesenmaier, D.R., 2015. Information technology and consumer
behavior in travel and tourism: Insights from travel planning using the internet. Journal
of Retailing and Consumer Services. 22. pp.244-249.
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