Analysis of Information Technology and ERP Systems at Mark & Spencer

This report delves into the application of Information Technology (IT) and Enterprise Resource Planning (ERP) systems within Mark & Spencer, a multinational clothing retail company. It begins by defining IT and its significance in modern business, emphasizing its role in enhancing performance and adapting to market changes. The report then classifies different information systems, including operational, tactical, and strategic levels, along with Transaction Processing Systems, Management Information Systems, Decision Support Systems, Artificial Intelligence techniques, and Online Analytical Processing. The core of the report focuses on ERP systems, explaining their function in managing business processes like finance, HR, and supply chain. It explores the benefits of ERP, such as improved efficiency, data visibility, enhanced reporting, and cost reduction. Finally, the report concludes with recommendations for Mark & Spencer, emphasizing the importance of ERP in maintaining information security and making informed decisions to optimize operations and reduce costs.

Managing
Information and
Technology
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Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
Introduction aims and objectives.............................................................................................1
Categories of information systems...........................................................................................2
ERP system.................................................................................................................................3
Benefits of ERP system in real-life business:..........................................................................4
Conclusion and recommendation.............................................................................................5
REFERENCES................................................................................................................................6
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INTRODUCTION
Introduction aims and objectives
Information technology is refers as a system that uses by all organisation in order to bring
something new and improving their existing performance. In environment technology is
changing day by day where organisation who is adopting this can only goes forward and
attaining higher profits. In other words, information technology is related to uses of computers
for transmitting and manipulation of information of information. Information technology covers
development, utilisation, and maintenance of data which helps to carrying on business and
processes the benefits. To know the befits and uses of information technology Mark and Spencer
has been taken that is multinational clothing retail company using information technology for
carrying out distribution and processing of data. This is largest organisation that offers retailing
products and services to customers at national and international level and earning higher profits.
The management of such organisation focuses on needs and wants of people by using new
technology and provide kind of products and services which helps to make higher profits. This
organisation is using information system which is considered as main components for collecting
storing and processing the information at affordable prices. This refers as social – technical,
formal and organisation system which helps to run a business effectively and maintaining profits.
Management of Mark and Spencer company uses different types of system and software with the
help of informational technology helps to run a business (Bodnar and Hopwood, 2012).
The aim of this report to classify the effect of information and the ERP system within
Mark and Spencer company to manage and control the information over a wide range of
streams. The first objective is to find different types of information systems. Another objective is
to analyse the role of the ERP system in controlling and managing a wide range of information
streams.
Enterprise resource planning (ERP) refers as software system which is used by
organisation to arrange and control the business processes. This is a main system, often uses in
real time and mediated by technology and software. This is important for business organisation
to follow the enterprise resource planning system that is uses to think about all processes which
are required to run a company such as finance, HRM, marketing, operation, research and
development, manufacturing, supply and chain services which has impacted on business
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positively. In other words, ERP system is a method utilizing software, hardware and enhancing
people in order to increase organisational productivity. With the help of ERP system managers
are improving their skills and practices (marketing, sales, inventory, storing data, system of
cloud computing) by ERP. This helps managers to gather information which is related to market
trend and maintain business units effectively which helps to run a business effectively.
Categories of information systems
Information system is refers as system that uses for scrutiny of complementary networks
by concluding and involving hardware and software in order to continue a business. All
organisations are adopting information system with the help of individuals and employees in
collecting, processing creating, filtering and distributing data. This is improving their business
activities and performance by bringing new technology and information which attracts customers
and encourages them to buy the products and services. Such as the Mar and Spencer is larger size
company that has many stores in London and other place which is adopting information system
by maintaining good communication system and coordination between all that increases
organisational productivity and effectiveness. Information system is categorised in to different
system that are as defined:
Pyramid Diagram of organisational level – This is information system that covers
different level of managing the information and data effectively. This involves different level
such as operational management level, Tactical management level and strategic management
level. In Mark and Spencer, manager are working at operational level with performing day by
day transactions such as cashier point of sale, managing finance, marketing activities and
customer care which helps to run a business and maintaining good performance. Tactical
management level is affected by middle level of managers, supervisors, head of department etc.
that usually oversees the activities which complete the transactions.
Transaction process system – TPS system is used by organisations to record day by
business transactions of the organisations. The main objective of transaction processing is to
answer the routine like as inventory management, an operation which helps to maintain the good
profits. In NHS, managers are using Transaction process system which helps to maintain the all
transactions in systematic manner by involving point of sale system, payroll system, stock
control system, airline booking system (Cullen and et. al, 2013).
.
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Management information system – It is a system which is used by tactical managers in
order to monitor and control the organisation’s performance status. This is important for
organisation to use such system where all information can be manage and control effectively. In
Mark and Spencer, managers are using management information system which analyses the
input with routine algorithm for instance aggregates, summarizes and compare the reports which
helps to run a business.
Decision support system – This system are used by different companies to make daily
basis decisions. This is important for companies to take a right decisions with the help of input
and internal system. The main object of DSS is to provide better solutions to problems. In Mark
and Spencer, management are using decision support system to know the impacts of employees
performance by taking decisions, getting sale point and improving business activities in order to
make profits (Ngai and et. al, 2012).
Artificial intelligence techniques – This is another system uses by business organisation
to identify the pattern in large data sets. Mark and Spencer is retailing company that is using
intelligence techniques to make accurate prediction of people who needs products and services as
per their culture which helps to provide products accordingly.
Online analytical processing - This system is related to online processing which helps
business in query and analyses the multi-dimensional information in order to provide different
types of products and services. By using this system management of Mark and Spencer get to
know their selling activities, chain process, order of customers and their feedback regarding their
services which helps to bring improvement accordingly (Shin and Eksioglu, 2015).
ERP system
ERP refers as Enterprise resource planning which means a process which is required in
companies to run a business functions such as HR, finance, supply chain , procurement etc.
which are important to run a business and make profits. In other term, Business process
management software allows the company to provide an unified operations management
application framework and to automate back office processes that are related to infrastructure,
human resources and technology (ERP (enterprise resource planning 2019). This system is used
by organisation to understand the business activities and identify problems that can arise while
running a business and provide a optimum solution in order to improve business. With the help
of Enterprise resource planning all operation and administrati0on runs smoothly and effectively
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which helps to make higher profits. The main function of ERP system is resources which are
available in organisation should be planned properly in order to complete task and increasing
operations. For instance, Mark and Spencer is using ERP to allocate resources and operating
each functions effectively which helps to complete the assigned task and maintaining
profitability. This resource planning helps to mitigate the chances of errors, suspension and
manipulation and data redundancy which helps to grow a business continuously. Different kind
of ERP system are uses by organisation to present the database, servers and proper chain system
which helps complete the business activities. This system are run and managed by IT and
technical staff in context to Mark and Spencer in order to collect data and provide product
services accordingly. ERP providers handle the data and applications jointly within the remote
Data center. Costumers can access the information via web browsers. Hybrid applies to on-
premises mix and cloud ERP mix. This helps to run a business effectively by managing a system
and storing data properly which increases organisational performance and productivity (Kadam
and Onkar, 2015).
Mark and Spencer which is a larger size retailer company is using on Premises ERP
which uses to complete the goals and objectives of business organisation by managing activities
and controlling them in effective manner. The managers of chosen organisation are focusing on
different ERP systems which are related to company activities. The technical manager of such
company opted this system to identify problems which are related to sales, distribution, chain,
operation and managing finance properly.
Benefits of ERP system in real-life business:
ERP system is benefited for business organisations that gives good results to businesses
and make profitability. This helps to focus on IT cost as it mainly adopted by larger investment
company in order to improve their efficiency. The managers of Mark and Spencer are managing
data of its dedicated staff, support team and employees and provide them a better solution which
helps to run a business effectively. The next advantage is total visibility which means this gives
biggest selling points for the software to companies (Garg and Chauhan, 2015). The Chosen
organisation is taking advantages by assessing all important process in business by making data
for each and every department. The third benefit is it improves reporting and planning across
various departments that helps to run a business and implementing plans properly. The
management are generating useful reports and software by comparing with others that helps to
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take competitive advantages. In Mark and Spencer, managers are preparing financial reports that
involves income statement, financial statements, cash flows etc. which states profitability of their
running business. Complete customisation is another befits which are getting by chosen company
while using enterprise resource planning that complete business needs by maintaining activities
properly and integrating functions optimally. The meaning of customisation is how software
should be implemented and how it collects information in a cloud in entire business. ERP system
is highly benefited to organisation by improving their efficiency by reducing IT and training
cost. This helps to reduce the time and efforts which are dine by employees of chosen
organisation and carry out the day by day activities efficiently. The another benefits of ERP in
real life are data security, quality and customer services which are needs of every business. All
are need are completed by ERP system that increases sales, distribution, manufacturing and
others activities in order to operate a business successfully (Hübner, Wollenburg and Holzapfel,
2016).
Conclusion and recommendation
From the report it can be concluded that business technology are growing faster where
business organisation has taken opportunity to run their business and complete with others
effectively. Information technology is a process which uses by organisation to get the
information and data which is relevant to business and its growth. This is important for
organisation to focus on new system and information technology so productivity and profitability
can be increased and maintaining good performance. ERP (Enterprise Resource Planning)
corresponds to corporate business units that can achieve success through automation and
combination. By this company management activities can be efficiently managed.
It has recommended that Mark and Spencer use the ERP program to ensure that the
information security is protected and expertise acquired is used to make the necessary decisions.
It would reduce excess capital and marketing expenses. Mark and Spencer is using different ERP
systems which gives them broad scope of operation. In case of real-time reporting it supplies
them inventory management and financial summary that helps to run a business efficiently. It
will allow to Mark and Spencer preserve data quality and security by ensuring that their
reliability is maintained, which ensures that data can be accessed on other systems.
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REFERENCES
Books and Journals
Bodnar, G. H. and Hopwood, W. S., 2012.Accounting information systems. Upper Saddle River:
Pearson.
Cullen, J. and et. al, 2013. Reverse logistics in the UK retail sector: A case study of the role of
management accounting in driving organisational change. Management Accounting
Research. 24(3). pp.212-227.
Kadam, K. S. and Onkar, V. C., 2015. A review paper on student information supervision
system. International Journal of Research In Science & Engineering. 1. pp.66-72.
Garg, P. and Chauhan, A., 2015. Factors affecting the ERP implementation in Indian retail
sector: A structural equation modelling approach. Benchmarking: an International
Journal. 22(7). pp.1315-1340.
Hübner, A., Wollenburg, J. and Holzapfel, A., 2016. Retail logistics in the transition from multi-
channel to omni-channel. International Journal of Physical Distribution & Logistics
Management. 46(6/7). pp.562-583.
Ngai, E. W. T. and et. al, 2012. Implementing an RFID-based manufacturing process
management system: Lessons learned and success factors. Journal of Engineering and
Technology Management. 29(1). pp.112-130.
Shin, S. and Eksioglu, B., 2015. An empirical study of RFID productivity in the US retail supply
chain. International Journal of Production Economics. 163. pp.89-96.
Online:
ERP (enterprise resource planning). 2019. [Online]. Available through:
<https://searcherp.techtarget.com/definition/ERP-enterprise-resource-planning>.
(Bodnar, G. H. and Hopwood, W. S., 2012) (Cullen, J. and et. al, 2013) (Kadam, K. S. and
Onkar, V. C., 2015) (Garg, P. and Chauhan, A., 2015) (Hübner, A., Wollenburg, J. and
Holzapfel, A., 2016) (Ngai, E. W. T. and et. al, 2012) (Shin, S. and Eksioglu, B., 2015) (ERP
(enterprise resource plannin 2019).
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