BABS Foundation Year Report: IT Impact on Marks and Spencer Operations

This report, prepared by a student at the University of Suffolk, examines the impact of Information Technology (IT) on Marks and Spencer (M&S). It explores how M&S utilizes IT tools, including POS terminals, mobile applications, and CRM software, to enhance customer engagement, improve operational efficiency, and drive revenue growth. The report delves into the role of various information systems, such as Management Information Systems and Decision Support Systems, and analyzes the implications of networking technology and ethical considerations in the context of M&S's business practices. It also highlights the company's collaboration with Tata Consultancy Services to improve end-to-end processes through automation. Findings indicate that IT has significantly influenced both online and offline sales, leading to improved performance management. The report concludes with recommendations and emphasizes the importance of IT in modern retail operations.

Impact of Information Technology, Individual Report
 Course: BABS Foundation year
 University: University of Suffolk
 Student id: 198166
 Student name: Andreea Irina Aranyosi
 Date of Submission: 16 Nov 2018
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Table of Contents
Executive Summary or Abstract.............................................................................................................2
1.Introduction........................................................................................................................................3
1.1 Purpose........................................................................................................................................3
1.2 Background..................................................................................................................................3
2. Literature Review...............................................................................................................................4
2.1 About business, their products and services, competitive strategy etc.......................................4
According to (Price and Rowling).......................................................................................................4
2.2 Information Technology and its role in retail business................................................................4
(The importance of good communication) describes comuunuicationpoasek pasjkl........................5
2.3 Networking Technology, different types......................................................................................5
2.4 Ethics and Social Issues of using technology................................................................................5
3. Analysis and Discussion.....................................................................................................................6
3.1 Role of Information Technology in the selected retail business..................................................6
3.1.1 Types of different Information Systems that are used in selected business like
Management Information Systesm, Decision Support Systems etc...............................................6
3.3 Networking types in selected business........................................................................................7
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4. Findings..............................................................................................................................................7
5. Recommendations and Conclusions..................................................................................................8
Works Cited...........................................................................................................................................9
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Executive Summary
This report is based on Marks and Spencer (M&S) operational undertakings with context of
maintenance and development of inclusion of Information Technology tools and application
of internet for promotional activities. It had put insights on the use of POS terminals, mobile
phone application in order to reach their potential customers’ conveniently and faster, CRM
Software and many more. Their approach in employing Management Integrated System had
also enhanced their innovation and creative concepts to reach the targeted marketplaces for
enhancing their company’s revenues, profits and productivity. In regard to the same, M&S
management collaborated with Tata Consultancy Services to improve their end-to-end
processes commendably through new technologies through automation. There was a rise in
both offline and online sales that implied the effectiveness on the impact of IT field on M&S
operations.
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1.Introduction
Information Technology has revolutionized all the operational procedures involved in the
production or manufacture of a product or service of an organization. It is steadfastly gaining
popularity to reach their targeted population to enhance their employees’ engagement and customers’
retention.
1.1 Purpose-
This project has been undertaken to study the overall impact of information technology in the
industrial operations with respect to the working practises of company.
1.2 Background-
This assignment gives useful insights about emergence and gradual interference with
appropriate implications on the investment, extension, overall status and utilization of
Information Technology (IT) in the field of business sector. Here, Marks and Spencer (M&S)
has been considered, which is one of the largest retailing organizations of UK.
2. Literature Review
2.1 About business, their products and services, competitive strategy etc.
M&S is interested in redefining their operations with innovation, including value chains,
stores etc. through providing high quality standards in their branded clothing, home products and food
items at both national and international levels. Their ultimate aim is to maintain carbon neutrality
worldwide until 2020 by implementing sustainable approaches that promote the utility of IT (Zokaei
and et.al., 2016). However, this is only possible by integrating basic knowledge of Information
Technological advancements with M&S operational processes such as e-business, its project
management with mobile technologies, that takes place every day.
As per Price and Rowling, it has not only assisted in processes of production or development,
but is also easier to employ them at faster speed with cost effectiveness and time efficiency. With the
help of using internet and IT, marketing and promotional activities can be done effectively. This IT
studies emphasis on the emergence of its expansion in context to work-culture environment to
promote the direct and clear organizational paradigm. For e.g. Google gave wings to public and
companies as well to explore options available and recent market trends for modifications or
improvisations. Along with this, it has helped companies for their website development and inclusion
of mobile phone applications that has also come into great demands to bring a 360 degrees’ shift in
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their customers’ perspectives along with shareholders to enhance and update their company’s details.
Figure 1.Official website of M&S
(Source: M&S official website, 2018)
2.2 Information Technology and its role in retail business
This IT has given opportunities to companies in broad classification for their businesses such
as simplification of decision making by applying innovation in their designing part and
decentralization of information in handling tasks and sharing data or information.
According to Aloysius and et.al., 2018, Research and Development field has also seen
progress by embracing IT for overall development and growth in various departments. It acts as the
infrastructural backbone for undertakings to make inventions and innovations by succession
implementation of steps to gain the competitive advantages prevailed in the market. Consequently,
analysis can be done on the consumer behavior that can help the large as well as
Importance of good communication
ICT (Information and communications technology) is the integrated convergence through a
single linkage for unification of all the communication channels by reducing costs and additional
burden in leaps and bounds. Online Analytical Processing (OLAP) is the effective tool which supports
organizations in performing queries by using data warehouses and databases. This is also use of
Artificial Intelligence tools like genetic algorithms, networks of neural etc. to determine whether
customers have overdue accounts (Eccles, Krzus and Ribot, 2015). An organization can split the
computing power by locating the functional spectrum in a sequential order with informal
accessibilitysmall businesses to apply their strategic moves and tactics for maximum utilization of
their allotted resources and increasing their profitability rates gradually in an exponential direction.
at a single position. This has affected the financial record keeping by incorporating MIS, POS etc.in a
more proficient manner
2.3 Networking Technology in context to IT
This IT networking of software development and administration of database has many
loopholes. There can be cases of frauds, scam, IPR or copyright issues. Negative publicity can occur,
if some unwarranted incidents like discrimination, pay inequality, support to some taboo topics and
leakage of financial records can tarnish company’s reputation in few strides (Wilson, 2016). When IT
services are hired from external sources, there is a possibility that compliance specifications are met
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but along with, there will be chances of risk penalties or legalities problem. Businesses can become
vulnerable to cyber hacking, stealing of clients’ data, phishing, susceptibility towards any malware or
viruses, crashing of hard drives due to outdated software and weak firewalls' breakthrough. This
leads to re-constructing of the entire database that will lead to uncalled additional expenses by the
establishments.
2.4 Ethics and Social Issues of using technology
There has been imperative steps involved in IT sphere for safeguarding the ethical standards
and the prevalent effects of social issues. Additionally, detailed designing has been made convenient
by using computer aided programs like CAD, CAM, Photoshop, etc. that have paved a flexible path
for improvements in products as per customers’ requirements, needs and demands. There are many
more benefits that supported enterprises to expand globally by channelizing the challenges into
their advantages with the help of IT. In regard to this, Morimura and Sakagawa, 2018 said that use of
social media platforms for collecting data and surveys, promoting their products or launching dates,
evaluating the quality parameters by referring to reviews given by legal bodies and consumers as
well has been established. Moreover, the practical utility in businesses has a widespread reach
towards their brand awareness amongst consumers at global level. There is a propagation of
seamless online-to offline experience and vice versa for customers so that they can be maximizing
M&S revenues indirectly by using digital technology methods like RFID that assisted its stores layout
to do renovations at a faster and convenient mode to fetch attention of their consumers, opponents
and employees.
3. Analysis and Discussion
3.1 Role of Information Technology in the selected retail business
The following analyses have been done with context to Marks and Spencer regarding the
extension of inclusion of IT in their several businesses all over the world. They have a large
workforce and thus, in need of maintenance of their details and records in systematic order by
creating huge databases with the help of computer programs (Morimura and Sakagawa, 2018).
Recently, IT has become an indispensable part in all business functions for executing their financial
information and transactions electronically with a strong and secured back up storage arena. Point-
of-sale (POS) terminals have replaced cash registers that helped in billing of customers, tracking of
total production, required supplies, payments and more. Its practical application must be
encouraged by various corporations so that the world can lead this digitalization with ethical and
socially relevant principles to give another level of adrenaline rush to their customers. There are
many stigmas attached to its utility and employing part but, it has been observed that it has helped
in promoting growth and innovation by saving time, cutting operational costs and building efficient
and skilled workforce.
3.1.1 Types of different Information Systems that are used in selected business like
Management Information Systems, Decision Support Systems etc.
Organizations can handle personal information of their employees, shareholders and other
confidential resources by implementing Data Protection Policy and procedures. M&S did the same
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and ensured that any such miss-happenings can be stopped beforehand about losing out on their
vital data involving promotional gimmicks or marketing related to brand’s product or service (Laudon
and Laudon, 2016). They have been abided by the strict regulations and policies as per the Computer
User Agreement and when failed to follow this, it will result in disciplinary action. It might also come
under deliberate breach of contract or unauthorized access.
3.2 Ethics and social issues in selected business
M&S has merged their entire collection of data at one centralized single location, by
adopting Management Integrated System for easy approach-ability so that the complete framework
of their security requirements must keep in compact and intact order. This governance of
information must be committed with appropriate legal and obligatory regulations that will help in
doping legitimate business at international level and national level as well (Purvis, 2015). In today’ s
time, these controlling of procedural methodologies can lead to use of more such ubiquitous and
sophisticated innovations which help in diverse utilization of such hardware and software
technologies. These can support innovations exclusively by following Intellectual Property Rights
that can help in waiving any rights related to protection of this invention or new idea. Thus, M&S has
victorious profits and productivity as it has outperformed its competitors like Tesco, Asda, Sainsbury
in effective manner.
3.3 Networking types in selected business
Consequently, it helps in printing of this sales receipt for future use by customers. When
customers use their mobile app, then they can easily get notified about new offers, sales or
discounts with their availability of shipment. Successively, this technology has benefited M&S by
using CRM software with their customers’ phone systems so that they would be automatically direct
towards their services.
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Figure 2. Changed objectives due IT interference
(Source: Making M&S Special, 2017)
4. Findings
With this onset of IT, it solely helped this cited enterprise to make its services customer
friendly by upgrading their mobile phone application and website as well. It is just a click away from
the plethora of information, that can be found on M&S. It was observed that there is only 18.5 %
participation from its clothing and home sales that are online at local level. Moreover, their existing
growth is 5 % annually, which they have planned to increase by 2022 to 33 % target (Vincent, 2018).
This organization has approximately 1035 stores alone in the United Kingdom, with more than 425
stores that are located in the other parts of the world.
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Figure 3. Lower cost in retailing by using IT tools
(Source: Making M&S Special, 2017)
There has been an increase in both the sales, that is, online and offline as well. This has
directly enhanced the performance management of Marks & Spencer. There was a huge investment
made on this IT inclusion in terms of techniques, tools and methods to improve their poor online
logistics (Shaikh and Karjaluoto, 2015). The retailing sector has been struggling lately due to the
competition escalation at higher rates but although, the situation looks complicated, there is the ray
of hope in the form of a trustworthy, transparent and clear distribution channel. It will affect the
operative conditions in proper and algorithmic sequence to help M&S restore its integrity
internationally in today’s cut-throat market.
In addition to this, the sales growth was gloomy as 3% only was recorder in non-food goods,
which had always been estimated at roughly 8%. This situation alarmed their stakeholders,
employees, shareholders as it will hamper their overall appraisal system (Reilly and Hynan, 2014).
5. Recommendations and Conclusion
Recommendations
This entry of employing information technology tools has led to the development team of
Marks & Spencer to draw an outline for a transformational program to spot a basic futuristic plan for
restoration purposes. Currently, M&S management has collaborated with Tata Consultancy Services,
who have pioneered their way of doing things by including automation through new technologies to
improve their end-to-end processes effectively. This will help in bringing significant worth to
customers and employees. This creation will push major geographical boundaries, with effective
from 1st March 2018 and has a huge impact on the workplace culture, employees, refurbishment of
stores with distribution channels and customers.
Conclusion
It is summarized about expansion of IT and its usage of tools for fulfilment of customers and
employees. This slowed the promotion of business team towards the success pathway of
improvements and developments by providing cost-proficient solutions to multiple challenges of
M&S to complete their projects on schedule. It has also described about the various malpractices’
that can occur to gain financial profits by illegally stealing private data of businesses through
hacking, forgery and various other mediums. To sum up, this implementation of IT is proving
beneficial but one must be careful while dealing to avoid any losses.
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Works Cited
Books and Journals
Aloysius, J.A. and et.al., 2018. Big data initiatives in retail environments: Linking service process
perceptions to shopping outcomes. Annals of operations research. 270(1-2). pp.25-51
Eccles, R.G., Krzus, M.P. and Ribot, S., 2015. Models of best practice in integrated reporting 2015.
Journal of Applied Corporate Finance. 27(2). pp.103-115.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education India.
Morimura, F. and Sakagawa, Y., 2018. Information technology use in retail chains: Impact on the
standardization of pricing and promotion strategies and performance. Journal of Retailing and
Consumer Services. 45. pp.81-91.
Purvis, M., 2015. Direction and discretion: the roles of center and branch in the interwar
management of Marks and Spencer. History of Retailing and Consumption. 1(1). pp.63-81.
Reilly, A.H. and Hynan, K.A., 2014. Corporate communication, sustainability, and social media: It's
not easy (really) being green. Business horizons.57(6). pp.747-758.
Shaikh, A.A. and Karjaluoto, H., 2015. Making the most of information technology & systems usage:
A literature review, framework and future research agenda. Computers in Human Behavior. 49.
pp.541-566.
Wilson, D., 2016. Marks & Spencer: the quest to master the new millennium. The Business &
Management Collection.
Zokaei, K. and et.al., 2016. Creating a lean and green business system: techniques for improving
profits and sustainability. Productivity Press.
Online
M&S official website, 2018. [Online]. Available through:<
https://corporate.marksandspencer.com/annualreport>.
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