Analysis of IT and IS Impact on Tesco PLC in Retail Sector

This report provides an in-depth analysis of Information Technology (IT) and Information Systems (IS) within the retail sector, specifically focusing on Tesco PLC. It explores the role of IT in retail, examining various networking technologies, including LAN, WAN, and VPN, and their applications in facilitating communication and data transfer. The report also addresses the socioethical issues associated with technology, such as data privacy, access costs, and digital ownership. Furthermore, it discusses the value of intranets and the internet in business operations, highlighting their benefits for communication, data sharing, and online services. The analysis covers different types of information systems used in retail, such as MIS, DSS, and transaction processing systems, and explores the system development cycle within Tesco PLC. Overall, the report offers a comprehensive overview of how IT and IS impact the retail sector, providing valuable insights into the challenges and opportunities associated with technology adoption in this industry. This document is contributed by a student to be published on the website Desklib. Desklib is a platform which provides all the necessary AI based study tools for students.

Introduction to Information
Technology

ABSTRACT
In this report Information Technology and Information System has been analysed for
retail sector company. Different socioethical problems has been considered to evaluate its impact
on performance of organization. System Development Cycle has been analysed to evaluate the
system development process for Tesco PLC.

Table of Contents
ABSTRACT.....................................................................................................................................2
INTRODUCTION...........................................................................................................................1
Purpose...................................................................................................................................1
Background.............................................................................................................................1
Literature Review.............................................................................................................................1
IT and its Role in Retail Sector..............................................................................................1
Types of Networking Technology..........................................................................................2
Social and Ethics Issues of Technology.................................................................................3
Value of Intranet and Internet in Business.............................................................................3
Discussion and Analysis..................................................................................................................4
Role of IT in Retail Sector Business......................................................................................4
Types of IS in Retail Business................................................................................................5
Networking Technologies Used in Retail sector....................................................................5
Importance of Intranet and Internet........................................................................................6
life Cycle System Development.............................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
IT is known as use of computers and devices to store, retrieve, manipulate and transfer
data and information for an organization. Role of information technology is crucial in current
business environment. This report is providing brief information of IT and IS for Tesco PLC,and
it is a multinational groceries and general retail store which was established by Jack Cohen in
1919 in Hackney, London, United Kingdom. Different information systems used in retail sector
organization will be explained in study. This report is explaining various socioethical Problems
of Technology for retail sector company. Concept of internet and intranet will be covered in
report.
Purpose
Purpose of study is to analyse the and explain use of IT and information system in retail
businesses. Importance of IT and Information System (Information System) is explained for
Tesco Public Limited Company. In current time, IT and IS both are important to conduct
business successfully in global competitive market. Various type of information technology are
used by organization to collect, store, process and analysis business data and information.
Background
IT is originated with the invention of computer. First computer was introduced by
Charles Babbage in 1822. This invention has changed the future of information handling.
Initially access to IT was difficult and expensive but with evolution of technology and
semiconductor devices made this technology much cheaper and highly accessible. In year 1951
computers were introduced to business but limited to calculations and with the development of
technology it has occupied most of action and operations in business organizations. In early 21
century it growing and developing faster then ever.
Literature Review
IT and its Role in Retail Sector
According to Babu and Manukonda (2018), IT can be considered as a design, study,
implementation, development, management and support of all the IS based on computers, these
information systems can be classified particularly as computer hardware and software
applications. In other words, it can be referred as use of any type of computer, networking,
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storage and several other tangible devices, infrastructures and processes for the purpose of
creating, securing, processing and transfer of all forms of electronic data.
As per Nguyen, Newby and Macaulay (2015), In a recent period of time, IT has played a
major role in growth and development of retail businesses. It helped these business majorly in
globalization of retailing which is one of the most essential significance in expanding their
businesses. Control of data and information with market knowledge provided the retail sector a
key for obtaining a competitive advantage in the specific sector. All the transactions are being
involved in the use of IT as it is a simple process of retailing that have deployed more advanced
retail information.
As per the view of Alimudin and et.al., (2018), it has influenced retail businesses in a
positive manner as it helped in improving the capability of these businesses in responding to the
emerging marketplace by providing enhanced flexibility and speed. There are several other
aspects of IT which are used by retail businesses in order to analyse customers data for
enhancing differentiation, and for working in a effective manner, retailers used one system which
is working across stores for the purpose of ensuring that stock is being utilized effectively and
improving processes of businesses.
Types of Networking Technology
Networking Technology is used to connect two or more systems for effective
communication, data and information transfer. In business organization various types of
networking techniques are used. According to Schwalbe, (2015) in retail sector role of
networking technology is most important to maintain communication information between
different people and departments in organization. There are various type of connecting
technology are utilised in retail sector company. Main work of this technology is to make
effective communication between employees and system through wired or wireless connection.
By using networking technology business organization can improve the data and information
transfer speed between systems and people and it is also applicable for long geographical
distance.
As per Andrade and Doolin, (2016) selection of networking technology is depended on
the objective and purpose of company. For short distance communication and information
transfer organization can use Local Area Network and Wide Area Network as per size and
function. For communication with in organization Campus Area Network are used. To
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communicate with other companies Metropolitan Area Network is used by companies for fast
communication and better information transfer. In data process and information storage company
use System Area Network and SAN. VPN and EPN is used by organization. In retail sector
companies leader and manager use personal Area Network for storing and processing
confidential business data. That is how retail company can use different networking technology
to handle various types of data.
Social and Ethics Issues of Technology
According to Laudon and Traver (2016), there are several ethics and social issues which
influences retail businesses in using technology. These issues can be classified in five categories
which includes data gathering, privacy, access costs, security liability, digital ownership and
gathering of data. These are the major issues which are to be considered while using technology
in retail businesses.
As per the view of Strand and Funtowicz (2016), Privacy of personal data of consumers
are to kept confidential and it should not be used or accessed by unintended sources in order to
prevent any unlawful activity, as data breaching is a crime according to legislation. Retailers
have a responsibility to monitor that their employees are involved in a safe working habits.
Another aspect of ethics and social issue to retailers is digital ownership, which can be referred
as digital mediums that have allowed informations to flow more freely than before, retailers
needs to ensure that copyrights of other businesses are not being used by them in order to
conduct a business according to legislation.
As per Veruggio, Operto and Bekey (2016), the major issue which is faced by retailers in
order to use information technology is access cost, there are several access costs for using
technology that is to be considered while utilizing technology for preventing any unlawful
activity. Lastly, one of the most essential part in retail business is data gathering which was
become an issue for the retailers to gather data by using technology as there are several rules and
legislations regarding data collection which are to be strictly followed by every business entity
for preventing any conduct of unlawful activity in the business.
Value of Intranet and Internet in Business
Internet is a global connection system that sues the TCP or IP to Transfer data via various
type of media. It is also considered as network of exchanges. Connection can be made to internet
by guided, wireless and fiber optics technology. According to Avgerou and Walsham, (2017)
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there are different benefits of internet for business organization. Internet help the firm to collect
important information and data of consumer and business market. Better connectivity,
communication and information sharing can be achieved through internet and it can provide
better opportunity to organization to develop productive and efficient mapping of systems and
contact information. It can also help the company to perform search for relevant data which is
essential to make decision for innovation and change. Internet is capable of providing online
banking services which is flexible for operation of retail organization. For example Tesco PLC
uses internet to conduct business with high profit by collecting important market conditions and
trends.
As per Hills, (2018) Intranet is a personal network that is used by organization to perform
communication with in the company premises. It is also can be considered as interlinked network
of system like Local Area Network or Wide Area Network. The basic concept of intranet is
connections through one or more then one gateway systems to external internet access. Intranet
is important for organization because it provides different benefits to company. With intranet
better international communication with organization can be achieved with in company. At a
same time multiple employees are able to use the same resources and it can reduce the operation
cost of retail sector company. With better communication company will be able to provide better
and quick service to customer. As a result, it will help the firm to increase productivity. This is
how intranet is important for internal functionality and communication for company.
Discussion and Analysis
Role of IT in Retail Sector Business
Better information system is need of business organization and it can help the companies
to make right decisions to improve productivity and performance in market place. Retail sector
industry have to deal with different kind of data with in business process to maintain productivity
of company and provide better shopping experience to consumer (Chaison, 2017). Information
Technology also help Tesco PLC to improve their data collection process, data storing process
and processing to develop better business strategy for the business. Advance technology for
information and data handling can help finance, Human Resources, inventory management,
production and marketing department to improve there actions for effective management.
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Types of IS in Retail Business
There are various IS are accepted in organization which are-
MIS- This information system is used in retail sector organization like Tesco to store, collect and
process data with in organization to improve the functions of each department (Hills, 2018). This
technology is used to manage and monitor the data which is collected from various departments
of retail store.
Decision Support System- it is data processing technology which is used by Tesco PLC to
improve the knowledge of leaders and support them to take right decision for company by
provide better organized result of data, which is collected from market place and company
employee.
Transaction Processing System- It is a operation level system that is used by Tesco Plc to
manage the transaction data of goods transfer. It is mostly used in the inventory management of
store to keep data and information of goods transition. Transaction processing system provide
better organised data and information to MIS and this leads to effective data analysis. This
system use different tracking sensor to keep record of each product's movement.
Workflow System- Workflow System is used by Tesco PLC to manage the operation process with
in the organization. This technology handle various process that are used by company to move
product from inventory to store (Melián-González and Bulchand-Gidumal, 2016). The work of
this software is to manage the machines and people to perform a certain task with predefined
process. This can improve the operations of Tesco Store.
Networking Technologies Used in Retail sector
Networking technologies are used by company to maintain effective communication
between people and systems in store and it is important for organization to use this tools in order
to manage the work and processes on the company floor by through improved communication.
LAN (Local-Area-Network)- LAN is used by organization to maintain the communication with
in small group of computer systems. Basically this networking technology is used for corporate
offices. Through this network data and information sharing with in small area can be processed.
Also the systems that are connected to network are able to access resources of main domain
(Avgerou and Walsham, 2017). This help Tesco employees to get in touch with their leaders and
managers.
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SAL (System Area Network)- SAL is a technology which used by Tesco to connect different
systems of departments with main server system to collect and process data for better monitoring
and performance of store. In this network this systems are connected with a interface that can
help system operator to perform tasks as per the process for high efficiency. For example it used
by manager to get performance and operation data from inventory and floor transactions to
maintain the availability of product in the store.
SAN (Storage Area Network)
On daily basis there are many transaction done by company and it is difficult to manage
whole data together. SAN is used in Tesco to collect and store overall data that is collected on
daily basis. By this networking all data processing units are connected with the storage device.
Storage Area Network provide better direction to data transfer with in the Tesco to keep records
of transactions in organized way.
Importance of Intranet and Internet
Internet
Inter net is a way to make connect with different people around the world. It also can be
used to get different kind of information form various resources. Internet is now consider as a
key factor that can provide market place advantage to company. Internet is a vast concept that
comes with different benefits. It can be used by Tesco for different operations and processes to
gain higher productivity. For example E commerce is one of the fastest growing field in retail
sector (Andrade and Doolin, 2016). Through this companies are providing flexibility of time for
shopping and this is helping the organization to increase profit without increasing too much
efforts. Internet is also helping the organizations to promoting their product and services for
larger audience in order to increase market share. Internet is also useful to collect information
from market place to perform innovation in organizational process.
Intranet
It is a private network which is accepted by organization to maintain transfer of data &
information transfer with in work place. Intranet is important for company because it is not good
to process data and information of company on the public server. Public server are not secure for
company data. To keep the data and information transfer secure and private organization. Also
this personal network used by Tesco is faster then public network. It is how retail sector
organization use the Intranet to transmit information with in work place.
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life Cycle System Development
The system development Cycle is a process or plan to implement change and technology
in organization. These steps of system development are-
Planning- In this phase organization make the plan to implement or develop information
technology which is required for Tesco (Schwalbe, 2015). It is a paper overview of complete
process. This planning help company to follow a specific process to throught implementation
process.
Analysis- As per the business needs and process needs management of Tesco evaluate the
current status of company to reduce the errors in process.
Design- According to needs and requirements of company specific design of system is pre[pared
in this step.
Implementation- After finishing designing engineers of Tesco start construction of system and
perform testing on it to check its efficiency. Also training and development sessions are
organized to train employees for new technology. At the end of this step new system installed by
management and technical team of organization.
Maintenance- It is post implementation stage for system development and in this step time to
time maintenance is performed by company to keep system technically healthy.
CONCLUSION
This study is concluding important of information technology and information for retail
sector company Tesco PLC. Role of IT and IS has been evaluated on the criteria of success for
Tesco. Different social and ethical issues has been analysed to know their impact on company.
Different types of networking technology has been studied to analyse performance of company
with it. Concept of internet and intranet is analysed to know difference between it for better
implementation for technology in organization. All the topics related to Information Technology
and Information System has been analysed to improve the system development process for Tesco
PLC.
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REFERENCES
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