CFPBUS003 - Information Technology and Tesco Retail Business Analysis

This report provides a comprehensive analysis of information technology's role in Tesco, a leading retail market. It begins with an introduction to IT and its application in retail, followed by a literature review exploring networking technologies, ethics, and the importance of intranet and internet in business operations. The report then delves into a discussion of IT's role in business, including communication, inventory management, and customer relationship management, along with different types of information systems and networking technologies used by Tesco. Ethical and social issues related to IT implementation, such as data security and employment, are also addressed. Furthermore, it examines the different stages of the system development life cycle and concludes with a summary of the key findings, highlighting the significance of IT in enhancing Tesco's efficiency and competitiveness. The report references various sources to support its arguments and provide a well-rounded understanding of the subject matter.

CFPBUS003
Introduction to Information Technology

Table of Contents
INTRODUCTION...........................................................................................................................1
LITERATURE REVIEW................................................................................................................1
2.1 Information Technology and Its Role in Retail Business in General....................................1
2.2 Types of Networking Technology.........................................................................................2
2.3 Ethics and Social Issues of Using Technology......................................................................2
2.4 the Importance of Intranet and internet Business..................................................................3
DISCUSSION..................................................................................................................................4
3.1 Role of Information Technology in Business........................................................................4
3.1.1 Types of Different Information System in Business ..........................................................5
3.2 Types of Networking Technology Used in Business.............................................................5
3.3 Ethics and Social issues in Selected Business.......................................................................6
3.4 Importance of Intranet and Internet in Business Organization..............................................6
3.5 Different Stages of system Development Life Cycle............................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The information technology is known as use of computer or computer system in storing ,
retrieving, transmitting and manipulating of information and data (Dutta, Geiger and Lanvin,
2015). For any business organization it is considered as the information handling and
information and communication. This report is explaining about Tesco which is consider as one
of the largest retail market in world. Tesco was founded in year 1919 by Jack Cohen. This study
is explaining the use of information technology in Tesco.
1.1 Purpose
In the retail market information technology can help a lot the organization to perform
with efficiency. The information technology can improve different actions and operation of
company. This topic is chosen to know the importance of Information technology in the business
of different industries.
1.2 Background
The development of the information technology is classified in four different stages Pre-
mechanical, Mechanical, Electromechanical and Electronic age. In the pre-mechanical age the
information is managed, stored, and communicated through the pictures, images and vocal
communication. In the mechanical age the mechanical the technology are used to manage the
communication and the electromechanical age the combination of electronic circuits and
mechanical set up to process and manage the technology. The information technology has
evolved in the electronic age. The growth of information technology is very fast and high tech in
this age. In modern time different type of advance type of systems are in operation to manager
and process the information.
LITERATURE REVIEW
2.1 Information Technology and Its Role in Retail Business in General
In the retail sector the use of information technology can help the business organization
to improves its productivity and profit by providing more convenience in information handling.
IT can be used in retail sector for multiple operation. Different type of data can be collect, stored
and processed through this technology. According to Wu, Straub, and Liang, (2015) Information
Technology can be used for customer data handling. The company like Tesco is performing
business on the international level and it is difficult for any company to collect, store and process
huge amount of data in papers or notes. Information technology can help the company to manage
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the data of customer. The handling of data and information through this help to maintain
transparency. In the different processes the tracking of data and information is easy. The
possibility of data and information synchronizing is high in information technology. The data
security and privacy is high in information technology system. This different features of
information technology can improve the actions of Tesco and can reduce the complexity of
company data handling and processing. By keeping data of consumer purchases in better order
provide opportunity to management to improve the sales of company. Tracking of data and
information can help organization to design the layout of retail store to improve the business of
store. The multiple features of IT can help the organization to perform better in market
conditions.
2.2 Types of Networking Technology
As per Laudon and Laudon, (2015) there are different type of networking technologies in
information technology system. These technologies are Personal area network, Local area
network, Wireless local area network, Campus area network, Wide area network, storage area
network, system area network, Passive optical local area network Enterprise private network and
virtual Private Network. These all type of networking technology can be used in Tesco for better
business handling. The LAN and WLAN can be used in Tesco for local management of data.
Personal area network can be implemented for use of management department for monitoring
and handling of data. Campus area network can help to achieve the monitoring in the local store.
The storage area network can be used by Tesco to store all the information which is collected
form different locations. System area network can make the information transfer and
communication good between to or more location of operation. This better communication can
improve the productivity of company. The enterprise private network is one of the best suitable
technology for organization to keep the information secured and private for better operation. The
techniques like wide area network can help the organization to perform information transfer and
processing effective at high distance. If the company is working in one city on multiple location
the metropolitan area network can be helpful for organization. This is how the Tesco PLC can
use different networking technology to improve performance and productivity of company.
2.3 Ethics and Social Issues of Using Technology
According to Baller, Dutta and Lanvin, (2016) different ethics for use of information
technology are security of information, proprietary software, ethical design and training. The
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main concern of the industry is the safety and security of data and information which is stored in
information system of company. Tesco PLC holds the important data and information of
customers. It is very important to keep the data secure of customer with in the organization. It is
duty of organization to prevent the misuse and leakage of consumer data in wrong hand. This can
cause legal action against the Tesco PLC. For the data and information security Tesco PLC can
use different methods like password protection, limited access and biometric technology.
Information technology should be used in the ethical way to reduce the difficulties for employees
and consumers. The different social issues in the implementation of information technology are
related to employment, education level of people and training & development. For the
implementation of information technology in company Tesco PLC have to perform recruitment
of skilled labour who can work on new system. It can cause a lot unemployment in market. By
using Information technology company can perform different complex operation which can
improve the performance of company but also cause of this multitasking the company need less
people to manage the operation. So, this can be considered as social issue. The other thing in this
is- to work on the information technology the employees need to be highly skilled and educated
to work with IT system. Without any training this will be very difficult for Tesco to manage their
working and productivity. These are the social and ethical issues of information technology in
retail sector.
2.4 the Importance of Intranet and internet Business
According to Schmidt, and Cohen, (2015) intra net is a private network which is
accessible to only staff and management of an organization. In the intranet of an organization
different kind of information and services are available for the employees. The information
which available on this intranet is not available for the public use or operation. This information
can be only used by company employees. This type of internal information network is very
important in different operation of organization. By this intra network the whole organization
departments are interconnected to each other. The different advantages of intranet improves the
productivity of organization. This provide the basic tool to the employees to perform daily
operations . This intranet provides the information of the latest events, outstanding tasks, new
discussions in company, relevant news and Emails of senior employees. This is very important
for corporate communication. By this network the employees are interconnected top each other
and management. This is the method of two way communication between the employees and
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management. This intranet helps the employees to give feedback to company operations. This is
not only used for virtual tools it also provides facility of automation to company production line.
This intranet helps the employees to improve the work place relations. This improves the overall
performance of organization. This technique is also used for knowledge management in the work
place. Different information regarding work procedure and company decision are conveyed
through this technique. Knowledge acquisition and knowledge through this technology. The
internet business is known as commercial transaction of information on internet. The different
operations of the business are conducted through internet. These days the internet business is one
of the most important part of the business. In this type of business the physical presence of
person is not required
DISCUSSION
3.1 Role of Information Technology in Business
The information technology is very important for the different operation of organization.
Tesco is one of the largest retail company on global level. The information management through
the different information system improves the performance of company by process the real time
data of market and company. The different role of information system in business are
communication, inventory management, management of information system and customer
relationship management (Howell, van Beers and Doorn, 2018). Information technology plays
important role in the internal communication in the business. Communication is one of the most
important thing for the employee relation. Using information technology in communication help
to achieve company goals and it is also helpful to make communication effective between the
staff members. The various methods used by Tesco are company mail system and interconnected
telecommunication system.
The other thing which can be performed by information technology is inventory
management. This is very important for Tesco. As the company is performing retail business
inventory management is required must for the company. By this the company can manage the
import, export and tracking of goods in storage of company. It is important for continuity of
business. This is also helpful in security and research work of customer requirement. IT also
helps the Tesco to manage the information of the company. Different data systems are combined
through information technology in company. IT is used to represent different information of
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different various department on a single interface which provide high monitoring on company
operation. IT is also used by HRM to manage the employee relation in the organization.
3.1.1 Types of Different Information System in Business
The different type of information system used in Tesco PLC are prymid diagram of
organizational levels of information requirement, transaction processing system (TPS),
Management Information system (MIS), Decision Support system (DSS), Artificial intelligence
techniques in business and online analytic processing (OLAP) (Avgerou and Walsham, eds.,
2017). These all system or software are used by organization to manage the information and
knowledge in organization. This all information systems are used by different departments of
organization to collect, store, process and transfer data.
3.2 Types of Networking Technology Used in Business
The different networking technologies which are used in the Tesco are Smartphones,
LAN, WLAN and social media. The choice of technology is based on the requirement. The
smartphones are used in the organization for internal communication. Features of internet and
applications which are made for different purpose. The applications for messing are used by the
Tesco to make communication outside the company. This is also known as wireless connection.
The other wireless networks used in organization are telephone and radio wave technology is
also used in the communication. The other type of networks in organization are PAN, LAN,
WLAN, CAN, MAN, SAN, WAN, POLAN, SAN, VPN and EPN are used in Tesco.
This type of networking is provided to the top authority to keep the information safe
which is important for company. The local area network is used in organization for the small
group of computer operators who perform different specific operation of company (Mithas and
Rust, 2016). Wireless network system can also be used by organization to provide the mobility to
various operation. The campus network is used to maintain the communication and information
transfer in the organization. Wide area network is used to perform long distance communication
and information transaction between different units of business. All the systems with in the
organization are connected together with system area network which is required for high
productivity of company. Enterprise private network connects the employees and employer
together on a common network which is not available for public use. The VPN is used by
organization to keep the communication and data transfer secured and private to communicate
confidential information.
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3.3 Ethics and Social issues in Selected Business
There are different ethical issues can occur in a business organization. This ethical and
social issues are related to accounting, social media, harassment and discrimination, health &
safety and technology. The ethical related to the accounting department can cause a lot damage
to the company and customer. The unethical accounting practices can cause serious issues in the
organization and this type of issues lead to economic and legal troubles to the company. Now
days the Tesco is using the social media as promotion platform (Goldratt, 2017). It is really
important for the company to keep the content on company account ethical and sustainable for
company image. Effective type of content can attract consumer towards the company. Wrong
type of content can heart social values of people and employees (Rosemann and vom Brocke,
2015). These methods of social media marketing are also used to conduct communication with
consumer and target market. This can help the company to improve the productivity of company
and if the content available on social media page is not ethical then it can cause major damage to
the market share of company. The privacy issues can cause most of trouble to Tesco. Retail
companies used to store the customer data to perform business in more effective manner. The
data leak and misuse of consumer information can cause ethical, social and legal trouble to
company.
3.4 Importance of Intranet and Internet in Business Organization
Intranet and internet are used in the business to improve the performance and
productivity of company. Tesco use various type of information technology and information
system to improve the working methods of different departments (Kasemsap, 2018). The
information systems used by Tesco improve their information handling that help the organization
to control the working of company and monitoring. The e business improves the reach of
company to the consumer and this help the company to increase the profit to the company.
Intranet and internet business helps the Tesco to perform better employee management and
operation management.
3.5 Different Stages of system Development Life Cycle
The different stages of system development life cycle are planning, analysis, designing,
development & implementation, testing and maintenance. In the stage of planning Tesco form a
team of different employees and manager to plan the process to implement information
technology in company. In next step the plan is analysed by multiple teams and after this the
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design is prepared for system. In the further process the development and implementation of
technology is performed. After completion of project testing is performed to check the efficiency
of system. This is how a system is developed in an organization. In the Tesco for regular
performance this developed system is regularly put on maintenance. Frequent maintenance is
performed to manage the productivity of company.
CONCLUSION
This report is concluding brief information of information technology along with
information system. The role of IT is analysed for the business operation of Tesco PLC. The
different types of networking systems are studied in report. The social and ethical issues are
evaluated through the report. Importance of information technology and information system is
carried out by the 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.
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).
Howell, R., van Beers, C. and Doorn, N., 2018. Value capture and value creation: The role of
information technology in business models for frugal innovations in
Africa. Technological Forecasting and Social Change. 131. pp.227-239.
Kasemsap, K., 2018. The role of information system within enterprise architecture and their
impact on business performance. In Global Business Expansion: Concepts,
Methodologies, Tools, and Applications (pp. 1078-1102). IGI Global.
Laudon, K.C. and Laudon, J.P., 2015. Management Information Systems: Managing the Digital
Firm Plus MyMISLab with Pearson eText--Access Card Package. Prentice Hall Press.
Mithas, S. and Rust, R.T., 2016. HOW INFORMATION TECHNOLOGY STRATEGY AND
INVESTMENTS INFLUENCE FIRM PERFORMANCE: CONJECTURE AND
EMPIRICAL EVIDENCE1. Mis Quarterly. 40(1).
Rosemann, M. and vom Brocke, J., 2015. The six core elements of business process
management. In Handbook on business process management 1 (pp. 105-122). Springer,
Berlin, Heidelberg.
Schmidt, E. and Cohen, J., 2015. The new digital age: Reshaping the future of people, nations
and business.
Wu, S.P.J., Straub, D.W. and Liang, T.P., 2015. How information technology governance
mechanisms and strategic alignment influence organizational performance: Insights
from a matched survey of business and IT managers. Mis Quarterly. 39(2). pp.497-518.
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