CFPBUS003: Information Technology in Tesco - Analysis of Systems

This report examines the role of Information Technology (IT) in the retail sector, using Tesco as a case study. It begins by exploring the impact of IT on the success or failure of retail businesses, referencing literature on the topic. The report then delves into ethical and social issues relevant to running a business, followed by an overview of different networking technologies used in organizations. The importance of the internet and intranet for businesses is discussed, alongside an explanation of the system development cycle. Finally, the report analyzes the potential benefits and drawbacks of Tesco's investments in IT, drawing conclusions based on the collected information and analysis.

CFPBUS003 - Introduction to
Information Technology

Executive summary
It has been described about the ethical and social issues that affect business activities. For
the chosen organization success or failure of information system has been evaluated. The
importance of internet and intranet has been covered in report. For the particular organization
system development cycle has been explained in report. The whole information collected inn
study has been analysed to check the benefits and drawbacks of system.

Table of Contents
INTRODUCTION...........................................................................................................................3
Literature Review ............................................................................................................................3
Role of IT in failure or success of Retail sector...........................................................................3
Ethical and Social Issues in Running a Business.........................................................................4
Different Type of Networking Technology in Business Organisation........................................5
Importance of Internet and Intranet.............................................................................................6
Different Stages of System Development Cycle.........................................................................7
Discuss about the Potential benefits and drawback of Tesco investing in the information
technology. ..................................................................................................................................1
CONCLUSION ...............................................................................................................................2
REFERENCES................................................................................................................................3
2

INTRODUCTION
IT (Information Technology) is wide subject related with all aspect of processing and
managing information, especially within large company or organization. IT helps a lot to
managed daily activities in business related to internet and computer based technology. Most of
the organization build IT department in physical structure and hire talented people belongs to IT
skills and have great knowledge. The present reports is based on IT used by TESO as working in
Retail sector. It explains role of IT in failure or success of firm and also justifies social and
ethical issues pertain to running businesses. This study define differentiate between various types
of networking technologies and clarify importance of internet and intranet in chosen business.
Furthermore, clarifies different stages of system development life cycle.
Literature Review
Role of IT in failure or success of Retail sector
According to Schwalbe, (2015) Information technology refer to anything connected to
computing technology such as hardware, internet, networking and software. Many large
organization in UK retail sector now have its own It department. For example, TESCO have
information technology management as they manage computer programs and other technical
fields within business. IT used for computer and computers networks, it specially includes all
layers of all program within the company from physical hardware to operating system, storage,
databases, applications and servers. Telecommunication techniques including business phones
and internet is also part of firm's IT infrastructure. Discussed by Bloom, (2014) computer
department within organization or sector is also called as IT department. It is used to store,
distribute, manipulate and create information within business.
IT role is to gaining knowledge through specific information and data, information
technology play essential role in success of retail sector companies. It helps to provide right
people with accurate information at right time. With the support of IT department company can
be able to focus on core business activities and functions. Information technology department
contribute to reduce cost and managed overall operations operating expenses which is beneficial
for business growth and success in marketplace. As per view of Piotrowicz, (2014) IT improves
the productivity and work performance of TESCO that help to run business effectively and
increase more profit rather than before. Information technology played crucial role in automating
such complex issues by introducing customers friendly resolutions.
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In TESCO IT gives benefits as for success and growth of business within UK, with the
help of information technology business able to managed their marketing activities and reach
their target customers easily. Laudon, (2015) elucidated that company workers gather all the
information and data about consumer reviews in context of products or services. As it contribute
to collect details about market trends and experience of people after purchasing goods. IT is the
backbone of company or business that give many benefits to them which help to achieve success
and generate more revenue better than before. Organization with IT department able to
communicate with people and existing consumers and identify their needs which is essential for
firm's as to gain profit in market.
Andrade, (2016) argued that email services, chat facilities and internal company
billboards is the major functions of company which is handled and managed by Information
Technology department. In business organization solve issues of clients and for that
communication is one of the best way to resolve, with the help of IT department they can easily
communicate. IT role is defined as increasing productivity and enhancing performance of
workers that give benefits to overall operations. It helps to sort information related to services or
goods such as stock control using sophisticated databases.
Ethical and Social Issues in Running a Business
According to Andrade and Doolin, (2016) different ethical issues in the organization can
influence the working and procedure of company. Various ethical issues in the organization are
related to both employees and customers. All the company need to do is to maintain the
performance of organization with ethical and sustainable manner. There are different functional
departments of organization. It is important for the organisation to maintain its action in ethical
way. This helps the organization to keep its performance high. In the marketing department
company uses different methods to perform marketing of product. For the promotion different
type of strategies are used by organization. It is very important to keep the promotion in ethical
way to attract all type of customer towards the company. Otherwise, it can cause financial and
legal trouble to company. The other thin is the product itself. If the quality and packaging of
product in not in the ethical way it can damage personal and social values of particular
community which is not good for productivity and performance of organization. All the
organization need to change are the policies and procedure of organization good for consumer
and society.
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As per Schnoll (2015) the organization perform on the base of the performance of
employees. To behave in ethical way with the employees can help the organization to prevent the
situation like conflicts and legal troubles. For the ethical perspective government has decided
different acts to protect the rights of employees. Which must be followed by company. The
behaviour and performance of employees is based on the employee satisfaction level. If the
employee of organization are satisfied with their working and behaviour of management then it
will improve the performance of organization. This different ethical also can be considered under
the social issues for organization which are need to solve by company. So, it is really important
for the organization to improve its productivity by supporting employees and customer by ethical
work procedure and products.
Different Type of Networking Technology in Business Organisation
According to Sittig and Singh (2015) there are different kinds of networking technologies
are used by organization. This networking technologies are important to perform internal and
external communication in the organization. To conduct the business in the effective way the
company employees need to perform communication for better and effective information
transfer. For the inter-organizational communication different networking technologies used by
organization are personal area network, local area network, wireless local area network, campus
area network, system area network and enterprise private network. This different technologies
can help the organization to perform effective communication with in the organization. The local
area network can be used to connect the various computer systems together with the main
computer. WLAN can be used to provide mobile communication for the workplace. Campus
area network can be used in the organization to keep all employees on single portal. The
enterprise private network can be used to keep the information of company secure from external
organizational elements. This is how a organization use different networking technology to
perform internal communication in company.
As per Andrade and Doolin, (2016) there are different networking technology used by
organization are Virtual private network, storage area network, wide area network and
metropolitan Area network. This all kind of networking are used by organization to perform
external communication in the company. For different purposes organization need to perform
external communication. When an organization is working on the different location it is
important to use a specific network to improve the speed to information transfer and process. The
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wide area network is used by the organization to communicate at long physical distance. If a
organization is working on different locations so it is a good way to transfer information of
perform communication. The speed of communication is high in wide area network because the
traffic on this connection is very low. Metropolitan area network is used for local communication
with other branch of company with in a single city. This is the most suitable way to perform
information transfer with high security. The storage area networking can be used for high
distance data storing. This method improves the speed of data access for company whose
different units are working on different locations. The system are network is the method to
connects the different systems of organization at high server speed. This can be used for both
long and shorter distance. This is how different networking technologies are used by
organization to perform communication.
Importance of Internet and Intranet
As per Baller, Dutta and Lanvin, (2016) Internet is the most important thing for business
organization. It helps the business in different ways. Internet can be used for different purposes
with in the organization. For the purpose of marketing it is the best and effective way to attract
consumer towards the company product and services. In the digital marketing internet plays
important role. Internet improves the reach of organization to larger number of audience. It also
can be used to develop specific business plan for organization. The various kind of information
can be collected by internet. In market data collection the internet is the best effective way.
Internet is cost efficient and time saving for organization. The behaviour of customer also can be
tracked by the internet. This online survey can improve the productivity of organization. It also
can improve the productivity of business by providing 24 * 7 services to customer. The online
business also can be used by company to increase the overall profit and this will lead to better
consumer satisfaction.
According to Lloyd, (2017) internet is the best to provide online support to the customer.
In the normal method the consumer support is slower and time taking process but through
internet it is faster and satisfactory for customer. Through fast support to the customer can be
provided in the real time which improves the reliability of company. It is also can be used to
monitor and performance tracking of company. Internet also can be used to perform recruitment
and selection on the vast level and by this vast selection company have larger options to get
required talent. This also can be used to conduct training and development of employees. This
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method of employee training is faster and effective cause company can directly track the
performance of employees on real time. The information and money transfer by online banking
provide advantage to company. Internet also help the organization to grow its business on the
international level. Different other technologies like cloud computing and cloud storage provide
more facility to organization that provide mobility to business. This is how internet improves the
business of an organization.
Different Stages of System Development Cycle
As per Schwalbe, (2015) in the different organization various methods of system
development are used. The general steps of system development plan are as follows information
gathering, analysis, designing, implementation, deployment, system testing and maintenance. In
the system planning this specific method is used to develop the whole new system in
organization. Initially all the information of required data is collected for the better
implementation of system. This process is also including the specific information of system
itself. In the next process the all collected information is analysed to conclude the better way to
implement the system development. The next step of system development is system designing.
In this process of system designing the design of system is decided by technical team. After
designing the system is implemented on the required place. In the system implementation step
the system is prepared technically in the organization. After the implementation of system
deployment of system is performed. With the deployment testing of the system is performed to
check the process and functionality of system. After the system testing the system is used by
organization and for better working of software the time to time maintenance is performed by
technical staff.
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Discuss about the Potential benefits and drawback of Tesco investing in the information
technology.
TESCO Plc is a British multinational retail organization with headquarters in the Welwyn
Garden city in UK. This organization is transforming the business into the digital technology and
also increase the productivity and profitability in marketplace. Tesco is the fastest growing
retailer in UK and sales their 43% product through online. It has digitally transformed their
consumer experience, operating model and business model through the investment in the website
development. TESCO has continuously investing in the information technology to develop the
Omni-channel consumer experience (Belderbos, Jacob and Lokshin, 2018). It helps to maintain
the competitive advantages in global marketplace. Furthermore, Tesco has used the smartphone
technology to digitally communicate with the customer and identify their need or requirement.
For Example- TESCO has launched the application that could expand and provide the
functionality which help for consumer to check the information about particular products through
mobile application. In this way, TESCO could overcome the complex situations where it
possible the user face scanning through barcode in self-check machine by using innovative
technology.
Benefits:
In TESCO, it is collecting and analysing the details of product through the website. It
also promoting the product by using platform and tools. Demographic information about the
customer is important to build the loyalty and trust between customer and organizations.
Information technology has changed the popularity of TESCO in marketplace (Madon and
Krishna, 2018). It is positively impact on the sales, production, competitor brands etc. By
investing the information technology in the TESCO become innovative concept that may test
against the realities in the global market. Manager of TESCO has established the connection
between supplier through electronic medium. They are sending the details about the stock, sales
and purchased over the communication network.

Drawback:
TESCO was used the information technology to automate control the services such as
accounts management, finance and payroll control etc. Retailing business including the wide
range of product so that it required the complex system to handle the complex situation in proper
manner. In TESCO, employee may have limited knowledge about the modern technology so that
it is necessary the specialist that deals with the automation method or process. It is main
drawback of business when organization can afford only technical qualified employee to operate
the automation system in effective manner. Another way, it cost of investment in the information
technology is very high. Sometimes, Many IT project may fail and increase the risk of failure
due to resources (Belderbos, Jacob and Lokshin, 2018). On the other hand, the most common
issues in the TESCO is Spyware that easily steals the sensitive information of consumer and
employer because the data can be stored in the database system of company. It has chances to
lost the information by hackers. A security risk is simple process for attacker to stolen the
information by using smartphones and other hardware devices. In this way, TESCO can improve
their security aspects to follow all rules and regulation to maintain the penalties and risks.
CONCLUSION
From above study is has been summarized that IT play vital role in TESCO business
success and growth in marketplace. It helps to managed their functions and operations
effectiveness and enhance productivity the most. Social and ethical issues impact on business
and its activities which is not suitable for them. It has been concluded that LAN, WAN, MAN is
the different kinds of networking technologies used by large businesses all are different from
each other based on working styles. Furthermore, internet and intranet is very essential in
business as contribute to garb attention of customers and business investors. System life cycles
has seven stages or phases used by business within their functional structure.

REFERENCES
Books and Journals
Andrade, A.D. and Doolin, B., 2016. Information and communication technology and the social
inclusion of refugees. Mis Quarterly. 40(2). pp.405-416.
Andrade, A.D. and Doolin, B., 2016. Information and communication technology and the social
inclusion of refugees. Mis Quarterly. 40(2). pp.405-416.
Baller, S., Dutta, S. and Lanvin, B., 2016. Global information technology report 2016. Geneva:
Ouranos.
Belderbos, R., Jacob, J. and Lokshin, B., 2018. Corporate venture capital (CVC) investments and
technological performance: Geographic diversity and the interplay with technology
alliances. Journal of Business Venturing. 33(1). pp.20-34.
Bloom, N. and et.al., 2014. The distinct effects of information technology and communication
technology on firm organization. Management Science. 60(12). pp.2859-2885.
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.
Lloyd, I.J., 2017. Information technology law. Oxford University Press.
Madon, S. and Krishna, S., 2018. The Digital Challenge: Information Technology in the
Development Context: Information Technology in the Development Context. Routledge.
Piotrowicz, W. and Cuthbertson, R., 2014. Introduction to the special issue information
technology in retail: Toward omnichannel retailing. International Journal of Electronic
Commerce. 18(4). pp.5-16.
Schnoll, H.J., 2015. E-Government: Information, Technology, and Transformation: Information,
Technology, and Transformation. Routledge.
Schwalbe, K., 2015. Information technology project management. Cengage Learning.
Sittig, D.F. and Singh, H., 2015. A new socio-technical model for studying health information
technology in complex adaptive healthcare systems. In Cognitive Informatics for
Biomedicine(pp. 59-80). Springer, Cham.
Online
IT - Information Technology. 2017. [Online]. Available through :
<https://www.webopedia.com/TERM/I/IT.html>.