Implementation of IT in Tesco: Project Objectives and Alternatives

This report provides a comprehensive analysis of an IT implementation project at Tesco, a major international grocery retailer. The project focuses on addressing data management and decision-making challenges within the company. The report begins with an introduction to Tesco, its business operations, and the identified problem areas. It then outlines detailed project objectives, including enhancing decision-making through IT, improving business processes, and reducing data processing difficulties. The core of the report explores decision-making alternatives, specifically the implementation of a Management Information System (MIS) and a Transaction Processing System (TPS). Each alternative is thoroughly discussed, detailing its functionalities and benefits. The report provides a cost estimation for both alternatives, comparing their implementation expenses. Furthermore, it analyzes the best alternative based on cost and sustainability considerations. Finally, the report concludes with a discussion on sustainability principles in project management economics, offering recommendations for Tesco's IT implementation strategy.

Running head: IMPLEMENTATION OF INFORMATION TECHNOLOGY IN TESCO
Implementation of Information Technology in Tesco
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1IMPLEMENTATION OF INFORMATION TECHNOLOGY IN TESCO
Table of Contents
Introduction......................................................................................................................................2
Tesco Company...............................................................................................................................2
Project Problem Analysis................................................................................................................3
Detailed Project Objectives.............................................................................................................4
Decision Making..............................................................................................................................4
Suggested alternatives to consider...............................................................................................4
Cost estimation for the alternatives.............................................................................................7
Best alternative with lower cost...................................................................................................8
Sustainability considerations- Principles of the project management economics...........................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11
Appendix........................................................................................................................................14
1. Questionnaires....................................................................................................................14

2IMPLEMENTATION OF INFORMATION TECHNOLOGY IN TESCO
Introduction
The project is based on implementation of information technology in Tesco for reducing
the issues regarding storing as well as distributing larger amount of data. Tesco is an
international grocery retail chain with revenue of around 60 million in UK dollar (Tesco plc
2018). It is the largest retail chain based on its sales as well as revenue. The company reviewed
that they are facing difficulties to manage data while it is distributed and decision making
process also becomes critical. The management information system is implemented in Tesco to
manage its retail services and operations to make sure that the information is accessible to the
manager in form they require it. It is being designed to support work throughout offering
information for decision making purpose (Avgerou and Walsham 2017). The information
technology helps the business organization to process data in organized way, up-to-date plus
share cost effective information. The system can reduce the cost; differentiate the products as
well as services to provide customer benefits.
The project report is based on discussing the implementation of information system in
Tesco retail so that it can expand its business operations and facilitate better customer’s services.
The company is required to take decisions about handling the implementation plan of
management information system so that it can handle the problems of data exchange and share.
The project is also discussed about the decision making situations where decisions are taken to
overcome the problem

3IMPLEMENTATION OF INFORMATION TECHNOLOGY IN TESCO
Tesco Company
Tesco is one of the British’s largest supermarket retailers chain in the world. It is the first
online grocery store within UK and due to its product innovation, Tesco products helped the
company to stay ahead of the competitors into the retail and grocery sector. One of the key
success factors of Tesco are its product innovation and implementation of information
technology in business operations to drive towards organizational goals. There are different types
of businesses on which Tesco is operating such as banking, tech support, club cards, telecom and
fuel. There are various stores which Tesco are opening in UK such as Tesco Extra, Tesco
Express, Tesco Metro, Tesco Superstores and others (Tesco plc 2018). It is the popular brand
across the entire world with opening of 2,482 stores within UK and around 2,329 stores all over
the world. The revenue of the company has crossed to approximately £62.54 billion with its
operating income as £3.41 billion (the Guardian, 2017). The company is occupied 30.7% of its
retail industry as compared to its competitors such as ADSA, Morrison and Sainsbury.
Project Problem Analysis
As the business market of Tesco Company is huge, therefore it is critical to carry out the
business processes consistently. It is difficult to gather data from various online systems, analyze
data and information plus reporting of data related to decision making. Through the traditional
method of data handling, it is difficult to form, maintain as well as enhance provides inflexibility
into the business organization (Bala and Venkatesh 2015). It is difficult to prepare forecasts as
well as determine the future goals of the company. As the data are not processed properly,
therefore it is difficult to determine future requirements of the Tesco Company. It is not possible
to determine the resources and employee related data, therefore reporting is not provided with

4IMPLEMENTATION OF INFORMATION TECHNOLOGY IN TESCO
accurate as well as reliable data (Peltier 2016). There is difficult to store data as well as maintain
the employee data into the business database.
Detailed Project Objectives
The project work is based on implementation of information technology which can
reduce the problem of data processing and handling. Following are the objectives of this project
such as:
 To increase impact of the information technology for the organization’s decision
making
 To make growth in the retail industry and strategic importance
 To provide stronger growth into the information services by increasing the
competitions as well as reduce the lifecycle of Tesco’s products
 To improve business processing and communication by means of information
technology
 To provide sustainable solutions to reduce the data processing difficulties in the
future
Decision Making
Suggested alternatives to consider
After going through the project objectives, following are the solutions which are applied
to solve the problems related to manage and organize the business related data and information.
The lists of decision making alternatives are as follows:
Implementation of Management Information System

5IMPLEMENTATION OF INFORMATION TECHNOLOGY IN TESCO
In Tesco, the managers are required information technology to manage, assess and
properly running the departments. The system will provide the organization with past, present as
well as future data for finding monthly statements of its expenses that help them in decision
making (Chang 2016). The management information system is also used to find out the total
number of hours the employees are working over the period of time. The managers are using the
management information system such that it can help to understand the users more that in return
assist them in price analysis plus loyalty schemes. With the decisions to implement information
system in Tesco retail organization, the managers can easily handle sales of their products,
buying the dealings plus optimization of stock along with cost policies (Tupa, Simota and Steiner
2017). GOLD is implemented in the year 1998 with a purpose that it can manage physical flow
of their warehouse stocks. The system helps to manage the stock levels, good’s quality, stock
location as well as warehouse functions.
In Tesco, the service center is integrating the business processes occurred into the store.
The club cards are service product of Tesco that are used by the customers at the time of
shopping. MIS helped the club card to process the business operations easier as millions of
customers are using the card (Laudon and Laudon 2016). It is a key significant process to
manage the supply chains. In the business operations of Tesco Company, it is introducing a MIS
for the retail suppliers help the suppliers to deliver stock to their store throughout warehouse. It
helps to improve control over Tesco’s stock and effective handling of its returns.
Implementation of Transaction Processing System
In Tesco grocery sector, the transaction processing system is such a software which can
enable management of larger distributed systems to demonstrate the effectiveness of the current

6IMPLEMENTATION OF INFORMATION TECHNOLOGY IN TESCO
project proposal (Noe et al. 2017). The proposed information technology is a real time
processing as the system provides up-to-date information and preserves order of occurrence. It
can address different input sources. In order to overcome with the issues of transactions, the
processing system is used to collect, store as well as recover the data transactions into the
enterprise (Schnoll 2015). It offers predictable response time to the customer requests, although
it is not vital as a real time processing system. It allows the users to run program as transaction
processing permits predefined in addition to structured transactions. Each of the transactions are
of short time period and its processing activities are programmed in improvement.
The features of this system are that it can improve over performance of data transactions
with rapid response time. It is calculated by number of transactions which can process over
provided period of time. The system is able to handle both hardware as well as software issues
without data corruptions (Avgar, Tambe and Hitt 2018). The users of transaction processing
systems are normal users those can protect the employees from doing data entry errors and allow
them to correct the errors. The system has capability to increase in cost rather than it is required
complete replacement. It adds cost and updates the hardware as well as software components
without shutting down the proposed transaction processing systems (Ajjan, Kumar and
Subramaniam 2016). By means of this proposed system, there is no delay in payments along
with results of each transactions are performed accurately. Throughout delay time for the batch
processing, there are occurrence of errors. In order to improve the Tesco’s internal operation’s
performance, data is accessible into the data warehouse and backup processes are in place to
delay with the failures of system, software applications plus computer viruses.
In order to improve as well as modify the business performance of Tesco, the
organization is required to depend on reliability for transactions processing so that the customers

7IMPLEMENTATION OF INFORMATION TECHNOLOGY IN TESCO
are get their ordered products on scheduled time and there is timely delivery of the suppliers
(Ghaffarianhoseini et al. 2017). The system can enable Tesco to quickly process transactions for
ensuring smooth as well as steady data flow so that it can get processes as per the organizational
goals. It is designed in such a way that it confirms regarding then fact that client’s data is out to
process as per their needs and demands.
Cost estimation for the alternatives
From the above section, it is seen that two of the alternatives such as implementation of
management information system as well as transaction processing system are associated with
cost. The implementation costs for management information system (MIS) are included capital
cost of hardware as well as software, supporting cost over the period, service levels charge, off
site as well as on-site training throughout implementation (Batkovskiy et al. 2016). The
implementation cost will about £13,000,000 for MIS. After the implementation of this
information technology, the company will not face difficult in data sharing and transferring. The
system will provide Tesco with periodic as well as pre-determined reports which can summarize
the information (Badwan, et al. 2017). It helps the management to provide summary reports and
support towards decision making.
The second alternative is implementation of transaction processing system which is cost
less than management information system with a cost of £9,000,000 as transaction processing
system. The company is profitable by this system as it can process transactions in the
organization and help the management to perform its daily operations (Uhl and Gollenia 2016).
It is also providing data sources and information to various organizational processes. Therefore,
it is seen that both the alternatives can save the Tesco internal and external business operations.

8IMPLEMENTATION OF INFORMATION TECHNOLOGY IN TESCO
Best alternative with lower cost
After analyzing the cost of both the selected alternatives for Tesco, this section is based
on deciding the best alterative with the lower cost of both the implementation of information
technology solutions in Tesco. At the time of taking this decision, sustainability issues are taken
into considerations. At the process of selecting best alternative for Tesco, initial implementation
cost, maintenance cost, training cost and service level cost are taken so that best alternatives are
selected (Zurawski 2018). The first alternative is implementation of management information
system which is possible for the company to transfer of data by means of external information
technology, therefore its initial implementation cost is higher with approximately a total cost of
£13,000,000. At Tesco, they are combining core environment as well as sustainable solutions
with expertise of information technology for offering project lifecycle support for the client’s
management information requirements. The objective of Tesco is meet with by focusing on
sustainability as well as quality software vendors so that they can meet with sustainability
requirements (Daud and Bakar 2016). Apart from all this, other alternative is implementation of
transaction processing system which consists an implementation cost of £9,000,000. It is less as
compared to implementation of management information technology as it is operating the
transactions in the internal processes of Tesco.
Based on two of the alternatives, the best alternative and information technology solution
is management information system. This system will solve the problems of the company which
they are facing while transferring of data and information to others. This solution will improve
the external and internal business operations of Tesco by summarizing in addition to presenting
into concise reports on daily basis. This system can process data plus convert it into the
information (Zeb and Froese 2017). Management information system is using transaction

9IMPLEMENTATION OF INFORMATION TECHNOLOGY IN TESCO
processing system as the data input. It aids to integrate information which are generated by
various grocery departments of Tesco. This result can perform easier access to the data, its
accuracy plus information. In order to overcome with the company’s issues, management
information system can aid in decision making, productivity of employee plus time savings.
Sustainability considerations- Principles of the project management economics
In order to implement the information technology for Tesco, principles of project
management economics are playing a key role. Based on its principles, there is selection of
alternative among two selected becomes easier. Some of the factors are taken into consideration
while selecting a sustainable project or solution among selected two alternatives.
1. Among the alternatives, one of the sustainable solution is selected which solves the
problem of the company. The alternative should be best suited for the situations which
are recommended into the business operations of Tesco. As a sustainable solution, among
two alternatives, implementation of management information system is selected as
solution as it solves problem of the company so that the managers can transfer and
operate the external data and information.
2. There is evaluation of the two alternatives based on the implementation cost. From the
cost of implementation, it is seen that MIS cost is higher as compared to transaction
processing cost, while this alternative is selected as it provides the users with more
benefits as well as advantages as compared to other one (Schermann et al. 2016). There
should be feasibility study of the two alternatives selected to overcome with the problems
of data sharing besides transferring. It solves problems of data processing so that future
needs of the business organization is being analyzed.

10IMPLEMENTATION OF INFORMATION TECHNOLOGY IN TESCO
3. Post evaluation analysis is performed so that it can improve the internal as well as
external business operations of the selected information technologies solutions. The
project work is performed with stakeholder’s expectations so that it can provide
sustainable solutions to the identified problems with implementation of information
technology in Tesco grocery operations.
Conclusion
It is concluded that based on the decision making situations the business operations of
Tesco are improved. The problem into Tesco is related to sharing of data as well as information
as record the data. It is difficult to prepare forecasts as well as determine the future goals of the
company. In order to overcome with this problems, two of the alternatives are selected such as
implementation of management information system and implementation of transaction
processing system. Among the two alternatives, implementation of MIS is selected as sustainable
solutions as this information technology can help to understand the users more that in return
assist them in price analysis plus loyalty schemes. The company is introducing the management
information system so that it helps suppliers for delivering stock to store in the data warehouse of
Tesco. It helps to improve control over Tesco’s stock and effective handling of its returns. The
proposed system will offer the organization with historical, current as well as upcoming data for
finding regular statements of its expenses that aid them in decision making. Based on the best
sustainable practices, the alternative is selected for implementation of information technology
into their business operations so that it can overcome with the business internal as well as
external related problems.

11IMPLEMENTATION OF INFORMATION TECHNOLOGY IN TESCO
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