Enterprise Resource Planning Systems: A Tesco Case Study Analysis

This report provides an overview of Enterprise Resource Planning (ERP) systems and their application within Tesco, a major UK retail chain. It begins with an introduction to information systems and ERP, followed by an analysis of the benefits of ERP systems for Tesco. The report explores how ERP systems integrate various business resources, improve efficiency, and support decision-making. It discusses different types of information systems, including Transaction Processing Systems, Decision Support Systems, Management Information Systems, and Online Analytical Processing Systems, highlighting their roles in business operations. The core of the report focuses on how Tesco utilizes ERP to manage costs, plan resources, customize user interfaces, improve customer service, and standardize business processes. The conclusion emphasizes the importance of ERP and information systems in enhancing customer satisfaction, identifying market trends, and achieving core competency in the competitive UK retail market. The report underscores the critical role of technology in Tesco's business development and its ability to adapt to evolving market dynamics.

MANAGING
INFORMATION
AND
TECHNOLOGY
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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
Information Systems....................................................................................................................3
Enterprise Resource Planning System.........................................................................................5
Benefits of ERP Systems for Tesco.............................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9
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INTRODUCTION
Enterprise resource planning is management process of all the resources which are
available in the business organisation to develop effective productivity and achieve objectives
(Shen, Chen and Wang, 2016). As business has different resources and different activities to
utilize those resources ERP helps to integrate all the resources in a system and reduces efforts of
businesses. changes in the trends and evolution with higher competition has led to increase in
digital technology to maintain all the information in form of system to reduce the time in
maintaining all the information in documents effectively. There are many types of information
which ERP can analyse to identify its opportunities and achieve them successfully. As it is
business management software which is developed according to needs and usage of particular
business to increase its performance and gain higher profitability in market. this also helps to
maintain all the activities from operations to sales in very cost efficient way which also increase
the chances of company to achieve core competency in market effectively. This report has a brief
information on enterprise resource planning system for Tesco. Tesco is a retail supermarket store
chain in UK and provides groceries and food products to its customers. Due to increase in the
size of the company it is also very essential for the company to analyse all the benefits and
drawbacks of ERP in the organization. This report also provides effective understanding
different types of information systems and ERP systems to identify all the analytical advantage
of both system can provide in the high performance of Tesco to compete in market and achieve
core competency. Due to increase in threat in retail industry it is also very essential for company
to reduce its cost as low as possible and earn higher profits to grow rapidly. This also helps
Tesco to become leader in market and gain higher profit margins effectively.
Information Systems
Management information system is the effective collaboration of different information of
business organisation. Management information system is the collection of data which is stored
in the computerised format in digital storage (Law, 2019). This helps business organisation to
understand all the activities effectively and make better decisions to grow in market to increase
profit margins effectively. The stored information is used in effective manner by generating
different charts and diagrams which also reduces the difficulty to understand the large data in
less time. It lao reduces the cost of operation of the business organisation and maintain the
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performance of internal environment by analysing all the current trends effectively. There are
different types of management information system which helps business to gain better
opportunity to control and manage activities which helps to reach their objectives effectively.
Transaction Processing System
This system is used to collect all the information which is done in the regular basis to
increase the efficiency of business organisation. There are many activities are done in one day in
a business which cannot be calculated due to lack of proper information (Kurbel, 2016). As
transaction processing system helps business to record of all the monetary transaction which
helps to evaluate the cost and profits. This also helps the organisation to determine the financial
position in the market to archive core competency and profit margins effectively.
Decision Support System
Decision support system is very effective in proving the information of business and
market to top-level management to make effective decision. This system helps business to grow
by analysing all the information and motivating the efficiency of internal environment. This also
helps management to develop effective decision which improves efficacy of business to achieve
core competency in market and gain higher profit effectively (Saade and Nijher, 2016). Decision
support system helps to solve issues and problems which are arising in the operation of business.
All the internal and external business environment data is collected by this system to analyse the
risks and opportunities which increase the productivity to leadership in market effectively. There
are many factors which also impact the business indirectly which are also identified to make
effective strategies to resolve the inefficiency of business in the market.
Management Information system
This information system is used to collect all the information from the internal and
external resources and use it to manage all the human resources of the business organisation. Due
to increase the information system it also increases the potential of business to recode all the
activities and achievement of employees to evaluate their overall performance at the end of
period (Sandoval-Almazán and et.al., 2017). This system also helps to analyse the total sales in
the simple charts which also helps the department heads and managers to formulate effective
action plan to increase the potential to achieve the objectives of company effectively.
Online Analytical Processing System
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Increase in the use of digital tools it is also very essential for business to adopt this
information system which help to increase the digital presence of company in market. With the
help of analytical tools it helps to determine different trends of customers. Increase in the use of
social media and other online website also increases the customer interaction opportunity fin this
system to gain better information about all the customers. This develop effective understanding
about need and wants with likes and dislikes based on the questionnaires or digital tracking
which enables business to know which sites were viewed the most to evaluate the preference and
taste of customers in current market condition. This system also helps to increase the efficiency
of products and services to improve customer satisfaction and profitability to compete in market
and attain core competency in digital activated market.
Enterprise Resource Planning System
Enterprise resource planning system is integrated as essential information collection
software which increases the connection between all the functional and operational activities of
business organisation. This also helps to analyse all the factors which are used to develop better
and effective to increase the portal of the company effectively (Jackson and Krieg, A., 2019).
This also helps the company to collect the information about alternative resources which can
increase the efficiency of business with high quality of services effectively. It is the type of
software which is helps to connect all the departments of business as one to gain better decision
making power and increase the efficiency of business to gain higher profit margins effectively.
ERP system provides higher productivity to business by determining the available
resources which is potential to grow business and generate higher revenues effectively. It also
provide better analytics and report of data to identify financial position of company in the market
and also to invest. It impacts the market share to compete in market effectively. There are many
factors which also help to increase the potential of the business organisation. due to increase in
the technology war it is also very essential for business to adopt ERP with latest features which
can also be integrated with internet to provide better information and make effective strategies
effectively.
Cloud ERP System
In this system all the information of the business is stored on the artificial storage using
the internet platform. This also increases the data protection and also focuses on innovating and
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increasing the efficiency of business effectively. This system also uses effective technology to
increase the potential of the business. This also helps the reduce the cost of operation of business
due to high storage. this also increases the transmission rate of data from one location to another
effectively.
On Premise ERP System
This is the types of ER system which run on the server of the business to transfer all the
data within the organisation effectively (Alyousef and et.al., 2017). There are many factors
which also helped to increase the efficacy of company to compete by protecting the data from
cybercrimes which can be possible in the cloud ERP easily.
Hybrid ERP System
Hybrid ERP system is the integration of all both cloud and on premise ERP system which
also helps to increase potential by gaining the advantages of both the systems effectively. Hybrid
ERP system is the most effective ERP system which also helps to increase the customer
relationship management. However it is expensive than other ERP system which increases the
cost of company to implement this system in the organisation effectively.
Benefits of ERP Systems for Tesco
ERP is very essential for business organisation as resources are the key factor which
helps to increase the performance of organisation. Tesco uses this system which provided
effective understanding for business to invest in the right resource and increase the return on
investment with higher profit margins (Bryson, 2017). ERP system helped Tesco to integrate
their employee performance with the system to analyse the overall performance of workforce
which helps them to identify the total cost in the operation of the business activities.
Focused IT Costs
ERP system helps Tesco to reduce their technology related cost due to high efficiency
and durability. The advanced features of the system of Tesco also help the company to use the
system for long term with high efficiency and gain better information about available resources
effectively.
Resource Planning
Tesco need to analyse all the resources due to high competition in the market which helps
to increase the cost efficiency by developing effective strategies. ERP system of Tesco increases
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the efficiency of company to forecast the resources in the future by analysing eh demand and
supply and market conditions effectively (Ilmudeen and Bao, 2018).
Customised User interface
As retail industry has many resources and many products which needs to be maintained
effectively and with the customised system it is very effective for Tesco to understand all the
required information in less time to develop better strategies.
Customer Service
ERP system is also very effective in understanding the issues and problems of customers
to resolve them provide effective understanding about all the information which can increases
the satisfaction of the customers effectively. This system also increases the customer base and
loyalty to gain higher profit margins.
Standardised Business process
Tesco need to increase their consistency of product quality and services and with the help
of ERP System Company can easily set quality standards in procurement of resources in low cost
to increase the growth opportunities in market and compete effectively (van der Pas and
Walczuch, 2018).
CONCLUSION
This report concludes that it is very essential for business to adopt management
information system and enterprise resource planning system which helps to increase the
efficiency of business to gain higher profit margins and achieve core competency. Report
discussed the importance of data which helped to develop new products and services to attract
new customers and increase satisfaction level of the existing customers effectively/ this also
helped the company to develop better opportunities by analysing the future trends with the help
of ERP system and achieve those opportunities with the help of management information system
effectively. It was analysed that ERP helped organisation to gain better cost efficiency and
maintain the quality of their products effectively. ERP provided better vision to develop
strategies ad increase the efficiency of the company effectively. Report also discussed that it is
very essential for business organisation to understand ERP as it helps to increase the customer
satisfaction by evaluating potential resources and integrating it with management system to
increase customer base in the market effectively. Increased competition in UK market also
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increased the efficiency determine the resources which were used by them to focus on growth
opportunity of Tesco effectively. Information system was adopted by Tesco to determine the
current market trends and determine customer behavioural pattern which also helped to increase
the efficiency of the company by formulating better services and products according to needs and
wants of customers. This also helped the company to achieve high performance in the market to
attain core competency effectively. Report described the different types of information systems
which could be used by business organisation to increase the profitability and internal stability
effectively. Information system also provided different cost effective benefits to business to grow
in market and motivate employees to achieve objectives as continuous growth prospects.
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REFERENCES
Books and Journal
Alyousef, B and et.al., 2017. Obstacles experienced by care managers in managing information
for the care of chronically ill patients. International Journal of Human–Computer
Interaction. 33(4). pp.313-321.
Bryson, J., 2017. Managing information services: a sustainable approach. Routledge.
Ilmudeen, A. and Bao, Y., 2018. Mediating role of managing information technology and its
impact on firm performance. Industrial Management & Data Systems.
Jackson, D. and Krieg, A., 2019. Between Scylla and Charybdis: Managing Information
Overload.
Kurbel, K.E., 2016. Enterprise resource planning and supply chain management. springer-verlag
berlin an.
Law, C.H.C., 2019. Managing Enterprise Resource Planning Adoption and Business Processes:
A Holistic Approach. Cambridge Scholars Publishing.
Saade, R.G. and Nijher, H., 2016. Critical success factors in enterprise resource planning
implementation. Journal of Enterprise Information Management.
Sandoval-Almazán, R and et.al., 2017. Managing information technology development projects.
In Building Digital Government Strategies (pp. 65-77). Springer, Cham.
Shen, Y.C., Chen, P.S. and Wang, C.H., 2016. A study of enterprise resource planning (ERP)
system performance measurement using the quantitative balanced scorecard
approach. Computers in Industry. 75. pp.127-139.
van der Pas, M. and Walczuch, R., 2018, July. Behavior of Organizational Agents on Managing
Information Technology. In Science and Information Conference (pp. 774-788).
Springer, Cham.
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