Information Technology Impact on Tesco Business Report

This report provides a detailed analysis of the role of Information Technology (IT) within Tesco, exploring its impact on the company's success. It begins with a literature review on the importance of IT in business, ethical and social issues associated with business operations, different networking technologies (LAN, WAN, etc.), and the significance of the internet and intranet. The report then delves into the Software Development Life Cycle (SDLC), outlining its stages from planning and requirement analysis to deployment and maintenance. A data analysis section examines how Tesco utilizes IT tools for managing various aspects of its business, including stock control and customer relations, while also acknowledging the negative impacts such as implementation costs and security breaches. The report further discusses ethical concerns related to waste management and farming supplies, as well as social issues like customer service and product quality. Finally, it highlights Tesco's adoption of new technologies, such as RFID and mobile commerce, to enhance customer experiences and streamline operations. The report concludes by summarizing the key findings and implications of IT in Tesco's business model.

INDIVIDUAL REPORT

Abstract
The present report gives emphasis on information technology, it shows what are roles o IT in
Tesco firm. It indicates the social and ethics issued by the company and how various types of
networking can be used in business and importance of internet intranet in today's retail business
and how they effect functioning of Tesco business. SDLC stages are also defined in this report.

Table of Contents
INTRODUCTION ..........................................................................................................................4
Literature review .............................................................................................................................4
Role of Information technology in the success of a business.....................................................4
Ethical and social issues associated with running business .......................................................4
Different types of networking technologies................................................................................5
Importance of internet and intranet in a business .......................................................................5
Software system Development Life Cycle .................................................................................6
DATA ANALYSIS..........................................................................................................................8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Information Technology includes application ans study of computers that helps every
business to not only store but arrange the data according their need. Tesco is world's largest
company serving customers a little better every day in stores and online is part of company. It
was founded in 1919 by east end of London. The current study outline the literature review on
Role of IT in business success and failure, and how ethics and social issues of technology affect
tesco company, different type of networks and importance of intranet and internet for companies
and different stages of software system development life cycle.
Literature review
Role of Information technology in the success of a business
According to the Avgerou and Walsham (2017) the role of information technology means
the use of software's, hardware, internet services and infrastructure to manage and distribute
information through voice, video and data. Nowadays, the success mantra of business is drive
innovation with information technology. So, the primary thing while start-up a new business is
the measures to make smart recruiting choices.
Baller and Lanvin (2016) explain in their study that the primary formula for success of any
business is drive innovation with information technology and figure out the smart choices to
make IT recruiting. It allows making better decisions in an organization to maximize the profits
and make the company more productive. The organization uses tools for better assessment,
managing and productively running their departments. Moreover, it has also improved the
resource management of an organization. It helps in maintain balance between sales of products,
buying deals, stock optimization and pricing policies.
Ethical and social issues associated with running business
As per the view of Gunasekaran and Papadopoulos (2017) the ethical issues arises when a
given decision creates a dispute with a society's moral principles. The common ethical issues in
an organization are unethical leadership, Toxic culture at workplace, discrimination and
harassment, unrealistic goals, improper use of company technology. Discrimination and
harassment is illegal within an organization because it includes the treatment of employees

unfairly. Improper use of company technology effects the privacy and leakage of personal data
of employees as well as customers.
Madon (2018) reflected that the social issues is a problem that influences the citizens of a
society. It makes difficult for the people to achieve their full potential. Discrimination in
employment practices, marketing of products considered as anti-social, export of products,
support of charitable and political causes labour unions, failure to develop key competencies,
poor communication and feedback, environment conservation, low motivation and job
satisfaction etc.
Different types of networking technologies
Theis and Wong (2018) reflects that a network technology allows businesses to send data
digitally with the help of information system. Organizational networking can be classified as
LAN, WAN, Client server, MAN, Intranet and Extranet. The expansion of requirements of
personal computers in an organization led to the need for sharing the resources like scanners,
printers and information in the form of data. Organization solved this problem with the creation
of LAN which allows computers to connect through each other. The LAN is operating within
same building while WAN is used for offices at different cities or states. Client server includes
the higher end computers which are installed as servers and users at the local ends will run their
applications and share informations within an organization.
Wójcik and Smolarz (2017) explain that the MAN i.e. metropolitan area network is a
network which interconnects users in the size of metropolitan area. It is smaller than wide area
network. A series of wireless routers distributed across a city are an example of metropolitan
area network.
Importance of internet and intranet in a business
Marchewka (2016) explained in their study that the internet is a globally used network by
billions of computers and other electronic devices. With the help of internet only, it's possible to
access almost every information and communicate with each other in the world. The internet is a
tool through which the organization maximizes its profits, knowledge and risk taking abilities of
the business and their employee engagement. It gives more marketing options and platforms to
the business with comparison to traditional methods. This tool provides flexibility to access the

business activities according to consumers preferences. Advertising through social media
platforms helps to build brand image and a relationship between consumers and organization.
Easy payment gateways and online payment system are introduced with the help of internet only.
Intranet is private and secured network that are used to share information within
company. The goal of it is communication, collaboration and document sharing for people with
in an organization. It provides single platform for employees to get day to day information for
business activities. It allows people to get things done easily.
As per the view of Moin and et.al., (2017) It flourishes the internal communication of
organization, teams of firm can have open discussion, individuals can share knowledge. Also,
leaders of company can be in touch with everyone through intranet. Intranet not only increases
online connection between employees and company but it also encourages improving employees
satisfaction and engagement level.
Further it was criticized by Jin and Wang, (2019) that intranet of company simplifies
employees on boarding so that new hires can identify information related to organization's up-to-
date charts and provides information and insights into the culture of Tesco company. It will
improve clarity in roles and responsibilities of employees throughout the business.
On the other side Beynon-Davies, (2020) it was stated that company's intranet connection
reinforces brand and values so public-ally recognizing employees so that living out companies
avenues. Also, it can be asked through intranet to employees to share examples of values that
they see in daily work life. So that Tesco can make motivating and belongingness atmosphere in
the company.
Software system Development Life Cycle
Software system development life cycle is a process that consists of series of planned
activities that are used to develop and modify software products (Software development life
cycle. 2018.). SDLC aims to produce high quality software that meets customers expectation,
cost reduction and with time management. SDLC provide well-structured flow phases that help
in organization to easily produce high quality software which properly tested and ready to use for
the firm. The popular models of SDLC involves spiral model, Agile Model and waterfall model.
SDLC works by shortening production time, improving quality and lowering cost of
development of software.

The different Stages of SDLC
There are 6 phases that helps organization to produce quality software. The following are
typical stages (Sugiantoro, Anshari and Sudrajat, 2020).
Planning and Requirement Analysis
It is most important stage in which is performed by senior members of team with inputs
of customers, market surveys, domain experts in industry and sales department of company. This
information is used to develop a basic plan to conduct feasibility in operation, technical and
economical areas (Zughouln and et.al., 2020). The stage involves determination of answer of
“What we want?” and it also identifies cost and resources required for implementing analysed
requirement. And risk involved and ways to overcome those risk.
Defining Requirements
Once the requirement analysis is done the next step is to clearly define and documents the
product requirement and get them approved from market analysis and customers. This is done
through an software Requirement Specification (SRS) which contains all the product
requirement to be constructed during the project life cycle.
Designing the software
How will we get what we want ? This phase start by turning software specification into
design planned called design specification. A;ll this specification is reviewed by stakeholders
and experts, and then they give feedback and suggestions. It is very important to have plan for
collecting and incorporating stakeholders inputs into documents. The stage is very crucial as
failure in this stage will result into cost increase and collapse ODF project.
Building the project
At this stage actual development and programming of project is done. The
implementation of design begins with writing codes. Developers have to follow described codes
by their management and programming tool.
Code Testing
after the code is generated , testing of those code is done to check that developed plan is
solving the addressed problem or requirement of customer or not, The test is done to check
defects and deficiencies to fix those issues until the product meets the defined requirements.
Software Deployment

Once the software is certified, no errors and bugs are stated then it is deployed then based
on assessment, software may released as it is with suggested enhancement. This allows
stakeholder to play safely with before releasing the product into the market. After the software is
Deployed its maintenance begins.
Software Maintenance
Once when client starts using developed systems and if there are any issues then it is solved
from time to time. This the most important stage where care need to be taken, it is called as
maintenance.
DATA ANALYSIS
In Tesco, managers use information systems tools for assessing, managing and
effectively running of their business departments (Information Technology, 2020). This
information provides them with past, present and future information. The firm uses this system to
find out their monthly reports of expenses which helps their managers in decision-making.
Quoted company's managers use information system to recognize their customers more which in
return serve them in price analysis and loyalty schemes. Tesco has used the information system
namely G.O.L.D. Which assist managers to control the stock level in order to meet demand and
supply, quality of products, pricing of goods, location of stock and deals with buying raw
materials etc.
On a contrary note, the information technology also effects negatively through expenses of
implementation and their maintenance, job eliminations and breaches in security measures.
There are many factors that effect the way companies can operate in the society and
adopting the policies. Ethical and social factors are two of them. Tesco analyses the waste
creation and disposal of the company as their major ethical issues. According to the
environmental policies act it has to follow the rules and regulations to minimizes the waste
creation and managers are trying to regenerate the policies that were used to solve the problems.
Farming supplies is also another ethical problem face by the organization and with respect to this
problem also the firm is trying to reanimate their policies. The company received the worst rating
from ethical consumer for its policy. Organization faces social issues like poor customer service
and have to work upon regain the customer's trust. Tesco is also facing the quality issues of their
products and services and that is why, it scored the lowest rating in animal testing of their own
brand products.

Tesco have always been good at keeping up with the newest technology. The company
introduced new RFID enabled barcode. It allows the automatic counting of products and
removed while entering and leaving the store, before and after purchase. This directly gives
information to the suppliers also about the stock in the store to improve the overall experience of
the customers. Organization recently launched If this then than to create the excellent
experience to the customers. For instance if a product price goes up and down the customer will
get notifications with respect to particular product of their interest. Following firm uses advanced
M- commerce facilities and mobile payment applications to make the experience easy and
enjoyable for their consumers. The company is the first grocer in the UK who introduced the
mobile payment app facility to their customers. Tesco works with Oracle marketing platform,
Oracle retail management, Oracle accounting hub, Oracle HR, Oracle BI and SAP business
objects which helps their local processes and operations works globally and internationally.
Above applications are worked under LAN and WAN technologies. However, it is critically
evaluated that due to its typically massive size, WAN's are almost slower than LAN's. The
greater the distance, the slower the network. Having a private WAN is always expensive for
organizations.
Tesco used internet as their information system to their business (What Exactly is
Information Technology, 2020). It is beneficial for both the organization and their customers by
providing flexibility to access their website from wherever and whenever they feel like according
to their own preferences. The website has launched in 2000, but operated on internet since 1994.
In recent years the company confirms that their profit margin with respect to online grocery
shopping rises up by 21% with the help of their online website and their easy technological
options only. Following firm has achieved their organizational goals, competing with their
competitors and making profits through internet and smart information system only.
However, the negative impact of this is sometimes the customers feedback badly effects the
organizations image in the market space. Different person with different perspectives share their
reviews which effects the decision-making of other customers.
From the study it has been discussed that intranet is important communication platform
of company. Tesco company also uses this to improve its efficiency of information sharing. It
also motivates employees to share their achievements and learnings through using this, Tesco

company a shares day to day activities instructions and data with the help of intranet. This
platform reinforces brand and value of Tesco company among employees.
CONCLUSION
The final analysis on whole reports articulates that IT has become essential part of
modern world. The report emphasis that major role of it is spreading systematic business
information and recording data among employees of Tesco. Health and safety of employees and
harassment and discrimination on work place is the biggest social and ethics issues faced by
employees of business. There are various types of network technologies which serves various
benefits to Tesco. Internet and intranet are important in business because they provide various
facilities to business like strong communication platform and security of data. The reports also
explains different stages of SDLC which gives company innovative and modified software as per
the company requirement.

REFERENCES
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