Information Technology's Impact on Business: Tesco Case Study Analysis

This report provides a comprehensive analysis of Information Technology's role in business, focusing on a case study of Tesco. It begins with an introduction to IT, its components, and its significance in the business world. The report then classifies computers based on size, type, and purpose, including microcomputers, minicomputers, mainframes, supercomputers, analog, digital, and hybrid computers. The report explores the advantages of IT for Tesco, such as improved communication, globalization, availability, job creation, and cost-effectiveness. It also discusses the disadvantages, including potential unemployment, cultural dominance, social security risks, and implementation costs. The report further examines the social and ethical issues related to IT, such as data misuse and security breaches, and concludes with a discussion of the internet's growth and its impact on businesses. The report highlights the importance of IT in retail and its potential to transform business operations, while also acknowledging the associated challenges.

INTRODUCTION TO
INFORMATION TECHNOLOGY

ABSTRACT
It is a universally accepted fact that Information technology plays a crucial role in
every person’s life in the present era. This fact is acceptable not only in terms of people but it
can also be referred in case of business, jobs, communication purpose, gathering information
and relaxation etc. All these are related in terms of technological innovation. Information
Technology is a complex and wide concept and also permissive in nature which develops
interest in many people. Information technology has resulted in providing huge potential to
the businesses by stimulating the appearance and introducing new concepts to the businesses
such as Electronic Business (E business) and Electronic Commerce (E Commerce).

Table of Contents
ABSTRACT..........................................................................................................................................2
INTRODUCTION.................................................................................................................................4
TASK 1.................................................................................................................................................4
Classification of Computers..............................................................................................................4
TASK 2.................................................................................................................................................6
Information Technology is of great significance for a business. Explain its impact upon the
business organization.........................................................................................................................6
TASK 3.................................................................................................................................................8
Explain the social and ethical issues faced by the organization along with their impacts..................8
TASK 4.................................................................................................................................................9
Explain the growth of internet and its impact on businesses..............................................................9
CONCLUSION...................................................................................................................................10
REFERENCES....................................................................................................................................11

INTRODUCTION
Information Technology is referred to the applications of telecommunication tools and
computers in order to store, retrieve, transfer and manipulate the data so that it
becomes beneficial for the business. Information Technology is a widely used concept
in terms of computing and business. The term is prominently used for the purpose of
computer related tasks. Information Technology basically consists of three parts
namely, Computational Data Processing, Decision support and Business Software. At
present, Information Technology consists of Computer tech support, Data base
administration, Business Computer Network, Business Software Development and
Information safety and security. Information Technology has a scope in
administrative functions, architecture, Businesses, Engineering etc. Information
technology is a combination of business skills as well as technical skills (Venkatesh,
Chaudhuri and Mathew, 2021).
TESCO is a UK based company which deals in retail sector business. It was founded
by Jack Cohen in the year 1919. At present, Tesco is among the largest retailers all over the
world. Tesco provides a wide variety of products and has its headquarters in London, UK. It
has more than 3154 stores in over 11 countries across the world. The study revolves around
the concept of Information Technology in Tesco.
TASK 1
Classification of Computers
The classification of computers is basically upon their size, type and the capacity of
the work it performs. At present, computers are available in different types, different sizes
and according to different capacities. The classification of computers is also termed as classes
of computers. The classification of computers is explained below-
Classification on the basis of size
There are various types of computers based upon sizes. The type of computers based
upon size includes Micro Computer, Mini Computer, Main Frame Computer and
Super Computer (Umukoro and Onuoha, 2021).
 Micro Computer- Micro Computer generally serves the purpose of processing the
system based upon functionality. Micro Computer is referred to the self-contain Units
and are mostly designed to serve purpose for one purpose at a time. Micro Computer
forms a very significant segment of the integrated information system. The different
types of Micro Computer are Laptop, smartphones, Desktop Computers, Tablets and
Notebooks. The micro computers are affordable, have a limited input and output.
They also have a low storage capacity and can possess use of only few range or
variety of software.
 Mini Computer- Mini Computer is referred to a medium sized computer which is
more powerful in terms of capacity and costlier than the Micro Computers. A Mini
Computer, unlike a Micro Computer is used to serve purpose for more than one
person at a time. A Mini Computer system that supports Multiple Users is called a

Time Sharing System. The different types of Mini Computer includes Desktop
minicomputers, Tablet PC, cellphones, High ends MP3 Players and notebook. A
minicomputer has a restricted range of peripheral devices. It consists of limited
software and it can be directly used by the users (Sari and et.al.).
 Mainframe Computer- A mainframe computer has a huge built in storage capacity and
processes information and data at a very high speed as compared to Micro Computer
and Mini Computer. These types of computers support a large number of terminals
which are used by various users. These are mainly used by Bank, Insurance
Companies, Railways and Hotels. These computers are quite large in comparison to
the Micro and Mini Computers. The different and popular types of Mainframe
Computers are ENIAC i.e. Electric Number Integrator and Calculator, UNIVAC,
ASCC i.e. Automatic Sequence Control Computer. These computers are based on the
principle of that the contributing power can be lent. Many users can use these
computers at the same time. It requires a qualified and experienced operator and
programmer for the operational activity. These computers have a huge storage
capacity.
 Super Computers- Super Computer has a large internal storage capacity and a quick
computing speed. The speed is somewhat 10 times faster as compared to the other
computers. The speed of trundle compering and can perform millions of operations
per second. The operation involves various numerous instructions. Super Computer is
the most expensive, largest and fastest computer system in the world. These are
capable of performing millions of arithmetic operation per second. The different types
of super computers include Jaguar, IBM, Jugene, K Computer, Nebulae etc. Some of
the popular super computers are CRAYX-MP, CRAY-2, CRAY-3 and ETA-10.
Classification on the basis of Type
The computer can be classified into three parts and are based upon the Hardware Design and
Data Handling. These are also called Design and Data Handling based upon
Functionality. The classification of the computers is on the basis of Analog Computer,
Digital Computer and Hybrid Computer ( Nemoto and et.al., 2021).
 Analog Computer- Analog Computer is used to measure the physical quantities,
temperature, pressure height and weight and provide the result in form of digital form.
Analog computers are used by various mechanical engineers, civil engineers and
electrical engineers. Needle Clock is an example of Analog Computer. The different
types of analog computers are castle clock, Differential analysers, electronic Analog
Computers, Hydraulic Analog computers, Slide Rules, Pneumatic Analog Computers
and Mechanical Analog computers.
 Digital Computers- Digital Computers help in calculating digits and thus are used
everywhere. A digital computer can be a termed used for a smartphone or a laptop.
The different types of digital computers are personal desktop, Calculators, Digital
watch, calculators, Workstations, Digital clock, smartphones and tablets.
Hybrid Computers- Hybrid Computers can be referred to the combination of the digital as
well as analog computers and hence has properties of both the computers. These
computers are mostly useful in medical field and an example for this can be smart

watch. There are basically three types of Hybrid Computers. The three types are
Large Electronic Hybrid Computer, General purpose Hybrid Computers and special
purpose Hybrid Computers (Narayan, Gong and aliahmed, 2021).
Classification on the basis of Purpose
According to purpose, the computers are classified on the basis of purpose into two
types. Each computer is designed has a different design and serves a different purpose. Each
computer is designed for a specific place and to serve a specific purpose. There are two types
of computers, a Special Purpose Computers and a General Purpose Computer.
 Special Purpose Computers- Special purpose computers are designed to complete a
particular task or application. The examples for special purpose computer are Automated
Teller Machine i.e. ATM. Various types of special computers are Washing machines,
surveillance equipment, Oil exploration systems, Military plane controlling computers,
traffic control computers etc.
 General Purpose Computers- These computers are required in order to perform a specific
job and they might not be kept for permanent storage. When one job is completed the
instructions can be saved into internal memory. They serve purpose for Preparing bills,
Printing reports etc.
TASK 2
Information Technology is of great significance for a business. Explain its impact upon the
business organization.
Information Technology has huge emphasis on the business of the retail sector. The
Information Technology has an impact on the business of retail sectors in positive as well as
negative aspects. The Advantages and disadvantages of Information Technology upon the
Business of Tesco is explained below-
The advantages of Information Technology upon TESCO
 Communication- Information Technology facilitates communication in the
organization. Information Technology helps in promoting communication at Tesco
through instant messaging, voice calls, video calls and emails. This makes
communication efficient, cheap and quick (Lincoln, 2021).
 Globalization- Information Technology facilitates and promotes globalization and
decreases the cultural gap within the organization. Implementation of Information
system helps in decreasing the geographical, cultural and linguistic boundaries. In
Tesco, IT helps in sharing information, facilitates communication, enhances
knowledge and bonds relationship between different countries, language and cultures
become much easier.
 Availability- Information Technology has facilitated the businesses to operate and be
available to provide services to their customers 24*7. Information Technology has
facilitated TESCO to be more accessible to its customer in a more prominent manner
(Lloyd, 2020).

 Creation of new jobs- Information Technology has helped in facilitating jobs in
various organizations. Every organization belonging to every sector needs to deploy
personnel to operate Information Technology in their organization. In Tesco,
Information Technology activities such as Computer programming, system analyzing,
Web designing etc. need to be carried out by experienced and well informed
personnel.
 Cost effectiveness- Information Technology helps in reducing cost of the organization
which leads to cost effectiveness. This helps in increasing productivity in the
organization. Information Technology helps to maintain cost effectiveness at Tesco as
it helps in gaining competitive advantage as well.
The disadvantages of Information Technology are discussed below-
 Unemployment- Information Technology can be proved time saving during the
consummation of errands and tasks that technician works. Most of the administrative
work can be performed quickly. Also the monetary exchanges are easily determined,
and so forth. As and when the technology upgrades, the computer technology
overtakes the task performed by human beings and hence can lead to unemployment
of the personnel. The professionals in the industry have realized that Introduction of
Information Technology has led to a major threat of job security in the economy as
technology continues to upgrade with every single day and tends to replace the human
beings in the organizations. Hence, it is important for everyone must be in a
continuous learning mode, in order to maintain the job security for themselves (Lee,
Keil and Wong, 2021)
 Dominant culture- It cannot be wrong to say that Information technology has created
its dominance in the various industries and their various organizations. Information
technology has led the world to become a worldwide town. Also Information
Technology has resulted in making one industry dominant while on the other hand
making the other more fragile. Dialects have also gotten eclipsed, which has resulted
in English being considered as an essential way of correspondence for businesses and
all the other things.
 Social security- The Criminals and hackers gain admittance to personalities and
corporate saboteurs target touchy organization information. Such information can join
information of the vendor, bank records, secured advancement and individual
information on association the board. The software engineers pass on the information
over the Internet, offer it to coordinate with associations or use it to hurt the
association's image. For example, a couple of corporate store were centered around
actually by developers who took customer information from their information
frameworks and circled Social Security numbers and charge card information over the
Internet.
 Expenditures on implementation- The adaptation to Information Technology can
prove to be costly as it involves installation of various software, hardware and
individuals. Workers need to be trained in order to operate with new information
technology and software (Griffith, Moghaddam and Spohrer, 2021).

TASK 3
Explain the social and ethical issues faced by the organization along with their impacts.
Information System has facilitated many businesses in the industries but the
Information technology, just like every other thing has its misuse also. Improper use of
technology might lead to emergence of problems for the organization as well as for the
employee. There are various social and ethical that are faced by the business organizations.
The social and ethical issues faced at Tesco are explained below-
 Theft of identity- Frauds happens when a digital criminal impersonates someone else
personality to practice breakdown. This is commonly done by getting to singular
nuances of someone else. The nuances used in such wrongdoings join government
oversaw retirement numbers, date of birth, credit and charge card numbers,
distinguishing proof numbers, etc. When the information has been obtained by the
digital crook, it might be used to make purchases on the web while copying in order
to be someone else. There are various ways through which the cyber-criminals can
obtain the personal information and one such way is phishing. Phishing refers to
creation of counterfeit sites that seem to be an authentic business site or messages.
 Infringement of Copyright- Piracy is one of the most concerned topic in the
Information Technology industry. For example, There are various websites which are
utilized with an aim to circulate protected materials like audio, video, software; and so
on. Copyright infringement refers to the unauthentic utilization of protected materials.
 Click Fraud- Click fraud is a scenario where an individual clicks upon a connection
with no aim of find out about the click however to get more money. This can likewise
be refined by utilizing computerized software that makes the clicks (Fastovich and
Kapsargina, 2021).
 Advance Fee Fraud- According to an Advance Fee Fraud, an email is sent to the
person who is seen as a potential target and guarantees them to pay a sum of money
while assisting them with asserting their legacy amount. In these kind of cases, the
criminal usually portrays themselves as a direct relation of a rich and popular
individual who is no more. The person also portrays to have the abundance of the late
rich individual and states the situation of necessities. The person requests for
monetary assistance and guarantees to compensate the amount later. In the event of
fraud, the target person sends the money to the fraud and later disappears leading to
the loss of the money.
 Hacking- Hacking is used to break or crack the security controls in order to get
unapproved permission to a system. At the point when the attacker has gotten to the
system, they can do anything they want. There are regular exercises which are
brought into practice at the time of hacking. The set of actions are Installation of
programs that allows the hacker to keep an eye on the target or control their system
distantly and further damaging the websites so that they take delicate information, etc.
 Computer Virus- Computer virus is referred to the various inappropriate programs
that can irritate users and also steal their confidential or private information. Viruses

are also used to get control of the computer systems that are being used by the
organization.
 Unauthorized Access- The standard convention which should be followed in order to
avoid unauthorized access is to utilize a combination of a username and a secret
phrase. Programmers or the unauthorized users have found out ways in order to dodge
the controls if the target doesn't follow best suitable security convention practices.
Most organizations have added the utilization of cell phones like telephones to
provide an additional layer of security (Kwilinski and et.al., 2019).
TASK 4
Explain the growth of internet and its impact on businesses.
Internet has made a huge impact upon the business in the present era. Internet has
brought changes not just upon the business but upon the customer base as well. With the help
of internet, a business is not dependent just upon its local customers but it can also serve
customers worldwide. The impact of Internet upon the business of Tesco is explained below-
 Communication- Communication is referred to business organization’s capability of
communicating with its workers, clients and partners. Communication can referred to
passing on of the information. The communication process has changed significantly
with the introduction of the Internet and latest technologies. IT has changed the
communication process followed in the organizations by introducing Email and
texting.
 Wider market- It is essential for the businesses to have the information of their clients
in order to have a wide reach in the market. There is tough competition among the
businesses and it is important for the businesses to adapt themselves with the latest
trends. Hence, the business organizations need to understand the clients need and
convey it. This is possible with the help of Reviews, surveys, input structures and
remarks that can be gathered from various sites.
 Digital advertising- The use of Internet with an aim to promote its business and the
expenditure plan expands the capability of a business in order to attract clients
towards their organization from every corner of the globe. The websites, flag
arrangement and site improvement allows a business to show their presence on the
web portals and attract clients.
 Collaboration- Collaboration is a term used for the process wherein two or more
organization join hands to work towards a common purpose. Internet has made it
easier and accessible to work in collaboration. There are various web courses that are
also known as online classes, that make it easier for the individuals to work together
on projects with individuals everywhere on the world (Englander and Wong, 2021).
 Research purpose- The business organizations use the Internet to examine new thing
contemplations, new methodologies for making things and assessing information. A
business can in like manner investigate the challenge to see what things and
organizations are publicized. If an association wants to expand into a particular

region, the Internet can be used to investigate the general population, its necessities
and what things and organizations would sell best around there (Churakova, 2021).
CONCLUSION
It can be concluded from the study that Information Technology has a huge impact on
the efficiency and operation of the business. The study consists of various types computers
according to their classification. The computers are classified into three categories namely-
classification based on purpose, classification based on size and classification on the basis of
capacity. The report further covers the impact of the Information technology upon the
business of Tesco. It covers positive impact as well as negative impacts. The report also
throws light upon the social and ethical issue of IT along with the impact of Internet on the
growth of the business.

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