Role of IT in Business Success, Networking, and System Lifecycle

This report delves into the pivotal role of Information Technology (IT) in contemporary business environments, emphasizing its significance for organizational survival and success. The analysis encompasses the impact of IT on productivity, operational efficiency, and communication effe...Read More

Literature Review

Abstract
The current assignment is basically based on the fact that in current business environment
application of IT and other computer network has become vital and important for a firm to
survive and succeed. Use of IT become vital to have increased level of productivity and
improved performance level through more efficient business operation and improved
communication. The current assignment comprises of a discussion about the role of IT in success
of a firm along with the main ethical and social issues which could be faced by a firm while
running a business. Further, a discussion about main types of networking and importance of
internet and intranet for a business firm are also included in the current assignment along with
analysis of Different stage of system development life cycle.

Table of Contents
Abstract............................................................................................................................................1
INTRODUCTION...........................................................................................................................1
Literature review..............................................................................................................................1
Role of IT in success or failure of a business.........................................................................1
Ethical and social issues associated with running business....................................................2
Indentify and difference between different types of networking technologies......................3
Importance of internet and intranet in a business...................................................................4
Different stage of system development life cycle..................................................................5
Analysis and discussion ..................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Information technology can be stated as the study, design, development, execution, and
management of computer based system of information - specifically computer hardware and
software applications. Today, information technology plays very significant role in growth and
success of organisation (Brooks and Pomerantz, 2017). In this project, frequently used
computing terminologies like hardware, software, RAM and CPU and selected company is Tesco
which is one among the well-known organisation which was established in 1919 and is
headquartered in England. This report covers role of IT in success and failure of business along
with ethical and social issues related to business. It also discusses the different types of
networking technologies and their differences along with the importance of internet and intranet.
Apart from this, different stages of system development life cycle and analysis and discussion
based on overall report is discussed.
Literature review
Role of IT in success or failure of a business
As per the view point Xiang, Z., 2018., the concept of information technology is mainly
related and associated with the study, development and implementation of computer based
information system comprises of software applications and computer hardware to support more
automated and efficient management of a firm. It has been seen that use of information
technology provides and leads to most efficient way to collect, store, retrieve and analysis a
specific set of data and plan for effective management of business. Thus, an analysis can be
made out that use of IT plays a vital role in success of Tesco by the way of facilitating an
effective tool to solve complex problem and also helps in planning scalability and better future
growth.
Apart from this, as per the view point of Ashley Donohoe, 2019, a vital and most
important role is lead by IT in success of a business firm by leading recording of vital
information and transaction in more effective manner along with making a company more
productive and increased its performance through improved customer experience and
streamlining communication along with enhanced decision making. A better analysis of role of
IT in success of a business like Tesco along with facilitating more effective management is
provided and discussed below:
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Improved Organizational Communication- The most important role lead by IT within
success of a firm comprises of facilitating more improved and efficient ways and platforms for
having effective communication with customers and other stakeholders through making use of
conferencing software, email, video chat, internet and company intranets. At the same time, IT
also supports effective management within Tesco through ensuring easy access and share of
information with employees which save both cost and time along with leading better
coordination and collaboration with employees.
Support effective Business Decision-Making- The another vital role and positive aspect of
IT in success of a business comprises of the fact that it support better decision making within a
firm through making use of more vital tools like ERP software and decision support systems
which also support better management.
Thus, an analysis can be made that use of IT lead to better business success and effective
management within in Tesco as it offer improved communication with customers and
employees. Better interaction with customers is helpful in improving the sales of firm while
effective communication with employees ensures better collaboration and coordination to
support effective management.
Ethical and social issues associated with running business
Many ethical and social issues are related with use of IT while running and operating a
business which is mainly concerned and associated with theft of information and breach of
privacy. A discussion about the key Ethical and social issues associated and faced by Tesco
while running its business are analysed and evaluated as below:
Ethical issues
 Hacking of data- The term hacking is associated the attempt made by an individual’s to
exploit a computer system or a private network of any business organisation which
comprises unauthorised access or snooping in private content for some illicit purpose.
 Spying and Snooping- it is one of the most vital issue faced by a firm while making use
of IT as internet network and other computer software are used by crores of people thus,
an individuals or form can easily spy and track the crucial information of customers or
employees comprises of their passwords and other personal information that is a biggest
ethical risk faced by business organisation.
Social issues
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 Breach of privacy and confidentiality- this social issue is associated with the
obligation and consequence faced by a form due to leak of some private information or
confidential data that is not allowed to disclosed or share unless due permission of a
person. Thus, this social issue comprises of a legal parlance comes up where an
obligation of confidence arises between a 'data collector and a data subject.
 Information Mishandling- It is also one of the most vital social issue and implication
faced by a business while operating a firm that comprises of privacy issue related with
chance of mishandling and hacking of personal information because of use of improper
encryption and security measures. Further, providing wrong data and misleading
information over online website and other network is also falls under the social issues
faced while running and operating a business.
Indentify and difference between different types of networking technologies
The concept of networking is mainly associated and related with the way and chances that
are used to share and exchange information and vital ideas among people or individuals linked
through multiple devices to easily share information and software resources. The most common
type of network or networking technologies are identified and discussed as below:
LAN (local area network) – It is the form of network which covers the small area like a
school, building or apartment. LAN provides most fastest and safest connection as no outside
connection is allowed to access or reach the information or shared resources.
MAN (Metropolitan area network) – under a MAN network any small sized or local are
network are connected with each other through making use of some wire or telephonic lines.
Thus, a MAN is a network that is larger than a LAN but smaller than WAN.
WAN (Wider area network)- this network provides long distance transmission and sharing
of data which cover a whole country continent and even the whole world. Internet connection is
the most suitable example of a WAN network.
Difference between different types of networking technologies
The difference between
Basis LAN MAN WAN
Range The range of LAN is
around 1 Km
The range of a MAN
is limited to a city
The WAN is having
an unlimited range
which can even
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includes the entire
world.
Authority Allowed only to
personal and limited
individuals.
Access and authority
is given to some
limited employees
mainly comprises of a
company or
organisation.
No authority is their
and access to allowed
for all individual.
Cost Lower cost of set up
due to use of
inexpensive devices
Moderate cost of
installation
Higher set up cost as
compared to LAN and
WAN.
Speed and safety Highest speed and
safety.
Moderate speed and
safety.
Low data speed and
limited safety.
Importance of internet and intranet in a business
A vital role is played by growth of information and communication technology in
betterment and enhanced success of a firm in form of improved communication and along with
leading better decision making and expansion at global level. Fast growing IT lead to enhanced
total productivity of Tesco by the way automation of process and operation along with improved
storage and analysis of data together with better connectivity with employees and customers for
improved business results. Further, the definition and importance of two vital concept of ICT and
their effectiveness for business orgnisation like Tesco is provided as below:
Internet- it can be defined as global network of computer or electronic communication
network which provides and leads to easy flow of information and organisational computer
facilitates around the world. The use of Internet is important and vital for a firm as it opened a
new world with reach and access to wider number of customers and individuals across the world.
Thus, use of internet is important and vital for Tesco company has it helps in connecting with
wider number of customers and employees at global level through making use of effective
communication channels and strong global network. Therefore, use of Tesco leads to attraction
and retention of larger number of customers to have higher productivity and enhanced success
level.
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Intranet- it basically associated with and represents a private network of a firm which can
be only accessed and retrieve by some limited authorized users. Thus, use of intranet is also
important and vital for a firm as it allows a company and its employees to share and transfer
confidential and private information in a mores secure and safe way. Apart from this, easy
sharing of resources and files is also provided by use of Intranet for Tesco company to have
more cost efficient operations along with leading and facilitating enhanced coordination and
interaction among employees.
Different stage of system development life cycle
As per the view point of Ehrenfeld, (2017), the system development life cycle is an iterative,
multistep process structured in methodical way. There are seven stages of system development
life cycle which are as follows:
Planning: this is the first phase whose purpose to find out scope of the issue as well as
ascertain the solution. In this stage, time, cost, benefits, resources and other things must be
considered by the manager.
System analysis and requirements: this is the second phase in which teams considered
functional requirements associated with the project or solution. It is also the stage where system
analysis takes place - or assessing the requirements of end users in order to ensure that new
systems can mitigate their expectations (Howell, van Beers and Doorn, 2018).
System design: in this phase, the necessary specifications, operations and feature which will
satisfy the function needs of proposed system that will be in place is discussed in detail. In this,
all the important things and specifications associated with project are described in detailed
manner.
Development: this is the stage where the real work initiates. It marks the end of starting
section of process. Apart from this, it signifies the initiation of production and the phase is also
characterised through instillation and change.
Integration and testing: this is the fifth stage which includes system integration as well as
system testing - normally performed through quality assurance professionals in order to identify
if the proposed design mitigate the business goals which are set initially (Makarchuk and et. al.,
2019).
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Implementation: this is the sixth stage when in which majority of codes for the programs is
written. In this, the project is put into manufacturing through moving data as well as component
from old system along with placing them to new system through direct cutover.
Operations and maintenance: this is the seventh and last stage where the end users or
consumers can fine-tune the system and if they wish, to increase performance, mitigate
additional requirements of users or add new capabilities (Ajjan, Kumar and Subramaniam,
2016).
Analysis and discussion
An analysis can be made on the basis of current literature review that the most common set
of computing technologies which are used by Tesco comprises of CPU, RAM, Hardware and
many forms of Software that are basically needed for implementation of IT system within a
company. Further, a discussion can be made out on the basis of current assignment that use of IT
plays a vital role in success of Tesco plc as it facilitates better storage and retrieve of needed
information for better analysis of data that ensures more effective decision making and strategy
formulation for improved success of a firm. Beside this, it has been also observed that, an
effective management and better interaction and communication with employees, customers and
other vital stakeholders is also lead and provided by use of IT that also lead positive impact on
success of Tesco. Apart from this, a discussion about the key ethical and social issues could also
be made on the basis of current literature review which are mainly associated with privacy of
confidential data of employees and customers. An analysis can be made that the Hacking of data
and Spying and Snooping along with Breach of privacy and confidentiality and Information
Mishandling are main social and ethical issues which are faced by Tesco plc while running and
operating its business.
Further, on the basis of current investigation an analysis can be made out that LAN,
MAN and WAN are most common form and type of networking which are having their own
benefits and various differences. For instance, LAN is suitable for only a limited areas but
provides maximum level of safety and highest speed where as WAN covers a global area but
have limited speed and safety. Further, an implication can also be made that Internet and Intranet
are two vital aspect of growth of ICT which are vital and important for a firm. An analysis can be
made that the concept of Internet is important for Tesco as it provided a global connectivity to
attract larger number of customers where as Intranet is important to share confidential
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information among employees in a secure and cost effective manner. The process of system
development life cycle is utilized to model or render a framework for non-technical and technical
activities in order to deliver a quality system that exceeds or meet the expectations of business or
manage progression of decision making. This conceptual model involves procedures and policies
for developing or changing systems throughout the life cycles (Madon and Krishna, 2018).
CONCLUSION
On the basis of current assignment, a conclusion can be made that a vital role is played by IT
in success of a firm as it lead to enhanced automation of operation which resulted in form of
enhanced productivity further, improved communication and effective decision making is also
facilitated by IT that support better management within a company. Further, it can be
summarised that hacking of data, Spying and Snooping, Breach of privacy and confidentiality
and Information Mishandling are commonly seen ethical and social issues which are faced by a
firm while running a business. Apart from this, it has been also analysed that LAN, MAN and
WAN are common set and form of computer networking. Beside this, it has been also
summarised that both Internet and Intranet are vital and important concept for a firm to attract
larger number of customers from global level along with leading a safe way to share information
among employees. At last, a summarisation can be made out that Different stage of system
development life cycle which are vital for implication of suitable software within a firm.
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REFERENCES
Books and journal
Brooks, D.C. and Pomerantz, J., 2017. ECAR Study of Undergraduate Students and Information
Technology, 2017. EDUCAUSE.
Ehrenfeld, J.M., 2017. Wannacry, cybersecurity and health information technology: A time to
act. Journal of medical systems, 41(7), p.104.
Xiang, Z., 2018. From digitization to the age of acceleration: On information technology and
tourism. Tourism management perspectives, 25, pp.147-150.
Lloyd, I., 2020. Information technology law. Oxford University Press.
Benitez, J., Llorens, J. and Braojos, J., 2018. How information technology influences opportunity
exploration and exploitation firm’s capabilities. Information & Management, 55(4),
pp.508-523.
Chae, H.C., Koh, C.E. and Park, K.O., 2018. Information technology capability and firm
performance: Role of industry. Information & Management, 55(5), pp.525-546.
Hendon, M., Powell, L. and Wimmer, H., 2017. Emotional intelligence and communication
levels in information technology professionals. Computers in Human Behavior, 71,
pp.165-171.
Avgerou, C. and Walsham, G. eds., 2017. Information technology in context: Studies from the
perspective of developing countries: Studies from the perspective of developing countries.
Routledge.
Madon, S. and Krishna, S. eds., 2018. The digital challenge: information technology in the
development context: Information technology in the development context. Routledge.
Ajjan, H., Kumar, R.L. and Subramaniam, C., 2016. Information technology portfolio
management implementation: a case study. Journal of Enterprise Information
Management.
Makarchuk, T.A. and et. al., 2019. Quality management of e-learning in information technology
management training. In The European Proceedings of Social & Behavioural Sciences
EpSBS (pp. 742-748).
Howell, R., van Beers, C. and Doorn, N., 2018. Value capture and value creation: The role of
information technology in business models for frugal innovations in Africa.
Technological Forecasting and Social Change, 131, pp.227-239.
Online:
Ashley Donohoe. 2019. Role of Information Technology in Business. [Online] Available
Through:< https://bizfluent.com/facts-5977213-role-information-technology-
business.html >.
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