University of Suffolk: BABS Foundation Year Assignment on IT in Retail

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BABS Foundation UOS IIT Assignment
Assignment 2
Impact of Information Technology
on business operations of a <Your
chosen business>
Student ID:<Your Student ID>
BA in Business Studies (Foundation Year)
University of Suffolk
Date of Submission:<Date of Submission>
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BABS Foundation UOS IIT Assignment
I declare that this assignment is all my own work and that I have acknowledged all materials
used from the published or unpublished works of other people. All references have been
duly cited.
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BABS Foundation UOS IIT Assignment
Executive Summary or Abstract
To keep pace with the modern technology and facilities available, it is important for a retailer
to act according to the market demand. Now days, every person out there has access to
internet and mobile, and with just a gentle touch the information’s from all over the world is
coming into his/her hand. Therefore, when intending to shop, they can analyze the market
first and then make a choice of buying. To act as per the customers demand, and to maintain a
good brand value, therefore, a retailer needs to use IT in favour of his business. The present
work has been done in the backdrop of Boots, UK, to understand the role of IT in retail
sector.
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BABS Foundation UOS IIT Assignment
Table of Contents
1.Introduction.............................................................................................................................5
1.1 Purpose.............................................................................................................................5
1.2 Background.......................................................................................................................5
2. Literature Review...................................................................................................................5
2.2 Information Technology and its role in retail business in general...................................6
2.3 Networking Technology, different types in general.........................................................7
2.4 Ethics and Social Issues of using technology in general..................................................7
2.5 The importance of Intranet and Internet in business in general.......................................8
3. Analysis and Discussion........................................................................................................9
3.1 Role of Information Technology in the selected business................................................9
3.1.1 Types of different Information Systems that are used in selected business like
Management Information System, Decision Support Systems etc.....................................9
3.2 Types of Networking Technologies that used in the selected business..........................10
3.3 Ethics and social issues in selected business..................................................................10
3.3 The importance of Intranet and Internet in the selected business..................................10
3.4 List and explain the different stage of system development life cycle...........................11
4. Conclusions..........................................................................................................................11
5.References.............................................................................................................................12
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BABS Foundation UOS IIT Assignment
1. Introduction
In this age of globalization, the term information technology, or commonly called IT is a
thing that we use regularly in our life. This It is the use of mobile technology or use of
computers through which people can store, transfer, retrieve and manipulate data. In regular
life of a commoner or in a business IT plays a very important role. It is considered as a subset
of communication and information technology (Benitez et al., 2018). To run a business and
to maintain communication within the organization as well as keep communication with the
outer world and get information from there.
1.1 Purpose
Using the IT service, a retailer can look after in sales and supply department both at the same
time. Complex retails operations can also be easily done using IT. Therefore, it is important
to understand the proper roles that can be done using IT and get the maximum benefit from it
(Morimura and Sakagawa, 2018). Also, one has to pay attention on the fact that using a
virtual technology, needs a critical understanding of the ethical issues and dangers related
with it. This study therefore aims to understand these things to use IT for Boots, UK to
improve its communication system so that the company can maximize its profit.
1.2 Background
In any organization, a lot of data is used for different purposes. It can be related with the
employee database, customer database, suppliers’ database or inventory checklist, a big
amount of data needs to be managed correctly as these data are important to drive the whole
business (Kumar, 2018). Also, it is important that a perfect communication is made among
the employees of an organization for the timely use of information and direction to make the
effort count. The management of Boots, UK therefore wants to use this IT for the proper use
and generate more usefulness from it. But before that, the management should understand the
pros and cons to use it effectively. Boots have a large number of employees, so to
communicate with each of them; this initiative is considered as a very positive move.
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BABS Foundation UOS IIT Assignment
2. Literature Review
In retail business, retailers get the products directly from the producers or manufacturers and
make them available to the customers. This needs a lot of inventory management, internal
and external communication which needs a good operational IT system. While many retailers
have physical shops others have online shopping sites to offer (Moorhouse et al., 2018). This
also needs a good maintenance from the IT department. Using IT helps to remain updated
about the market trend of the society as well as help the company to get in touch the
customers for generating more feedback. This whole operation ensures a good service
provided to the consumers, a well maintained database and inventory and even helps to build
a good team for the company sharing and caring for each other.
2.2 Information Technology and its role in retail business in general
In retail industry, IT can help in many ways through performing in various ways as stated
below:
Sales generation: According to Afolabi et al (2018), in earlier days, the customers stand I a
long queue or search for the availability of a particular product. Using the internet, the
customers’ gets to know that where the product is available and associated price or discounts,
and directly hits the shop. Also they use internet banking for payment which allows the direct
deposition of the money in the retailer’s bank account (Kasemsap, 2018). Therefore IT brings
the customer to the shop.
Customer feedback: using the IT, the retailer can generate the feedback from the customers,
which can help to modify the business process as per the customers demand.
Inventory management: A retailer deals with thousands of products, therefore, it is important
to refill the inventory within time, so that the customers remain happy. This inventory
management can be very easily done by maintain an inventory database which can be
updated at any moment.
Price auditing: This is beneficial for the companies to be ensured that they are not
overcharging or undercharging the customers. IT has generated a automating price checking
during scanning of the products.
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BABS Foundation UOS IIT Assignment
Data Collection: Different data such as employee’s payroll, consumers purchase frequency
etc can be easily maintained using IT, which helps the retailer to announce loyalty cards or
benefits.
Effective communication: Use of IT helps to make a good communication system within the
organization and helps to build a good teamwork focusing on the organizations objectives.
2.3 Networking Technology, different types in general
Network means connection that has been established between two devices to a million of
devices spread across the globe. It acts as the backbone of an industry to keep the business
updated. There are different types of networking system as described below:
1. Local Area Network (LAN): It is the most original and simplest type of network. This
uses a group of computers together across short distances. Using this system helps to share
information and used widely by any company.
2. Wireless Local Area Network (WLAN): It is like the LAN system only with provided
with wireless network technology, like Wi-Fi.
3. Wide Area Network (WAN): This connects devices which are situated at long distances.
This way computers and low voltage devices could be remotely connected using internet.
4. Enterprise Private Network (EPN): to share and remain connected in different locations
of a company, this type of secure network system is done.
5. Virtual Private Network (VPN): A private network connects different devices using the
internet to share information.
2.4 Ethics and Social Issues of using technology in general
With the use of mobile technology, the lives have become easy but complex. People live
in an interconnected way that help us in many regards but brings some social and ethical
issues if the IT facility is used for the wrong reasons (Capurro, 2018). One need to keep in
mind that using the information technology our lives, perspectives are fast moving, which
may cause differences in opinions across demographics causing social issues.
Ethical issues
Privacy: using internet, anybody can learn about the business of a company from its website,
and can stalk a person through different social media platforms.
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Copyright: Using different piracy sites people download movies, music and books which is
not ethical
Hacking: This gives unethical access to credit card/ debit card, secure information etc, which
brings economic loss.
Social issues
Online harassment: using different social media and videography, hatred about immigrants,
people from a particular religion, LGBTQ people and racism like issues are escalated (López
Peláez et al., 2018).
Fake News: Again using internet, false news of a certain disease outbreak, death news of a
celebrity, communal riots can be spread, which may cause unnecessary problems.
Trolling: This is creating a new problem, which is actually done for entertainment purposes
but causes social trouble. It may say about freedom of speech but issues privacy of a person.
National surveillance: Due to different issues, now a day’s different governments have
surveillance over the communication and social media handling, which causes privacy
breach.
2.5 The importance of Intranet and Internet in business in general
Benefit of Intranet
Improve productivity: provides useful tools to the employees to perform daily tasks
Corporate communications: Effective carrying out of 2 way communication between
workers.
Streamline Processes: helps to regulate automated workflow within the intranet.
Spur collaboration: It enhances to build a collaborative communication, bypassing the
hierarchy.
Knowledge management: The information that a company has can be used as a knowledge
base and intranet can capture, organize and retrieve the knowledge for the efficient workflow
in the organization (Anderson and Bolton, 2018).
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Benefit of Internet
Web Advertising: Using the internet, a retailer can advertise its products, discounts, new
launches to attract its customers.
Generation of Sales Channel: using internet, communication with suppliers can be done
easily. Also, the company can use online shopping system to directly communicate with
customers (Caro and Sadr, 2019).
Market Research: before launching of a product or to get the idea of customers demand,
market research is the most effective tool which can be done using the internet.
Customer Service: After selling a product, communication with the customers can be done
using internet and feedback can be generated.
3. Analysis and Discussion
3.1 Role of Information Technology in the selected business
The IT section of Boots uses its updated technology to manage its inventory, employees’ payroll,
connects each department, look after its insurance, taxes. Also through website, they display their
offers and maintain a relationship with their customers.
3.1.1 Types of different Information Systems that are used in selected business like
Management Information System, Decision Support Systems etc.
Management Information System (MIS): This system helps Boots to coordinate, analyze,
control and visualize confidential information and the IT department then store this in
persona database.
Decision Support System (DSS): Using DSS, Boots collect different useful information that
can help to decide the working strategy of the company.
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Knowledge Management System (KMS): Within Boots, KMS stores and retrieves different
accessible knowledge which helps to create, share, use and manage organizational
information through multidisciplinary approach (Boots.com. 2019).
3.2 Types of Networking Technologies that used in the selected business
The retail outlets of Boots use LAN for all over access of internet within the building. They
also use WLAN using potential router, so that the employees can access the internet from any
area within the building. To keep communication with other outlet, Boots use WAN and for
the transfer of secure data they use VPN.
3.3 Ethics and social issues in selected business
Ethical issue
Privacy: Using the internet, Boots maintain an auditable database about the employees
payroll, shopping habits of a customer, their preferences etc. Misuse of this information can
cause ethical issues.
Security: Boots have installed CCTV cameras which are connected through LAN which helps
to operate safely. But interfere with the privacy issue.
Social issue
Connectivity: Use of internet and intranet helps Boots to remain connected with the
employees as well as customers.
Acceptance of E commerce: Internet allows giving an online shopping system as well as
establishment of company website.
Advertising: using different social media and web advertisement, Boots advertise their
products or offers.
3.3 The importance of Intranet and Internet in the selected business
Intranet connects different systems using a unique IP address. Boots use this technology to
share its internal documents, information among employees using who can access them using
personal internet connection. Internet, on the other hand uses different TCP/IP protocol using
different IP addresses. The Boots employees use Simple Mail Transfer Protocol to mail each
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other, and File Transfer protocol using internet to transfer different files. For research and
development they use internet also.
3.4 List and explain the different stage of system development life cycle
System Development Life Cycle of SDLC is a multistep model or software which defines the
stages that are required to complete a project from the start to the end (Neubert et al., 2018).
It involves the following operations:
Planning: Resources are identified to plan the running of the project. This is needed to
develop a concrete idea about the objective.
System Analysis and Requirements: In this step analysis is done to check the performance of
the software and further requirements are noted down
Design: A blueprint of the software is made highlighting its design of the network,
application, user interfaces, databases, and system interfaces.
Development: Hardware is installed to start the task, and software’s are also coded and
loaded on the platform.
Integration and Testing: Testing is done to check that the new information system is flawless
or not.
Implementation: If the program is flawless, then it is implemented into source code by the use
of coding.
Maintenance: The software is maintained from time to time to adjust to changes and up
gradation.
4. Conclusions
In conclusion, it could be said that the importance of information technology cannot be
overlooked in the present scenario. It acts as the connecting wire that joins a company to the
world of scopes and opportunities. It helps to maintain integrity and privacy of an
organization. Therefore, boots should follow the ethical and social aspects and associated
risks of using IT and act to drive it in a positive way.
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5. References
Afolabi, I., Taleb, T., Samdanis, K., Ksentini, A. and Flinck, H., 2018. Network slicing and
softwarization: A survey on principles, enabling technologies, and solutions. IEEE
Communications Surveys & Tutorials, 20(3), pp.2429-2453.
Anderson, M. and Bolton, J., 2018. A service-oriented framework for collating retail
intelligence. Future Generation Computer Systems, 80, pp.400-408.
Benitez, J., Ray, G. and Henseler, J., 2018. Impact of information technology infrastructure
flexibility on mergers and acquisitions. MIS Quarterly, 42(1), pp.25-43.
Boots.com. 2019. Available at:
https://www.boots.com/webapp/wcs/stores/servlet/TopCategoriesDisplay?catalogId=28501&langId=-
1&storeId=11352&webrewrite=Y&geoOpts=Y [Accessed 11 Jun. 2019].
Capurro, R., 2018. Why Information Ethics? 1. International Journal of Applied Research on
Information Technology and Computing, 9(1), pp.50-52.
Caro, F. and Sadr, R., 2019. The Internet of Things (IoT) in retail: Bridging supply and
demand. Business Horizons, 62(1), pp.47-54.
Kasemsap, K., 2018. Retail management and electronic retailing. In Supply chain
management strategies and risk assessment in retail environments (pp. 139-158). IGI Global.
Kumar, B.A., 2018. Information technology the key to success of crm process in retail
marketing. New Trends in Business Management, p.74.
López Peláez, A., Pérez García, R. and Aguilar-Tablada Massó, M.V., 2018. e-Social work:
building a new field of specialization in social work?. European Journal of Social Work,
21(6), pp.804-823.
Moorhouse, N., tom Dieck, M.C. and Jung, T., 2018. Technological innovations transforming
the consumer retail experience: a review of literature. In Augmented Reality and Virtual
Reality (pp. 133-143). Springer, Cham.
Morimura, F. and Sakagawa, Y., 2018. Information technology use in retail chains: Impact on
the standardisation of pricing and promotion strategies and performance. Journal of Retailing
and Consumer Services, 45, pp.81-91.
Neubert, G., Ouzrout, Y. and Bouras, A., 2018. Collaboration and integration through
information technologies in supply chains. arXiv preprint arXiv:1811.01688.
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