Information Technology and Its Impact on Sainsbury Business Report

This report provides a comprehensive analysis of the role and impact of information technology (IT) on the business operations of Sainsbury's. It begins with an introduction defining IT and its significance in modern business, followed by a literature review exploring the role of IT in the retail sector, including its impact on efficiency, inventory management, and customer service. The report then examines different types of networking technologies, such as PAN, direct networks, and WAN, used by businesses. It also addresses the social and ethical issues associated with IT, including data privacy, employee monitoring, and information security. The analysis and discussion section focuses on the application of IT within Sainsbury's, including management information systems (MIS) and decision support systems (DSS), as well as the ethical challenges faced by the company. The report concludes by summarizing the key findings and emphasizing the importance of IT for businesses like Sainsbury's to manage and organize work, generate new products and services, and make informed decisions.

INDIVIDUAL REPORT

Table of Contents
INTRODUCTION...........................................................................................................................3
LITERATURE REVIEW................................................................................................................3
ANALYSIS AND DISCUSSION...................................................................................................6
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Information technology can be defined as use of any type of computers, networking
systems, managing the data in electronic form, different technologies which reduces the work
load of employees and many other techniques comes under information technology (Dutta,
Geiger and Lanvin, 2015). Now- a- days information technology is at boom because it helps the
employees in making there work easy with help of different types of machines and techniques
which company uses to operate their work.
1.1 Purpose
The purpose of this report is to understand the role and importance of information
technology in business. Also, to study the different types of network technologies which the
company uses to improve the equality of there work. The another reason behind working on this
report is to understand the social and ethical issues of using technology into business along with
understanding the importance of internet and intranet.
1.2 Background
The present report is based on company Sainsbury. It is the third largest company in the
retail sector which was founded by John James Sainsbury in the year 1869 that is around 150
years ago.
LITERATURE REVIEW
2.1 Role of information technology in retail business
In the words of Benckendorff, Xiang and Sheldon, (2019), information technology is
very necessary and crucial for the retail sector because of the reason that IT helps in reducing the
work load of employees and improves the efficiency of work. The IT in retail sector is necessary
because it helps the customers in offering self-help kiosks. Machines like self- help kiosks are
good application of IT in retail industry. Also, the use of the latest technique of online shopping
is also very benefiting for the retail industry because of online shopping the customer base of
retail industry has increased very much.
Wu, Straub and Liang, (2015), argued that use of IT also helps in managing the inventory
in an effective and efficient manner. This is due to the reason that managing and recording data
in electronic form with help of IT helps the companies in easily managing their inventory and
stock. With the help of technology usage in retail sector the companies can track its inventory

and material usage and also the Information technology helps in recording the incoming of
inventory, how much it has been used at what cost, and when the inventory reaches to its
minimum level it automatically places order for replenishment.
2.2 Different types of networking technology
According to Wang, Chen and Benitez - Amado, (2015), a network is a system wherein
two or more devises can communicate with each other. The networking technology is a process
which allows exchange of information and data among large and small information systems used
in by the retail industry. There are many types of networking technologies used in by the retail
industry. Lee, Thomas and Baskerville, (2015), articulates that the easiest and common network
is Personal Area Network (PAN). It is a basic type of network because it is made up of wireless
modem only a single computer or two along with tablet, phone and is made for one person in
same building only. These networks are available in small offices or residence and are managed
by single person from single device.
On the other hand Nielsen, Mathiassen and Newell, (2014), argues that Direct network is
a better option of networking technique. This is because of the reason that it is a network
connection between only two devises and no other device can share information among them.
The different tools used to support direct network are parallel ports and serial port along with the
use of USB. In the words of Sheikh, Sood and Bates, (2015), Wide Area Network (WAN) is
better because this type of network connects computers over a long distance and connects all
remote placed system over a single huge network and allows all the connected devices to
communicate easily.
2.3 Social and ethical issues of using technology
For the ethical issues relating to the use of technology is termed as techno ethics. In
views of Melián - González and Bulchand - Gidumal, (2016), techno ethics refers to an activity
of concerning all the ethical and moral issues which relates to usage of technology in society.
The major ethical consideration for the usage of technique is to protect the misuse of technology
and developing some principles to guide the person who use those techniques so that it benefits
the society as a whole. Marinagi, Trivellas and Sakas, (2014), argued that the more development
in the information technology can also damage the society and its working. The more use of
techniques and latest technologies into the business can also damage or deteriorate the working
and goodwill of business. If suppose with excess use of technologies the information of business

can be leaked to other competitors and society. This information can be wrongly used by its
competitors against the company.
In the words of Galluch, Grover and Thatcher, (2015), the use of excess technology may
also harm the society and people living there especially the young mass of society. Also, the
technology helps the employers and company in screening the applicant and verifying the
information of their workforce. For this the employers can take help of social media technology
also the latest information technology helps the employees in recruiting and selecting employees
with the help of information technology as much software have been evolved which reduces the
work of human resource manager as they can implement this software for their help.
2.4 Importance of internet and intranet
According to the Tayeh, Al - Jarrah and Tarhini, (2015), The internet is important while
executing communication in any form of business by mails and other professional technologies.
The internet connects a million or a billion of device and it also allows communication in
effective manner all over the globe. The traditional method of communication is very time-
consuming but the latest technologies of internet communication saves lot of time of businesses.
they able to execute effective decision-making.
In the view point of Pierce, Snow and McAfee, (2015), The importance of internet also
includes easier and accessible flexible work which enables the employees to work in relax mode
at their place. The flexible working of employees gets easily access through use of internet. Also,
it helps the employees in managing cost-efficient work along with less time consumption.
On the other hand Audet, Squires and Doty, (2014), Intranet is also important in
executing internal communication. The employees within different departments and teams shares
important information and knowledge seamlessly by the help of intranet. Also, they able to
access quick and easy information with other employees.
In addition to Mehta, Hall and Byrd, (2014), the intranet is important for accessing not
only better internal communication but also sharing best resources within work space along with
best practise method with an ease. This helps businesses to work in efficient manner. By using
intranet, businesses also improve their service to customers by accessing proper and accurate
information to staff and this lead the level of customer service on higher path.

ANALYSIS AND DISCUSSION
3.1 Role of information technology in business
The role of information technology is very crucial and important for all the types of
business (Stol, Ehrenfeld and Epstein, 2014). The role of information technology in Sainsbury is
as follows-
Manage and organize - The information technology plays an important role in managing
and organize work of Sainsbury group. This helps company to attaining efficiency in their
working along with cost effective management and organize techniques such as management
information system. The Information technology enables the company to measure the manner in
which tasks accompanied by employees.
Inquiry of particular problem - The problem prevailing among customers regarding their
need and preferences are also inquired by information technology through Decision support
system. The company Sainsbury able to execute decisions with the use of these techniques of
Information system. The Decision support system is cost-efficient and consumes less time as
compared to manual decisions.
Generate new product and service - Sainsbury group plc generates new products by the
use of Decision support system by analysing the need of customers. The role of Information
technology is to make proper arrangement of information regarding need of customer so that the
company executes their decision in line with the need prevailing among the customers. The
decision support system interacts with computer based system intended to help the management
personnel of Sainsbury in executing effective decision-making.
3.1.1 Different types of Information system used in company
There are different types of information system which the companies can use in order to
ease there work. The different information system used by Sainsbury are as follows-
Management information system- this is a computer based system which is used by
Sainsbury because this system helps the company to organize and manage all the information of
the business in the electronic form. This helps the manager in easily evaluating and monitoring
the information of all the department into a single system (Tarafdar, Gupta and Turel, 2015). The
main reason behind use of MIS is that the application of MIS improves the quality of decision-
making as all the data is recorded so the manager just have to evaluate the data and take decision.

Decision support system- this is a computer program system and application used by
Sainsbury. This application helps the manager of Sainsbury in analysing the data and information
of business and then take decisions relating to those data (Nielsen, Mathiassen and Newell,
2014). This type of information system is preferred by Sainsbury because it saves a lot of time in
taking the decision because all the data is already recorded with use of MIS so the managers just
have to analyse the data and take decision.
3.2 Various types of networking technology used in business
There are many types of network technology used by Sainsbury. Some of them are
discussed in the adjoining points-
Local area network (LAN)- this is the most frequently used network by Sainsbury. This
system connects the low voltage devices with large sized computers used by Sainsbury at a
shorter distance that is within the premises of Sainsbury only.
Wireless local area network (WLAN)- these are system used by Sainsbury where it
makes use of wireless network technology to connect all its system within the company with
help of WiFi and other such networks. This network does not require devices relying on physical
cables to connect to the network.
3.3 Ethical and social issues in the business
The company Sainsbury face different ethical and social issues which will be highlighted
below as : Privacy and technology concern - The Sainsbury monitor their employees by use of
technology like track history of website and emails. The company run into ethical issue
of entering into privacy of employee when they operate under tablet or computers under
work place for their concern for privacy. Travel ethics of business - The company Sainsbury requires employees as well as
leadership on travel. The ethical issue in regarding it is by taken advantage of policies of
travel. This includes purchase of food and beverages during travel by using personal
credit card under the booked trips in order to attain rewards of cash. This is an ethical
issue which generally face by Sainsbury by their employees. Peril of Employee favouritism - In Sainsbury, the employees are facing favouritism
under which company is fall under ethical issue. The leaders show favouritism among

employee beyond any merit which not only demoralize employees but also disturbs the
working environment of Sainsbury. The peril of employees favouritism affects belief of
other employees and depletes their efficiency.
 Information security - The data of employees are generally stored at cloud computing
technology which is used by Sainsbury management personnel. Employees data has a
risk of getting hacked as the cloud computing lacks in data security. By the increasing use
of such technologies employees of company Sainsbury group plc get hurt their feeling
and belief. This also break their trust in the working with company.
3.4 Importance of Internet or Intranet in Sainsbury
The Internet and intranet is very important for the successful functioning and managing
operations of Sainsbury. The following will be stated as importance of intranet as well as internet
are : Effective communication - The internet and intranet is useful in managing effective
communication in the Sainsbury group. The company uses email and other techniques for
executing communication with other employees. The internet is accessible through
anywhere which enables flexible working environment for the employees. Enhance management - The Sainsbury is able to maintain as well as enhance their work
with the efficient employee and with proper communication with them. With the use of
internet and intranet in Sainsbury the smooth flow of communication is operated under
the company. Market research - Internet is helpful for the Sainsbury is conducting market research and
survey to attaining knowledge of consumer needs and preferences. The company
normally survey the latest trend through internet while launching any new product or
service.
 Effective team management and their working - The Sainsbury group plc is attaining
success due to the effective team management. The team members are smoothly and
seamlessly communicate with other members by the use of intranet. The intranet
manages the communication under Sainsbury effectively (Maier, Laumer and Eckhardt,
2015). Also, the less time consumption enables the employees and management
personnel to execute important decision quickly and efficiently.

3.5 Different stages of System Development Life Cycle
The System Development Life Cycle (SDLC) is a framework which involves all the
procedures and policies which are used in altering and developing system through their life
cycle. It can also be defined as a process to create and develop hardware system or software
system or a combination of both to meet the expectation of consumers. The different stages of
SDLC are as follows-
Planning- this is the most important phase in SDLC because during this phase the
problem is defined and some objectives are set to solve these problems. For planning the person
has three choices either to develop a new system, improve the current system or leave the
system.
Analysis- this is next step of SDLC wherein information is gathered and analysed that
what are the expectation of the end user, what they need in the system and well they perform.
System design- as the requirements and need of consumers are studied then next step is to
define all the elements of the system. It means that all the components which comprises the
system are analysed and checked.
Implementation- the next step is to implement what the person has thought after the
analysis of the system to be developed and its components the next step is to implement all the
design and components so that a system can be developed. In this phase the system is made and
is ready to be presented in the market.
Maintenance- this is the last step of SDLC within which time- to- time maintenance of
the prepared system is checked and reviewed properly that whether there is any problem in the
system or not (Henseler, Hubona and Ray, 2016).
CONCLUSION
With the analysis of the report it can be concluded that use of information technology is
much beneficial for every company and every sector. With the study of report it was concluded
that information technology means use of different types of technologies to help employees to
reduce their work and use those techniques. With the help of the report the reader was able to
understand the importance of information technology both in the retail industry and also in
Sainsbury. Further it discussed some various types of network technology like personal area
network, wide are network and many more. Furthermore, it outlined some ethical and social
issues of using technology in the business. Next it discussed the importance of internet and

intranet in the business. At last the report described the different stages which comes under the
System Development Life Cycle.

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