Analysis of the Value of Effective IT Systems for ASDA's Business

This report provides a comprehensive analysis of the value of Information Technology (IT) systems within ASDA, a UK-based retail supermarket. It explores the utility of IT across various business functions, including Human Resources, Finance, Marketing, and Research & Development, highlighting how IT enhances efficiency and supports decision-making. The report details how IT contributes to the achievement of organizational objectives such as product development, process improvement, cost efficiency, and globalization. Furthermore, it examines data storage and processing methods, including file storage, block storage, object storage, and cloud solutions, and discusses the role of knowledge management systems and customer data relationship management. The analysis also covers the use of IT in supporting value-added changes within the organization and concludes with recommendations for leveraging IT to address organizational challenges. The report emphasizes the importance of IT in maintaining a competitive edge and driving business growth in the modern digital landscape.

The Value Of
Effective IT System

Table of Contents
INTRODUCTION...........................................................................................................................3
P1. Utility of IT system in business functions pertaining to company...................................3
P2. Ways in which IT contributes in accomplishment of objective.......................................5
P3. Ways in which IT system stores and processes data........................................................6
P4. Usage of IT for supporting value added change..............................................................7
P5 Recommendations in relation to IT for generation of solutions for organisational problems
................................................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Information System can be referred to as the integration of interconnected elements for
the purpose of accumulation, storing and processing of valuable information together with
devising digital offerings, content and cognition of facilities. In the modern era, companies
largely make use of IS to manage and execute business operations in an effective manner while
simultaneously coordinating with clients and suppliers to remain competitive within market
place. The following report is conducted upon effectiveness of IT system within the premises of
ASDA, which is a retail supermarket having its headquarter in United Kingdom. This entity is
involved in the provision of grocery and general merchandising material. The report constitutes
usage of IT systems for improvement of business functions and accomplishment of objective.
Along with this, utilisation of IT for assisting value added change as well as storage and
processing of data is given. Lastly, recommendations are given to deal with issues faced by
entity.
P1. Utility of IT system in business functions pertaining to company
IT is a vast concept that inculcates advancements taken place within the confines of
technology, in relation to management as well as processing of electronic data. In the modern
era, many entities depend upon IS for effective conduction and management of operations as
well as communication with suppliers and suppliers and customers. For instance: companies can
take into use this system to process financial statements and organise the workforce in order to
reach to the targeted audience through the application of online promotion. In relation to ASDA,
there are a number of functions which are assigned with diverse set of roles and responsibilities.
While the company intends to transform for the adoption of technological advancements, the
usage of IT in all the business functions is devised as follows:-
Human resource
This business function has the role of recruiting and selecting appropriate candidates for
the welfare and upliftment of company as per the needs and requirements of entity. To ensure
maximum productivity and enhanced profitability, it becomes imperative for company to keep
effective workforce. With the utilisation of technology, the performance of employees is
enhanced in lesser amount of time and positives outcomes can therefore be obtained. The usage
of IT for HR department is thus discussed as follows:-
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Email: For informing potential candidates regarding the vacancies that are available
within the premises of company, HR management of the respective company sends a broadcast
mail to a large number of recipients. This helps ASDA in reaching a large pool of candidates out
of which the most appropriate and suitable person can be selected. The personnel, who are sent
the mail, are selected by making use of LinkedIn and other job platforms. Thus, through this, HR
department will be able to choose skilled and competent employees.
Online advertisements: This is one of the crucial processes through which HR
department can create awareness among a large number of people at the same time. Online
advertisements can be easily devised by HR department with the help of IT system. This results
in savings of money as well as time. By savings both the resources, ASDA can invest in
productive areas of entity, thereby leading to the upliftment of organisation.
Video conferencing: This can be used by the HR department for conduction of
interviews and online meetings with personnel. Through this, right personnel can be hired as
well as effective management can take place.
Finance
Every company conducts financial activities within their premises. By use of IT systems
and technology it has become easier for organisation to reach to a particular and correct result in
respect to a particular transaction, with no errors and bugs present. The efficiency of it, has
influenced ASDA to adopt transaction processing system which ensures in collection,
modification and retrieving of data. Role of this system will help respective organisation to have
a regular check on all the activities related to transactions which includes productivity,
processing, payment to suppliers and dispatching of raw materials.
Marketing
This is one of the most essential functions which are responsible for conducting
operations efficiently within an organisation. The increasing use of digital technology has helped
managers in an incredible way. The use of marketing campaigns such as advertisement and
digital media is increasing on a daily basis, which benefits managers to attain increased
efficiency in their working. This business function of ASDA makes use of IT as follows:-
Content creation: Sale copy along with advert can be stored upon computers by taking
into use Word processing software. Also, advertisement can even be developed for ASDA by
utilising graphic capabilities of computer. Besides this, sample of adverts of rival firms can
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easily be seen by making use of IT, in order to come up with unique and creative content that can
out-power others and stay ahead of all in market place.
E-commerce: ASDA is an international company having its operations spread across 633
locations all across the globe, signifying the large customer base possessed by it. With the help
of IT, the respective organisation can effectively conduct operations within e-commerce sector
so as to reach a large quantum of audience at one point of time and satisfying their needs and
wants. The orders for products are placed and payments for transactions are made with the
assistance of IT.
R&D
Post the conduction of activities of marketing, Research & Development function of a
company makes use of IT to gain knowledge about the strategies and practices being used by
rival firms such as M&S, TESCO, ALDI, LIDL, Sainsbury’s etc. With the help of simulation
within IT, the organisation can execute policies that can help it in identification of features
through which ASDA can gain favourable outcomes.
P2. Ways in which IT contributes in accomplishment of objective
Information Technology plays an important role in achieving different objectives of an
enterprise. It helps the organisation in carrying out operations in more efficient and appropriate
manner. ASDA company also took the help of IT in fulfilling their goals in many ways:-
Product development- IT performs major role in developing and altering products as per
the demand of customers. Computer aided design, marketing intelligence organisation, and
manufacturing software sum up together to develop products of an enterprise. ASDA with its
latest technologies and innovation helps to make its product stand out with unique features.
Process improvisation- Technology like ERP (enterprise resource planning) allows
management to review two things which are sales which have taken place and costs for their
services along with operating metrics. This makes internal processes cost effective by
regenerating legacy systems human resource, finance and other departments of ASDA. This will
also assist management to make functions of organisation more easy, quick and accurate.
Cost efficiency- Implementation of IT systems can be costly in starting but it will lead to
long-term cost savings which make it worth investing. With the help of IT, ASDA can execute
any task in an efficient manner and the time taken to execute these tasks will also reduce. In case
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of human beings, errors can be made but software will not make such errors which will increase
the accuracy of data if systems are implemented in required manner.
Competitive edge- Product development, cost savings and improving quality of tasks
helps ASDA to maintain high competitive edge in market. If ASDA will develop an application
for smart phones than their competitors will also do the same which means they will not lose
their shares in market. This can aid in bringing its products successfully in market place by
utilising software simulations, rapid prototyping and other IT based systems.
Globalisation- It plays an effective role in growing an enterprise by expanding its
products and services in global market. Like other organisations, ASDA had also achieved many
benefits from globalisation which helped this company to grow internationally. This organisation
can increase its productivity by promoting its products globally which in return will aid in
increasing sales of a business. ASDA can outsource most of their non-core functions like
finances, human resource, to offshore organisation and make use of network technologies for
staying in contact with their suppliers, customers and overseas employees.
P3. Ways in which IT system stores and processes data
Data storage can be referred to as the practice of maintenance of data within storage
medium. This is ascertained to be main function of general purpose computer systems. This can
be said to be the utility of recording media to retain information by utilising computers or other
type of devices. One of the most widely used forms of data storage is regarded as file object as
well as block storage that are both ideal for diverse set of business operations. File storage is
constructed as well as inexpensive whereby information is retained in folders and files. This is
found on hard drives as they do to the user. In context of block storage, information is retained in
evenly-sized blocks. This is regarded to be complex, relatively less scalable and more costly.
This is best for the data which is accessed and edited at frequent intervals of time. Within object
storage, information is stored as object with unique type of identifiers together with metadata.
Typically, it is less costly and it can be preferably utilised for information which cannot be
edited. It captures as well as retains digital data upon optical, electromagnetic or silicon-based
storage media. In addition to this, ASDA can make use of Cloud to store necessary and relevant
data. There are a large number of vendors present at marketplace that are engaged in provision of
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facilities for those who opt for them. The company can pay for Cloud as per the storage space
required. Further, entity can even acquire larger space when required and pay for it to vendor.
Knowledge depicts comprehensibility as well as awareness of data and measures through
which support can be gained for task and execution of decision making. For instance: ASDA
can utilise data related to time incurred by each and every employee upon a particular project for
revision of budgets in context of projects undertaken in future course of time. Post the gathering
of raw data, this is then converted into information and with inflexion of time, knowledge is
created with this. Knowledge management system (KMS) can be referred to as the structural
accumulation of devices, software, procedures, personnel and database for the purpose of
creation, storage, sharing and utility of experiences and knowledge of a corporation. This
constitutes various forms of knowledge. Explicit knowledge is ascertained to be objective which
is measured and then documented. ASDA by making analysis of original budget and actual
expenditure of an array of projects, is competent to make evaluation of several types of projects
in accordance with budget.
Data communication is defined as interchange of data among receiver and source
through transmission media like wire cable. It is local if communicating devices are present
within restricted geographical area or in a same building. The device like a mail sent by
employees of ASDA will be a source and the one who will receive transmitted data is said to be
receiver.
Customer data relationship management can be referred to as the strategic course of
action that is adopted for development of effective relationships with customers. This is a system
which provides assistance to entity in staying connected with streamlined processes in order to
ensure improvised profitability.
P4. Usage of IT for supporting value added change
In this digital age, Information Technology can be effectively utilised in order to support
value added change in business organisation so as to further improve their performance and
stability. This is ascertained to offer numerous opportunities to ASDA. It is essential for the
respective establishment to have best knowledge about evolving system changes in order to
reduce their networking lifecycle and thereby bring new networks which can satisfy customers in
delightful way. With the help of effective Information System, the respective corporation can
accomplish short term and long term advancements. Further, through the usage of Information
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systems, ASDA can effectively produce low cost products and thus gain high profitability.
Information system acts as a revolutionary way that contributes to business effectiveness that
further increased organisation productivity in an optimum manner. Information systems facilitate
increase in productivity and performance level of workers. This will effectively lead towards
collaboration in working system that further ensures smooth execution of work in desirable
manner. Along with this they are capable of collecting customer’s feedback with the help of
which they can further develop product and services as per the expectations of people prevailing
within market place. This tends to enhance their loyalty towards company which inflates the
chances of entity to attain high market share and profitability in contrast to competitors.
P5 Recommendations in relation to IT for generation of solutions for organisational problems
On the basis of above discussion upon utility of IT for a number of fields and aspects of
corporate world, it has been recommended that ASDA should make use of IT systems, for the
rapid execution of business operations as well as increment in efficiency of business processes.
The respective company possess outlets spread across different parts of the globe, owing to
which, arises the need to centralise its operations which can be optimally done by IT system. The
finance department of this entity can make use of IT to carry out financial transactions without
any bug or error. Besides this, company can have its own mobile application with the help of
which e-commerce operations can be easily executed to reach to a large base of audience and
enhance its sales as well as profitability. Through the app, ASDA can ensure fulfilment of needs
and preferences of consumers in accordance with their ease and convenience, at their own homes
only. Thus, with the usage and implementation of IT across various functions and departments of
entity, issues pertaining to business can be easily resolved in order to foster coordinated
operations across the organisational premises.
CONCLUSION
From the above discussion, this can be easily stated that IT is an effective tool or
procedure through which efficiency and effectiveness can be facilitated across the organisational
premises. Further, it has been analysed that this system can be implemented within a number of
business functions such as marketing, finance, R&D, human resource, so as to ensure that the
productivity of all of these is significantly enhanced. In addition to this, it has been recognised
that by making use of IT, the needs and wants of customers can be easily accomplished as they
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are provided with the products of their choice at their homes via online channels. This helps in
attaining maximum satisfaction from them and enhancing the overall share of company in global
market place.
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