Impact of IT Systems on Business: Tesco's Transformation

This report provides a comprehensive analysis of IT systems within a business context, using Tesco as a case study. It begins with an overview of Tesco, a multinational retailer, and then delves into the impact of IT systems on various aspects of the organization, including business strategy, organizational culture, structure, and management processes. The report highlights the contributions of IT systems in solving business problems, such as improving productivity, reducing costs, and enhancing customer relationships. It explores the use of IT systems in different functions of the organization, including inventory management, customer relationship management (CRM), and accounting information systems. The report also examines the transformation of manual processes, such as manufacturing and human resource management, through the implementation of ERP systems. Furthermore, it discusses different ways IT systems store and process data, emphasizing the importance of ERP for streamlining workflows and improving efficiency. The report concludes by recommending practical IT solutions for common business challenges and summarizing the key findings regarding the role of IT systems in driving business performance, operational improvements, and sustainability within the organization.

BUSINESS IT SYSTEMS

Contents
INTRODUCTION...........................................................................................................................3
Overview of the organization......................................................................................................3
MAIN BODY..................................................................................................................................3
IT system impact and their contribution to solving business problem........................................3
Use of IT system within different functions of the organization.................................................5
Manual process intends to transform...........................................................................................6
Different ways IT system store and process data........................................................................7
Ways in which IT system can support value added change in order to bring improvement in
business performance, operations and sustainability within the organization...........................10
Recommendation of practical IT solution for common.............................................................11
CONCLUSION-200......................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................12

INTRODUCTION
Information technology systems are a type of platform which is used for management and
storage of information or a technology product. Most of the IT system within an organization are
used for storage, maintenance and analysis of their data, business operations and for many other
factors. IT systems within organizations helps them to transform their manual process so that
those processes can be completed in a much easier manner (Arnott, Lizama and Song, 2017). IT
systems within organizations not only help them to reduce their manual work but also helps them
to reduce their operational cost, reduces time of completing a business process and operation as
well as also helps them to enhance accuracy of their business operations in a much more
appropriate and enhanced manner. This report will lay emphasis upon role of IT systems in
development of organizational objectives, analysis of IT system which is required to be focused
upon for transformation of manual business operation, ways in which IT system can support
value added changes within an organization and recommended practical IT solution that an be
focused upon to bring changes within the organization.
Overview of the organization
Tesco is a British multinational retailer that was founded in 1919, whose headquarter is in
Hertfordshire, England, United Kingdom. It operates in several countries across Europe and
Asia. If their gross revenue is compared then they are the third largest retailers present in the
world and if their revenue is measured then they are the ninth largest retailers present in the
world. Tesco sells various kinds of products and have diversified product and service range such
as: books, electronics, clothing, furniture, financial services, petrol, toys, software, telecoms and
internet services. they have various subsidiaries such as Tesco Bank, Tesco Mobile, Tesco Store
and many more.
MAIN BODY
IT system impact and their contribution to solving business problem
Information technology can impact an organization in many different ways. IT systems can help
in automating organization’s production processes, reduce operational cost and can also help in
enhancing desired output results (Beynon-Davies, 2020). Usage and implementation of IT
system within an organization can also help them to shape their business strategies so that
chances of successfully implementing IT systems within an organization can increase.
Implementation of such kind of system within an organization helps in increasing potential of
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enhancing their chances of achieving success, implement their strategies in a more appropriate
manner, increases accuracy of output results and also helps in resolving business problems in a
much appropriate manner. Implementation of such system within an organization can drastically
change busines landscape (Chowdhury and et. al., 2018). Not only this, it has increased influence
of their business strategies upon others. Implementation of IT systems helps the organization to
create opportunities and issues in order to enhance the business.
IT systems within an organization impacts in many ways such as: business strategy,
organization culture, organization structure, management process, work and the workplace
environment.
 Business strategy: IT systems helps in creating new opportunities for bringing innovation
within their products and services (Corea, 2019). Appropriate and effective IT systems can
help an organization in bringing flexibility within time management i.e. they will be able to
provide service to their customers 365 days and 24*7. It can help organization to enhance
potability of their products and services i.e. will be able to take product and service closer to
their final customers. Information captured can be used for other purposes as well
 Organization culture: Adaptation and implementation of new IT systems can help an
organization in enhancing their overall organizational culture. With the help of IT systems,
information flow within the organization among their employees, customers, suppliers and
many other people can be enhanced. With the help of usage of advance IT systems within an
organization an innovative working culture can be developed within an organization.
 Organization structure: Implementation of IT systems within an organization has created
need and requirement of new job post and designations for handing and using advance
systems. Not only this, it has reduced requirement of some of the job post and designation
within the company. Various research conducted in this field clearly explains that implement
of various kind of system within an organization has enhanced control of top management
upon business processes of an organization (Bec, and et. al., 2017). Due to all of these factors
organizational structure of a company is also impacted due to such IT systems.
 Management process: IT systems adaptation has majorly impacted overall management
process of an organization. It has helped in providing support to unstructured management
process. It has helped in management and storage of large amount if information that can be
stored and managed in a proper and effective manner. with the help of these systems
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organizations are able to manage their information in a proper manner and is also able to take
decisions in a structured manner.
 Work: and workplace environment: It has drastically impacted overall working environment
and work of professional in many ways. it has increased access to various resources,
information, enhanced communication in a much better manner. Usage and implementation
of IT system has also brought changes within way of working as well. In fact, with the help
of these systems flexibility in workplace has also increased.
IT systems has contributed in resolving business problems in many different ways as well.
Sone of the most common business problems that have been resolved because of implementation
of IT systems within an organization are: it has helped in completing task or activities in a much
faster manner which has further helped in increasing overall productivity of the organization
(Trieu, 2017). It has further helped in increasing access to resources and knowledge for the
employees and has made it available for them at finger tips. It has helped in reducing
administrational and operational cost of various business functions by automating financial
processes, enhancing work process and workstack in a proper manner. most of the time
organizations used to face problem in work management of employees due to advance IT
systems flexibility of working from anywhere has increased. One of the major problems faced by
business was targeting their customers but to implementation IT systems within organizations
has helped them in enhancing their relationship within their customers with the help of
advertisement and marketing of their products and services and with the help of post sales
customer service.
Use of IT system within different functions of the organization
Information technology system is used in many different ways in various functions of an
organization. It is used within organization in different functions such as: planning, managing
budgets, inventory control, sales goals, management of point of sales transactions and logistics.
Some of the most common use of Information Technology system within different functions of
Tesco have been explained below in a much- detailed manner:
 First of all, IT system within Tesco is used for inventory management. With the help of such
systems Tesco can easily trach their inventory level, sales, order and deliveries (Popovič,
Puklavec and Oliveira, 2019). Not only this, with the help of IT systems Tesco can easily
manage their work orders, manage their material bills and many other productions and
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manufacturing related documents. Advance inventory management systems can also help in
tracking each and every inventory item and their movement. Some of the inventory
management technology that has been used within Tesco are: RFID which helps in
increasing accuracy of monitoring stock and its efficiency.
 Another IT system used within Tesco is CRM which is majorly used for customer
relationship management i.e. it helps in building relationship within their customers and
further helps in retaining current customer base. This type of system helps the retailers to
drive their sales and retain their relationship within their current customers. Not only this,
with the help of CRM systems, organizations can also store and analyse data of their
customers so that they can analyse their sales history, enhance communication with them and
provide excellent service to the customers. In fact, feedback provided by the customers can
also be analysed so that Tesco can get to know their customers and their thought about their
products and services in a much better and appropriate manner.
 Accounting information system is another type of information system which is used by Tesco
for management of their accounts and financial process (Fareri and et. al., 2018). Accounting
information system helps Tesco in collecting, process, managing and storing all kinds of
accounting and financial data. It helps in management and tracing of all kinds of accounting
activities in a better and accurate manner. Some of the major financial and accounting
functions that can be managed by this system are: auditing, financial reporting and
accounting, tax, management accounting, credit and debit information and many more.
Manual process intends to transform
Currently Tesco manages all of their manufacturing and distribution process manually. Not
only this their human resource management process is also partially manual. They manually keep
track of all the candidates that apply within their origination. Not only this, information of all the
employees is also managed and stored manually within the system. it is important for Tesco to
automate all the information storage, manufacturing and distribution process in a much-
enhanced manner. in order to transform this manual process of information storage and
management for employees and for manufacturing processes (Chamoso and et. al., 2018). For
this process, Tesco can use and implement an effective ERP system within their organization.
Implementation of ERP system can help Tesco in management of their employee’s data,
management of candidate’s applications applied within their organization as well as can also
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help in management of manufacturing process. Implementation of ERP system can help Tesco in
management and automatic storage and updating their employee’s information and records in a
much better and enhanced manner. with the help of this system they will be able to strengthen
their overall human resource functions and will also be able to analyse that information for
decision making (Sun and et. al., 2016). Implementation of ERP system will not only help Tesco
in transforming their manual processes but will also help them in reducing implementation of
different and segregated information systems. They will be able to use it as a common system for
human resource management, time management, training and recruitment management, planning
and design and for many other purposes such as decision making.
Different ways IT system store and process data
System and processing play insignificant roles in the building the company as this have the
serving as the company essential building blocks and significant support. Hence, this is
important for the business to have the incorporations of business efficiency and accuracy system.
There is serving the company essentials building blocks and support with the increased
predictivity and efficiency (Eliseev, Kachalov and Farkhadov, 2017). This have the ensure better
record keeping, data safety, organizations and regularity compliance. Information system make
it possible for their company to make the expansion in the offering. ERP (Enterprise Resource
Planning) is a business management software. This system is important for the company as it
have the allowing of the streamline workflow in the completion of the day to day operations.
This is there disposals to have the speed up there customer accommodations along with the
eliminative and respective back offices processes , consolidate he data in more efficient manner
and the improving team communication.
In the global world, there implementation of the ERP system in there Tesco companies have
the plenty level of offering in term of the operational and strategies along with organizational
benefits which term to the part of ranges which make the reducing in the cost and shortening
the cycle times for importing the supply management and standardizing the work processes.
On addiction to that’s the ERP systems have the offering of their number tangible benefits as
such as the increase in the employee morals and better level of company image.
 For Knowledge management
This have been termed as the discipline process which have the involving of the compressive
gathering of the respective information and knowledge’s as the organization development and
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analysis make, she sharing goals of the effective utilization. The more level of management of
the knowledge in the company tends to makes the improvements in the organizational agility
along with better and faster decision making and increased rate of innovation in their perfect
manner. ERP systems itself have the clear belonging as serving the system of knowledge base
management which tends to have the underlying technology in term of the relational data base.
In addition to the Tesco from the benefits of the knowledge management systems s in term of the
stating and the implementation of the ERP system (Manogaran, and et. al., 2018). The
knowledge of the ERP system have there specifically make the management and operation in
turning out to be more evident as it is the critical level of success factor or company in term of
managing the suppliers and logistic providers in order to retain and refrains the control over
business but not be controlled by the system.
As the benefit for the Tesco by implementing the knowledge management have the servals
level of benefits of eth Tesco company as well developed, properly implemented knowledge
management system make the organization to have the expectation to m have the avoidance
of the same mistake will not done in repatriate manner.
There is the existing of the more level of competes in the market of the effective era. In
addition to that’s it have the encasing there internals control in formation of the better
relationships with customer.
 For customer relationship management
The importance of the CRM have their biggest reason as it will make the proper enabling of
business to have the proper level of outlook of the customer as the term of the individuals
peoples rather than comparing them as homogenous group. The company have to creates the
better level of the understanding in the terms of their wash and individual specific needs along
purchasing pattered and customer history as delivering the better services. CRM have the proper
level utilizing there major services such as the conducting the back office activities which is
more in manner clearly oriented to the management of their enterprises having the major
concerned for the planning resources to be the dune best endue place. As per the implementing
the ERP system is the customer relationship management as having the single point of the data
entry and rogues make the integration of the ERP and CRM system to have the enterer the
duplicate data in another systems m for saving them as per regular basis in there each valuable
times. This lad to have he reduction in their human errors along with integration leads o have
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reducing in amount of the manuals typing staff (Alharthi, Krotov and Bowman, 2017). This
make the positive aspect for the Tesco as here to gains more saturate suppliers along with
retaining and attracting more level of customer basis. This leads to the complete customer
lifecycles as the number of business are fighting for the same customer withing one industry
focusing the niche market.
 For Data management (Technique adopt for DM)
Data management system is the essentially there nothing more that the computerized data
system which have the prop level of facilitation in terms of performing there several level of
operations which can be such as the manipulation of the data for management. This tend to have
the application in the end users and applications to have the application programmes for the
sharing of data as the systematic method of creating, updating, retrieving and storing information
in a database (Karafiloski. and Mishev, 2017). The ERP package have the containing of the
several level of modules which work in the company for the way of integrated manners. As the
data which is incorporated there on have the need to be accomplish in the accurate, completes,
timely and consistent manners which make the successive reason to the establishment of the ERP
system. As the result more time tends to been saves which make the Tesco company operation
more level of the efficient providing the internal visibility and better tracking system. As the
result more improvements in the inventory lead to times and accuracy tends to the increases by
keeping ever thing in concise manner.
For Communication management
This have the referring the flow of the information’s within company’s or the inclusion of
the multiple company in more way tending to be focused for the planning and the executing
the various method of the communications in order to make the specific reach to customer.
Hence the communication plays as the vitals and dynamic level of the role in completing nay
level of busier model. In addition to that’s the implementing of the IT systems can be turned out
to be the pat of challenges which signal a bigger change from the pat to savvy management
(Stoica, and et. al., 2017). To have the most successful ERP systems make the inclusion of the
ripening the company cultures for embracing the innovation and strategically communicating the
employee who are engages. There have been cited the change management and communication
among there sticky missteps which are often have by the IT leaders. There is the importance over
the implementation of the team for ERP as involving there repetitive in the terms of employing
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and deployment process to have the ensuring the communication and system training materials
by addressing the specific employee concerns. Hence as the result Tesco by implementing the
ERP management have the servals level of benefits of eth Tesco company as well developed,
properly implemented knowledge management system make the organization to have the
expectation to m have the avoidance of the same mistake will not done in repatriate manner.
Ways in which IT system can support value added change in order to bring improvement in
business performance, operations and sustainability within the organization
The way in which the ERP system have the supporting are business to add the more level of
values. As the result there ERP system have the proper level of designing the o make the tacking
of the issues by helping out to make the reducing in the cost along with becoming smarter,
leaner, and more agile organisations.
Tesco have befitted as the to have the greater level of control by providing the 360 degree of
access which going through the dashboards which is happening the business real time (Meehan,
and et. al., 2017). This will be helpful for company to have the forward moves as tasking their
right level of information of fingertips in order to understand customer demands.
This have turned out to be simplified process to have the supporting the operational process as
the solid foundation s by needing the way of customization. In addition to the way ERP can have
the change management can be turning out to have the using of the dynamic tools to make the
indication rearguing the change which are need to be made.
There is the access of information’s that’s is need e to be circulates among the company
executives and individual team members, access to accurate information is imperative to
supporting change management effectively. During an internal transformation, all members of
the company should have access to the same information (Kaur and et. al., 2018).
On the other hand communisations have been termed to be successful initiatives in terms of
communicating the vision and strategy in intense manners as there is the need to make proper
level of underrating regarding Gere firm logistic operations along with respective ideology to
change.
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Recommendation of practical IT solution for common
As the recommendation for the improving the ERP system with the better way od
implementation which makes their improvement in the efficiency by adding the less level of
cost. As the recommendation as the
Curb ERP employee knowledge erosion
As most of the new employee have the termed to make the previous employee training for
performing the different business function (Al Omar, and et. al., 2017). So, the company should
make he serious holding instructor led training by an outside consultant or even training led by
an internal ERP super-user to save on costs.
To have the consociating the disparate systems
To have the running of the multiples separate systems can be inefficient and error prunes. So the
company should have the side systems in the affording of the ERP modules for the latest prices
on the term of functionality in perfect manner.
To have the elimination of the obsolete resort
The management of Tesco should have their proper level of meeting regarding there various
management systems along with revising their ERP reports and get out the rid which are
obsolete.
Improvement in the system performances with data archiving
The company should have the significant performing over the comprehensive deleting the
archival old systems data which is infinitely make the improvement in the ERP systems
performance.
In addition, there tends to have their usage if the desktop software (like Excel/Access) to copy
data and create solutions separate from the ERP data base.
To have the purchasing of the bolt on third party solution in order to get the addition of the
new feature which have been needed by the Tesco company.
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CONCLUSION
From the above report , it can be stated as IT systems within organizations helps them to
transform their manual process so that those processes can be completed in a much easier
manner upon role of IT systems in development of organizational objectives, analysis of IT
system which is required to be focused upon for transformation of manual business operation. It
has increased influence of their business strategies upon others. Implementation of IT systems
helps the organization to create opportunities and issues in order to enhance the business. In fact,
feedback provided by the customers can also be analysed so that Tesco can get to know their
customers and their thought about their products and services in a much better and appropriate
manner. They will be able to use it as a common system for human resource management, time
management, training and recruitment management, planning and design and for many other
purposes such as decision making. To have the most successful ERP systems make the inclusion
of the ripening the company cultures for embracing the innovation and strategically
communicating the employee who are engages. So, the company should make he serious holding
instructor led training by an outside consultant or even training led by an internal ERP super-user
to save on costs.
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