IT Systems: Evaluation of Value in Different Organizations

This report examines the value of effective IT systems in various organizational contexts, including airlines (British Airways), retail (Marks and Spencer), and hospitality (Hilton Hotel). It explores the use of IT systems for different functions, such as transaction processing, point of sale, and management information systems. The report analyzes the contribution of IT systems to achieving organizational objectives, focusing on knowledge management, customer relationship management, data management, and communication management. It also investigates how IT systems support value-added changes in business operations and provides practical IT system solutions for organizational scenarios, including faster task completion and improved customer service through the use of applications, e-commerce websites, and automated machinery. The report emphasizes the importance of IT in enhancing organizational performance and sustainability.

THE VALUE OF
EFFECTIVE IT SYSTEMS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
LO1.1 Use Of It Systems In Different Organization..................................................................1
LO1.2 Contribution Of It System To Achieve Objectives In Different Organizations' Context.
.....................................................................................................................................................2
TASK 2............................................................................................................................................3
LO2 Different ways IT system stores and process data..............................................................3
TASK 3............................................................................................................................................4
LO3 Use of IT System To Support Value Added Change..........................................................4
TASK 4............................................................................................................................................5
LO4 Practical IT System Solutions For Organizational Scenarios............................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
The study in which storing, sending and reviving of information is done then it is known
as information technology. It can include hardware, software, applications and many
more(Zhang and et.al., 2017). This report will lay emphasis on use of IT system with different
functions in different organizations, it will also explain IT system contribution to the
achievement of objectives in a specific organization, then different ways in which IT system
stores and process data for knowledge management, customer relationship management, data
management and communication management. All the topics will be explained with three
different organizations like Airline organization ( British Airways ), retail organization ( Marks
and Spencer ) and hospitality or catering organization ( Hilton hotel ).
TASK 1
LO1.1 Use Of It Systems In Different Organization
Information system is a group of work done together for managing data storage and
processing. IT system can be used in different organization for different purposes like:
 IT system in a hotel industry like Hilton hotels is related to computers systems which is
used for supplying information for different operations of a hotel. It can be used for
transaction processing system which allows a hotel business related all the transactional
task such as modification, retrial, collection of transactional data. It can also be used for
Point of sales system which tracks merchandise sales in all the sections of a hotel like
bar, restaurant or coffee shop. It can also be used in MIS systems which provide
information regarding management of facilities or staff(Anandhakumar and et.al., 2017).
 IT can also be used in a retailers' industry such as Marks and Spencer like it can be used
to store customers' data and analyse it so that if a customer visits next time they can be
provided with different offers or discounts etc. Point of sales system can also be used in
Retail industry for keeping a track of their sales etc. Transaction systems can be used for
billing, collection, modification related to all the transactional processes(Zuo, Xiong and
Iida., 2017).
 IT systems can also be used in Airline industry for collecting passengers information as a
record so that it can be analysed and can be used to provide customers services like their
preferred meal comfort etc. IT can also be used for transactional processes to provide
customers facilities to pay online and all their sales can be tracked. GPS systems can be
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used to track all the flights and their position to avoid collision or any accident. IT can
also be used for analysing customers information so that if any medical emergency arises
then it can be handled as the information regarding the passenger will be easily
available(Quand et.al., 2014).
LO1.2 Contribution Of It System To Achieve Objectives In Different Organizations' Context.
Information Technology system can help an organization to achieve their objectives in
any ways such as:
 IT system can contribute to achieve objectives of hotel organization like Hilton in many
ways such as it can help in record keeping of customers and all the information related to
functions of the hotel so that it can increase the efficiency of all the functions of the hotel
and providing better service to the customers objective can be achieved. IT can also
improve process of the hotel through ERP system and production system so that sales,
operations, quality of products can be improved and objective of providing quality
service and products to customers can be achieved. It can also be used in reducing cost
according to customers and still make profit which will accomplish the objective to
provide customers cost effective services and make profit(Nibali and He., 2015).
 IT system in retail organization like Marks and Spencer can be used to store and analyse
customers information so that organization can offer products and offers desired by the
customers which can help in achieving objective of understanding the customers and
increasing customers' loyalty. IT system can also be used to increase product quality and
manufacturing so that making a known brand and it products objective can be achieved
by the organization(Hua, Morosan and DeFranco., 2015).
 IT system can also be used in Airline organization like British Airways for achieving
their objectives like. Achieving customers need and improving their profit margin
objective can be achieved by managing customers need through IT systems. Objective of
being an airline chosen by most of the customers objective can also be achieved by
improving their services and quality of services through IT system. Objective of growing
their presence globally can also be achieved by improving their financial and operational
flexibility so that they can grow locally as well as internationally(Maleki, Pourfayaz and
Ahmadi., 2016).
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TASK 2
LO2 Different ways IT system stores and process data
 Knowledge management: IT system can help in knowledge management by storing and
retrieving knowledge, collaborating, collecting and storing different knowledge sources
and through capturing and using that knowledge to enhance knowledge process. It can
store data in database then retrieve it either through data mining, content management too
or any other simulation tool so that it can be used for different purposes like cost analysis,
updating data related to products or services. It can be used in Hotel Airline Industry. As
knowledge management can be used in for maintaining passengers database their
preferences, required services and products, payment related options and managing all
the transactional processes(Scott., 2015).
 Customer relationship management: There are many tools available for managing
customer relationship. These tools can be used for increasing business revenues like
providing products and services which are desired by the customers in a better way and
better quality, by increasing selling of products and services way faster, maintaining their
customer base and also by attracting new customers to increase their customer
base(Nieves and Segarra-Ciprés., 2015). This can be used in Hotel industry to manage all
of their products and services, sales, quality etc. These tools or software can be used to
manage all the front office operations like communication, marketing, billing etc.
Through this customer relationship management software analysis can also be done i.e.
when business was at peak when it was low, when sales of products and services are high
and when it was low.
Basic operations done by CRM tool or software are: to identify and target their customers, plan
marketing campaigns, generate sales leads. Helps in managing customer relationship to provide
them with the best quality products and services. It also provides required information to all the
employees regarding needs and wants of a customer so that relationship between customers and
organization is build even stronger(Maskell, Baggaley and Grasso., 2016).
 Data management and communication management: Data management and
communication management is important in any industry weather it is Retail organization
or Hotel organization or Airline industry. For data management first data must be stored
in database securely so that analysis of data can be done easily. For data management
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database should be integrated with the data collection system securely. Decision making,
management and planning is mostly done on the basis of processed data not raw data.
Data need to be interpreted before utilizing it. There are many databases available for
data management. Communication management can only be done if data management is
done properly. Communication management in an organization is simply monitoring,
implementing and reviewing modes of communication in an organization. It includes all
the networks through which communication can be made within an organizations. There
are many ways IT System can store and process data through data management and
communications like installing chatbots: It is basically a computer program through
which communication can be done either through text, video or audio. All these data is
stored in database and through data management all the required processed information is
delivered to the receiver. These can be installed in hotels, airlines etc. Another is through
installing a common network in which all the line are connected to each other through
which employees can communicate with each others.
TASK 3
LO3 Use of IT System To Support Value Added Change.
Business operations are transformational activities which changes all the input to output
which are sold to customers. Or it can also be said that it is to gather values from business assets
which ca either be tangible or physical. Service business operations in which intangible services
are provided to customers like in hotel business where many services are provided to customers.
IT system can be used to support value added changes like, applications can be used to provide
services like for booking a cab applications can be provided or online portals through which
customers can book rooms into hotels can also be used to improve business operations.
Merchandising business operations are operations in which physical goods are sold like in retail
organizations like Marks and Spencer. IT system can be used to support value added changes
like, using shopping applications or e-commerce websites where all the products will be
available to the customers for shopping and also all the details related to customers, products and
sales will be added to the database. Manufacturing business operations are where raw materials
are used to produce final goods it can be used in manufacturing industry in which different parts
or products are made like any automotive industry. IT system can be used to support value
added changes like, automatic machinery can be used to build products.
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All these operations can be used to improve performance of an organization like, if
applications and websites are used then for booking hotel room then it increases booking in a
hotel as nowadays customers prefer to book services online through websites or applications
weather it is room booking or booking a transportation vehicle or booking any other services
online, this will increase performance of hotel business and will add support to value added
change. Similarly, if online applications or e-commerce websites services are provided by retail
organizations then it will increase the performance of the company as customers will be able to
do shopping online, as many people today prefer to do online shopping as it is easy and
convenient and at last if automated machinery is used by organizations to develop product then
performance of an organization will increase as it will consume less time and less man power,
organization will be able to make more products and will be cost and time effective with fewer
defects. All these services are used to increase the performance of an organization.
Sustainability basically means to an ability to maintain a level at certain rate.
Sustainability in an organization can be improved with the use if IT System to support value
added changes can be done by implementing IT in different parts of an organizations like if an
Airline Organization is taken then its sustainability can be increased by making online booking
more convenient for customers so that they are willing to book their travel with the same airlines
. If business operations are performed well then performance of an organization will increase and
eventually sustainability of the organization will also increase.
TASK 4
LO4 Practical IT System Solutions For Organizational Scenarios
Faster task completion: IT systems have helped organizations to improve their
productivity of organizations by providing much software's through which all the offline paper
work can be made easy and time can be reduced as in many hotel industry they are using IT
systems to make customers entries and reducing paper work so that it will be easy for them to
search for any entry happened in the past.
Keyless lock: It was a very common hotel industry problem where many guest used to
forget or lose their keys. This problem has been solved through IT systems as now keyless cards
are being used in the hotels which are directly connected to the system it has also helped the
hotels to maintain database where availability of all the rooms is shown at present time and
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nowadays mobile applications are also used where customers can directly open doors through
applications.
online discovery: It has helped business organizations to build relationship between
organizations and customers through social media etc. Many organizations like hotels can easily
get in touch with their customers and even extend their customer base through these platform and
can increase their business. This has helped hotel organizations to focus on their customers and
their business.
Financial transactions has always been a problem for business organizations but IT
Systems has helped them to automate their financial processes, manage their sales and work-
stack and manage all their transactions and account through different software's.
Card payment: Card machines has also helped business to automate and make payment
easier both for organizations and customers. This has fastened the process of transaction and
management of data is made easier.
Before evolution of IT systems security of data and premises was a major issue for the
organizations but it was solved as nowadays biometric locks are installed in organization which
doesn't allow any outsider to enter into the premises and also anti viruses are installed into the
systems which provides security to the systems and protects it from any virus or cyber attack. In
airline organization customer data is very important before IT systems it was almost difficult for
companies to protect the data but now security in this try of organizations is at peak weather it is
data security or their premises security.
Production cost: IT systems has helped many organizations specially retail organizations
to reduce their production cost weather it is labour cost or production cost or any other
machinery cost all these cost have been reduced as many works is done by machinery.
IT system has also helped organizations to improve their brand image weather it is
through social media or reviews or any applications. As if any customers put reviews then online
then companies can easily reply to those comments and even advertise about their business on
television or online .
CONCLUSION
From the above study it can be concluded that there are many ways IT system can be used in an
organization for different functions and in different organizations. IT system has contributed in
many ways to achieve objectives of different organization in different ways. It System can be
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used to store and process data for knowledge management, customer relationship management,
data management and communication management. Uses of IT System to support value-added
changes for improving business operations,performance and sustainability has been explained.
At last recommended IT practices or organizational scenarios that covers range of business
problems experienced in the workplace had been explained.
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REFERENCES
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examining the relationships between e-commerce expenses and hotel
performance. International Journal of Hospitality Management. 45. pp.109-120.
Maleki, A., Pourfayaz, F. and Ahmadi, M.H., 2016. Design of a cost-effective
wind/photovoltaic/hydrogen energy system for supplying a desalination unit by a
heuristic approach. Solar Energy. 139. pp.666-675.
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