Information Technology's Impact on Business Performance - Report

This individual report delves into the multifaceted role of Information Technology (IT) within the business landscape. The report begins with a literature review, establishing a foundation for understanding IT's impact on organizational success and failure. It explores the core concepts of IT, including its application in various business functions and its influence on productivity and performance, with a specific focus on the multinational retail company Tesco. The report further examines the ethical and social issues associated with IT, such as privacy concerns, patent challenges, and harmful actions, as well as social issues like employment discrimination and privacy. It then differentiates various networking technologies, including LAN, WAN, and VPN. The report also analyzes the growth of Information and Communication Technology (ICT) and its implications for businesses, particularly in areas like promotions, advertising, information collection, and online business. Finally, it discusses the role of IT in management, covering system development stages and the overall importance of IT for achieving business objectives. The report concludes by emphasizing the importance of IT for business in today's world.

Individual Report

Table of Contents
Literature Review............................................................................................................................3
INTRODUCTION...........................................................................................................................4
LO1..................................................................................................................................................4
Role of information technology in the success or failure of business.........................................4
LO2..................................................................................................................................................5
Ethical and social issue of information technology.........................................................................5
LO3..................................................................................................................................................7
Difference in Networking Technology........................................................................................7
LO4..................................................................................................................................................8
Growth of ICT and use of Internet and its use in business..........................................................8
LO5..................................................................................................................................................9
Role of Information Technology in Management.......................................................................9
LO6................................................................................................................................................11
Different stages of System Development..................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

Literature Review
As stated by Trantopoulos and et.al., 2017 Information Technology is use of computer,
storage, networking and other devices, infrastructure and processes to create, store, secure and
exchange all forms of information and data that exist in digital form. Information technology
mainly is used by organisational functioning and limits its use for personal and entertainment
technology. In context of organisational functions information technology consist of computer
technology as well as telephony technology.
According to Howell, van Beers and Doorn, 2018 businesses are using information
technology in several forms and have experienced benefits of information technology integration
in the business. in context of business, its uses extend to core business activities, particular
business problems, coordination of the members, communicating internal as well as external,
efficient management of the business and its resources. Some of the widely used system of
information technology are inventory management, management information system, customer
relationship management and communication system of the organisation.

INTRODUCTION
Information technology plays an important role in all types of organization. It is useful
for all company and information technology is help to improve the organization productivity and
performance. Information technology is also increase the reputation of business and promotion
activity of organization. This technology is important for the company’s survival and success.
Tesco is a British retail company. It is an multinational general merchandise and groceries
retailer. It plays a major role of Tesco’s organization. Information technology includes many
factors and this is essential for organization. Information technology is helpful for higher growth
in business and its play an important role for organization. This report will include the role of
information technology in the success or failure of an organization. This report wills also the
highlights the ethical and social issue associated with the information technology.
LO1
Role of information technology in the success or failure of business
Information technology is important role for all organization and it is used by all
business. This technology is used for faster innovation and improves the growth of the business.
The Tesco company success it’s depend on many factor ands it is analysis the use of right
technology. The information technology is used to provide a specific plan and data in business.
This technology its provide the many tools to solve complex problems in organization so it is
effectively used by Tesco organization. It is essential role for all organization its depend on
success of company. This role is very important for business world. Information technology
helps the, manger, organization and workers are a more efficient management. It can help the
management information system, inventory management and communication(Khanam, Siddiqui
and Talib., 2016). The role of information technology is used in decision making process for
organization.
Information technology is used by all organization and it is effective role to analysis the
problems. Its play an important role in various phases of company such as business growth,
resource management and decision making. It is effectively used by all organization and to
achieve higher growth of business for using this information technology. Today, information

technology is important part for all company and it is effectively used by all organization. In
Tesco’s organization its help for manger and workers to improve better efficiency in business.
The long term organization success, information technology is essential part for all organization.
Information technology is including many benefits to their business world and it is allowed the
organization to work more efficiently ands to maximize the overall productivity in business.
Many business is uses this technology and is to make a business become more successful
and improve performance of organization. Information technology has a main role fro success of
company. Information technology is vital part of every business plan and it is important fro all
organization in business world. It is also use in helping company to expand the market and
providing better information to Tesco’s organization. Its play a main role of company and it is
too used in business to make more successful. Information technology it so Crete a good
environment for organization and it is helpful for all company to achieve company goals or
objectives. Information technology is used many factor such as faster processing, improved data
store, smatter apps and wider information distribution so this technology is very helpful for all
organization(Trantopoulos and et.al., 2017.). Is make new innovation and to conduct business
mare efficiently manner. Information technology is greet role for all organization.
LO2
Ethical and social issue of information technology
Information technology is including much ethical and social issue for organization. Its
include many ethical issue is harmful action, personal right, copyrights, patents, trade secrets,
and access right. So this is main ethical issue of information technology.
Personal privacy
Personal privacy is main ethical issue of information technology. It is major ethical issue
for information technology in company and society to maintain the privacy of data for all
organization.
Patents

Patens are essential ethical issue for information technology and it is difficult to deal with
this patent ethical issue for organization. The patents holder in information technology has to
revel the all details of programs to all programmers(Sargolzaei and Nikbakht., 2017). Patents are
very difficult to compare the copyright so it is main ethical issue for information technology.
Harmful actions
Harmful action sis main ethical issue of information technology and it’s harmfully action
in the computer ethics is damage or negative consequences to the all information from
organization. It is important ethical issue for information technology and to recover from this
harmful actions is all efforts and extra time are necessary to remove this type of all viruses from
the all computer system in information technology so this are main ethical issue for information
technology.
Social issue
Information technology is include many social issue and it’s include health insurance
discrimination, issue related to socially vulnerable populations, privacy and confidentiality, issue
related to ethnicity, race and implementation and individual responsibility so this are main social
issue of information technology. Its affect the all organization.
Employment discrimination
Employment discrimination is main social issue of information technology and
employers why have concern about all coma pony employing is individuals who are risk of
failure illness. This is main social issue of Tesco’s organization and information technology has
main impact on this social issue for organization.
Socially vulnerable populations
This is main social issue of information technology and socially vulnerable population
it’s used on shred somatic mutations. This is main social issue and it is affecting much social
issue and to conduct is [proper manner in organization(Holstein, Dodig-Crnkovic and

Pelliccione., 2018). This issue affects the whole business and it is important issue of information
technology.
Privacy and confidentiality
This are main social issue of information technology and it is include many
confidentiality and privacy issue are affects any social issue fro all data is using with
organization. This are related to the all privacy and confidential data fro organization so this are
important social issue of information technology. So these are main ethical and social issue of
information technology.
LO3
Difference in Networking Technology
Networking technology is a technology which enables exchange of data between large and small
information systems that are primarily used by organisations. There are several types of
networking technologies. Difference in networking technology is as follows;
Personal area network- This is smallest type of network and is made of wireless model, one or
two computers or devices. This network can revolve around one person or in a building.
Local area network- This is a network which connect computers and low voltage devices across
a short distance and enables devices to share information and resources (Winzer, 2018).
Enterprises usually manage and maintain LAN for their operational purposes.
Wireless local area network- This is also a type of LAN but the different in both of these is that
this is wireless and Wi-Fi is most suited example of this type of network.
Campus area network- This is a network which is larger than LAN but is smaller than MAN.
These networks are usually employed in businesses, university and this can be spread to some of
the buildings that are fairly close.
Metropolitan area network- These are networks that span to a typical geographical area which
can be a city or town. Ownership and maintenance of the network in the geographical area is
handled by either a single person or the company.

Wide area network- This is the network that connect computers ad devices to longer physical
distance. This allows computers and low voltage devices to be connected when they are miles
apart this not only limits to connection but they can also communicate with each other.
Enterprise area network- This is the type of network which is created and maintained by the
organisations. This helps organisations to securely connect to its various locations and share
information and computer resources.
Virtual private network- Virtual private network allows its users to send and receive data in a
way that devices are connected to a private network. Through a virtual connection users of the
network can access private networks remotely.
The above discussion leads to conclusion that networking technologies have several
differences. These differences are based on their ability to connect to devices and locations and
area that is served by the network (Hossain and et.al., 2018). Resources that are required to
connect with the network is another basis of differentiation in the networks. Another point where
networks can be differentiated are ownership and maintenance of the networks.
LO4
Growth of ICT and use of Internet and its use in business
Presently information and communication technology has experienced significant
growth. Before 2005 use of information and communication technology was limited and
connectivity was also limited. The growth that information and communication technology have
experienced is because of development of infrastructure for networking in both forms internal
and external and integration of both forms of infrastructure resulted in growth of information and
communication technology. The information and communication technology came in several
ways that along with organisations business organisations, individuals also started using this
technology (Hu and Kapucu, 2016). This contributed to its significant growth. Later increased
knowledge of internet and connectivity increased use of information and communication
technology. Tesco is also using information and communication technology and use of internet
in business of Tesco can be discussed as;

Promotions and Advertising- This is one of the most important use of internet for the business
and Tesco is also using that. Presently all the organisations regardless of their size and scope
they are including digital and internet marketing in their marketing plans and policies. This plan
and policy has also been applied and implemented by Tesco. There are several ways through
which Tesco can promote its brand through internet. These are digital media, internet and social
media marketing. There are several benefits of this such as low cost and increased reach to
audience all over the world.
Collection of information- Business environment has become very competitive and to remain
and sustain in competition businesses are required to use different type of information so that its
decisions can become more effective and efficient. This is possible to this by collection and
analysis of information and Tesco can avail this information on internet. This also includes
decisions regarding competitors and their actions along with information related to customers
and consumer trend.
Online business- Tesco is a retail organisation and internet has enabled it to business through
internet and through online platform. Presently this is a important things and has helped business
organisations to gain and increase their customers through offline as well as online business.
Online platforms enables customers to buy products while staying out of physical locations and
facilities of the retail store. This also enables business organisations to sell products wherever
they want to buy.
Enhanced connectivity- Internet has enabled businesses and customers to connect with each
other directly (Niavand and Mahesh, 2018). Businesses can promote their brand and products
and customers can share their concerns and this also allows businesses to understand demand of
the customers so that they can deal accordingly.
LO5
Role of Information Technology in Management
Tesco is multinational organisation and this leads its management to become more
complex and critical. Presently as Information Technology has become vital part of all business
organisations and its functioning role which is being played by information technology in

management of Tesco is very significant (Khanam, Siddiqui and Talib, 2016). There are several
roles that are being played by Information Technology in management at Tesco some of them
are;
Communication between Employees, Suppliers and Customers
Communication is very important for all activities of the organisation and IT system is
playing important role in communicating with several parties. These parties are employees who
are required to communicate with each other, communication of management to the employees.
Along with these suppliers are also important stakeholder of the Tesco and they are also required
to communicate on timely basis so that they can avail their services to Tesco whenever Tesco
needs them. This is also possible and more effective and efficient to communicate with suppliers
with help of information technology. Other than this, customers’ are most important to
communicate by the Tesco. Tesco is significantly and effectively using Information Technology
to communicate to the customers. This communication is also known as promotions and
marketing through which customers are communicated about value that Tesco provides to its
customers.
Inventory Management System
Tesco is a retail organisation and this is why inventory management system is very
important and essential function of Tesco. Earlier it was complex and critical to manage
inventory because all the functions related to this were required to do physically. Inventory
management through information technology has made this very easy. Tesco needs to manage
adequate stock which is neither create shortage of the stock and at the same time this is also
important that inventory is not excessive. Both the situations are not favourable and for this
Information Technology plays important role. Inventory management systems track quantity of
each item that company stocks and later when quantity of the stock falls below the adequate
quantity this triggers for an additional stock.
Data Management System
Data management is another important managerial activity because currently
organisations are required to maintain and manage lots of data and information (Imran and et.al.,

2019). Information Technology creates feasibility for Tesco to create, manage and transfer data
from one place to another. This requires creation of digital version of all the data that Tesco
includes in its operations and functioning. This also contributes in ensuring that all the people
authorised to access the data can access data and information whenever they require to carry out
their functions.
LO6
Different stages of System Development
System Planning
System planning is the first stage of the process and this is the most crucial stage as well,
this stage of the development includes what is the problem that will be solved by the system.
This stage of the process includes defining the problems, determination of objectives and the
resources required for system development. Identifying different alternatives for system
development and what are the threats, constraints and integration and security of the system to be
developed. Along with feasibility study is also a part of the first stage of the system development
and this includes identifying and analysing feasibility of developing the system.
System analysis and requirement
This stage of the system development includes that information is collected, analysed and
validated (Kennedy, 2019). This also includes defining the requirements and prototypes the
requirements. Alternatives that are identified earlier are also evaluated in this stage. The needs of
end user regarding system are also examined so that complete system can be enhanced and its
goal can be achieved.
System Design
This stage in the development process includes development of understanding of
customer’s requirements, this phase also defines elements of the system along with its
components, security, architecture and complete interference of the system and type of data to be
used in the system. This means that in this phase logical structure containing detailed and
complete set of specifications that can be implemented in a programming language are

transformed. This stage of the development also includes training, maintenance and operations
plan for system development. Later in this proposed design is reviewed and designing document
is prepared so that can be used in next phase of system development.
System Development
This phase of the system development includes that system development task is carried
out in actual. This means that design is implemented in the source code, combining all the
modules together into training environment to detect errors and defects. Information systems is
integrated into its environment and install the new system.
System Integration and Testing
System and information is integrated and testing process is conducted. This stage also
ensures that new developed information can work flawlessly in the existing system.
System Implementation
This stage is followed by the development of the system after system has been developed
and excessively tested in order to ensure that nothing is wrong with the system (Lemke, 2018).
This is followed by the implementation. Design is implemented into source code. This is also
longest stage in development.
Installation and Maintenance
Once system is integrated this is followed by installation of the system. Maintenance of
the system includes that system is timely updated and maintained. Updating the system depends
on customers’ feedback.
CONCLUSION
On the basis of above discussion it can be concluded that information technology has
become significant and vital part of all business activities. They have made important
contribution in improving and enhancing business functioning and its operations through several
forms. This report discussed about information technology and how it is being used in the
business organisations. In this context some of the uses of internet in business were discussed