Business Information System Evaluation: TESCO's Challenges and Systems

This report provides a comprehensive analysis of TESCO's business information systems. It begins with an introduction to business information systems and their importance in organizations, followed by an in-depth examination of the components of TESCO's information systems, including hardware, software, databases, networks, and procedures. The report details the various types of information systems used by TESCO, such as DBMS, ERP, GIS, and ESS, and evaluates their role in achieving competitive advantages. Furthermore, the report explores the challenges that information systems bring to TESCO in the new business environment, including issues related to management processes, organizational environments, leadership, technical systems, and personnel. The discussion also covers the challenges of using new IT tools, such as selecting the right technology, employee and customer resistance, and integrating information systems, providing a thorough overview of the complexities and strategies involved in managing business information systems within a large retail organization like TESCO.

BUSINESS
INFORMATION
SYSTEM

Table of Contents
INTRODUCTION...........................................................................................................................3
Analysis of components of Information System..............................................................................3
Information System used by TESCO company..........................................................................3
Evaluation of information systems .............................................................................................4
Challenges brought by the information systems to the company in the new business
environment.................................................................................................................................6
Discussion on the challenges in the new business environment......................................................7
The challenges of using new IT tools.........................................................................................7
Difficulties in building successful information systems ............................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business information system is considered today as the main component of any
organization, something without which an organization could not operate smoothly(Abbasi,
Sarker and Chiang, 2016). Information system facilitates work of the management and
employees for achieving operational excellence. TESCO is a British multinational third largest
retailer including groceries and general merchandise headquartered in Welwyn Garden City,
Hertfordshire, England, United Kingdom. Having revenue of 6.3 billion pounds (2019). This
study aims to analyse, evaluate components of information system along with challenges in
deploying Information system in new business environment along with difficulties of having
Information system.
Analysis of components of Information System
Information System used by TESCO company
An information system defined as the software that helps organize or analyses data, so
main aim of an IS(information system) is to turn raw data into useful information data or that can
be used for decision making in an organization like boundaries, communication channel, control
and web of coordination. It compiles system theories, research sources and objectives together
and get one conclusion. Information system of TESCO gives shape around company's structure.
TESCO company contain different types of information system like DBMS (data base
management system) is a combination of software and data which is main purpose to give
general information to organization, there are number of specialized information system which is
specially design to give special information about organization or to carry out specific analysis
tasks. For example, ERP, GIS and ES(Appelbaum, and et.al., 2017). ERP(enterprise resource
planning) is an information system used to integrate external or internal information of entire
organization.
GIS (geographic information system) is used to analyze all types of geographical data or
manage. ES(expert system) is main purpose to solve complex problem by reasoning of an expert.
These 3 types of specialized information is used by TESCO company to manage organization
internally or externally. TESCO company contains 5 typical component of information system
that are hardware, software, database, network and procedures(Laudon And Laudon,. 2015).
These data used in an organization and the first four element are part of the general informational
technology in an organization while procedures are specific to get answer of a specific question.

Hardware: hardware is computer based information system.hardware's are processor, monitors,
keyboard and printers etc use in computer.
Software: software are programs which is use to organize, process and anlyze data.
Database: this is a typical information system which is work with data, organized into tables and
files.
Network: network is a source to connect different people or element to each other. Specially if
many different people is working but in different place for same organization or using same
information system then network is a way to connect eachother.
Procedures: procedures means action which is describe how data are proceed and analyzed to
get information for which information system is designed.
TESCO company consist 4 business information systems are TPS, ESS, MIS etc. TESCO
uses different levels of information which based on hierarchy.
Trasaction processing system: TPS are only available to the company's employees. Thses are
digital which use digital application such as software physical devices such as EPOS(electronic
point of sales) and PDCU(portable data capture unit). it takes input as simple business
transactions, such as order, payment and collect the data or provide it to MIS.
Management information system: MIS is used by TESCO. This system allows to TESCO to
order large batches of product or communicate with sellers and manufacturer. MIS convert data
which is provided by TPS into information about sales, profit, customers etc. provide it to
manager for decision making.
Executive support system : ESS is a credit to cash software. It is enable to evaluate the
company's financial state. This software is support heigher level, future oriented and decision
making structure and particular information relevant to executive.
Evaluation of information systems
The information system plays an vital role in a company to achieve competitive
advantage in the industry. The whole business is dependent on effective and efficient information
system. Tesco recognised the important role that information system across the organisation. It
helps in achieving commercial advantage and allowing efficient trade(Beck and et.al., 2017).
Through applying IT innovations Tesco also improve the shopping trip for customers and make
work easier for employees. In the absence of effective information system it can affect the
overall trade of the organisation.

Tesco has shared best systems across international operations to ensure consistency of
products delivery. Using advance information systems company is achieving various competitive
advantages. With competitive advantages Tesco have power to access more special resources
and company is able to use this resources more effectively. In which they can generate
productivity growth, higher revenue growth, long term profit and ultimately enhance stock
market valuations than their competitors(Richards and et.al., 2019). Tesco's managers uses
effective information system tools for assessing, managing and effectively running their
departments. Tesco uses this information system for balancing monthly statements which are
very helpful in decision making. The system helps in calculating the employees hours of work.
The system is also assist the manager to understand their customers by which they can research
in pricing policy. Tesco has also used 'Internet' as their information system(Bourgeois,. 2018).
This is the major advantage for Tesco and also healthful for customers because whenever they
want to access the companies websites they will easily approach it. Functional areas of a
business are main parts of a business and most of the time the business cannot run without them
e.g. Human Resources. Functional areas of Tesco Human resources department proceeds the
duty of managing staff, training, recruiting, promoting, demoting, monitoring staff etc. All this is
done using several information systems, . recruitment is done their website (www.tesco.com)
using online application forms.
In 1998 Tesco had installed and implemented the information system of G.O.L.D to
manage purchasing deals, sales of products, merchandise, stock optimisation etc. The
information system G.O.L.D helps the managers in functioning and managing of the warehouse
such as control the level of stock, location of stock and in the quality of products. The main
motive behind to establish information system G.O.L.D is to maintain the physical stock level of
the warehouse. With the benefits of information systems Tesco is achieving their goals, give
great competition to their competitors and generating large profit. Tesco also have launched the
customer delivery and online services that gives major competitive advantages to
Tesco(Carvalho and et.al., 2019). By marketing research Tesco analysis the customers issues and
move forward to electronic commerce and online business services and ultimately they can
enhance the profit of the company.

Challenges brought by the information systems to the company in the new business
environment.
With technological advancements and digital era coming into play every organization is striving
hard to keep with the pace of technology. TESCO is also adapting digital strategies to keep up
with other competitors in retail industry. With these advancements and introduction of new
technology, different challenges also arise(Cassidy, 2016). There are various challenges which
information system brings with it, considering new business environment these challenges are:
 Issue of Management process caters to change in process of management and developing new
management process according to new business environment. These issues are related to
functional operations and implying information system is most important with regards to
management process.
 Organizational environment issues is another challenge which an organization faces when it
starts its operations in new business environment, taking up particular information system
requires analysis of surrounding environment including economic condition of target customers,
geographical conditions, political environment, competitors etc. these are identified as major
factors and determining them is a major challenge.
 Leadership issues is major issue and success of any information system is defined by leader of
the organization, as it is already said that I am more afraid of an army of 100 sheep lead by a lion
than army of 100 lions lead by a sheep(Chang,. 2016.). If leadership does not cater to problems
regarding information system organization would fail subsequently.
 Technical systems issues are the issues which are mainly based on availability of latest
technically rich systems and proper expertise and skills to use these systems in new business
environment getting these both requires huge market costs. These advancements in information
system is slow and steady process in new business environment and requires patience.
 Personnel issues are categorized as those issues which are surrounding each and every
individual personally in the organization(Kavanagh and Johnson, eds., 2017). These issues could
be lower level of understanding of new information system, lower skills about information
system, resistance for deployment of new management system, and in new business environment

local employees are in the learning phase and expecting them to learn about latest information
system and using it optimally requires patience and belief in the employees.
All these issues impact planning about information system, procurement, and using information
system in the organization.
Discussion on the challenges in the new business environment
The challenges of using new IT tools.
Technology is considered as evolving and is constantly subject to change. Same is the case with
TESCO in case to fulfill customer needs and provide best services to its customers adapts new
technology on regular intervals but as technology advances in TESCO there is several problems
which rise due to adapting of new Information Technology tools(Wiesche and et.al., 2017).
These challenges may be internal and external both. There are customers, employees as well as
many stakeholders which are involved with business operations, they should be addressed well
before adapting new IT tools and butter smooth implementation of these plans should be
confirmed otherwise it may cause more harm than profits. Challenges faced by TESO for using
new IT tools are:
Selecting right technology: Challenge lies in selecting the optimum Information technology
tools for TESCO. First of all Investing into latest technology and if implementation fails is the
biggest challenge, there are many choices available and selecting wrong tool can be disastrous.
Competitors also play a major role and are deciding factors in selecting a technology(Legner and
et.al., 2017).
Employees resistance:Implementing new technology can face employees resistance. Employees
might find that older IT system was more convenient for them. They may resist change in
implementation of new IT system and it should be made sure that system is user friendly.
Researching optimal Information technology: It is a great challenge to search different
information technology then search for different options and identifying costs involved along
with options available and find reviews from different users using same technology.
Availability of Technical support:Sometimes there is a delay in technical support whenever
required, outsourcing information technology systems in TESCO requires technical support and
if it is not available in time it will create big issue.

Integrating Information systems:Integrating is another major challenge that TESCO face.
Sometimes new technologies does not integrate with old systems which create big issues.
Operations along with employee efficiency is effected.
Customer resistance:Sometimes customer can deny adapting to the latest technology used by
organization. It has happened with many organizations that customers are not satisfied with
changed systems and feels that older one was better. Although TESO has always been making
customer adapt to the latest IT systems used by it.
Marketing Perspective:It can be difficult to market use of new IT tools used and make market
advantage of it, making customers and employees aware about new IT system and train them to
use it could be problematic for the organization. Making them adapt to the situation and taking
market advantage from it requires efforts and implementation for predetermined result is a
challenge.
Tackling Hedgers:individuals who always refuse to positively accept innovation and
deployment of new technological systems. They are always against innovation and address their
objections. They create a fence and are ready to go towards either side and declare in advance
that they already know that they would fail in the beginning only. These managers affect
adapting new IT tools and are also major challenge for adapting new technology.
Difficulties in building successful information systems
TESCO has implementing Information System which mainly depends on Information
Technology subsequently, success of Information Systems is measured by effectiveness of
Information Technology of an organization. TESCO deployed Information Technology system
for providing attention to formulate plan, acquiring and implementing technology(Orna, 2017).
There are many difficulties which comes in way of building successful information systems.
These are:
Lack of Strategy:Most common issue which is faced in building successful Information system
is forming a solid strategy. Information systems developers know about many tools which are
available but using that knowledge is a challenge.
Dependency on Information system:Information system have a vital role in organizations
including TESCO, using technology for every kind of operations(Paul and et.al., 2018). Using
customer relationship software for tracking clients, accounting software for financial tracking.

Information system is made into role for making decision which is making management pull
reports on existing activities for reassuring use of facts instead of making guesses.
Keeping Up with Change:Information system technology is developing with time and with
technological advancements changes are fast. It is very essential for TESCO to keep up with
changes and development in information systems(Sun, Strang and Firmin,. 2017). It is difficult
to know and learn about latest Information system, keep looking at competitors and their
information systems and responding to these changes are vital for survival and remain in
competition.
Integrating Technology:There are may comprehensive solutions for selecting a particular
information system, there is a difficulty in integrating these multiple software in whole
Information system. Making sure that these software work intermediately is essential.
Humanistic factors:
 Lack of information by managers and different employees as they are clueless about the
information they want to extract from information system.
 Less understanding by employees about the design and features of the information
system.
 Lower amount information by the managers and employees about collaboration with the
designing team of information system.
 Reduced participation of managers and employees in information system.
 Low level of understanding of employees and managers regarding software used and
information systems.
 Low understanding of information by designers, developers and analysts with new
system and work environment.
 Resistance against change by the employees as well as managers, and lack of acceptance
of the new information system.
 Low level of accuracy in collected data.
Organizational factors:
 Lack of favorable conditions in the organization for participating along with
collaborating between managers, employees, users and system developers.
 Less consistency in system and complex existing system.
 Lack of existing information system and poor methods for analysis of system design.

 Lower evaluation by management about existing power of information system.
 Worse conditions of educating and training specialized forces for information system.
 Low level of advancements in human resource and management resulting in poor
knowledge about software and other specialized information system.
 Inadequate training and knowledge skills of users.
 Inadequate documents of the employees.
 Non suitable implementation of information system in the organization.
Environmental factors:
 Lack of quality in information system when compared to other developed countries.
 Lower skilled and non suitable consultants for developing and designing information
system and different software.
 Lack of proper procedures and methods for creating stages of information system.
 Lower evaluation skills in determining environmental conditions in information systems.
 Unfavorable environment for promotion and development of suitable information system.
 Lower level of training courses availability for information system.
 Low level of serious consideration along with inadequate investment in deploying
management information system.
CONCLUSION
In this study it was discussed that how Information system is used and applied in TESCO
and components of Information system to have better idea about the organization as well as
various difficulties and challenges of using an Information system in new business environment
along with different factors which defines success of particular Information system in different
environment.

REFERENCES
Books and Journals
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Beck, R and et.al., 2017. Blockchain technology in business and information systems research.
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Carvalho, J.V and et.al., 2019. A Maturity model for hospital information systems. Journal of
Business Research. 94. pp.388-399.
Cassidy, A., 2016. A practical guide to information systems strategic planning. Auerbach
Publications.
Chang, J.F., 2016. Business process management systems: strategy and implementation.
Auerbach Publications.
Kavanagh, M.J. and Johnson, R.D. eds., 2017. Human resource information systems: Basics,
applications, and future directions. Sage Publications.
Laudon, K.C. And Laudon, J.P., 2015. Management Information Systems: Managing the Digital
Firm Plus MyMISLab with Pearson eText--Access Card Package. Prentice Hall Press.
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information systems engineering community. Business & information systems
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Orna, E., 2017. Information strategy in practice. Routledge
Paul, P and et.al., 2018. Business Information Sciences emphasizing Digital Marketing as an
emerging field of Business & IT: A Study of Indian Private Universities. IRA
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Richards, G and et.al., 2019. Business intelligence effectiveness and corporate performance
management: an empirical analysis. Journal of Computer Information Systems. 59(2).
pp.188-196.
Sun, Z., Strang, K. and Firmin, S., 2017. Business analytics-based enterprise information
systems. Journal of Computer Information Systems. 57(2). pp.169-178.
Wiesche, M and et.al., 2017. Grounded theory methodology in information systems
research. MIS quarterly. 41(3). pp.685-701.

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