Information Technology and Tesco PLC: An Analysis of Its Impact

This report provides a comprehensive analysis of the role of Information Technology (IT) within the retail industry, with a specific focus on Tesco PLC. It begins with an introduction to the increasing importance of IT in modern business, highlighting its role in data management, communication, and efficiency improvements. The report includes a literature review that explores the use of IT in retail, emphasizing its impact on market knowledge, data management, supply chain efficiency, and customer service. It also discusses various networking technologies like LAN, MAN, WAN, and PAN, suitable for businesses. The report then examines the ethical and social issues related to IT usage, such as privacy concerns and cybersecurity threats. The analysis section delves into Tesco's use of IT, including Management Information Systems (MIS) and Decision Support Systems, and how these systems support decision-making and operational efficiency. Different networking technologies used by Tesco, such as LAN and WAN, are also discussed. Finally, the report addresses ethical and social issues specific to Tesco's IT implementation, such as data security and customer privacy concerns. The conclusion summarizes the key findings, reinforcing the significance of IT in the retail sector and the need for ethical considerations.

Introduction to
Information
Technology

Abstract
Information technology has become an important part of businesses as IT help in making
the business overtrains more efficient as the information can be used by company efficiently in
improving its decision making so that profitable decisions can be made. It also help in
establishing effective communication by proving network to the computer devices so that sharing
of information can be easily done. In this report the importance of IT in retail industry is
discussed with focus on Tesco plc so that IT can be efficiently used and ethical issues related to
its use can be minimised.

Table of Contents
Abstract............................................................................................................................................2
Table of Contents.............................................................................................................................3
Introduction......................................................................................................................................4
Literature Review.............................................................................................................................4
Analysis and Discussion..................................................................................................................6
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

Introduction
Information technology is being increasingly used in businesses so that they can store,
process and exchange data or information in an efficient manner which can help in improving the
productivity of business by utilising information in an effective manner. IT is related with the use
of computer or networking devices so that automation of business processes can be done so that
business transactions can be properly regulated and customers can be efficiently satisfied thereby
increasing the revenue of company (Adjerid and et. Al., 2016). Thus the use of IT has increased
in businesses so that various benefits can be gained and high productivity and profitability of
business can be achieved. In this report Tesco plc is taken so that to discuss about the importance
of IT in businesses. Further the ethical and social issues related to using IT, various types of
networks that can be used etc. will also be discussed.
Literature Review
Role of IT in any retail business
As per the views of Emily, 2018, IT is being increasingly used in the retail industry so as
to operate various functions of the company like gaining market knowledge related to the needs
and wants of customers, managing and controlling data and information of a large customer base,
increasing the efficiency of services etc. In order to manage the complete retail store it is
important to use IT so that one system working across the stores can be used which can help in
managing stock and improving business processes. Use of radio frequency identification/
electronic product coding can also be done in retail stores so as to effectively manage the supply
chain so that the required goods can be made available in real time thereby increasing the cost
efficiency (Baysari and et. Al., 2016). IT can also be used in businesses so that customer service
can be improved which can help in enhancing customer satisfaction by dealing with their queries
in an efficient manner and also addressing their feedbacks so that high quality services can be
given to them. Point of sale (POS) systems which are the electronic systems can also be use in
retail stores so that the information regarding inventory and transaction data can be retained and
analysed on a continuous basis which help in improving inventory management. Thus use of IT
in retail industry can provide a large number of benefits so that the efficiency and management
of business can improve and better customer relations can be maintained which can help in
increasing company profitability.

Networking technology and its different types
According to the views of Bradley, 2020, two devices are said to be in network if the
process of one device is able to exchange information with the process of other device. Thus
through a network sharing of files, data or information can be done and they also allow
electronic communications through the way of cables, telephone lines, radio waves, satellites or
infrared beams. There are four kinds of networks that can be used in businesses depending on the
distance and the number of computer devices connected with it which are LAN, MAN, WAN,
PAN. Local area network (LAN) helps in connecting devices within 1km radius and is most
commonly used network in business as all the electronic systems of an office can be connected
by using this network (Brooks and Pomerantz, 2017). The systems in this network are connected
through twisted pair, coaxial pair etc. so that quick transfer of information can occur and it can
be personalized as per the needs of an organization. Personal area network (PAN) is a personal
network which helps in connecting devices in a very limited distance of few meters and can help
in connecting computer system, mobile phones, play station etc. with the help of wifi, Bluetooth
etc. Metropolitan area network (MAN) is a very wide network through which other LAN
networks can be connected in a large geographical area and is used by government agencies to
monitor various devices. Wide area network (WAN) helps in covering larger areas so that
devices of different countries can be connected through fiber optics, satellite etc. Internet is the
largest WAN which help in connecting various devices across the globe and make sharing and
transfer of information very easy and quick.
Ethics and Social Issues of using IT
As per the views of Smriti, 2020, with the increased convenience of doing
business through IT its use has increased in all the sectors of life so that high level of efficiency
and accuracy in the storage, transmission and interpretation of information can be achieved. It is
however important that the IT is used ethically and within the legal limits so that the interests of
the stakeholders of business can be protected and their rights does not get violated. There are
various ethical and social issues of using IT which can affect the privacy of customers and affect
the reputation of business (Cao and Ball, 2017). With the help of IT the companies can have their
own hardware, software and operating system which help them in keeping records of the
customers who visit their sites and use their servers which can help them in tracking the interests
of their customers. This allows the companies with capability to market the products and services

as per customer interests so that large number of customers can be influenced and high sales can
be achieved which intervenes the rights of customers to freely surf the internet. Also as the
payment methods have evolved customers are able to make e-payments and purchase their
products through e-commerce which increase the risk of unauthorised access to the customer
bank accounts. Further hacking of important information, documents, loss of ownership etc. can
also occur which increase the cyber crimes thereby affecting the operations of businesses.
Importance of Intranet and Internet in business
As per the views of Josh, 2020, internet is a global system that makes use of TCP/IP
protocol through which computer systems in all over the world can be liked which can help in
creating opportunities to business for networking, information retrieval, communication,
marketing of company products etc. Internet is used from individuals, to businesses and
governments so that various use of internet can help in enhancing the use of information which
can be used in the interest of people (Dong and et. Al., 2017). Internet is being used by
businesses so that they can research market, know about customer demands, sell their products
through e-commerce etc. which help in increasing the profitability of company. Intranet on the
other hand helps in creating a network for the computer systems of an organization so that it can
be privately used by the company for conducting its operations effectively. There is no central
administration on the internet whereas intranet is used in organization so that it can increase the
security and surveillance for the sharing of company data within the organization so that the
business efficiency can be improved. Intranet can be used in managing and organization of work
within organization so that employees can perform their work in an efficient manner. It can also
be used in increasing the security of company through the use of CCTV cameras so that
company premises can be made safe (Fridgen and et. Al., 2016).
Analysis and Discussion
Role of Information Technology in selected business
Tesco is a British multinational organisation which deals in groceries and general
merchandise and provides its customers with products and services which can help in enhancing
their satisfaction. Information technology plays an important role in managing the business
functions of the company across all the stores which are located in more than 11 countries across
the globe. With the help of IT Tesco manages its operations efficiently so that company
objectives can be achieved on time. Tesco use various information systems so that high

efficiency can be achieved in its operations. Management Information Systems (MIS) is an
information system which is used by Tesco which help it in making effective decisions through
coordination, control, analysis and interpretation of information so that highly efficient decisions
can be made which can help in maximising the productivity of company (Hai and Chong, 2017).
This system helps Tesco in storing a huge amount of data which make its record keeping system
highly efficient so that the operations of company can run smoothly and it can manage its supply
chain. Decision support system is also used by Tesco which is computerised programme which
help in supporting the decision making in the company. This system help the managers of
company in having a holistic view of the information which is generated from various
information systems involved in organisation such as office automation system, transaction
processing system etc. All this information can be collected so that effective decisions can be
made with the help of complete information.
Types of Networking Technologies that used in the selected business
The networking technology which is used by a business help in linking its computer
systems so that the transfer of information between the systems can take place in an authorised
manner so that the information gets transferred to the people who are under the business interest.
Use of an efficient network can also make the business processes highly efficient and help in
increasing the speed at which information is shared among computers. Tesco use LAN network
so that the computer systems of one store can be connected which can help in effective transfer
of information among the computer systems which can be used by employees in making their
work more effective (Lioukas, Reuer and Zollo, 2016). It also helps in efficient management of
the stores so that customers needs can be effectively fulfilled and supply chain can be efficiently
managed. LAN also helps Tesco in protecting its internal and confidential information from
getting copied or hacked thereby improving the surveillance in company. The international
branches of company are linked through WAN network so that inter branch information can be
transferred and monitoring of business operations can be centralised.
Ethics and social issues in selected business
Tesco make use of IT in automating the business processes so that the information and data
of company can be efficiently used and coordination among departments of company can be
established so that efficient working can take place. Through IT the company can provide the
facility of e-commerce to its customers so that their convenience can increase and high customer

satisfaction can be achieved. IT also helps Tesco in marketing its products and maintaining high
customer relations so that brand image of company can improve in the market (Maedche and
Krumeich, 2016). However the increased use of IT also increase ethical and social issues like
security and confidentiality of information, ability to use information for personal gains,
inefficiency of employees while working, copying of the information system by other
companies, hacking of the computer systems by hackers which can leak important information
etc. Thus IT has though increased the convenience of doing business it also possesses certain
challenges which must be efficiently dealt with. In retail business the information related to
credit card numbers get stored in the business systems which can lead to unethical use of
customer information. Online retailing and e-commerce has increased the risk of unauthorised
access to customer’s bank details. Also tracking the interests of customers through company
softwares can affect their privacy as the companies use this information to market their products
to target customers. Other businesses can copy the business process which can affect the
company’s sales and also the risk of the company information getting leaked also increases.
The importance of Intranet and Internet in the selected business
Both intranet and internet plays an important role in Tesco in providing the networking
facilities to the company which can help in the sharing of information and in effective utilisation
of data for maximisation of company profits. Tesco is a multinational retailer which makes use
of internet so that it can reach to its customers and market about its products and services so that
sales of company can be maximised (Price and Shanks, 2016). Internet is also used for market
research so that needs and wants of customers can be analysed so that they can be offered items
accordingly so that high customer value is created. Internet also helps the company in conducting
its business through e-commerce so that high convenience can be provided to its customers in
making their purchases from their home. Intranet on the other hand helps the company in linking
its computer systems so that the transfer of information can take place within the company. LAN
is the intranet which is used by Tesco for authentic and reliable sharing of information so that
business operations can be efficiently managed. It also help in establishing effective
communication in organisation through e-mails, video conferencing so that highly efficient
decisions can be made.
Different stage of system development life cycle

System development life cycle (SDLC) is a series of phases which help in planning,
creating, testing and deploying an information system so that the business expectations are
efficiently fulfilled. Through this cycle company specific information system can be developed
which can help in effectively using the information related to business in enhancing the profits of
company through effective decision making (Roberts, Campbell and Vijayasarathy, 2016). There
are seven stages involved in the SDLC which are: Planning: It is related with identifying the
problem and determining possible solutions by considering the resources, costs involved, time
needed etc. so that the scope of dealing with the problem can be identified. Systems analysis
and requirements: In this stage teams are formed and roles and responsibilities are given to
team members so that a system which can help in fulfilling business and customer needs can be
developed. Systems design: The necessary specifications, features and other components which
can help in satisfying the functional requirements of proposed system are detailed.
Development: At this stage the manufacturing or production of system takes place and is also
characterised by installation and change. Integration and testing: At this stage the system
developed is integrated and tested under quality assurance professional so that the ability of the
system in meeting the desired goals can be analysed. Implementation: At this stage the majority
of the code related to the program is written and the project is put into production so that
information can be stored in this system and old data can be transferred to the new system so that
business objectives can be met. Operations and maintenance: It is related with continuous
improvement of the system by reviewing the system so that necessary improvements can be
made which can help in making the system more effective (Singh and Teng, 2016).
Conclusion
From the above report it can be said that companies can use IT in boosting up their
performance in market and meet customer requirement sin an efficient manner. IT can help in
enhancing the effectiveness of business operations and help in increasing the efficiency of
business. Through SDLC stages the companies can develop systems which can help in making
the use of information more effective and as per the requirements of business.

References
Books and Journals
Adjerid, I., Acquisti, A., Telang, R., Padman, R. and Adler-Milstein, J., 2016. The impact of
privacy regulation and technology incentives: The case of health information
exchanges. Management Science, 62(4), pp.1042-1063.
Baysari, M.T., Lehnbom, E.C., Li, L., Hargreaves, A., Day, R.O. and Westbrook, J.I., 2016. The
effectiveness of information technology to improve antimicrobial prescribing in
hospitals: a systematic review and meta-analysis. International journal of medical
informatics, 92, pp.15-34.
Brooks, D.C. and Pomerantz, J., 2017. ECAR Study of Undergraduate Students and Information
Technology, 2017. EDUCAUSE.
Cao, Y. and Ball, M., 2017. A Hospital Nursing Adverse Events Reporting System Project: An
Approach Based on the Systems Development Life Cycle. Studies in health technology
and informatics, 245, pp.1351-1351.
Dong, L., Liang, H., Zhang, L., Liu, Z., Gao, Z. and Hu, M., 2017. Highlighting regional eco-
industrial development: Life cycle benefits of an urban industrial symbiosis and
implications in China. Ecological Modelling, 361, pp.164-176.
Fridgen, G., Häfner, L., König, C. and Sachs, T., 2016. Providing utility to utilities: the value of
information systems enabled flexibility in electricity consumption. Journal of the
Association for Information Systems, 17(8), p.1.
Hair, J., Hollingsworth, C.L., Randolph, A.B. and Chong, A.Y.L., 2017. An updated and
expanded assessment of PLS-SEM in information systems research. Industrial
Management & Data Systems.
Lioukas, C.S., Reuer, J.J. and Zollo, M., 2016. Effects of information technology capabilities on
strategic alliances: Implications for the resource‐based view. Journal of Management
Studies, 53(2), pp.161-183
Maedche, A., Morana, S., Schacht, S., Werth, D. and Krumeich, J., 2016. Advanced user
assistance systems. Business & Information Systems Engineering, 58(5), pp.367-370.
Price, R. and Shanks, G., 2016. A semiotic information quality framework: development and
comparative analysis. In Enacting Research Methods in Information Systems (pp. 219-
250). Palgrave Macmillan, Cham.
Roberts, N., Campbell, D.E. and Vijayasarathy, L.R., 2016. Using information systems to sense
opportunities for innovation: Integrating postadoptive use behaviors with the dynamic
managerial capability perspective. Journal of Management Information Systems, 33(1),
pp.45-69.
Singh, A. and Teng, J.T., 2016. Enhancing supply chain outcomes through Information
Technology and Trust. Computers in human behavior, 54, pp.290-300.
Online
Emily .2018. Role of IT in retail [Online] Available through:
<https://www.techfunnel.com/information-technology/role-of-technology-in-retail-
industry/ >
Bradley .2020. Different types of networking technology [Online] Available through:
<https://www.lifewire.com/lans-wans-and-other-area-networks-817376>

Smriti .2020. Ethical issues of using IT [Online] Available through:
<https://www.yourarticlelibrary.com/retailing/notes-on-the-concept-of-ethics-in-
retailing-explained/7576>
Josh .2020. Business use of internet and intranet [Online] Available through:
<https://smallbusiness.chron.com/business-uses-internet-intranets-extranets-
62042.html#:~:text=Intranets%20serve%20an%20organization's%20digital,up
%20workflows%20and%20reducing%20errors.>