Introduction to Information Technology: Tesco Case Study

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INTRODUCTION TO INFORMATION TECHNOLOGY
TESCO

Contents
Abstract.................................................................................................................................................0
Company Overview...............................................................................................................................0
LO1 Understand and use frequently used Computing terminologies.....................................................0
LO2 Understand ethical and social issues associated with Technology.................................................2
LO3 Difference between LAN, MAN and WAN..................................................................................3
LO4. Appreciate the growth in ITC and use of the Internet and its effects on business.........................6
LO5 Understand the role of Information Technology in management..................................................8
LO6 Understand the different stages of systems development............................................................10
Conclusion...........................................................................................................................................11
References.............................................................................................................................................0

Abstract
Computing technology has a great impact on Organizations. From improving the business
process to the effective management of its human capital, information technology has
significant importance to the business. The improvement in information technology has
resulted in the innovation of new tools and techniques. There are many benefits of
information technology for companies. Communication tools and IT together have improved
communication between employees and employers. It is now possible to manage a remote
team through IT. The report is prepared for understanding IT and its impact on business.
Company Overview
Tesco is the largest retail business in the UK. Tesco is the world’s third largest grocery
retailer. Currently, the Tesco have its retail business in European, USA and Asian countries.
The Tesco was started by Jack Cohen in the year 1919. The first Tesco store was launched in
East London. The Tesco has expanded its business by acquiring new stores and retail
services. Tesco main aim is to serve its customers. The Tesco want to provide the best
customer service. Tesco owns more than 2200 stores that also include the Tesco hypermarket
stores. The Tesco transition itself in banking and insurance domain.

LO1 Understand and use frequently used Computing terminologies
There are many IT technologies that a business can use to improve the performance and
productivity of an organization. For applying the Information Technology the managers
should be aware of frequently used common IT terms (Tan and Wang, 2010).
Computer: A computer is a digital machine that is used for performing logical and
arithmetic operations. The central processing unit (CPU) is responsible for performing these
tasks. A computer consists of a display unit also known as the monitor, a CPU for performing
calculations and input devices such as the keyboard is used for giving written instructions to
the CPU.
Internet: The internet is a collection of devices over a network. It is a global system of
interconnected devices that use communication protocols such as TCP/IP to communicate
over the network.
Hosting Server: A server is a high-performance computer system that is generally provided
by the hosting service provider. The organizations that don't have the expertise to manage a
server they can hire a remote server for the hosting companies. These companies give their
own servers with technical support (Dworkin,2011).
Data Centre: A datacentre is a huge facility that houses large computing servers. They
provide data-storage systems and high-performance computers systems. Most of the data
centres are owned by big companies like Google, Microsoft and Amazon.
Backend: The backend is that part of a website that cannot be seen. When we open a website
then the visible part of the website is called frontend. The backend part of a website contains
hosting servers, database and application programming.
VPN: A virtual private network is used for enhancing security. It provides necessary security
from hackers. Private networks have higher security risks. Using a VPN can help in the
reduction of these risks.
Web app: A web app is an application that behaves similar to a mobile application. It can
operate in a smartphone device or a tablet. Web apps are becoming very popular nowadays.
They are responsive and mobile friendly (Pop and Altar, 2014).

Domain Name: A domain name in simple terms in the website name for e.g. in
www.facebook.com, Facebook is the domain name. It is an address where the website can be
found. The domain name is used for finding a computer system over the internet. The main
purpose of the domain name is to provide a user-friendly name that can be easily
remembered. A computer system uses an IP address for identifying a specific computer
system on the network.
Open Source: The open source is the concept of giving the source code for modification,
alteration. People are free to use the open source code and modify for their own use. For e.g.
Linux is an open source operating system. Its code is available for modification.
Cloud: A cloud is referred to the process of accessing the computing resources, IT and
software and services over the network. The cloud technology provides a cluster of high-
performance computers, databases, software services and various online tools that can be
used by the organizations to run their business efficiently (JoSEP,2010).
Software as a service: The cloud technology provides software services over the internet.
These services are called Software as a service. It is also known as “software on demand”.
There are many companies that are offering management software through the cloud.
CMS: A content management system is used for managing the content of a website. A CMS
includes a web-based publishing feature. It allows the user to update the content without
using a web-based programming language like the HTML. Modern CMS systems include
marketing tools that can be used for promoting the website content.
ERP: enterprise resource planning software is used for managing various aspect of a
business. The ERP software can be used for managing accounting, inventory and human
resource functions of the organization. Companies should purchase the ERP software that is
relevant for their business. ERP software can improve the management and planning of the
organization
Version Control: Version control software is used for controlling the version of the
software. The programmers can use VC to manage their code, backtrack code if required. The
most popular VC software is Git and Github.
Email marketing: Email marketing is the process of promoting Tesco products

LO2 Understand ethical and social issues associated with Technology
The use of technology brings new issues about employee and employers relationship. If the
employee is sending the private emails from the Tesco computer then the employers should
not peek into the employee’s computer. The ethical and social issues associated with
information technology are closely linked (Mason, 2017). The major trends that have
highlighted the ethical stresses are;
1. The growth of computing power has doubled in every 18 months that have resulted in an
organization to use IT for managing their business. This dependent on IT for every business
process has resulted in an increase in vulnerability to poor systems errors and data quality.
2. Data storage: The technological advantages in data storage technique have resulted in
organizations using multiple databases for storing the individual private data. Many
organizations are violating the data protection rules and privacy of an individual.
3. Improvement in data analytics has enabled organizations to use sophisticated program
and algorithms to analyse data. Private companies and government agencies are using
advanced data analysis for profiling information about individual habits and interests (Noe et
al.,2017).
4. Social media: Every Tesco want to use the latest technology for communication. They are
utilizing social media for communication with the employees. During the recruitment and
selection process, the employers are checking social media accounts of candidates. It is not
ethical for employers to check social media accounts of potential candidates. Employees
should be selected on the basis of their skills and qualification, they should be denied
opportunity due to their social media profile.

LO3 Difference between LAN, MAN and WAN
Local Area Network: A LAN is the connection of computers in the network so that it can
share data, tools and programs. The LAN network speed is fast as the numbers of computers
on the LAN network are relatively small. A local area network is owned by companies,
hospitals, school etc. It can easily be designed and maintained. The main communication
channel is a twisted pair cable and coaxial cable. Error and noise are minimal in the LAN
network due to its small size. A LAN can be configured ring, bus and star topology
(Rohfleisch et al., 2013).
Figure 1: LAN Network
Source: 1 : techdifferences
Metropolitan Area Network: It covers a larger area as compared to the local area network.
The MAN is used for connecting the computer systems that are present in different cities. The
MAN is relatively bigger than a LAN, therefore, its maintenance and management is difficult.
Generally, the local ISP manages a MAN network. A MAN network may be owned by
multiple organizations.

Figure 2: MAN network
Source 2: techdifferences
Wide Area Network: A WAN is a network of computer systems that are spread over a large
geographical area. A WAN can be connection various LAN and WAN networks. A WAN
network may or may not be owned by a private organization. The communication between
two nodes is a long distance transmission. Due to this, there is a greater chance of noise and
error in a wide area network. A WAN network uses PSTN and satellite communication link.
Figure 3: MAN network
Source 3: techdifferences

Difference between LAN, MAN and WAN
 A LAN covers a smaller geographical area, MAN covers a relatively large area and
WAN covers the greatest area.
 A LAN network is used for connecting the computer systems in a local area such as
the schools, hospitals and buildings. A MAN network connects two cities or towns.
While the WAN network is used for connecting the larger areas such as the countries
or the continents.
 A LAN network uses WI-FI, ethernet cables for transmission of data. A MAN
network uses modem and cables for transmission of information and data. WAN
network uses optical fibres, microwaves and satellite for communication.
 Due to a smaller size, the LAN network transmits data at a faster rate. MAN and
WAN are relatively slower than the LAN network.
 Since a LAN network is smaller and consists of less number of nodes, it is easier to
manage as compared to other types of networks.
 Data transfer bandwidth is higher in the LAN network.
 The LAN networks have the least errors and noise.
Difference between intranet and internet
An intranet is a private network that cannot be accessed from outside the organization. While
the internet can be accessed by any individual as it is open to all. An intranet network may
require authenticated login as the organizations privately own intranet network (Neill and
Richard, 2012).
Comparison Factor Internet Intranet
Definition It connects different
networks together
It is a smaller part of the
internet that is owned by
private companies
Accessibility Internet is not owned by any
organization. It is open and
can be accessed by anyone.
The Internet can be owned by
any private firm.
Safety Internet is less secure as It is a secure network

compared to intranet
Number of Users A large number of users Limited users
Type of Network Public network Private network

LO4. Appreciate the growth in ITC and use of the Internet and its effects on business
Application of information and communication technology and the internet
Businesses should understand the importance of technology and its use in business. Managers
can use technology to increase the productivity and performance of employees. It can also be
used for better management of the human capital resource. Nowadays there is a large number
of software services that can be utilized by the HR managers to manage the HR functions and
policies of the Tesco (Perron et al., 2010). The major applications of information and
communication and the internet for the business are presented below;
Planning: It is the process of determining the steps required for completing a particular task.
The managers should analyze the Tesco situation and prepare a detailed plan for
implementing the technology. The managers should decide how to use technology and gain a
competitive advantage over their competitors. Implementing the information and
communication technology can be costly therefore the companies should do proper planning
before the implementation of any type of technology. The Tesco should do advance planning
to get back the investment they have done in the information and communication tools (Neill
and Richard, 2012).
Improve customer service: The major goal of any organization is to serve its customers in a
better way. The organization should understand the importance of its customers. Customer’s
satisfaction is vital for any organization. The companies need to understand their customers
need and demand. The Tesco can focus on launching products and services according to its
customer demand. Information and technology can help the companies in so many ways,
companies can use the latest communication tools and social media platforms for interacting
with the customers. They can also use these tools for promoting its products and services to a
larger audience. They can use technology such as analytics tools to analyze the customer's
sentiments about the Tesco products. Technology such as cookies and online surveys can be
used for getting reviews. Every Tesco should have its online presence, they can promote their
products and services on the Tesco website. Online payments gateway can be used for
providing online transaction facility to the customers. Providing multiple payment methods
can help customers in buying the Tesco products and services more easily. Electronics mail
services can be used for communicating with customers. Even the products can be promoted
in email.

Increase in production: As compared with human activities, technology is efficient and fast.
Technology can be used for automating the whole production process. Automation helps in
reducing the need for human capital and production time and cost. It also helps the Tesco in
serving the customers on time. The major advantage of automation to the Tesco will be that
the Tesco products will be able to reach the end users on time. Implementing technology such
as sensors, production line, data analysis tools can be used to analyze the efficiency of the
Tesco's production process.
Human resource management: In this competitive business environment the companies
cannot operate without taking the help of experienced and skilled workers. Tesco will have to
hire experienced employees. The hiring manager can use the internet to hiring the best talent
for the Tesco. It can use online websites and apps to promote the vacant position at the
organization. Many portals provide the facility for posting online videos. Interested
candidates can use this technology to present themselves in a better way. A video resume will
be more effective than regular paper-based resumes. The human resource managers can our
technology such as HR management software to make the employees. They can also assign a
task to employees. Even they can access the performance level of employees by using
performance management software and tools.
Improvement in business communication: Communication is the most important driver of
business. Communication helps the organization in the flow of information within the Tesco.
Information and technology can help in the flow of information between the employees,
managers and investors. The managers can use communication tools such as electronic mail,
mobile phone and social networks.
Promote innovation at the organization: Technology can act as motivation for innovation
in business. The internet can be used for researching research papers and theories. The
Internet can provide important information on new tools and techniques. The Internet also
helps in analyzing the competition. Adopting new emerging tools and technology can help
the Tesco in gaining important competitive advantage (Melville, 2010).