Information Technology in Tesco: A Comprehensive Analysis

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Introduction to Information Technology
TESCO

ABSTRACT
Information technology is playing a very eminent role in the retail sector by facilitating
information sharing and providing a platform for data collection and utilizing that data. IT
department in companies like Tesco is observing the buying habits of consumers both online
and offline and analyzing the collected data to improve their offerings. Use of technology is also
attracting consequences like privacy issues, security issues, and data theft etc. but businesses
are trying their level best to deal with such issues. There are different types of networks
available like LAN, WAN and WLAN etc. along with various technological devices like tablets,
phones etc. to choose the most suitable combination for a business. Networks like intranet and
internet can bring many benefits with them. An IT system can also be developed by an
organization with the help of a seven-stage development cycle which will also help in installing,
implementing and maintaining the system.

Table of Contents
ABSTRACT...................................................................................................................................... 1
INTRODUCTION............................................................................................................................. 3
LITERATURE REVIEW......................................................................................................................4
ANALYSIS AND DISCUSSION...........................................................................................................6
IDENTIFY THE ROLE OF IT IN THE SUCCESS OF TESCO................................................................6
FIND ETHICAL AND SOCIAL ISSUES THAT PERTAIN TO RUNNING BUSINESSES..........................7
IDENTIFY AND DIFFERENTIATE BETWEEN DIFFERENT TYPES OF NETWORKING TECHNOLOGIES
................................................................................................................................................... 8
DISCUSS THE IMPORTANCE OF INTRANET AND INTERNET IN YOUR BUSINESS.........................9
LIST AND EXPLAIN THE DIFFERENT STAGE OF SYSTEM DEVELOPMENT LIFE CYCLE.................11
CONCLUSION............................................................................................................................... 13
REFERENCES.................................................................................................................................14

INTRODUCTION
Tesco is the UK's largest supermarket chain. It has around 7000 stores across the globe with
around 450,000 employees (TC, 2019). Tesco is known for providing goods at lowest costs
against all its competitors. It is present in many countries including Malaysia, India, Czech
Republic, Hungary etc. IT plays a key role in the success and of Tesco; it helps Tesco in the
smooth functioning of all its functions. This assignment will help in identifying the role of IT in
the success or Tesco along with explaining the ethical and social issues that pertain in running
businesses. It will also help to identify and differentiate different types of network
terminologies which will help to better understand the jargons used in Information Technology.
The assignment will also discuss the difference and importance of Intranet and Internet in
businesses. It will then explain the different stages of the systems development life cycle for a
better understanding of how business develop and use IT systems. Altogether the assignment
will help to understand the importance and usage of IT in business and how one can develop an
IT system for a successful business.

LITERATURE REVIEW
Role of IT in the Success of Business
Kim et al. (2010), compared Information Technology in the business with steam in the industrial
revolution, both made a huge change in the scenario along with changing how things work. It
had changed the ways people perceived information and used that information in driving the
industry (Tehseen and Ramayah, 2015).
Ethical and social issues associated with Technology
Ethical use and privacy of data are among the key concerns today. Mason (2017) observes two
forces that threaten the privacy of data. The First is growth in IT which offers it more
surveillance capacity, storage, computation and communication etc. and the second is the
increased value of such vulnerable information in the lives of people (Shrader-Frechette, 2012).
Different types of networking technologies
According to Bashan et al. (2012), Networks are divided based on their scope and scale. LAN
(Local Area Network), WAN (Wide Area Network) and WLAN (Wireless Local Area Network) are
the primary area networks. Selection of the right network based on the operations and
geographical spread is very necessary to ensure effective and efficient information (Turban et
al., 2011).
Importance of Intranet and the Internet in your business

According to Burrus (2010), Intranet is a network for the internal communication of the
company and the information shared on the intranet is not available for everyone, intranet also
brings confidentiality and good information sharing inside the organization to improve its
functioning (Brown, 2011).
Stages of System development life cycle
As per Ruparelia (2010), system development life cycle is a 7 step model which helps in
stepwise development of systems and saves the developers from getting overwhelmed in order
to produce high-quality systems. Any mistake in the steps of system development cycle might
lead the system away from its primary purpose or leads to wastage of efforts (Munassar and
Govardhan, 2010).

ANALYSIS AND DISCUSSION
IDENTIFY THE ROLE OF IT IN THE SUCCESS OF TESCO
Information Technology at Tesco played many roles which led to the success of Tesco.
Information Technology helped Tesco to develop tools which help in managing, assessing and
efficiently running various departments. It also avails information which helps in decision
making like availing monthly statements of expenses and incomes to make financial decisions.
Information technology also helps in understanding the buying behaviour of consumers which
helps in pricing analysis and developing loyalty schemes. Tesco had a Clubcard system in place
which has over 17 million users in the UK alone (TC, 2019). This system rewards the customers
for shopping and thus gains loyalty from the market. It also records and analyzes customers
buying behaviour for strategic decisions.
In 1998 Tesco installed an information system ‘G.O.L.D.’ the main purpose of G.O.L.D. is stock-
flow management in warehouses. It helps the managers in controlling the levels of stock,
Quality management, locating the stocks along with other functions of warehouses. Apart from
these, the system also helped in handling the products sale, merchandising, optimizing stocks,
optimizing pricing policy etc. In the year 2000, Tesco also launched its e-commerce website
‘Teso.com’ which used the internet for business advantages (TC, 2019). The website improved
accessibility for customers and led to more profit and success. Apart from this Tesco also have
data centre which helps in hosting private cloud infrastructure. Today Tesco is available in many
countries and accessible by even small devices, this is due to effective IT management and
innovative approaches of Tesco. IT department helps in smooth functioning and expansion of
Tesco and collects all the necessary information in that course.

FIND ETHICAL AND SOCIAL ISSUES THAT PERTAIN TO RUNNING BUSINESSES
Due to the rise in technology, many social and ethical issues came into existence. The primary
issue is security; security has become a very pressing issue since new cases of data theft and
hacking are coming to surface every day. Today hackers can hack any internet connected device
using an IP address; the data of devices are then used for many purposes and also sold in the
market. Many companies’ collects cookies to track the internet activity of users to decide which
products should be marketed before a customer, this data also get theft sometimes and leads
to the communication of discrete activities of people to others (UT, 2012). Bank details also get
theft many times which attracts big consequences and raise concerns about the security of the
whole banking system.
The second issue is Privacy, experienced users can turn on the webcam of any device they want
and use it to spy the activities of people. Many celebrities had been victims of this. Social
network privacy is also a big concern since the personal details which are shared with only
friends can be shared by them to others. This might put people in risky positions where many
people know about their personal life (Mason, 2017).
The third issue is Copyright Infringement; a lot of copyrighted content is shared and used freely
with the use of the internet. This content includes music, books etc. which incur huge losses for
the original creators and other investors (Shrader-Frechette, 2012). Communication breakdown
between people is also a drawback of technology, earlier people use to stay engaged in
business associates and family but with the rise of networking, the social connection between
people has been lost and it is leading to increasing cases of depression and loneliness. Social
media can also help in defaming a person which attracts huge mental losses to a person.
Technology can also be used to steal the identity of a person for illegal motives. The rising case
of cyberbullying and blackmailing are also the outcomes of sharing and theft of sensitive
information over the internet. The rise in innovative technology had also spread addiction in
people, like gaming addiction, web surfing addiction which leads to decreasing productivity and

physical illness in society. Technology is often used for terrorist activities and crimes, many
criminals use advanced technologies to save themselves from the blame (TS, 2013).
IDENTIFY AND DIFFERENTIATE BETWEEN DIFFERENT TYPES OF
NETWORKING TECHNOLOGIES
A network can be defined as a system of interconnected devices, there can be a handful of
devices in a room or millions of devices on the globe. Every device has to be connected to a
network if it wants to share or access any information with other devices. Networks are broadly
divided based on their area of coverage and scope. List and key characteristics of major
networks are given below:
1. PAN (Personal Area Network): It is the most basic network with one or two computers,
phones, printers etc. interconnected around a single person. These are mostly seen in
small offices and residencies (Bashan et al., 2012).
2. LAN (Local Area Network): It is most favoured by businesses nowadays, it involves
interconnection between a group of nodal devices spread in a small area, say a building
or two. It helps in faster knowledge sharing inside an organization and offers quick
communication between colleagues.
3. WAN (Wide Area Network): It is an enhanced version of LAN where computers and
nodal devices spread across a wide area are connected with each other with the help of
wireless devices like routers etc. Businesses which have operations of departments
away from each other use this type of network. This network is most useful in
businesses which have a diversified portfolio like Tesco to track all its activities (Turban
et al., 2011).
4. WLAN (Wireless Local Area Network): WLAN is just like LAN except for the fact that they
use wireless connections between devices. They are very much preferred where
operations involve movements. The best example of this system is the walkie-talkie
used by security guards in a premise to ensure safety at all points.

5. MAN (Metropolitan Area Network): Such network has a wide geographic coverage
generally across a city or town. This network is larger than LAN and smaller than WAN. It
is often used by large companies which have a town build for their employees or either
by businesses which have operations in a single town (Bashan et al., 2012).
6. EPN (Enterprise Private Network): Such networks are built by businesses which want
their various locations to share computer resources (Turban et al., 2011).
Apart from computers, many other technological devices are now used for communication and
business management. Such devices range from smart watches to smart cars and are used by
businesses based on their operations. Supervisors or department in charges usually has a tablet
to locate any good and report any problem in the product (BD, 2016).
DISCUSS THE IMPORTANCE OF INTRANET AND INTERNET IN YOUR BUSINESS
Intranets and internets have become a key tool in the success of businesses in this information
age. Intranet and internet serve as a medium of communication and information sharing in and
out of the business (Burrus 2010). There is only a minor difference between the meaning of the
word intranet and internet which divided their scope to different audiences. Meaning, benefit
and uses of both the network are as follows:
An intranet is the network of interconnection inside the organization for knowledge and
information sharing. No outsiders have access to this network it is entirely built for the
employees of the organization. Intranet offers various benefits to the business such as
 Assisting in internal communications: Intranets is used to store and communicate
certain information like staff news, memos, notices and announcements. It acts as a
channel of corporate communication and knowledge sharing (Brown, 2011).

 Provide Support: It can avail best practices to the new employees and can help to build a
virtual workshop where employees learn and receive training from each other (Burrus
2010).
 Improve the efficiency of organization: It can help in improving the efficiency of the
business in a number of ways like it provides a platform for publishing information,
document management, collaborative learning, performance management, database
management, safekeeping discrete information.
The Internet often referred to as extranet is the network for network sharing and
communication between business and outsiders. Outsiders will include suppliers, customers,
investors etc. Internet helps to connect with key people whose help is very necessary to
generate profit. The Internet provides many benefits to the business like; it helps in improving
the relationship between organization and outsiders with the help of collaborative working and
knowledge sharing (Brown, 2011).
The Internet also helps in communicating and collaborating with customers, clients and
stakeholders via secure network more effectively. It helps in reducing costs and support supply
chain management as online ordering demands customers access to tracking his shipment. It
also helps in simplifying the processes and removes the overlapping of work. Better customer
service is also a benefit of the internet as it provides historical information about the customers
to the service executive which helps in improving customer satisfaction. It offers a safe and
secure platform for all the discrete activities between business and its suppliers, customers etc.
which enhance business relationships.
LIST AND EXPLAIN THE DIFFERENT STAGE OF SYSTEM DEVELOPMENT LIFE
CYCLE
The system development cycle is a systematic process which helps in ensuring the effectiveness
of software by saving the developers from getting overwhelming and creating good quality
software. The system development cycle is divided into 7 phases or steps:

1. Planning: Planning is the key step before initiating any new process. Here planning helps
in deciding the appearances, features, usability, cost, necessary resources etc. Planning
helps in forecasting the whole process and development needed at every step to ensure
the achievement of the purpose of the development of the system (Ruparelia 2010).
2. System Analysis and Requirements: At this step analysis of the expected performance of
the system is done. It is very crucial since the parameters of the success of the project
are set at this step (Lai and Tsen, 2013).
3. Design: This step is where innovation in demanded the most. Here the blueprint of the
expected software is created which will contain many details regarding the application,
network, user interface, system interfaces and database etc.
4. Development: This is the step where the system will start coming to reality. Here the
development of software begins and the team actually starts building the information
system along with availing all the required hardware. After procuring the hardware,
coding of the software is done and ultimately the beta version is loaded on a testing
platform (Munassar and Govardhan, 2010).
5. Integration and Testing: In this step, a team of the analyst will test the quality of the
software and approve the implementation after ensuring that the system works without
any flaws.
6. Implementation: After testing and approval come the stage of implementing the
software into the system. Here the new design is implemented into the source code.
This step usually takes a long time as it involves a lot of coding.
7. Maintenance: This step ensures that there is enough support for the maintenance of the
system. Here necessary maintenance is provided based on the feedback of users. It is to
ensure that no loopholes are left due to the mismanagement of the software (Lai and
Tsen, 2013).