Tesco PLC Information Technology Report: Semester 1

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Introduction to Information Technology
TESCO PLC
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Abstract
The TescoPlc. business unit provides services and products for profit. Information Technology
explains any technology utilized to develop, disseminate and process information which is
crucial to performance of its business. This report will explain about the information technology
and its aspects within Tesco. Information Technology is essential for this market sector as a tool
of management through optimizing the information process to deliver services and good for
profit. Technological infrastructure affects the relationship, culture and efficiency of a business.
It also affects the security in trade advantages and confidential information. Tesco Plc. It is a
third largest British multinational grocery Retailer Company headquarters at England, United
Kingdom and this report will be describing the different aspects of Information Technology in
this organization.
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Table of Contents
Abstract............................................................................................................................................2
Introduction......................................................................................................................................4
Literature Review............................................................................................................................5
Analysis and Discussion..................................................................................................................6
LO1 - Utilizing Computing terminologies......................................................................................6
LO2 – Social and ethical issues associated with mentioned technologies......................................8
LO3 - Differentiate between the networks types.............................................................................9
LO4 – The growth in ICT and utilization of Internet and its effects on business.........................10
LO5 - Understanding the role of IT in Management.....................................................................12
LO6 – Understanding different phases of development systems..................................................13
Conclusion.....................................................................................................................................15
References......................................................................................................................................16
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Introduction
Tesco was founded in the year 1919 which is a UK-based multinational general merchandizing
and grocery retail chain organization. It is headquartered in London with £60billion revenue
according to research and is the third biggest retailer company across the globe. With almost
60000 employees and over 5000 stores Tesco is recently leading across the world in term of
grocery markets. Tesco specifically specialize in drinks and foods and therefore its diversity is in
different fields like consumer electronics, clothing, telecoms, software, Internet services, car and
health insurance, home and in telecommunication sectors. Therefore, coming about the
implementation of Information technology, Tesco has its operation in the Internet since year
1994 and it was the first retailer to offer strong home shopping service that formally launched in
the year 2000 (Wu, Straub and Liang, 2015). The company draws goods from the suppliers into
the regional centres of distribution for onward delivery and preparation to the stores. This
practice of logistics is extended by the company to accumulate collection from the suppliers in
order to reduce the costs and to improve the reliability of the market. In this report, it has been
entirely discussed about the implementation of Information Technology in the areas of
achievement and efficient trades that improves the shopping trip of consumers and makes life
easier for the employees.
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Literature Review
This report concludes the analyzation of the organization Tesco’s major types of systems of
information including the assessment details of system of Transaction, System of Enterprise,
supply chain management and Decision support systems. The organization’s support systems of
decision are basically based on efficient accumulation of information and data across the
Transactional process system. Tesco organization benefits from both the management
information system and transactional informational system. Therefore, utilizing the automated
systems, Tesco runs effectively through supporting the replenishment of stocks and determining
the figure of sales and bringing the revenues in billions of pounds.
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Analysis and Discussion
LO1 - Utilizing Computing terminologies
The largest global retailer Tesco has successfully driven the utilization of SAP and Oracle
polestar applications of business objects, because this is preferred retailer system of enterprises.
In order to implement these systems of information in Tesco enterprise, it defines that the
company makes best outcome by utilizing these feasible technologies. Tesco plc utilizes the
Oracle Retail Management system of Warehouse, Oracle platform of Marketing, Oracle Hub of
Accounting, Oracle Business Intelligence, and SAP Business Objects Polestar that provides the
organization with several solutions to handle common operations and processes both
internationally and locally. This can be illustrated by representing an example:
The Oracle creates personalized discount and incentive scheme to influence the loyal customers.
For the mentioned customers, they all required to work is to registering and receiving the Oracle
promotion with associated credit or debit card swipe that is situated at nation-wide. Therefore,
each time the Oracle customer make a purchase, the data of transaction electronically transferred
to the database of Oracle. Hence, this is the process through which the organization learns and
identifies about the pattern of shopping and along with the support of these incentives and
scheme of discounts; they understand the future customer purchasing.
Some technologies implemented are as follows:
 Management Information Systems:
This system of information is a mechanism to make sure that the available information that is
presented to managers in a form as needed. This is specifically designed to help in their work by
providing significant information regarding making of decision. The system of computing clearly
supports the organization to provide accurate data processing, upgrading information and data,
cost efficient information and well-presented documentation (Laudon and Laudon, 2015).
Therefore, the information is a concise, timely, complete and relevant that is widely relied on the
people’s capabilities involved in selection and processing. There are several stages of
Management Information system (MIS):
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 Identification of Problem
 System Requirements
 Design of the system
 Searching information
 Testing
 Documentation
The organization is utilizing the Linux system for the purpose of doing digital type marketing.
Therefore the switching to the platform of Oracle regarding marketing, business operation in
Tesco becomes closer to its consumers than ever. This is because for the services of digital type
marketing that provides supports intelligently focusing on customer purchasing habits.
 Oracle Accounting Hub:
This actually helps the organization Tesco, to do daily basis activities regarding accounting like
 Inventory control
 Details of customers
 Invoices
 Details of suppliers
 Details of products
 All purchase and sales ledgers
The financial accounting hub of oracle provides a structure of internal control to make sure of
compliance reviews and successful auditing (Kumar et al., 2016). The accounting structure of
Tesco is not bound to the accounting hub of Oracle, in fact the organization can rapidly
accommodate with the effective changes in the requirement that means the Oracle provides a
flexible finance and accounting system within the business unit.
 Transactional System of Processing
It is the type of processing system which is a utilized for retrieving, storing, modifying and
collecting the transactions in Tesco Company (Dai, 2016). For a system computer if considered
this transaction system of processing should have to be passing the ACID testing, this is:
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 Atomicity
 Consistency
 Isolating and
 Durability
Therefore every process of transaction are standardized to enhance the competence and Tesco
need a custom based transaction processing system that will works with the business process and
strategy within the Tesco corporate unit.
LO2 – Social and ethical issues associated with mentioned technologies
The ethics defined as the rules of correct and wrong which people utilize to create selection to
direct their behaviours. Ethics in the Management information system seeks to secure and
safeguard society, business operations and people through utilizing information system
responsibly. Several professions usually have the code of social and ethics that conduct
guidelines to all individuals acting on their free will that is accountable and responsible for their
actions (Mason, 2017). The code of ethics to management information system professional can
be searched on British Computer Society (BCS) website.
Some social problems are associated they are:
 Unauthorized access: Hacker have learnt how to hack circumvent the controls to et
access to organizations personal business accounts through invading information and data
from most of the devices like computer system or cell phones and others. If Tesco
organization does not have adequate resources in order to implement extra protection, it
can utilize these techniques which include asking for passcode for accessing the account
information, utilizing biometric recognition to analyse data and others. Loss of Data: If the data centre got fire or flooded, this situation will be very difficult to
recover data from the hardware because it can fully damage the data and will be
completely lost. For a standard security best practice for the Tesco organization is to keep
backups of entre data at remote areas. This data can be usually and periodically put into
those remote areas more than one.
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 Biometric recognition: By utilizing this technology, it makes very difficult for hackers to
access into any system abruptly. Nowadays, it is common that the authenticity issues are
increasing day by day in every organization. Tesco can use this technology to protect data
and accounts in their database so that hackers cannot gain any amounts through an
unauthorized access to the computing systems.
LO3 - Differentiate between the networks types
There are three types of network types; they are shown below in the table:
Differences Intranet Extranet Internet
Used for Private Private Public
User types
It provides information
of the Tesco
organization’s
employees (Barnieret
al., 2017)
It provides information
to the customers,
suppliers and the
partners of business
It provides the
information for the
public
Utilizations
Internal job opening,
information of
employees and
telephone directories
It access data, sends
email, check statuses
and place orders
It access all types of
information
Security
It has high security
measures
It basically utilizes the
Virtual Private Network
(VPN) technology to
communicate across the
internet for more
security
It has less security
measures
Table 1: Different Network Types
(Source:
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LO4 – The growth in ICT and utilization of Internet and its effects on business
Information and communication technology (ICT) is very essential for the Tesco organization.
Each and every aspect of Tesco’s business operation is monitored and controlled by ICT-
payroll, communication methods, distributions, stocks and so on. ICT is important for running a
modern retail store. It is utilized for auditing, planning, communicating and monitoring between
the operations of stores.
For example, when a product has a barcode and reads at checkout, the computing system not
only logs that into bill for pricing, but also logs into the financial transaction between the
customer and the Tesco organization. On the side of distribution, the mainframe computer
system directly sends the instructions to track operators at depots through radio links and thus its
represents the integration of departments through utilizing ICT.
ICT in communication of business
Tesco required communicating with set of organizations and individuals, including their
suppliers, customers and competitors. Good communication within Tesco Company is important
if the company is going to effectively operate and achieve the objectives. The company has many
communication channels both internal and external between the areas of functions. Tesco
depends on the ICT emphasis to communicate with the people.
Internal communication takes place within in Tesco organization like customers, suppliers, e-
commerce etc., and External communicationwhich takes place between Tesco organization and
outside world. Hence, both communications have transformed through quick ICT developments.
Internal utilization:
 Tesco utilize e-mail a lot in order to communicate with board members and functional
departments. Tesco carry out several meetings with various superstores by utilizing ICT
to hold communication with them.
 Tesco utilizes Electronic data interchange, which allow various users to exchange the
documents of business and information like invoice, order, directly through cell-phone
network and electronic media network
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 Tesco have the internal organizational database so that the staffs can access information
and records quickly through internal communication
 The growth of ICT in Tesco mainly due to the creation of internet sites as they utilize all
kinds of forms regarding information communication within and outside the Tesco
business.
External Utilization
 Tesco required communicating with several stakeholders, shareholders, officials of
government, community, suppliers and customers. Therefore these set of external
communications media are employed to communicate with these outsiders.
 Tesco utilizes the Electronic mail to communicate with various suppliers and it is the
most frequent way. This allow ordering products by utilizing the internet, therefore goods
arrived quickly.
 Tesco also communicate with the government to represent the company’s logistics and
PR materials
The Impact of ICT on the business of Tesco plc.
In Tesco, the ICT is has entirely change the way of communication both within and outside the
operation of businesses. The utilization of electronic mail in order to replace several communications which were
earlier carried out to provide the information to directors and shareholders through faxes,
phone calls and letters.
 The utilization of network database in order to replace the traditional system of Tesco of
storing and filling the information and data.
 The utilization of computing systems in order to replace the standard operations that
involves an interface between the customers and Tesco organization. Example, requesting
the items from stores, registering of orders, controlling stock levels and others.
 The utilization of internet site to develop communication links between Tesco Company
with the global markets.
 The utilization of digital techniques and tools for quick communications which involves a
set of sound, visual and other communication forms.
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LO5 - Understanding the role of IT in Management
The role of information Technology in Tesco’s business environment plays an essential role in
business management. This includes many management operations like:
 Management Information Systems: This system of computing clearly supports the
organization in providing accurate data processing, upgrading data, cost efficient
information and well-presented documentation.
 Transactional Processing system (TPS): It is the type of processing system which is a
utilized for retrieving, storing, modifying and collecting the transactions in Tesco
Company. Every process of transaction are standardized to enhance the competence and
Tesco need a custom based transaction processing system that will works with the
business process.
 Supply Chain Management system: Tesco develops a wide range of centralized process
to manage, join, convert, distribute and replenish with Oracle Retail in order to connect
these into the management systems of warehouse (Cole, Aitken and Stevenson, 2015)
The Oracle Retail Management of Warehouse provides Tesco a standardised pattern of
supply chain across international and national business and this are liable for sharp
changes in the centre of distribution along with potential and productivity.
 Consumer Relationship Management system: Tesco is utilizing this system to attract the
interactions with customer through telephone and email from the centre of contact and to
develop a knowledge of information based on goods like drinks, foods, clothing, finance
and electronic services.
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