Impact of Information Technology on Business: ASDA Case Study

Introduction

Producers act as product sellers in the global economy, and consumers act as goods and services purchasers. These separate individuals are interdependent; without one, neither the organization’s operations nor customer satisfaction be attained. Consumers need producers to offer products that satisfy their needs to buy the products they need to sell. When consumers wish to buy their needs, they visit the marketplace where manufacturers sell their items. This had existed for many centuries, even before technology surfaced.

However, with the introduction of technology in business, this interaction between producers and customers has been made much easier. The development of IT not only improves people’s lives and their livelihoods but also helps to boost international trade. Items consumers had to spend more on and took much time to deliver now are experiencing significant shifts. Currently, one person can complete a task that would once need ten.

Online media services such as the Internet and social media are just one way that information technology (IT) influences how online commerce is carried out. On these sites and applications, consumers can choose the products they want. For these transactions to be successful, organizations need more technologies like phones and banks that allow payments from customers, producers in media, and shipping companies such as post offices (Ergasheva and Kruglov, 2020).

All these technologies play a part in and impact the development of companies. It makes business operations efficient, economical, and faster for producers and consumers. Therefore, this paper seeks to understand the impact of information technology on business organizations, with much focus on ASDA, a British Supermarket chain.

Literature Review

Types of Software in General

Whether small or big, any business can be extremely challenging to manage and run smoothly. The greatest business owners are aware that various effective software applications are available to enhance corporate operations and lower burden related daily tasks. These crucial tools, which range from bookkeeping to time-tracking software, can reduce the burden of business administration by making corporate procedures easily understandable and accessible (Golightly et al., 2022). Firms may accomplish more with fewer personnel, thanks to digital solutions.

Project Management Software

Project management software is one the software that is essential for businesses to offer and maintain their operations. The most significant project management tools can be priceless logistical assets for a company’s operations. This type of software gives users the essential ability to plan complex projects by breaking large projects down into tightly focused task groups while enabling a full overall picture of the project (Alt et al., 2020).

A well-organized, professional project management plan will assure clients of an organization’s professionalism and efficiency (Natsir, 2022). Also, it encourages improved client collaboration and comprehension. By tracking the use of time and resources on the project, project management software also aids with segmented billing and invoicing for a project.

Accounting Software

Another type of software is accounting software. According to Thottoli (2020), business organizations should keep accounting records safe and secure using the right accounting software. This software should be easy to set up and use for all employees. The necessary records are kept in one location via software that combines accounting, purchasing, and invoicing.

Additionally, since doing business is made simpler by the government’s push for the digitization of tax and other paperwork submissions, organizations should ensure that the accounting program they select must be able to produce filing reports in the specific format demanded by the government. This greatly simplifies the process of filing taxes on time, including GST.

Time Tracking Software

Time tracking software is another software that plays a significant role in smoothly running business operations. Time-tracking software enables users to engage in effective time management by thoroughly documenting work performed on various activities. The most valuable resource a business owner can possess is time. Businesses may measure their usage of this important resource more precisely by employing the correct time-tracking software. (Alt et al., 2020). By using this software, employees will be able to effectively manage time when performing different kind of tasks.

Communication Software

Another software is the communication software. Studies indicate that effective internal and external communication is essential to the success of any company organization, regardless of the industry it operates in. Businesses have thus discovered that communications software facilitates staff collaboration. They give companies a way to interact with their staff, clients, partners, and other organizations and people that are involved in their business activities (Alt et al., 2020). With the help of technology, workers can connect with anyone anywhere on the globe. As a result, this kind of business software aids companies in reaching a wider audience and connecting with companies in the same sector.

Tax Software

Tax software is also another software that plays a significant role in business organizations. A company can effectively manage the intricate procedures and demands of the tax system of its host country by employing tax software. It is crucial for business organizations always to remember that upholding their legal tax duties supports and protects the integrity of their operations (Alt et al., 2020). Business organizations utilize other software to make their operations efficient and faster, including website building, payment transactions, inventory management, customer relationship management, and many others.

Ethics and Social Issues of Using Technology in General

Personal Privacy

Personal privacy is the primary ethical concern. The ethical concerns surrounding IT include personal privacy as a key component. It enables users to access servers while utilizing their own operating system, hardware, and software tools through a network connecting users to servers. The network’s wide distribution makes it possible for a lot of data or information to be transferred, which increases information breaches and privacy violations risk against some individuals and organizations (Martin, Shilton and Smith, 2022). The protection of data integrity and privacy is a top priority for IT society and businesses.

Access Rights

Access rights are another ethical issue when it comes to using technology. Studies indicate that access rights has grown to be a significant issue in information technology due to technology’s rapid growth and development over the past years (Golightly et al., 2022). Additionally, the development of system for making payments and online business operations has made this issue more severe for numerous business organizations and governmental entities by the development of e-commerce and electronic payment systems on the internet (Martin, Shilton and Smith, 2022). Sadly, internet networks cannot be made safe against unauthorized access.

Harmful Actions

Another issue is harmful actions, which refer to the negative consequences or damage to the IT, such as loss of property, loss of valuable information, property destruction, and substantial undesirable effects. It is prohibited for anybody to use technology in a way that puts consumers, employees, bosses, or the general public in danger when they breach this code of ethics. These operations frequently involve the deliberate alteration or deletion of data and software, which results in a significant loss of resources. (Martin, Shilton, and Smith, 2022).

Liability

Liability is also another issue associated with the use of technology in general. Software developers provide customers with claims and guarantees pertaining to the nature and kind of the product, which may be restricted to an express warranty. Any claim they make about their impact could have the same legal weight as a written one (Martin, Shilton and Smith, 2022).

Insufficient Tech Oversight and Accountability

Another social and ethical issue is the lack of oversight on the technology used and acceptance of responsibility in case of some issues like disclosure of information. The majority of businesses use a hybrid stack, which combines owned and third-party technology. As a result, there is frequently some confusion regarding who is in charge of governance, the use of big data, cybersecurity issues, and the management of personally identifiable information (PII) (Martin, Shilton and Smith, 2022). Other ethical and social issues associated with the use of technology include piracy, copyright, trade secrets, patents, and many others.

Different Types of Networking Technologies in General

Personal Areas Network

Different types of networking technologies exist. The first type of networking technology is the personal areas network (PAN). It is the most straightforward networking technology that connects devices such as computers, printers, and phones within an individual range not exceeding 10 meters.

Local Areas Network

The other networking technology is the Local Areas Network (LAN), which tends to be more complex than PAN. LANs make it possible to share information and resources over short distances between groups of computers and low-voltage devices (in a room, a building or between different buildings in a close range). Business organizations primarily handle LANs (Syuntyurenko and Gilyarevskii, 2021).

Wireless Local Area Network

The third networking technology, Wireless Local Area Network (WLAN), operates like PAN and LAN but does not require physical cables to connect devices. Other networking technologies include Wide Area Networks (WAN), Metropolitan Area Networks (MAN), System Area Networks (SAN), and many others.

Digital Divide and Global Internet Access Projects

Digital Divide

The digital divide is the inequality in ICT and internet access. Reports indicate that the digital divide affects about 42% of men and 52% all over the globe. The digital divide was once believed to be a transient issue brought on by underdevelopment, but that notion has since changed as technology has become more widely used. Even though electronic devices with Internet access are widely marketed today, the gap still persists in their place.

The factors contributing to this can include the expensive cost of technological equipment, a lack of understanding of how to utilize it, or a lack of infrastructure enabling access to it (Sanders and Scanlon, 2021). The digital divide leads to a lack of communication and isolation, barriers to knowledge and studies, gender discrimination, and many others.

Global Internet Access Projects

Starlink

The two major projects underway to offer broadband internet services to every corner of the globe are Starlink and Amazon’s Project Kuiper. Both these two underway projects are compared in terms of advantages and disadvantages. The satellite internet service from Starlink is quick, dependable, and available from anywhere. This is due to the constellation of low-Earth-orbiting satellites and the Earth-based Starlink dishes continuously transmitting and receiving data.

Amazon’s Project Kuiper

On the other hand, the operational details of Amazon’s Project Kuiper’s satellite internet service have yet to be made public (Clarke, 2022). Also, while Amazon’s Project Kuiper is yet to be launched and all its details offered to the public, Starlink has significantly increased its availability all over the globe.

Software Development Life Cycle

First Step: Planning and Analysis

The first step of the software development cycle is the planning and analysis phase. This phase includes two categories: The planning stage, where one collects requirements from their client or stakeholders, and the requirement analysis stage, where one considers if it is feasible to create the product, income potential, the cost of production, the demands of the users, and many other factors.

Second Step: Design Phase

The next step is the design phase. In this stage, the basic structure of the software is developed from the initial concept and vision, and it consists of the platform to be utilized, templates, the programming language, and security measures of the application.

Third Step: Development Phase

The other step is the development phase, which includes turning the organization’s product specifications and requirements into a product.

Fourth Step: Testing Phase

Testing is the next step, and it involves getting the product’s quality assurance before getting it out the door (Ergasheva and Kruglov, 2020).

Fifth Step: Deployment and Maintenance Phase

Deployment and maintenance are the next steps, and they involve delivering the product to the intended user and correcting areas that may have issues.

Analysis and Discussion

Types of Software in Asda Stores Limited

StoreSpace

One software that ASDA utilizes is StoreSpace. With StoreSpace, retail planners can easily plan and optimize store category space. It offers business organizations a store planning environment. According to Montgomery (2018), the grocery store company ASDA has been utilizing StoreSpacesince 2010 to assist businesses to optimize their retail space by connecting planning data, space hierarchy, and AutoCAD drawings to an online reporting site.

ACTpro

Another software that ASDA utilizes is ACTpro 4000 two-door controllers (Anon, 2022). The ASDA sites use ACT’s software platform, ACTproEnterprise, which distinguishes between user categories like installer, security guard, or system administrator to account for unintentional system changes and minimize maintenance.

Ethics and Social Issues of Using Technology Specific to ASDA

As the third-largest supermarket in the UK, ASDA has faced its fair share of ethical issues, ranging from issues likegender discrimination to unfairly treating animals in its supply chain. Also, studies indicate that ASDA received the lowest scores from Ethical Consumers in categories such as careless marketing, tax avoidance, pollution, and climate change strategy.

With regard to social and ethical problems with information systems, the supermarket has, however, faced few to no problems. For instance, the most recognized case was in 2018 when the ASDA website had a bug that may have allowed hackers access to millions of consumer records and payment information. The vulnerabilities effectively make anyone logged into the ASDA website and simultaneously have another malware-infected page open susceptible to hackers.

Different Types of Networking Technologies in ASDA

ASDA utilizes different kinds of networking technologies: LAN, WAN, WLAN, CAN, and MAN. ASDA uses the Local Area Network (LAN) to connect the computers at all supermarket locations. It uses Wide Area Network (WAN) to link a few computers in the various supermarket locations to its Leeds, England headquarters. It also uses the Metropolitan Area Network (MAN) to track performance in many metropolitan areas. Lastly, it uses WLAN to enable its consumers to shop and compare the quality and prices of its products.

Impact of Internet Access to the World in ASDA

Global internet access enables ASDA to access a wider market. Thanks to the internet, businesses can now more rapidly and easily reach a bigger market. This has accelerated the success of new businesses in helping them attain their goals. According Reuters Staff (2018), in the first quarter of its fiscal year, ASDA reported an increase in online sales of 16%. The company said that in the 14 weeks leading up to April 12, like-for-like sales, excluding fuel and Tax, increased by 1.3% (Reuters Staff, 2018). If the organization can reach a broader market through the Internet, it can enjoy improved adverts, have workers work remotely, and experienced enhanced team collaboration.

Conclusions

In conclusion, information technology’s effect and role have indirectly influenced the success of business organizations. It has enabled organizations to utilize their resources to manage their time and costs effectively. The development of technology also has an impact on business, both positively and negatively.

On the one hand, it makes business operations more efficient, hence increasing production and income, but on the other hand, most of tasks that humans previously did can be replaced by technology. This poses significant threats to professionals in different areas because their positions are dependent on technological advancement. Overall, technology plays a more positive role in global business, and ASDA’s case can evidence this. Thanks to information technology, the organization has become significantly successful in the market.

References

Alt, R. et al. (2020) ‘Software-defined business: Implications for IT management,’ Business & Information Systems Engineering, 62, pp.609-621. Web.

Anon. (2022) ‘ACT IP access control systems installed at Asda stores and distribution centres across UK.’ Web.

Clarke, N. (2022) ‘Amazon’s project Kuiper vs Starlink: What we know.’ Web.

Ergasheva, S. and Kruglov, a. A. (2020) ‘Software development life cycle early phases and quality metrics: A systematic literature review,’ Journal of Physics: Conference Series, 1694(1). Web.

Golightly, L. et al. (2022) ‘Adoption of cloud computing as innovation in the organization,’ International Journal of Engineering Business Management, 14. Web.

Martin, K., Shilton, K. and Smith, J.E. (2022) ‘Business and the ethical implications of technology: Introduction to the symposium,’ In Business and the ethical implications of technology edited by Kirsten Martin, Katie Shilton and Jeffery Smith (pp. 1-11). Cham: Springer Nature Switzerland. Web.

Montgomery, C. (2018) ‘StoreView® improves Asda’s store design proces.’ Web.

Natsir, C. (2022) ‘The 5 most important types of software for business activities.’ Web.

Reuters Staff. (2018) ‘Asda’s sales rise for fourth straight quarter.’ Web.

Sanders, C.K. and Scanlon, E. (2021) ‘The digital divide is a human rights issue: Advancing social inclusion through social work advocacy,’ Journal of Human Rights and Social Work, 6, pp.130-143. Web.

Syuntyurenko, O.V. and Gilyarevskii, R.S. (2021) ‘Trends and risks of network technologies,’ Scientific and Technical Information Processing, 48, pp. 97-106. Web.

Thottoli, M.M. (2020) ‘Knowledge and use of accounting software: Evidence from Oman,’ Journal of Industry-University Collaboration, 3(1), pp. 2-14. Web.

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