MIS of Tesco.plc

Reg Number : EU/IS/2012/COM/79
Index Number: COM 1579
Management Information System,
MGT 2063.

Introduction Tesco Plc.
Tesco Plc.
About Tesco
Company Profile
Mission Statement Of Tesco
Vision Statement Of Tesco

INTRODUCTION TESCO
 ABOUT
• Tesco is a global grocery and general merchandise retailer
headquartered in Chesnutt, United Kingdom.
• It is the third-largest retailer in the world measured by revenues (after
Wal-Mart and Carrefour) and the second-largest measured by profits
(after Wal-Mart).
• It has stores in 14 countries across Asia, Europe and North America
and is the grocery market leader in the UK (where it has a market
share of around 30%),Malaysia, the Republic of Ireland and Thailand

• Originally specialising in food and drink, it has diversified into areas
such as clothing, electronics, financial services, telecoms, home,
healthcare, dental and pet insurance, retailing and renting DVDs, CDs,
music downloads, Internet services and software.
• Tesco also operates a grocery home-shopping service, as well as
providing consumer goods, telecommunications and financial services
online.

Mission Statement Of Tesco:
“Creating value for customers, to earn their lifetime loyalty.”
Vision Statement Of Tesco:
“Our vision is for Tesco to be most highly valued by the
customers we serve, the communities in which we operate, our
loyal and committed staff and our shareholders; to be a growth
company; a modern and innovative company and winning
locally, applying our skills globally.”

CHAPTER 01
INFORMATION
SYSTEM IN GLOBLE
TODAY

Information System Of Tesco In Global Today
About Information system of Tesco:
Introduction
General Purpose Vs. Specialized Information Systems
Typical Components Of Information Systems
Different Types
How Tesco use Information Systems to their advantage.

Information System Of Tesco In Global Today
About Information system of Tesco:
Introduction
Many organizations work with large amounts of data. Data are basic
values or facts and are organized in a database. Many people think of
data as synonymous with information; however, information actually
consists of data that has been organized to help answers questions and
to solve problems. An information system is defined as the software
that helps organize and analyse data. So, the purpose of an information
system is to turn raw data into useful information that can be used for
decision making in an organization.

General Purpose Vs. Specialized Information Systems
There are some general types of information systems. For example,
a database management system (DBMS) is a combination of software
and data that makes it possible to organize and analyse data. DBMS
software is typically not designed to work with a specific organization
or a specific type of analysis. Rather, it is a general-purpose information
system. Another example is an electronic spreadsheet. This is a tool for
basic data analysis based on formulas that define relationships among
the data. For example, you can use a spreadsheet to calculate averages
for a set of values or to plot the trend of a value over time.

Typical Components Of Information Systems
While information systems may differ in how they are used within an
organization, they typically contain the following components:
01. Hardware. Computer-based information systems use computer
hardware, such as processors, monitors, keyboard, and printers.
02. Software. These are the programs used to organize, process and
analyse data.
03. Databases. Information systems work with data, organized into
tables and files.

04. Network. Different elements need to be connected to each other,
especially if many different people in an organization use the same
information system.
05. Procedures. These describe how specific data are processed and
analysed in order to get the answers for which the information system
is designed.
The first four components are part of the general information
technology (IT) of an organization. The procedures are very specific to
the information needed to answer a specific question.

Different Types
The many different types of information system can be divided into
categories based on the where they are used in the hierarchy of an
organization. This is illustrated in the figure below.

How Tesco use Information Systems to their
advantage.
“Information systems have played a key role in helping Tesco deliver
strong profits.”
Tesco was found by Jack Cohen, he began to sell groceries from a stall
in the East End of London. On his first day profit was £1. Today, Tesco is
one of the world’s largest supermarket retailers in the world. In Tesco
the managers use essential Information systems tools for managing,
assessing and efficiently running their departments. This information
provides them with past, present and future material. Tesco use this
information system to find out monthly statements of expenses which
helps managers in making decisions.

The system is also used to find out how many hours the employees
have worked over a period of time. Managers use information Systems
to help them understand their customers more which in return assists
them in pricing analysis and loyalty schemes. Since its launch in 1997,
Tesco Club card has over 700,000 members in Ireland. Tesco customers
have received over €200m in vouchers.

For Tesco to easily handle sales of products, merchandise, buying
dealings, stock optimisation and price policy; they installed and
implemented the information system of G.O.L.D in 1998. The purpose
of G.O.L.D is to manage the physical stock flows of the warehouses. The
information system G.O.L.D is helping managers working in warehouse
to control the stock levels, the quality of goods, location of stock and
the functions of warehouse.
Also Tesco have used another Information systems such as the Internet
to their advantage. It is also beneficial for customers because it gives
them flexibility to access their website whenever they feel the
need. Tesco.com was formally launched in 2000 even though it has
operated on the Internet since 1994. In 2012 Tesco reported that their
Irish online grocery shopping grow strongly with sales up by 21% to
€57.1million.

Below is a video link of how Tesco have used their Innovations to create
amazing new information systems.
http://www.tescoplc.com/index.asp?pageid=187&mediaid=505&slide=5
To conclude this is the age of information system and is a key of
success. Tesco is achieving goals, competing with their competitor and
making profit through smart information system. Therefore information
system play a vital role in how Tesco day by day business while
achieving big goals.

 Why Need Information System For Tesco
Business Perspective On Information Systems Of Tesco:
• Information system is instrument for creating value for Tesco.
• Investment in information technology will result superior
returns:
Productivity increases.
Revenue increases.
Superior long-term strategic positioning.

 Dimensions Of Information System Of Tesco
There are three main dimensions of information system
of TESCO. those are;
Organizations Dimension
Technology Dimension
Management Dimension

 Contemporary Approaches to Information
Systems
• The Technical Approach;
emphasizes mathematically based, normative models to study
information systems, as well as the physical technology and formal
capabilities of these systems.
• The Behavioural Approach;
a growing part of the information systems field, does not ignore
technology, but tends to focus on non-technical solutions concentrating
instead on changes in attitudes, management and organizational policy,
and behavior.

CHAPTER 02
GLOBLE E-BUSINESS
AND
COLLABORATION

Functional Business Processes Of Tesco
• Customer Service
• Finance
• Research & Development
• ICT
• Administration
• Human Resources
• Marketing
• Distribution
• production
• Sales
• Finance

Tesco's international expansion strategy has responded to the need to
be sensitive to local expectations in other countries by entering into
joint ventures with local partners. Tesco operates in the following
markets: China, Czech Republic, Hungary, India, Japan, Malaysia,
Poland, Republic of Ireland, Slovakia, South Korea, Thailand, Turkey, UK,
and USA. The business is dependent on efficient Information
Technology (IT) systems. Any significant failure in the IT processes of
their retail operations (e.g. barcode scanning or supply chain logistics)
impacts ability to trade. Tesco recognise the essential role that IT plays
across the Group in allowing efficient trade and achievement of
commercial advantage through implementing IT innovations which
improve the shopping trip for customers and make life easier for
employees. The company has extensive controls in place to maintain
the integrity and efficiency of IT infrastructure and share world‐class
systems across International operations to ensure consistency of
delivery.

Information Technology Enhances Business
Processes By:
• Increasing efficiency of existing processes
• Automating steps that were manual
• Enabling entirely new processes
• Change flow of information
• Replace sequential steps with parallel steps
• Eliminate delays in decision making
• Support new business models

Types of business information system of Tesco
The many different types of information system can be divided into
categories based on the where they are used in the hierarchy of an
organization. This is illustrated in the figure below.

A non-exhaustive list may include: RFID systems , CCTV surveillance;
order-processing systems, scheduling systems, hand-held devices ,
Financials, HR software; communications technology to connect stores;
e-commerce and e-business systems; supply chain systems,
information systems (IS) used in Tesco to support their loyalty card, car
insurance policy quoting system, Tesco has used electronic data
interchange with its major suppliers, chip and PIN system, Tesco
Personal Finance (TPF) for loan application handling, food labelling
system , workforce scheduling system; computer systems are used in a
variety of ways in the modern, large supermarket, from stock control to
maintaining temperatures in fridges and freezers; computers are used
to control the stock and are connected to the checkouts, Located at
each checkout is an ELECTRONIC POINT OF SALE ( EPOS ) till.

This EPOS till comprises a keyboard, a digital display, a scanner which
reads bar codes, a set of scales, a printer, a credit / debit card reader
and a till drawer. Each till also has its own base to which all of the
above is attached. It is the base unit which is connected by cables to
the branch computer in the supermarket's system office. A branch
computer sends the details of every individual sale to the main
computer at the Head Office. Stores are also big users of email. The
company also uses computers for staff recruitment. Potential
applicants complete an application form over the Internet which is
vetted by Head Office. Other systems include Pay@Pump petrol
system; CRM etc.

Online Business Model Of Tesco

E Commerce - Tesco
Business 2 Business Model;
Is Refers to the full range of e-commerce that can occur between two
organizations. Among other activities B2B e-commerce including
purchasing and procurement, supplier management, inventory
management, channel management, sales activities, payment
management, and supports. Tesco is a pioneer in Grocery Shopping &
Delivery Service commerce. Now Tesco extends this functionality all the
way to organization's Enterprises Resource Planning system for true
B2B commerce.

Business 2 Consumers Model;
When conducting business over the Internet, there are several different
transactions or business models that exist within the world of E-
Business. One of the most common models in E-Commerce is the
Business-To-Consumer (B2C) model. In B2C transactions, online
transactions are made between businesses and individual consumers.
Businesses sell products and services through electronic channels
directly to the consumer.
B2C E-Commerce involves what is known as electronic retailing or e-
tailing. E-tailing involves online retail sales. E-tailing makes it easier for
a manufacturer to sell directly to a customer, cutting out the need for
an intermediary. With B2C transactions there is no need for retailers
and therefore, no need for a physical store from which to distribute
products.

Collaboration Vision And Framework Of Tesco
With Intra 2.0 under development, Tesco needed to prioritize and scale
its use of the new collaboration tools. IBSG identified four core
business areas that could benefit most from Web 2.0 capabilities: trade
planning, space range and display (SRD), innovation, and promotions.
The tesco team then ran a series of workshops with Tesco employees
from each of these areas to look for opportunities to generate business
value through the use of collaboration tools. The end goal was to
embed collaboration tools in specific business processes, without
reengineering the Tesco operating model, and to make the tools easy
for people to use.

The workshops showed that opportunities for using collaboration could
best be grouped under four processes: innovation, decision making,
knowledge sharing, and operational excellence. tesco built a framework
with workflow templates for each business area, incorporating the
appropriate collaborative tools and mapping them to the four
processes. In this collaboration framework, innovation is a self-
contained entity because it is both a core business area and one of the
predefined processes. Trade planning and SRD fit into the knowledge
sharing process, while promotions are linked to decision making and
operational excellence.
The aim in the innovation area, for example, is to provide a forum for
open discussion of ideas, leading to selection and development of the
strongest suggestions.

Using a customized version of Intra 2, Tesco employees will be able to
post, discuss, and track the progress of ideas for innovation. A steering
group will then use collaboration tools such as tesco TelePresence and
tesco WebEx to select and develop the ideas with the most potential.
The templates for knowledge sharing, decision making, and operational
excellence are similar to the innovation approach and incorporate the
same collaboration tools. Tesco decided to begin its deployment of
Intra 2.0 by rolling out the knowledge-sharing and innovation elements
of the collaboration framework because these elements were most
likely to deliver business benefits within a short timeframe.

Exploring Collaborative Options
A project team then developed three Web 2.0-type collaboration
tools—a discussion forum, blogs, and a wiki—using freeware, and set
up a pilot for teams in IT, IOD, and HSC. The objectives of the three-
month pilot were to see how many people would use the tools and
what value they could bring to the business. Discussion forums and
blogs emerged as the tools that people liked and wanted to use; during
the pilot, for example, 520 people took part in discussion forums on 78
topics.
On the basis of the outcomes of the survey and pilot, Tesco executives
approved the development of Intra 2.0, a new version of the company’s
intranet. Intra 2.0 is based on a Web 2.0 platform and incorporates a
wide range of functions—from discussion forums and blogs to a
directory, presence, and customization.

Challenges of Using Business Information
Systems for Tesco
Standardisation and integration (Tesco's global standardisation strategy
began five years ago) - paves way for global expansion; Tesco plans to
centralise IT applications across its stores worldwide. Tesco plans to
centralise its Oracle Financials software, used for invoicing, its
PeopleSoft HR software, and Terradata Management Information
Systems, used for measuring budgeting targets. Maintaining the
confidentiality, integrity and availability of systems and data Ensuring
systems are used ethically and responsibly Ensuring the systems
strategy is aligned with the corporate and other business strategies
Recruiting and maintaining the IT/IS team and systems Aligning systems
with processes Managing systems in a cost effective manner

CHAPTER 03
INFORMATION SYSTEMS,
ORGANISATIONS AND
STRATEGY

Tesco plc Organization
Tesco PLC is a Britishmultinational grocery and general merchandise
retailer headquartered in Welwyn Garden City, Hertfordshire, England,
United Kingdom.It is the third largest retailer in the world measured by
profits and second-largest retailer in the world measured by revenues.
It has stores in 12 countries across Asia andEurope and is the grocery
market leader in the UK (where it has a market share of around
28.4%), Ireland, Hungary,Malaysia, and Thailand.
Tesco was founded in 1919 byJack Cohen as a group of market stalls.
The Tesco name first appeared in 1924, after Cohen purchased a
shipment of tea from T. E. Stockwell and combined those initials with
the first two letters of his surname, and the first Tesco store opened in
1929 inBurnt Oak, Barnet.

Organisation's Framework of Tesco

Key Organizational Features Of Tesco

How Information Systems Impact
Organizations and Business Firms
From an economic point of view, information systems technology can
be seen as a factor of production that can be freely substituted for
capital and labour. As information systems technology automates the
production process, less capital and labour are required to produce a
specified output.
Transaction cost theory;
states that organizations grow in size because they can obtain certain
products or services internally at lower cost than by using external
firms in the marketplace. By lowering the cost of market participation
(transaction costs) information technology allows firms to obtain goods
and services more cheaply from outside sources than through internal
means. Information systems can thus help firms increase revenue while
shrinking in size.

Firms traditionally grew in size to reduce transaction costs. IT potentially
reduces the costs for a given size, shifting the transaction cost curve inward,
opening up the possibility of revenue growth without increasing size, or even
revenue growth accompanied by shrinking size.

Agency theory;
views the firm as a nexus of contracts among self- interested
individuals, who must be carefully supervised to ensure they pursue
the interests of the organization. Information technology can help
reduce agency costs, the costs of coordinating many different people
and activities, so that each manager can oversee a larger number of
employees.

The Internet And Tesco
Internet Operations Of Tesco;
01.Tesco operates a grocery home shopping service, as well as
providing consumer goods, telecommunications and financial
services online.
02.Tesco has operated on the internet since 1994 and was the
first retailer in the world to offer a robust home shopping
service in 1996.
03.Tesco offers an internet-based DVD rental service, which is
operated by LOVE-FiLM and a music download service.

U.K. Operations (stores);
• Tesco's UK stores are divided into six formats, differentiated by size and
the range of products sold.
Tesco Extra
Tesco Superstores
Tesco Metro
Tesco Express
One-stop
Tesco Homeplus

Using Information Systems To Achieve Their
Competitive Advantage
The central computer system will contain information on the
margin and relative profitability of every item.
Making decisions concerning which products to boost and
promote and which ones drop.
Speed up the warehouse efficiency and to reduce the costs
of distributing the products.
Used to minimize duplication. The fewer times that actual
deliveries and the support documentation need to be
checked, the speedier and cheaper in the system.

Support Activities
• The activities that the organization performs to assist the primary
activities to gain the competitive advantage.
Procurement - Supply Chain Management(EPOS, EDI, Pre-planning
with suppliers, Decision Support System, Streamlined Distribution)
Technology Development - Centralized Automated Information
Management System
Human resource management - Structured process for
recruitment and Selection
Infrastructure - Collaborative work systems(Stronger cash flow
and improved profit for all parties)

Porter’s Competitive Forces Model

Porter’s Competitive Forces Model For Tesco
Rivalry
Among
Competitors
(High)
Threat of
New
Entrants
(Medium)
Bargaining
Power
of Buyers
(Medium)
Threat of
Substitute
Products
(Low)
Bargaining
Power
Of Suppliers
(Low)

Porter’s Competitive Forces Model For Tesco
Threats Of New Entrants
• Competitive Rivalry is considered a high threat and are people like
Amazon and Asda including other supermarkets and non-food
retailers who are involved in the same concept. IF consumers see
little difference between the product and that of the competition
then they will tend to choose on price.

Bargaining Power of Suppliers
• There is little threat as often large supermarkets dictate the price
they pay to the supplier. If the supplier does not agree to Tesco’s
price then the supplier will be left with no retailer.
Threats of New Entrants
• Tesco, Asda, Sainsbury and other supermarket chains put up
considerable barriers to entry. Anyone starting up a new
supermarket chain has barriers imposed on them, implicitly or
explicitly, by the existing supermarkets.

Bargaining Power of Buyer
• Buyer power also acts to force prices down. If beans are too
expensive in Tesco, buyers will exercise their power and move to
Sainsbury. Tesco including other supermarkets have a disciplined
approach to prices setting. This approach stops them from
destroying each other in a profit war.
Threat of Substitute Products
• Tesco competition from other supermarkets which can provide
substitute goods drives the prices of both companies down;
therefore substitute is seen as a Low threat.

Porters Value Chain Model – Analysis With
Tesco

Porters Value Chain Model – Analysis With
Tesco
01.Inbound Logistics;
• Inbound logistics is an integral element of business operations for a
manufacturing firm, involving the processes of receiving, storing and
disseminating incoming goods or material for use.
EPOS
• Inspect the goods on shelves & bar code scanning using portable
data-capture machines used for checking shelf stock levels and send
the data to centralized system.
• Based on centralized system figures monitoring warehouse efficiency,
space and utilization.

EDI
• Receive the supplier delivery note and sending the promissory note
via EDI.
• Electronic payment and funds transferring.
• Delivery times planning through route linking.

02.Operations;
• Operations transform resource or data inputs into desired goods,
services, or results, and create and deliver value to the customers.
Suppliers have systematically joined Tesco’s network
(‘community’)
Provide knowledge of EDI for suppliers by seminars
EDI is not just for PO releasing and invoices, but to broadcast
forecast information.
Up-to-date product information's
Faster movement of information and shorter supply times
Handling large number of suppliers through the network
 Effective operation by efficient procurement and customer
services

03.Sales & Marketing;
• Attracting potential customers to enhance business or activity of
selling goods or services
Efficient Customer Response (ECR)
Likelihood of stock-outs and the consequent loss of sales is
minimized.
Sales & cash flow monitoring via system
Loyalty programs through IT discourage the customers from brand
switching
Based on sales patterns through system make sure product
availability with competitive prices
Based on system data statistics planning seasonal offers.

04.Services;
• All the activities required to keep the product / service working
effectively for the buyer after it is sold and delivered. It enhance the
product’s value.
Introduction of virtual super markets by using IT infrastructure is
another competitive advantage.
Having support desk to facilitate customer care and services.
Club card records a customer purchases and award a credit for
use with future purchases.

05.Outbound Logistics;
• Required to transfer the finished products to the customers via
warehousing, order fulfilment, transportation, and distribution
management.
 The company has developed four convenience store formats.
- Superstores
- Compact stores
- Metros
- Express stores
 EDI has developed in parallel with composite, multi temperature food
warehouses and trucks.
 EPOS extract updated information from centralized systems. e.g..
transmit orders via Tradanet, evaluate profitability.

• EPOS reduce the cost of all outbound operations e.g.. lower cost to
suppliers and company.
• EPOS has developed to predict demand patterns for individual stores.

CHAPTER 04
ELECTRONIC
COMMERCE: DIGITAL
MARKETS, DIGITAL
GOODS

Electronic Commerce And Tesco
Tesco is going global with e-commerce;
• The retailer discusses its recent project to sell online in more
countries. With 6,234 stores in 13 countries and annual sales of 72
billion pounds ($116 billion), U.K. retailer Tesco is well established in
the global marketplace. But until recently the supermarket chain
operator only sold to consumers on the web in its home market of
the U.K.
• Tesco, No. 3 in the Internet Retailer Top 400 Europe, took its first step
into selling goods electronically in 1984 with a service that enabled
registered members to buy a limited range of products via a television
interface, Sam Hill, lead solution architect at Tesco Plc., told attendees
at the e-Commerce Expo in London this week.

• That small service, which had just 450 users, has now grown into a
booming e-commerce business. Tesco's U.K. online sales totaled
around 2 billion pounds ($3.2 billion) for its fiscal year ended April 5,
2012. And, the web is only growing for Tesco. Its U.K. web sales rose
11% in the first six months of this year.
• Tesco has invested heavily in e-commerce, offering a mobile app and
site for the U.K. and a service in 70 stores across Britain that allows
customers to order online from a PC or mobile device and collect
their groceries in store. And now it’s set its web sales sights on
countries beyond the U.K. In September 2010, the retailer outlined an
aggressive plan to roll out web ordering and delivery in major cities in
the Czech Republic (Prague) in January 2012, several urban centers in
Poland in July and Slovakia (Bratislava) in October, with plans to
further expand into China, India, Malaysia, South Korea, Thailand,
Hungary, Republic of Ireland, Turkey and the United States in the near
future. So far it is on target with its plans.

• Rather than build a separate e-commerce platform for each country,
Tesco decided to build a template that could be used for all
international sites, Hill says. It built the platform in-house using a
team of 100 in the U.K. and India.
• For the new platform to work across borders, the designers had to
overcome many challenges, Hill says.
• For example, each region has different regulations for how it can store
and use consumer data, Hill says. In some countries, e-retailers are
required to encrypt all customer data. In others they have to disclose
to consumers details about how they will use and store data. Tesco
had to develop a platform that could accommodate the laws for each
region.

Key Concepts in E-commerce: Digital Markets and
Digital Goods In a Global Marketplace
•Digital markets reduce
•Information asymmetry
•Search costs
•Transaction costs
•Menu costs

•Digital markets enable
•Price discrimination
•Dynamic pricing
•Disintermediation

Types of E – Commerce of Tesco

Types of E – Commerce of Tesco
Business 2 Business Model;
Is Refers to the full range of e-commerce that can occur between two
organizations. Among other activities B2B e-commerce including
purchasing and procurement, supplier management, inventory
management, channel management, sales activities, payment
management, and supports. Tesco is a pioneer in Grocery Shopping &
Delivery Service commerce. Now Tesco extends this functionality all the
way to organization's Enterprises Resource Planning system for true
B2B commerce.

• Business 2 Government Model:
On the Internet, B2G is business-to-government (a variation of the
term B2B or business-to-business), the concept that businesses and
government agencies can use central Web sites to exchange
information and do business with each other more efficiently than
they usually can off the Web.
• Customer 2 Customer model:
Sometimes known as Consumer to Consumer, E-Commerce involves
electronically-facilitated transactions between individuals, often
through a third party.

• M – Commerce:
• Tesco, a multinational retailer of groceries and general merchandise,
has announced trials of a mobile payment service for customers via
the PayQwiq service.
• Trials are occurring in a small number of stores in London and
Edinburgh, and are currently only available to staff members. Tesco
claims that initial responses are positive, and hopes for the mobile
payments to continue bolstering its shopping experience for
customers.

The Mobile Digital Platform And Mobile E-
commerce of Tesco

M-commerce Services And Applications
Classification
One way to classify m-Commerce services and applications is based on
the functionality they provide to the mobile users. This kind of
classification results in two major classes: the directory and the
transaction oriented services and applications. The major
categorization between these two classes of services is that in the
former a mobile user performs only read requests to the directory,
whereas in the latter a user performs read and write requests to the
transaction server. It is necessary to note that an m-Commerce
application can be a combination of both classes.
 The Directory Class
 The Transaction Oriented Class

• The Directory Class:
• The directory-oriented class of m-Commerce services comprises
applications that provide information to mobile users. This
information can be location, content and user dependent, being
localized and personalized in ways appropriate to the specific
mobile user. For example, a mobile user, being away from home,
needs up-to-date information regarding his current location, and
local facilities that he can use. Note that directory-oriented m-
Commerce services can be offered via broadcast.

• The Transaction Oriented Class:
• The transaction-oriented class comprises various services and
applications with which the mobile user conducts transactions
with the service provider. The transactions contain read and write
operations on behalf of the mobile user. For example, a banking
service for mobile users falls into the transactionoriented class of
m-Commerce services.

CHAPTER 05
IT INFRASTRUCTURE
AND EMARGING
TECHNOLOGIES

IT Infrastructure
• The term IT infrastructure is defined in ITIL v3 as a combined set of
hardware, software, networks, facilities, etc. ( including all of the
information technology), in order to develop, test, deliver, monitor,
control or support IT services.

IT Infrastructure of Tesco
• Tesco will run a private cloud infrastructure from its internal
datacentre to host its website and retail related apps
• Tesco will adopt private cloud infrastructure to host its website and
retail related applications by mid-2013.The private cloud will be
hosted within its own internal datacentres which are “cloud-ready”
after the retailer’s virtualisation and datacentre consolidation projects
last year.

• Verizon today announced it is working with Tesco to migrate the retail
giant to a single global network infrastructure that will underpin its
ongoing application and infrastructure centralisation programme.
• Verizon is providing secure connectivity to link Tesco’s suppliers,
partners, customers and colleagues in 12 countries around the globe,
it revealed.
• The new network infrastructure also offers a solid foundation from
which Tesco can deliver key business applications consistently to all
stakeholders, the company added. This will enable Tesco to roll out
new technologies and services more quickly and effectively, while also
achieving significant cost efficiencies.
• - See more at: http://www.information-age.com/technology/data-
centre-and-it-infrastructure/123457598/verizon-transforms-tesco---s-
infrastructure--#sthash.z5MyIp4Y.dpuf

Infrastructure Components of Tesco

Computer Platform of Tesco
• A computer platform is a system that consists of a hardware device
and an operating system that an application, program or process runs
upon. An example of a computer platform is a desktop computer with
Microsoft Windows installed on it. A desktop is a hardware device
and Windows is an operating system.

Operating System Platforms of Tesco
• In computers, a platform is an underlying computer system on which
application programs can run. On personal computers, Windows 2000
and the Mac OS X are examples of two different platforms. On
enterprise servers or mainframes, IBM's S/390 is an example of a
platform.

Enterprise Software Applications

Infrastructure Investments of Tesco
• Tesco is investing $45m in its IT infrastructure in a bid to solve
problems more quickly and improve customer service.
• The system - which will give the retailer an easy, at-a-glance view
of its global IT infrastructure - will cut costs and make it easier to
manage its sprawling IT estate, the company said.
• The grocer is consolidating a number of different systems into one,
allowing the entire estate to be viewed as a whole.
• Previously, a number of different suppliers monitored separate
parts of the business but from now on one company, CA
Technologies, will manage and monitor Tesco’s networks,
transactions and suppliers across the company including its
website, banking and mobile businesses.

CHAPTER 06
FOUNDATION AND BUSINESS
INTELLIGENCE : DATABASE
AND INFORMATION
MANAGEMENT

Organizing Data In A Traditional File
Environment
• Computer systems organize data in a hierarchy that begins
with bits and bytes and progresses to more complex groupings of
data:
• Fields: Group of characters, words, or a complete number
• Records: Group of related fields, describes an entity (a person,
place or thing about which information must be kept - each
characteristic of an entity is an attribute
• File: Group of records of the same type
• Database: Group of related files

Database Management Systems of Tesco
• Large retailers, such as the largest – Tesco – are implementing RFID on
a grand scale while smaller retailers are struggling with the value
proposition, but are likely to be able to derive some momentum from
the enormous changes the Wal-Mart mandate has effected on the
product manufacturing industry. That mandate says that suppliers to
Wal-Mart must equip their pallets with RFID tags. The deadline keeps
moving, but it is now believed the deadline is sometime in 2007.
However, the initial charter of the mandate has been extended from
the top 100 suppliers to include all suppliers. Quite possibly, the top
100 suppliers have already complied.

Using Databases To Improve Business
Performance And Decision-making Of Tesco
• Tesco use their databases to:
• Keep track of basic transactions
• Provide information that will help the company run the business
more efficiently
• Help managers and employees make better decisions

• In Tesco company, special capabilities and tools are required for
analyzing vast quantities of data and for accessing data from multiple
systems, such as:
• Data warehouse: a database that stores current and historical data from
core operational transactional systems for use in management analysis,
but this data cannot be altered.
• Data mart: A subset of a data warehouse in which a summarized or
highly focused portion of the organization's data is placed in a separate
database for a specific population of users.
• Business intelligence (BI) tools: Data analysis tools used for
consolidating, analyzing, and accessing vast stores of data to help in
decision making, such as software for database query and reporting,
tools for multidimensional data analysis (online analytical processing),
and data mining.

Components Of A Data Warehouse Of Tesco
• The data warehouse extracts current and historical data from multiple
operational systems inside the organization. These data are combined
with data from external sources and reorganized into a central
database designed for management reporting and analysis. The
information directory provides users with information about the data
available in the warehouse.

Hierarchical And Network Data Model Of Tesco

CHAPTER 07
TELECOMMUNICATION,
THE INTERNET AND
WIRELESS TECHNOLOGY

Telecommunications And Networking In
Today's Business World
• There are two fundamentally different types of telecommunications
networks: telephone networks and computer networks, which are
slowly merging into a single digital network using shared Internet
technology and equipment.
• Both voice and data communication networks have also become
more powerful (faster), more portable (smaller and mobile), and less
expensive.
• Today more than 60 percent of U.S. Internet users have high-
speed broadband connections provided by telephone and cable TV
companies running at one million bits per second.

Components Of Simple Computer Network Of
Tesco

Corporate Network Infrastructure Of Tesco
• Tesco’s corporate network infrastructure is a collection of many
different networks from the public switched telephone network; to
the Internet; to corporate local-area networks linking workgroups,
departments, or office floors.
• Contemporary digital networks are based on three key technologies:
Client/server computing
Packet switching

Computer Network With Tesco
• Tesco will link its network across 12 countries over a single
infrastructure provided by Verizon.
• UK supermarket giant Tesco has announced a deal with Verizon to
migrate to a single network infrastructure.
• The solution will link all its operations across 12 countries, both for
internal corporate matters and partner/supplier communications.
• The partnership will also build towards further projects, such as
providing customer Wi-Fi in store and a global desktop, integrating
all its businesses onto a single platform.

How Tesco Communicate Together
TEAM5;
• We share a weekly five minute face to face communication for all
colleagues. It is used to communicate the most important messages
relevant to you and your role. It consists of three sections:
help you to do your job
help you to serve your customers even better
keep you informed of news and information happening in your
Distribution Centre

THE ONE
• We produce a monthly colleague publication for all our people in
Stores, Distribution Centres and Offices that is available for you to
take home. Each issue is packed with news, features, fun and
competitions. Our colleagues are the stars of our business and you
can send in your own news and stories.
OUR TESCO
• Our Tesco internet site connects Tesco colleagues and allows us to
share skills and experiences. You can read news about Tesco and view
helpful documents on www.ourtesco.com

STEERING WHEEL
• The Steering Wheel is the tool we use to help us measure our
performance and manage the business in a balanced way. It plays
an important role in communicating our strategy and our
performance to all of our colleagues.
• Customer– This relates to how well we are providing our
customers with what they need and expect.
• People– This relates to our colleagues. Measures include how
colleagues feel about working for Tesco.
• Finance– This relates to management of our costs and delivery of
an efficient operation and our stakeholder expectations.
• Operations– This relates to productivity and the standards of our
working environment.
• Community– This relates to what we do at a local level as a
neighbour and a member of a community and the wider role the
business plays in society

How Tesco Communicate Together

CHAPTER 08
ETHICAL AND SOCIAL
ISSUES IN INFORMATION
SYSTEM

Ethical and Social Issues Related to Systems Of
Tesco
• Ethics are the principles of right and wrong individuals, acting as free
moral agents, use to make choices to guide their behaviour.
• Information systems raise new ethical questions for both individuals
and societies because they create opportunities for intense social
change.
• Ethical, social, and political issues are closely linked. Introduction of
new technology has a ripple effect in the current equilibrium, creating
new ethical, social, and political issues that must be dealt with on
individual, social, and political levels.
• Both social and political institutions require time before developing
new behaviours, rules, and laws.

Moral Dimensions In An Information Society
• There are five main moral dimensions that tie together
ethical, social, and political issues in an information society.
• Information rights and obligations
• Property rights and obligations
• Accountability and control
• System quality System quality
• Quality of life

Impacts Of Key Technology Trends
Four key technology trends have heightened the ethical
stresses on existing social arrangements and laws.
• Computing power has doubled every 18 months allowing
growing numbers of organizations to use information systems in
their core business processes. This growing dependence on
critical systems increases vulnerability to system errors and
poor data quality.
• Advances in data storage techniques have enabled for the
multiplying databases on individuals maintained by private and
public organizations - making the violation of individual privacy
both cheap and effective.

• Advances in data analysis techniques enable companies and
government agencies use profiling to determine detailed
information about individual's habits and tastes and create
dossiers of detailed information.

CHAPTER 09
INFORMATION
SYSTEMS SUCCESS
AND FAILURE

Dimensions of IS Success of Tesco
Information quality
• Information quality refers to the quality of the information that the system
is able to store, deliver, or produce, and is one of the commonest
dimensions along which information systems are evaluated. Information
quality impacts both a user’s satisfaction with the system and the user’s
intentions to use the system, which, in turn, impact the extent to which the
system is able to yield benefits for the user and organization.
System quality
• As with information quality, the overall quality of a system is also one of
the most common dimensions along which information systems are
evaluated. System quality indirectly impacts the extent to which the system
is able to deliver benefits by means of mediational relationships through
the usage intentions and user satisfaction constructs

Service quality
• Along with information quality and system quality, information
systems are also commonly evaluated according to the quality of
service that they are able to deliver. Service quality directly impacts
usage intentions and user satisfaction with the system, which, in turn,
impact the net benefits produced by the system.
System use/usage intentions
• Intentions to use an information system and actual system use are
well-established constructs in the information systems literature. In
the IS success model system use and usage intentions are influenced
by information, system, and service quality. System use is posited to
influence a user’s satisfaction with the information system, which, in
turn, is posited to influence usage intentions. In conjunction with user
satisfaction, system use directly affects the net benefits that the
system is able to provide.

User satisfaction
• User , and by information, system, and service quality. Like actual
system use, user satisfaction directly influences the net benefits
provided by an information system. satisfactionrefers to the extent to
which a user is pleased or contented with the information system,
and is posited to be directly affected by system use.
Net system benefits
• The net benefit that an information system is able to deliver is an
important facet of the overall value of the system to its users or to the
underlying organization. In the IS success model, net system benefits
are affected by system use and by user satisfaction with the system.
In their own right, system benefits are posited to influence both user
satisfaction and a user’s intentions to use the system.

Measures Of Information System Success Of
Tesco
1. HIGH LEVELS OF USE
2. USER SATISFACTION
3. FAVORABLE ATTITUDES
4. ACHIEVED OBJECTIVES
5. FINANCIAL PAYOFF

Information System Failure
AN INFORMATION SYSTEM THAT:
• DOESN’T PERFORM AS EXPECTED
• ISN’T OPERATIONAL AT A SPECIFIED TIME
• CANNOT BE USED AS INTENDED

Problem Areas Of Information System Of Tesco

CHAPTER 10
SECURING INFORMATION
SYSTEM AND CURRENT
TRENDS IN MANAGEMENT
INFORMATION SYSTEM

IT Security and Data Protection - Tesco
• We take very seriously the issue of IT security and data protection. As
we accelerate our plans to deliver the most compelling multichannel
offer for customers, managing technology and data security risks
become even more important. In the Principal Risks section of our
Annual Report we describe the following examples of relevant key
controls and mitigating factors.

Technology Risk:
Any significant failure in the IT processes of our retail operations,
online and in stores, would impact our ability to trade
As the digital marketplace grows, a lack of investment in
technology, or investment in the wrong areas may constrain
multichannel growth and impact our competitiveness
Insufficient investment in, or ineffective implementation of,
controls over our online presence could increase the likelihood of
a successful cyber-attack

Whilst investment is made in new technologies, there is a risk that
investment is not made to maintain the controls over the existing
technology, which may impact systems availability and security,
including the security of personnel, supplier or customer data
As customers and colleagues become increasingly sensitive to
matters of data usage, storage and security, the inherent
reputational risks of the IT control environment have increased, in
conjunction with the financial and regulatory risks

Key Controls And Mitigating Factors
Our IT strategy is approved and reviewed by the Executive Committee
to ensure that investments in IT systems and innovations improve
business efficiency and customers’ shopping experience.
We continue to invest in IT to respond to the growing range of IT-
related threats and risks.
The Group Technology Committee monitors controls to maintain the
integrity and efficiency of our IT infrastructure and data.
The Information Security Committee meets regularly to review the
development and implementation of policies.

The reporting lines of our Group Information Security and IT Security
teams have been merged to allow for better integration and
efficiencies in addressing IT security risks.
Processes are in place to monitor and deal with significant IT security
incidents.
Improved Group Wide Area Network infrastructure and the
standardisation and centralisation of systems across international
operations will help to improve the availability and consistency of
technology.
Rigorous governance processes must be followed for new systems
implementations and ongoing change management of existing IT

• Code of Business Conduct
It is for everyone at Tesco to ensure that we protect our business,
our colleagues and our customers. Our Code of Business Conduct
explains our most important responsibilities and duties, including
using company IT and resources appropriately.
• Clubcard Charter
Clubcard is an important tool which helps us to personalise and
tailor our offer, as well as reward customer loyalty.

• Keeping customer accounts secure
We provide advice and tips for customers to protect themselves
and their devices, for all their online activities.
www.tesco.com/staysafeonline/
• Emails alerts
We notify customers if they change any personal or security
details with us. This is an important fraud prevention measure that
can alert customers to changes they haven’t made.
• Enhanced online security
We use the latest technology to provide customers with the best
online experience. Not only does this reduce the risk of fraud,
preventing fraudsters from using stolen security details to access
customer accounts online, but it also makes online access easier

Current Trends In Management Information System
Of Tesco
• Data Collection Automation
3% of the survey respondents said that market intelligence
systems should be able to automate data collection by 2020.
Increasingly, companies must implement systems to collect
information online and in real time, so as to proactively identify
and respond to emerging market opportunities and threats faster
than the competition. - See more at: http://www.information-
age.com/technology/information-management/123459665/3-
trends-will-impact-information-management-
systems#sthash.YpEtHnqZ.dpuf

• Information Analysis Automation
With the onslaught of big data and quantitative data, 91% of all
respondents said they need the implementation of automated
data analysis by 2020. In fact, 78% of the business managers
surveyed considered big data to have a large impact on market
intelligence activities. - See more at: http://www.information-

• Cross Function Integration
Almost two-thirds (64%) of all respondents expected information
collection and analysis programmes to be integrated with other
organisational functions in the future. This would certainly be a
positive move. - See more at: http://www.information-

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