P2 - Impact of IT developments on Tesco.

Unit 4
Assignment 1 - P2

Introduction: For P2 I will explain the impact of IT developments on Tesco.

Tesco has upgrade several of technologies, such as internet (emails), computers link with bigger data bases, scanners and readers, pick up list systems, CCTV’s, coding tags and a lot more.

Impact on staff and costs based on self check out tills

This technology is upgraded as a result of external pressure – example for upgrading system can be keeping up with competitors. I think that this is the main reason why Tesco upgrade their system because if they would not do anything about it to get more customers they would be left back after different competitors such as Sainsbury.  They are upgrading technology like this to attract customer to buy in their shop instead going to their competitors. This idea gives Tesco a lot of new customers because know one like to stand in queue, so by creating more self check out tills Tesco make buying stuff easier and a lot faster.

Security

In all self check out tills is an build in technology that when you try to buy stuff  for which one you need to be 21 years old the machine will call staff to check your ID.

Impact on staff

The impact of this in Tesco’s will be feels by staff, because self check out till will replace many cashier which are staff. Left cashers will be trained to support customers using self check out till.

Cost

Self check out tills brings Tesco a large profit.  By introducing self check out tills Tesco don’t have to pay as that much money to the staff, because there is only 1 or 2 peoples helping customers to use those machines instead 6 or 7 actually working behind normal till. Also self check out tills are a lot smaller from normal tills what make more space in shops, of that there can be more product for customers to buy. Tesco had only once pay large amount of money to design and create those machines, but after this machines give back really large profit.

Security, impact on staff and costs based on CCTV and security tags

Security

This technology allows Tesco to stop people to steal from the shop. Those two technologies are most common technology used by shops. CCTV helps a lot staff because they don’t have to walk around the shop behind suspected people, what would make stress on customers and they would not come back again.

Impact on staff

Of CCTV and security tags there is no need to have as that many security staff as before because all that can be monitored by 2-3 people. This security system replaces a lot of staff, and the left staff was trained of how to use this system.

Cost

Of this system Tesco make an large amount of money, because they has less staff and there is a lot less people stealing from their shop’s because of this system Of this system there is no need to has more than 4 security staff, because they don’t have to walk behind suspected customers, now there is one or two persons sitting at the front of Tesco door behind monitor viewing all cameras around the shop so they can easily look at everyone in the shop. Security tags also save a lot of money because in all product that are more expensive are inserted security tag, so if you try to steal it the alarm will go on when you try to go through the doors.

Procedures of working

The procedures of working in warehouse have been also impacted by IT. Tesco had start using pc in which one are collected important details about product such as where it is, how much does it cost and a lot more. Of this technology warehouse is more organise and it save’s a lot of time. Tesco don’t use any more hand written documents about each product because it take long. By using pc to organise their warehouses Tesco easily and quickly get details that they are looking for about each product. Of this technology there is less needed staff in warehouse because there is no need to have 20 people running around to find details about specific product, now there is about 2 people that check those details in pc.
Also home deliver had speed up because now Tesco can easily and quickly find out where is a needed product what make the shipping to the customer quicker.

  

Integration of legacy systems

Tesco has large database with information’s about their staff, products and customers so they need to make sure that when they improve their technology they will be able to still access them. So for example information’s for new product they store need to be update it to their database system about products to keep it accessible. Also when they introduce pc into their warehouses the copy all hand written details about their product into the pc database.

Legal requirements

            Information protection act is another thing why Tesco had to improve their IT system. An example of this can be Tesco website or club card, from where they get and store all needed details about their customers that had registered. From those resources Tesco know what stuff their customers buy most and how they can attract them to buy even more amount of that stuff by giving them for example more club cards points. Tesco has large database about their customers so they must to secure it against people that will like to steal it or to don’t lose it. It is really important for Tesco to secure those information’s because of law saying that they need to be secured. If Tesco will lose information’s or if someone steal it Tesco will be charge a large amount of money for not secure it properly.