Thursday, 2 December 2010

Explain the impact of IT developments on Tesco

IMPACT ON PROCEDURES
By introducing new IT developments Tesco's procedures will take drastic changes.
One of the new IT developments is more intelligent AI (Artificial Intelligecne). This means the systems used by managers will be more efficient in decision making. This would mean that Tesco would not need to carry out board meetings in order to decide whether they should stop bringing in certain stock and start bringing in new ones. The manager can just check it up on the system and will be able to make a decision in minutes. However the new procedures would have to be explained to existing staff and in the cases of using advanced computer systems, would have to be trained to use it.

IMPACT ON STAFF
Staff would need training with the new systems introduced. This can have a variety of impacts on staff. For instance, if there are staff memebers that have spent nearly all their lives working for Tesco, then it's likely they won't be used to using computers. In this case Tesco may have to make many long time staff memebers redundant, this would be very costly for a large organisation like Tesco. The cost would rise from both finding new staff recruits as well as paying those who've been made redundant their compensation.

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