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P1 - Explain the reasons for upgrading IT systems in an organisation for Unit 4 - Impact of the use of IT on Business Systems
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George Mizen BTEC ICT Level 3 Unit 4P1 – EXPLAIN THE REASONS FOR
UPGRADING SYSTEMS IN AN ORGANISATION:
I am the IT manager of Full of Beans, a medium-sized company (50 staff) that makes
and sells bean bags of all shapes and sizes. I have identified one major problem
within the organisation – the IT systems and equipment that we use are outdated,
slow and unreliable. Sales have fallen behind as a result with times becoming dire.
The accounting clerk and other administrators are using bespoke (custom-made)
systems that work separately from the sales and buying departments. The
production department also uses its own system, most of which is paper-based.
Delays between each department occur due to no one knowing what the other
departments are doing. This negatively impacts the efficiency of the organisation.
I have explained to the owner of the company that we need to update our IT systems
or we risk falling behind our competition. The owner has agreed that these changes
are necessary and that I should suggest a proposal for a new system. I have started
by identifying the issues with our current systems and why they should be upgraded.
I will also explain how the company could run if upgraded compared to how it is now.
EXTERNAL PRESSURES:
These are outside factors that force an organisation to adapt and change. Business
owners must respond to the conditions created by these pressures in order to keep
their company relevant and profitable. Two examples of external pressures include:
Legislative Pressures = This refers to the legal requirements of a business
(I.e. following various laws).
• One example is a recent change which states that all workers must
now be given a statement of terms, detailing their job and their
responsibilities. Employers should ensure that all new workers receive
this statement either before or shortly after their employment has
commenced. Refusal to comply can result in small fines.
Financial Pressures = This refers to the money management of a business
(I.e. how much they’re making/losing).
• One example is a recent change which has increased the National
Living Wage. Employers should ensure that all of their workers are
being paid the appropriate amount according to their age. Refusal to
comply can result in hefty fines of up to £20,000 per underpaid worker.
If the company upgrades their systems, the various legislative and financial
pressures thrown upon them can be prepared for in advance because of the
improved communication between all departments. This will be due to all of the
departments using the same system instead of each one using their own.
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