Unit 4 Level 3 Ict

Explain the reasons for upgrading IT systems in an organisation
Keeping up with Competitors;
There is an increased amount of competition for global companies, this is because there is more company’s within the market to compete with. An example of this is the food retail markets that have many stores competing are the ‘squeezed middle’ such as Asda and Tesco. However Morrison’s have only recently introduced ecommerce, this was introduced later than the other supermarkets and before the change their sales and profits were suffering.

Potential for Outsourcing;
Outsourcing is when a company pays a third party to undertake a service which would normally be carried out by an employee of the business. A reason why an organisation would choose outsourcing would be to minimise costs.
Improving Customer Service;
Ensuring the customer is satisfied with the level of service provided by the organisation is a priority as they are responsible for most of your revenue. If in any way you can improve the customer service this could improve your revenue. To improve an organisations customer service the company could shorten the delivery time to the customer. This however could compromise the quality of the products being made which could reduce the satisfaction of the customer.
Productivity Gains;
Productivity gains can be made by using robots instead of humans. This is because robots can work 24/ hours a day 7/hours a week. The initial cost of robots is high but they should recover this cost quickly. The quality of the products that the robots make is sustainable and is normally greater than humans. Improving the productivity should reduce unit costs which therefore will increase the profitability of the organisation.

Productivity Gains;
Productivity gains can be done by making the business more capital intensive opposed to labour intensive. This will improve the efficiency of the business and will hopefully speed up the production. Although the...