Business Information Systems: Analysing Organisational Opportunities and Challenges Posed by Information Privacy

This report analyses the characteristics and significance of information privacy, organisational opportunities and challenges posed to financial service sector by information privacy, and application of value chain for analysing the process of creating and delivering value within business by information privacy.

Business information
system

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
Identification and evaluation of the characteristics and the significance of the information
privacy.........................................................................................................................................3
TASK 2............................................................................................................................................6
Analysation of the organisational opportunities and challenges that are posed to financial
service sector by information privacy.........................................................................................6
TASK 3............................................................................................................................................8
Application of the value chain for analysing the process of creating and delivering value
within business by information privacy .....................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The concept of business information systems helps in giving the information that is used
by an organisation in order to manage it in an effective as well as efficient manner by critically
using the technology and computer systems. Within this report, an example of a financial sector
services providing business is taken into consideration which is named as “The Innovative
Financial Services''. The business is based in London, United Kingdom and provides effective
and precise financial services to the different clients and the companies. This report includes
identification and an evaluation of the characteristics as well as the significance globally of
information privacy (Abualoush, et. al. 2018). Along with it, this report includes an analysation
of organisational opportunities and the challenges that are posed to financial service sector by
information privacy. Moreover, this report also includes application of value chain for analysing
how the value is created and delivered within the business by information privacy.
MAIN BODY
The role of business information system is to ease the process of decision-making and
simplify process of delivering necessary information and therefore helps in taking informed
decisions. Information privacy is concerned with the aspect of the information technology that
facilitates an organisation through dealing with the ability of its business for determining what
kind of data within a computer system can be shared with another organisation. Information
privacy is essential to the wider right to privacy and protecting the privacy is an effective key to
ensure safety and dignity of an individual or an organisation along with self-determination. The
main focus of information privacy is on anything that leaves a business trail in case whether or
not the respective trail is digital (Al-Emran, et. al. 2018). Within the sector of financial services,
the information privacy is stated to who is permitted to access to consumer information that is
provided to organisation with whom they have entered into a business relationship.
TASK 1
Identification and evaluation of the characteristics and the significance of the information
privacy
There are various characteristics of information privacy that helps in making the
information valuable and some of these characteristics are given as under:

 Confidentiality: This characteristic of the information privacy makes sure that an
information has access to only an authorised user. In context to financial service sector
the key purpose of confidentiality is to save the sensitive data of the customers from
reaching it to the wrong hands (Asprion, Schneider and Grimberg, 2018). This feature of
information privacy helps in maintaining the privacy of the people.
 Availability: As per this characteristic, the information or the data should be available to
an authorised personality when it is requested for. This characteristic of information
privacy in providing financial services ensures the guarantee of access to the accredited
person to information. The availability of the information will be ensured by keeping all
the hardware as well as software updated along with keeping back-up and taking
recovery measures in a proper way.
 Integrity: It is another characteristic of the information privacy that helps in maintaining
the accuracy or the correctness of the information at the time of transiting storing as well
as processing the data. In relation to the financial service sector, this feature of
information privacy gives the guarantee that the data or information of the customers is
trustworthy and is not tampered. Such attribute makes sure that an unauthorised
individual will be unable to change the data.
 Authentication: This feature of the information privacy is concerned with the
verification that whether the user, transactions and the information involved in the
process of providing financial service is genuine. Such characteristic makes sure that only
genuine or authorised people have access to information and the Login credentials can be
used in order to verify the authenticity of a user.
The aspect of information privacy is important within a business as it helps an
organisation like The Innovative Financial Services in saving the data of its customers
(Augenstein, Fleig and Maedche, 2018). The significance of the information privacy includes
the following points:
 Improves brand value with data privacy policies in workplace: In context to The
Innovative Financial Services, the organisation maintains its brand value by following the
right information privacy standards. This helps the company from protecting it through
breaching of data which can influence reputation of the organisation. In such way, the
information privacy is important within the organisation for improving the brand value.

 Protects the privacy of customers: It is another importance of Information privacy that
it protects the privacy of the customers. In context to The Innovative Financial Services,
the breaching of data results in stolen of the important information of the customers
which in turn impacts the owners of the information. Hence, the information privacy
within the respective organisation handles as well as protects the information that is
provided by the customers in the course of daily transactions.
 Supports the Code of Ethics: In relation to The Innovative Financial Services, the
company is following right ethical practices in order to stay in business through having a
code of ethics within the workplace (Beynon-Davies, 2019). The aspect of information
privacy is significant in supporting the code of ethics as it is essential to make sure that
all the information of the customers is handled in a responsible way and should be used
only for business. In order to meet such code of ethics, it is important to have appropriate
information privacy laws within the business.
 Gives competitive advantages: In order to gain competitive advantages within the
market, The Innovative Financial Services makes sure that the organisation has
incorporated appropriate information privacy regulations within the business. Customers
have information privacy concerns regarding the process in which their information gets
handled. The respective company is compliant with the regulation of information privacy
and stays ahead of its competitors who may not be taking information privacy so
seriously.
Evaluation of characteristics and significance of Information privacy
From the above discussion of the features of information privacy, it can be evaluated that
all the characteristics of the information privacy represents a fundamental objective of the data
security. These features facilitate The Innovative Financial Services in simplify the business
process of automation and it also enhance the credibility as well as trust among individuals (Bolt,
de Leoni and van der Aalst, 2018). It can also be evaluated from the explanation of different
features of information privacy that, it provides a better understanding of the information that is
collected and also improves the information management within the respective business. The
aspect of information privacy also helps the organisation in protecting the valuable information
of the clients as well as the customers. It also facilitates in staying ahead of the competition over
the competition in the market place and minimises the cost of the development within the

business. In context to The Innovative Financial Services, the concept of information privacy is
significant because it provide assistance to the managers of the organisation in meeting the
current standards through comparing them with the set standards. This helps the respective
company in its better as well as effective management of the business.
TASK 2
Analysation of the organisational opportunities and challenges that are posed to financial service
sector by information privacy
Organisational opportunities are those opportunities for an organisation that are
concerned with the positive external factors which could provide a competitive advantage to the
business (Chu, So and Chung, 2018). It is very important for an organisation in order to identify
its opportunities within the market place as it will help the company in enhancing the level of its
efficiency and productivity within the business. There are a large number of opportunities to The
Innovative Financial Services by information privacy and some of these opportunities are
described as below:
 Trust Building: It is a major opportunity provided by information privacy to The
Innovative Financial Services in order to build the trust among its customers and human
resources through keeping their financial records private. By building trust, the company
can drive involvement, enhances loyalty and has a direct influence on the bottom line of
the organisation. Hence, it is an opportunity for the respective company to build trust
among its clients and employees.
 Customer satisfaction and relationship: It is another opportunity given by information
privacy to The Innovative Financial Services to fully satisfy the clients and customers
through maintaining privacy of their information with the company. More satisfied
customers tend to express loyal behaviours that results in enhancement in the financial
results of the firm (Dornberger, 2018). This opportunity will help the company in
gaining competitive advantages over its competitors within the market place.
 Goodwill and reputation: Information Privacy provides opportunity to the respective
financial organisation in maintaining its goodwill and reputation. Through information
privacy, the data and information that is kept with the business cannot be breached and
will create a good value for the organisation. This will generate an opportunity for The

Innovative Financial Services to maintain effective goodwill and reputation within the
market place.
 Business growth and expansion: This is another opportunity offered to the respective
company by the information privacy to grow and expand the business. By keeping the
information private of the clients and customers, they would get more attract towards the
brand and this will develop customer loyalty with The Innovative Financial Services
(Endres, et. al. 2019). Such type of customer loyalty will create an opportunity for the
growth as well as expansion of the business.
 Digitalised business: When the respective company will use highly upgraded and
developed technologies within its business in order to maintain information privacy, then
it will help the organisation in turning it into a digitalised business. In such way, the
company can gain a competitive advantage through adopting the process of digitalisation
within the workplace.
Organisational challenges are referred to the difficulties that are faced by the human
resources of the organisation that prevent them from achieving their objectives as well as goals.
There are some challenges also that are faced by the financial services sectors by the information
privacy and these challenges are discussed as below:
 Data Breaching: Data breaches continue to be a concern within the financial sector. The
services within this respective sector are considered as a major target for the cybercrime
because of the sensitive nature of their data. In context to The Innovative Financial
Services, the increase in financial transactions and communication through online mode
has resulted in the data breaching within the company. Large amount of the customer
information handled by the respective organisation along with its financial assets, the
company is natural target for both the malicious internal actors as well as cybercriminals
(Hasan, et. al. 2019). Nowadays, the constant change in cyber environment, when
exploited activities become more sophisticated, more serious and more targeted, within
absence of an insight defence strategy, being breached is considered as a great issue.
 Rising customer expectations: A great shift from traditional business model to a real-
time online, customer-centered digital model has resulted in higher customer
expectations. In context to The Innovative Financial Services, clients and other new
aspects demand an exceptional digital experience that is delivered through different real-

time digital channels on the basis of 24*7. in addition to this, the respective organisation
faced financial penalties that are imposed by strict service-level agreements when the
organisation failed to meet such rising expectations.
 Non-compliance with privacy regulation: With enhancement in the number of regional,
global as well as local regulations of the information protection, the organisations such as
The Innovative Financial Services are failing to comply or having breached can lead to
not only within serious fiscal fines and losses but it can also damage the reputation of the
organisation and reduces the confidence of the customers (Kir and Erdogan, 2021) .
 Remediation Challenge: Most of the companies are facing the issue that their amount of
sensitive information or the data is not manageable. This is particularly true for the
companies with great application portfolios, non-standard data modelling, lax data
practices, systems holding technological debts from the modified business processes.
Contributing to such challenge is the expansion of the systems off premises to managed
providers as well as public cloud.
TASK 3
Application of the value chain for analysing the process of creating and delivering value within
business by information privacy
A value chain is considered as a business model that helps an organisation in explaining
all of the activities which a company employs in order to generate a product or a service. The
framework of value chan analysis is associated with the evaluation of every activities within the
value chain of a company for better understanding the areas that require improvement. In relation
to The Innovative Financial Services, the value chain analysis prompts the respective
organisation in considering how a single step subtracts or adds value from the final financial
service. It is the process of applying the model of value chain to the business and also a process
wherein the an organisation identifies its key main and support activities which add value to its
final service and then make an analysis of such activities in order to minimise the costs or
enhance differentiation (Liang and Liu, 2018). This helps in representing the intrinsic activities
that a company involves in at the time of converting the inputs into the outputs. There are two
kinds of activities that are involved in the application of the value chain analysis and these
activities are primary activities as well as supporting activities. Primary activities facilitates the

company in carrying the production and selling work to the market share. The primary activities
in relation to The Innovative Financial Services includes:
 Inbound logistics: This helps in making string relationships with the service providers as
their assistance is necessary to acquire, store and diverse the things. By not separating
inbound logistics, the respective organisation can face issues in improvement stages.
 Operations: Significance of operational activities increases when small elements of the
service appears and strength of The Innovative Financial Service set up for managing
unrefined financial services into the eventual result and deliver it keeping watch.
Analysis of operational activities is important to improve benefits, extend viability and
ensure genuine attainment of respective company (Raisinghani and Idemudia, 2019).
Enhanced proficiency can facilitate organisation with getting constant monetary turn of
transactions, enhance benefits and set an effective description behind great ground.
Existing operations act as weakness due to miscommunication and confusion affecting
business financial operations.
 Outbound logistics: Such activities consolidate actions which pass on things to clients
by experiencing different go between. Some of outbound activities include service
management, making calls to customers, cash outflows and many others that bring them
closer to their target. The Innovative Financial Services can watch at and overhaul
outbound activities to research great ground sources and attain its organisational
objectives. It should pay explicit importance to its outbound worth chain exercises when
its given services are transient and need quick movement to final user of service. In
present scenario, the existing customer relationship management is weak and it requires
to get improve.
 Marketing and sales: Marketing has a special importance in finance sector also. As
there is tough competition within the respective sector and there are a large number of
players who are providing financial services within the market. As such the process f
marketing becomes important for The Innovative Financial Services in order to avoid the
competitive stress too (Steininger, 2019). Capturing as well as retaining the market share
needs more concentration on the process of marketing. Furthermore, the aspect of
segmentation is necessary for the respective organisation as all the segments of the
customers cannot be targeted in the similar way. Sales is also considered as an essential

function within the value chain of the financial sector which is due to the significance of
sales for the financial service providers. The scenario of The Innovative Financial Service
is greatly competitive and apart from taking entry into new markets as well as capturing
new market share, it is significant that respective organisation retain its existing
customers.
 Service: Services offered by The Innovative Financial Services are also significant part
of value chain. From deposits to loans, such organisation offer different services.
However, in finance sector, instead of having a great service portfolio, this becomes
impertinent for this company to offer great services. This organisation offers a series of
services in which some of them are tangible while others are intangible.
 Transaction: It is another primary activity and technology has made such task easier
because of which a large number of transactions are carried out daily throughout the
world in both offline as well as online mode. From online payments to ATMs, the
transactions occurred in a great way. A wide variety of payment clearance systems along
with settlement systems are used by banks internationally. Some of them include ACH
networks, bankcard networks, ATMs and cheque clearing systems.
The supporting activities of The Innovative Financial Services include the following:
 Infrastructure: It includes the information kept by the respective organisation,
technologies used it, rules and standards that enable financial activities such as financial
intermediation (Turner, Weickgenannt and Copeland, 2020).
 Human resource management: The HRM within organisation is responsible for hiring,
training, leading and motivating the employees of respective company towards
attainment of the organisational objectives and goals. Allocating resources within
organisation also comes under the supporting activity of HRM.
 Procurement: The procurement is related with acquiring the data sources that may go
from gear, equipment, rough services, supplies, unrefined services and various aspects
indispensable for conveying the final service. As a result of its linkage with various
worth chain works out, The Innovative Financial Service should purposely consider
(weakness) its securing financial activities to overhaul the inbound, operational and
outbound worth chain. The company is able to maintain effective and strong relation

with its suppliers of service providers so do not face any issue related to acquisition of
financial service which act as strength for company.
CONCLUSION
From above explanation of the report, it has been concluded that the aspect of business
information systems can be executed in an effective manner in order to facilitate the
communication effectively between the workforce and the managers of the organisation. In this
report, various characteristics and the importance of information privacy has been identified and
evaluated that help the business in achieving its success and growth. Along with it, the
opportunities and the challenges that are associated with the financial service sector by
information privacy have also been analysed that facilitates the organisation in gaining the
competitive benefits over the rivalries in market. Furthermore, there has been an application of
the value chain for analysing the process in which the value has created and delivered within
business by the aspect of information privacy. This assists the company in achieving its
objectives and goals in an effective as well as efficient manner.

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