Impact of Information Technology on Businesses

This report explores the role of information technology in businesses, including its impact on customer satisfaction, global reach, and potential for failure. It also examines ethical and social issues, different types of networking technologies, and the importance of intranet and internet in business. Additionally, it discusses the stages of the system development life cycle.

CFPBUS003 -
Introduction to
Information
Technology

Abstract
Information technology is crucial concept which is to be understood in proper manner so
that information and data is being used with appropriate considerations. In business sector,
competition level has increased due to use of IT at larger scale. This report gives a brief information
about how IT is impacting upon businesses & their working structure. Further, it depicts changing
needs of businesses which gives rise to information as well as technology.

Table of Contents
Abstract ...............................................................................................................................................2
INTRODUCTION ...............................................................................................................................4
LITERATURE REVIEW.....................................................................................................................4
Identification of role of IT within organisation...............................................................................4
Examine ethical and social issues associated with running businesses...........................................5
Identify and differentiate between different types of networking technologies. ............................6
Analyse importance of Intranet and internet in business.................................................................7
Explain the different stages of system development life cycle........................................................8
CONCLUSION..................................................................................................................................10
REFERENCES...................................................................................................................................11
Books & Journal:...........................................................................................................................11

INTRODUCTION
The business is changing with period of time and it is important to be aware about these
changes so that competitive advantage is achieved in appropriate manner. Information Technology
refers to use of devices, computers to store retrieve or manipulate data or credentials. IT is a broader
and wider concept which is to be understood in proper manner (Han, 2017).Main aim of this report
is to understand the importance of IT in business. RSA Insurance Group plc which is British
national general insurance firm. Firm has major operations in United Kingdom and provides its
services as well as products with more than 140 countries. This report comprises of literature
review, role of IT in success of failure of business, ethical & social issues, identification of different
network technologies, importance of social media in business and software development life cycle.
LITERATURE REVIEW
Identification of role of IT within organisation
According to the views of (Boddy, 2017) it is evaluated that firm can carry out various tasks in
planned manner. Business can conduct research, marketing by which decision can be taken in
planned manner. Effective decision helps firm in their success operations. The role of IT in success
of company is evaluated below as:
 Real Time Customer Satisfaction: When the clients are satisfied or their issues are
resolved on time with the help of the technology then satisfaction level of clients
automatically grows up. This id valuable factor as it will help firm in success of the
business.
 Global Reach: With the presence of information technology firm can develop plans to
enhance their working which will not be limited to a particular location. When the products
will be reached globally then there will be increase in the profitability ratios this will result
in business growth.
Role of Information Technology in Failure of a Business:
As the technology is upgrading it will result in business growth but it can sometime result in
failure of the business. The reasons are evaluated below as:
 Improper Utilization: Technology should always be utilized in planned manner but if it is not
used effectively then it will result in failure of business. The utilization of technology in proper
manner is very much important for business growth and development (Hanes, 2017).
 Technology Enhancement: This is an important factor for analysing the upgraded technology
for surviving at the market area. It is vital aspect as it changes frequently. If the firm is not
utilizing the upgraded technology, then it will have very less chances for growth of firm.

 Complexity: When the technology aspect is difficult to understand then it will not be
productive in their working thus facing obstacles in their working. If this continues with a
company, then firm will not examine growth and this will result in failure of business.
Examine ethical and social issues associated with running businesses
In business, it is essential to focus on issues that impact on business so that it is easier to
make decisions in effective manner. Running business is not easy task and which requires
appropriate type of knowledge and information. In context of RSA Group, HR department and legal
department of company make assure that issues are properly identified.
Ethical issues
These are those issues which occur when there is discussions about topic or activity is being
executed with society moral principles. It is difficult to deal with such challenges as many legal
formalities has to be focused. There are several types of ethical issues which are encountered by
RSA Group plc & are discussed as follows-
 Action against the public interest- Customers are viewed as important asset of firm as
without them it is not possible to carry out marketing activities. It is also crucial to be aware
about interest and information of public or customers and kept them safe in proper manner.
It is too analysed that with proper use of backup data by RSA Group results in reduction of
risk of loss of information by third party or internally. In this advanced technological world,
with use of tools as well as technologies, it is becoming important to focus on these so that
positive relationship is established (Husam, 2018).
 Breach of privacy- It is also another ethical issue which is commonly faced as because
with higher advanced technological tools, it is easy to access in unauthorized way & use
information. In corporate world, ethical hackers are hired by companied to deal with such
issues. In viewpoint of chosen entity, they make assure that data as well as information is
being kept in secure manner. As in insurance sector, once information is accessed, it is easy
for unauthorised user to steal money of customer 9Ichsan, 2019).
Social issues-
It is a type of issue that arises and impacts upon people within society. It is crucial for
business to focus on these so that goodwill of brand is established. In relation of chosen entity, their
main aim is to help society and community & increase standard living of people. There are various
types of issues which are faced by selected company & are mentioned as follows-
 Hacking- It is most common social issue which is faced by both individual & firm. This is
because hacking refers to accessing to information in unauthorized way. To overcome with
this social issue, selected firm need to hire skilled & technical people within their

organisation so that high end protection is given. Furthermore, it is too analysed that
providing protection to information results in reducing of uncertain risks.
Therefore, from above discussed matter it has been examined that it is crucial to be aware
about these both ethical as well as social issues which assist in making decisions. Also, effective
strategies are to be implemented to deal with these kind of issues.
Analyse comparison of different types of networking technologies.
Networking technologies are being defined as technology which are used for sharing of
information. With help of networking technology it is easy to access to data & information in well
organised manner. In relevance of RSA Group, they uses several types of Networking technologies
that are mentioned as follows-
Local Area Network- It refers to type of network in which it comprises of collection of
devices that are being put together within one physical place (Kim, 2018). It is used for connecting
of more than one peripheral devices such as printers, etc. It is effective of accessing to information
within cost effective way. It is easy way of communicating and sharing credentials within time
period.
Wide area network- It is also known as WAN, which is type of network in which sharing
of information is being carried out within large geographic area. For example- RSA Group uses
WAN as they are located at global scale & have a wide range of network connection across the
globe.
Metropolitan area network- It is defined as kind of network which exist within an
metropolitan network. It is larger than CAN- campus area network but small than WAN. There are
different types of MAN network such as RS-232, ATM, OC-3 etc.
COMPARISON
BASIS LAN WAN MAN
Meaning It refers to establishing
connection or network
between a single place
or location (Lashkari,
2019).
It is defined as carrying
out telecommunication
larger than
geographical area.
It refers to establishing
a connection within a
metropolitan area.
Speed
The speed of this
network is between
100 Mbps to 1000
Mbps.
In this speed ranges
from 28kbt/s to high
speed with 100Gbit/s.
The speed of this
network is between 5-
10 Mbps.

Components
In this, components are
workstations, server,
NIC (Network
Interface Card), cabling
and connectors etc.
Elements which are
used in network are
cable modem,
asynchronous, transfer
mode, dial up internet
etc.
It comprises of
elements such as work
group bridges, ethernet.
importance of Intranet and internet in business.
In individual life, internet is important as it helps in accessing of new information and data
at larger scale. Internet & intranet are two important to things which are to be focused as they are
used within every aspect of business.
Internet is defined as connections which is carried out across the world. Through use of
internet, it is easy to it is easy to share information at larger scale. In relevance of chosen firm, it is
easier for them to access to large amount of data. In reference of RSA Group, they uses internet on
basis of which they are able to expand
Intranet refers to type of network in which information is being shared with combining of
tools, systems, & other services. It is used by most of the enterprises with aim of gaining
information from outside. This kind of network can only be accessed by entity's subordinates or
staff (Leon, 2018).
In context of chosen firm, they uses both these networks in proper manner. Moreover, these
are important as with help of these networks it is easy to make decisions and using of resources is
done in proper manner. Also, using of these networks assist in carrying out communication in
proper manner. In business, they both are used for different purposes & it is crucial to use them
appropriately. Furthermore, it is examined that knowledge and skill is needed so that networks are
used in effective manner.
Importance of internet
 With increase demand of customers and people, use of internet has become important as it
help business in developing marketing strategies and also assist in accessing to new
information on daily basis (Meidan, 2017).
 Further, by using internet RSA Group is easily able to access to customers at larger which is
beneficial for growth and development.
 Also, it enhances sustainability period of business as because it helps in achieving of
competitive advantage in market.
Importance of intranet

 Intranet is too crucial as it help in sharing of resource through using of data at larger scale
in safe and proper manner.
 It is too essential for sharing of internal communication and which also results in accessing
to solution of a problem in proper manner.
Examine the importance of social media in business
In business, it is essential to access higher growth as well as development so that goals are
achieved within time period. Social media refers to platform which is used by organisation to share
and create content to participate in social networking. Business is wider term and which consists
large number of activities as well as functions. In relation of selected firm, they also uses social
media on basis of which they are able to access customers and promote as well as advertise their
brand in appropriate way.
Furthermore, this is analysed that using of social media help in achieving of business
opportunities in easy way.
Discuss several aspects of system development life cycle.
System Development Life Cycle refers to model in which it help in transforming of new
project into operational one. SDLC, is a systematic process which is to be carried out in appropriate
way. With help of this model, it is easy to carry out both technical and non-technical activities. It
comprises of several stages which are further discussed below-
Planning-
It is a first stage in which it includes planning of idea and identifying of problems and
analysing solution. It focuses on several activities such as cost, time, benefits etc. In reference of
RSA Group plc, they implement planing by scanning business environment. Also, they take
feedbacks from subordinates, experts etc. on basis of which they are able to examine size and scope
of appropriate applications (Rani, 2017).
It is second stage in which it focuses on analysing of functional requirements of project. It
is necessary to be aware about system analysis as it help in accessing to needs of end users. In
relation of RSA Group, they are developing a software to protect their online transaction system.
Furthermore, they too have hired a team of expertise to achieve their objectives.
System Design
It is a stage in which it focuses on working application system. System design is essential
to be known as it help in analysing of user interface of software, testing & prototype etc. Through
properly analysing of system design, it is easy to carry out further process easily.
Development
In this aspect of SDLC, it is also essential one which states that development of projects is

also important. It states that new information, programme are required to be installed within
software to achieve positive output. So, RSA Group make ensure that development is done in
proper manner (Spieth, 2019).
System Analysis & Requirements-
Testing
It is aspect in which it states that after development analysis, measure of performance &
progress is to be done appropriately so that further decisions is being carried out. The quality and
testing team of RSA Group checks the quality of software in detailed manner. This done by them
using system integration & system testing.
Deployment
It is a final stage of SDLC model in which it depicts that software is ready to be used for
final output. The software which is developed by chosen firm are being used by them on basis of
which they are able to carry out their marketing activities. Further, it is too analysed that software is
needed to be used by authorized people only.
Thus, from above stated matter it is analysed that proper SDLC is wider concept which is
to be understood in proper manner. Furthermore, it is analysed that it is duty of manager that proper
models are being applied so that vision and mission is achieved.
Analysis & Discussion
From above discussed matter, it has been stated that it is important to access to information
and use wide range of data in order to achieve goals as well as objectives appropriately. Further,
network technologies are crucial to be used so that communication & information is being carried
out widely. In context to selected firm, they uses this internet as well as intranet in well organised
manner which helps them in accessing to competitive advantage easily. The scope of IT is wider &
broader as without it, business or organisations cannot fulfil their goals (Vallaster, 2019).
Recommendation
From above analysis, it is seen that it is essential to be well aware about the concept of IT
so that benefits are easily achieved. Furthermore, it is also examined that it is crucial to understand
the market situations so that better decision making is implemented. So, few recommendations are
given below-
It is recommended to RSA Group that they should conduct a internal and external analysis
so that market information is gained and decisions are taken appropriately.
Another recommendation is that they can use new IT system and technology for exampe
they can opt for artificial intelligence and machine learning because it will help them to protect their
data and provide better services to users in well defined manner.

CONCLUSION
From above discussed report, it has been concluded that information technology is
important for business perspective as it helps in achieving goals within time interval. So,
discussions have been made about role of IT in success of failure of business, ethical & social
issues, comparison between networking technologies, importance of intranet & internet & SDLC.
Therefore, it is evaluated that appropriate type of decision making is needed to be done so that it is
easy to implement strategy within business for future development & growth. The concept of IT is
wider & individual need to have critical thinking skills.

REFERENCES
Books & Journal:
Boddy, 2017. Social media and social work: The challenges of a new ethical space. Australian
Social Work, 70(2), pp.172-184.
Han, 2017. Reconceptualization of information technology flexibility for supply chain
management: An empirical study. International Journal of Production Economics, 187,
pp.196-215.
Hanes, 2017. IoT fundamentals: Networking technologies, protocols, and use cases for the internet
of things. Cisco Press.
Husam, 2018. Information Technology Role in Determining Communication Style Prevalent
Among Al-Azhar University Administrative Staff.
Ichsan, 2019. Implementation of LAN (Local Area Network) Network on PT Aplikanusa
Lintasarta.
Kim, 2018. Relationship of ethical leadership, corporate social responsibility and organizational
performance. Sustainability, 10(2), p.447.
Lashkari, 2019. Information technology and returns to scale.
Leon, 2018. LAN-WAN-LAN end-to-end Network Simulation with NS2. International Journal of
Applied Engineering Research, 13(17), pp.13136-13140.
Meidan, 2017, April. ProfilIoT: a machine learning approach for IoT device identification based on
network traffic analysis. In Proceedings of the symposium on applied computing (pp. 506-
509).
Rani, 2017. A detailed study of Software Development Life Cycle (SDLC) models. International
Journal Of Engineering And Computer Science, 6(7).
Spieth, 2019. Value drivers of social businesses: A business model perspective. Long Range
Planning, 52(3), pp.427-444.
Vallaster, 2019. Ethics and entrepreneurship: A bibliometric study and literature review. Journal of
Business Research, 99, pp.226-237.