Impact of Information Technology on Business: A Case Study of HSBC

This report discusses the impact of information technology on business with a case study of HSBC. It covers different types of application software, ethical and social issues, the role of IT in managing businesses, and potential benefits and drawbacks of investing in information technology.

Introduction to
Information
Technology

Table of Contents
INTRDUCTION..............................................................................................................................4
TASK...............................................................................................................................................4
Discuss different types of application software that could be used by businesses.....................4
Ethical and social issues are increasingly becoming important in the digital world. Identify
and discuss the importance of them to run business...................................................................5
Information and communication technology makes a business more efficient and effective in
responding to customer need. Discuss the impact of ICT on business.......................................7
Discuss the role of IT in helping managers to manage businesses.............................................8
Support your analysis with a discussion of the potential benefits and drawbacks of your
chosen company investing in information technology................................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRDUCTION
Information technology basically refers to a online platform which is utilized by
organization for run their departmental activities and services smoothly. For run their services
properly management used various advanced software and equipments and with help of these
elements they easily deliver their quality products and services to customers in time. In this way
strong positive relationship are effectively developed between customer and company for long
duration. Due to the effective utilization of information technology organization easily store,
exchange, retrieve, develop and process their various types of information or data in fast manner.
The chosen company for analysing the activities of IT department is HSBC and it is the largest
company in UK. The company was established in 1850 and main function of this organization is
to facilitate financial services and benefits to their old and existing clients digitally (Achmad,
2021). This report will cover different type of application software that could be used by
businesses, ethical and social are increasingly becoming important in digital world. It also covers
information and communication technology makes a business more effective and efficient in
responding to customer needs and also discuss the impact of ICT on business.
TASK
Discuss different types of application software that could be used by businesses
Application software is defined as an programme which is installed or developed by IT
professionals and it is essential for run the departmental functions smoothly. Due to using of
advanced equipments and latest software telecommunication and other type of machines are
worked automatically in fast manner. The different type of software which is used by company
are explained below -
 Spreadsheet – In this type of software data are developed and stored in tabular form
which is important for company to manage a proper record on monthly and daily basis
(Adeleye, Adedoyin and Nathaniel, 2021). Due to keeping records and using this
software organization easily identify the loss and profit regularly with help of applying
various formulas effectively. In context to HSBC, management must use these techniques
for decreasing the risk in their financial activities.
 Graphics – Due to using this type of software consumers are easily attracted in large
number. Because here IT workers are used different types of software for facilitating

reliable information with help of beautiful designs and attractive graphics. In context to
HSBC, management must use this software for increasing the desires and wants of
customers to know about their financial services.
 Database software – In this stage company used this software for securing and
managing confidential and personal data of customers in systematic way (Ahdan and
Setiawansyah, 2021). With help of maintaining strong security in different types of
information the goodwill of organization are also easily sustained between public for long
time. In context to HSBC, authority must use advanced software to maintain balance in
the demand and supply of their product in market.
 Web browser – In this type of software the convenience of consumer and employees are
easily enhanced in various locations regarding company product and services. The main
advantage of increasing convenience by management with help of technology is that the
enhancing popularity and sale of their financial product between public. In context to
HSBC, management must provide reliable, beneficial and different types of services to
consumers in digital way. Due to this consumers are able to access variety of
informations regarding company product and services. Then according to that company
take final decision for buying their product.
 Presentation software – The main motive for utilizing this type of software by the
workers of HSBC is to enhancing the visualization of information in front of audience
effectively. Due to using this method informations are systematically displayed for
customers (Estrada and Zhou, 2021). It leads to increase the attraction of customer in
large number for availing their services at any cost. Due to receiving systematic
information customers easily understand the benefits and drawbacks of their product
within low time.
Ethical and social issues are increasingly becoming important in the digital world. Identify and
discuss the importance of them to run business
The important issues which is faced by company from other brands during the time of
running their business are described below -
 Phishing – It refers to those risk which is which is highly dangerous for the system and
functions of organizations which is totally connected with their financial services.
Because in this phase wrong and fraud informations are sanded to customers and

employees from fake company side. Due to this reason different types of systems and
equipments of organization are get hacked which creates negative impact in the
performance of their financial services. Due to poor financial services bad impression are
also developed in minds of the users towards company for long time. In context to
HSBC, it is necessary for management that they must provide advanced technological
training their employees in all departments. Due to getting effective training proper
utilization of equipments by the employee’s are enhanced. In this way awareness of
employee’s are increased regarding various. In this way phishing and cyber attacks from
competitors are easily reduced at maximum level.
 Viruses and Malicious Programs – It is concerned with those risk which are send or
installed from the crackers or hackers (Halin, Khairunizam and Ali, 2021). In this process
the crackers are sending different type of attachment or mail to each and every employees
or clients. In this type of mail the viruses are involved in the form of security or other
codes. Therefore, when the client or the employee will open any type of file then, the
computer and their other equipments are easily hanged for long duration. In context to
HSBC, it is necessary for management management must utilize strong antivirus ans
security firewall for protecting their information at large extent.
 Personal piracy – It is an other type of risk and threat which comes under the category
of phishing. But main difference is that in this technique hackers or crackers are highly
focused on confidential informations of customers and company (Khalid and Ameen,
2021). Due to this type of interference sometimes operational and service functions of
firm are not worked systematically and properly. It also create threat for the distribution
channel of the company at large extent through online mode. In context to HSBC it is
necessary for management, that they always update their equipments and software in
time. Because when company used updated technology then, definitely illegal activities
by the hackers are highly reduced in long term. Due to reducing illegal activity good
relationship are also maintained between employees and employer or employee and
customer effectively.
 Denial of service – It means interference of multiple users or hackers during the time of
delivering services to customers. It is also defined as financial and other activities of the
organization are getting slow down in aspect of speed for some time. The main reason for

facing these type of problems by the customer and company is that their network are not
so strong digitally. Due to ineffective network lot of time are taken by consumers and
employees in organization for accessing the information. Due to taking lot of time for
accessing the data customer easily spread the negative word of mouth towards company
which leads to decrease their market share profit in long term. In context to HSBC,
management must utilize their own software with help of talented technical workers for
maintaining the smooth flow of digital services with consumers in long run.
Information and communication technology makes a business more efficient and effective in
responding to customer need. Discuss the impact of ICT on business
In the field of information and communication technology organization gets lot of
benefits in their business activities such as enhancing profit, maintain good relationship with
clients etc. Because in today's time technology are growing day by day which leads to increase
the convenience of customers during the time of availing services from organization (Lyytinen,
Nickerson and King, 2021). With help of utilizing information and communication technology
company faced various impact which are given below -
 Management of resources – It refers to organization are utilizing wide range of
resources for running their business activities smoothly. It includes human resource,
financial resource and others. Therefore for handling various types of resources company
used various technology in workplace area between employees. For example HSBC is
one of the company who used cloud, AI technology and biometrics for run their online
functions in faster speed in multiple locations.
 Protecting information – In this stage personal information of the client and company
are managed in the form of records with security and safety in long term. For keeping the
security of data it is important for HSBC that they must utilize effective storage
equipments which which is essential for increasing the security for consumers at large
extent. In context to HSBC, management must use those type of storage systems which is
worked virtually such as google drive and cloud computing for keep the informations at
safe manner.
 Working remotely – Here technology is one of the important concept which is
effectively utilized by company for increasing the convenience of workers in their job
role. Due to providing this type of facility by the management, the roles and

responsibilities of the workers are easily fulfilled in time from different locations. In
context to HSBC, management must use some specific methods and also facilitate
essential equipments to their employees. In this way financial services are delivered to
customers in time and productivity of organization are also enhanced for long duration.
 Providing customer satisfaction – Here information and communication technology
plays major role between organization and consumer (PrawiraW, Maulida and Achmad,
2021). Because for organization maintaining customer satisfaction level is essential for
enhancing the revenue of company in short duration. Due to using this type of technology
complaints and queries of consumers are easily solved in few minutes. In context to
HSBC, management must establish effective infrastructure with help of using messages,
social media and Email sources for maintain proper coordination with customers
effectively.
Discuss the role of IT in helping managers to manage businesses
There are various roles which are fulfilled by manager for run their business successfully
with help technology. Those roles are described below -
 Use of artificial intelligence – It is an advanced programme and software which is in the
various equipments of HSBC by IT specialized workers (Sivakami, Sarankumar and
Vinodha, 2021). Due to installing these type of programs systems are worked
automatically and completed all types of task in time . With help of this type of
programmes stress and workload on employees are highly decreased which leads to
increase their performance within organization in effective manner. In context to HSBC,
management use this technique for facilitating best service to consumers in any situation.
With help of using this tool the automation are highly increased in banking industry
effectively.
 Research and analysis – It is an highly effective tool which is used by manager for
identifying and reducing the problems of workers in workplace. Due to solving their
problems in time productivity of company are enhanced for long time. In this process
technology are utilized by manager for decreasing misunderstanding between all
categories of employees. In this way company always facilitates best quality service to all
customer segment in time. In context to HSBC, authority must provide effective training

to their managers of all department about their technology. Due to this the potentiality of
managers are enhanced then, the manager are ready handle any type of situation easily.
 IoT (Internet of things) – In this phase the important role of manager is to analyse the
difficulties of consumers with help of using various equipments. Then after evaluating
various types of information managers easily developed solutions for users and
employees in low time. In this way the relationship between customers and HSBC are
built effectively for long time.
Support your analysis with a discussion of the potential benefits and drawbacks of your chosen
company investing in information technology
Benefits of HSBC in information technology are -
 Increasing productivity – It means when technology are highly utilized by organization
then, definitely interaction with consumers are highly enhanced (Smith, Corso and
Bennett, 2021). In this way the communication with all categories are perfectly sustained
for long duration. For enhancing productivity and work efficiency of HSBC, management
are mostly used automated equipments which leads to increase the service quality at
higher rate in minds of customers. It is also important for run the service activity in fast
way. For example if customer want to take the bank statement through on line mode then
the machine send the statement to user in very less time. In this way the waiting time of
customers are highly decreased in their company.
 Error reduction – It refer to due to effective utilization of technology errors are easily
reduced at higher rate which is mainly created by workers in workplace area within
organization . With help of effective technology transaction of money between
organization and customer are worked smoothly and also enhanced customer satisfaction
level effectively. Here technology also helps to deliver right products to right customer in
without occurring any type of mistake. Effective utilization of equipments helps the
customers to get accurate and reliable data about the company product.
 Saving of money and time – In context to HSBC, is one of those company who always
used advanced software and systems for providing quality product and services to users.
Due to using various technologies company are able to sustain 24*7 concept regarding
their service specially in banking sector. This concept is highly essential for organization

to maintain good communication with customers for long time. In this concept company
are highly used artificial intelligence for run their services in fast manner and
automatically. It includes installation of ATM machines and cash deposition machines in
various and nearest locations. Due to utilizing these facilities the positive word of mouth
are increased easily from consumers for long duration.
Drawbacks of information technology are -
 Reducing productivity – It means due to high utilization of technology chances are
easily increased for decreasing the life of equipments which leads to reduce the
productivity of organization. For reducing this type of problem it is necessary for the
management of HSBC that they must service their systems time to time (Usmonov,
2022). Because effective utilization of equipments depends on the using style of human
beings. It also means that if machines are properly utilized then only organization
received positive output. The other fact is that combination of human beings and
equipments are highly essential for sustaining company's vision, mission and objectives
in long term.
 Increasing cost – It mean due to high utilization of digital resources the cost and
expenditure of the company are highly reduced in their business activities. HSBC is one
of the company who made lot of investment in their equipments for facilitating best
service to customers. But due to high investment price of their product are also increased
which is not good for customers. In context to HSBC, management are highly focused on
upper and middle class segments but this create negative impact on the performance of
organization in the aspect of decreasing customers. Due to this it is essential for
management that they must maintain their supreme quality in affordable or flexible price
which is favourable for all customer segments.
 Totally depend on technology – In context to HSBC this organization is highly depend
on their technology but it creates both positive and negative impact on the performance of
company. It means when company are highly concentrate on various technological
equipments threat are highly created on the lower level employees in various aspects
(Valeri and Baggio, 2021). It includes losing of their job, decreasing of employee value
and others. The main disadvantage for using new technology is that lower level

employees are facing lot of difficulties for understanding their functions. Due to this the
productivity of employees are decreased at maximum level in long term. Therefore for
decreasing this problems it is important for management that they must provide proper
training to their workers. In this way awareness of employees are easily developed about
new equipments in workplace for doing the work in fast manner.
 Increased risk for employees in their job – It means organization believes that all types
works are easily done by machines which is highly attractive for customers (Walrave,
Waeterloos and Ponnet, 2021). But due to utilization of machines the value and
importance of the workers are effectively decreased in front of senior level management.
Due to this reason at the time of COVID pandemic huge number of employees lost their
jobs from different. Due to considering talented workforce company mostly hire only
those employees who are belongs from IT field. Because IT employees are highly
responsible for run the whole organizational activities smoothly. Therefore it is essential
for HSBC that management must also provide importance to the various skills of
employees. Because machines are created by human beings and they have the ability to
increase the productivity and profit of company at maximum level.

CONCLUSION
After the analysis of above information it is concluded that information technology plays
essential role for maintaining their world wide presence. In today's time information technology
is utilized every people for buying the product of company in low time. Due to effective use of
technology company easily maintain the 24*7 concept in minds of customers for long time. In
context to HSBC they run their services internationally for increasing their goodwill in front of
customers for long duration. Proper utilization of technology are also helpful for solving the
difficult problems of employees and customers in time. In this way good relationship are also
effectively sustained in long term between customer and organization.

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