Impact of IT on Business: Commonwealth Bank of Australia

Running head: IMPACT OF IT ON BUSINESS
Impact of IT on Business: Commonwealth Bank of Australia
Name of the Student
Name of the University
Author’s Note:

1
IMPACT OF IT ON BUSINESS
Abstract
The major objective of the report is to know about the effect of IT in CBA. Various
subsequent and important impacts of information technology are present for any particular
organization such as information flow, supporting major business related decisions,
transaction processing, data management, executive support as well as several others. IT is
majorly responsible to effectively and efficiently provide each and every business with core
and significant scope for data analysis and also planning of numerous strategies of business
properly. This report has identified a security breach of CBA last year and requirement of IT
for this purpose is stated. Moreover, process to utilize IT and risks related to IT are also
provided in this report.

2
IMPACT OF IT ON BUSINESS
Table of Contents
1. Introduction............................................................................................................................3
2. Discussion..............................................................................................................................3
2.1 Need of Information Technology within Commonwealth Bank of Australia..................3
2.2 Importance of Information Technology for Survival of Business...................................3
2.3 Requirements to apply IT in Commonwealth Bank of Australia.....................................4
2.4 Procedure to use IT in CBA.............................................................................................4
2.5 Advantages and Benefits of Information Technology in Banking Sector.......................5
2.6 Types of Risks in Information Technology for CBA.......................................................6
2.7 Procedure to maintain and monitor Information Technology by CBA............................7
3. Conclusion and Recommendation..........................................................................................8
References................................................................................................................................10
Appendix..................................................................................................................................12

3
IMPACT OF IT ON BUSINESS
1. Introduction
Information technology systems are used by several companies to properly perform
any type of task (Tiwana, Konsynski and Venkatraman 2013). This report will be providing a
detailed description on effect of IT over a famous and noteworthy banks within Australia,
Commonwealth Bank of Australia or CBA. Several distinctive details like IT importance,
application of this information technology within the business, notable advantages and threats
of IT, requirement to implement IT would be mentioned in the report effectively.
2. Discussion
2.1 Need of Information Technology within Commonwealth Bank of Australia
IT is needed in CBA so that they do not similar incident faced last year. In the year of
2018, the respective banking official in this particular bank eventually confirmed that over 20
million customers’ accounts and financial data have been lost, although they even insisted on
the fact that they did not compromise on account security under any circumstance
(ABC.net.au. 2018). The various transaction details, personal details of customers during the
tenure of the years from 2000 until 2016 were being destroyed. These significant details were
stored within two magnetic tapes and these were destroyed by Fuji Xerox sub contractors
(See Appendix). This specific breach in data privacy and security focused on the fact they
subsequently require information technology within their business so that they are able to
reduce data related issues and problems effectively.
2.2 Importance of Information Technology for Survival of Business
IT would be extremely effective for survival of business so that information could be
effectively stored, retrieved and sent. The business operations are well executed with IT and
hence vulnerabilities or risks could be lowered in an effective manner. A proper information
transfer is only possible to make all kinds of decisions and even to ensure that information