Impact of Information Technology on Businesses: Benefits and Challenges

INTRODUCTION TO
INFORMATION
TECHNOLOGY417

ABSTRACT
The current report is highlighting the use of information technology and its impacts on
the businesses. The importance and the use of IT services cannot be ignored and it has become
an important requirement to survive and succeed. The introduction of IT in the business is quite
essential in present context as it comes with a lot of benefits that profits the industries. But along
with the benefits, certain challenges also arise due to these digital advancements. The fact that it
eases the business operations, it also needs to be well maintained to use it at its full potential and
provide maximum benefit to the people.

Table of Contents
ABSTRACT ....................................................................................................................................2
Table of Contents.............................................................................................................................3
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
LITERATURE REVIEW................................................................................................................4
Impact of IT in helping businesses in increasing their operations...............................................4
Importance of ethical and social issues that are becoming significant in virtual world..............5
Different types of computer network and their impact on business............................................5
Role of artificial intelligence in growth of businesses.................................................................6
ANALYSIS AND DISCUSSION...................................................................................................7
The main potential benefits for the bank in investing in the information technology are- .......10
The main drawbacks for NetWest in investing in the information technology are-..................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Information technology commonly pronounced as IT, can be defined as the use of
technology to manage, store, share and process data. It is one of the fastest growing sector in the
world due to its growing demand to handle a lot of data and making use of that data becomes
quite crucial. The current report discuss the impact of IT in helping businesses to enhance their
operations and the importance of ethical and social issues which are increasingly becoming
significant in the virtual world. The report also highlights different types of computer networks
and the impact of AI in enhancing the businesses. The benefits and drawbacks in the use of
information technology for the organizations as well as the people.
MAIN BODY
LITERATURE REVIEW
Impact of IT in helping businesses in increasing their operations
According to the Zein and et.al., (2021) technology is playing a vital role in banking sector
as it has made its operations easier. In addition, it is stated that banks including Bank of England
uses block chain technology with the main aim of making smooth running of functions and
cutting cost. Online transactions, online passbook entries and online statement checking are some
common examples of technology in banking sector. It has made beneficial to people as they do
not need to visit their banking branch and within timely manner, they can know about their
transactions. Overall, it can be said that information technology is saving time of banking
workers and general people as well.
Pakurár and et.al., (2019) supported above view and stated that information technology is
the main key of success of banking sector nowadays. They cannot even imagine their
professional lives without technology. The biggest revolution came in banking sector is
digitalisation. It has made banking operations faster as well as reliable than before. Workers can
now perform number of tasks by using technology and they can solve customers’ problems
without meeting customers. It saves time and cost of customers and banking workers. Some
authors have argued above view and stated that technology has brought number of positive
changes but along with this, there are number of negative impacts that IT has had on banking
sector. Theft of personal information, misuse of information, cyber security, breaches and others.
Hackers send wrong links to innocent people that looks like real and as soon as people tap on
that link, hackers hack their bank account and by doing so they credit all their balance. So, in this