Importance of Information Technology in Business

The assignment delves into the essential role of Information Technology in businesses, focusing on its benefits, regulations, and potential security breaches. It emphasizes the need for effective IT management to protect client information and prevent non-beneficial situations. A conclusion is drawn highlighting the importance of IT in enhancing management systems.

INFORMATION
TECHNOLOGY

Table of Contents
INTRODUCTION...........................................................................................................................1
ASSESSMENT 1.............................................................................................................................1
Covered in PPT...........................................................................................................................1
ASSESSMENT 2.............................................................................................................................1
TASK 4............................................................................................................................................1
Role Of Information Technology (IT) in success of Four Seasons............................................1
Ethical and Social Issues regarding the use of technology in Service Industry..........................3
Differentiation between various networking technologies.........................................................4
Benefits and Drawbacks of Four Seasons investing in Information Technology.......................5
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Information technology is that branch of business environment which undertakes all the
aspects of computing like software, hardware, telecommunication and other infrastructure which
helps in creating, processing, securing and exchanging electronic information. It deals with all
the factors that results in transmittal of data and systems that help firms facilitate
communications. The following presentation is about the importance of information technology
which covers classification of computers and their applications in the real world. It also covers
the importance of Internet for individuals as well as for business organisations. The use of
Information and Communication Technology as well as transformation of social media has also
been mentioned in the presentation.
ASSESSMENT 1
Covered in PPT
ASSESSMENT 2
TASK 4
Information Technology has wide impacts on industries within the business environment.
However, its impact could clearly be evaluated in service industry. There has been a vast use of
various IT software in hotels and restaurants which have enhanced their service quality and
better management (Chase, 2016). It also helps these firms to be competent and drive off
competition which is necessary for their long term sustainability. As per the scenario, the
organisation chosen for the purpose is Four Seasons Hotel London, which is one of the most
popular hotels in terms of service as well as comfort. Following are the aspects of how
information technology is influencing the firm.
Role Of Information Technology (IT) in success of Four Seasons
There is a very crucial role of IT in the success of Four Seasons. It could be used to
enhance the functioning of the department which could ensure its success in the long term. IT in Marketing: Success or failure of a hospitality industry heavily depends on how the
firm market its services in the public. Information Technology could play a vital role
towards enhancing the marketing facet of the company. Four seasons could use effective
1

Customer Relationship Management CRM software to up its game in marketing its
special services to the public which could help them engage more customers globally. IT in Human Resource: For any hotel, it is very crucial that human resources are
effectively manage in order to enhance their service quality and employee retention. Four
seasons through HR software could manage these resources up to their maximum
potential (Piotrowicz and Cuthbertson, 2014). These software would help them
automatically manage the tasks given to employees which saves time as well as
assessment efforts. By automation, managers at Four season could help appraise their
performances and ensure higher effectiveness. IT for communication: Infrastructure of Four Seasons is quite huge and have various
departments that are needed to internally communicate within themselves regarding
various interconnected activities. Through automated IT software used for
communication, the departments could allot tasks along with the timeline, as well as
check the status of each pending activity. This would enable them to successfully manage
the tasks without having external burden and inefficiency. Such communication software
would enhance the speed of activities as well as better customer management which
surely would contribute towards Four Season's success.
 Cloud Computing: Within the UK hospitality sector, Information Technology is quite
useful in managing customer information. From hotel bookings, to checkouts, to
feedbacks, cloud computing helps hotels to manage these informations about their
customers effectively. Four Seasons through cloud computing could enhance its service
quality by getting more informed about the customers. It includes their personal
information like their birthdays, as well as information about their preferences through
their effective feedbacks (Bloom and et. al., 2014). Cloud Computing software would be
of vital relevance for the firm to enhance customer engagement and expand their profit
share.
Thus, seeing the current technological advancements in the service industry, Information
Technology is crucial for companies who want to enhance their management and service quality.
Four Seasons could adopt various IT practices that would help the firm succeed in the UK
market and eliminate competition via long term sustainability.
2

Ethical and Social Issues regarding the use of technology in Service Industry
The business environment of the UK is currently inclining heavily towards use of
technology. Whether in hotels or restaurants, technology is used in every department of these
businesses. Four Seasons is a hotel which is world-renowned and is viewed as a shining example
of hospitality sector. However, it is prominent that the firm fulfils it Corporate Social
Responsibilities (CSR) (Andrade and Doolin, 2016). With use of effective information
technology, there are some very important ethical and social issues that need to be considered by
Four Seasons (Ethical & Security Issues in Information System, 2018). Some of those issues are
discussed below:
ETHICAL ISSUES Online Hacking: One of the major ethical issues that is a cause of concerns for hotels
and restaurants is online hacking. With advancements in technology, the UK as well as
the world is being exposed to such unethical threats. The customer base of Four Seasons
is very big and the firm has abundance of confidential information in their servers. Online
hacking could be a major threat to these information and violation in privacy data of the
customers. This would induce distrust among the customers regarding the hotel and the
information collected through hacking could be used against the organisation (Lee,
Thomas and Baskerville, 2015).
 Copyright Infringement: Another major threat related to the use of technology that could
impose heavy impact on Four Seasons is copyright infringement. For instance, Four
Seasons come up with some innovative service of takeaway hotels that deliver the hotel
room at the location of the customer. Since this could be a new concept, the firm would
acquire a copyright for the same. Infringement would be the case when some other hotel
is providing similar services without acquiring proper permission from Four Seasons.
This would result in extra legal and monetary efforts that would cost the firm additional
time and resources.
SOCIAL ISSUES Health Issues: Positive effects of resources are limited until their optimum usage.
Overutilisation of resources affects negatively on individuals. Similar is the case with
technology. With enhanced equipments for service industries, employees are exposed
with various gadgets like mobile phones, tablets, microphones, computers, laptops and so
3

forth. Regular and daily use of all these causes severe negative effects on the health of
employees of Four Seasons. The negative effects of health include cognitive losses in
employees, strain on eyesight and hearing loss. Moreover, the radiation by these gadgets
cause very harmful effects on the braincells of these individuals that must be a major
concern for managers of Four Seasons.
 Negative Promotion: With various internet offers that are favourable to individuals, the
UK is experiencing a high range of individuals that are addicted to the use of Social
Media. Some of these even exploit their right to speech which is very bad for a firm like
Four Season which is considered very respectable in the market. Be it a competitive
strategy or limitation of the firm, it is highly likely that the company is subjected to
various negative remarks on social medial platforms like Twitter or Facebook (Gelenbe
and Caseau, 2015). This hinders the growth of the company and causes customers to
prefer other competitors. In addition, such remarks spread like wildfire over the internet
that is negative for the firm locally as well as globally.
With use of technology, Four Seasons must undertake various negative aspects associated
with this and must work towards eliminating these in order to ensure prosperous growth in the
structure of the company.
Differentiation between various networking technologies
Networks refer to interconnecting nodes which are developed to transmit and share
information. They act as a backbone of every business organisation. Internet acts as a medium
for information facilitation. Networking technologies have a range of coverage, from a room to
entire planet (Nguyen, Newby and Macaulay, 2015). Each network type is designed to fulfil a
certain purpose. Some of the crucial networking technologies that are used by business
organisations are described below: Local Area Network (LAN): One of the most frequently discussed network is LAN. It
connects devices with low voltage levels or computers within a short range, for instance,
a building or few buildings together. This helps them to effectively share information
with one another. These devices use routers as the medium to share information between
the networks. Wireless Local Area Network (WLAN): Used effectively in Four Seasons, this network
type uses wireless technology to connect networks such as Wi-Fi. This network type
4

decreases the uses of cables. Usually hotels have private WLAN networks protected with
passwords. The users, in order to access needs to provide the authenticated password.
Such protection helps in network breaches which ensures data security. Metropolitan Area Network (MAN): This network type covers a whole city and way
larger than Local Area Networks. This provide networking facilities to households as
well as organisations of a city or town. The ownership of these types of networks depend
upon a single entity or a whole organisation. Wide Area Network (WAN): The complexity of this network is higher than any
mentioned above. It connects network over wider geographical distances than MAN.
Computers or other devices could connect and transmit information effectively despite of
being miles apart. One of the most crucial example of WAN is internet. It helps Four
Seasons to communicate to its stakeholders anywhere in the world instantly and
whenever required.
 Virtual Private Network (VPN): Internet becomes a prime source again and VPN's are
established by causing extensions in private networks, which enables the users to transmit
and receive informations as if they are a part of a private network. Moreover, private
network could be effectively accessed by the users by virtual connections.
Benefits and Drawbacks of Four Seasons investing in Information Technology
Information technology in firms is very important for companies operating in service
industries. It helps them to manage their operations effectively that helps them to sustain in a
complex and dynamic business environment. It also helps to achieve greater competitiveness
which is important for any company to succeed (Milgrom and Gemmill, 2015).
However, there are certain benefits and drawbacks for companies investing in
Information Technologies. Some of these are discussed below: BENEFITS
▪ Streamlined Communication: Information Technology would help Four Season
in establishing effective communication throughout the hotel. With better
connectivity and dispersed and wider landscape, the firm could recruit and retain
employees by collaboration and continuous communication.
▪ Strategy Development: With enhancements in knowledge and strong
technological base, IT would help Four Seasons in achieving a concrete
5

competitive advantages for the firm. It would also help the firm in developing
various strategy that would enhance the management as well as the agility
required for such a dynamic business environment.
▪ Waste Reduction: Information Technology in long run would help Four Seasons
effectively manage their wastes by managing daily tasks in an effective manner.
For instance, with effective online training programs, the firm could save its time
and financial resources in training their employees. Also, automated software
would allow effective management of performances of employees which is
crucial for the firm. DRAWBACKS
▪ High Costs: It is not easy for companies to implement effective Information
Technology within their organisation. It takes loads of financial support and
resources to establish IT within the whole organisation. Four Seasons would have
to spend a high amount to build a strong and effective IT system which could
serve the organisations in the long run. Moreover, it also needs effective
management which is costly too.
▪ Security Risk: Major IT systems are based on cloud computing systems to
download and upload information. Strong cloud systems in recent past have also
been breached and private information of the users have been exploited. Four
Seasons might face this situation with their IT system and it also could pose a
threat to its payment systems or information management. This represents a
severe threat to the company by investing in IT.
▪ Regulations: Client informations are subjected to a lot of regulations. It is
essential for Four Seasons to effectively manage these information as per the
regulations. It is the prime concern for lawmakers to protect client information
shared with the company. IT systems could be effective in handling such
information but breaches in them might prove non- beneficial for the company.
CONCLUSION
Thus, it is concluded that Information Technology is quite essential for companies who
work towards achieving improvements in their management systems. It is essential to enhance
knowledge about the classification of computers and effective usage of internet. It is also used to
6

enhance the knowledge about the ways Information and Communications Technology is used in
the companies in the current scenarios. In addition, it is imperative to the know the use of social
media in business organisations. An evaluation is necessary to determine how Information
Technology could be beneficial for the organisation along with the social and ethical issues
associated with it.
7

REFERENCES
Books and Journals
Andrade, A.D. and Doolin, B., 2016. Information and communication technology and the social
inclusion of refugees. Mis Quarterly. 40(2). pp.405-416.
Bloom, N., and et. al., 2014. The distinct effects of information technology and communication
technology on firm organization. Management Science. 60(12). pp.2859-2885.
Chase, M.W., 2016. The Journal Of Physical and Chemical Reference Data (No. World Wide
Web-Internet and Web Information Systems).
Eason, K.D., 2014. Information technology and organisational change. CRC Press.
Gelenbe, E. and Caseau, Y., 2015. The impact of information technology on energy consumption
and carbon emissions. Ubiquity. 2015(June). p.1.
Lee, A.S., Thomas, M. and Baskerville, R.L., 2015. Going back to basics in design science: from
the information technology artifact to the information systems artifact. Information
Systems Journal. 25(1). pp.5-21.
Marchewka, J.T., 2014. Information technology project management. John Wiley & Sons.
Milgrom, J. and Gemmill, A.W., 2015. Introduction.
Nguyen, T.H., Newby, M. and Macaulay, M.J., 2015. Information technology adoption in small
business: Confirmation of a proposed framework. Journal of Small Business
Management. 53(1). pp.207-227.
Piotrowicz, W. and Cuthbertson, R., 2014. Introduction to the special issue information
technology in retail: Toward omnichannel retailing. International Journal of Electronic
Commerce. 18(4). pp.5-16.
Online
Ethical & Security Issues in Information System. 2018. [Online]. Available
through:<https://www.guru99.com/mis-ethical-social-issue.html>
8