Impact and Importance of Information Technology in Commonwealth Bank Australia

This paper discusses the impact and importance of information technology in Commonwealth Bank Australia (CBA), including the need for IT, risks and benefits, and the procedure for utilizing IT in CBA.

Running head: INFORMATION TECHNOLOGY FOR BUSINESS
INFORMATION TECHNOLOGY FOR BUSINESS
Name of the Student
Name of the University
Author Note

INFORMATION TECHNOLOGY FOR BUSINESS 1
Executive summary:
The purpose of this paper is to discuss the impact and the importance of the information
technology in Commonwealth Bank Australia (CBA). The IT system is naturally utilized by
different organisations for performing several tasks. This is also including certain hardware,
software as well as the applications for executing each of the business related process or the
operations. The software and computers are also used for maintaining a proper balancing
between attainments and business strategies. This paper highlights different aspects like risks
and benefits as well as the primary features of the Information technology in CBA. A suitable
recommendation has also been provided in this paper.

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Table of Contents
Introduction:...............................................................................................................................3
Discussion:.................................................................................................................................3
Need of IT in CBA:................................................................................................................3
Importance of IT for Survival of Business:............................................................................4
Need for applying Information Technology inside CBA:......................................................4
Procedure of CBA to utilize Information Technology:..............................................................5
Advantages of Information Technology in the Banking Sector of Australia:.......................6
Types of Risks:.......................................................................................................................7
Process to maintain and monitor IT in CBA:.........................................................................7
Conclusion:................................................................................................................................8
References:.................................................................................................................................9

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Introduction:
Some of the most important impacts of the IT in the business are information flowing,
transaction processing and it also includes decision support, data management and executive
support. Currently the growth of the information technology has been bringing several
significant creativity and innovations. The IT system is naturally utilized by different
organisations for performing several tasks (Admati and Hellwig, 2014). This is also including
certain hardware, software as well as the applications for executing each of the business
related process or the operations. The software and computers are also used for maintaining a
proper balancing between attainments and business strategies. The purpose of this paper is to
discuss the impact and the importance of the information technology in Commonwealth Bank
Australia (CBA). Different relevant details such as the need of IT, risks and advantages of the
technology for the CBA will be discussed in this paper.
Discussion:
Need of IT in CBA:
The Commonwealth Bank of Australia (CBA) is one of the most popular bank in
Australia, which provides different kind of services as well as products to the customers of
them. Due to the flexibility in the structure of it, the bank gets huge opportunity for
enhancing the position of them in the banking sector. The information technology have the
responsibility for increasing the production by reducing the consistency of time after the
distribution of the tasks. The technology has also improvise the communication such as
emails, video and audio conferences and most importantly the phone calls (Imam and
Kpodar, 2013). The efficiency is also improving after including the interconnectivity of the
external and internal structures. Even the storage that is capable to store data and information

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is also improved; the bank can manage the efficiency of confidential data of them as well as
no data breach has been faced.
Importance of IT for Survival of Business:
IT assumes a significant job for the survival of the business. Such distinctive
innovation can be alluded to appropriate use of frameworks so business data is appropriately
put away, recovered as well as sent. Moreover, it additionally keeps up a noteworthy strength
among interest as well as supply of the business administrations to guarantee that each
customer is happy with their administrations or items (Banarescu et al., 2013). As a financial
division needs to consider verified and more secure online exchange, systems or different
advances must be completely free from helplessness and hazard.
A quick run of the checking of the credit is required for the bank for making open
credit simple and protection as well as security of information is even guaranteed with such
innovation. A steady need of administrations for clients can be effectively satisfied with the
fruitful association of Information technology. Cost effectiveness is likewise kept up for
efficiency climb. Client support is one of the most important next component that is
conceivable with this innovation in the Bank so that the survival of the business is
conceivable and upper hands are acquired successfully.
Need for applying Information Technology inside CBA:
The Commonwealth bank of Australia needs to apply IT inside their separate business
to guarantee high protection as well as the security of the classified information of them. In
the period of May 2018, the respective financial officers of this specific bank had affirmed
that in excess of twenty million record subtleties and information have been being lost, in
spite of the fact that they referenced clients' records' security was not traded off. The separate
explanations, which comprised of different such subtleties of the clients for over 16 years, has

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been stored in attractive tapes that were harmed to pull back this information. It was finished
by Fuji Xerox as well as it was also requested by them to legitimate investigation to
inevitably make sense of complete strategy for storing these announcements for these
attractive tapes (Chapman, 2013). In spite of the fact that, the separate data was being
imparted to customers, brand name as well as the reputation was exceedingly influenced after
this protection rupture in CBA.
As they stood up to such issues identified with information security break, an
appropriate contribution of information technology has the centre potential to diminish these
problems and problems to larger amount for support of information security. The particular
bank protected their authoritative choices of not advising customers with respect to such
misrepresentation exercises. They will contain the centre ability to ad lib the information
detailing or examination with IT. In addition, as correspondence is very improved, a few
security or protection breaks can be expelled. A noteworthy arranging and cost adequacy is
expected to adequately plan and guarantee fruitful use of information technology. Even they
need to structure and introduce gear to finish use of IT. Preparing is likewise indispensable
for representatives and staff with the goal that they can utilize this innovation for
improvement of the business.
Procedure of CBA to utilize Information Technology:
The Commonwealth Bank of Australia must utilize IT after legitimate use of couple
of significant and noteworthy techniques and subsequently making the activities of the
business and systems in an effective way. An appropriate exchange of this data is just
conceivable to settle on the best choices, hence ensuring that this data stream is impeccable
and even assurance of business development (Jiménez, Lopez and Saurina, 2013). Every
single entrepreneur in the end needs successful joint effort and correspondence with their

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separate clients within the time. Additionally, the communication with colleagues and
financial investors is also needed to keep up a harmony between business systems in a
superior way.
Intranet network as well as the Share Point is utilized to keep up high effectiveness
and data identified with business trade can be effectively and expeditiously imparted to their
staff in the wake of having intranet electronic mails to finish the communication (Gennaioli,
Shleifer and Vishny, 2013). Usage of innovation is additionally upgraded in the wake of
utilizing messages in the Commonwealth bank of Australia to improve effectiveness in a
superior way.
Advantages of Information Technology in the Banking Sector of Australia:
The primary advances of the Information Technology for Australian financial part to
expel their protection and security issues are as follows:
 Communication Streamlining: The principal advantage of Information Technology
in CBA to guarantee information security is correspondence streamlining. An
appropriate correspondence is required for organization accomplishment inside the
associated and scattered business situation, choice of workers, utilizing or holding of
staff.
 Cost Effectiveness: One more advantage of IT in CBA is the cost effectiveness. It
does not cause tremendous costs identified with upkeep and usage of Information
technology as well as subsequently a wide range of administrative or operational
procedures are appropriately streamlined for picking up information esteem or
quality. It is even compelling for development of adaptability and income.

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 Storage of Valuable Data: The following advantage of IT in Commonwealth Bank
of Australia for ensuring information security is for storing and sheltered gatekeeper
the private or important information (Sullivan, 2013). The best possible conservation
and capacity of CBA's information technology is needed to guarantee budgetary
information are protected and verified. Security breaks could be effectively stayed
away from in this procedure.
Types of Risks:
 Security Risks: The different dangers identified with data security can in the end turn
out for being key dangers, for example, the huge potential towards higher harms for
brand notoriety. Such noteworthy sort of information security is incredibly useful for
legitimate prerequisite that the particular business for executing while finishing
security hazard appraisal. CBA must dispose of these issues adequately.
 Privacy Risks: Another risk, which is incredibly basic for CBA with respect to
Information Technology would be dangers identified with security (Borio, Drehmann
and Tsatsaronis, 2014). The outcomes, for example, individual information security
and consequent damage for protection. Such issues can bring serious issue for the
hierarchical frameworks.
Process to maintain and monitor IT in CBA:
Information technology can be maintained and monitor by CBA subsequent to
following probably the most significant advances, that are are:
Sequential Implementation: Steps that are followed in the sort of execution and
subsequently there is a successive methodology.

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Deployment of the Modifications that are identified: All distinguished modifications have
been being sent in this specific step.
Proper Review as well as Acceptance for the Maintenance: Reviewing ought to be done
appropriately and IT ought to be kept up intermittently.
Conclusion:
Thus, it can be concluded that there are some major significant effects and impacts of
the information technology on the business. The respective conditions of the working of
different individuals are altered eventually for the distinctive impacts as well as the
information technology have major responsibility for providing the businesses with an
important scope for the analysis of the data as well as also planning of all of the strategies of
the business effectively (Patil and Sherekar, 2013). The report that is provided above has
demonstrated properly about the analysis of the major significant impacts of the Information
Technology on Commonwealth Bank of Australia. The installation as well as the
maintenance of the Information technology on the business is suggested majorly for the bank.

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References:
Admati, A. and Hellwig, M., 2014. The Bankers' New Clothes: What's Wrong with Banking
and What to Do about It-Updated Edition. Princeton University Press.
Imam, P. and Kpodar, K., 2013. Islamic banking: how has it expanded?. Emerging Markets
Finance and Trade, 49(6), pp.112-137.
Banarescu, L., Bonial, C., Cai, S., Georgescu, M., Griffitt, K., Hermjakob, U., Knight, K.,
Koehn, P., Palmer, M. and Schneider, N., 2013, August. Abstract meaning representation for
sembanking. In Proceedings of the 7th Linguistic Annotation Workshop and Interoperability
with Discourse (pp. 178-186).
Chapman, S., 2013. The rise of merchant banking. Routledge.
Jiménez, G., Lopez, J.A. and Saurina, J., 2013. How does competition affect bank risk-
taking?. Journal of Financial stability, 9(2), pp.185-195.
Sullivan, S., 2013. Banking nature? The spectacular financialisation of environmental
conservation. Antipode, 45(1), pp.198-217.
Borio, C., Drehmann, M. and Tsatsaronis, K., 2014. Stress-testing macro stress testing: does
it live up to expectations?. Journal of Financial Stability, 12, pp.3-15.
Patil, T.R. and Sherekar, S.S., 2013. Performance analysis of Naive Bayes and J48
classification algorithm for data classification. International journal of computer science and
applications, 6(2), pp.256-261.
Gennaioli, N., Shleifer, A. and Vishny, R.W., 2013. A model of shadow banking. The Journal
of Finance, 68(4), pp.1331-1363.

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Gertler, M. and Kiyotaki, N., 2015. Banking, liquidity, and bank runs in an infinite horizon
economy. American Economic Review, 105(7), pp.2011-43.