Holmes Institute - HC1041: IT Impact on Business - Report

This report provides a comprehensive analysis of the impact of Information Technology (IT) on Virgin Australia, an Australian-based airline. The report explores the necessity of IT for the airline's operations, emphasizing its role in customer satisfaction, operational efficiency, and overall business survival. It details the requirements for IT implementation, including costs, planning, design, equipment, installation, and training. The report further examines how Virgin Australia utilizes IT internally, such as for employees, and externally, for customers and suppliers. It highlights the benefits of IT, including improved profitability and flexibility, while also addressing potential risks like security, privacy, and confidentiality. Finally, the report discusses strategies for maintaining and monitoring IT systems within the organization. The report is based on the assignment brief provided by Holmes Institute Faculty of Higher Education, and it aims to provide a thorough understanding of how IT influences and shapes the business landscape of a major airline.

Information
technology in business

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
Does your chosen business need IT?.....................................................................................3
Why IT is important for business survival?...........................................................................3
What is required to apply IT into your chosen business?......................................................4
How does your chosen business use IT? (Internally such as employees, and externally such
as customers, suppliers).........................................................................................................5
What benefits and advantages does IT bring to your chosen business?................................5
What type of risks does IT bring to your chosen business?...................................................6
How can your chosen business maintain and monitor IT?....................................................6
CONCLUSION..........................................................................................................................7
REFERENCES...........................................................................................................................8

INTRODUCTION
In current time, the role of information technology is increasing continuously within
the business of different organisations (Akhter, 2017) . Information technology can be
defined as some of technical skills methods and process which are used in production of
goods and services as well as achieving the objectives of a business in a scientific way. In
this current report there is discussion about the use of information technology within virgin
Australia. It is Australian based airline which is largest airline by the fleet size to use the
virgin brand. This airline is dominating its market within Australia since September 2001
where currently serving in 42 cities of Australia from hubs in Melbourne and Sydney. In
relation to the current report, there is discussion about need of information technology in
Virgin Australia. There is also a discussion about the importance of information technology
in business survival as well as how to apply the information technology in the business. There
is also discussion about various aspects of information technology in relation to business
where the maintenance monitoring of it will also be discussed.
MAIN BODY
Does your chosen business need IT?
In current time, role of information technologies continuously increasing within
different business activities related to customer satisfaction, improvement in work
environment, management of culture and many more things. In relation to virgin Australia, it
is airline business organisation which is operating and domestic airlines within Australia. It is
necessary for the business to develop a proper information and technology system within the
form so that it can support its various activities related to customer management, operational
management and many more departments for bringing efficiency and improving the
profitability (Holotiu, Pisani and Moormann, 2017).
Information technology is necessary for Virgin Australia because in the current time it
is reading in domestic airline services where organisation is facing difficulties in managing
the customers as well as providing them effective services. This is because organisation
doesn't have a proper information system which also demoralizes a communication system of
the form and reduce the efficiency of each and every individual working within the firm.
Adoption of proper information technology system in virgin Australia, organisation can
easily from its activities as well as well as communication by managing the customers in an
appropriate way. This can be done by the organisation through the help of data storage
sharing of information and many other allied tools and techniques within information
technology (Kasemsap, 2018).
Why IT is important for business survival?
There are various benefits of information technology which are directly related to survival of
a business.
Information technology helps in solve complex problems: Information technology
is directly related to improvement within the hardware and software of the organisation
which help the organisation in getting in touch with the research starter analyse the data and

make plan related to the firm so that it can easily solve complex problems in an effective
way.
Helps in improving decision making ability: The major role of information
technology within business is to help in effective decision making by solid market research.
This is because engaging team through video conferencing weaving in public sentiment on
social media and industry forms will help organisation in customer service and customer
feedback which will minimise the negative impact of improper customer services and help
form in improving its customer services for taking effective decisions (Kitsios and
Kamariotou, 2016).
What is required to apply IT into your chosen business?
Cost: For development of information technology in Virgin stadium the total cost
which is required to be implemented is around 300000 Australian dollars. This includes
development of new communication system, software related to management of human
resources and airline traffic management system.
Planning: A proper planning system is required to execute the information
technology within the business where the change management process will be implemented
within the firm under this change management process there is use of unfreezing
implementation and freezing system so that change can be implemented effectively in a
planned manager. Planning is required to assign the roles and responsibility of each and every
individual in the process of implementation of information technology within the firm as well
as using it for achieving the goals and objectives.
Designing: Under the designing system organisation has to implement the cost of
$50,000. This is because designing process consists of various stages related to identification
of system software, requirements of the organisation, capability of new information
technology system, benefits of the system, addition required in organisation for using the
system and many other design related problems which are to be filled by the organisation for
achieving maximum satisfaction out of the information technology implementation (Laudon
and Traver, 2016)
Equipment: There is need of various equipment’s which are required to identify and
implement the information technology. A proper communication system is required within
the firm with personal computer on each and every desk of employees working within the
firm. There is also a requirement of a fast internet connection for which LAN system will be
used.
Installation: Installation process is the main part of implementation related to
information technology within the virgin Australia. Under the process of installation
organisation has to replace its old software and systems with new ones where a fully
functioning radar system which consists of handling air traffic more effectively will be
installed on different places and headquarters of the firm so that management of air traffic
can be done in effective way (Lindh and Nordman, 2017).

Training: Before installing the system within the organisation it is required that a
proper training and development session will be conducted to understand the working of the
software related to information technology within the firm. This is because organisation is
going to change its functions where a proper training and development session will be
conducted to provide information regarding different systems which are used by the
organisation and complications and handling of the situations will also be teach to each
employee so that function can be managed effectively.
How does your chosen business use IT? (Internally such as employees, and externally such as
customers, suppliers)
There are various stages of implementation of information technology within the
organisation virgin Australia. There are various sectors where the concept of information
technology will be implemented. All these are mentioned below:
 Employees: The new information system will directly impact on the employees
within virgin Australia, this is because the main purpose of new information system is
to lower the work burden from the employees where the use of database management
as well as proper system for airline traffic to reduce the casualties and chances of
error because of overload burden on employees is to be done. This is directly helpful
to the employees in reducing their work done as well as stay motivated and the job by
working in a fixed working schedule under a proper information technology
management system (Lou and Li, 2017).
 Suppliers: System is also favourable to the supplier of the organisation because
implementation of a proper information system will help the organisation increasing
the business because of better productivity and increased in revenue of the firm. This
also helps in increasing the state of suppliers within the organisation because by the
increment within the business of the firm suppliers business will also increase.
 Customer: Information technology also help the organisation in decreasing the
interest of customers within the firm because It helped the farm in improving its
services as well as quality of the services so that it can satisfy the needs and
requirements of customers as well as ensure their safety. This information technology
help in reducing the errors related to air traffic as well as have the form in improving
customer services which directly impact on the satisfaction level of customers as well
as help them in value in their money with this kind of purchasing the tickets of
organisation airlines services.
What benefits and advantages does IT bring to your chosen business?
Improve profitability: Use of information technology in virgin Australia will
directly improve the profitability of the organisation. This is because bringing information
technology within the air traffic management as well as customer satisfaction services will
help in improving customer services of the form as well as using responses in an appropriate
manner by saving the cost of the firm. Improvement in customer services will impact on the
sales of the products and services of the firm which will help the organisation and improving
its revenue and profitability.

Bring flexibility: Use of information technology organisation can also bring
flexibility within the working of the firm this is because bringing information technology will
reduce the burden from employees as well as decrease the chances of error related to manual
instructions. This also helps the organisation in managing a database which directly improve
the flexibility. This is because management of data provide information regarding various
past activities of the firm related to the customers as well as other functions and help in
bringing flexibility in operations of firm (Luftma, Lyytinen and Zvi, 2017).
What type of risks does IT bring to your chosen business?
There are different kind of risk which are related to the development of information
system and using it within the organisation. These risk are associated with various kind of
factors which are discussed below:
Security: Information system within the organisation is directly related to the
management of security which is the most prone in front of management while implementing
the information technology system within the firm. This is because, in the database of
information technology there are various kind of information which can be easily cleaned and
have by competitors of the organisation of the miscreants within the society which will also
consists of information regarding clients and customers of the firm and can be used
unethically. This will impact on the security of the organisation as well as reduce the
performance level.
Privacy: While implementing the concept of information technology within the
organisation with scope of privacy also get minimised within the firm. This is because by the
use of information technology organisation has to share its private information with the
software which can be misled by mystery and stood in the society competitors of the
organisation. This is because it is useful information which can be useful for the suppliers and
competitors to bargain with the organisation identify the strategies and policies of the form
within the market (Mithas and Rust, 2016).
Confidentiality: Use of information technology will also bring it to the
confidentiality of the organisation because organisation has to store confidential information
within the information system and its database which is risky for the firm because of it’s
related to damage or theft of data.
These are some rest visit which are directly associated with bringing information technology
within virgin Australia and can impact on the performance of the firm.
How can your chosen business maintain and monitor IT?
Monitoring can be defined as a continuous activity which has to be done by the
management of the organisation. It is mandatory for the form to use a proper monitoring
system so that it can achieve effectiveness within the information technology system and
identify the needs and requirements of the Virgin Australia. Proper monitoring process which
can be used by the organisation is mentioned below:

Analysing it in real time: it is must in monitoring process show that organisation
continuously monitor without delays for increasing the efficiency of a monitoring program or
software which is used by the firm in information technology (Pan and Seow, 2016).
System alert: happening of a particular event related to notification of a information
system which are used by the organisation. Effective stage monitoring system where the
management related to information system has to trigger all the items and configurations by
managing the system alerts in an effective way.
CONCLUSION
It can be concluded from the above mentioned information that there are various
functions which has to be performed by the firm before implementing a new information
technology system as well as achieving the maximum benefits. In relation to virgin airline
there is various kinds of benefits which can be used by the organisation by while
implementing the information technology system. It is also concluded that there are various
risk involved in implementation of information technology which can be minimised by the
firm with the help of effective management.

REFERENCES
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Kasemsap, K., 2018. The role of information system within enterprise architecture and their
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alignment between business and service innovation strategy on service innovation
performance. In 2016 International Conference on Industrial Engineering,
Management Science and Application (ICIMSA) (pp. 1-5). IEEE.
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business relationships: the mediating effect of business development. Journal of
Business & Industrial Marketing.
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Luftman, J., Lyytinen, K. and Zvi, T.B., 2017. Enhancing the measurement of information
technology (IT) business alignment and its influence on company
performance. Journal of Information Technology, 32(1), pp.26-46.
Mithas, S. and Rust, R.T., 2016. How information technology strategy and investments
influence firm performance: Conjecture and empirical evidence. Mis
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Pan, G. and Seow, P.S., 2016. Preparing accounting graduates for digital revolution: A
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development. Journal of Education for business, 91(3), pp.166-175.