CFPBUS003 - Introduction to Information Technology Report 2022

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IT Write Up
CFPBUS003 - Introduction to Information Technology
(Student Details: )
10/2/2019

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Abstract
This research report is based on research about IT role in management and operations of a
well-known banking institution as Standard Chartered Bank (SCB). As we know that
21st century has brought an all-embracing convergence of communications, computing,
information, as well as knowledge for all of us. In this way, information technology is going
to radically evolve the way we work, live, and think. In this context, the development of high-
speed networks is making possible applications undreamed of in the past. In near future, data,
voice, images, as well as videos will be transferred worldwide in microseconds. Thus, an
explosion of information technology is completely changing the banking industry from paper
and branch banks to digitized as well as networked banking services. IT has changed the
internal accounting and management systems of SCB. IT is fundamentally changing the
delivery systems banks utilise to interact with their customers. It has been found that finding
a technological solution while meeting the challenges of a rapidly-changing environment has
become a huge challenge for the modern financial institutes and banks. It has been observed
that IT being a novel technology is bringing the positive things for banking industry. In this
way, it can be said that SCB with the capability of investing and integrating IT will surely
dominate its competitors in the highly competitive global market. Therefore, based on
research conducted in this paper it has been revealed that bankers are convinced that
investing in IT is critically important and essential.

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Contents
Abstract......................................................................................................................................1
Introduction to Information Technology: Standard Chartered Bank.........................................3
Introduction................................................................................................................................3
Literature review........................................................................................................................3
Role of IT in the success of SCB...........................................................................................4
Social and ethical issues in IT................................................................................................4
Ethical issues for running SCB business............................................................................5
Social issues for running SCB business.............................................................................5
Types of networking technologies.........................................................................................5
LAN: Local Area Network.................................................................................................6
WAN: Wide Area Network................................................................................................7
Other Networks..................................................................................................................7
Analysis and discussion.............................................................................................................7
Importance of Intranet and Internet in SCB business............................................................7
Appreciation of the growth in ICT and use and effects of the Internet..................................8
The role of IT in management at SCB...................................................................................8
For the SCB consumers......................................................................................................9
For the SCB........................................................................................................................9
For the SCB employees......................................................................................................9
The different stages of systems-development......................................................................10
Conclusion................................................................................................................................11
References................................................................................................................................12

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Introduction to Information Technology: Standard Chartered Bank
Introduction
This research report is focused on demonstrating Introduction to Information Technology
(IT) in different service organizations for management and other purposes. As we know that
IT and its application to global businesses in this digital world is the key requirement for
surviving as well as succeeding today. In general, IT always plays a vital role in every aspect
of contemporary millennial life. It has been found that IT enhances productivity of an
organization while improving overall efficiency, time, and money as well as saving efforts
and thereby maximizing organizational assets. To do so, a well-known organization in the
service sector has been chosen so that IT role in management in such modern organizations
can be easily demonstrated (Karjaluoto et al., 2010). Specifically, Banking Sector (BS)
Company as Standard Chartered Bank (SCB) has been selected for writing this research
report (Information Age, 2018). In this context, internet research on the chosen organization
will be conducted while providing an analysis of relevant academic journals and books.
Besides, the role of IT in the success of SCB will be identified effectively. In this context,
this research will find social and ethical issues that pertain to modern running businesses.
Moreover, identification, as well as differentiation among many types of networking
technologies, will be demonstrated. While discussing above, this paper will highlight the
importance of internet and intranet in chosen business of SCB. Lastly, this research
discussion will provide concise summary while listing and explaining the different stages of
system development life cycle (SDLC).
Literature review
In this section, a detailed discussion about how IT is useful for BS and specifically SCB from
different perspectives like management, operations, and innovation in the modern business
world. As we know that IT plays key role in this modern world for every possible growth and
development in positive direction. However, IT poses some key risks such as cyber-security
while providing fast and quality operations to the banks or financial institutions yet it has
become essential now.

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As mentioned by (Agwu et al., 2017), IT is the power behind global banking operations. It
has been found that SCB conceives design as well as developing ideas with innovative
technological solutions that protect millions of SCB customers and thereby lead the globe
within digital banking. The SCB and any other top bank of the world are offering digital
banking for executing quality international transactions and security as well. It has become
essential for our lives to use digital banking every day. In this way, IT is clearly redefining
the future of the whole banking sector so as the SCB’s future in finance field (Banerji et al.,
2010).
Role of IT in the success of SCB
Based on (Banerji et al., 2010), IT is having huge impacts on the service and operations of
SCB. Moreover, SCB is supporting businesses all across the world while delivering
innovative business solutions end-to-end with the help of technology and its applications. It is
narrated that SCB is technology-driven as well as underpinned by IT operational excellence
for ensuring excellent results for its consumers and global clients with the help of game-
changing innovation. IT-enabled the bank to work collaboratively within a control-centric
competitive business environment worldwide. According to (Carey, 2017), UK banks are
continuously using information technologies in the form of media and their telecom teams in
order to offer a great experience, insights as well as banking solutions. Thus, technology
allows UK banks like SCB to help forward-looking global businesses to stay ahead among
their competitors. At some point in time, it seems like IT is the backbone of financial system
of SCB as it solves many challenges of banking sector. IT helped SCB to create an efficient
banking system. With the help of IT, SCB could respond suitably to the initial as well as
changed needs of growing economies. It is evident that IT has played a huge role in the
success of SCB as the use of mobile banking, tele-banking, ATMs, net-banking, credit-cards,
debit-cards, e-payment systems have been enabled for the global SCB users with IT only. As
we know that electronic payment systems do exist at SCB business operations with those of
data mining and data warehousing solutions, hence IT plays a key role in SCB banking
operations and services worldwide (Vijayasri, 2013). In this way, role of IT is well-explained
with all of the above examples for bringing enhancements in customer service quality. In
addition, IT also enables fast processing of SCB’s banking operations which ultimately allow
the bank to lead the UK finance industry.

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Social and ethical issues in IT
Although IT uses in the banking industry and SCB is the best possible solution towards
hundreds of banking problems, yet it is necessary to understand social and ethical issues that
IT poses for SCB (Yee-Loong et al., 2010). There could be number of risks that IT can pose
to a bank like SCB, some of those risks are ethical and social risks. In this context, ethical
issues and social issues that pertain to running businesses are listed below.
Ethical issues for running SCB business
 Ethical standards must be followed by the banking firm when using IT for different
banking operations worldwide (Vijayasri, 2013).
 Issues such as certificate authority risk, money laundering and non-protection of
customer privacy can be considered as the ethical issues rose by IT for SCB
 In the electronic cash system, when the system crashes, the stored money over a PC
could be lost forever
 Growth control is required as it may lead to confusion and inefficient situations
Social issues for running SCB business
There are so many social issues which are arising while running the SCB business presently.
For instance, smart card technology which allowed users to have multipurpose cards is posing
an issue for the global society. In this context, technology in the chip must allow secure
remote transactions. As we know that security systems for smart cards are sophisticated than
those in magnetic bands, hence there is a security disadvantage. As a social issue, there is no
checking made with a remote system every time a smart card transaction which is
problematic for society people (Schultz, 2009) (Yee-Loong et al., 2010). Therefore, the
following issues can be seen as the social issues which pertain to running SCB business:
 Forgery
 Loss recovery
 Data protection
 Tax evasion
 Damage to innocent consumers
 Counterfeiters (Stawnicza, 2014).
 Privacy with smart cards as well as at the internet level

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Types of networking technologies
In this context, network technology is the kind of cabling equipment which is often utilised to
form a LAN. Here, LAN is termed as a local area network. In other words, each network
technology usually designed to execute with a specific kind of network topology as every
network technology has some standard features (Panicker & Seshadri, 2013).
The different types of networking technologies are categorized on the basis of their scale and
scope for different businesses. In this context, some common types of area networks are as
follows:
 LAN
 PAN
 WAN
 CAN
 WLAN
 SAN
Out of all the above-mentioned networking technologies, WAN and LAN are the two chief
and best-known groups of area networks, where the others have emerged with their
technology advances (Sassi & Goaied, 2013).
LAN: Local Area Network
This networking technology connects network devices all over a comparatively short
distance. In other words, when both the sender and receiver are present in the same building

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then this networked building often contains a LAN. However, sometimes a single building
may contain few small LANs, for example, one LAN per room. Contrary, a single LAN is
able to span a group of nearby buildings. In the context of TCP/IP networking, single LAN is
used and implemented as a sole IP subnet (Delony, 2017). It has been found that LANs
technologies are typically owned, controlled as well as managed with a single individual or
we can say firmly. Apart from this, LANs are tending to utilise specific connectivity
technologies mainly Token Ring and Ethernet (Delony, 2017).
WAN: Wide Area Network
As mentioned by (Delony, 2017), WAN networking technologies span a huge physical
distance. As the name suggests, the internet can be seen as the biggest WAN, which is
spanning the earth (Sassi & Goaied, 2013). It has been found that WANs are the
geographically-dispersed collection of the LANs. In this way, a networked device which is
called a router linked several LANs to a WAN. On the other hand, in IP networking, this
router also maintains both a WAN address and a LAN address. In addition to that, it is clear
that WAN technology differs a lot from a LAN. Here, most of the WANs are not owned by a
single organization but rather exist under distributed or collective ownership as well as
management. In this way, this type of network technology as WANs is tending to use
technology such as X.25, ATM and Frame Relay for connectivity all across the longer
distances (Delony, 2017).
Other Networks
Other than WAN and LAN, there are some more important networking technologies, which
are as follows:
 Wireless LAN
 Metropolitan area network
 Personal area network
 Campus area network
 System area network
 Storage area network (Delony, 2017).

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Analysis and discussion
Importance of Intranet and Internet in SCB business
Internet Uses for SCB
For SCB, the Internet helps businesses while unlocking opportunities for information
retrieval, communications, networking, marketing, as well as sales. In this context, SCB can
also utilise the Internet for selling their products to aloof clients (Lister, 2018). SCB can also
utilise the Internet for gathering info and interact with customers, government, clients, and
other members of the relevant industry, while building awareness of the operational market.
SCB may also use the Internet for internal communications and other electronic activities,
which several small industries do in lieu of emerging their own networks (Information Age,
2018).
Intranet Practices for SCB
Appreciation of the growth in ICT and use and effects of the Internet
Post conducting an analysis of IT, ICT and digital platform usage for modern businesses like
banking with the help of internet, it has been found that IT is successively emerging as a
powerful and invaluable tool (The Economic Times, 2018). The ICT and IT both as an
emerging tool are driving development, promoting innovation, enhancing competitiveness
and supporting growth as well. The world is actually appreciating the growth of ICT and IT
for backing sector as it is offering great opportunities for developing as well as developed
nations for leapfrogging initial stages of development. There are countless pieces of evidence
that show that IT is emerging as an increasingly strong tool for global businesses,
government, and civil society (Yao, 2018).

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The role of IT in management at SCB
The research and analysis conducted for writing this research report are suggesting that
positive changes caused by the novel technologies are enormously useful. The IT usage at
SCB is affecting employees, officers, and consumers of the bank (Farhadi et al., 2012).
Moreover, IT applications for SCB can be further divided into three main categories include:
For the SCB consumers
IT is helping the SCB for meeting and thereby exceeding their consumers’ demand for novel
services as well as plans for making them available for the world (Khraim et al., 2011). IT is
continuously increasing the competition level and thereby allowing SCB to integrate these
new technologies for satisfying the customers. The core IT applications for SCB from the
consumers’ perspective can be as follows:
 Self-inquiry facility
 Electronic banking
 Anytime banking
 Telebanking (Delony, 2017).
 Remote banking
For the SCB
It has been found that, during the previous decade, SCB has applied IT to a broad range of
front and back-office operations apart from that big number of novel banking products
(Clickatell, 2017). In this way, key advantages of the IT usage for the SCB are as follows:
 Quick and updated information transmission allowing effective and fast decisions as
IT interconnects controlling offices with computerized branches.
 At SCB, there is a great availability of wide-range of inquiry facilities as IT assists the
SCB into business development processes
 IT is enabling an immediate response to SCB consumer queries
 IT has enabled SCB for the generation of many MIS reports as well as periodical
returns before due dates (Banerji et al., 2010).
For the SCB employees
From the employees’ perspective, IT usage and implementation at SCB has considerably
enhanced their productivity with the help of followings:

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 Avoidance of duplicate entries with single-point data entry
 The signature retrieval IT facility which assists in transaction verification
 Automatic printing of important banking documents
 Accurate computing of difficult and time consuming job functions like interest
calculation and creating balance sheets (Yao, 2018).
The different stages of systems-development
The system development life cycle (SDLC) mostly allows users for transforming a freshly-
developed project into a functional one. Here, SDLC is a multi-step iterative procedure which
is typically structured in a methodical manner. The seven stages of SDLC are as follows:
 Stage I: Planning
 Stage II: System analysis and needs
 Stage III: System designing
 Stage IV: Development
 Stage V: Testing and integration
 Stage VI: Implementation (Agwu et al., 2017).
 Stage VII: Operation and Maintenance

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Conclusion
In whole, the research conducted on introduction to information technology for service sector
industry like banking sector has been revealed the importance of IT for banking and
management at the Standard Chartered Bank headquartered United Kingdom. This research
of the banking literature revealed that banks are rapidly moving to take leverage of current
and novel customer service as well as cost-reduction opportunities which IT offers. In this
way, core structure of the SC bank is increasingly evolving in a positive way with the use of
technology and innovation. It has been found that understanding computing terminologies is
most necessary for conducting such useful internet research on IT. In addition, many social,
as well as ethical issues associated with IT, have been identified successfully. In a nutshell,
this discussion has successfully appreciated the growth in ICT as well as use of the internet
with its impacts on business.

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References
Agwu, E., Okpara, A., Aigbiremolen, M. & Lyoha, F., 2017. The Impact of Information
Communication Technologies in the Strategic Management of Financial Institutions.
International Review of Management and Business Research, 3(3), pp.10-15.
Banerji, A., Mahtani, S., Sealy, R. & Vinnicombe, S., 2010. Standard Chartered Bank:
women on corporate boards in India 2010.
Carey, S., 2017. How technology will transform banking in 2018: open banking, GDPR and
robo advice. [Online] Available at: https://www.computerworld.com/article/3427610/how-
technology-will-transform-banking-in-2018--open-banking--gdpr-and-robo-advice.html
[Accessed 2019].
Clickatell, 2017. Trends in artificial intelligence technology. [Online] Available at:
https://www.clickatell.com/articles/technology/trends-artificial-intelligence-technology/
[Accessed 25 September 2018].
Clodfelter, R., 2010. Biometric technology in retailing: Will consumers accept fingerprint
authentication? Journal of Retailing and Consumer Services, 17(3), pp.181-88.
Delony, D., 2017. LAN WAN PAN MAN: Learn the Differences Between These Network
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overview-of-network-types [Accessed 01 October 2018].
Farhadi, M., Ismail, R. & Fooladi, M., 2012. Information and communication technology use
and economic growth. PLoS one, 7(11), p.e48903.
Information Age, 2018. How technology is impacting the finance and banking sector.
[Online] Available at: https://www.information-age.com/technology-finance-banking-sector-
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Karjaluoto, H., Laukkanen, T. & Kiveniemi, V., 2010. The role of information in mobile
banking resistance. International journal of bank marketing.
Khraim, H., Al Shoubaki, Y. & Khraim, A., 2011. Factors affecting Jordanian consumers'
adoption of mobile banking services. International Journal of Business and Social Science,
2(20).

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Lister, J., 2018. The Effects of Technology on Work Ethics. [Online] Available at:
https://smallbusiness.chron.com/effects-technology-work-ethics-18716.html [Accessed 31
March 2019].
Panicker, S. & Seshadri, V., 2013. Devising a balanced scorecard to determine Standard
Chartered Bank's Performance: A case Study. International journal of business reserach and
devlopment, 2(2).
Sassi, S. & Goaied, M., 2013. Financial development, ICT diffusion and economic growth:
Lessons from MENA region. Telecommunication Policy, 37(4-5), pp.252-61.
Schultz, R.A., 2009. Contemporary issues in ethics and information technology. Ed. ed.
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Stawnicza, O., 2014. Information and communication technologies–creating oneness in
globally distributed IT project teams. Procedia Technology, 16, pp.1057-64.
The Economic Times, 2018. 5 simple tips to keep your business secure from cyberattacks.
[Online] Available at:
https://economictimes.indiatimes.com/small-biz/security-tech/security/5-simple-tips-to-keep-
your-business-secure-from-cyberattacks/articleshow/64568063.cms [Accessed 12 October
2018].
Vijayasri, G.V., 2013. The Importance of International Trade in the World. International
Journal of Marketing, Financial Services and Management Research, 2(9), pp.111-19.
Yao, R., 2018. The Evolution of Payments & What It Means For Financial Services. [Online]
Available at: https://medium.com/ipg-media-lab/the-evolution-of-payments-what-it-means-
for-financial-services-97e918915a72 [Accessed 2019].
Yee-Loong, C., Ooi, K., Lin, B. & Tan, B., 2010. Online banking adoption: an empirical
analysis. International Journal of bank marketing, 28(4), pp.267-87.