Impact of Information Technology on Business: Ethical and Social Issues, Computer Networks, and Artificial Intelligence

This report discusses the impact of information technology on business, including its ethical and social issues, types of computer networks, and artificial intelligence. It uses HSBC Bank as an example to illustrate how IT can improve business operations.

INFORMATION TO
TECHNOLOGY

Contents
ABSTRACT.....................................................................................................................................3
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Literature review..............................................................................................................................1
Analysis and discussion...................................................................................................................2
Impact of IT on business......................................................................................................2
Ethical and social issues that pertain to running business...............................................3
Types of Computer Networks with their impact on businesses.......................................5
Artificial intelligence............................................................................................................6
Advantages and disadvantages of information technology.............................................................7
CONCLUSION................................................................................................................................8
References........................................................................................................................................9

ABSTRACT
Information technology in the modern world is becoming an essential part of human life.
Information technology brings the various aspects into the organization in an effective and
efficient way, such as: B. Big data analysis, cloud computing. It helps to reach more customers
and new products can be introduced. With the help of IT, management is able to make decisions
and deliver satisfactory results to customers that create the strong relationship. Many
organizations face social and ethical issues related to information technology such as privacy,
protection of information, etc. The computer network is where the information is stored and
shared, including the types of computer networks such as LAN, MAN, WAN. Artificial
intelligence plays a major role in the organization, as tasks are carried out efficiently and
communication is improved.

INTRODUCTION
Information technology defines the use of computers and telecommunications equipment
to store, transfer, retrieve and manipulate data in a company. The information technology
involves the use of computers where electronic data and information is exchanged, stored and
processed. It involves the use of network and additional storage devices to exchange all forms of
electronic data. In a business context, information technology is a computer system that includes
all hardware, software, and peripheral devices which large IT users operates. The technology
term refers to the skills, approaches, process and techniques utilised in organisation for the
technical investigation and manufacturing of goods & services. In the business world the
technology provides the importance in completing the assigned time in the efficient time frame
(Alsunaidi, S.J. and Alhaidari, F.A., 2019). The advancement of technology in the workplace
enhances corporate operations through storing and distributing information and data, as well as
using technology-driven tools. The report is based on the HSBC Bank which is British
multinational investment bank and holding company of financial services in UK. The HSBC in
65 countries it has around 3900 offices founded in 1865 by Sir Thomas Sutherland. This bank
deals in the asset management, banking commodities, insurance, investment banking and many
more. The report discusses the business impact of information technology with the implications
of social and ethical issues. It also discusses the types of computer networks and artificial
intelligence to improve business.
MAIN BODY
Literature review
In today's world, information technology is an essential tool for increasing the
competitiveness of the economy. By saving time, money and effort with the help of information
technology, the productivity of the company is increased efficiently. The use of information
technology is very important for the company when it comes to maintaining employee files, the
flow of data and the tracking of processes. According to the 2019 technology trends, information
technology is associated with computer technology, with the Internet as an example being
summarized under the umbrella term IT (Baker, R.M., 2019). Information technology consists of
networks, hardware and software, with the data being transmitted and processed by
implementing and designing the computer networks. According to ND century code, for the
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development and maintenance of the computer networks, systems, and software it requires the
use of services and supports infrastructure to manage the information. The application of voice,
data and video helps in delivering information. The IT comprises of three basic parts-
computational data processing, decision support and business software. It helps in developing
technical and business skills. The new and interesting jobs can be created such as web designers,
system analysers etc. with the help of information technology in the companies The information
is available to the business and customers 24*7 all over the globe through information
technology regarding the banking, products.
Analysis and discussion
Impact of IT on business
With the digitalization in the economy, the leveraging benefit of digital tools has
expanded to improve business prospects. The information technology increased various
innovations. The revolution of the technology increased the demand and the resources are
utilized efficiently in the business. With the help of information technology, the business
strategies are planned and data analysed, which move the HSBC bank to generate profits. In
modern times, the guidance for the use and development of technology is provided to the
company. In order to have great success and to work efficiently, the bank needs up-to-date
information so that it can process many customers, clients and other transactions. HSBC-Bank
makes online services available to customers that make work easier, accelerate and save all
information. The effects of IT on improving business operations are as follows:
 Cloud computing- The cloud computing concept is the most popular one that ensures
efficiency in business operations. Information technology is used to leverage the ability
to provide improved resources and time management for the organization. Good internet
and WIFI connectivity are required to do the job effectively. The cloud application
improves collaboration as different services are provided, in which practically different
groups meet to exchange information using shared storage (Capehart, B.L., 2020).
 Automation of business process- Information technology helps automate the business
process, increasing workflow and improving efficiency. The business process is
significantly accelerated and time that can be used for other tasks is saved. It reduces
operating costs. The business process activities consist of billing, collection of consumer
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data, tracking of metrics and monitoring of certain processes which can be easily
automated.
 Protection of information- To store the information there is a large data base as the
information is very valuable for business. Several issues are created in the business if
data is lost such as personal data, banking transactions because of this HSBC bank
requires information technology to keep the information safe. The right resources are
provided to store the information which helps in maximizing the protection. The limited
users are allowed to access the information through virtual storage system that is kept
safe hacking problem is reduced.
 Providing customer satisfaction- The Customer happiness and experience are critical
aspects of business. The key to buyer satisfaction is the strong customer experience and
availability which accommodates the client necessities. In the HSBC bank information
technology helps in communicating with customers to solve their problem. The bank
provides messaging services via email, social media, and other platforms. The growth of
the business depends on the happy customers. The several cloud-based communication
channels have improved customer experience (Chiang, H.T. and Chang, C.T., 2019).
Ethical and social issues that pertain to running business
The components of information technology are specified which can be used to store,
fetch and manipulate the information at minimum level by comprising server of operating
system. The application of the information technology is in wide area like education, health etc.
In the growth of the availability of the computer technology has caused the major shifts in the
society operators as internet facility is provided to access the unlimited information. The several
ethical and social issues are as under-
Ethical Issues
Personal privacy- In information technology, this is the important ethical problem for
the disclosure of information and the invasion of the privacy of every individual, since, due to
the proliferation of networks on a large scale, information and data transmissions take place in
large quantities. IT enables users to have their own software, hardware, operating systems and
software tools that are linked together to access the server over a network. Maintaining the
confidentiality and integrity of data is a major challenge for the IT company and organization in
connection with the HSBC bank (Farjon, D and et.al., 2019).
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Access rights- For IT and cyberspace, the right of access is becoming a high priority as
technology advances. The network on the Internet cannot be secured against unauthorized
access. E-commerce and the electronic payment system are amplified by the development of the
Internet, which organizations and government agencies are also faced with. The HSBC ban
provides various services such as online banking and mobile banking that can be problematic. To
determine whether the user is an intruder or an appropriate user, the intrusion detection system is
used.
Harmful actions- In computer ethics, the harmful actions define the negative
consequences or damage to IT such as loss of important information, loss of property, property
and undesirable effects. According to the principle of ethical behaviour, any outsider is
prohibited from using information technology that would result in loss for employees, users,
employers and the public. This action consists of deliberately destroying or modifying files and
programs, resulting in a loss of resources such as confidential information. In order to recover
from harmful actions, more time and effort is devoted to reducing the viruses from the computer
systems (Gettman, D. and et. Al., 2017).
Social Issues
Breakdown of communication - It is regarded as the social problem as most of the
people use their cell phones, computers, that breaks the communication and reduces the bond but
the digitalisation in the modern times the technology improves the life. In the household, the
portable devices provide access to information and entertainment, but lead to a lack of family
communication. HSBC Bank also lacks direct communication with customers, as they do their
banking online and visit fewer branches.
Identity theft- Fraud is another social problem in accessible computers and the Internet
as customer and employee personal information can be used by third parties for malicious
purposes to commit fraud through online transactions and other harmful activities. In order to
store the information of customers and employees, HSBC-Bank has used many data protection
sources in order to avoid fraud (Ghobakhloo, M., 2020).
Online banking- The online banking service is provided by the HSBC to the customers
to complete the transaction from their mobile phone. The online banking service is also a social
problem as it is sometimes unsafe to conduct banking transactions due to the high likelihood of
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cell phones or computer systems being hacked, which can lead to the theft of money and
personal information.
Computer Networks and their types with their impact on businesses
The computer network refers to the group of computers that share resources provided by
network nodes. Two or more computers are connected with the aim of transferring, sharing and
exchanging data and resources. The computer network includes the multiple devices to enable
communication between two different devices. The network devices include routers, switches,
hubs, and bridges, which are hardware and business applications, or operating systems are
software on the computer network. Depending on the size and purpose, different computer
networks are available (Kuang, W., 2018). The nodes like fiber optic wireless communication
connects the computer network to enable the exchange and communication of information. To
define communication as it is sent and received, the network follows the protocols that use the IP
address for each device. The various computer networks are-
LAN (Local area network)- It defines a group of computers that are linked to each other in a
small space like building, office, schools. Two or more personal computers are connected via a
communication medium with the aid of twisted pairs, coaxial cables, etc. The data transfer is
faster and offers higher security. This network is owned and managed privately. It consists of
both wireless and wired network. The impact of LAN on HSBC bank's business helps reduce
costs because it is inexpensive. The use of ethernet cables connects the devices and sets them up
easily using only internet services. Business productivity is improved and the security of
information is ensured with the username and password (Laraia, M., 2018).
MAN (Metropolitan area network)- It defines a network that covers a large geographic area to
form a larger network by connecting different LANs together. The authorities use MAN to
connect citizens and the private sector. It has a long range that can be used with flight booking,
college in a city, military, etc. The size of the MAN is smaller than the WAN, but larger than the
LAN. The effects of MAN on the business of HSBC-Bank establish the connection to the
computers via an internet connection in the metropolitan region that has been in operation for
many years. The local emails are sent faster as it is less expensive and the internet connection is
shared between users. This network also offers a high level of security for the company.
WAN (Wide area network)- It is a network which is extended over a large geographic area
such as states or countries through telephone line, satellite links, fibre optic cable. In the world
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the biggest WAN is internet which can be used in the fields of business, administration and
education. The size of network of WAN is bigger than the LAN and MAN. The great
establishment such as HSBC Bank uses the WAN for connecting various sites, remote
employees and data centres so that necessary information can be accessed and applications can
be run. The business impact of the WAN keeps the organization's traffic flowing through direct
communication, and the data is transferred between sites, providing security (Fortinet 2021).
Artificial intelligence
Artificial intelligence defines the simulation of human intelligence processes by
machines, especially computer systems. It is an intelligence that is demonstrated by machines as
opposed to the natural intelligence that is exhibited by humans. It helps in problem solving
related to the human mind. Artificial intelligence was founded as an academic discipline in 1965
(Leong, L.W and et.al., 2018). The goals of artificial intelligence include thinking, knowledge,
planning, learning, perception, etc. Artificial intelligence defines thinking like humans and
imitates their actions, which are programmed with machines. Artificial intelligence has the
ability to rationalize and action is taken to achieve the specific goal (Palgrave Macmillan,
Singapore.Nanni, L and et. Al., 2020). Artificial intelligence is machine learning that
automatically learns computer programs and adapts new data without human help. Artificial
intelligence has four approaches that think humanly, think humanly, act humanely, act rationally,
which leads to thought processes and deliberations. Artificial intelligence has a great importance
in providing the various possibilities for the business organization. The effects of artificial
intelligence on improving business operations are-
Time and money is saved- The machines work more efficiently rather than the human
begins as the machine of the artificial intelligence can be operated 24*7. In the working
reliability is provided without having the breakdown in the work. To complete or perform the
particular task the important notification is provided to the companies. Artificial intelligence
recognises a significant amount of data in a fraction of a second, allowing for faster decision-
making and the production of relevant data. Artificial intelligence (AI) technology saves time
and performs tasks more effectively than people. With the help of artificial intelligence, the
performance of HSBC banks is also improved because the machines do not require any break
and operate continually without being bored. (Pham, X.T and et.al., 2020).
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Business insights are generated to take smart decisions- In the modern economy, the
data is valuable for the business organization. The generation of data processing is quick and
efficient with the help of artificial intelligence, as answers can be given to questions that arise in
the company. In addition, AI machines also provide relevant predictions and analyse the right
needs of customers. AI technology is very fast compared to humans and perfect at making
predictive analytics.
Productivity is enhanced through artificial intelligence- When staff's to-do list is
reduced, focusing on excellence in what they do can make work more efficient. To do the job of
artificial intelligence, you do most of the work that doesn't require employees. Artificial
intelligence provides real-time support when companies are constantly involved in
communication with customers. At HSBC bank, the workload on employees is reduced, which
increases productivity by allowing employees to perform the tasks that they can efficiently do
(Prince, J.D., 2017).
Reducing errors- Artificial intelligence reduces errors as it provides more accurate results
compared to humans. The accuracy of artificial intelligence ranges from 99 to 100 percent.
Humans predict cash flow, which is time consuming, while artificial intelligence reduces errors
while predicting cash flow at the same time. Artificial intelligence technology helps increase
accuracy without manual intervention in predicting cash flow. The company has a high chance of
achieving success. In the HSBC Bank, the cash flow forecast is made with artificial intelligence,
which reduces errors and leads to higher opportunities and growth opportunities for the company
organization.
Advantages and disadvantages of information technology
The information technology benefits the HSBC bank in improving the services of business
as numerous online services can be avail and customers can make online transactions. The
communication is improved by exploiting the tool of electronic mail, phones etc which aids in
flow of information easily within the organisation. It helps in storing huge data and makes not as
much of paperwork which helps in saving the time. The customer relationship is improved in the
HSBC bank with the help of technology as it makes the customer aware by providing the
information related to products and services, online banking, investment banking, credit cards
etc. The competitive advantage of the business is improved with the help of technology (Rafique,
H and et.al., 2020).
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The disadvantages of information technology are, it is very luxurious in keeping the
technology in the organisation as huge of money and resources is required. The personal data is
collected through website of E-commerce by using cookies and suggest products based on
information. As most of the tasks are accomplished with the aid of technology, which leads to
unemployment and job insecurity. The business also has a security risk, as the data in the HSBC
bank can be hacked (Zheng, Q., Chen, L. and Burgos, D., 2018).
CONCLUSION
From the above report, it was concluded that information technology has a wide impact
on business, which with the help of technological advancement leads to innovation and success.
The organization maintains a separate IT department in which all important documents and files
are securely stored. Due to technological advances, the company is faced with several ethical and
social problems. The IT contains the computer network in which the information is transmitted
and shared via LAN, WAN, MAN. The computer network helps to share resources and connects
many computers. Artificial intelligence improves business processes that have their own
meaning in the workplace and tasks are carried out efficiently.
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