Impact of Information Technology on Business: CBA

This report discusses the impact of information technology on Commonwealth Bank of Australia (CBA) and its importance for business survival. It also explores the benefits and risks of IT in the banking sector and provides recommendations for CBA to address security breaches.

Running head: IT IMPACT ON BUSINESS
Impact of Information Technology on Business: CBA
Name of the Student
Name of the University
Author’s Note:

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Executive Summary
The main aim of this report is to understand impact of IT in a banking organization,
Commonwealth Bank of Australia. Few organizations use information technology for
transaction processing, however others allow suppliers, distributors and customers in
interacting with the company via several distinctive systems of communication technology
like Internet. By information digitization, businesses leverage the advantages of few digital
tools for the core purpose of improving the prospects. The entire process is turned into
complete success due to these impacts. This report has clearly described about impact of IT in
CBA after researching about a security breach in this bank.

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Table of Contents
1. Introduction............................................................................................................................3
2. Discussion..............................................................................................................................3
2.1 Requirement of IT in Commonwealth Bank of Australia................................................3
2.2 Importance of IT for Business Survival...........................................................................3
2.3 Requirement for applying IT into CBA...........................................................................4
2.4 Process of CBA using IT..................................................................................................5
2.5 Benefits and Advantages of IT in Banking Sector...........................................................6
2.6 Type of Risks in IT for Commonwealth Bank of Australia.............................................7
2.7 Process of CBA maintaining and monitoring IT..............................................................8
3. Conclusion and Relevant Recommendation..........................................................................8
References................................................................................................................................10
Appendix..................................................................................................................................12

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1. Introduction
The systems of information technology are being utilized by organizations for
performing several tasks. There are several distinctive impacts of this information technology
within an organization, like flow of information, decision support, processing of transactions,
and management of data, executive support and many more (Schwalbe 2015). This following
report outlines a proper discussion over the impact of IT on Commonwealth Bank of
Australia. Various details such as importance of IT, applying IT into the business, benefits
and risks of IT in CBA and many more will also be mentioned in the report.
2. Discussion
2.1 Requirement of IT in Commonwealth Bank of Australia
CBA or Commonwealth Bank of Australia has eventually become one of the most
important banks and highly competitive environment in the entire banking sector of
Australia. It has a flexible structure, which could respond promptly for enhancement of a fast
changing market. Information technology is extremely important for this particular bank for
some of the major reasons (Dutta, Geiger and Lanvin 2015). IT in CBA will be responsible
for increasing production after reduction of time by automating tasks. Communication is
improved with the help of certain tools of technology such as electronic mails, video
conferencing and phone calls. The movement of information within the respective banking
sector of Australia is quite important for making any kind of change and also for
incrementing efficiency in business operations. Interconnectivity in the entire external and
internal structure (Holtshouse 2013). Moreover, CBA will be able to improve the data storage
and manage their files efficiently.

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2.2 Importance of IT for Business Survival
Information technology plays one of the major roles in a business for ensuring
business survival. This type of technology is the proper utilization of systems to efficiently
store, retrieve as well as send information (Bilbao-Osorio, Dutta and Lanvin 2013). It even
involves applications, hardware and software for executing all the business related operations
or processes. Software and computers are being used for maintaining a steady balance
between business objectives and achievements (See Appendix). Moreover, it even keeps a
stability within supply and demand of the business and thus making sure that all the
customers are satisfied with the banking applications and products and services (Marchewka
2014). Since, the banking sector ensures about safe and secured online transactions, the
subsequent technologies and networks must be secured and should be free from threats and
vulnerabilities.
These businesses can easily run a quick credit check on the banking systems for
making it much easier to open credit. Security and privacy of data is also ensured with this
specific technology. Moreover, there is a constant requirement of banking services for each
and every customer throughout the world, it is quite important for CBA to implement
information technology for allowing better communication (Dahlstrom, Walker and Dziuban
2013). The businesses have eventually become extremely cost effective for themselves by
simply streamlining the processes to increase the productivity. Hence, greater profits are
possible that would allow Commonwealth Bank of Australia to be in reach of customers for
24*7. This is also required for business survival and the customers can easily gain major
competitive advantages.
2.3 Requirement for applying IT into CBA
Commonwealth Bank of Australia requires to apply IT in their business for ensuring
data security and privacy. In May 2018, the banking officials of CBA confirmed that they

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have lost more than 20 million accounts, however they insisted that the account security of
their customers were not being compromised (ABC.net.au. 2018). The statements that
comprised of several details of customer from about 16 years, were eventually kept on
magnetic tapes that were supposed to be completely demolished by Fuji Xerox after proper
withdrawing the respective data centre. This particular bank ordered investigation of figuring
out the entire process of storing the statements for two magnetic tapes (Schwalbe 2015).
Although, they did not share this information with their customers, this particular data
security and privacy breach became a major issue for the popularity of Commonwealth Bank
of Australia.
Since they have faced issues with security breach, the successful application of
information technology has a major impact on reducing the complexities to a high level and
maintaining data security with better efficiency (Holtshouse 2013). The bank defended good
decisions for not informing their customers about fraudulent activities or actions. They would
have the ability of improving their data storage and data reporting and analysis. Since
communication would be improvised by technology, the various security and privacy
breaches would be eradicated. Better cost and planning is required for effective designing and
application of IT in CBA. Moreover, they require to design as well as install the equipment
for completion of this type of application (Bloom et al. 2014). Effective training is also
needed for each and every employee of the organization to understand the proper application
of information technology.
2.4 Process of CBA using IT
CBA would be utilizing information technology by some of the most useful and
effective methods and make their business processes or operations much more efficient. The
transfer of information is possible for making proper decisions and hence ensuring that the
flow of information is proper and also determining the growth of business (Kellermann and

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Jones 2013). The respective business owners require better communication with the
customers on time and they even require to communicate to the investors as well as business
partners for communicating on a regular basis. Sharepoint or Intranet Network are being
utilized for maintaining better efficiency in the business. Business exchange information is
easily shared with the employees by having intranet emails that are utilized for
communication at work. The bank manager of CBA could easily and promptly draft a
message and then send it to his or her employees through intranet networks. CBA even
allows the employees using same network for sharing information within the business. The
information hence gets protected and helps to facilitate a proper information flow (Andrade
and Doolin 2016). The technology use is also being enhanced by utilization of electronic mail
communications within Commonwealth Bank of Australia and thus efficiency is being
enhanced to a high level.
2.5 Benefits and Advantages of IT in Banking Sector
There are few of the major and the most important or benefits of IT within CBA for
eradicating the security and privacy issues. These advantages are as follows:
i) Streamlining of Communication: It is an important advantage of information
technology within CBA for ensuring security of data (Robey, Anderson and Raymond 2013).
An efficient communication is required for success of the company and in the most dispersed
and connected business landscape, employee recruitment, retaining and leveraging of
employees would need an ongoing communication or collaboration (Dutta, Geiger and
Lanvin 2015). Both internal and external communication is being streamlined for eradicating
the issues related to data security.
ii) Facilitation of Strategic Thinking: The second important and significant
advantage of information technology within CBA for ensuring security of data is effective

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facilitation of strategic thinking (Von Solms and Van Niekerk 2013). This is highly required
for enhancement of competitive advantage within the market place after effective facilitation
of knowledge transfer and also strategic thinking. The social networks could be both accessed
and leveraged and they have enabled the organizations with the core capability of assembling,
interpreting and also transferring the confidential information.
iii) Storing and Safeguarding of Valuable Information: The third vital or
noteworthy advantage of information technology within CBA for ensuring security of data
would be storing as well as safeguarding of valuable and confidential information. A proper
storage, preservation or the better maintenance of banking sector like Commonwealth Bank
of Australia is extremely necessary for the business, which should store or safeguard the
confidential information like financial data for subsequent longer period of time (Ullah and
Lai 2013). This particular technology could easily and promptly afford the organizations in
storing or sharing of files for later utilization and hence securing data and avoiding of
security breaches for future use.
iv) Reduction of Costs: Although, information technology is extremely expensive for
implementation, the maintenance of this technology is much more effective and helps in data
security by providing several advantages to the business of Commonwealth Bank of Australia
in a better manner. The managerial and operational procedures are streamlined effectively
and thus enabling the bank to gain data value and quality and thus revenue and flexibility are
improved.
2.6 Type of Risks in IT for Commonwealth Bank of Australia
There are few popular and substantial types of risks within IT for CBA and these are
given below:

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i) Security: The first type of risk in IT in Commonwealth Bank of Australia is security
risk (Tarafdar et al. 2015). The information security risks could even turn out to be strategic
risks like the core potential for excessive damage of brand reputation. This type of
information security helps in effective requirement, which the businesses complete during a
security risk assessment. As CBA has already faced security breach, it is required to eradicate
such issues.
ii) Privacy: The second type of risk that is common for IT is privacy risk. This type of
risk comprises of some of the major consequences within the company like perceived harm to
privacy as well as security of personal data. Privacy harms are being perceived and thus CBA
should consider these issues efficiently.
iii) Confidentiality: When the data loses confidentiality, it is evident that this
confidential data might suffer from limiting of information access and others getting access
of that data (Bloom et al. 2014). Thus, CBA should take necessary actions in terms of saving
data confidentiality.
2.7 Process of CBA maintaining and monitoring IT
CBA can maintain and monitor IT by implementing few important and noteworthy
activities and these steps are as follows:
i) Procedural Implementation.
ii) Proper Analysis of Issues and Modifications.
iii) Modifications Deployment.
iv) Reviewing or Accepting Maintenance.

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3. Conclusion and Relevant Recommendation
Therefore, it could be concluded that IT comprises of few major and significant
impacts on businesses. The several individuals’ working conditions are being changed for
such impacts and information technology is responsible for providing the businesses with the
major scope of analysis of data and even planning of the respective business strategies in a
proper manner. The rise of information technology has eventually paved the way for several
innovations. This above report has effectively outlined the detailed analysis of major impacts
on Commonwealth Bank of Australia with relevant details. It is highly recommended for
CBA to implement IT in their business for eliminating all categories of issues and
complexities related to security breaches.

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References
ABC.net.au. 2018. [online]. Accessed from
https://www.abc.net.au/news/2018-05-02/commonwealth-bank-confirms-loss-financial-
records-20m-customers/9720928 [Accessed on 13 May 2019].
Andrade, A.D. and Doolin, B., 2016. Information and communication technology and the
social inclusion of refugees. Mis Quarterly, 40(2), pp.405-416.
Bilbao-Osorio, B., Dutta, S. and Lanvin, B., 2013, April. The global information technology
report 2013. In World Economic Forum (pp. 1-383).
Bloom, N., Garicano, L., Sadun, R. and Van Reenen, J., 2014. The distinct effects of
information technology and communication technology on firm organization. Management
Science, 60(12), pp.2859-2885.
Dahlstrom, E., Walker, J.D. and Dziuban, C., 2013. ECAR study of undergraduate students
and information technology(p. 2013). 2013.
Dutta, S., Geiger, T. and Lanvin, B., 2015. The global information technology report 2015.
In World Economic Forum(Vol. 1, No. 1, pp. P80-85).
Holtshouse, D.K., 2013. Information technology for knowledge management. Springer
Science & Business Media.
Kellermann, A.L. and Jones, S.S., 2013. What it will take to achieve the as-yet-unfulfilled
promises of health information technology. Health affairs, 32(1), pp.63-68.
Marchewka, J.T., 2014. Information technology project management. John Wiley & Sons.

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Robey, D., Anderson, C. and Raymond, B., 2013. Information technology, materiality, and
organizational change: A professional odyssey. Journal of the Association for Information
Systems, 14(7), p.1.
Schwalbe, K., 2015. Information technology project management. Cengage Learning.
Tarafdar, M., DArcy, J., Turel, O. and Gupta, A., 2015. The dark side of information
technology. MIT Sloan Management Review, 56(2), p.61.
Ullah, A. and Lai, R., 2013. A systematic review of business and information technology
alignment. ACM Transactions on Management Information Systems (TMIS), 4(1), p.4.
Von Solms, R. and Van Niekerk, J., 2013. From information security to cyber
security. computers & security, 38, pp.97-102.

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Appendix
Impact of IT