Importance of Information Technology in Business: A Case Study of Barclay's Bank

This report discusses the role of information technology in the success or failure of Barclay's bank, ethical and social issues in running businesses, different types of networking technologies, the importance of intranet and internet in business, and the stages of system development life cycle.

Report

ABSTRACT
This report is based on importance of Information technology for a business and influence it
have the practices performed by them. For performing this report Barclay’s bank has been taken
into consideration which comes under top bank throughout the world. With the advancement of
technology, the way of performing work and offering services within banking also get enhanced
as a result of which consumers expectation toward the organisations in term of delivering quality
services has also get increased. In addition to this it also involves negative consequences like
getting unauthorised access to internet account of customers using several techniques in order to
stolen the confidential information of customers for gaining huge profit or extracting the fund
available in their banking account. These issues are mainly tackled with the help of several
security measures available over internet so that secure medium can be adopted to deliver best
access to services. Hence, IT integration within a bank plays a crucial role in term of delivering
effective services. The information technology within the operations as well as functioning of
Barclay's bank plays a crucial role within growth and success of a bank.
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Contents
ABSTRACT....................................................................................................................................1
INTRODUCTION...........................................................................................................................3
LITERATURE REVIEW................................................................................................................3
Role of IT in success or failure of Barclay's bank: -....................................................................3
Ethical and social issues that pertain to running businesses,.......................................................4
Differentiate between different types of networking technologies..............................................5
The importance of Intranet and Internet in your business,..........................................................6
Different stage of system development life cycle........................................................................7
Discussion:...................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Information technology is defined as using a computer system for storing, extracting and
transmitting the information from one system to another. It is mainly used by several
organisations to offering high quality product or services for meeting with the need of its
customers (Al-Saggaf, Burmeister and Weckert, 2015). Barclays plc is a British multinational
bank and financial service company which is headquartered in London. It is basically work over
four core businesses such as corporate banking, personal banking, investment management and
wealth management. This report basically involves literature review about the role of ICT within
business and discussion over it.
LITERATURE REVIEW
Literature review is defined as the process of critically evaluating the view point of
several authors in order to develop an understanding regarding the particular topic of study. It
helps an investigator to develop an understanding regarding a particular topic by evaluating the
existing information available by considering its positive and negative aspects.
Role of IT in success or failure of Barclay's bank: -
As per the information provided by Hassan Ghaziri, computers are gaining more
acceptance throughout the world and providing bank with a potential to fulfil the expectation of
customers more effectively. The technologies have now brought several changes to new
technologies that have bring impact over the employees working, customer and officers of bank.
Integration of information technology within the operations performed by Barclay's bank has
provided it with an opportunity to deliver its banking product or services in more convenient
manner then before. This involves providing an option to customer of Barclay's bank to get quick
access to critical information as well as responding quickly to those matters. This become
possible with the help of online customer support services interaction and providing access to
Barclay's own website to customer where they can check their bank status, transactions
performed and many more relevant information. These all benefits have contributed toward the
success of Barclay's bank within marketplace by dealing with the competitors’ strategy through
developing several factors for attracting customer to remain bind with the bank for financial
services. This is because the Barclay's bank has become able to develop a easily accessible
channel by consumers for performing direct marketing and customer support services by using
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digital medium. Hence, it can be said that IT integration in term of banking operations plays a
crucial role within the growth as well as success of Barclay's bank
On the other hand, according to the view point of nehapatangia, 2019, Information
technology as a solution has bring up the traditional banking to totally a new world through
providing internet, e-banking, business networking, budding to reduce cost, speed, efficiency and
time saving methods of performing banking transaction and operations. Internet has emerged as a
blessing by simplify the complex processes of banking but at the same time it has also brings up
various threats to the banking institutions as well as its customers. This includes several criminal
activities like crackers, hacking of data through several techniques like hacking Domain Name
Server (DNS), spoofing, internet phishing, Internet Provider's (IP) address. These are the
negative consequences that integration of information technology has bring with it in addition to
the benefit it delivers to the bank as well as its customers. Hence, these fraud practices usually
threaten the customer to use e-banking practices which somewhat restricting the proper growth
of Barclay's bank. This is so because with the enhancement of technology, Barclay's also adopt
e-banking strategy in order to expand its customer base. On the other side such fraud practice
over internet may also proves to be a risk for Barclay's goodwill and market reputation if it get
happen to its customers as it leads to negative publicity of bank in term of security and services
as well.
Ethical and social issues that pertain to running businesses,
As per the view point of Karehka Ramey, 2012 though the information technology plays a
crucial role in an individual life by improving its day to day practices, it also brings up several
serious ethical challenges. The major challenges that information technology has brings its user
involves lack of privacy, copyright infringement, security and increasing computer crimes. These
all has created ethical and social issues in banking sector also as industry involve more
confidential information of customer, theft of which may results into sever financial and property
loss to the user. The major ethical and social issues that get arises in front of Barclay’s bank are
mentioned below:
Security: - This is considered to be one of the most prominent social issue that banking
and other sector face while using internet as a source of their transactions. As internet has make
it easier for the hackers to easy capture the information from an account or computer until its get
logout from internet connection. Hence the major issue present in front of Barclay’s is online
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transaction where transfer of money easily gets interrupted by the hacker and transfer the money
to their desired account. This is a biggest social issue to Barclay’s bank as it affects both bank as
well as customers who are using online banking technology.
Privacy issue: - As much as the information technology has evolved, it increases the
mediums of sharing information and using personal information quickly whenever required as it
kept safe over a digital account of people. But on the other side it is exploiting the freedom of
privacy or creating several ethical issues for banking sector in term of serving their customer
efficiently. Here the major ethical issue that Barclay’s bank face is that in order to improve its
services and benefit to the customer, Barclay’s has provided its customer with a chance to
perform online shopping over different websites using debit or credit card. But some websites
are fake which firstly save that data and then after performing transaction money of client be
stolen by them and the ethical issue to faces is that bank won’t be able to maintain security over
such mediums which influence its own image among customer.
Differentiate between different types of networking technologies
According to the Arokiasamy, bin Abdullah and Ismail, 2014, banking industry is
experiencing a greater technological support where new technologies like computer operating
system, internet, wide and local area network are becoming more significant strategic area for
several kind of financial institutions or banks. In addition to this with the advancement of
technology it become easier for banks to maintain their network stronger by using several
networking technologies. These are LAN, WAN, MAN and many more which support a bank to
connect the system operators that are working over several different location get connected over
a single large network so that data and information can be transferred much quickly. Among
them LAN network is refers to as local area network which leads to connection of computers
over a single network that covers a small area like building on the other side MAN or
metropolitan area network is one which connect number of computers over a larger geographical
area. The MAN is considered to be most appropriate networking technology as compare for
baking practices as compare to LAN as it covers up larger area which ensures that number of
Barclay’s branches comes under a particular region get connected over a single network so that
appropriate coordination can be maintained among them for better customer services.
On the other side, as per the view point of Dezi, and et. al., 2018, networking technology
is considered to be most effective strategy which support a business to maintain a network
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between its several branches so that appropriate flow of information can be maintained over the
platform for better performance. But despite of all its benefit there are also certain consequences
which affect or intrude the smooth flow of transaction among banks (Hoq, 2015). This is because
the network which covers a smaller area like LAN is more secure and flow of information and
other practices remain within a particular building which ensure no external disruption would be
there which help in keeping data secure but on the other side if the networking technologies like
MAN (Metropolitan area network) or WAN (Wide area network) used by a bank then it leads to
connection of larger number of computer that belongs to several different geographical region
are connected over a single network. Asa a result of which information get flow from the bank
premises and transferred to several different location through several medium which may involve
more risk of getting access to information by unauthorised people. Hence, LAN is considered to
be more secure or better networking technology that must be managed by Barclay’s bank in
order to perform its operation which involve less risk of hacking of data.
The importance of Intranet and Internet in your business,
According to the view point of Dwivedi, 2015, bank plays a crucial role within an
economical development of a country by providing a right medium to secure, uses and invest the
capital. With the advancement of technology, the banking customers are becoming more
demanding which enable banks to make use of advanced technology for shifting the banking
practice from traditional to modern banking methods. This has increasing the use of internet in
performing banking operations from both i.e. customer and bank side by categorising its services
in term of mobile banking, online banking, digital money etc. The internet supported up to a
great extend to Barclay’s bank in order to minimise the waiting time of their services and
providing more convenient access to their offering. It allows Barclay’s to add more convenience
to its existing customers and approaching larger population resides in untapped area for
strengthening the market base. On the other side, internet has also provided a significant benefit
which allow them to make real time payment and fund settlement with remittances of fund
outside the country.
But despite of this, as per the view point of Montequin and et. al., 2014, internet provide
several benefits to a bank in term of improving its customer experience, reducing the time taken
by operations, approaching and expanding new market and many more. But despite of this it also
brings up several risk to the bank operations which involves hacking of information or cardinals,
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unauthorised access, fraudulent practices and many more. These risks may also affect the
goodwill that Barclay’s bank have within the marketplace as it directly influences the customers
perception toward bank and its services (Venkatesh, Sykes and Venkatraman, 2014). Hence,
intranet is considered to be more secure medium as compare to internet as it restricts the
interruption of unauthorised access. The intranet basically provides a internet network to limited
systems such as within an organisation by restricting the external traffic using firewall. This
support in developing a security threats between he external and internet access so that fraud
practices through unauthorised access can be blocked for maintain the security of confidential
information that Barclay’s bank maintain.
From the above performed critical evaluation it has been found that the majority of
internet has providing a platform through which Barclay’s bank can develop its network through
the people resides at several different part of world. On the other side intranet is the part of
internet which provide a secure medium to access internet by restricting the external or
unauthorised access through firewall so that operations can be performed using a secure medium.
Different stage of system development life cycle
As per the view point of Motea Alwan, 2015, System development life cycle is basically
a process of creating either a hardware, software or combination of both with an aim to satisfy
the need and expectations of customer. It is a step by step execution process which involve six
stages that supporting in formulating a system and these are explained below,
 System planning: - It is first and most crucial step that help in creating a system
successfully as it involves decision making in term of idea to be selected for presenting
actually flow of work and its direction. This stage involves activities like defining
problem, objective or resources, evaluating ability of proposed idea or process and
identifying the ways of creating product better.
 System analysis: - The demand of end users gets identified and marked in the document
so that feasibility study can be performed to determine the viability of idea or system in
term of customer expectation (Xiang, Archer and Detlor, 2014). This stage also
contributes toward determining whether the idea or system is economically, socially,
technologically and physically is feasible for market expectation.
 System design: - After formulating idea and performing feasibility study, next is to
design a general system which represent activities to be performed and actual functioning
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of system in order to provide guidance. This stage depicts about the elements of system,
security level, components, modules, architecture and type of interphase.
 Implementation and Deployment: - Once the complete understanding of system
requirement and specification has been performed the next step is the actual execution of
idea where the formulated plan placed into action. Here is actual system get produced as
per the plan formulated.
 System testing and integration: - Once the system has been developed regarding the
requirement or need of customer and as per planed formulated in above stage. The
developed system or product send for testing in order to evaluate the manner in which it
performs function (Veit, and et. al., 2014). This help in determining the defect that
particular system have and gap between the actual and planned performance so that
proper rectification can be performed and product or system send to final launch in
market.
 System maintenance: - This is the last phase of system development life cycle where it
is ensuring that customer need get satisfied by performing periodic maintenance of
system for letting system perform its operation effectively and don’t get obsolete. It
involves replacement of old device and continuous performance evaluation of better
system performance.
Discussion:
As per the above-mentioned information it can be said that information technology
supports up to a great extend in enhancing the operational efficiency as well as market base of a
company. Because it offers several benefits like anytime anywhere interaction, performing
transactions quickly, approaching new customer base etc. which support in keeping customers
satisfied but on the other hand it also involve several kind of social as well as ethical issues as
use of internet invite several sort of criminal activities like hacking of information, unauthorised
access for misleading financial transaction and many more (Scholl and AlAwadhi, 2016). These
all may affect the goodwill or reputation of Barclays bank with the use of internet or information
technology.
But these consequences can be removed by ensuring the safe and secure use of IT by
Barclay’s bank as internet has ow become a necessity specially for banking sector for providing
quick transition or payment using online platform. Hence in order to satisfy the expectation of
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customer regarding technology, Barclay’s bank can apply several kind of security threats that can
only be access by authorised party only (Scupola, 2014). This support in keeping the confidential
information of customer secure and help in maintaining the goodwill of bank as well. Despite of
this it also makes use of firewall along with double security code using unique verification code
that get change frequently. This make it harder to crack by hackers and hence data or further
transactions of finance can be kept secure. Therefore, Barclay’s can invest in installation of IT in
its operation but while ensuring proper security so that work can be performed in ethical manner.
CONCLUSION
From the above-mentioned information, it can be summarised that information
technology has now become a crucial part of each business as it helps in providing a easier and
much quicker option o perform product or service transaction. this not only support in
simplifying the process but also support in keeping the organisational operations align with the
changing need and expectation of customers. In addition to this IT provide several benefits like
internet, networking technologies, e-business and many more which support organisations to
remain connected with its existing customer and approach new customer while operating from
any other part of world.
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REFERENCES
Books & Journals
Al-Saggaf, Y., Burmeister, O. and Weckert, J., 2015. Reasons behind unethical behaviour in the
Australian ICT workplace: An empirical investigation. Journal of Information,
Communication and Ethics in Society, 13(3/4), pp.235-255.
Arokiasamy, A.R.A., bin Abdullah, A.G.K. and Ismail, A.B., 2014. Correlation between Cultural
Perceptions, Leadership Style and ICT Usage by School Principals in Malaysia. Turkish
Online Journal of Educational Technology-TOJET, 13(3), pp.27-40.
Dezi, L., Santoro, G., Gabteni, H. and Pellicelli, A.C., 2018. The role of big data in shaping
ambidextrous business process management: Case studies from the service
industry. Business Process Management Journal, 24(5), pp.1163-1175.
Dwivedi, Y.K., Wastell, D., Laumer, S., Henriksen, H.Z., Myers, M.D., Bunker, D., Elbanna, A.,
Ravishankar, M.N. and Srivastava, S.C., 2015. Research on information systems
failures and successes: Status update and future directions. Information Systems
Frontiers, 17(1), pp.143-157.
Montequin, V.R., Cousillas, S., Ortega, F. and Villanueva, J., 2014. Analysis of the success
factors and failure causes in Information & Communication Technology (ICT) projects
in Spain. Procedia Technology, 16, pp.992-999.
Scholl, H.J. and AlAwadhi, S., 2016. Creating Smart Governance: The key to radical ICT
overhaul at the City of Munich. Information Polity, 21(1), pp.21-42.
Scupola, A., 2014. The relation between innovation sources and ICT roles in facility
management organizations. Journal of Facilities Management, 12(4), pp.368-381.
Veit, D., Clemons, E., Benlian, A., Buxmann, P., Hess, T., Kundisch, D., Leimeister, J.M., Loos,
P. and Spann, M., 2014. Business models. Business & Information Systems
Engineering, 6(1), pp.45-53.
Xiang, J., Archer, N. and Detlor, B., 2014. Business process redesign project success: the role of
socio-technical theory. Business Process Management Journal, 20(5), pp.773-792.
Venkatesh, V., Sykes, T.A. and Venkatraman, S., 2014. Understanding e‐Government portal use
in rural India: role of demographic and personality characteristics. Information Systems
Journal, 24(3), pp.249-269.
Hoq, K.M.G., 2015. Rural library and information services, their success, failure and
sustainability: a literature review. Information Development, 31(3), pp.294-310.
Online
Ramey. K., 2012. 5 Ethical Challenges of Information Technology. [Online] Available through:
<https://www.useoftechnology.com/5-ethical-challenges-information-technology/. >./
Alwan. M. 2015. What is System Development Life Cycle? [Online] Avaialble through: <
https://airbrake.io/blog/sdlc/what-is-system-development-life-cycle>
Ghaziri. H. 2019. Information technology in the banking sector:
opportunities, threats and strategies. [Online] Available through:
<http://ddc.aub.edu.lb/projects/business/it-banking.html>./
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Nehapatangia. 2019. Negative Impacts of Technology in Banking Sector [Online] Available
through: <https://www.termpaperwarehouse.com/essay-on/Negative-Impacts-Of-
Technology-In-Banking/40413>./
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