Role of Information Technology in Business Growth and Success

This study explores the role of information technology in the growth and success of businesses. It discusses the importance of different networking technologies, the role of IT in the success and failure of HSBC, ethical and social issues in organizations, and the importance of internet and intranet in business. The study also covers the different stages of system development life cycle.

REPORT

ABSTRACT
Objective of this study was to understand the role of information technology in the growth and
success of business. For understanding the importance of information technology and different
networking technologies and where they are used. Importance of internet and intranet in business
will be identified in this business. Also it will give understanding of the stages of system
development life cycle.

TABLE OF CONTENTS
ABSTRACT....................................................................................................................................2
TABLE OF CONTENTS................................................................................................................3
INTRODUCTION...........................................................................................................................1
LITERATURE REVIEW................................................................................................................1
ANALYSIS AND DISCUSSION...................................................................................................2
Role of IT in success and failure of HSBC..................................................................................2
Ethical and social issues in organization.....................................................................................3
identify and differentiate between different types of networking technologies,.........................4
discuss the importance of Intranet and Internet in your business................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Information technology brings innovation to businesses. Innovation in businesses have
same impact as that of steam in industrial revolution. A business that has not been benefited from
Information technology. It is helping companies in becoming more productive, increasing their
performance saving their costs, improving customer experiences , streamlining communication
& enhancing decision-making process. It is improving the organisational communications it has
provided platforms like conferencing software, video chats, email, internet and intranets in
general. Today for success companies are bringing innovation through use of IT. It is playing an
important role as it is helping organisations in managing their daily operations that are essential
for success of business.
It is helping companies to expand over international scales. Companies are able to
maintain their business records and operations efficiently at cheaper rates using enterprise
software & centralised databases. IT has facilitated with improved customer services, customized
marketing & e -commerce. Business organisations are growing with enormous rate with the help
of information technology. Information technology has eased the process of decision-making ,
companies are available with data about the performances that helps them to make proper
decisions. Everything around us developed with help of information technology be it anything.
Life cannot be imagined without the information technology not only for business but also at
individual level. Businesses are seeing growth due to information technology as every process is
made faster and cheaper.
LITERATURE REVIEW
In the view of Liberti and Petersen, (2018) information technology is playing vital &
integral part in business plans of company. Every organisation starting from MNCs maintaining
mainframe information system and databases cannot survive in the current market. Every
organisation is using information technology for enhancing its performance and increasing its
growth. Business environment is dynamic and faces rapid changes due to technological
innovation, awareness and customer demands. Banking sector is operating under competitive and
complex environment which is changing continuously and economic climate that is
unpredictable. HSBC has been recognised that IT is playing significant role in contemporary
enterprises.
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Banking sector is using technology for serving the clients of banks and it is essential for
bankings. Emerging technologies are changing banking sector from paper works to digitalized
and network based banking systems. Facilities like internet, a shift from broadband has made the
process cheaper and transfer of data has been made easy. Technology has transformed
accounting as well as management systems of HSBC. Now banks have the changed the process
of delivering services to its customers. Though implementation of technology is an expensive
process but rewards and returns are limitless. Information technology is playing significant role
in success and failure of HSBC. Development and role of IT that have helped bank in attaining
success in present times.
ANALYSIS AND DISCUSSION
Role of IT in success and failure of HSBC
Bouma, Jeucken and Klinkers, (2017) states that E banking has enabled company in
delivering services to high end clients. This has allowed banks to ease the processes for
customers. For making user systems friendly to clients, graphical interface has been used by
banks. This helped HSBC to gain customers satisfaction as customers are now able to access
bank details at their facilities , transfer funds from one account to other, get bank statement and
man more facilities. E banking has played mnajor role in growing the HSBC easing the
consumer processes. When customers are satisfied with services of organisation it leads to
success.
Information has allowed customers to access their accounts from around the countries.
Technology has facilitated customers to transfer funds from anywhere also by customers
working abroad. Through information technology HSBC is able to expand its services to rural
areas. Bank have established new technologies that help the rural people by providing the
banking services in their areas, like mobile banking facility. Expansion of branches to rural areas
have created new customer base which has supported organisation to grow in marketplace.
Innovation of plastic money was welcomed by the whole society at large. This was a very big
innovation that created new customer base and gave banking sector new rise. Customers were
able to withdraw money at anytime from anywhere and they are now not required to wait for
hours in banks for withdrawal or deposit. They are not required to carry money with them for
purchasing or shopping. This technological invention has saved the time and cost of both basnk
and its customers.
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Along with facilities and inventions that has made the process easy it has been stated by
Senft, Gallegos and Davis, (2016) that for protecting the information, other details Information
technology has developed security systems. As banks have to deal with personal details and
money of customers it is very important for them to ensure its safety. Along with physical
security, cyber security is also necessary for the company. Information technology has provided
software that protects the data and information of customers and keeps them into safe custody.
This has increased customer reliance in the banks that their money and details are safe.
Banks with data management systems are able to store data and all document in digital versions
on storage devices and servers. HSBC is no more required to huge racks of files and documents.
Details of customers can be checked at tremendous speed saving their time. Management
information system facilitates the use of information by managers and executives for framing
strategies for their growth. MIS system helps bank to track accounts of its customers and all the
details related to deposits, interests and money.
Ethical and social issues in organization
Social and Ethical issues
Banks are most regulated in comparison to other institutions operating worldwide. Banks
mobilize funds for cost on lending. Banks are providing efficient mechanism for payments for
settling the transactions. Long, (2018)states in banking sector ethical codes and professionalism
are serving as foundation for the banking sectors. It provides bank with ideas and needs of
customers and what kind of roles and responsibilities are required to be performed by
organisation. Employees at all levels are required to perform their tasks and duties with ethical
codes. Social and ethical issues bring intense changes even about the banking sector.
Introduction of information technology brings signifiant change over the banks. Social and
ethical issues include informational rights and obligation, property rights, systems and quality
issues. It is enhancing the organisations. Information technology has simplified the process of
banking for the society . It is their social responsibility to educate people about the benefits they
will be providing through banking services. With information technology banks have cleared the
issues related of rural sector. Rural sector were not having banking facilities but IT has solved
the issue of society.
Ethical issues related to the code of conduct in banking sector.
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HSBC with information technology has to preserve the data and information of it
customers. Leak of information can affect the business of its clients therefore it is essential for
the business to improve the business. Ethical issues include rights and obligations attached with
using information technology used in the enterprise. HSBC have to take care of issues that can
affect the business of the banks. Banks should have secured services and systems and access over
the information should be provided only to authorised users. Advance technology for protecting
the data of customers should be implemented so that information related bank details cannot be
accessed by unauthorised users as per the Andrade and Doolin, (2016) Employees should not
have the access to make changes to account details without confirming it with employees. People
are also making negative use of information technology for transferring the funds of customers to
other accounts by hacking the personal accounts. Various frauds are being committed in name of
banks deceiving the customers. It is the ethical responsibility of banks to create awareness
among the society about the frauds in name of bank how they should respond in such incidents.
HSBC has to ensure that information technology is helping the bank to grow keeping in view the
essentials ethical requirements. Technology should not change the behaviour of employees hey
should give proper response to the customer over any issues. Any issues faced by customers due
to technological fault should be addressed by bank appropriately. This is essential for the bank
to ensure that ethical issues are not compromised with the technology they are also to be
considered by bank. Internal information of the client is not transferred out should be ensured by
the bank.
identify and differentiate between different types of networking technologies,
Networking technologies
Networking allows computers in connecting and communicating with other computers through
many channels. Three major networks designed for operating over areas covered are LAN, MAN
and WAN. These networks have both similarities & dissimilarities among them. The major
difference between the networks is of geographical areas covered by them (Networking
Technologies, 2019).
LAN (Local Area Network )
LAN links networking devices in a way so that personal computers & workstations are able to
share data, programs and tools. Data is transmitted by systems very quickly as computers which
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are linked over the network are limited. LANs are owned privately and covers a very small
geographic area. It is useful for office buildings, hospitals, schools etc.,.Designing and
mainatainance of LAN is an easy process. Twisted and coaxial cables are used as communication
medium in LAN. Configuration of LAN can be done in bus, ring or star topoplogy. It is also
known as broadcastiong network where messages are sent over all hosts connected as hosts
share same transmission mediums. Statically & dynamically are the two ways in which
broadcasting could be done.
MAN (Metropolitan Area Network )
MAN covers a bigger area as compared with LAN and smaller than that of WAN. It is used for
connecting more than two computers which are over diofferent locations or in different cities.
MAN cover larger geographic area & it may serve as internet service provider. Designing and
maintaining MAN is not an easy task. MAN may or may not have single ownership and is costly
techniques. MAN is categorised in 2 types that are DQDB and SMDS.
DQDB (Distributed Queue Dual Bus) – DQDB is considered as dual bus that refers each
networking host are linked with 2 backbone networking lines.
SMDS ( Switched Multimegabit Data Services ) - it connect different LAN & permit transfer of
packets on other LAN over SMDS. It's MAN having high speed using packets switching as
datagram service.
WAN (Wide Area Network )
Wide Area Network is network that is expanding over larger geographical areas than LAN and
MAN. WAN can be connection of other LANs that are connected to different LANs through
telephone lines & radio waves. The ownership of network could be private. Medium used for
communication in WAN are satellite link or PSTN. Because of transmission over long distances,
noise and error are more in WAN. Biggest problem faced in WAN is propagation delay. WAN
uses switches which allows many computers in connecting to several switches rather than
connecting with one another. Network uses store & forward concepts for transmitting packets,
packet on temporary basis are stored in buffer and then they are forwarded to destinations
through predefined paths.
As per Rawashdeh, (2015) main differences in LAN, MAN and WAN are
First difference is geographic area LAN has small area, MAN operates over large area and
greatest is covered by WAN.
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LAN is limited to schools and buildings, MAN links towns and cities and WAN expands to
country or countries.
Devices for data transmission -
LAN – Ethernet cables, wifi
MAN – wire /cable and Modem
WAN – Microwaves, optic wires, satellites
Data is transmitted faster in LAN compared to WAN and MAN.
It is easier to maintain LAN than WAN and MAN.
discuss the importance of Intranet and Internet in your business
Importance of internet and intranet in business.
Rise of electronic networking and personal computers have expanded the scope of innovation
and productivity in business. Networks of computer are offering new communication forms over
whole business markets.
Intranet – Intranet is comprised of restricted computer networks having control and reserved for
single organisation in view of AUTHOR. It enables HSBC to connect large number of people
from anywhere. Intranet of HSBC is having its own infrastructure for intranet apart from
internet. It has helped the bank to establish internal communication network in organisations. It
is an tool that has helped the bank to increase the efficiency of and productivity of employees. It
helps in improving the internal communication and sharing knowledge within organisation.
Information required by them is easily and quickly found. Effective intranet simplifies
employees onboarding.
Internet – Internet is serving the bank through creation of opportunities for information
retrieval , networking, marketing, communication and sales. Internet is helping HSBC to provide
its services to customers over wide distances. Internet is used by bank for gathering information
and for interacting with clients, customers and government. Internet is facilitating bank with
internal communication and electronic activities for providing efficient services to customers.
Bank is operating over large number of location and centralised management is made possible
only because of internet. Bank is able to provide its services to customers at every place through
internet (Importance of Internet, 2019). And customers are able to access their account details
from anywhere becaause of internet. It has fastened all the process of banking sector and has
innovated various new activities that has simplified the process of banking.
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Different stages of system development life cycle.
Cycle is having 6 main stages for creating hardware systems, software systems or their
combination for meeting customer expectations (SDLC, 2015).
It is set of interdependent and interacting components that is forming integrated whole. Stages
are :
System planning
It deals with defining objectives, problems and resources.
Studying ability to propose alternate solutions after interacting with clients.
System Analysis
Documenting and determining requirement of end users, relating to expectations and
performance of system. Feasibility study is carried out for determining organisational, social,
economic and technological feasibleness.
System Design
After understanding requirements of customers, it defines element of systems, components,
security level, architecture & different interfaces and data goes through system, plans are
designed.
Implementation & Deployment
This stage comes after understanding system specifications and requirements. Actual codes are
written over here. If hardware system are involved then fine tuning and configuration for
hardware for meeting certain specifications.
System Testing & Integration
Bringing different subsystems and components for creating integrated system & then introducing
systems over different inputs for obtaining and analysing the output and behaviour and ways of
functioning. Testing could be automated or systematic for ensuring comparison of actual
outcomes with desired and predicted outcomes (Lodhia, 2015).
CONCLUSION
From the above it is concluded that Information technology plays a vital role in growth
and success of business. Today every sector is dependent on the information technology for its
business operation and activities. It is not possible for any business to survive or even operate it
business without use of technology. It has helped to bring new innovation and invention to the
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society. It has simplified all the processes of business and has helped to create global presence of
business.
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REFERENCES
Books and Journals
Liberti, J. M. and Petersen, M. A., 2018. Information: Hard and soft. Review of Corporate
Finance Studies. 8(1). pp.1-41.
Bouma, J. J., Jeucken, M. and Klinkers, L. eds., 2017. Sustainable banking: The greening of
finance. Routledge.
Senft, S., Gallegos, F. and Davis, A., 2016. Information technology control and audit. Auerbach
publications.
Long, R. J., 2018. New office information technology: Human and managerial implications.
Routledge.
Andrade, A. D. and Doolin, B., 2016. Information and communication technology and the social
inclusion of refugees. Mis Quarterly. 40(2). pp.405-416.
Rawashdeh, A., 2015. Factors affecting adoption of internet banking in Jordan: Chartered
accountant’s perspective. International Journal of Bank Marketing. 33(4). pp.510-529.
Lodhia, S., 2015. Exploring the transition to integrated reporting through a practice lens: an
Australian customer owned bank perspective. Journal of Business Ethics. 129(3). pp.585-
598.
Online
SDLC. 2015. [Online]. Available through : <https://airbrake.io/blog/sdlc/what-is-system-
development-life-cycle>.
Importance of Internet. 2019. [Online]. Available through :
<http://www.klientsolutech.com/importance-of-internet-in-business/>.
Networking Technologies. 2019. [Online]. Available through :
<https://techdifferences.com/difference-between-lan-man-and-wan.html>.
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