HSBC Project Management: Impact of Digital Technology Analysis

This report critically analyzes the impact of digital technology on HSBC, a major financial institution, across departments like finance, operations, and HR. It outlines a project management plan to investigate this impact, using both qualitative and quantitative analysis. The report aims to determine the...Read More

MANAGING A SUCCESSFUL BUSINESS PROJECT- HSBC

ABSTRACT
The purpose of this assignment is to make readers understand the skills required for
managing a business project. Project management is a critical task requires independent
research and investigation in order to meet the appropriate business aims and objectives.On
completion of this report, the readers will get the confidence to engage themselves in
effective decision making and research activities using appropriate project management
skills. The readers will get a fundamental knowledge and skills which would enable them to
examine and investigate necessary business concepts in a work-related context. They will be
able to determine the appropriate objectives, solutions and decisions in managing a
successful business project. In the report the impact of Digital technology on banking
industries like HSBC is critically evaluated. Moreover, the advantages, disadvantages, issues
and risks associated with digital technologies are also explained in brief for archiving the
aims and objectives of the research project.

CONTENTS
ABSTRACT...................................................................................................................................2
INTRODUCTION..........................................................................................................................4
AIMS AND OBJECTIVES...............................................................................................................4
AN OVERVIEW OF HSBC COMPANY...........................................................................................4
PROJECT MANAGEMENT PLAN..................................................................................................5
LITERATURE REVIEW..................................................................................................................8
RESEARCH METHODS AND METHODOLOGY...........................................................................10
RESULTS....................................................................................................................................11
DISCUSSION..............................................................................................................................13
CONCLUSION............................................................................................................................15
ACCURACY AND RELIABILITY OF DIFFERENT RESEARCH METHODS APPLIED..........................16
LIMITATION OF THE RESEARCH AND AREAS OF FURTHER CONSIDERATION..........................17
REFLECTION..............................................................................................................................18
CONCLUSION............................................................................................................................19
REFERENCES.............................................................................................................................20

INTRODUCTION
With the advent of Digital technology and digital revolution in the businesses, the world has
entered into a new millennium of networking, connectivity and marketing. Now the
businesses and organizations are more developed and advanced with the innovation of new
machines and networks. The Digital Technology is getting mixed up with our day to day lives
and has brought a revolutionary change in the industries and businesses. In this assignment,
an analysis is made about the impact of digital technology on business operations,
marketing; HR activities etc.
Later in this assignment, a project management plan is made for analysing the impact of
digital technology in the HSBC Company which is one of the largest financial and banking
service providers in the World. The report also includes the aims and objectives of the
research topic which is the impact of digital technology in the business operations of HSBC
Company using qualitative and quantitative analysis. At last a performance review will be
made based on the analysis of the research followed by certain recommendations.

AIMS AND OBJECTIVES
Aim
The aim of this project is to critically analyse the impact of Digital technology in the HSBC
Company across several departments like finance, Operations, HR etc.
Objectives
 The primary objective of this report is to analyse the Impact of Digital Technology in
Banking Operations for HSBC Company.
 The Secondary objective is to determine the advantages and disadvantages of using
Digital Technology in Banking and Financial Organizations.
 To analyse the role of Digital Technology in enhancing the performance of banking
operations in banks like HSBC.
AN OVERVIEW OF HSBC COMPANY
HSBC is one of the largest financial and banking service provider companies in the UK. The
headquarters of this company is located in HSBC tower London, UK. The company was
founded in the year 1865 by Sir Thomas Sutherland. The operating income of this company
is the US $ 14.792 billion as of 2017 and number of employees in this company as of 2017 is
228,687 (Hui and Rudkin, 2010).

PROJECT MANAGEMENT PLAN
A project management plan helps to explain as to how the project will be managed during
various stages. It also helps in allocation of resources to the project management team
along with monitoring the activities of the project members (Kerzner and Kerzner 2017).
Figure 1: Project Management Plan
Source:[http://www.free-management-ebooks.com/dldchk/dlchpm-pmplan.htm]
Work Breakdown Structure (WBS)
The tasks of this project are structured in a sequential manner and all the tasks are divided
so that proper time is allocated for each task (Norman, et al. 2010). The work breakdown
structure helps in ensuring that all tasks are accomplished in the project and supports the
aims and objectives defined the project. It also helps in organizing the project work for
managing the tasks which are essential for completing the project. The WBS aims to list
down the work activities, time constraints against each work activity and completion of
defined deliverables while taking into consideration all the factors that impact starting and
ending of each task.
Start & End Date: The project will start from 1stApr 2018 and will end on 7th Apr 2018.

Cost Involved: It is difficult to determine the exact cost involved in a project having changing
variables. However, the cost assumptions will help the business create contract proposals
which would require an approximate project cost (Meredith and Mantel, 2011). The cost
involved in this project depend on the below factors.
 Direct Cost: The direct cost in the project refers to the salaries given to employees
for their work, salaries paid for the resources, cost involved in hardware and
software used in building the website etc.
 Indirect Cost: This includes the cost for indirect expenses in the project plan for
examples cost involved in office supplies, office rent, administrative salaries etc.
 Variable Cost: It refers to the cost that increases or decreases depending upon the
changing project constraints such as resources used, the time consumed,
infrastructure used etc.
 Fixed Cost: It is that cost that does not change the timeline set during the progress
of the project.
Risks Anticipated: For successful execution of project a risk management plan is required in
order to mitigate and avoid those risks that may arise when the project is still under
execution (Fang and Marle, 2012). The main risks anticipated in this project are resource
allocation, time management, Technology risk, Task scheduling risk and scope risk.
Other Resources: Some other resources include people, infrastructure facilities,
equipment’s, funding or anything that defined for the completion of project activities.
Milestone Set: The milestones setting is an important part of project planning as it accounts
for the successful execution of project deliverables. In the project, some of the factors are
given high importance for milestone setting such as
 Deadline Management
 Control on Project Deliverables
 Highlight Important Dates

Importance of Gantt chart for a Project Manager for achieving Project aims and Objectives
A Gantt chart helps in planning and executing the project deliverables. It also helps in
determining the time required for completion of each task listed under a project plan
(Geraldi and Lechter, 2012). Moreover, it helps the Project Manager in managing the
dependencies and risks associated with each task. A Gantt chart helps the project managers
for effective resource allocation, prioritising tasks and reducing the overburden from team
members.
GANTT CHART
Duration (in weeks) 1 2 3 4 5 6 7
Task
PROJECT DEVELOPMENT
PLAN
IMPLEMENTATION OF
WORKING DEFINITIONS
STAKEHOLDER
DETERMINATION
ANALYSING IMPACT ON
OPERATIONS&
MARKETING
ANALYSING IMPACT ON
HR
ANALYSIS OF THE IMPACT
ON SALES AND
DISTRIBUTION
EVALUATION OF DATA
In the first week, the project development plan will be analysed which will mainly cover the
essential tasks relating to the impact of Digital Technology on HSBC organization (Geraldi
and Lechter, 2012). Some definitions will be defined and based on that some conclusions

will be derived based upon the need of Digital Technology in the business for ensuring
greater productivity and efficiency in the business.In the third week, the stakeholders will be
determined along with the analysis of the impact of digital technology in HSBC Company in
various departments like HR, Operations, and Sales etc. At last, the data will be evaluated
based on data collected from various sources (Geraldi and Lechter, 2012).

LITERATURE REVIEW
According to a research conducted by Oluwagbemi et al. 2011, the digital technology has
become a key element in the economic development for the business in their methods of
operations across several departments like HR, finance etc. With the use of digital
technology companies like HSBC provide quality of service to their customers and ensure
greater productivity and efficiency in their operations.It is also seen that companies like
HSBC make use of digital technology in managing their projects for timely delivery and
execution. In his research, he realised that digital technology is becoming a global trend and
companies are incorporating into its businesses so as to move a step ahead of its
competitors in the business. The banking industries like HSBC make use of digital technology
for enhancing the quality via e-banking. In his research he analysed the current trend
prevalent in the industry in the field of Digital Technology and how banking industries make
use of such technologies for improving the quality in their services and method of
operations (Oluwatolani, et al. 2011).
As per the research conducted by Ganguli and Roy, 2011 in his report that aimed to find out
the quality service dimensions of digital technology in the banking industry and the effects
of these dimensions on customer loyalty. He found out that there is four service quality
dimension in the digital technology for banking industries such as security, customer service,
technology convenience, and technical quality. Some additional dimensions include ease of
access, reliability and availability. In his research, he found that it is important for the
businesses to incorporate effective digital technologies in the business that provides greater
security and reliability for increased customer satisfaction (Ganguli and Roy, 2011).
According to a research conducted by Oldham and Silve, 2015, he found out that digital
technology can enhance innovation in the workplace environment for the businesses. He
concluded that digital technology can be helpful in innovation if employees are facilitated in
their development process and their creative ideas are evaluated against the business ideas.
There are three most important conditions essential for generating creating ideas for
employees in the business such as exposure to new digital technologies, exposure to diverse
information, full employee engagement and employer support. In his report, he also stated
that the digital technologies should be used with caution in the businesses as there are pros

and cons associated with each technology. Technology incorporation in the working
environment requires adequate resources and appropriate infrastructure which cannot be
neglected (Oldham and Silva, 2015).
Bhardawaj et al. 2013 in her research realized the strategies that can be used to implement
digital technology in the businesses. He states that firms need to align the business strategy
along with the digital strategy for ensuring greater productivity and efficiency in the
business. He realized that over the years the business infrastructure is changing and
becoming digital which is a positive sign for increased interconnections among the products,
processes, and services.He stated that these technologies are useful in spanning business
sectors across demographic boundaries and also help to transform the business strategies,
processes, firm decisions and capabilities, extending the business networks (Bharadwaj, et
al. 2013).
Ali et al. 2014 conducted a research and realized that the modern electronic systems mainly
rely on third-party systems for processing payments. In his research, he concluded that
banks like HSBC make use of e-verification for protecting and safeguarding the confidential
information of its employees in the business. The report gave conclusions that banks are
using modern digital technology for empowering its employees by ensuring greater
efficiency in their day to day business operations. The report analysed how the recent
developments in new digital currency creation like the Bitcoin are facilitating customers
more effectively thereby proving a decentralized mode of the payment system. The report
also briefed that banks today hold financial assets in purely digital form thus making use of
the technological advancements in the business (Ali, et al. 2014).
As per the research conducted by Kien, 2016 the researcher analysed that Business
digitalization is changing the competitive landscape for many firms and big
industries.Customers are becoming more and more digital savvy which graves the concern
for banks like HSBC to incorporate new digital systems into its business operations. But the
report also briefed that these digital systems can be a threat because security is one of the
biggest issues with these digital systems. Hence the report concluded that digital technology
should be highly secured before incorporating it into the businesses.The report also
highlighted as to how big banks like HSBC respond to the digital threat and what strategies it

adopted in order to minimize the threats caused due to digital system failure in the business
(Sia, et al. 2016).

RESEARCH METHODS AND METHODOLOGY
The research approach used in this report is inductive approach as the report concerned
with the generation of new ideas from the topic (Taylor et al. 2015). The data analysed from
various sources will help in identifying whether the use of digital technology is beneficial or
not beneficial for banks in their day to day operational activities. The research strategy used
for this report is the survey of Questionnaires and data collected from Literature Reviews
from various authors and publishers. This strategy is used as it would provide an in-depth
review of the events and developments in the digital technology in the banking sector from
various sources.
A qualitative research technique is used in this report as it helps in gaining an insight into
the root cause of the problems or impact of a particular technology in an industry. For
instance, qualitative research technique helped in finding the impact of digital technology in
the financial and banking sectors for companies like HSBC (Taylor et al. 2015).
The report is made from the data collected from 50 customers who use online channels for
their banking needs. The sample data for this report is collected using a questionnaire which
consists of three parts.
1st- Use of Banking Channels and consumer behaviour
2nd-Statement containing quality related issues based on past literature
3rd- Questions based on Socio-demographic profiles of consumers
The sampling technique used for this report is random technique as data is blindly chosen
from 50 customers who use online channels for their banking needs. The source for
secondary data for the report is collected from financial institutions and through statistical
analysis of data generated from government departments. The conclusion of this report will
be made based on meeting the objectives set at the initial stages of the report; moreover,
an analysis will be made regarding the effectiveness of digital technology for banks like
HSBC (Neuman, 2013).

RESULTS
MEASURES QUALITY HIGH VALUE VERY HIGH VALUE
OPERATIONAL EFFICIENCY 44% 44%
DATA ANALYTICS 40% 50%
CUSTOMER EXPERIENCE 37% 45%
EXTERNAL AND INTERNAL
COLLABORATION 49% 29%
DIGITAL SECURITY INCLUDING CYBER
SECURITY 38% 35%
REPUTATION AND BRAND 42% 45%
INNOVATION EFFECTIVENESS 39% 45%
DISTRIBUTION CAPABILITIES 44% 36%
SUPPLY CHAIN MANAGEMENT 37% 39%
DECISION MAKING 40% 42%
DEVELOPMENT, FINDING AND
RETAINING TALENT 42% 26%
RISK TAKING DECISIONS 41% 22%
The above tables indicate the impact and effectiveness of digital technologies in creating
values for the organizations like HSBC. The below table is based on the data collected from
Survey and Questionnaire sessions from 50 employees working in the HSBC company
(Makienko and Bernard, 2012).
Question 1: What do you feel about digital technology or what is your attitude towards
digital technology?
1 2 3 4 5
Disagree totally Disagree No strong opinion Agree Strongly Agree

Answer 1:
Attitude towards digital technology in HSBC
Company 1 2 3 4 5
I enjoy using digital technology 0 0 10 30 10
I use digital technology only when required 5 10 15 10 10
I think the use of technology takes up too much time 5 10 10 15 10
I do not know if digital technology can help me learn
new things 20 10 20 0 0
technology threatens me 5 10 20 10 5
technology intimidates me 5 10 20 10 5
Employees should know how to use the digital
technology 0 5 10 10 25
Digital technology is beneficial for operational
performance 0 0 15 20 15
Use of Digital Technology provides greater customer
satisfaction 0 0 20 10 20
I feel confident when I use digital technology at my
work and home 0 10 10 20 10

DISCUSSION
Digital technology is understood to be the result of meeting the modern digital computing
and communication technologies. Modern Digital technology is the core of the information
systems which consists of series of interaction between people, data, software and
hardware (Ganguli and Roy, 2011). Digital technology is vital for businesses like HSBC for
their success. Technology and Information are regarded as an independent issue as there
are a lot of factors that contribute to its effectiveness in the workplace environment such as
digital technology quality, ease of access, risks associated etc. The importance of Digital
technology and its effectiveness is briefly explained for the HSBC Company through data
collected from varied sources.
Impact of Digital Technology in Banking Operations
In the present modern era, the demand for banking is from anytime and anywhere in the
world. The new technological advancements are changing the face of banking operations for
the HSBC Company. Use of APIs, Artificial Intelligence, blockchain and open banking
platforms is successfully benefitting the operations of HSBC Company. The digital technology
is expected to transform the banking operations as new consumer expectations are
impacting the banking sector to a greater degree than ever before (Ganguli and Roy, 2011).

Figure 2: Future of Banking Industry
Source:[https://thefinancialbrand.com/58416/digital-innovations-transforming-banking/]
STAKEHOLDER IDENTIFICATION
The HSBC Company need to identify the potential stakeholders for successful completion of
the project deliverables. It is important for the project managers of the HSBC Company to
recognize Stakeholders at the initial level of project planning (Crane and Ruebottom, 2011).
Stakeholder analysis should include the following factors such as
 Ensuring Stakeholder needs and demands
 Stakeholders potential and scope with Digital technologies
 Providing best possible project outcomes
 Having key stakeholders involvements in the business from initial phase till final
phase
SALES AND MARKETING
With the use of digital technologies, the banking companies like KSBC are able to provide
ease of banking to customers thereby improving the operational effectiveness of banking
(Leeflang, et al. 2014). The company is making use of digital technologies that help in

increasing the sales for the company as digital technologies have greater reach and ease of
access for consumers.
The government is focusing on improving the productivity of banks by incorporating digital
technologies in the banking sector. Now let’s have an insight as to how the banking
processes have changed for the HSBC Company (Leeflang, et al. 2014).
Development of Computerized banking Software
With the use of digital technology in banking applications the bank's processes have become
faster and reliable. The record keeping of data and retrieval has become much easier now.
Core Banking Solutions
Computerized banking provides greater accuracy and reliable service and with the
expansions of internet companies like HSBC are developing at a much faster rate. Banks
have started implementing CBS which helps banks open more branches and have a
centralized database (Anderson, 2010).
MICR Cheque processing
This technology has revolutionized the cheque clearing process by providing more
systematic procedures having greater security and reliability.
Some additional impacts of the use of digital technology in banking industries include
developments in Debit and Credit Cards, Internet Banking Solutions, Banking Services
Automation, Mobile Banking System.

CONCLUSION
From the above discussion, it can be concluded that there are many advantages of using
digital technologies for the banking and financial companies like HSBC. Hence it is important
for banks like HSBC to make use of digital technology in improving the overall effectiveness
of its banking operations. It can be further concluded that digital technologies are helpful in
providing better customer service to the consumers.

ACCURACY AND RELIABILITY OF DIFFERENT RESEARCH METHODS APPLIED
The research methods used were helpful in collecting accurate data for achieving the aims
and objectives of the selected topic for discussion. The accuracy and reliability of different
research methods are described below.
Surveys and Questionnaires
The survey and questionnaires provide a practical way of gathering data from varied
sources. These are helpful in collecting a vast amount of data on a particular topic.
Moreover, this research method provides speedy results and it is highly cost-effective
(Navarro-Rivera and Kosmin, 2011).
Literature Review
The data collected from literature reviews helped in gathering data from varied sources
covering the essential aspects of digital technology in the banking industry. This method was
reliable as during the course of project execution it helped in ensuring that the research is
on track and is in line with the research aims and objectives set earlier.
Qualitative Research technique
It helps in evaluating the subject matter with greater detail and accuracy. The qualitative
research data is based on human observations and experience which is quite reliable for
achieving the project deliverables and milestones (Neuman, 2013).

LIMITATION OF THE RESEARCH AND AREAS OF FURTHER CONSIDERATION
The aims and objectives formulated are too broad and there are some issues in highlighting
key points. However, the aims and objectives could have been narrowed so that level of
focus on the study could have been increased. Having a little experience in primary data
collected inhibits the successful implementation of data collection methods. Hence there is
a possibility that nature of data collection method may be flawed. Literature review being
an important part of the research requires a lot of previous experience. But there can be
little focus on some topics prior to the research in meeting the desired objectives of the
project (Mir and Pinnington, 2014).

REFLECTION
VALUE OF PROJECT MANAGEMENT PROCESS
Project management is important because building a project requires high cost and budget.
Having a project management process will ensure not having an unnecessary burden on the
budget constraints (Mir and Pinnington, 2014). The value of project management process
can be judged by the fact that it reduces the price of the overall project by 20%. It also
ensures delivery on time and effective resource allocation.
EVALUATION OF PROJECT MANAGEMENT PROCESS
A project evaluation basically refers to a systematic assessment of the ongoing project or a
project which is completed. The evaluation also refers to determining the level of
achievement of projects aims and objectives. In this report, all the objectives have been
successfully met in line with project deliverables. The Impact of Digital Technology on
banking industries like HSBC is critically analysed and proper recommendations have been
made as to how technologies can play a vital role in organizations success or failure (Mir and
Pinnington, 2014).
PROJECT OUTCOMES
The intended outcomes of the project are summarized below
 Use of digital technologies for banking industries like HSBC is highly beneficial in
increasing its productivity and for future developments (Sheard, 2012).
 It is essential for banking and financial institutions to use digital technologies with
caution while considering its advantages and disadvantages in the workplace
environments.
 There is a greater need for organizations to look at the risks caused due to the
incorporation of digital technologies in the businesses because of the prevalent risks
and issues.
PROJECT RECOMMENDATIONS

Digital technologies have a great impact on the IT services, systems and the processes. Its
impact can be seen in all areas of business operations like Finance, Marketing, and Finance
etc. Hence some recommendations are made while considering the impact of Digital
technologies in the businesses as described below (Sheard, 2012).
 It is essential for the businesses to identify the key stakeholders and change the
businesses process model such as considering requirement recommendations rather
than requirement gathering.
 It is essential for the Project Managers to choose an effective Cost Estimation Model
for Project Planning. For examples using an agile or V-Process based model can be
more beneficial in place of any other models.
 Strengthening the capacities for better implementation of digital strategies by the
governments into the business process model.


CONCLUSION
The contextual dynamics explained in the discussion conclude that digital technologies are
an important part of the HSBC Company in its methods of operations. HSBC is one of the
largest financial services providers is incorporating the digital technologies in the business
thereby providing several services to the customers like personal loans, investment banking,
mobile banking, e-banking etc. The HSBC Company is focusing on greater safety and
protection for its consumers by successful use of digital technologies in its business
practices. But the company must also ensure that the organization is aware of the
advantages and disadvantages of the digital technologies in the workplace.

REFERENCES
1. Ali, R., Barrdear, J., Clews, R. and Southgate, J., 2014. Innovations in payment
technologies and the emergence of digital currencies.
2. Anderson, J., 2010. M-banking in developing markets: competitive and regulatory
implications. info, 12(1), pp.18-25.
3. Bharadwaj, A., El Sawy, O., Pavlou, P. and Venkatraman, N., 2013. Digital business
strategy: toward the next generation of insights.
4. Crane, A. and Ruebottom, T., 2011. Stakeholder theory and social identity:
Rethinking stakeholder identification. Journal of business ethics, 102(1), pp.77-87.
5. Fang, C. and Marle, F., 2012. A simulation-based risk network model for decision
support in project risk management. Decision Support Systems, 52(3), pp.635-644.
6. Ganguli, S. and Roy, S.K., 2011. Generic technology-based service quality dimensions
in banking: Impact on customer satisfaction and loyalty. International journal of bank
marketing, 29(2), pp.168-189.
7. Ganguli, S. and Roy, S.K., 2011. Generic technology-based service quality dimensions
in banking: Impact on customer satisfaction and loyalty. International journal of bank
marketing, 29(2), pp.168-189.
8. Geraldi, J. and Lechter, T., 2012. Gantt charts revisited: A critical analysis of its roots
and implications to the management of projects today. International Journal of
Managing Projects in Business, 5(4), pp.578-594.
9. Hui, F. and Rudkin, K., 2010, July. An analysis of visual images and associated motifs
in the annual reports of HSBC, 1958-2008. In Sixth Asia Pacific Interdisciplinary
Research in Accounting Conference, Sydney, Australia (pp. 12-13).
10. Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to
planning, scheduling, and controlling. John Wiley & Sons.
11. Leeflang, P.S., Verhoef, P.C., Dahlström, P. and Freundt, T., 2014. Challenges and
solutions for marketing in a digital era. European management journal, 32(1), pp.1-
12.
12. Makienko, I. and Bernard, E.K., 2012. Teaching applied value of marketing research:
A questionnaire design project. The International Journal of Management
Education, 10(2), pp.139-145.

13. Meredith, J.R. and Mantel Jr, S.J., 2011. Project management: a managerial
approach. John Wiley & Sons.
14. Mir, F.A. and Pinnington, A.H., 2014. Exploring the value of project management:
linking project management performance and project success. International journal
of project management, 32(2), pp.202-217.
15. Navarro-Rivera, J. and Kosmin, B.A., 2011. Surveys and Questionnaires. The
Routledge Handbook of Research Methods in the Stduy of Religion. London:
Routledge, pp.395-420.
16. Neuman, W.L., 2013. Social research methods: Qualitative and quantitative
approaches. Pearson education.
17. Norman, E.S., Brotherton, S.A. and Fried, R.T., 2010. Work breakdown structures: The
foundation for project management excellence. John Wiley & Sons.
18. Oldham, G.R. and Da Silva, N., 2015. The impact of digital technology on the
generation and implementation of creative ideas in the workplace. Computers in
Human Behavior, 42, pp.5-11.
19. Oluwatolani, O., Joshua, A. and Philip, A., 2011. The Impact of Information
Technology in Nigeria's Banking Industry. arXiv preprint arXiv:1108.1153.
20. Sheard, S.A., 2012. Assessing the impact of complexity attributes on system
development project outcomes. Stevens Institute of Technology.
21. Sia, S.K., Soh, C. and Weill, P., 2016. How DBS Bank Pursued a Digital Business
Strategy. MIS Quarterly Executive, 15(2).
22. Taylor, S.J., Bogdan, R. and DeVault, M., 2015. Introduction to qualitative research
methods: A guidebook and resource. John Wiley & Sons.