Analyzing the Impact of Information Technology on Business: Telstra

This report provides a comprehensive analysis of the impact of information technology (IT) on business operations, with a specific focus on Telstra Corporation Ltd, a major player in the telecommunications and media industry. The report highlights the critical need for IT services within Telstra, illustrating how networking equipment, customer service applications, internal communication, and data storage rely on IT infrastructure. It emphasizes the importance of IT for business survival in today's competitive landscape, detailing how IT enhances marketing, improves fault detection, and streamlines business processes. The report also outlines the essential requirements for implementing IT, including cost considerations, planning, design, equipment, installation, and employee training. It further explores the internal and external uses of IT in the telecommunication business, showcasing its benefits such as cost reduction, improved fault detection, revenue generation, and increased business flexibility. The report also addresses the risks associated with IT implementation, including security breaches, privacy concerns, and confidentiality issues. Finally, the report discusses the significance of IT maintenance and monitoring, emphasizing the use of fault detection software and dedicated IT teams to ensure smooth and effective operations. The report concludes that IT is indispensable for business growth and efficiency across all industries, particularly in the telecommunications sector, underscoring its benefits while acknowledging the associated risks.

IMPACT OF INFORMATION
TECHNOLOGY ON BUSINESS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Need of IT services in Telstra Corporation Ltd......................................................................1
Importance of IT for business survival...................................................................................1
Things required to apply IT in Telstra....................................................................................2
Use of IT in telecommunication business..............................................................................3
Risk involved in bring IT.......................................................................................................4
Maintenance and monitoring IT.............................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
In the modern era of technology, it has become important for companies to use those
methods in businesses that are supported by IT. Modern gadgets and equipment can be highly
beneficial in enhancing the efficiency of business irrespective of industry they belong to. Its use
has facilitated the business process in becoming smarter as well as faster. Not a single
department in an organisation is left untouched by its influence of IT technologies (Al-Debei,
and Avison, 2011). For understanding the use of IT in business operations, example of Telstra
Corporation Ltd has been used. It is one of the largest Australian telecommunication and media
firm which builds and operates telecommunication networks. This firm markets mobile, voice
internet access, pay television and other products and services related to entertainment. This
report highlights the components of IT that are used in business, its impact, need, risks involved
and benefits on business and its environment. It also showcases the threats and measures to its
maintenance.
Need of IT services in Telstra Corporation Ltd
Yes, definitely being from the field of networking, Telstra Corporation Ltd needs IT
services. Need of IT services for Telstra is illustrated by these points:
 All networking gadgets works with the equipment of IT services.
 It uses App that felicitates their clients in activating broadband and mobile services.
 This company is providing assistance to many small and big firms by connecting them
with Internet Of things which cannot be possible without using IT services.
 Internal communication inside the firm is also maintained by using IT.
 It is providing assistance to many companies in managing their customer services by
providing network which is again not possible to do without IT.
 Its business of data storage features like cloud is unable to access without using IT
equipment.
Importance of IT for business survival
Information and technology associated with it had made its reach to personal life of every
individual. Hence, this provides opportunity for firms to make use of it in expanding their
business (Battistella and et. al., 2013). Today, in this competitive environment, companies need
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to reduce its costing by making use of IT. Its importance for business survival is illustrated by
these points:
 IT helps its marketing processes to reach to larger part of the masses.
 Detection of faults in its network services can easily be done using software which was
were hard to be found by manual methods (Bigliardi, Ivo Dormio and Galati, 2012).
 IT helps Telstra in making its business process easier line online payments of TV and
Mobile services
If IT is not used properly then their competitors can have edge over Telstra as we have
seen that business processes gets easier by implementing IT technology.
Things required to apply IT in Telstra
For applying IT in this cited firm there are certain requirements. And these requirements
are as follows:
 Cost: Huge amount of investments is needed in applying IT as the equipment, software
and its connectivity through internet is costlier. Developing own equipment can be
beneficial in making cost reductions.
 Planning: There must be an effective team of members that has the role of planning out
its Usage. Plans includes the ways in which it is implemented like its topology and what
is the extent up to which it can be accessed by various levels of stakeholders.
 Designing: An IT service can be effective when it is designed in a proper way. Designing
includes connecting topologies, its access mechanism, medium through which data and
services will be transferred between stakeholders (Calabrese, Costa and Menichini,
2013).
 Equipment: There are several equipment that are required for this purpose such as
computers, routers, LAN cables, Modems, telephones or mobiles, printers, radio signal
towers, BTS and many more.
 Installation: One of the major part is its installation. In Telstra installation is done by the
firm's own already trained employees. Modern software for the business operations are
being installed in the devices.
 Training: Use of new technology or IT services cannot be possible without providing
trainings to the staffs. Its usage is empowered by skilled employees who are trained in
making good use of IT equipment.
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Use of IT in telecommunication business
In order to understand the usage of IT in telecommunication industry, there is a need to
understand that signalling, data transfer, equipment monitoring and maintenance cannot be
possible without making use of IT services (Dutta and Mia, 2011). There are two kinds of usage
of IT i.e. internal and external use.
In order to understand the internal usage, the factor that needs to be checked is that how
company’s employees use IT. Employees use IT for some of these things:
 Making internal communications among themselves.
 Making interaction with clients like if they have any query regarding services or to
resolve issues related to the product and services Telstra is providing.
 To monitor and maintain the network of clients and the company itself.
 To manage data that is generated through day to day operations.
External use of it can be understood by following points:
 IT felicitates customers in resolving their query by interacting with firms officials.
 Using IT helps customers in filing complains and understanding that what is to be when
certain problem arises.
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(Source: NIC card used in telecommunication industry, 2017)

 It empowers suppliers in staying connected with market by use of web based email
services.
Benefits or advantage of using IT in telecom industry:
 Reducing cost: It helps to make cost cutting in its business of providing customer
services or any other kind of product (Jarvis, 2011). For example computer generated
voice customer services replaces man who needed to be paid earlier.
 Fault detections: Any faults in signalling or used equipment can be detected easily by
making use of modern software. Equipment such as OTDR in fibre optic cables helps to
detect faults at the particular place and the calculation of distance is done by software
present in computers.
 Revenue: It helps company in making revenue as the cited firm can provide services to
many number of people at the same time as IT has made its usage simpler and interactive.
People can make payments using online portals or Apps.
 Flexibility in the business: Use of IT has helped the firm to be coming into many
diversified business apart from just connecting people for example providing internet
services.
Risk involved in bring IT
There are several advantages which was discussed above but we must notice a fact that
wherever there is roses there are thorns. Citing this risk involved in implementing information
technology in telecom sectors is illustrated by these points:
 Security: Excessive dependence on Software are increasing the threat of failure due to
any kind of bug generated internally or injected from outside (Zablah and et. al., 2012).
Data are not secured as any cyber-attack can steal the information of the firm can use it
for making profit by the attackers. Information have been endangered to security threats.
 Privacy: Using IT in Telecom sector has not only threatened the privacy of company but
also the privacy of its clients. If the signals are detected in between then there can be
chance that there personal secrecy will be endangered. There are many future plans of
organisation that are saved in the IT devices are in a threat of getting stolen.
 Confidentiality: If any kind of breach is done in the IT system than there is a chance that
many information about firm and their clients can be stolen. There are many confidential
financial and project related information are at risk.
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In order to avoid these posed risk one of two things needs to be ensured such as
installation of protection software which prevents from malware, providing access to the
stakeholders up to the extent that is required, topologies for IT implementations must be selected
smartly.
Maintenance and monitoring IT
In order to effective use IT services it is important for the firm to maintain the services.
And for achieving this target monitoring gets more important. There are several ways to ensure
these two. They are as follows:
 Use of fault detection software can help in detecting the faults arisen in networks and
equipment.
 There is a specialised team that are especially present so as to check and maintain the IT
services.
 Continuous changes in the IT system needs to be make so that it cannot be easily hacked
and its smoothness in operations is being maintained (USE OF TECHNOLOGY IN
BUSINESS, 2017). For example changing the internal architecture of the system.
CONCLUSION
From the above report, it can be concluded that making use of IT services and equipment
in business procedures have made these processes faster, reliable, effective and interactive. This
is irrespective of the industry in which it has been applied. In telecommunication industry, use of
IT empowers the firm’s survival. There are various equipment that are used for this purpose.
Their installation in a proper manner is highly important. IT has several benefits such as
increased revenue, enhanced flexibility as well as reduced cost of operations. There are risks that
also come up with the usage of IT like security, data privacy and confidentiality of information
related to organisations as well as their clients.
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REFERENCES
Books and Journals
Al-Debei, M.M. and Avison, D., 2011. Business model requirements and challenges in the
mobile telecommunication sector. Journal of Organisational Transformation & Social
Change. 8(2). pp. 215-235.
Battistella, C. and et.al., 2013. Methodology of business ecosystems network analysis: A case
study in Telecom Italia Future Centre. Technological Forecasting and Social Change.
80(6). pp. 1194-1210.
Bigliardi, B., Ivo Dormio, A. and Galati, F., 2012. The adoption of open innovation within the
telecommunication industry. European Journal of Innovation Management. 15(1). pp.
27-54.
Calabrese, A., Costa, R. and Menichini, T., 2013. Using Fuzzy AHP to manage Intellectual
Capital assets: An application to the ICT service industry. Expert Systems with
Applications. 40(9). pp. 3747-3755.
Dutta, S. and Mia, I., 2011. The global information technology report 2010–2011. In World
Economic Forum (Vol. 24).
Jarvis, J., 2011. What would Google do?: Reverse-engineering the fastest growing company in
the history of the world. Harper Business.
Zablah, A.R. and et.al., 2012. Performance implications of CRM technology use: a multilevel
field study of business customers and their providers in the telecommunications industry.
Information Systems Research. 23(2). pp. 418-435.
Online
USE OF TECHNOLOGY IN BUSINESS. 2017. Available through:
<https://www.useoftechnology.com/technology-business/>. [Accessed on 12th September
2017].
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