Holmes Institute: IT Impact Analysis on AMP Business (HC1041)

This report examines the impact of Information Technology (IT) on AMP, a financial services company. It begins with an introduction and a case description related to a data breach involving customer data theft. The report explores the need and importance of IT for AMP, highlighting its role in providing digital services, meeting customer needs, and ensuring data security. It discusses the application of IT, including software installation for mobile apps and its cost implications. The report analyzes the use of IT internally by employees and externally by customers, detailing the benefits and advantages IT offers, such as increased efficiency and improved customer service. It also identifies the types of risks associated with IT, such as security and confidentiality risks. The report concludes by emphasizing the importance of maintaining and monitoring IT systems within AMP to protect customer data and ensure operational efficiency. References are included for further research.

It for business
5/28/2019
AMP

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Contents
Introduction......................................................................................................................................2
Case description...............................................................................................................................3
Need for IT......................................................................................................................................3
Importance of IT for survival..........................................................................................................4
Application of IT in AMP................................................................................................................5
Installation of software for the app of AMP................................................................................5
Cost..............................................................................................................................................5
Use of Information technology........................................................................................................6
Internally- Employees..................................................................................................................6
Externally- Customers.................................................................................................................6
Benefits and advantages IT offers to AMP......................................................................................7
Types of Risk for IT to AMP...........................................................................................................8
AMP maintains as well as monitors IT............................................................................................8
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

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Introduction
The aim of the report to search for the current news related to information security breaches to
analyse the selected news to form report. The article related to the data breach that has been
selected is AMP contractor charged with stealing customer data. The company falls under the
financial industry as it offers financial services in the market of Australia as well as in New
Zealand for offering investment and superannuation products. The report will include the AMP
contractor charged with the stealing customer data as Chinese contractors of the company was
charged with the fact that stealing the confidential data of approximately 20 of its customer
policy. According to the case concern, it has been found the need and importance of Information
technology, how it can be applied to the business, benefits, and drawbacks of the IT in finance
and many others element associated with it.

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Case description
The Australian Mutual Provident Society came into existence in the year 1849 but as the non-
profit life insurance company and mutual society. Later on, it was found that in the year 1988 as
it was demutualised into the Australia public company that was listed in Australian and New
Zealand stock exchanges. In the case, it is found that the man with the name of the Yi Zheng
pleaded guilty because of the offence in the court of Sydney (Bloomberg, 2019). It was found
that the New South Wales state police they began with the investigation about the breach just
after the cybersecurity staff observed the suspicious activity majorly on the computer network in
December (CRN, 2019). AMP Company had connected all the influenced customers in order to
put the additional controls in the place for those customers as well as to notify the related
guidelines.
Need for IT
In the competitive market, information technology is required to business because the use of
technology is bringing the changes in the way businesses deliver and operate products and
services for their customers. AMP financial service bank requires the AMP because of the
technology as well as the digital services that they want to provide to their customers. AMP
requires an information system because most of the customers make use of digital services to
ingrain themselves into the different aspects of their lives. The changing need of the customers
for the digital services forces the company to make use of the information system. The customers
are willing to avail the quick services so that they can easily transfer the money and pay for the

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products and service (Schwalbe, 2015). This is possible when AMP can offer them convenient
ways like a mobile app, online services, and many others.
It has been found that AMP not only wants to meet the needs of the customers but they also want
to manage the customer data in the secure hand. The recent breach of the customer data shows
the need for the strong IT software and tool to prevent such kind of issues as this will create an
impact on the trust of customers towards the company. The advanced security system can help
the company to manage all the customer data effectively due to which the company needs the IT
system.
Importance of IT for survival
The competition is stiff and to survive in the market there is a need for the advance information
system as it plays a vital role in the processing of the business. The latest technologies are
important for the company as they contribute to manage all data in an effective manner so that
customers can trust the services provided by the company. The finance industry deals with most
of the breaches that are witnessed with the case of AMP in which they found that the data of
customers was breached (Hendry, 2019). Thus, this company is a concern for security threats as
well as the vandalism. The technology is majorly used to protect the confidential executive
decisions, financial data, and different proprietary information that allow the AMP Company to
manage the competitive advantages due to which the AMP consider is an important factor
(AMP, 2019).
AMP finds the importance of the IT system as they can keep the details safe and the team plays a
vital role. All the operations activities are taken care of by the IT team of the company in which
they need to manage the hardware, software and many other elements. It has been found that

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every finance manager who performs the work make use of the information technology for
making the complex operations into the easy format. Thus, this is the reason due to which IT is
becoming important in the market.
Application of IT in AMP
It is essential for the business to apply IT for which every business need to perform some activity
that is given below -
Installation of software for the app of AMP
The installation of the IT related software is essential for AMP finance as this helps them to
apply the information technology in their system. The software for the app is installed by the
AMP which is essential as later they offer this app to their customers who can browse the
services with the help of the app. AMP can access the finances on the move with the mobile app.
The customers who have the account with AMP can easily register and access the super banking,
insurance, and investment details. Moreover, the installation of the IT software for the app
allows the company to offer the banking service online with My AMP. This allows the customer
to handle the account with the easy, fast, safe, and secure method (Audretsch, Lehmann, Paleari
and Vismara, 2016). The installation of the software will allow the banks to provide the services
to the customers so that they can view the account information, history of transactions, the
transfer of the funds, payment by using the Bpay and many others.
Cost
The cost is considered as one of the essential factors due to which AMP apply the IT in their
business. It has been found that the use of the technology software will reduce the cost, as they

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do not have to appoint staff for that work which is done with the use of technology. However,
this has been found that for applying the effective system of IT makes the company maintain the
high cost. The cost of applying the IT needs huge investment related to purchasing the software
and other tools (Takahashi, 2018). However, the operations of the company are going good so
that they can manage the cost from their profits but still there is need of the funds for investment.
Use of Information technology
Internally- Employees
AMP provides different hardware to their customers that are equipped with different features and
software. These laptop and desktop are used by the employees so that they can meet the needs of
the customers who visit the AMP office for availing the services. It is essential for the employees
to evaluate the market condition while giving advice to the customers of AMP. In the case, it is
clear that the customer has contacted AMP for getting the advice due to which they shared the
details with their customers. The employees make use IT for conducting the complex operations
that include data pulling, research and development of the market, keep checking the transactions
of their customers. The company is committed to raise the standards of professionals as well as
ethics in financial advice (AMP, 2019). It has been found that the major service of the company
is to offer the risk management facilities for which the employees should analyse the market and
the risk are likely to arise. Thus, this is possible with the use of technology as effective
technology helps in getting accurate as well as reliable results.

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Externally- Customers
In the external market, some customers make use of information technology through the mobile
app and online website. The customers of the bank can easily avail the services with the use of
the app as this control their transactions. Also, the customers can take the required actions with
the effective use of APP as they can discover the new possibilities, can take actions, and
complete the entire picture and many others (Baller, Dutta and Lanvin, 2016). This becomes easy
and convenient for the customers as it allows them to make the payments for different purposes.
Benefits and advantages IT offers to AMP
The use of information technology leads to different Benefits and advantages to the AMP in the
market. These are discussed below -
 In the case, this has been found that the consumers are affected as their details were
leaked and these kinds of issues can be resolved with the safe and secure IT system. The
use of IT helps in
 IT offers speed, efficiency and convenience to finance functions within AMP that are
essential as it is one of the vital factors that can bring the improvement in the productivity
of AMP in the market (Laudon, and Laudon, 2016).
 The world of technology is continued to rise and the company implement the same for
offering the services to customers. These services are availed by the customers due to
whom the operations and working of AMP will increase that contribute to enhance the
sales as well as revenue. Thus, the use of advanced technology will allow the AMP to
offer a safe and secure system with this they will be able to attract more customers. This

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is the way through which they can earn high sales and revenue in Australia that is
beneficial for them.
 The knowledge and skills of the managers and other employees will increase the IT
technology that is adopted by AMP. These skills help them to deal with the complex
operations of AMP (Lloyd, 2017). Moreover, the errors by the staff through the entire
year will reduce.
 IT offers the benefit to AMP in the exchange of the financial information between the
different areas to meet the complete needs of the customers. The flow of information is
essential for the major decisions that are required to take by AMP.
Types of Risk for IT to AMP
 Security risk: - It has been found that security concerns are increasing among the people
with the AMP after the case of the customer details breach. It has been found that new
technology is providing a way for hackers to steal the data by breaking the strong security
system available with the company.
 Confidentiality risk: - IT brings the issue of confidentiality within the AMP business, as
people want that, their details remain confidential with the customers. It has been found
that every business wants their details to be confidential because the market is very
competitive (Pilbeam, 2018). In the case of AMP, this has been found that staff of
business observed the suspicious activity majorly on the computer network in December.
Further, it was found that the Chinese contractor for the AMP was guilty due to which the
confidentiality of the customers came out in the market.

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AMP maintains as well as monitors IT
In the current era, the adaption, investment and implementation of the information technology is
not easy for the companies. AMP maintains an IT team who are responsible for the marinating as
well as monitoring the IT within AMP (Filatova, 2018). The IT team monitor the system in
which they check the information system of AMP is performing systematically. Further, they
keep updating the software which is applied by them in business.

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Conclusion
At the end of the report, it can be concluded that the business of the finance industry has recently
faced the customer data breach that shows the role of the IT in business. AMP Company is
performing its business operation in the dynamic market where change takes place frequently.
The application of the IT needs the installation of the app and the cost of purchasing the
technology. It has been found that IT is used by both the internal and external members present
in the organisation that include employees and customers. IT leads to different benefits as well as
advantages with the different types of risk. AMP concerns teamwork effectively in maintaining
and monitoring the IT.

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References
AMP (2019) AMP statement on data breach [Online]. Available from:
https://corporate.amp.com.au/newsroom/2019/february/amp-statement-on-data-breach [Accessed
on 28th May 2019]
AMP (2019) Changing and improving [Online]. Available from:
https://www.amp.com.au/changeandimprove?extcmp=ceo-sem-google-brnd-
1&gclid=Cj0KCQjwuLPnBRDjARIsACDzGL3bTQ2LcuIwlFKtKHLSM9JRLqdAM_2Ep8ILD
J0fgh0cB4l26gl03f8aAulgEALw_wcB&gclsrc=aw.ds [Accessed on 28th May 2019]
Audretsch, D.B., Lehmann, E.E., Paleari, S. and Vismara, S. (2016) Entrepreneurial finance and
technology transfer. The Journal of Technology Transfer, 41(1), pp.1-9.
Baller, S., Dutta, S. and Lanvin, B. (2016) Global information technology report 2016. Geneva:
Ouranos.
Bloomberg (2019) Company Overview of AMP Financial Services Holdings Limited [Online].
Available from: https://www.bloomberg.com/research/stocks/private/snapshot.asp?
privcapId=22745170 [Accessed on 28th May 2019]
Cressey, P. (2018) Technology and banking: the use of information technology. In Information
Technology and Workplace Democracy (pp. 173-192). Routledge.
CRN (2019) AMP contractor charged with stealing customer data [Online]. Available from:
https://www.crn.com.au/news/amp-contractor-charged-with-stealing-customer-data-519001
[Accessed on 28th May 2019]