Information Technology Applications and Impact on Business

This report provides a comprehensive overview of the role of information technology in business, focusing on its applications, ethical and social issues, and the impact of information and communication technology (ICT). It begins by introducing the importance of IT in enhancing learning and business performance, highlighting its use as a strategic tool for competitive advantage. The report discusses various application software used by businesses, such as Enterprise Resource Planning (ERP), Resource Management, Customer Relationship Management (CRM), Accounting Software, and Business Process Management, emphasizing their benefits in streamlining communication, enhancing workflow, and optimizing operational efficiency. Furthermore, it addresses ethical and social issues pertaining to running a business in the digital age, including personal privacy, access rights, harmful actions, breakdown of communication, identity theft, and online scams. The impact of ICT on business is explored, focusing on improved decision-making, enhanced customer service, and improved financial performance, using HSBC bank as a case study. The report concludes by summarizing the benefits and drawbacks of information technology in the context of a company, emphasizing its role in data management and strategic decision-making. Desklib provides access to similar past papers and solved assignments for students.

Introduction to
Information technology

ABSTRACT
The information technology has an important role in education, business as it helps in
enhancing learning. The use of It helps in completing activities in effective way. It is used as
strategic tool for business which increases competitive advantage and contributes in optimum use
of resources, enhancing business performance. In the organisation several aspects are bring
through information technology such as big data analytics, cloud computing. This helps in
reaching to more customers and new innovative products are offered. The technology term refers
to the skills, methods, process and techniques used in business for the scientific investigation and
production of goods & services. The management of organisation is capable in making effective
decisions and satisfied results are offered that creates strong relationship. In the report there is
discussion on application software that is used by business and role of information technology in
business for managing data and information.

Table of Contents
ABSTRACT.....................................................................................................................................2
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
Literature review .............................................................................................................................2
Analysis and discussion .................................................................................................................3
Discussing different types of application software that is used in business...............................3
Ethical and social issues pertaining to run business....................................................................4
The impact of information and communication technology (ICT) on business.........................5
The role of IT in helping managers to manage business.............................................................7
Benefits and drawbacks of information technology in context to company...............................8
CONCLUSION................................................................................................................................9
References:.....................................................................................................................................10
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INTRODUCTION
The conception of information technology is regarded as developing communication
network for organisation, protects information and data. It is application of computers and
telecommunication equipments for storing, transmitting, manipulating data in business. In this
electronic data is exchanged,processed and stored by the use of computers. The large IT users
operates all hardware, software and peripheral equipments that is involved in computer system of
information technology. To exchange all the forms of electronic data it includes use of
networking and other storage devices (Baker, R.M., 2019) . The use of technology provides the
completion of assigned task on time in efficient manner in the world of business as it is term
defining to skills, methods, processes and techniques that an company use for scientific
investigation and production of goods & services. The business operations are improved with the
technology advancement and technology driven devices as the information is store. For the
report HSBC bank is taken which is established by Sir Thomas Sutherland in 1865. In the UK it
is multinational investment bank And holding company of financial services. The bank has
dealing in asset management, banking commodities, insurance, investment banking and many
more. The report covers different types of application software that is used in business and
importance of increasing ethical and social issues. Further, it discusses the impact of ICT on
business and role of IT in helping managers of business.
MAIN BODY
Literature review
The information technology in present times is considered as mots important tool as it
helps business organisation in enhancing their work operations and increases productivity by
saving time, money and efforts. The use of IT in organisation helps in maintaining records of
employees, data flow & tracks the processes. The computer networks are designed which
involves hardware, software where data is communicated and processed. The demand is
increased and resources are efficiently utilised in business with the revolution of business. In the
organisation of HSBC bank, processes are automate by using different business application
software for improving operational efficiency and to gain actionable insights (Capehart, B.L.,
2020). For different operation there is use of business software that helps in streamline
communication, enhance workflow, and saving time of employees for investing their skills in
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more complex projects. The use of business application software provides benefits in reducing
labour costs, optimizes operational efficiency, quality & consistency in business operations. In
the information technology ethical issues is referred as building communication networks for
company where this issue arises as individuals do not know the correct use of technology. It has
to deal with the issues of confidentiality, privacy etc. The information and communication
technology involves all digital technology which helps individual, business in using information
as it covers all electronic products that deals with information in digital form. The ICT is
concerned with digital data storage, retrieval and transmission. This helps making business more
efficient and prompts responds to customer needs. It also assists the business activities by
involving design, R&D, distribution and sales. Along with this the information technology plays
an important role in business as it helps in analysing specific data and helps in planning business
journey according to trends and information presented in data (Castells, M., 2020).
Analysis and discussion
Discussing different types of application software that is used in business
In information technology, the application software is an computer program that is
designed to help people in performing an activity. It helps in performing specific personal,
educational and business functions each application helps in assisting end-users in achieving
variety of tasks that can be related to productivity or communication. In the application software
it involves things such as database programs, word processors, spreadsheets and web browsers.
In the organisation of HSBC bank several application software are used for enhancing efficiency.
 Enterprise resource planning (ERP) application software- This software helps
organisation of HSBC bank in managing everyday business activities which covers
accounting, procurement, project management, manufacturing and more. The ERP
software helps organisation to plan, budget, predict and report on financial results. This is
also helpful in cost reducing and operation standardizing in HSBC bank. The example of
Microsoft dynamics, oracle-e business suite can be taken (Chiang, and Chang, 2019).
 Resource management application software- This is an simple software that makes
easy in allocating and assigning people projects in accordance to their requirements. The
multiple projects and resources of management are smoothen. Thje example of Forecast,
Mavenlink can be taken for managing manpower of HSBC bank. The resource are the
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essential sector in business. It helps in comparing resources availability with demand and
allocate resources for delivering projects on time and budget.
 Customer relationship management (CRM) application software- This helps the
business organisation to have smart interaction with customers backed up data analysis. It
offers an seamless experience by developing better relationships and helps in
coordinating customer information that is spread across different channels (Dilmurod,
and Fazliddin, 2021). It also helps in enhancing customer interaction between business
and consumer like customer service and transaction. The effective solution helps in
enhancing customer experience. The examples can be Sales force sales cloud, Zoho etc.
 Accounting software- This helps financial advisors in monitoring business performance
by tracking real time expenses, revenue and bottom line. The accountant with up to date
information, can ensure books contains relevant data ad business remains profitable. To
the HSBC bank it records and processes accounting transactions within functional
modules like account payable, account receivable, payroll, trial balance etc.
 Business process management application software- This is designed for enabling
methodical style for optimizing business processes. This defines and describes the
workflow process with ultimate intention of optimizing business for delivering their
goals. The example of Kissflow can be taken (Farjon, and et.al., 2019).
Ethical and social issues pertaining to run business
In the information technology the data and information is used to store, fetch and
manipulate the information through operating system server. There is been growth in computer
technology which caused major shifts in society operators as unlimited information is provided
with internet facility. It becomes essential to have knowledge of security issues, privacy issues
and its negative impact with the leading advancement in information technology (Jimenez-
Jimenez, and et.al., 2019). To run business efficiently there are several issues related to social
and ethical which is considered as important-
Ethical issues
Personal privacy- This is an ethical issue in IT as there is violation of privacy and
disclosing the information of any individual as IT user transfer data and information on large
scale with distribution of network. The user have facility of having hardware, operating system
and other software tools that can be accessed by servers which are connected to each other
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through network. This is an major challenge to maintain privacy and data integrity for
organisation and IT users in context to HSBC bank.
Access right- It is becoming an greater issue for IT and cyberspace with the advancement
in technology. E-commerce and electronic payment system is heightened with the evolution of
internet which is an issue an organisation and government agencies face. The networking from
unauthorised user is not made secured in internet (Laraia, M., 2018).
Harmful actions- This is related to damage or negative consequences to IT like loss of
property, ownership and destruction of property in ethics of computer. The outsider is restricted
in principle of ethical conduct by use of information technology which leads to loss of employee,
users and general public. To recover harmful actions from computer systems the viruses needs to
be reduced by putting more time and efforts.
Social issues
Breakdown of communication- The use of technology helps in improving life of people
and with digitalization business operations are improved. This is considered as social issues as
individuals are involved in their mobile phones, computers which leads to breakdown of
communication and bond is reduced. This creates problem in banking as person can make
transactions from mobiles and reduces interaction between banker and customers.
Identity theft- Fraud is considered as another social issue in easily accessible of
computers & internet. The third patty can have personal information of person which can be used
for malicious purposes of carrying online transactions and other damaging activities. The HSBC
bank brings several privacy sources fop storing information of its customers and employees for
avoiding frauds. (Leong, and et.al., 2018).
Online scams- There are millions of people and business which arrange their working
through internet that facilities electronic transactions. The transaction needs to performed
carefully while navigating on websites. The common scam method is phising that is created by
the combination of words password (code) and fishing. It is an smart technique for revealing the
personal details and information regarding financial transactions.
The impact of information and communication technology (ICT) on business
It is an extensional term for information technology. It is infrastructure and components
which enables modern computing. It encompasses both internet-enabled sphere and mobile one
powered by wireless networks. It is used for handling communication process like
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telecommunications, broadcast media, transmission system and network based control. The
information and communication technology makes business more efficient, effective and
responds to customer needs. This helps in assisting business activities by involving design,
manufacturing, sales etc. This has impact on different aspects of development and growth which
covers the topic related to financial, economic and technological aspects. The importance of ICT
facilitates wide range of services and transactions like online banking and online services which
is provided by companies (Lloyd, I., 2020) . It plays an important role in creating jobs and offers
economic stability. This also facilitates wide range of financial services, increases efficiency,
reducing costs. In context to HSBC bank the information and communication technology has
following impact on company which can be-
 Better decision making- The use of ICT in business of HSBC bank allow to store,
process, analyse and sharing vast amount of data. The information available enables
managers and employees to make quick decisions with accuracy so that operations can be
managed effectively and leading to business opportunities. The communication networks
also enables business decision makers to work together in diverse locations.
 Improved customer service- The company uses ICT solutions for offering fast
responses and high standard of services to its customers. The customer service is
improved is improved as information helps in dealing quickly and efficiently with
inquiries, boosting customer satisfaction (Malik, and Ullah, 2019).
 Improved financial performance- Te solutions of ICT helps organisation in reducing
costs, increases revenue and profitability is improved. It renovates financial structure in
both quality and quantity. It allows in effective management of online services and offers
valuable information to the financial institutions. In the HSBC bank electronic storage
system is created that helps in protecting company records.
 Providing customer satisfaction- The information and communication technology is an
crucial aspect with strong customer support team and requirements of customer
availability is catered. This helps HSBC bank to communicate with customers regrading
their problems and solves them by offering facility of email, social media and other
platforms for messaging (Mauerhoefer, and et.al., 2017). The growth of business is
depended on happy customers. The HSBC bank take use of mobile application for
improving customer queries online.
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 Efficiency in daily operations- The efficiency of business operations is improved by
using information and communication technology which helps organisation in
completing its activity and task on time at lower cost. The HSBC bank take use of
internal software for recording and keeping data of its client. The employees are also safe
and secure which improves work efficiency.
The role of IT in helping managers to manage business.
In economy the benefit of digital tool with digitalization is increased which enhances
business prospects and leads to increase in various innovations. In the organisation IT
departments helps in maintaining communication networks. The information technology role
helps company in being more productive, increase performance and customer experience is
improved (Mohanraj, and Jegadeeshwaran, 2021). This also helps in expanding companies
globally and provides staff access to company information. The role of information technology
in HSBC bank assists business to increase performance, productivity and saves money, time and
efforts. The role of IT in success of HSBC bank is been discussed below-
 Improved organisation communication- In the business the important use of
technology is for communication by platforms of conferencing software, email, company
intranets etc. In the business use of IT allows to hold virtual meetings with clients and
staff. Further, the employees of organisation gets access to information and collaborates
on work too. This enables HSBC bank to communicate with customers and employees
that can help in expanding on global level (Prince, J.D., 2017).
 Better experience of customer- The IT has important role in heightening customer
experience with improved customer service, E-commerce and easily customised
marketing. The company use their websites, social media, emails for having interactions
with customers. There is use of Technology in HSBC bank to have customer interaction
so that customer satisfaction can be boosted. The company revenue and growth increases
as customer make purchases from websites.
 Safeguarding data and information- The information technology play an important role
in protecting the data & information of company against destruction, loss, misuse and
employee confidential information. The IT ensures that they abide by data-protection
laws by safeguarding important information from corruption or losses.
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 Resource management and Globalisation- For the business success resource
management plays an important role in managing all resources which may involves
financial or human resource. The IT plays an important role in automating such critical
problems by establishing user-friendly solutions. The cloud based technology, ERP
solutions are there in HSBC bank (Rafique, and et.al., 2020).
Benefits and drawbacks of information technology in context to company
The technology progresses and traditional banks explore the options of offering online
services. The use of technology in provides various benefits and drawbacks to organisation.
The advantages are as follows-
 24/7 account and service access- With the use of technology online services are
provided to customers that are accessible 24/7 and requires internet connection. The
facility of anytime banking also be given to customers for inquiry facility and cash
withdrawal in context to HSBC bank.
 Protecting and storing information- The electronic storage system is created for
holding information that is shared over internet. The use of IT in banking helps in
protecting information of customers, employees in HSBC bank and security systems are
used for protecting electronic data.
 Automated process- The information technology in HSBC bank provide benefit in
improving company efficiency by implementation of automated process that makes
employees capable of handling large work load along with this reports, queries and
monitoring financial is being completed by computer programs (Zheng, and et.al., 2018)..
The disadvantages are as follows-
 Expense of implementation and Maintenance- The setup cost of implementing
information technology is very costly for business. The training providing on software
can also be an expensive out of budget for HSBC bank. It also needs proper maintenance
from time to time which also incurs upgrading and updating costs.
 Breaches in security- The information is stored electronically which leads to more
chances of data breaches as hackers are evolved with technology. This is drawback for
the HSBC bank as business stores data on remote cloud servers which can be accessed
online with username and password and valuable data can be hacked which can leads to
high loss to company.
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 Technology issues- It is an disadvantage for the HSBC bank as sometime technical
errors occurs which hampers all the working same way in online banking it hampers the
transactions due to server down or power outage.
CONCLUSION
From the above it can be concluded that information technology is wide concept which
helps business, governments and individuals which helps increasing efficiency and effectiveness.
The use of IT offers various new opportunities to companies. The IT helps the company in more
productive, increases performance and improves the customer experience. In the organisation an
separate IT department is maintained where all the important information is stored safely. In this
various application software is used by company which improves efficiency. Further there is
discussion on the ethical and social issues that are important to the business. It also access the
role of information technology in company and impact of information & communication
technology on business that helps in making business efficient and effective. The information
technology has wide impact on business that leads to innovation by creating path of success
through technological advancement.
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