Information Technology's Impact on HSBC: A Business Analysis Report

This report provides a comprehensive analysis of the role of Information Technology (IT) in the success and challenges of businesses, using HSBC Holdings as a case study. It explores how IT facilitates communication, data management, and customer relationship management, and its impact on productivity. The report identifies and discusses ethical and social issues associated with IT in business, such as identity theft and hacking, and the importance of privacy and data security. It also differentiates between various networking technologies and examines the latest developments in Artificial Intelligence (AI). Finally, the report outlines the different stages of the software development lifecycle. The study highlights the critical role of IT in modern business operations, emphasizing the need for strategic implementation to achieve success and mitigate potential risks. This analysis is valuable for students seeking to understand the multifaceted impact of IT in the business world.

Introduction to
Information
Technology

ABSTRACT
Information technology has upgraded the way in which the businesses are running
nowadays. It has helped the companies to growth and develop by automated processing and
system. This report is based on HSBC Holdings which is headquartered in UK. IT plays an
important role in the success of the firm as it helps in better communication and working styles.
The business which uses the technology and takes advantages of the same is more likely to get
subject to the social and ethical issues which may affect its working. The networking
technologies help in transmission of the data. There are seven phases of the software
development lifecycle which helps provides process of developing the software.

Contents
ABSTRACT................................................................................................................................................2
INTRODUCTION.......................................................................................................................................4
LITERATURE REVIEW............................................................................................................................4
ANALYSIS AND DISCUSSION...............................................................................................................5
Identify and discuss the role of IT in the success or failure of a business................................................5
Find ethical and social issues associated with running businesses...........................................................7
Identify and differentiate between different types of networking technologies.......................................8
Discuss the latest developments in Artificial Intelligence......................................................................10
List and explain the different stages of software development life cycle...............................................11
CONCLUSION.........................................................................................................................................13
REFERENCES..........................................................................................................................................15

INTRODUCTION
The information technology is defined as the use of computers in order to store and
retrieve the information or data. Nowadays, its usage has been increased in the businesses as it is
opposed to the entertainment and personal technologies. The term IT is regarded as the subset of
the information and communication technology. The IT system mainly comprises of the
information system, computer system and communication system which also includes the
software, hardware and the peripheral equipment that is operated by the IT users. It is used
commonly as the synonym for the computers and its networks but also it encompasses other
technologies of information distribution like telephones, television, etc. In simple terms, it is a
study, development, design, support, implementation or management of the computer based
system particularly includes computer hardware and software applications (Howell, van Beers
and Doorn, 2018). The organization chosen for this report is HSBC Holdings PLC, a
multinational British investment bank and offers financial services. It is one of the largest bank
in Europe and is headquartered in London, England. This report shall cover the role of IT in
success of business, social and ethical issues in running business, discussion and differentiation
between networking technologies and latest development in the artificial intelligence. Further it
will cover different stages of the software development.
LITERATURE REVIEW
According to Rich Castagna, 2021, Information technologies is referred to as the use of
the computers, networking, storage and other devices, processes and infrastructure for creating,
storing, processing, exchanging and securing the electronic data. It is generally used in the
business operations rather than personal or entertainment purpose. The IT, when used in
commercial purpose encompasses both telecommunications and computer technology.
According to Vivek M. Patil, 2020, the word ‘information’ consists of diverse meanings
from the everyday use to the technical interpretation. The term ‘technology’ is meant as the
application of the knowledge to practical aims of human lives and includes use of tools,
materials, techniques and the sources of power to make the life pleasant and easy for everyone. It

is that technology which is used in producing, storing, manipulating, communicating and
disseminating the information.
According to Nicky LaMarco, 2019, in the era of digitalization, the technology have
caused the explosion in the trade and commerce and because of this, the traditional model of
business has been revolutionized as it gave new opportunities to see the things from new
perspective. It helps in increasing the efficiency of conducting the business. It has been
considered as the source of security and support with its high speed model that can help in
delivering the customers with enhanced offering.
ANALYSIS AND DISCUSSION
Identify and discuss the role of IT in the success or failure of a business
In the digital era, innovation is a great way for getting success. In the path of innovation
in the business, it is meant as doing something different, better and smarter which can create
positive difference in terms of the quality, productivity and value by the usage of emerging
technologies in the world. The success of the business mainly depends upon many factors such
as accurate analysis, future vision and ofcourse choosing the right technology. It is proved that
the com[anise which makes investment in the technology and takes the path of innovation tends
to become successful and increases their financial figures, market share and the overall
competitiveness (Panda and Rath, 2018).
The information technology has dramatically changed the business world. It is said that
leveraging the information technology for the success of business is considered as the key to
survive in modern world of business. HSBC uses the information technology in their business
operations so that they can provide enhanced services to its customers and retain their loyal
customer base. The role of Information technology in the success of HSBC Holdings is discussed
below-
 When a business leverages the information technology in its working, it helps in making
the communication easy. It is true that communication plays an essential role in
maintaining the good relationship with the supliers, workforce and even the customers.
Using information technology helps in simplifying the ways in which communication can

be held. HSBC uses information technology to communicate with its stakeholders by
using emails, phone calls, social networking sites and even the video calling so that the
communication is maintained.
 Information data is also very essential for the business and is considered as the valuable
resource in order to keep the data secure. Management information system is a part of
information technology which helps the businesses to track their sales data and
information regarding the profits so that the return on the investment can be maximised
and the areas of improvement can be recognized. HSBS makes use of the management
information system so that it can track the details of its investment and keep an eye on the
returns and profits.
 The business which uses IT helps them in making improvisation in the way in which the
customer relationship can be designed and managed. The customer relationship
management system is aimed to capture the relationship which the company shares with
the customers. HSBC uses the customer relationship management system so that it build
positive relationship with its customers as it enables customer to make the call to the
centre and making reporting of the issue so that the customer relation officer can see what
is the query of customer and respond to the issue effectively. It helps in enabling the 24
hour service for the customers.
 The information technology has made the working of businesses easy. In the pandemic
of Covid-19 where the whole nation was under the lockdown, the information technology
provided access to the employees to work from home. It helped the businesses to have
increased productivity even when the physical work was not possible (Suppatvech,
Godsell and Day, 2019). HSBC also made the effective use of the information technology
and carried on its business from home. It enhances the productivity the performance of
the employees as they were offered flexibility in the working from home as compared to
physical work in the offices.
Thus it can be said that the businesses have made their goals to become successful as it
provides speedy gain and information sharing so that the productivity and performance of the
business can be enhanced. It also helps in taking off the burden from the staff and makes
their working easy and smooth.

Find ethical and social issues associated with running businesses
When there are benefits attached with using the information technology in the businesses,
there are several issues also which may arise when there is deployment of the information
technology in the business. The growth of the affordable technology has created many shifts in
the way in which the society operates.
The social issues are generated as the direct result of the technological advancement. HSBC
also faces many social issues which are attached with running the business by using technology
in it. Some of them are discussed below-
 Identity theft- Fraud is considered as the spurious activity which has been evolved in the
recent times in the wake of the easily accessible computers and internet. One of the most
fraudulent activities is the identity theft wherein the personal information of the people is
harvested by the third party and is used for the malicious purpose. It also includes the
illicit online transactions that can cause serious ramifications. HSBC is a large financial
service provider who has data of large number of customers and staff. So this issue is
very serious in the company as it may cause harm to its customer, thereby breaking trust
if customers.
 Hacking- It is also one of the social issue prevailing in the society wherein the
unauthorized third party tries to hack the data of the business and use them for illicit
purpose. HSBC has to deploy good security technologies which can help the bank to keep
the data of each of the customer customers. The banks contain every personal detail of
the customer and there are many financial frauds being getting prevailed. So the
businesses must take of this issue in order to maintain the trust of customers (Huda,
2019).
Ethical issues
As there has been a leading advancement in the information technology, it is essential to
have knowledge of all the social and ethical issues so that these can be dealt with immediate
effect. Some of the ethical issues faced by the businesses such as HSBC are discussed below-
 Privacy- While there are many cases relating to online identity theft, the issues of the
privacy is also widespread. The businesses are using social media accounts to do the

background check on the employees. It is a great concern of issue for those who have not
used the privacy setting in order to prevent any person from looking to the details. HSBC
deals with end number if customers and nowadays, the privacy has been a great issue of
concern as it has to take care of each customer and employee’s privacy so that there is
breach or violation of privacy.
 Access of right- It involves damaging the business system and thereby resulting in the
loss of information and resources. The businesses face many issues which arises from the
actions such as intentional destruction or the alteration of the files that can cause loss of
resources. One such example of this is virus (Saoud and Jung, 2018). HSBC must ensure
that it has anti viruses installed in its system so that there is no loss of data or resources of
the bank.
Identify and differentiate between different types of networking technologies
A computer network technology is a system which allows the businesses and institutions
to send the data digitally with the help of the information system. Wherein the data is transferred
between two or more of the computers by using the communication mediums such as wires or
cables, it is known as the computer network. In the same manner, when the data is transmitted
between two or more of the mobile devices by usage of the cables or wires, it is called as mobile
network.
The technology that is used in the exchange of data between the large and small
information is networking technology. It may be used in businesses and educational institutional.
With the usage of networking, the users are enabled to send the messages, files via emails or any
other channels that are based on the requirement of the company (Shichtman, 2020). There are
different types of network technology which can be used by the HSBC Holdings that are
discussed below-
The classification of the network technology is based on scale and transmission. By using
this, there can be data exchange and transmission in an easy manner.
Network technology on the basis of transmission-

 Point to point- In this, when the receiver and sender are directly connected, the
transmission of data can be done y using the guided medium that is used for the wired
network and wireless network.
 Multi point- In this, there are several nodes that are directly connected with help of the
common medium in the linear manner. This type of transmission works mainly on the
connections such ad time sharing.
On the basis of scale
 Local Area Network- It uses the devices such a laptops, mobiles, computers which are
connected in small range between 100m- 10 km.
 Metropolitan Area Network- It includes many LANs that are united jointly by
networking devices such as Bridge and it then forms MAN.
 Wide Area Network- In order to jointly unite many WANs by the networking device
which is called as route and it creates the WAN.
 Personal Area Network- It is the computer network which allows the communication
between the computer devices that are close to the person. Its range is in meters only
(Aljanabi and AL-Hadban, 2018) .
Basis WAN LAN MAN
Ownership It might not be owned
by any one company.
It is owned by private
individual
Its ownership may be
public or private
Speed of
transmission
The speed of
transferring data is
low
The speed of
transmission of data is
high
The speed of the data
transmission is average
Propagation
delay
There is a long
propagation delay in
this.
There is short
propagation delay.
There is moderate
propagation delay.
Congestion There is more
congestion as
compared to MAN
(Mariotte and Starr,
There is less
congestion in this.
There is more congestion.

2018).
Maintenance and
delay
The design and
maintenance is
difficult than the
MAN and LAN.
The maintenance and
design of this is easy.
There is difficulty in
design and maintenance of
MAN ad compared to
LAN.
Discuss the latest developments in Artificial Intelligence
Artificial intelligence is something which leverages the machines and computers to
mimic decision making and problem solving capabilities of human mind. It is the ability of the
computer or the robot that is controlled by the computer do complete the task which are done
usually by the humans because it requires human intelligence and the discernment. It is changing
the information technology industry and created the positive impact on the way this sector
works. From modernizing the financial streams and healthcare to the manufacturing and
research, everything is changed in just a blink of the eye (Kneuper, 2017).
It is a branch of computer science which is aimed to turn the computers into the
intelligent machines. HSBC is a large bank which offers the financial services to the customers.
It makes the use of the artificial intelligence in its operations so that it can provide enhanced
services to the customers. Some of the developments of Artificial intelligence is discussed
below-
 Secure system building- The data security holds important place when it comes in
securing the confidential data. The businesses stores tons of information of customers and
staff which are required to be kept safe all the times. The artificial intelligence provides
the necessary security to the data by creating the layered system of security so that high
security layer is enabled. HSBC uses this so that it can timely identify the data breaches
and threats and provide necessary solution in order to avoid it.
 Improved productivity- The artificial intelligence makes use of series of algorithms that
are directly applied in order to aid programmers when codes are to be written better and
also helps in overcoming the software bugs. It provides suggestions for coding that helps
in increasing the productivity and efficiency. HSBC uses the AI so that it can use series

of algorithms in order to increase the efficiency of workers as they are able to work
smoothly with the help of AI.
 Automating processes- The biggest advantage of the automation is that it makes the
working easy and without the intervention of humans. HSBC uses this process so that
there are automatic changes in the data of customers when they avail the services of bank
such as withdrawing or depositing the money, etc. (Haenlein and Kaplan, 2019)
List and explain the different stages of software development life cycle
This is an application of the standard practice of business which helps in building the
software applications. It mainly outlines the each of the task that is required to be put together
the software application. Its stages are discussed below-
 Planning- In this stage, the project leader evaluates terms of project which involves
calculating the material and labour cost, creation of time table with the goals and making
project teams. It basically involves planning of whole process.
 Define requirements- This is regarded as a part of planning were it is determined as to
what the application is required to do and its other requirements such as resources to
build the project.
 Design and prototyping- It basically models as to the way in which the software
application shall work. Some aspects of design involve architecture, platform, user
interface, programming, security, communication, etc. Prototyping is also a part of design
stage which involves early version of software in iterative software development model
(Wang, Liu and Kato, 2018).
 Software development- It involves writing the program. A smaller project may be written
by the single developer but the large project requires broking it and then several teams
work on it. It involves the coding process as well.
 Testing- It is one of the critical stage where the application is tested before it is made
available to the users. Some of the testing can be automatic such as security testing and it
is done in the specific environment.
 Deployment- Now the application is available to the users. Some organizations prefer to
make this process automated such as by payment portal and downloading the link on

website of company. It can also be one by downloading the application on the
smartphone.
 Operations and maintenance- The development cycle is finished almost and the
application is being used by the people but this stage is important it discovers the bugs
which were not identified during the testing stage. It involves fixing the bugs (Shylesh,
2017).

CONCLUSION
It is concluded from the above report that information technology has changed the way
businesses work as there is advancement in the technology which have made the working easy.
The information technology plays an important role in the success of business as it helps in
maintaining customer relations, smooth communication and even working. There are many
ethical and social issues faced by the businesses when using the information technology such as
hacking, identity theft, breach of privacy that makes the business difficult. MAN, LAN and
WAN are the networking technologies which helps in transmitting the data in their specified
range. Further the software development lifecycle comprises of seven stages that helps in
developing the software.

REFERENCES
Books and Journals
Aljanabi, A.R.A. and AL-Hadban, W.K.M., 2018. Information literacy and learners’ satisfaction:
The mediating role of social networking technology usage. Information and Learning Science.
Haenlein, M. and Kaplan, A., 2019. A brief history of artificial intelligence: On the past, present,
and future of artificial intelligence. California management review. 61(4). pp.5-14.
Howell, R., van Beers, C. and Doorn, N., 2018. Value capture and value creation: The role of
information technology in business models for frugal innovations in Africa. Technological
Forecasting and Social Change. 131. pp.227-239.
Huda, M., 2019. Empowering application strategy in the technology adoption: insights from
professional and ethical engagement. Journal of Science and Technology Policy Management.
Kneuper, R., 2017. Sixty years of software development life cycle models. IEEE Annals of the
History of Computing. 39(3). pp.41-54.
Mariotte, H. and Starr, T., 2018. Access and home networking technology standards. IEEE
Communications Standards Magazine. 2(1). pp.72-72.
Panda, S. and Rath, S.K., 2018. Strategic IT-business alignment and organizational agility: from
a developing country perspective. Journal of Asia Business Studies.
Saoud, J. and Jung, T., 2018. An ethical perspective of the use of AR technology in the tourism
industry. In Augmented reality and virtual reality (pp. 33-46). Springer, Cham.
Shichtman, D., 2020, October. Using the Pandemic as a Case Study: Teaching Social and Ethical
Issues. In Proceedings of the 21st Annual Conference on Information Technology Education (pp.
285-290).
Shylesh, S., 2017. A study of software development life cycle process models. In National
Conference on Reinventing Opportunities in Management, IT, and Social Sciences (pp. 534-
541).
Suppatvech, C., Godsell, J. and Day, S., 2019. The roles of internet of things technology in
enabling servitized business models: A systematic literature review. Industrial Marketing
Management. 82. pp.70-86.
Wang, J., Liu, J. and Kato, N., 2018. Networking and communications in autonomous driving: A
survey. IEEE Communications Surveys & Tutorials. 21(2). pp.1243-1274.