Information Technology Role in Business: Direct Line Group Analysis

This report analyzes the crucial role of Information Technology (IT) in modern business, emphasizing its impact on productivity and profitability. It examines the significance of network technologies for data transmission and the importance of IT in the success and failure of businesses, using Direct Line Group as a case study. The report delves into ethical and social issues, including cyber-crime and data management, and explores the advantages and drawbacks of IT investments. It differentiates between wired and wireless network technologies, including LAN, WAN, and PAN, along with technologies like Broadband over Power Lines and DSL. The report also briefly examines the stages of the System Development Life Cycle.

Introduction to Information
Technology
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ABSTRACT
Information technology refers as an application in context of business, which offers the
various type of actions related store, retrieve and manipulate the data or information. In this
study, it can be identified that IT plays crucial role in the modern aspects of business that will
increase the productivity and profitability of organization. with increasing the technological
progress in the organization that needed to implement the network technologies for data
transmission. Although, these types of technologies are used to improve the existing structure of
organization for controlling and maintaining the information. Furthermore, it has been
summarised that the ethical and social issues that applicable in the business. In this report, it has
been determined the specific role of information technology in both failure and success of
business, where it has been analysing the of internet and intranet in the business because it helps
for managing the communication between one or more networks. However, it briefly analyses
different stages of system development life cycle in system development.
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Contents
ABSTRACT....................................................................................................................................2
INTRODUCTION...........................................................................................................................4
LITERATURE REVIEW................................................................................................................4
ANALYSIS AND DISCUSSION...................................................................................................6
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Information technology is a type of application that can use to retrieve, store and manipulate
the data or information. In the context of business, Information technology is subset of data in
terms of communication technology. It also encompasses with other type of distribution
technologies such as television. IT plays crucial role in the modern aspects of business that will
increase the productivity and profitability of organization. Direct Line group is an insurance
company which is located in UK. The organization was formed in 2012 by The Royal bank of
Scotland. It provides the different types of products such as roadside assistance, direct line and
green flag etc.
This report will discuss about the role of information technology in both failure and success
of business. it discusses about the ethical and social issues that applicable in the organization. It
will discuss about the significance of internet and intranet in the enterprises because it helps for
establishing the communication between one device to another. Furthermore, it will explain the
different stages of system development life cycle for purpose to design an efficient system. It
will also differentiate and identify the different types of network technologies.
LITERATURE REVIEW
The conceptual role of IT in failure or success of “Direct line group”.
Nikolić and et.al. (2019) Information technology has become the integral part of “Direct
line group” that can help for managing the business plan. This insurance firm is based on the
multi-national corporation who will maintain the mainframes system because there are multiple
tasks performed by single computers. Information technology plays important role in the
business world and also useful for achieving the success. Kim and et. al. (2019) There are
significant roles of information technology in the business:
Communication: In terms of communication, Email is important type of principle that
will use for communication purpose between employees and customers. It is also considered as
the drivers of internet which providing inexpensive communication.
Therefore, but its failure due to increase the voice traffic during data transmission.
Sometimes, it also increases the security issues regarding data losing. Information technology is
an advancement in term of communication but it also generates security issues when multiple
vulnerability occurs during data transmission. It has a chance to increase the unauthorised access
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and loss the information. On the other hand, companies are typically purchase the equipment for
purpose to use information technology but it is more expensive set up the entire maintenance.
Data management: It plays important role to track the information of consumer, who
will use the services to the insurance firm. Nowadays, direct line insurance firm store the data in
the electronic device. In this way, it is increased the success of business by implementing the
information technology.
On the other hand, Information technology fails in the data management due to
insufficient storage of information. It is the role of information technology in terms of business
failure.
For Example- FoxMeyer healthcare service organization was largest drug wholesaler.
The annual sales and item shipped around 5,00,000. The organization is needed the best solution
to get real time details of consumers. Due to lack of poor selection of system and no involvement
of end users, insufficient memory will increase the loss of information. Unfortunately, company
faced the financial loss of $1000 Million.
Find ethical and social issues that pertain to run the business.
Paik, Lee and Pak. (2019) All the issues related to technology that conflict with ethics
and society norms comes under categories of social and ethical issues. Ethics refers to the rules
and regulation of individual that will take responsibility on the basis of ethics or code. In context
of information technology, it has been generating ethical issues in Direct Line insurance firm
related security.
Kumar and Nanda (2019) Cyber-crime is a type of ethical issues where unauthorised people
can use information technology to commit criminal activities. It can increase the large amount of
financial losses and even loss of people. Internet services have also increased the growth of
cyber-crime. There are various types of advertising companies offer the services pay per click
but it occurs fraud activity. Hacking is another type of ethical issues when unauthorised person
accesses the security aspects of system. Once hacker has gained the access to system when it
easily theft personal information of people. In direct line insurance company, it can be
considered the ethical issues to maintain the full security which required for company reputation
because direct line has to store the personal data of consumer, who have taken the insurance
services to the organization.
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McCarthy and et.al. (2019) Social issue is one of common problem in society that
influence many people in the organization. It may happen when increase the confliction between
employees within organization. Sometimes, it is considered the important part to resolve the
issues because it is directly affected on the business productivity and profitability.
Failure to develop competencies in the organization is a type of social issue in the insurance
company because due to lack of competencies, it will increase the failure for operating the
information technology at workplace. Employee don’t have an appropriate issues capability to
overcome challenges by operating IT system.
It is the biggest issues but many employees don’t work in properly. In order to increase
social problem but modern societies have changed their opinion, many organizations always
used the information technology for increasing the productivity and profitability in marketplace.
As per discussion, it concluded that ethical and social issues are major part of business
development because it failure to business and organization.
ANALYSIS AND DISCUSSION
Discuss about the potential advantage and drawbacks of Direct line group company investing in
Information Technology.
Information technology is a modern technique that can perform in both positive and
negative ways in the Direct line group. Sometimes, it is not much profitable for organization but
it is gained more popularity when uses the IT technique in the business activities (Steelman and
et.al., 2019). The organization is giving priority to the growth and development so that they
always implementing the innovative technologies for improving the services. Sometimes, it is
very expensive to set up the overall structure.
Advantages:
 It helps to increase the use of internet of things, there are large number of data
transmitted by internet of things. The direct line group always try to connect with home
technology and adopt the new idea for increasing demand in global marketplace.
 The big data analytics technique will help to generate automatic reports of events,
assigned task. It useful for Direct line company to improve the processing and storage
capacity (Saeidi and et.al., 2019).
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 Direct line group must adopt the information technology for data transmission so that
they can use different types of distributed channel for sharing details about services to
consumers.
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Drawback:
 Security issue is a major draw back in the information technology where hackers get
access the identities and target the sensitive information of Direct line firm. The company
may store the details about vendor, customer data, bank records etc. it is a sensitive
information to secure in proper manner.
 The organization is faced the struggle regarding the maintenance of expensive modern
technology. In this way, Direct line group may be losing the client which has a lack of
resources and capital power (Saeidi and et.al., 2019). It is also considered another
drawback because company will not buy that much resources to establish the new
technology for business purpose.
Determine and differentiate between the different types of network technologies.
Network technology is type of application that connect computer system with one or more
groups. It helps for the purpose of communication between one network to another. it allows to
exchange the data between information system which are mainly used for organization (Mittal
and Bhatia, 2019). Network technologies can be classified into two different ways: Wireless
network technologies and wired network technologies.
Figure 1 Wired and Wireless technologies
(Source: Network technologies. 2018)
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Wireless network technologies
It is based on the modern technology that are not connected with any wire. It is mainly
used for business purpose to establish connection between one or more devices. It may include
the radio waves that can implement take place at the physical level of network (Dudin and et.al.,
2019).
Local Area Network
A local area network is a based on the computer network that are relatively cover small
area. It is confined to the group of buildings, rooms etc. It is mainly connected with another
LAN over any distance by using radio waves. It is mainly connected with the workstations and
personal computers. In this way, user can easily share the information from one device to
another.
Wide Area Network
This type of network is mainly covered the wide geographical areas, connect with the
smaller networks such as MAN, LAN etc. It also ensures that users and computers exit in one
location so that they can easily transmit data over network. It is also differentiating between
LAN and WAN where local area network covers group of building and WAN covers wide range
of areas.
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Personal Area Network
A personal area network is based on hardware devices that are connected with centralise
workstation. It provides the facilities of data transmission from one device to another. This type
of network will use in individual smart phones, laptops and computers at workplace. In this way,
employee can easily exchange information from one to another.
Wired network technologies
This technology is mainly used the physical connection between two networks and also
establishing communication between them. The technology has established the wired broadband
connection for the use of business (Kwilinski and et.al., 2019). In this way, employee share the
information or data to other departments.
Broadband over power lines
This technique is delivered the broadband over existing medium or low electric power
distribution network. It provides the services to home, office by using the electric outlets and
connections.
DSL (Digital subscriber line)
It can be worked within existing wires which required the modem plugged into the
phones at office or homes. It useful for providing the reliable services for the business purpose.
The difference between the BPL and DSL is that when DSL applicable for small business
and already exists in marketplace but BPL is emerging technology which is available in limited
areas.
Differentiate between wireless and wired network technologies
Parameter Wireless network technologies Wired network technologies
Installation In this technology, it is very easy
to install.
In this technology, it is difficult to
established the connection where it
will use copper wire.
Reliability It is highly reasonable because it
can break down the entire
network into smaller
workstations (Enríquez and
et.al., 2019).
It is high reliability due to the
existence of wired technique.
Cables have maintained the
performance of data transmission.
Cables Wireless technology works on Wired technology is used optical
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radio waves fibres, ethernet and copper.
Security Weak Strong
Application used LAN (ethernet) WLAN, WPAN, GSM, CDMA
Devices applicable Routers Switches, hubs and bridges.
Table:1
Discuss the importance of internet and intranet in the business.
Saeidi and et.al. (2019) An intranet is a type of private network that can exist within the
business and also consists of various type of interlinked local networks. It may include the
connections by using one or more hardware outside the internet. In Direct line insurance, the
intranet may server the digital communication in which provide the secure area to store, develop
and access the electronic materials in proper manner. It is the most efficient technique to replace
the old business process due to high speed and minimize the errors. The organization can be used
the intranet application that may store in the form of folder where different employees can easily
access the files while offline website can test for the overall functionality of information
technology system, before going online.
Sadiku, Kotteti and Musa (2019) An internet is basically global network system that
mainly use TCP/ IP to transmit data or information in different medium. It is important concept
in terms of network to exchange from one place to another. The internet is mainly severed the
enterprise by developing opportunities in terms of communication, networking, marketing and
data retrieval etc. The insurance company will use the internet to give the services and collect the
information, feedback of client through internet. The organization will perform the
communication through electronic medium which help for developing networks.
Importance
Dudin and et.al. (2019). A Direct line group is focused on the point of communication with
the help of intranet and internet because it provides the access at single point resources. The
organization allows the user to access the public internet by using firewall server while
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organization have an ability to manage the traffic level of incoming and outgoing in proper
manner. It is the simplest ways to established the intranet through Local area network in the
organization. There are common advantages and benefits of direct line group to create robust
intranet.
 It helping the user to view the information or data in faster ways and also use relevant
application that participate significant role.
 Data or information can easily accessible by right users, which enables the whole team
works and also able to communicate with other parties related business production. In
this way, it also sharing own idea which help for increasing the business growth.
 Intranet must be allowed the Direct line group to distribute or share the information to the
employees. Many employees are directly link to the relevant information as possible for
business.
 Many users can view the data through web-browser rather than maintaining and
controlling the hardcopy documents such as requisition forms, phone lists and manual
procedures.
 internet may server the most powerful tool for the purpose of communication within
company. It is great real time example where intranet helps for organization in
communication. The insurance company support the system that deal with large number
of requests for information management.
Explain the different stages of system development life cycle.
System development life cycle (SDLC) is a type of systematic process which easily
explicitly break down work into different phases. It is required to implement the new concept in
the information system (Oshana and Kraeling, 2019). It is based on the conceptual model that
can use in terms of project management. It helps to identify the hardware and software
requirement of system development. It can be classified into different phases to design an
effective system in proper manner.
Planning
It is an initial phase of SDLC, where it can be determined scope of project and decided
that how to perform different actions. In this phase, it will address the issues or problem that
generated during the executions in new system (Kwilinski and et..al., 2019). It is the important
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