Analysis of Information Technology in HSBC's Service Sector

This report examines the role of Information Technology (IT) within HSBC, a prominent multinational investment bank in the UK's service sector. It highlights IT's contribution to HSBC's success through various activities like promotions and advertising, aiding in effective decision-making. The report addresses social and ethical issues, such as hacking and privacy concerns, and their potential negative impacts. It analyzes networking technologies like LAN, WAN, and MAN used by HSBC for customer and partner interactions. Furthermore, it explores the benefits of the internet and intranet for HSBC and discusses the system development life cycle's role in enhancing organizational productivity. The report covers communication, decision-making, promotion, and advertising aspects, while also focusing on ethical challenges like lack of privacy and security and social issues such as communication breakdowns and cyberbullying. It provides a comparative analysis of different networking technologies and emphasizes the importance of the internet and intranet in business operations, concluding with an overview of IT's potential benefits and drawbacks for organizations investing in IT.

Introduction to
Information
Technology

ABSTRACT
The main motive of this report is to discuss about the information technology in service
sector. For this report, HSBC organisation is considered that is most famous multinational
British investment bank of UK. This report mainly explains the role of IT in the success of the
organisation due to their activities such as promotions, advertisement so that organsiation can
take right decision. Moreover, this report also discusses about the social & ethical issues such as
hacking and poor privacy etc. can provide the negative impact on the operations of the
organisation. This report also analyses the various networking technologies such as LAN, WAN
& MAN that mainly used by HSBC to easy access of the technology and create effective
interaction with the customers & also partners. Lastly, this report also discusses about the
benefits of internet & intranet for the HSBC and analyse the information regarding the growth of
life cycle which can help to increase the productivity of the organisation.

Table of Contents
ABSTRACT ...................................................................................................................................2
INTRODUCTION ..........................................................................................................................4
MAIN BODY ..................................................................................................................................4
Role of Information Technology in the success of business organisation...................................4
Different social & ethical issues that concerns running business................................................5
Identification & difference in various kind of networking technology.......................................7
Importance of intranet & internet in business..............................................................................8
Define different stages of system development life cycle...........................................................9
ANALYSIS AND DISCUSSION.................................................................................................10
Potential benefits & drawbacks for an organisation while investing in Information Technology
....................................................................................................................................................10
CONCLUSION .............................................................................................................................11
.......................................................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Information technology is considering structured technological framework that can provide
the platform to the organisation in which all the operations and task done in an effective manner.
Information technology refers as the maintenance and develop of the software’s, network and
systems that can help in the distribution of the data processing in an appropriate manner.
Information technology can help to provide the easily access of the computing and designing the
data and also communication purpose. For this report, HSBC organisation is chosen, which is
1865 and the headquarter of this bank London. This organisation comes under service and
provide various financial services like retail banking, investment banking, corporate banking,
wealth management, insurance and finance etc. the main purpose of this report is to identify the
role of the IT in respect of success and failure of the organisation and also discuss the various
ethical & social issues related to the informational technologies. This report also discusses about
the different type of network system and also determine the benefits of internet & intranet in
term of business. Moreover, this report also discusses the various stages of development life
cycle in a systematic manner.
MAIN BODY
Role of Information Technology in the success of business organisation
Information Technology changed the whole scenario of the business and also provide the
help in change the living standard of the individual. With the help of information technology,
organisation can easily operate their business activities like online shopping, cloud computing,
digital marketing and social media networking etc. are considered the useful activities that can
help to define the specific role of the information technology as per the business context. It is a
fact that success of every organisation is depend upon the various factors related to the
information technology (Venne, and Doerr, 2018). There are various types of role of
Information Technology which provide the profitability to the organisation. The role of IT in
context of HSBC is discussed below-
 Communication with the Customers - With the help of information technology,
organisation can easily communicate with their employees and also their customers. IT
allow easily interaction with an effective manner so that all the operations in the
organisation can complete in effective manner (Bakshi, Sinharay and Som,2016).

 As per the current business environment, it is essential for the organisation to adopt the
useful consideration of the information technology. HSBC is a famous organisation that
mainly deal with the financial and banking services so that it is prominent for the
organisation to follow the latest technology so that every customer can easily use the
organisation services which can helpful to boost the preformation of the organisation and
help to make organisation successful. With the help of IT, organisation can easily
improve the sales and profit (Crandall, Cook and Schmitter-Edgecombe, 2016). Help in Decision Making - IT also play a prominent role to provide help in the decision
making of the organisation. In context of role of IT as per the organisation, it can be
determining that for the successful consideration of the organisation it is important to use
the accuracy and speed mainly come from the usage of information technology. Every
organisation need to use IT so that it makes easily for the organisation to take appropriate
decision which will help for the development of the organisation. Through specific IT
tools and technology like Microsoft CRM, Google analystics are helpful to provide the
relevant information related to the customers. IT can help HSBC to take the right
decision as per the current market situation (Khan, and Naqvi, 2018).
 Promotion & Advertising – Information technology can play a prominent role in the
promotion & advertsing activities of the organisation. IT can considered as the specific
part of the business that can help to attact the large population so taht organiation can
easily improv their market position. In context of HSBC, information technology can take
care about the each and every operations and help to promote the products and services of
the organisation and cover the large number of population. There are various online
platforms that can help to promote and advertise the company products and servicves
such as Twitter, Instagram, Facebook etc.
Different social & ethical issues that concerns running business
Every organisation faced many social and ethical issues which can provide the negative
impact on the performance of the orgqanisation. Ethical and social issues crerate the various
problems that need to think about the organisation. The description of ethical and social issues in
context of HSBC are given belwo-
Ethical issues concerned with HSBC

 Lack of privacy & security – This is considered as the major ethical issue of that need to
focus ofd each and every organisation. It is essentail to focus on the secutity and privacy
of sensitive information such as account number, speciifc documents, files , personal
information and card number etc. HSBC need to take care of each and every information
and data to thier rivales so that they can take more competitive advantage as compared to
their competitive. If organisdation not take care about the security of the employees
details and confidential information then it will affect the operations of the organsioation.
Lack of trust and tack of believe are considered the main reason for this ethical issue
(Kulkarni,Patil, and Shewale, 2020).
 Hacking – This is also considered the criminal ethical activity that can create the big
porblem for the organisation. There are many hackers are in the market that are mainly
hired by the rivaels to leak the confidential information about the organisation. HSBC
need to take care about this situation and also pay moe attention in this issue to that no
one can easily hack the information and details about the organisation. Organisation need
to follow some set of laws and regulations so that it make easiy for the organsiation to
reduce the chances of this issue.
Social issues concerned with HSBC Communication breakdown – This is containing as the big social issue that provide the
dirrect impact on the communication process of the organisation and affect the face to
face interation with the customer and employees. But in this time information technology
can provide the main role to reduce this issue like with the help of social media channels ,
organisation easily communicate with their customers and addressed their issues so taht it
will make easily for the organisation and customers both. HSBC sometime face the
communication breakdowen which affected the day to day working of the organisation.
 Cyber bulling - Cyber bulling also a big issue that can affcet the working of the
organsiation and craete many problems for the ortganisation. HSBC also conduct their
business through online platform so that there are many chances for cyber bulling. People
feel very reluctant to share their information with any stranger or any organisation. It will
consider the big social issue that is damage for the reputation of organisation both at
national and international level

Identification & difference in various kind of networking technology
Network technology referes as a technology that can provide the help to make eaisly access
of the internet from anywhere. With the help of network technology, individual can
communicate with the everyone. HSBC use various network technologies to communicate and
also operating every activities via internet. The description of all these types of network are
given belwo- LAN - It is also known as Local area network that provide local are connectivity to the
user and provide connectivity to the smaller area & coverage. This network is privately
owned and also secure network which mainly covers a limited and specify geographical
area such as school, buildings and home, etc. LAN is also useful to connect the computer
systems & another networking devices and so helpful to share the specific resources &
create the interaction that can take place in the desired and specific manner LAN network
is small in size. For instance, HSBC can conduct the wireless conection with the helpm of
LAN (McKenzi., Burt. and Dukeov, 2018). MAN - It is also called as metropolitan area network that relatively new type of network
that connect with people and area easily and cover more area. MAN is considered as big
network technology as compared to LAN but this network is smaller than WAN
technology. This netwrok can cover the whole single city and copver the limited areas of
100 KM. This network technology also used by the HSBC so that its different branches in
the city can be interconnected in a specific manner. (Schwalbe, 2015).
 WAN – It is also called as wide area network that is interconnection with hundreds of
LAN which can cover the wide area and provide the proper interaction
& communication. WAN is more capable to connect and cover whole areas with the help
of LANs that is considered to cover across a country and continent.
Difference between networking technologies
LAN MAN WAN
 LAN (Local area
network) is limited
with the area like
house, office, hospital
etc.
 MAN (Metropolitan
area network) is cover
the whole city, town
and small region.
 WAN (Wide area
network) contain the
unlimited connectivity
and set large range
which cover the whole

country and an entire
continent.
 Cost need to setup the
LAN is very low as it
needs less type of
hardware
 Cost for MAN is
higher than the LAN
becasuse it cover the
more area as compared
to the LAN.
 Cost of this nertwrok
WAN is very
expensive and it use
large number of
hardware.
 Bandwidth of this
network is less
 Bandwidth of this
netwrok MAN is
higher as compared to
the LAN.
 WAN network contain
highest bandwidth
 Data transmission
range of this network
LAN is low that up to
1 Km.
 Transmission range of
this network MAN is
high than the LAN that
is around 100 Km.
 WAN contain the high
data transmission range
taht is more than 100
Km.
Importance of intranet & internet in business
There are many importance of the intranet and internet in conext of HSBC organisation are
given below-
Importance of internet for organisation
Internet can help to connect the business with their customers so that they can easily
communicate and build a strong network. Communication with the help of internet is very
effective that directly influence the all business activities in a positive way. With the help of
internet anyone can know each and every facts about the business and also make their doubt
clear with the help of feedback and review. It is considered the cheapest and fastest way to do a
business. HSBC use internet to operate all the operations in an effective manner and it also help
to establish the good interaction with the customers. Internet basically consider the online market
research that helpful to measure the busying conditions and habits of the customers. Internet also
help to reduce the cost of the operational process and also eliminate the wastage of production in
an efficient manner. Through social media, HSBC effectively doing their business and also use

email, social media network, follow communication channel so that all the day to day operations
complete in an effective way.
Importance of intranet for organisation
Intranet refers as intrinsic network that mainly allow the access to the limited users
mainly organisational employees and other staff members. Intranet basically work accordance to
the internet technology & also provide similar benefits to the users but at lower level. HSBC
consider as the big service sector that basically take appropriate help from intranet so that all the
information, data, application and project process in an effective manner. With the help of
intranet, organisation can create secure place for the employees where all the employees can
operate their business activities and they also can develop the effective process that can help to
maintain the operational activities.
Define different stages of system development life cycle
Every organisation need to use the development cycle that can help to maintain the each
and every operation and also help the organisation for development and growth. This
development system cycle work like a strategic framework that involved various steps for the
software development in each and every phase of the business operations. There are various
stages of system development life cycle as which are followed by the HSBC are given below- Requirement & analysis – This is considered the first stage that address all the
requirements of the customers and also help the organisation to collect the appropriate
information and apply some modification in their products and services so that
organisation can satisfied the expectation of the customers. HSBC focus on the
requirement of the customers and conduct some market analysis so that organisation can
develop their operations. Design – In this second phase, all the collected information can work as an input and
applied in software so that it make easily for the HSBC to implement all information in a
effective manner for the system development. Implementation - This is considered the third stage that conduct implementation all the
raw and useful information and maintain the coding so that designed software can help in
the further transformation of the resources. HSBC use various components that can help
in the implementation of the development of the organisation.

 Testing – After the implementation of the information it is important to conduct the
testing of the developed software that can help to maintain the all the details in an
effective manner. With the help of testing, HSBC can easily analyse the data and
appropriate information and use for the development of the organisation. Deployment – After the testing the various product & services , it is also important to
deployed the production environment and also help to satisfy the requirements & of
customers. In case the demands are not easily satisfied then process also repeated again.
 Maintenance – This is considered as last stage if thsi systemj development cycle that
maninly periodic maintenance the software that provide the high outcomes that can be
obtain properly. This app can provide the benefits to the HSBC in improvement the
experience of customers during shopping.
ANALYSIS AND DISCUSSION
Potential benefits & drawbacks for an organisation while investing in Information Technology
Benefits of investing in IT
There are various advantages that can be taking by the HSBC due to the investment in the
IT. In term of few advantages are given below –
 Some benefits of the investment in IT can boost the performance level of the organisation
and create the effectivge relationship with the customers and clients. It can help in the
easily intraction and communication of the organisation. HSBC take various advantage
that can provide the positive impact on the organisation (Roth, Battegay, Juchler, elt.al.
2018).
 Information technology is providing many benefit to HSBC and provide many facilities
in the process of the organisation and generaqte the strategic thinking & knowledge that
can easily transfer to the organisation can easily develop efficient strategies
Drawbacks of Investing in IT
IT can offer the various benefits to the organisations but there are few disadvantage that
mainly investing in IT. In term of HSBC, these are some disadvantages which are discussed
below-
 Implementation of IT mainly need high amount of the capital. organisation will need to
spend high level of expenses in the training to their employees how to use the technology
for organisation purpose. This is very expensive and high in costs .

CONCLUSION
As per this report it can be concluded that the role of IT in respect of the organisation is
more and it can help to make easily access of all the operation so that organisation can craete
effective intraction with their clients and customers. This report discussed about the
importance of the IT and also determine the variosu issues realated to the social and ethical
issues and it is found that hacking and lack of privacy considered the most affected isseus
that provide the negative impact on the working of the organisation. This report also
discussed about the benefits of internet and intranet for the organisation and also discussed
various stages of IT.

REFERENCES
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