Holmes Institute T2 2019 HC1041: IT Impact on Business Report

This report analyzes the impact of Information Technology (IT) on businesses, focusing on the National Australia Bank (NAB) as a case study. It explores the bank's need for IT, its importance for business survival, and the requirements for IT application. The report discusses the manner of IT adoption, its advantages such as cost reduction and data security, and the associated risks, including security breaches and online fraud. It also addresses the maintenance and monitoring of IT systems to mitigate these risks. The report concludes that NAB relies heavily on IT for both internal operations and customer services, highlighting the benefits and challenges of its implementation, while emphasizing the need for robust security measures.

HC1041
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Student’s Name

HC1041 1
Contents
Contents
Introduction........................................................................................................................2
Does the business need IT?..............................................................................................2
Importance of IT for business survival...............................................................................2
Requirements for the application of IT..............................................................................3
Manner of adoption of IT....................................................................................................3
Advantages of IT use for NAB...........................................................................................4
Risk of IT use for NAB.......................................................................................................4
Maintenance and Monitor of IT..........................................................................................5
References.........................................................................................................................6

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Introduction
Business is being global and smart and hence using technology these days to serve
their customers and client in a better way than earlier. Different business uses
information technology in different ways. Some of them use it only for its internal
business operations whereas operations of some of the business depend on information
technology (IT). The leading purpose of such use is to gain a competitive advantage in
the market. The company selected for the preparation of this report is National Australia
Bank. The purpose of this report is to seek an understanding of the manner in which IT
is being used by the same. In the presented report, different questions related to IT use
in this business will be addressed such as whether the business uses IT or not, why
such use is important for the survival of the business, what types of risks are involved in
the process and the manner in which they can be mitigated. The report will be ended
with a conclusion that will summarize the key points of the report.
Does the business need IT?
As mentioned, National Bank Australia (NAB or the bank) has selected as an
organization for this report. The bank secures its place in one of the four largest
financial institutions in Australia (Hoek, 2018). The same is having headquarters in
Melbourne city of Australia (Emporis.com, 2019). In order to answer the query whether
the business needs IT or not this is to state that yes, NAB needs informational
technology for its business practices. Company is involved in banking and financial
services and needs IT to provide an online platform to its customers. In each
commercial transaction, transfer of funds or other aspects of banking is involved.
Everyone wants the process fast and to access the bank accounts at any time of the
day. To fulfill these specific requirements of customers NAB needs IT. Without using the
same, a business cannot provide online and continuous access to banking to
customers. Being a bank, NAB has to ensure that none of the customers are facing
issues while doing banking activities such as payment and receipt, the making of
demand drafts and so on
Some artificial intelligence and another type of IT is required in this manner to provide
24*7 support to its customers. NAB has shifted its focus from traditional banking and to
maintain efficient relationship banking, the same needs IT (Mbaknol.com, 2019). Not
only for the purpose of the customer but to communicate with other stakeholders such
as regulators and investors, again IT seems to be highly required
Importance of IT for business survival
IT plays direct as well as an indirect role in the survival of the business. In recent time,
the way of interaction of business with various stakeholders has been changed
(Mycomputercareer.edu, 2016). Business is being global and facing tough competition.
To survive in such a situation, business is required to provide additional services to
customers or existing services in a better and fast mode to customers in comparison to
the competitor (Ramey, 2012). IT helps business in such a situation and increases the

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chances of survival. Further, only that business can survive which is more cost effective
and earns profit. Again, IT plays an important role here and help businesses to earn
more profits as it reduces cost and provides the ability to serve millions of customers at
the same time. When a business earns a profit, there are chances of survival of the
same in the long run. Banking environment is being highly competitive today and to
provide greater advantages to customers, IT is important for the survival of NAB.
Marketing is another aspect, which is needed for the survival of the business. For digital
marketing, business needs IT.
Requirements for the application of IT
From planning to implication, adoption of IT includes many of the processes and
essentials. At the moment when an organization plans to adopt IT, it also has to be
concerned about many of the facts such as the process involved in the same and other
requirements. The very first requirement to apply IT in NAB is money. Application and
adoption of IT involve cost. NAB has to plan the budget while implementing any new
technology and to arrange funds for the same. The involved cost gives an idea to the
company whether to adopt or not a new technology. Cost is an important factor, in the
absence of which IT cannot be applied. Further, the second requirement is planning. It
is an activity or process where the raw draft of any new technology takes a final touch.
Here NAB decides different things such as the requirement to apply IT, resources
needed for the same, people involved in the process and so on. Planning is the root of
the whole process that provides a route map to NAB. It obtains the involvement of all
the stakeholders (Cannon, 2016). Some consultants and IT experts are also required to
develop an efficient plan and a project manager to oversee the process. Under the
planning process need to sources and equipment used to be highlighted.
The thirds requirement is equipment. Every technology needs certain equipment and
resources. These equipment are devices that support a new technology while applying
IT in NAB, equipment is also required for the updations in current technology.
Equipment is of no use unless the same is properly installed hence installation of
equipment is another requirement. Once the equipment is installed they are ready to
use and to support the new technology. These employees work in operations and are
directly involved with the use of IT. In such a manner, they are required to know the
expected manner of work. Technical training fulfills this requirement (Parker and Graham,
2008). To apply IT in business, NAB also required training for staff. Such training
develops the skills in the employee that are important to do a particular task. In this
manner, this would not be wrong to state that to apply IT NAB needs trained employees.
Manner of adoption of IT
As provided earlier this is to state again that different business IT at a different level. If
to discuss the use of IT by NAB, this is to state that the same use it for internal as well
as external use. In internal structure of the company its board members and employees
come. NAB has to keep many records related to customer and their account safely.
Further reports related to one customer has to share among various department and
therefore uses IT for its internal business. All the internal data of the bank, such as

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assets, employees, data related to their personal information and salary of employees is
used to secure in the system using IT.
Another kind of use is external use. NAB does not only require IT for internal use. In its
day to day dealing, the business makes several communication with customers. All the
queries are used to solve by way of technology only. Bank has its own website and
digital application, using which customers of the same can practice internet banking
from anywhere hence in this manner, NAB uses IT externally (Nab.com.au, 2019a).
Further, to provide information of new baking products and services too, the company
uses IT for its marketing. Share of the bank are listed and traded on the Australian
Stock Exchange (ASX). This is an online platform where the company submits its
annual report and other yearly and quarterly financial information online. Here again, the
company is using IT in addressing different stakeholders.
Advantages of IT use for NAB
NAB is blessed to have technology as the same lead many positive signs to the same.
The very first advantage of IT to any business is the reduction in cost. NAB also
achieves this advantage. Use of technology reduces the paperwork for the bank, which
brings a significant reduction in cost. Another benefit is the security of data. When data
is presented in physical form then there is always a risk of losing the same but now
since NAB is using IT for such storage, there is always a backup of all the works and
records, which assure data protection. Further use of IT providing flexibility to the
customers with respect to the management of their accounts and increase the level of
customer satisfaction. It leads a positive impact to the business and earnings of the
bank.
Advantage of IT is not limited up to the above-mentioned point, nevertheless, it also
helps in creating and maintaining good corporate governance. By the use of IT, NAB
receives timely reminders to submit its various returns to ASIC, ASX, and other
regulators and also creates those reports in very less time with very fewer efforts. These
are some of the benefits that IT serves to NAB.
Risk of IT use for NAB
At first instance, the use of IT seems to be very positive for NAB, but the same is not
true in actual. Although IT provides advantages to the bank risks are also associated
with the same. The most common type of risk is of security. Online banking frauds are
very general. Unauthorized people may access the data when people use IT for their
banking and later on can commit fraud by using such information. High risk is always
involved in online transactions where cyber attackers can fetch the password and do
unauthorized activities with their accounts.
Another risk is related to a breach of security. In the annual report presented by the
bank, the complexity of the technological environment has identified as one of the
reasons for technological risk (Nab.com.au, 2019b). Recently a data breach has been
reported against the bank where personal details of nearly 13000 customers were
accessed in an unauthorized manner (News.nab.com.au, 2019). This is not the only

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case but due to the use of technology, such cases become more general where the
bank fails to secure data of employees and customers.
Maintenance and Monitor of IT
As discussed above, many threats are associated with the use of IT in business hence
some measures are required to take to minimize those risks or to maintain and monitor
such use of IT. The best way to do so is to develop an IT support team where people
with sufficient knowledge of IT must be there to evaluate the processes and to identify
the risk at the earliest level. By involving these people, passwords can be regular
updates and any unauthorized access can be prevented initiate stage (Tier4.co.nz,
2018). Secondly, some standards can be developed by Nab against which performance
of the same can be evaluated. Bank already has it is privacy policy that should be a
review on a timely basis to ensure that no risk to data is there and processes involved
are safe and secure.
Conclusion
To conclude the report it is to say that NAB requires IT in almost every process and
activity. As it is a bank, customers need online support 24*7 and to fulfill these
requirements bank provide online banking using IT. NAB uses IT for its internal as well
as external operations. IT helps the bank to maintain records related to customers as
well as employees. Further, it brings many advantages to the business such as it
reduces cost and also makes the process fast. Further, it also provides back up of
important data. Nevertheless, some risk associated with such use of IT also been
discussed which includes risk related to security and privacy. NAB has the option to
maintain IT in an efficient manner taking help of the privacy policy and IT personnel.

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References
Cannon, M., Q. (2016) The Importance of IT Strategic Planning and How to Approach
It. [online] Available from: https://documentmedia.com/article-2401-The-Importance-of-
IT-Strategic-Planning-and-How-to-Approach-It.html [Accessed on 30/09/2019]
Emporis.com. (2019) National Australia Bank Corporate Headquarters Building 1.
[online] Available from: https://www.emporis.com/buildings/201531/national-australia-
bank-corporate-headquarters-building-1-melbourne-australia [Accessed on 30/09/2019]
Hoek, M., (2018) The Trillion Dollar Shift. Oxon: Routledge.
Mbaknol.com. (2019) Role of Information Technology (IT) in the Banking Sector. [online]
Available from: https://www.mbaknol.com/business-finance/role-of-information-
technology-it-in-the-banking-sector/ [Accessed on 30/09/2019]
Mycomputercareer.edu. (2016) The Importance of Technology for Modern Business
Survival. [online] Available from: https://www.mycomputercareer.edu/the-importance-of-
technology-for-modern-business-survival/ [Accessed on 30/09/2019]
Nab.com.au. (2019a) Internet Banking. [online] Available from:
https://www.nab.com.au/personal/online-banking/nab-internet-banking [Accessed on
30/09/2019]
Nab.com.au. (2019b) Annual Financial Report 2018. [online] Available from:
https://www.nab.com.au/content/dam/nabrwd/documents/reports/corporate/2018-
annual-financial-report.pdf [Accessed on 30/09/2019]
News. nab.com.au. (2019) NAB Apologises To Customers For Data Breach. [online]
Available from: https://news.nab.com.au/nab-apologises-to-customers-for-data-breach/
[Accessed on 30/09/2019]
Parker, X., L. and Graham, L. (2008) Information Technology Audits 2008. USA: CCH.
Ramey, K. (2012) Use Of Technology In Business. [online] Available from:
https://www.useoftechnology.com/technology-business/ [Accessed on 30/09/2019]
Tier4.co.nz. (2018) The Importance of Having a Technical Support Team. [online]
Available from: https://tier4.co.nz/news/importance-of-technical-support-team [Accessed
on 30/09/2019]