Analyzing IT Impact on Business: Commonwealth Bank of Australia

This report examines the significant impact of Information Technology (IT) on business, particularly in the banking and finance sector, using the Commonwealth Bank of Australia as a case study. It highlights the necessity of IT for automating business activities, reducing operational costs, and enhancing user experiences through innovations like the CommBank App. The report addresses the importance of IT in securing customer data, detecting fraud, and managing internal resources. It further discusses the implementation of IT, including costs, planning, and training, and its internal and external applications for employees, customers, and suppliers. While IT offers benefits such as cost efficiencies, revenue growth, and enhanced security, it also presents risks related to security breaches, privacy, and confidentiality. The report concludes by emphasizing the importance of ongoing maintenance and monitoring of IT systems to optimize business performance and ensure data security. Desklib provides access to similar solved assignments and study resources for students.

RUNNING HEAD: IMPACT OF IT ON BUSINESS 0
Impact of IT on Business
Student’s Details-
1-19-2020

IMPACT OF IT ON BUSINESS 1
Introduction
There is a significant impact of Information Technology on the business. It is crucial for the
survival of the business as it automates the business activities and provides the opportunity
for the business to reduce the cost of operations (Kasemsap, 2016). Here, the report is based
on the importance and need of information technology for the business of banking finance for
the real-life company Commonwealth Bank of Australia. The purpose of the report is to
elaborate the benefits and the risk associated with Information Technology to be used for the
business and reduce the security breaches in terms of confidential information.
Need of Information Technology
Information technology has been playing a vital role in the banking and finance as it can
enhance the user experiences. As Commonwealth Bank provides the financial services to the
customers, the company needs to make advancements into the technological part as it will
provide assistance and support the customers. For example, Commonwealth Bank has been
using CommBank App which is the award-winning application of the company that provides
the access to financial statements to the customers and often provides the company real-time
insights of the behaviour of customers and improve the financial wellbeing (Iliakis, 2019).
Recently, the company has been exposed to breach the customer’s medical information which
shows that the company needs IT support to keep the information private and safe (Oakes,
2018). This banking business need the support of IT for the online banking that can lead to
the digital experiences. Also, the business needs technology for the detection of fraud in the
financial services for the catching of the fraudulent transactions that makes the business
smarter and freer from errors and mistakes. Besides, the business requires the technology for
managing the internal sources that includes the employees and the customers who physically
visit the Bank.
Importance of IT for Business Survival
There is importance of Information Technology into the business as it automates the business
process and allows the business to get the long-term survival and productivity. Technology
has changed the way people interact and make the ongoing communication with the internal
sources. It is important for every business as it also provides a competitive edge against the
competitors. It has provided the pathways for the running of the business practices (Löfsten,
2016). Also, technology has been providing the ways for the business survival as it provides

IMPACT OF IT ON BUSINESS 2
the security of the data that ensures that the financial information and customer data is
securely being kept. Similarly, information technology is important for Commonwealth Bank
as it can help the company to make the operations better and also save time and cost of the
company. Technology can help the company to make the secured systems for the storing of
the financial information and make the employees effectively managed by the integrated
systems that can help in the survival of the business (Huang, et al., 2016).
Application of IT into Business
The implementation of information technology into the business requires the cost, pre-
planning, design, an equipment and installation that will lead to the incorporation of the
technology for the business operations. As in the case of Commonwealth Bank, the business
needs to employ a significant cost for the development of the equipment that can facilitate the
management of the staff. Further, when the company uses online mediums for getting
connected with the customer. It precisely requires the training of the system installation and a
proper design that can ensure in the application of the tools that can make the enhance the
customer experiences (Wei, et al., 2017). For example, when the company makes the
installation of queue management system for the crowd entering into the Bank, the company
needs to make sure that system requirements are met by the company that can lead to the
attainment of the gaol. Thus, the implementation of IT software and equipment for the
security concerns and also for the effective management, the company will require the proper
training which will be given to the specific users and also requires the planning which will be
executed at the later stage (Wachter & Howell, 2018).
Use of IT Internally and Externally
Information technology can be used internally for the employees and externally for the
customers and suppliers into the business. This can facilitate the channels which will promote
the communication and will reduce the cost of operations. Commonwealth Bank can make
use of IT for the employees through the development of software that can altogether make
their work easier through the automated printing of receipts (Jia, et al., 2018). The company
can also make use of attendance software and people management software that can manage
the details of the employees. Also, the company can make use of IT for the customers as well
in which online banking is the best way to deal with the customers through remote banking
and electronic banking in order to reduce the wait times and increase the business growth
(Imran, et al., 2019). For suppliers, the company make use of secured applications and

IMPACT OF IT ON BUSINESS 3
systems that have the capability to keep the financial information private of investors and
shareholders which are the suppliers of the business. This way technology can ensure that
there are reduced errors in the business process and have a better dealing with the customers.
Benefits and Advantage of IT into Business
Use of information technology can bring enormous advantages and benefits for the business
in terms of revenue, flexibility and cost. This can bring the advantage of cost efficiencies and
maintaining reputation of the business into the competitive marketplace (Elijah, et al., 2018).
Particularly, Commonwealth Bank can be benefitted by the information technology as it can
help the company to share the business information more accurately and also helps in the
enhancement of customer experience. This can facilitate in the growth of the revenue due to
the systems and tools that can make the cost efficiencies. Besides, information technology
has the advantage into the business as it facilitates the company to keep the information
secured in terms of the systems that have the tendency to keep the financial information
confidential (Rouhani, et al., 2016). This in turn benefit the company in maintaining goodwill
and increase the revenues through decreasing the cost.
Risk Associated with Technology
There are various risks associated with the information technology which may include the
risk of security, privacy and confidentiality. There is risk of security when the business uses
technologies and software for the business operations. Moreover, Commonwealth Bank faces
the IT risk when they use of the cloud-based systems that have the risk of security as the
information can be stolen. Also, there is risk of confidentiality and privacy as the online
systems can lead to the risk of stealing of personal information. Further, information
technology can lead to the various risk which can hamper the privacy concerns of the
customers. Specifically, Commonwealth Bank has faced security issues when the company
has faced problems when the customer’s confidential information was exposed (Oakes,
2018). These risks can lead to the lack of trust within the employees and often can reduce the
productivity of the business.
Maintenance and Monitoring
After the proper implementation of the information technology into the business, it is crucial
for the company to maintain and monitor IT in a timely manner. This can be ensured through
the monitoring tools that play a vital role in the optimizing the business performance. This

IMPACT OF IT ON BUSINESS 4
maintenance requires the upgradations in the software tools on the daily basis that can ensure
that the system is not obsolete and is renewed on timely basis (Mourtzis, et al., 2017).
Further, Commonwealth can monitor IT and the tools in order to make sure that the system is
not made old and is degenerating on the relevant criteria. Also, the company can make sure
that the security systems are thoroughly checked and are given proper maintenance which can
reduce the errors in the storing and transferring of the confidential information. Additionally,
monitoring of the tools and systems can make sure that the systems are completely working
and meeting the desired goals.
Conclusion
To conclude, it can be said that technology is important for the business and should be
positively used by the companies to increase the profits. It can be advantageous for the
company like Commonwealth Bank of Australia and can enable the company to get the brand
presence in order to target the customers. Also, technology can have a drastic impact on the
business can facilitate in the ongoing survival of the company. Here, the report is made to
determine the influence of IT on business and the way business can make use of information
technology for increasing the business growth.

IMPACT OF IT ON BUSINESS 5
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