Information Technology & Business Enhancement: HSBC Bank Analysis

This report examines the impact of Information Technology (IT) on business operations, focusing on HSBC Bank as a case study. It discusses how IT enhances productivity, facilitates global presence, fosters low-cost innovation, and improves strategic decision-making. The report also addresses the importance of ethical and social issues in the virtual world, highlighting concerns such as personal privacy, copyright, and piracy, and their implications for businesses like HSBC. Furthermore, it identifies and discusses various types of computer networks, including Local Area Networks (LAN), Wide Area Networks (WAN), and Wireless Local Area Networks (WLAN), and their respective impacts on business operations. Finally, the report explores the role of Artificial Intelligence (AI) in enhancing business processes, weighing its benefits and drawbacks for organizations like HSBC Bank. The overall analysis underscores the critical and multifaceted role of IT in modern business, emphasizing the need for ethical considerations and strategic implementation to maximize its benefits.

INFORMATION
TECHNOLOGY
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Table of Contents
INTRODUCTION.....................................................................................................................................3
MAIN BODY.............................................................................................................................................3
To discuss the impact of Information Technology in helping business to enhance their operations........3
On the importance of ethical and social issues, which are increasingly becoming significant in the
virtual world. Identify and discuss at least three issues to run businesses effectively..............................5
To identify and discuss different types of computer networks with their impact on businesses..............6
To discuss the impact of Artificial Intelligence (AI) in enhancing their businesses.................................8
Analysis and Discussion upon benefits & drawbacks..............................................................................9
CONCLUSION..........................................................................................................................................9
REFERENCES........................................................................................................................................11
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INTRODUCTION
Information technology is a term that is being refereed to denote the working of various
activities through computer system or via digital technology. This comprises of building a
communication network particularly for a business or having an aim of providing security to the
various information or data. In context to business the information technology is being utilized
for the purpose of troubleshooting employee’s problem, performing various technical or human
friendly tasks with higher accuracy (Bughin, J and et. al., 2017). This allows a company to attain
their objectives in time and perform their actions with more speed. The aim of present report is to
discuss the impact of IT for business along with its importance of ethical & social issues that are
significant in the world. Lastly, various types of computer networks and the impact of Artificial
Intelligence upon business is highlighted. The organisation which is considered for the report is
HSBC bank which is a global banking services company being situated in London, UK.
MAIN BODY
To discuss the impact of Information Technology in helping business to enhance their operations
The information technology is a concept which has now become a need of the hour and
which every business involves in their actions. There are various roles which Information
Technology plays in business operations. It is applied with an aim of performing specific data &
assist the company with greater productivity, enhanced performance, boosts consumer’s
experience, and assist in many ways that provides benefit to the organisations. In case of banking
industry there is a major role of IT is present or it can be said that without IT in present time
performing banking operations is tough. The impact of information technology in helping
business operations of HSBC bank are mentioned below: Enhances Productivity: With the improvement in various technical processes or
enhanced in the skills of employees technology enhances the overall production of
business. Technology such as automatic email, banking transaction automatic updates,
scheduled reminders to the clients and various others enhances the productivity of bank
as well as banking staff in HSBC bank. This also allows to retain customers for long term
through providing greater customer experience to clients(Chae, Koh and Park, 2018).
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 Making a global presence: Through technology it can be possible that a business can
make its presence at global level through networks and internet. The scope of information
technology opens a door of entering into global business with effective transferable &
communication resources. In respect to HSBC bank which has made its global presence
only because of information technology like making different investments, facilitating the
interdependence and integration. This is done through developments in logistics,
communication & transportation due to information technology. Low cost innovation: The presence of information technology boosts the thought of
innovation in organisations. Innovation like having smarter applications, quick
processing of data or information, enhanced storage of data, etc. In relation to HSBC
bank, the innovation can be bought through information technology at international level
which will increase the brand recognition and attract more customers towards the services
of bank (Will, Gossel and Windscheid, 2020). Better strategies and decision making: Information technology allows individuals to
develop communication and make contact across the world. Through information
technology a business can develop various digital marketing strategies or can try to
enhance the customer support services. This could be done through different modes such
as emails, telephone, social media channel and various others. This would allow HSBC to
make effective decisions related to its strategies like can connect with investors through
video conferencing, can present their workings or share marketing ideas through
webinars, and many others. This can bring an opportunity of better strategies and
decisions if can discuss with more persons (Geeling and Brown, 2021).
Other than above mentioned impact of IT on business operations, there are many more
several impact such as enhancement in resource management, development of new product,
having an idea over calculative risk, management of various record that saves times and cost.
Information technology is the best and quickest way to lead business into heights and at global
level. With the time information technology has made its special and inseparable presence in
banking industry which could not make its operation possible without the use of information
technology.
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On the importance of ethical and social issues, which are increasingly becoming significant in
the virtual world. Identify and discuss at least three issues to run businesses effectively
The information technology specific the different components which are utilized to fetch,
store and manipulate the various information at minimal level. The information technology has a
numerous use such as in businesses, service sector, health, education, research and in many
others. With the continuous changes or development in the area of information technology it has
become a matter of concern regarding the social and ethical issues concerned with network and
security. It is very much important for a business to comply with all ethical & social issues while
operating with information technology. The various ethical & social issues with respect to HSBC
bank are mentioned below:
 Personal privacy: The issue related to personal privacy within information technology is
highly important for every business or service industry to consider. The information
technology facilitates its uses carrying their own operating system software and various
hardware tools so can access the server which is interconnected by a network. With the
distribution of network at a huge scale, the information or data transfer in large amount
happens which has actions to bring hidden changes in network without disclosing such
information or data. This can also bring a violation of the privacy e of any group or an
individual. In relation to HSBC Bank, the main challenge with banks for information
technology is 2 to maintain the complete integrity and privacy of their data as well as
information. Any short of accidental disclosure would prove inappropriate for the
company in respect to the protection of data which can harm the privacy issue of banks
and reduce the trust level of its customers (Gupta and Yadav, 2017).
 Copyright: copyright is another ethical issue with respect to information Technologies in
businesses and the service industry. The copyright is related to the security of the
information and law that works in a very strong legal tool. This is related to the computer
software and its protection before a security breach or any test. In respect to HSBC Bank,
such type of breach can lead to misuse of any information on the mishandling of data as
well as negative impact on the documentation and computer programs of banks.
Copyright it is is legislation in various countries such as in the UK where HSBC Bank is
having its headquarter this provides an explicit law to all the users for the protection of
their computer programs (Арсирий and et. al., 2020).
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 Piracy: the issue related to privacy is the most prevailing issue within the market as well
as in industry full stop the piracy involves the conduct of such activities that create an
illegal copy of any application or software. This is upon the software owner or
application on whether they allow users to have the backup copies of such software or
applications into their systems. There is a law for copyright protection that involves
legislation for the prohibited action of duplicated or unauthorised software. In respect to
HSBC Bank which is a service industry, piracy is a major concern that can lead to a
duplication of banking software for their internal portal upon which the banking personal
works and maintains the data of customers. If this issue is neglected then this can lead to
harming the company's image and a visit to court where the penalty could be charged
with the user who has accessed the unauthorized software into their systems (Gupta,
Raychaudhuri and Haldar, 2018).
To identify and discuss different types of computer networks with their impact on businesses
The computer networks could be stated as a number of various properties like
authorization, technology, capacity, business purpose, structure, etc. The different types of
computer networks helps businesses in determining the right one for their operations that can
have better performance and greater productivity. The different types of computer networks for
HSBC bank are discussed below:
 Local area network: LAN or local area network is that network which is highly
acceptable and is popular in market. Such type of network are being found in homes &
businesses. This network interconnects the various devices within a limited geographical
location such a business or school, or makes a common connection within a single
building. Under this network there is no any limit of connections and due to that can also
be used in large organizations. A local area network comprises of access point, routers,
cables, switches, etc. that has an ability to connect various devices like laptops, mobiles
or desktops through its internal server. The main advantage of having local area network
is that his can connect large network of computers that connects different communication
devices or group of computers through a common internet connection. This allows users
to share different types of files, access to shared printer, as well as provides assistance in
managing & controlling the usage of internet from one point. In context to HSBC bank, a
bank uses local area network and provides connection to all its computers for processing
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and handling banking transactions smoothly through a proper control (Ketzenberg and
Metters, 2020).
 Wide area network: Wide area network: WAN or wide area network is a computer
network that operates at a large level and connects different communication devices are
computers for a long distance. The wide area network is not limited to a single or
graphical area and can be effectively utilized by various organisations in order to connect
the network at the workplace which can be situated in different geographical regions.
Having a wide area network connection EA branch or office of an organisation comprises
of their personal Local area network and all the networks are being connected with a
single wide-area network. In general terms, a wide area network can be referred to as a
combination of various local area networks for different communication networks. The
most important and common wide area network being used across the globe is the
internet. The main hardware is required by a wide area network for effective networking
comprises access service, switches, ISDN terminal adaptors, modems, multiplexer’s
routers, etc. For an instance, HSBC bank wishes to connect it’s all local area networks to
a single wide-area network in order to have various benefits with a single network
(Mauerhoefer, Strese and Brettel, 2017).
 Wireless local area network: WLAN or wireless Local area network is such a connecting
device that uses wireless communication that is it does not rely upon wired Ethernet
connections. This does not involve a lot of cabling for any mobile, computer or laptop
device therefore can be easily carried or handled. A wireless Local area network is
generally categorized as an alternative method to a wired network or an extension of a
local area network. The wireless Local area network uses high-frequency radio waves as
well as generally includes more than one access point which allows its users to move and
access the internet connection within its coverage region. Wireless Local area network is
also referred to as Wi-Fi in common terms. The selection of wireless Local area networks
requires proper Emphasis as this involves a careful analysis of various factors such as
security performance, cost coma is of Management and scalability. Various function like
LAN, WLAN includes the usage of wireless network technology. The devices connected
with WLAN does not need to rely upon physical cables for the connection.
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To discuss the impact of Artificial Intelligence (AI) in enhancing their businesses
The concept of Artificial Intelligence refers to a simulation of human intelligence process
through machine or computer systems. The main aim of Artificial Intelligence is to enable
machines & computer in order to perform various intellectual tasks. The Artificial Intelligence
allows a business or service company to have problem solution, helps in decision making as well
as performing various complicated tasks. The different impact of Artificial Intelligence upon
HSBC bank are mentioned below:
 Automating Recruitment: The Artificial Intelligence includes the presence of machine
learning. It assists in providing large amount of positive outcomes, huge data as well as
determining the patterns for business. This provides benefit to the department of human
resource in order to recruit and screen resumes according to the job profile. In relation to
HSBC bank, the Artificial Intelligence helps bank in recruiting various banking
personnel’s, scheduling their interviews as well as trailing related applications. This also
allows to conduct online interviews which analyses responses & facial expressions that
determines the suitability of candidate in the bank (Pratama and et. al., 2020).
 Personalizing sales and marketing: Execution of Artificial Intelligence within business
helps in personalizing sales & marketing for company’s offerings. This also helps in
qualifying various leads faster than human workforce, as well as facilitating company’s
higher sales. In relation to HSBC bank, this assists in determining the kind of clients who
wish to be the bank’s customer and evaluate the prospects for bank. This on the other
hand customizes the bank’s messages & emails according to the customer profile.
 Improves Security: The presence of Artificial Intelligence has an impact upon the
various future as well as current applications related to company’s security rather than
shielding against different programmers, providing protection and preventing from crime.
If HSBC bank, includes Artificial Intelligence in its operations then can provide better
support to its customer’s and assure more safety to network (Rhee and et. al., 2018).
 Reduces Operational cost: The main aim of Artificial Intelligence is to provide better
operation to the company which also involves cutting of various operational cost. The
involvement of Artificial Intelligence allows HSBC bank to save its time as well as
eliminate the common tasks from their activities & make their employee’s more skilled
and proficient. This will save time for bank with compared to another task and reduces
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the chances of error which can be done by humans in bank (Subhashree and Harshitha,
2020).
From the above discussion it can be said that Artificial Intelligence has a direct impact
upon the operations of banking sector. This provides a supporting tool or a tool that replaces
jobs and many more. Indulgence of Artificial Intelligence within banking process automates
various tasks at workplace which fragments several workflows & formulate numerous jobs
that assists to integrate them.
Analysis and Discussion upon benefits & drawbacks
From the above discussion it is analysed that information technology ha both benefits as
well as drawbacks. On one hand if it smooths the organisational process, saves time & money as
well as enhances company’s productivity then, on the other hand provides a chance of data
mishandling and theft of information. Through the use of information technology there is a scope
of having crime or various forms of complexities which may become difficult for an organisation
to handle and run their operations with more efficiency. If the employees are not familiar with
such information technology or is not having a proper knowledge then this could lead to
destruction of technology and can also bring false outcomes. In respect to HSBC bank which is a
multinational level bank it is very important to consider various issues time to time so that could
not face any hurdle. There is also a chance of data theft at large level which can lead to negative
impact upon the business and can lose the information of customers. But if applied properly with
effective training and experience this can take bank to highest level and achieve greater success.
CONCLUSION
From the above report it can be said that information technology is an inseparable and
eternal part of every organisation. No business can run effectively without the involvement of
information technology. This provides various positive impacts upon businesses such as
enhancement of productivity, developing customer experience, taking business to global level
and many more. While conducting a business through information technology it is very
important to pay emphasis upon the ethical and social issues such as data privacy, secrecy of
customer & company’s data, hacking, and different others which can be harmful for business or
can be charged with penalty if not used ethically. The existence of IT is possible due to the
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operations of various computer networks such as local area network, wide area network and
wireless local area network. The most important and growing concept within information
technology is Artificial Intelligence which brings greatest benefits to the firms like low cost,
greater revenues, enhanced customer experiences, language processing, and others.
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REFERENCES
Books and Journal
Bughin, J and et. al., 2017. Artificial intelligence: The next digital frontier?.
Chae, H.C., Koh, C.E. and Park, K.O., 2018. Information technology capability and firm
performance: Role of industry. Information & Management. 55(5). pp.525-546.
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Analyzing Social Media Platform Ethics. Available at SSRN 3942451.
Gupta, S. and Yadav, A., 2017. The impact of electronic banking and information technology on
the employees of banking sector. Management and Labour Studies, 42(4), pp.379-387.
Gupta, S.D., Raychaudhuri, A. and Haldar, S.K., 2018. Information technology and profitability:
evidence from Indian banking sector. International Journal of Emerging Markets.
Ketzenberg, M.E. and Metters, R.D., 2020. Adapting operations to new information technology:
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Mauerhoefer, T., Strese, S. and Brettel, M., 2017. The impact of information technology on new
product development performance. Journal of Product Innovation Management. 34(6).
pp.719-738.
Pratama and et. al., 2020, December. Case Study: AppDynamics Application as Business
Intelligence to Support Digital Business Operations at PT PGD. In 2020 3rd
International Seminar on Research of Information Technology and Intelligent Systems
(ISRITI) (pp. 577-582). IEEE.
Rhee and et. al., 2018. Value of Information Sharing and Information-Technology-enabled
Operations via Transportation Network Company Apps: An Empirical Analysis.
Jinyang and Wang, Youwei and Tan, Yong, Value of Information Sharing and
Information-Technology-enabled Operations via Transportation Network Company
Apps: An Empirical Analysis (February 20, 2018).
Subhashree, K. and Harshitha, S., 2020. Technology Advancement And Fraud's In Banking.
RIMS Journal of Management. 4(2). pp.1-6.
Will, A., Gossel, B. and Windscheid, J., 2020. Eyes on tech! Media entrepreneurship and the
relevance of technology in business models. In Media Management Matters (pp. 188-
203). Routledge.
Арсирий and et. al., 2020. Information technology of supporting architectural solutions using
polyglot persistence concept in learning management systems. Прикладные аспекты
информационных технологий. 3(2). pp.13-31.
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