Analyzing IT at HSBC: Business Impact, Ethics, Networks & AI Role

This report examines the role of Information Technology (IT) in business, focusing on HSBC Holdings PLC as a case study. It delves into the impact of IT on business operations, highlighting benefits such as improved communication, enhanced efficiency, market research capabilities, resource management, globalization, and customer satisfaction. The report also addresses ethical and social issues arising from IT implementation, including personal privacy, harmful actions, identity theft, and online banking risks. Furthermore, it discusses various types of computer networks (LAN, MAN, WAN) and their impact on businesses. Finally, the report emphasizes the importance of Artificial Intelligence (AI) in business for enhancing effectiveness and driving innovation. This document is available on Desklib, a platform offering a range of study tools and resources for students.

Introduction to
Information
Technology

ABSTRACT
Establishment of network of communication for the business organisation, creating and
then administering databases, helping the work force for troubleshoot problems with the help of
electronic devices which include mobile phone and computers comes under the Information
Technology. Introduction of advancement of technology with in a business bring various
advantages for them. But along with the benefits, it also bring several social and ethical issues.
The development of Artificial Intelligence technology can be consider as the important aspect for
the business as it bring more effectiveness in the work done by the organisation.

Table of Contents
ABSTRACT ....................................................................................................................................2
INTRODUCTION...........................................................................................................................2
LITERATURE REVIEW................................................................................................................2
ANALYSIS AND DISSCUSSION.................................................................................................2
Impact of IT on business ............................................................................................................2
Ethical and social issues that pertain to running business...........................................................4
Types of Computer Networks with their impact on businesses..................................................6
Importance of Artificial Intelligence in business........................................................................7
CONCLUSION................................................................................................................................9
References:.....................................................................................................................................10
1

INTRODUCTION
Exchanging the information and data by the use of mobile, computer and software in an
electronic form is known as Information Technology. Human life is completely depending on
technology, as a result Information technology become an important part. Saving time while
performing any task is consider as the era of Information Technology. In the context of business
world, it bring several changes which help the organisations to complete all the task in a time
effective manner. Instant storage of data, technology driven devices are the examples of changes
in the organisation which are presented by the Information Technology. The certain report is
based on HSBC Holdings PLC which is a British Investment Bank and the financial service
company situated in London, United Kingdom (HSBC, 2021). This report deals with the role of
IT in the success of organisation, ethical and social issues relating to IT, various types of
networking technology with their impact on business and importance of Artificial Intelligence in
business.
LITERATURE REVIEW
According to Kirsten Slyten (2019), three main pillars of responsibility of IT department
are discussed which are given below: IT governance: Collection of processes and policies which make sure the effective
running of IT system which align with the need of company. IT operations: For the purpose of providing security testing, device management duties,
tech support and network maintenance.
 Hardware and Infrastructure: Majorly focusing area is referred to the physical
components of the IT infrastructure.
According to Information Technology Trends in 2019 Information technology refers to
anything related to computing technology. The Internet, for example, comes under the umbrella
term IT. So does computer hardware, software, and networking.
ANALYSIS AND DISSCUSSION
Impact of IT on business
Technology is the major factor in a business organisation as it result in presenting the
business organisation online. With the development of Information Technology, the growth of
business world can also be analysed as it provide guide to the business organisations. IT leads to
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bringing new and advance ways of performing the business operations which save time, cost and
efforts of employees. Innovation can be considered as the result of development of technology.
By applying upgraded trends of technology, a business organisation can attract their clients
effectively (Laraia 2018). For the purpose of changing the style and perspective of working in
the organisation of HSBC holding, they are using various software which make their work more
fast and easy. Along with this, they are able to store huge data in a while. The importance of
Information Technology in the success of business organisation can be explained as:
 Better Communication: The introduction of IT in business organisation improve the
ways of communication with the customers and other stakeholders. Conferencing
software, video chat, email and many more are the platforms which are being
introduced by the technology. Several of business organisations are arranging virtual
meetings with their staff members and customer which help them in saving money
which they are going to spend on travelling (Marques 2017). HSBC holding PLC is
using several social media platform in order to communicating with their customers.
Majorly they are focusing on establishing the relationship with their customers.
 Bringing efficiency in business: Another role of IT is to complete the business
operations in an effective and efficient manner as it helps in saving money and time.
Technology bring online portal which make easier for employees and customers to
track the work done by the organisation. HSBC provide the facility of tracking the
work by the introduction of an online application which help the customers for getting
information regarding the investments and account details. Customers can easily get
any information through this online application within a second. Hence, technology
can be considered as the factor which bring efficiency in the work.
 Market Research: In order to taking any effective decision at work place, it is
necessary for management of organisation to do research which help them in
analysing the market. HSBC is conducting several online surveys, providing feedback
forms to their customers so that they can do market research in an effective and
efficient manner (Nanni, L and et. al., 2020). By the use of technology, HSBC bank is
able to know about the preference of customers which help them in making effective
decision at right time.
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 Resource management and Globalisation: Manual process of maanging the
operations of organisation is too difficult. Technology has introduced some software
such as internet virtually and cloud technology which help the management in
monitoring the organisation with the use of internet, laptop and any other electronic
device. HSBC is performing business operation globally, hence it is very difficult to
for the management to manage all the operations manually. Cloud technology helps
the HSBC holdings to monitor the operations and take right decision which result in
the success and growth of business organisation.
 Customer Satisfaction and support: In order to establishing positive reputation of
bank in the market, every organisation is required to provide satisfactory services to
their customers (Kuang 2018). Proper communication between customers and staff
members can result in the satisfaction of employees. Online surveys and feedback
from customers help the HSBC holding PLC to understand the needs and
requirements of customers and provide the services which result in satisfaction of
customers.
Ethical and social issues that pertain to running business
Information Technology point out the elements which are used for the purpose of storing,
fetching and manipulating the information on a small level with the use of server which include
operating system. The impact of technology can be seen all over the area which include banking
sector, education, health, insurance sector and many more. The knowledge of security and
privacy is important as the advancement of Information Technology is taking place in the
business world. This advancement may also implies negative impact (Pham and et. al., 2020). In
the efficient running of a business, it is necessary to know about the several issues which the
business is going to face with the advancement of technology. Some of social and ethical issues
of Information Technology are given below:
Ethical Issues
 Personal Privacy: Due to advancement in technology, any user can connect with each
other with their own hardware, software tools and operating tools. The use of network on
large level may leads to the higher chances of getting information leakage. It is related to
the violating of privacy of an individual or a group. It become necessary for the IT
society and the business organisation to maintain the privacy and integrity data. There are
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various provisions are made which have a relation with the protection of accuracy of data
under the privacy issues. HSBC holdings PLC use technology on daily basis as they
provide the facility of internet banking and online banking to their customers. By taking
the help of customer's data, hackers can keep an eye on their personal movement.
Maintaining the privacy of the clients and employee data is a huge challenge for them
because disclose of such data leads to the ethical issues for the business organisation.
 Harmful Actions: Negative outcome to IT is found as the harmful action in the
computer ethics as it result in the loss of vital information, loss of ownership, destruction
of property, loss of property and unacceptable sustainable impacts. This ethical principle
create restrictions for the outsiders so that they can't loss to any user, employees,
employer or the general public (Prince 2017). In order to removing such conflicts, they
are required lots of efforts and time in order to remove the viruses from computer
systems. HSBC bank is require to keep the data of their customer safe otherwise it may
cause a huge loss if the data get in the hand of outsider.
Social Issues
 Identify Theft: When the personal information of employees and customers stolen by
the third party for the purpose of any fraud, is defined as the theft. In order to removing
such unethical actions, the organisations are required top bring several sources so that
they can stop third party and save the important information related to their customers
and employees (Gettman, D. and et. al., 2017). HSBC holdings PLC is working on
various privacy sources for storing the data of their customers and employees so that
no any outsider can use it for the purpose of malicious. The most important social issue
for HSBC holdings PLC is identifying the theft.
 Online Banking: HSBC has it's online application through which the users can
perform any transaction by using internet network and any electronic device. It can be
consider as the best example of advancement of technology. But sometime, this online
service may result in the theft of money along with the personal information, if the
mobile phone or computer system get hacked by any outsider. This social issue may
affect the reputation and brand image of HSBC which result in the arise in conflicts in
the smooth running of business operations.
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Types of Computer Networks with their impact on businesses
Computer network refers to the group of two or more computer systems having
interconnection with each other and use of a common connection protocols in order to share the
files and resources. With the help of hardware and software, all the computers are connected
with each other. There are various types of computer networks are found. These networks in
computer has been classified on the basis of their size and purpose (Ferreira, J.J. and et. al.,
2018). LAN, MAN and WAN are three types of computer network which are divided on the
basis of geographical area number of computers. Above mentioned types of computer network
are explained below: LAN (Local Area Network): The interconnection of computers within a small area is
known as the Local Area network. These network are established in the same building or
a single office. Coaxial Cable or twisted pair are selected as the medium of
communication between the two or more than two personal computers. For the purpose
of sharing local area network, several computer resources are being used which include
DVD-ROM, printer and hard disk (Ratten 2019). MAN (Metropolitan Area Network): For the purpose of maintaining large network
which cover a huge geographic area by establishing a interconnection among different
LAN. Majorly, this connection have been established to cover the complete city, a small
region or a college campus. This network has been mostly use by the government
agencies which connect the whole citizens and private industries. WAN (Wide Area Network): This type of network has been extended over the large area
such as different countries or states. It is the biggest network as it serve to lots of people.
It has been found that the internet is the biggest Wide Area Network in the world as it
serve to the entire population. This type of network is also used by the organisations
which are working globally (Cvetković 2017). It is very helpful in establishing a single
network of interconnection among all the people on a wide area but it is found as highly
expansive as compare to the other networks.
Basis LAN MAN WAN
Meaning Connection of
computers in a small
geographical area is
It refers to the
connection of
computer system of
Spreading on the large
localities and making
connection among the
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known as Local Area
Network.
large area such as
towns, cities and many
more.
countries is known as
the Wide Area
Network (Rowe 2019).
Allows A single pair of
device is allow for the
purpose of performing
communication.
On a same point of
time, many computers
can interact under this
network.
It include the
involvement of large
number of computers
on a same time.
Used by This network is used
where the
geographical distance
is not so high. It can
be used in same
building, hospital and
colleges.
This network is used
by the small cities and
towns.
On the national and
internation level, such
networks are used.
Speed High speed has been
provided under LAN.
Metropolitan network
provide moderate
speed (Chiang 2019).
It provide very low
speed as compare to
the LAN and MAN.
Ownership LAN is always owned
privately or private
people.
This network can be
owned by both private
as well as public.
Same as MAN, it can
also be owned by
private or public.
Designing and
maintenance
It is very easy to
design and maintain
this network.
The design and
maintenance of this
network is difficult as
compare to LAN
It is also difficult to
design and maintain
this network.
Importance of Artificial Intelligence in business
Artificial Intelligence refers to the software program which include the abilities for
performing all the tasks just like a human. It is an unbelievable technique which bring the
changes in the lives of the people of modern society. In order to grabbing all the opportunities
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which are available to the business organisation, AI has its own importance. Humans can't grab
the opportunities as fast as Artificial Intelligence software can (Sutinen 2021). This technology
firstly learn and handle the information which are related to the transform of business operations
in different field and after a certain period of time, comprehending by anticipating the needs, it
makes the relevant decision on the basis of analysing the needs. The importance of Artificial
Intelligence in a business organisation are given below:
 Save Time and money: It is well known that the work done by the machines are more
effective as compare to the work performed by the human being as human can't work
for 24*7. They require full rest as the continuous work bring tiredness and bored
(Capehart 2020). The machines of Artificial Intelligence can work constantly without
taking any break and sleep. It result in the less costing of human capital and the work
can be done in time effective manner. HSBC holdings PLC is using AI machines
which are working in cost and time effective way as they are analysing the entire data
of large amount with in a few seconds. By knowing about the relevant data, the
management of organisation can take necessary decisions without wasting time
because these machines provide right information on time. Effectiveness in the term of
time and money can easily seen in the task performed by the machines of Artificial
Intelligence.
 Generate Business Insight to make smart decisions: For every business organisation,
data is an invaluable resource. Processing the data is very necessary as AI machines
are very efficient as it implies right answers to the questions. In addition to this, HSBC
holdings PLC is getting right predictions and they are analysing the exact need and
requirement of customers (Baker 2019). In the context of HSBC bank, Artificial
Intelligence technology is predicting the analytics very fast and in a right manner as
compared to the humans. It is providing complete insight of the business to the
management so that they can make effective decisions.
 Artificial Intelligence Technology ensures Productivity: Humans take a lot of time in
performing the tasks as compared to the machines. If the work burden increases on the
employees, it will result in the decrease in the efficiency of work performance of
employees. In the context of HSBC holdings PLC, the machines of Artificial
Intelligence are performing the business operations by reducing the work load of
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employees. Such type of technology plays an important role as they are allowing the
employees to complete their task in effective and efficient manner which also leads to
the increase in the productivity of organisation. Along with this, this technology is also
working for the purpose of building a strong relationship with their customers. The
HSBC is providing the real time assistances to their customers through which their
customers can perform any transaction at any time or do the communication withy
their assistance at any suitable time. The assistances provided by the organisations are
available 24*7 for their customers.
 Reducing Errors: It has been found that the tasks performed by the machines of
Artificial intelligence give more accurate result as compared to the humans. HSBC
holdings PLC is a financial institute and hence the chances of hum,an errors are very
high in the calculation of cash flow (Abubaker 2017). AI technology in HSBC also
help them in getting the accurate forecasting of cash flow which leads to the reduction
of chances of errors. This act of business organisation provide higher chances of
growth and success of business organisation.
CONCLUSION
From the above report, it is concluded that the information technology is implies a great
impact on the business operations. Advancement of technology has bring several changes in the
business world. Innovation is consider as the result of advancement of technology which shows
the path of success to the business organisation. The organisations which are working on a huge
level, make a separate department of Information technology so that they can know about the
advance technology on time and adopt them while performing business operations. As a coin has
two faces, the technology also implies two effects on the business. There are many issues are
also found which are faced by the business organisations as a result of bringing technology
advancement at the work place. These issues may cause a lots of losses to the business
organisations and customers as well. Some of social and ethical issues of advancement of
technology are discussed over in this report. In addition to this, it is also analysed that there are
various types of computer networks which are classified on the basis of geographical areas.
Importance of Artificial Intelligence has been also analysed in a business organisation which
leads to the adoption of many changes in the business operations.
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Online
HSBC, 2021 [online] Available Through <https://www.hsbc.co.in/>
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