Analyzing the Impact of Information Technology on HSBC's Business

This report provides an overview of Information Technology (IT) within the context of a business, specifically focusing on HSBC. It begins with an introduction to IT and the report's structure, followed by a literature review exploring the role of IT in organizational success, ethical and social issues, networking technologies (PAN, LAN, SAN, MAN), and the importance of the internet and intranet. The report then examines the different stages of the system development life cycle. The report highlights the impact of IT on decision-making, communication, and financial service delivery. It discusses ethical concerns like software piracy and security, as well as social issues like networking and identity theft. The importance of both the internet and intranet for HSBC are also described. The report concludes with a discussion on the system development life cycle stages (planning, analysis, system design, development, and implementation).

Introduction to Information Technology

ABSTRACT
This present report is based on the Information Technology within an organisation that
help in conducting the business activities in significant manner. In this, introduction part consist
overview of the report and about organisation. Literature review part has been completed by
using different sources such as government journals, books, internet sources and many others. In
this part, discussed about the main role of information technology in making business successful.
On the other hand, there has been studied about the different kinds of computer networking
technologies which helps business to running successfully.

Table of Contents
ABSTRACT.....................................................................................................................................2
INTRODUCTION...........................................................................................................................1
LITERATURE REVIEW................................................................................................................1
Role of IT in the success or failure of organisation....................................................................1
Ethical and social issues that pertain to running businesses.......................................................2
Identify and differentiate between various types of networking technologies...........................3
Importance of intranet and internet in Marks and Spencer.........................................................4
Different stage of system development life cycle.......................................................................5
ANALYSIS AND DISCUSSION...................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Information technology is explained as use of the computers, networking, physical
devices and the storage to develop, process and exchange forms of the electric data. This deals
with computing consisting telecommunications, software and hardware in transmittal of the
information that facilitate communication. Information technology is mainly design and
execution of the computer networks for communication and data processing (Andrade and
Doolin, 2016). In business, Information Technology plays a necessary role and enhance business
productivity with saving, money, time and effort. HSBC is British multinational bank and
financial service holding organisation. It was established in year 1865 by Sir Thomas Sutherland.
In present report going to discuss about the role of IT in the success or failure of organisation.
There will be discussion about significance of Internet and Intranet in business. This report is
going to cover the various stage of the system development life cycle.
LITERATURE REVIEW
Role of IT in the success or failure of organisation
Information technology is helpful in attain the data through way of collecting and
transmitting for accomplish set business objectives. Technology gives the opportunities to
analyse the potential data with assistance of the significant organisational process. It plays a
necessary role in growing business, enhance performance, saves money, make improvement in
customer experience and increase managerial decision- making. HSBC is a multinational bank
and its aim to use the technology is to transform banking experience. It uses information
technology to power leading international bank of world, faster banking so that people can keep
their money safe and data secure (Bainbridge, 2013). On the other hand, HSBC can make the
communication better with various departments for achieving long term objectives within given
time period. Role of Information Technology in success of HSBC bank given below:
Helpful in Decision Making- Under this, an entity has undertake to make effective
decisions in context to accountability and system speed. In relation to HSBC bank, it needs to
make selection of the path for taking the better decision related to maintain premise, this
company acquire some online models to provide accurate information to consumers.
Fosters communication- Information Technology helps in make the communication
strong among different departments (Brown and et. al., 2012). It assures to minimize the errors

while communicating with some other person. This is necessary through HSBC bank to
improving its active systems for increase business growth and reduce drawbacks within
manufacturing process. It aids in attaining specify goals within given period of time.
Provide financial services quickly- Due to execution of advanced technology in
business such as information communication technology and Internet, HSBC bank can provides
financial services to people quickly such as investment baking, market personal financial
services, commercial banking and some other financial services (Kim, 2015).
Ethical and social issues that pertain to running businesses
Ethical issues
Ethical issues arises when given decision and activity creates conflict with moral
principles of society. It is a problem that needs an individual or company to select among
alternatives which should be measured as right or wrong. HSBC bank try to operate its business
in an ethical manner and being the stable to invest for encourage the people to gain their trust.
Some of the ethical issues are given below:
Software piracy- It is related to avoidance of the acts like illegal use of software, copying
information etc. This is ascertained to risky as hacker can easily hacking personal and financial
information of software and can wrong use of information. This kind of issue develop native
impact on operations and image of company (Holtshouse, 2013).
Security- It is one of most important ethical issue that emerge in company when the
systems are not secure and up to date that develops inefficiency in conducting business. Hackers
can easily hack important as well as confidential company data by using an IP address. As far as
e-commerce is concerned, hackers attack in computer systems when a person performs financial
transaction and also transfers all money to personal account that affects directly on consumers
and their accounts. To handle this situation, HSBC bank emphasize on the privacy, data security
and some other issues as they can damages image as well as position of an organisation.
Social issues
These are the issues which influence several people within society. These are considered
as issue that can impact many people and they work to solve them effectively.
Use of networking for advancement- This is an important issue for the business of an
organisation as it helps in the company's smooth operation. In context to ineffective and poor
networking within HSBC bank, it would negatively affect on details and information of all

customer. Networking supports the company in developing the better customer relationships in
all over the world.
Identity theft- Fraud is one of main spurious activities that can be arise in Information
Technology. Main problem that arises as a result of fraudulent activity is identify theft in which
third party use personal details of individuals for the malicious purposes. It includes conducting
unlawful financial online transactions and some other related activities which may have negative
effects. These kinds of activities have the long impact on business of HSBC bank and there is a
need to management to focus on overcome from them for neglect repercussions (.Prajogo, D. and
Olhager, 2012).
Identify and differentiate between various types of networking technologies
In each corporation, the company's IT department, uses certain network strategies and
computer systems to efficiently conduct its business activities which lead to the company's goals
and objectives being accomplished quickly. Numerous networks are commonly used by business
and support to achieving organizational objectives as well. Different kinds of networking
technologies mention below:
Personal area networks (PAN): It is explained as accessible as well as effective
manner by which the networks can be properly developed with the help of mobile phones,
computers and some other devices that can helpful in attaining the set objectives.
For instance: IT department of the HSBC bank can use this network to handling the basic
network that is related to work.
Local area network (LAN): It is explained as the computer network that can
interconnect with two or more than two computers in specific subject area. This is completely
varied from the Personal network area as this can transfers the information among various users
in similar organisation easily. This has been stated that Personal area network only giving the
access to single user and on the other hand LAN holds ability of handle networks of the medium
size organisations (Schwalbe, 2015). Under this kind of the network, information and data is to
be transferred through using routers within organisation.
Storage area network (SAN) – This kind of the network does not need to based on the
local area and wide area network. Storage area network mainly deals with various networks and
also use them in an effective manner. Specific network is helpful in storing the network in
significant way.

Metropolitan area network (MAN) – This network interconnects the users with some
computer resources in geographic area that can be covered through large local area network but
small that are that covered through wide area network.
Importance of intranet and internet in Marks and Spencer
Intranet and Intranet both are more important for HSBC bank and helpful in running the
business in an effective manner. The importance of Intranet and Internet mention below:
Importance of Internet in HSBC
Internet is global system of the interconnected computer network that mainly use Internet
protocol suite to connect the devices (Tarafdar, Gupta and Turel, 2013). Global computer
network giving variety of the communication facilities and information consisting interconnected
networks by using communication protocols in a better manner. Internet banking of HSBC bank
is easy, secure and quick that permitting access to wide range of the transactions like fund
transfers, view e- statement etc. This bank use internet so that consumers can make online
transaction and information that help in managing the financial assets. By using internet,
company can communicate with the users to provide some information about the provided
services. In this present time period, there is a requirement of instant internet banking solution
for better lifestyle. HSBC bank presenting the Internet Banking Service that provides proper
control over credit card and bank accounts online. Internet banking of this bank is easy, secure
and quick that allowing users to access wide range of the transactions like fund transfer, utility
bill payments etc.
Importance of Intranet in HSBC
Intranet is private network that contained with a company and many used to share
information of company securely. This is used to facilitate the working in teleconferences and
groups. It helps in enhance communication within company through bungalow the staff members
to access necessary information easily. It creates better opportunity to transform older ideas and
opinions into creative and also customized marketing techniques. It reduces the chances of users
making manual errors. This is helpful in make the information and data confidential which may
be used for purposes that are not permitted through HSBC bank (Venkatesh, Thong and Xu,
2012). There are some specialist of IT departments in HSBC bank which have secured specialist
servers. HSBC bank has developed its internet as place for 55000 staff members to access tools,

check process and also learn about the news about job. The staff members of this bank uses
intranet in three different modes and their requirements on the basis of mode.
Different stage of system development life cycle
The development cycle of systems can be explained as the life cycle of application
development, that is used in the data systems, engineering sector and this is enclosed with the
software engineering. Generally, this process is ultimately followed by the design, preparation,
implementation and testing of system development cycle (Kim, 2015). In context to a company,
department of Information Technology is looking for develop electronic payment system.
Different stages included in system development life-cycle mention below:
Planning- The main purpose of this first stage is to search scope of issue and also
identify effective solutions. Under this, company is planning for looking for creating the new
electronic payment system in its application and for this, there is a need to the company to
provide this information to IT as to make some improvement in its payment system.
Analysis- Under this, teams consider functional needs of project. This phase includes
evaluating the application quality at different stages and also preparing the notes on the
additional needs. In regards to this, a company could go by advantages and disadvantages of
electronic payment mechanism system design.
System Design- It is a third stage that explains the essential features, operations and
specifications which will fulfil functional needs of proposed system. Just when overall research
is finished, this stage comes in front that mainly helping to create overall project within a
particular time frame. Using this, an organisation can identify all possible flaws easily which
need to be removed to build a more effective procedure or plans (Schwalbe, 2015).
Development and implementation- When there is a discussion about the electronic payment
system technology of an enterprise, this stage remains the most important, just when the
development is taken place, next step comes right, i.e. the service being planned to be
introduced.
Testing- This stage would analyse the failure code and report bugs in system. Through
this, positive outcomes could be easily obtained on time. So, this can be said that the testing of
software outcomes in the organization's IT department drawing out the actual outcomes of
developing software.

Maintenance- After passes the software by all stages without any kind of problems, it
will be upgraded and also maintained in significant time period to adapt to modifications. It is
necessary for each software development company follows all steps that resulting in the
company's reputation in today's software market. It is mainly based on feedback which company
get from consumers about software. This stage also consists handling errors and also resolves
issues (Prajogo and Olhager, 2012).
ANALYSIS AND DISCUSSION
In view of the information presented above, it has been analysed that an HSBC bank
would need to sustain its presence in area of IT because this involved in the banking sector and
it need to change the system for making the financial transactions safe and better for consumers.
It helps to consumers to make the safe financial transactions and develop positive relationship.
This bank adopted the digital information because it helps in protecting financial data and
transfer the money easily on electronic devices. On the other hand, by enhancing profit margins
within set period of time, HSBC bank will benefit from information technology. This could be
illustrated by an example where HSBC bank have created a new electronic payment system for
their consumers through launching an application, as well as raising their revenues and making
payment process even faster than existing.
Illustration 1: Digital Transformation Trends
(Digital Transformation Trends, 2019)

From the mentioned graph, this has been stated that business transformation in digital
spin is not new because the organisations need to change themselves, and adopted the advanced
information technology. HSBC bank has spent 2.3 billion on increasing its digital capabilities at
global level. It developed the new platforms and also partnered with the technology organisation
to connect with consumer and communicate with them in an easy manner. It has been found that
large number of consumers are use the new technology in order to conduct bank related
transactions in transparent and secure manner. This bank has invested in different digital
platform like artificial intelligence and some of the other technology for serve better to
commercial and retail consumers.
CONCLUSION
It has been concluded from the above mention report that Information Technology helps
in conducting the business operations quickly and making business transactions secure. There
has been studied about the different networking technologies such as LAN, WAN and many
others which helps in connecting the systems in a proper manner. Internet and Intranet both plays
necessary role in making business successful and competing with competitors effectively. There
has been developed software by including various stages of the system development cycle.
Different social and ethical issues has been studied to removing negative impacts from the
business operations and activities of company in significant way.

REFERENCES
Books & Journals
Andrade, A. D. and Doolin, B., 2016. Information and communication technology and the social
inclusion of refugees. Mis Quarterly. 40(2). pp.405-416.
Bainbridge, W. S. ed., 2013. Converging technologies for improving human performance:
Nanotechnology, biotechnology, information technology and cognitive science. Springer
Science & Business Media.
Brown, C. V. and et. al., 2012. Managing information technology. Pearson Education, Inc..
Holtshouse, D. K., 2013. Information technology for knowledge management. Springer Science
& Business Media.
Kim, L. S., 2015. Convergence of information technology and corporate strategy. Journal of the
Korea Convergence Society. 6(6). pp.17-26.
Prajogo, D. and Olhager, J., 2012. Supply chain integration and performance: The effects of
long-term relationships, information technology and sharing, and logistics integration.
International Journal of Production Economics. 135(1). pp.514-522.
Schwalbe, K., 2015. Information technology project management. Cengage Learning.
Sellers, R. E. and et. al., 2014.Agile information technology infrastructure management system.
U.S. Patent 8,725,853.
Tarafdar, M., Gupta, A. and Turel, O., 2013. The dark side of information technology use.
Information Systems Journal. 23(3). pp.269-275.
Venkatesh, V., Thong, J. Y. and Xu, X., 2012. Consumer acceptance and use of information
technology: extending the unified theory of acceptance and use of technology. MIS
quarterly. 36(1). pp.157-178.
Online
Ramey, K., 2017. THE ROLE OF INFORMATION TECHNOLOGY IN TODAY’S WORLD.
[Online]. Available through: <https://www.useoftechnology.com/role-information-
technology-todays-world/>.

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