Information Technology's Role in Royal Bank of Scotland Analysis

This report provides an in-depth analysis of the role of Information Technology (IT) within Royal Bank of Scotland (RBS). It begins with an abstract and introduction, defining IT and its significance for businesses, particularly in the banking sector. The literature review explores IT's impact on communication, data management, marketing, and business growth, emphasizing the benefits of effective IT implementation. The report then examines the ethical and social issues arising from IT, such as security, privacy, online theft, and hacking, and how these challenges affect RBS. It also details different networking technologies like LAN, MAN, and WAN, assessing their suitability for RBS's operational needs. Finally, the report concludes with a discussion of the System Development Life Cycle (SDLC) and its importance. The report references various sources to support its claims, offering a comprehensive overview of IT's role and challenges in a major banking institution.

Introduction to
Information Technology

Table of Contents
ABSTARCT ....................................................................................................................................1
INTRODUCTION...........................................................................................................................1
Literature review ............................................................................................................................1
Role of IT...............................................................................................................................1
Ethical and social issues related with IT................................................................................3
Different types of networking ...............................................................................................4
Importance of internet and intranet........................................................................................6
Stages of System Development Life Cycle ...........................................................................7
ANALYSIS AND DISCUSSION...................................................................................................9
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................11

ABSTARCT
IT provides effective technology and better use of computers to provide significant help
to an organisation in storing, transmitting and retrieving data and information. This project is
based on Royal bank of Scotland which is a retail bank of UK and providing banking services in
different parts of UK. This report includes the role of IT in making an organisation successful
through providing better communication and easy transfer of information. IT is useful for
effective marketing and promotion of a product or services. But IT also has also created some
ethical and social issue in Royal bank of Scotland. Use of internet and intranet is also helpful for
an banking organisation like Royal bank of Scotland. Stages of system development life cycle
provides an effective system for increasing capabilities of end user.
INTRODUCTION
Information technology (IT) refer to the use of computers, networking, storage and other
physical devises, processes and infrastructure to create, stores, process, exchange and secure all
forms of electronic data (Benhamou, 2019). IT is very useful for any business organization to
maintain better relationship with consumer as it providing better interaction between them and an
enriched experience is also offered to customers through offering various facilities. IT also
enable better product development through implementation of market infrastructure and right
techniques to extend their market geographically. For this assignment Royal bank of Scotland is
selected which operates as rattail bank of UK trough personal and business banking (Royal bank
of Scotland, 2019.). It is having around 700 breaches in Scotland, England, Wales and in many
other large towns and cities of UK. This project includes role of IT in success or failure of
organisation and ethical and social issues related with technology. Different between various
type of networking technologies and importance of Intranet and Internet is also included. At last,
this project also consists different stage of system development life cycle.
Literature review
Role of IT
Information technology basically refer to the study, design, maintenance, development
and better use of computer software, systems and networks (Dandekar, 2019). The various
factors or product included in information technology are completer hardware, software,
electronics,semiconductors, internet, telecom equipment and e- commerce. In today's digital era,
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IT plays an important role in success or failures of business organisation as optimum use of IT
provides accurate business planning, effective marketing, global sales, systematic management,
instant customers support and long term business growth. Development of Information
Technology has provided many facilities like online shopping, social networking, digital
marketing, clod computing and digital communication which has provided a better interaction
and relation between customer and organisation (Information Technology & Its Role in the
Modern Organisation, 2019). The vital role played by IT in smooth functioning of Royal bank of
Scotland is described through following points:
 Effective communication- IT plays a crucial role in developing an effective
communication between organisation and its customers, partners and employees. This
offers a better understanding of need, trends and behaviours of customers and business
environment and also provide a medium to effectively communicate this information
with employees and other stakeholders to ensure the success and future growth of
organisation (Eason, 2014). Royal bank of Scotland is making use of various channels
like email, social media, webinar, member portals, online newsletters, multimedia
messaging, etc. to establish an effective and unbroken communication with its customers
and employees.
 Data and information management system- Development of IT provides an effective
way to organisation to store its large data, documents and files in a digital way which has
reduced the burden of manges and clerks. A tremendous amount of historical data about
employees, sales, expenses, productivity, etc. can be easily stored for a longer period of
time and use of computer software also provide easy assess of this information. An
effective management information system is used by mangers of Royal bank of Scotland
to easily track its profitability over time, maximize return on investment and to identify
sphere of improvements. Use of computer software and IT provides a better track and
check on amount of sales so that if there is any reduction in sale amount timely action can
be taken by manger to boost employees productivity which ensures success of
organisation (Kiran, Oudshoorn and Verbeek, 2015).
 Marketing and business growth- marketing plays a vital role in success of an
organisation through maintain a adequate amount of sales and profit level. Use of IT
provides marketing tools to identify target audience and observe their trends and needs so
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that polices can be made to attract more customers. Use of digital marketing has made
promotion and advertising very effective and easy with minimum level of cost and
expenses. Different phenomenon has get emerged with development of IT like search
engine optimisation (SEO), pay per click (PPC), blogging, discussion forum, email shot,
SMS, MMS, social media marketing and Smartphone app advertisement etc. which can
are used by Royal bank of Scotland and other organisation to promote its financial
product and insurance mote effectively to attract better pool of customer for its success
and growth (Law, Buhalis and Cobanoglu, 2014).
From the above points it can be concluded that IT is becoming necessary for every
organisation to achieve its objective of success and growth as it establish better relation with
customers and helps in effective marketing and promotion of product and services. Use of IT
also facilitates effective accessibility and recording of data which has reduced burden of mangers
and also provide past records for effective planning which is essential for success of an
organisation.
Ethical and social issues related with IT
Use of IT has facilitated many advantage to an organisation but at the same time many
social and ethical issues are also created by development of IT. The main social and ethical
issues or threat associated with IT which are faced by Royal bank of Scotland are discussed
below.
Ethical issue
 Security- Several tools of IT like internet has made it easy for hackers to hack any
computer or device to access any personal data or confidential data of an individual or
origination for there selfish reason. Royal bank of Scotland is also facing a threat of
security as transfer of money through online banking can be easily interrupted or breach
by hackers to transfer money in their own account which effects and create threat and
issues for both bank and customers who are making use of online banking technology
(Marchewka, 2014). Privacy issues- Development of IT has enabled easy share of information and data
through eliminating geographical barriers but at the same time it has created a threat and
exploitation of freedom of privacy. Use of social media and digital channels has exposed
personal information of an individual to a large number of people who can have a check
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and easy assess on their private life through making use of advance technology. It
become necessary for all organisation like Royal bank of Scotland who are making use of
IT for communicating with its customers and employees to have proper control measures
to save and protect the personal information ( like password of debit and credit card) of
its customers and employees and from outside world to maintain their privacy.
Social issue
 Online Theft- Development of IT has increased the number of cyber crime and provide
an easy way to criminals for making theft of money or information. Cyber criminals
make use of IT technology to assess or get information about someone credit or debit
credit or other confidential information to hack their bank account and to steal money
from their account. Thus, increasing online payments and thefts has created a threat for
Royal bank of Scotland. It become necessary for banks to keep a close eye on each
transition and they should make use of strong firewalls to protect confidential information
of its customers (Mehlman and Li, 2014).
 Hacking- It is a process through which a person get unauthorised assess or intrusion in a
computer or network to fulfil its selfish motto. With the advancement of IT numbers of
hackers and hacking incidents has increased which gas created a big social issue as all the
information stored in computers and other devises of an organisation or individuals are at
stake and can be misused by any one. Non malicious hacking activities involves
password cracking, packet sniffer, spoofing attack, key loggers, etc. to get unauthorised
or illegal assess in an computer network to make alteration and modification in a process.
Royal bank of Scotland should make use of up to date security programmes, OS system
and anti virus to protect all its data and information from threat of hacking.
Different types of networking
Networking refers to a combination or connection of hardware and software for
transporting and exchanging data and information among different nodes over a shared medium
of information system. Use of different networking technologies are made by an organisation for
easy and smooth flow of data from one device to another (Neuhofer, Buhalis and Ladkin, 2014).
The various types of networking which can be used by Royal bank of Scotland to ensure
uninterrupted flow of data are as follows:
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 LAN (Local area network)- It mainly refer to a small group of computers that all
belongs to a same organisation or building that are liked within a small geographic area
through using a network and same kind of technology. It is the simplest form of a
network and make use of Ethernet network and its coverage is only up to some kilo
meters as speed get reduced with increase in the distance.
 MAN (Metropolitan area network)- This network connects computers in a area which
is lager that local area but smaller than wide area i.e. this term applied to interconnection
of networks up to a large city level. MAN is also used to connect various local area
network through use of point to point to connection between them. Network size of MAN
generally ranges from 5 to 50 km and its data rate is moderate. MAN facilitates easy
sharing of resources up to a metropolitan city levels and generally owned by a network
providers (Nieves, Quintana and Osorio, 2014).
 WAN (Wide area network)- This network is having a vast a area coverage up to great
geographical distances which can even cross the boundaries of nation. The speed offered
by WAN depends on cost of network and this speed can also vary from lactation to
location. Usually WAN makes use of routers which make choose the most appropriate
path to effectively transfer data between two or more nodes in a network. The best
example of an WAN network is Internet.
From all the above networks, WAN is most suitable network for Royal bank of Scotland
as this bank is operating trough various bran chess which are situated at various parts of
Scotland, England and Wales and aloes include some other parts of UK. Thus, it require a
network which provide coverage to a vast geographical area to properly communicate or transfer
information among different branches.
Differentiation between network technologies
The difference between network technologies are as follows:
LAN MAN WAN
Provide connection in a small
local area with in building of
an organization or school .
Having a larger coverage area
up to a level of big city
(Differences Between LAN,
MAN and WAN, 2019).
Provides coverage to largest
distance even beyond
geographical area of a nation.
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Use of Ethernet is made to
transfer data between two
nodes.
MAN makes use of internet
and Ethernet for easy flow of
data.
Use of Internet is common in a
WAN network.
Provides fastest speed as
coverage area is small.
Higher to moderate speed is
provided by MAN.
Cover a vast area thus, speed is
low as compared to LAN or
MAN.
LAN is the cheapest type of
computer network.
Price of MAN is competitive
in nature and depends on its
size and speed.
WAN is an expensive type of
network.
LAN gets operated through
peer to peer system
MAN is mainly operated by
organisation and public
utilities.
WAN get operates on client to
server basis (Pardo and
Siemens, 2014).
Importance of internet and intranet
Both internet and intranet are important for Royal bank of Scotland as they offers
following benefits:
Internet- This is a network of globally connected devises and systems that make use of
various TCP and IP to transfer data through various types of media. Internet is considered as a
network of global exchange which includes combination of all private, public, business,
academic and government network which are connected by wireless and fiber optic technologies.
Internet provides easiest way to a business organisation to connect with its clients and customers.
For Royal bank of Scotland, internet is playing a important role in its success through providing
following advantage: Easy communication- internet has reduced the barriers of geographical area and
facilitates easy transfer of data and information (Reuter, 2019). Internet provides an
effective and uninterrupted connection and communication between organisation and
customers which provides a easy way to deliver all the relevant information to them.
Internet provides a cost effective and instant way of commutation through making use of
social media and other digital mode of communication. Facility of online conferencing,
video calls, emails, etc. is also provided on internet which provides a fast and better
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interaction between mangers and employees working at different geographical area.
Thus, Inherent is important for Royal bank of Scotland to develop and maintain good
relationship with all its stakeholders.
 Facility of internet banking- Internet or online banking has made life of both customers
and organisation easy as it has solved the problem of travelling and rush at bank. With
introduction of internet banking there is no need to visit bank to deposit or withdraw
money, request account statement, or to stop a payment (Sampson and Makela, 2014).
All these task can be easily performed trough making use of internet banking app on
computer or on smart phone. It has removed all geographical barriers as now any
customer of bank can make transaction or payments form its account from anywhere in
the world. Internet banking app of Royal bank of Scotland providing a 24/7 hour facility
to its customers and providing a close eye and check on their account so that chances of
fraudulent activity can also be reduced. Internet banking provide a better and enhanced
experience to customers and also provide an effective medium to bank to promote and
endorse its product.
Intranet- This computer network is used to share and transfer corporate information,
computing services, operational systems and other collaborations tools within an organisation.
Intranet is playing a important role in Royal bank of Scotland which are described below- Improve employee engagement- Use of intranet is made to establish better relationship
with employees through establishing better communication and interaction in an
organisation. In Royal bank of Scotland mangers are making use of intranet to motivate
and inspire its employees to improve their performance. By keep on logging and blogging
intranet helps in connecting employees with each other and provide better coordination
for achievement of targets (Santoro, 2015).
 Mange remote work capabilities- intranet is providing a better connection and relation in
organisation thus providing grate ease to Royal bank of Scotland to mage its remote
capabilities which are working in more than 700 branches this of organisation
Stages of System Development Life Cycle
With advancement of technology people are switching or adopting innovative technology
for better performance of organisation (Schwalbe, 2015). System development life cycle
provides a complete project management model to effectively bring implementation and use of
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technology in an organisation. Royal bank of Scotland is making use System develop met life
cycle to provide a framework for proper design, development and maintenance of a system for
meeting and fulfilling the expectations of its stakeholders. The various stages of system
development life cycle are explained below:
Illustration 1: System development life cycle
(Source: System development life cycle, 2019) Planing- this is the first step of system development life cycle where proper plan is
made to start a big project. All the problems and issues related with the purpose or scope
of projects are discussed here and effective plans are made to remove those hindrance. System analysis and requirements- Under this stage functional needs and requirement
of project are analysed by teams and organisation to ensure the achievement if new
system in meeting and fulfilling the needs of end user (Wang and et. al, 2016).. Systems design- In this stage, the essential operations, specification and features of
project are put in place to satisfy the functional needs and essential requirements of
proposed system. Development- Under this stage initial sections of project comes to an end and actual
designing and production of project get started with proper implementation of change
and instillation of project (Benhamou, 2019).
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 Integration and Testing- This is the fifth stage of system development life cycle where
integration and testing of project or system take place for ensuring the quality of project.
In this stage it is also checked whether the project is able to meet the business goal and
objective which are set in the planning stage (Dandekar, 2019). Implementation- This is the stage where the theory or planing of project is implemented
and executed in practical way. This stage includes installation of all software and
hardware and completion of documentation work. Training and knowledges is also
provided to employees for effective implementation of project.
 Operations and Maintenance- This is the last stage of system development life cycle
where an effective and specific system is provided to end user to enhance their
performance through adding new capabilities and meeting the requirements of users
(Eason, 2014).
ANALYSIS AND DISCUSSION
From this project it can be analysed that IT plays a important role in success of an
organisation. Various benefits like effective communication and marketing of product is
provided by IT which is helpful in enhancing and improving the performance of Royal bank of
Scotland. Data and information management is helpful in keeping records of Royal bank of
Scotland and use of IT also facilitates better marketing and promotion. But use of IT is also
creating some issues in Royal bank of Scotland which are related with threat of hacking and
misuse of confidential data. This threat can be overcome through making use of anti virus and
strong security password. But still IT is necessary and useful for an organisation in establishing
better communication and for storing and transferring important information.
CONCLUSION
From the above seaport it can be summarised that IT plays a crucial role in every
organisation which lead to its success. IT is helpful in establishing better communication with
customers and employees and also provides better promotional tool through making social media
and digital marketing. IT has also created certain ethical and social issues like hacking and theft
of information and money. Different type of network are also there like LAN, MAN and WAN
foe better and effective transfer of data. Use of internet and intranet is also made by organisation
for establishing better communication. At last it can also be concluded that stages of system
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development life cycle provides a better and more effective system to increase the strength of
end user.
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