IIT Assignment

Impact of Information Technology on

business operations of Standard
Chartered Bank
Student ID:

BA in Business Studies(Foundation Year)

University of Suffolk

Date of Submission:

Word Count:

I declare that this assignment is all my work and that I have acknowledged all materials used
from the published or unpublished works of other people. All references have been duly cited.

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Abstract
This report aims to find out the significance of information technology in defining the
development in the service industry. This report has determined the importance of IT after
analysing standard Chartered Bank. This report has found that various information systems help
organisations in developing their operational efficiency. This report has analysed social and
ethical issues related to business. This report has analysed different networking technologies and
found that LAN, PAN, MAN and WAN helps business enterprises in the process of effective
communication. This report has even evaluated the importance of social media for evaluating
and determining the customer-friendly strategy. Finally, this report has discussed the phases of a
software development process.

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 Table of Contents
Abstract............................................................................................................................................2

Introduction......................................................................................................................................4

Literature Review............................................................................................................................5

Role of Information Technology.................................................................................................5

Ethical and Social Issues of Technology.....................................................................................6

Different Types of Networking Technology...............................................................................7

Significance of Social Media from the business perspective......................................................7

Life Cycle of Software Development..........................................................................................8

Analysis and Discussion..................................................................................................................9

Significance of Information Technology in the Selected Business.............................................9

Ethical and Social Issues in the selected Business....................................................................10

Networking Technology in the selected business......................................................................10

Significance of Social Media in the selected business..............................................................11

Conclusion.....................................................................................................................................12

References......................................................................................................................................13

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Introduction
Information technology (IT) is the procedure of designing, improving and maintaining
information by using hardware and software. In the process, information technology analyses
data and then communicate the perceived result with the users (Howell, van Beers and Doorn,
2018). Information technology impacts a business in performing operational activities with
efficiency. This report will evaluate the significance of information technology in defining the
success or failure of an entrepreneurial venture. This report will also try to find out ethical and
social issues that are in association with a business. Moreover, this report will discuss different
networking technologies and then it will evaluate the impact of social media in business. Then
this report will identify different stages of a software development life cycle.

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Literature Review
The application of computer hardware and software is to design, improve, and monitor
information and the process of this application is identified as information technology (Luftman,
Lyytinen and Zvi, 2017). According to Venkitachalam and Ambrosini (2017), information
technology analyses data and based upon the defined result, it communicates the data with the
users by using defined communicative hardware and software. To become successful at the
entrepreneurial level, organisations need to evaluate and implement information technology.
According to Yeniyurt et al. (2019), information technology benefits businesses in tracking
employee behaviour and providing appropriate reviews and improvements in various segments.
They also added that IT helps organisations in defining and understanding the behavioural
change of the customers and eventually helps the organisation in connecting their actions
towards catering for the consumers. Attaran and Gunasekaran (2019) stated that IT helps
organisations in recognising what needs to be done and based on the evaluation IT helps to
increase operational efficiency. They also added that IT helps in generating a better assessment
of the position of the competitors which eventually defines the strategic decisions of
organisations. Information technology helps to analyse data which benefits decision regarding
segmentation, targeting and positioning of businesses.

Role of Information Technology

Information technology is used in every type of entrepreneurial venture. IT is used from small
manufacturing plants to big multinational service providing entities. Information technology
helps an organisation in processing efficient communication inside the organisation as well as
outside the organisation (Delsing, 2017). For example, by using E-mail, managers and
employees from an organisation can share data about the required supplies. Here, through E-
mail, employees can share the requirement with the manager and the manager can ask for the
supplies to the supplier through e-mails and due to the easy process and cost efficiency,
organisations can move towards the optimum organisational efficiency. According to Bamgbade
et al. (2019), the inventory management system helps organisations in defining the available
stock and based on the evaluation, employees can easily track when the order needs to be given.
If organisations don’t have an inventory management system, then organisations would fail to
order in the optimum time which would reduce the sales and ultimately profitability of the

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organisations would be impacted. Delsing (2017) stated in his research that a record management
system enables organisations in evaluating transactions which help in collecting money from
account receivables on time and paying account payable on time which reduces default risk.
Companies that usually use a record management system, perform their transactional duties in
time which increases goodwill (Bamgbade et al., 2019). By using a market information system,
companies get to know about the trends and condition of the consumers and after evaluation,
companies can undertake the best possible strategy. Financial information system enables an
organisation in defining the best possible budget for the existing market condition of
organisations. For controlling the activities and performance of the employees, organisations use
a control system that helps in developing the existing operational performance of employees.
Consumer relationship controlling system helps organisations in increasing customer satisfaction
by providing data that are important to maintain the perceived value of the customers (Gelinas,
Sutton Jr and Federowicz, 2019).

Ethical and Social Issues of Technology

Ethics can be best categorised as a moral practice of defining what is right and what is wrong. As
all the operational activities of organisations are in close relation with society, ethical and social
issues for a business needs to be evaluated (Ghobakhloo and Azar, 2018). Ethical and social
issues are more impactful concerning information technology. Due to advanced improvement in
information technologies, companies more often formulate a strategy to make falsification while
portraying their budget and other transactional accounts. By using IT, companies are taking
advantage of personalised data and by using or collecting data without taking any consent, these
companies are trying to take competitive advantage (Hackney and Dunn, 2019). Many
consumers have shown their protest against data privacy and made many companies to correct
their judgement related to taking user data without consent. From the consumers perspective,
consumers are often cheated by different online payments which can also be defined as a social
issue. If any business enterprise does anything wrong, then consumers are well aware and due to
the extensive protestation of consumers, many organisations had to publicly say sorry. Due to
information technology, companies can also perform as per the requirement of the stakeholders
as well as of society (Gunasekaran, Subramanian and Papadopoulos, 2017). By using IT
companies know what is the requirement and based on the requirement, companies can best
perform their responsibility.
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Different Types of Networking Technology
To conduct all the entrepreneurial activities, companies need to use a different type of network
technologies. PAN is the personal area network that is used to connect personal equipment.
Personal equipment such as infrared, USB, etc helps organisations in interdepartmental
communication (Paul et al., 2018). LAN is the local area network which portrays a bigger
network than PAN with a range of less than 1km and this network helps to establish
communication with the external partners of the organisations (Chuang and Huang, 2018).
MAN, also known as Metropolitan Area Network, is made up of connecting many local area
networks and it connects organisations to their subsidiary entities. A wide area network is the
combination of several metropolitan area networks and it is spread across countries. It helps
multinational companies in communicating with various international organisations (Gelinas,
Sutton Jr and Federowicz, 2019).

Significance of Social Media from the business perspective

After the widespread availability of the internet across the globe, the quantity of social media
users is increasing day by day and as consumers have become more available on the social media
platform, it has become more significant for companies to dictate their strategy through social
media platforms (Ghobakhloo and Azar, 2018). Social media helps organisations in defining the
market requirement by analysing the consumer trend in social media platforms. For example, by
monitoring the ongoing social media trend, companies can create visuals or strategy according to
the trend to attract the eye mindset of the consumers. Many social media platforms such as
Facebook, WhatsApp sells user data which helps companies to understand the requirement of the
consumers by applying in-depth analysis of the accessible data. Social media also helps to
increase customer satisfaction through improved customer relationship management. By social
media, companies can aware of the customers on the ongoing strategy of the organisations.
Through social media, companies can share vital information that would be valued by the
customers. Moreover, social media helps organisations to answer the questions of the consumers.

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Life Cycle of Software Development
The software development life cycle starts from planning where in-depth planning is performed
to find a solution to the problem that hinders the organisation in moving forward towards
reaching the operational goal. After the planning stage, then comes the analysis stage where
companies perform an analysis of the requirement of resources. After analysing the requirement,
companies create a design for the software in the designing stage. Then in the development
phase, companies give a practical shape to the model that was designed in the designing stage.
After developing the software, companies test the model if the software is capable of performing
or not and in this stage trial and error method is usually used. After numerous testing, in the
integration and execution phase, the software is made public for use. Then comes the final stage
of operations and maintenance where any further flaws are identified and companies try to solve
those issues by taking corrective decisions (Hackney and Dunn, 2019).

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Analysis and Discussion
Standard Chartered is a widely recognised British multinational financial service providing
company. Currently, this organisation poses around 1200 branches in around 70 countries. This
company employs more than 90000 employees across the globe. This company is widely
benefitted due to its efficient use of information technologies. This organisation used information
technology to perform its communicational procedure. This organisation also checks social
issues that are related to using IT.

Significance of Information Technology in the Selected Business

Standard Chartered Bank utilises information technology to perform its communication within
the organisation as well as outside the organisation. Information technology helps the process of
sharing information regarding Standard Chartered Bank easier. If the managers of the bank want
to make all the employees aware of any decision, then the managers of the bank give E-mail or
share the decision in the company’s internal information sharing system which enables all the
employees to get aware of the information (Syahril and Jaya, 2019). Not only the managers but
also the employees of Standard Chartered Bank are benefitted from Information technology as
the employees can share the update of a task that was given to them by their seniors. By using
information technology, the bank can also share many important data with the customers. The
bank can share information regarding any deposit to the customers by using information
technology. Information technology enables the bank to share these data automatically. By using
information technologies, customers can also know about their balance at any time which also
increases customer satisfaction as customers can get the right service at the right time (Costello
and Willcocks, 2018). Information technology also helps the bank in giving its customer the
service of online banking which enables the customers to perform transaction from one bank to
another bank. Online banking reduces the suffering of customers. Also, the bank can store
customer data in the customer relationship management system which enables the bank in
identifying and verifying the customer at the time of transaction. By using ATM, the bank can
give customers the service of withdrawing money from the bank at any time which reduces
customers hurdles (Kendi, 2019). By using the information technology, Standard Chartered Bank
became aware of the requisite service of the customers and based on the evaluation, the company
always introduce new strategy or service to the customers that are more beneficiary for the

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customers. By information technology the bank gets to understand the potentiality of different
markets and based on the evaluation, the bank introduces a new method to gain market
advantage. IT also benefits the standard chartered bank in evaluating the performance of the
employees which helps the company to recognise the best performer and based on the
evaluation, the bank can take steps to increase the performance of the employees.

Ethical and Social Issues in the selected Business

Standard Chartered Bank always has to face several ethical and social issues that are generated
because of using information technology. The main ethical issue that the bank has to face is the
safety of customer data (Costello and Willcocks, 2018). The bank always has to protect the
customers' data otherwise the bank can face a huge financial loss. As the bank uses an
information system in storing customer data and as information technology is created by
communication technology, computer hardware and software, the user data can be hacked and
the data safety procedure of the bank is a considerable ethical issue. If the user data is hacked or
shared, then the whole banking system could face a financial disruption which can affect society.
Securing the deposited money from hackers is also an ethical issue for the bank. Standard
Chartered Bank always ensures the safety of data by applying the best available anti-hacking
system (Syahril and Jaya, 2019). While performing a transaction after getting an order from the
customer, the bank always re-checks the authenticity of the transaction which can also be
evaluated from the ethical perspective of the bank. The bank also doesn’t utilise user data
without any consent as it is a social fraud.

Networking Technology in the selected business

Standard Chartered Bank uses different networking technology to support its operational
activities. To communicate with different interdepartmental decisions, this organisation uses
PAN. For example, to give any direction to the employees, the departmental head uses PAN to
aware all the employees about the direction. The bank uses LAN to disseminate information to
other departments. For example, the HR head of one branch of a standard chartered bank shares
data to the PR head by using LAN. The bank also uses WAN to communicate with different
branched that are performing in different parts of the world. The regional manager from London
is sharing vital information with the regional manager in Mumbai is a better illustration of the

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bank’s proper utilisation of WAN. Sometimes, the bank also uses MAN to communicate with
other banks operating in one regional area.

Significance of Social Media in the selected business

By using social Media, Standard Chartered Bank understands the requirement of the consumers
as most of the consumers are available on social media platforms. By evaluating the customers
need, the bank initiates or provide new service to the customers. To increase customer
satisfaction, the bank also shares different vital information regarding banking. By social media,
the bank increases customers awareness of fraud through online banking. Social Media helps the
bank in educating its customers towards a safer transaction (Mbai, Ngui and Ndiao, 2018).

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Conclusion
This report has analysed the significance of information technology in performing operational
activities of Standard Chartered Bank. This report has also analysed ethical and social issues that
are in association with the bank. Moreover, this report has also discussed different networking
technologies and then this report has discussed the impact of social media for the bank in
reaching towards the operational foal. This report has also identified different stages of a
software development life cycle.

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References
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