Impact Of IT On Commonwealth Bank - Business Essay.

You are to research a real life business example of your choice and the impact of IT on that business. 

1) Does your chosen business need IT?

2) Why IT is important for business survival?

3) What is required to apply IT into your chosen business? (I.e cost, planning, designing, equipment, installation, training, etc...)

4) How does your chosen business use IT? (internally such as employees, and externally such as customers, suppliers)

5) What benefits and advantages does IT bring to your chosen business? (I.e. revenue, flexibility, reduces cost, etc....)

6) What type of risks does IT bring to your chosen business? (i.e. security, privacy, confidentiality)

7) How can your chosen business maintain and monitor IT? 

Your report will be assessed on the quality of your research and report presentation. Discussion must be relevant to your chosen business. Your report is to be in the style of a business report.

You can choose a business from any of the following industries:

• Healthcare

• Food processing

• Banking and finance

• Telecommunications

• Library

• Transport

• Airlines

• Printing and publishing

• Media

• Computer gaming

• tourism

Need of IT in Commonwealth Bank

With the change in the world there is the change in the technology. Information technology is the application of computers that helps in the business to store, retrieve the data (Lacity, Yan & Khan 2017). Talking about the banking field they use technology for smooth working. The sector is developing day by day that too with the help of technology. Banking sector perform task in the bank and do uses IT but apart from the banking service banks provide extra services to their customer that is internet banking, mobile banking, online banking, etc. technology enhance the growth of the banking sector. With the explosion of the technology banking sector is grooming and from the banking industry from the paper is converting to the digitized and networked banking.

Commonwealth bank is the Australia’s leading bank that provides integrated financial services, funds management, insurance investment, premium banking, etc. the aim of the company is to provide good and innovative services to the customer and its motive is to achieve work in the effective and efficient manner (Commonwealth 2012). Further the paper includes the need and importance of IT for the company and how IT plays an important role in the working of the company, for the equipment’s IT is must.

Commonwealth bank is the leading bank in the banking sector; IT is must for the working of the bank. Bank is connected to the large number of customers and provides services for providing services to the customers. The bank provides online banking services under the name of CommSec and Bankwest. For carrying the day to day operations the bank needs technology so that they can work with the full efficiency. With the use of the IT bank can expand the business services worldwide and also IT helps to provide customers a way to access information from anywhere. The system to provide services to the customer needs IT. Networking of computerized branches it can be either inter- city or intra –city that is possible just because of the IT. With the emergence of new technology company apply that technology and provide new and innovative service to the customers. Bank contains 4300 ATMs and 1100 branches regionally and nationally respectively (Commonwealth 2017).

In the growing word there is no industry who can work without the use of IT. The growth and survival of the company is possible with the involvement of the technology and it needs innovative technology to retail customers and grow. The technology has changed with the change there is the implementation of the debit and credit card. Earlier there were most of the transactions were done by the use of cash. Technology is reforming the business between the customers and the business (Commonwealth 2016). Technology is essential for the small, medium and large business which increases the services opportunity for the customers. IT helps in enhancing the customer loyalty towards the company. With the implementation of the services like cyber cash, it has decreases the burden. IT made employees to fell burden free and the work load of the employees is reduced with the emergence of the IT.

Importance of IT for the survival of Commonwealth Bank

In the banking sector the use of IT is basically in the ground of equipment and training.

• Equipment’s:- Bank keeps their equipment’s up to date and keep monitor on it daily. For the bank equipment’s are the application software that helps in making the trading. There is use of machines such as ATM’s which is for the convenience of the customer and reduces the work load of bank. The machine or equipment’s needs IT because of that only company uses IT in the equipment’s. Commonwealth bank has broking application which is useful in applying the applications and for keeping a check on their transactions (Commonwealth 2017). This bank provides the easy and speedily payment way, for this bank has generated PayPass cards. Customer supports this kind of technology introduced by bank. As this helps in providing the customers a better and convenient way.
• Training: - IT plays a vital role in the training process, training is one of the essential part for the employees of the company so that they can learn the working properly and implement the same in the effective way. There are different kinds of training but training also needs IT, for giving employees a better way of living. In the training company uses different technology so that they can let the employees understand the work. There is also on job training in which employees learn the work by going at the work place. This will enhance employee’s knowledge and they get to know how they have to work and use software.

Internally – Employees: - IT is used by the employees of the bank; in the bank for regular working they use internet and different software or applications which make their working easier. Commonwealth bank employees uses IT for the purpose of knowing information about the customer ID, customer backdate details, keeping track record, and also for the day to day transactions. With the up gradation in the technology the system of the working and tracking the old data is becoming more convenient. Not for tracking or fetching old data, but also to complete day to day activity much faster (Kotkar 2016).

Externally- customers: - With the technology the way of working of the bank is changed and with the changes in the working there is a change in the lifestyle of the customers (Commonwealth 2017). Customers now have option to pay the way they want, for the any business payment they can make payment through the option of credit cards, BPAY and direct transfers. With the small business app customers can accept partial payment and can send a notification for the outstanding balance directly from your tablet and mobile (Commonwealth 2015). Commbank kaching for facebook allows the customers of the bank to fulfill their banking needs without switching social networking site (Commonwealth 2012).

Above two points shows the use of the IT by internal and external sources. Commonwealth bank is working for the delivering best services to the customers and for delivering best services the bank makes sure that the applications are working smoothly.

In the banking sector the workload that banks are having is too much but with the innovation in the technology or with the development of the technology the work of the banking sector is decreasing day by day. Employees work without any burden that increases the efficiency and effectiveness in the work (Bennett 2015).  Technology helps in enhancing the productivity of the employees. Sharing and tagging on NetBank facility is taken by the commonwealth bank which provide facilities to the customers to share their payments with Facebook friends and tagging all the expenses. These facility and updated technology applied by the bank enhance the customer services and more and customer will like to connect with the bank so that they can get the advantages of all these services. IT brings flexibility in the working of the bank (Commonwealth 2017).  

Cyber-attacks are the major risk associated with the banking sector. There is cyber risk in the form of the data theft, destroyed files, and comprised accounts. This is the one of the issue on which there is need to concern about it from the management side. With the technology emergence in the work there is the emergence in the cyber-crime. That is the threat for the banking sector, as there are so many deals of the clients that are saved with the bank. Hackers can hack the system and applications and they can misuse the confidential details that affect the banks and will reduce the trust of the customers. The information related to the customer is kept in the system of the company, some of the confidential details of the customer should be kept on some saved place so that the risk associated with the details should not be there and will not create the problem for the company. The details stored at the company system can be stolen easily. It creates a bad impact on the customer and result in decrease the reputation of the company. There is strict restriction for the disclosure of the customer details with the permission of the customer; penalty can be charged for the same (Deloitte 2017).

Application of IT in Commonwealth Bank

The bank has register and in connection with many service that bank is providing to the customers. This is possible because of the use of the technology and if company is maintaining the software and application company should maintain that upgrade that time to time. Implementation of the antivirus and malware system will prevent from the any issue. Company is focusing to provide online banking to the customers available in the worldwide. This effect the monitoring of the company management in which company hire employees who have the skills to manage the skills and should have skills of using artificial intelligence. Regular monitoring of the company software and applications is must so that it will prevent the company from the blunders (Kamboh, & Leghari 2016).  

As company is already making the use of the IT but now company should keeping in touch with the new technology. The bank can facilities more and more services to the customer with the use of technology. That will enhance the response of the customer towards the bank services and they will use that service. This will helps the bank to generate more and more revenue for the company. With the help of online banking company can easily advertise the product and the scheme according to their requirement. This way out also generates revenue for the company. So company should implement new ways for the same.

Conclusion 

The commonwealth bank is providing new services to the customer with the use of the latest technology. The bank has also provided access of information to the stakeholders. Company is investing in the latest technology and this is creating the opportunity for the company to take a step ahead for the growth and development of the company. Few years back bank also faced the crises which impacted the company result in loss to the company. This created a bad impact on the customers mind as customers lost their confidence. For banks this is must to keep the liquidity with the banks so that this may not affect the liquidity of the bank that can help to resolve the requirements of enormous share of the retail customer base that is 61% (Murdoch 2011). Each and every field needs IT, talking about the banking sector IT is must for the smooth working. The above paper includes the requirement of the IT to the commonwealth bank.

References

Bennett, A, 2015, THE IMPORTANCE OF EMBRACING INNOVATION, viewed on 31st May 2017, https://www.commbank.com.au/guidance/blog/the-importance-of-embracing-innovation-201510.html?ei=gsa_articles_importance-of-technology

Commonwealth, 2012, CommBank to launch multiple technology firsts for simpler more convenient banking, viewed on 31^st May 2017, https://www.commbank.com.au/about-us/news/media-releases/2012/121128-commbank-to-launch-multiple-technology-firsts-for-simpler-more-convenient-banking.html

Commonwealth, 2012, COMMONWEALTH BANK TECHNOLOGY UPDATE, viewed on 31^st May 2017 from, https://www.commbank.com.au/about-us/shareholders/pdfs/2012-asx/Commonwealth_Bank_Technology_Update_25_May_2012.pdf

Commonwealth, 2015, USE TECHNOLOGY TO LET CUSTOMERS PAY HOW THEY WANT AND GET PAID SOONER, viewed on 31st May 2017, https://www.commbank.com.au/guidance/blog/use-technology-to-let-customers-pay-how-they-want-and-get-paid-sooner-201509.html?ei=gsa_articles_customer-uses-information-technology

Commonwealth, 2016, TECHNOLOGY- THE KEY TO SMOOTH IN-STORE CUSTOMER EXPERIENCE, viewed on 31st May 2017, https://www.commbank.com.au/guidance/blog/technology-the-key-to-smooth-in-store-customer-experience-201604.html?ei=gsa_articles_importance-of-technology

Commonwealth, 2017, Commonwealth Bank overview, accessed from, https://www.commbank.com.au/about-us/our-company/overview.html

Commonwealth, 2017, Equip, viewed on 31^st May 2017 from, https://www.commbank.com.au/content/dam/commbank/assets/business/asset-finance/cba-equip-magazine-issue6-2017.pdf

Commonwealth, 2017, Innovation, viewed on 31^st May 2017, https://www.commbank.com.au/corporate/industries/institutional/technology.html

Commonwealth, 2017, Our Strategy, viewed on 31^st May 2017, https://www.commbank.com.au/2014shareholderreview/strategy.html

Deloitte, 2017, Information technology risks in financial services, viewed on 31st May 2017, https://www2.deloitte.com/us/en/pages/center-for-board-effectiveness/articles/information-technology-risks-financial-services.html

Kamboh, K.M. & Leghari, M.E.J., 2016. IMPACT OF CASHLESS BANKING ON PROFITABILITY: A CASE STUDY OF BANKING INDUSTRY OF PAKISTAN. Paradigms, 10(2), p.82.

Kotkar, S.N., 2016. Technologies in Nationalise Banks: Factors Influencing on Customers. International Journal, 4(9).

Lacity, M., Yan, A. & Khan, S., 2017, January. Review of 23 Years of Empirical Research on Information Technology Outsourcing Decisions and Outcomes. In Proceedings of the 50th Hawaii International Conference on System Sciences.

Murdoch, S, 2011, We can handle this crisis, says the Commonwealth Bank, The Australian Business Review, viewed from, https://www.theaustralian.com.au/business/financial-services/we-can-handle-this-crisis-cba/news-story/d54a09b597b78a4c199ad70c48fa5e3c