Impact IT on business

TASK 1

1. Need of IT in business

The Information technology can be defined as using different systems like computer and other electronic devices to store retrieve and transfer data between the devices. This provides ease to various functions of  business (Chavis, Klapper and Love, 2011). The airline industry is growing at the higher rate. Ton maintain this growth it is necessary to implement updated IT softwares in their business operations to simplify the complexity of  function that are carried out in  organisation. The British airlines implanted IT system in the organisation for engaging the business in more revenue generating activities. The various needs of IT in British airways are as follows:

• The system of information technology is required by the British airlines to develop strategic  decision by top management effectively.
• The IT is required to bring creativity and innovation in the operation and function of the airline (Jasiulewicz-Kaczmarek and Droyner, 2013).
• The company uses different information technology while developing any business plan or marketing plan. So, IT is required to analyse  effectiveness of strategies and business plan.
• The companies require information technology to connect different department of airlines to work together in unity.
• The airlines are implementing information technology in their system to develop a centralised information system in the business. This provides ease to access information and makes use of it efficiently.
• The IT is needed to maintain good customer relationship with customers as well as employees.
• The development of IT programme is needed in the origination to reduce various costs and effectively managing available funds.

2. IT is important for survival of business

The competition is increasing with a faster rate in the market. To survive in this highly competitive market the business practices have to be carried out in  smarter way and mange the technology up to date with the needs of the changing market trends. IT is important for survival of British airlines to bring innovation in the  system. The implementation of information technology helps in maintaining and streamlining various processes carried out by the airlines. This is important to cut down the cost (Klapper, Lewin and Delgado, 2011). The implementation of IT in operations is also important in reducing complexity of functions in the organisation to the large extent. IT have great importance in reducing communication gap and the connecting different departments which helps in brings integration in work culture of the British airlines. The implementation of IT helps in generating more revenue. The implementation of the IT systems in  British airways result in generating  about 20% more profit i.e. approximately 620 million euros. IT systems are important in gaining competitive advantage and customer loyalty with implementation new technology in the systems of the organisation. The BA.com websites of British airways bring higher rate of automation and it has reduced complexity. This helps the customer in making the search services of the airline according to their own preferences and lead to development of customer loyalty by providing better quality services to customers.

3. Requirements to implement IT in business

Identification of various requirement of British airways to implement IT software in the operation of company and available resources at present with the airways is necessary to develop IT upgraded business in the market.  (Plattner, Meinel and Leifer, 2010). Various requirements to implement IT in  British airways  are as follows:

Planning: Planning is necessary for growth of any business idea or strategy. First identify needs of IT in the British airways then analysing the cost incurred, and available resources like, sources of up gradation, efficient human resource etc.

Designing: After planning about the IT implementation it is necessary to develop a blueprint of the plan and strategies to bring accuracy and effectiveness in developing IT in business organisation.

Cost: Analysing the cost incurred in the IT development plan and in its implementation. Analyse this with the return on investment and finding out efficiency and profitability of the business plan. (Wiengarten and et.al., 2013).

Equipment: Identification of the various equipment’s like  database, software’s, hardware required to implement IT successfully in business organisation.  The British airways develops various systems of IT in the organisation  structure like customer oriented program, SOA, Computerised reservation system etc.

Installation: this includes testing the design and installing new generated software in the organisation to practice the effectiveness of the IT system implementation in organisation. EX. The marketing department of British airways are using computerised reservation system in order to collect data of customer behaviour, purchasing behaviour and their preferences and other data.

Training: After installation, the employee of organisation should be provided with the training programme to introduce the workforce with new technology up gradation in the company’s system and use of this IT system. This training programme will results in enhancing  effectiveness and efficiency of the workforce of organisation.

4. USE of IT in business

The IT is utilised to build connectivity with internal system of the company as well as external environment of the organisation. The technology is used internally by employee and top management of  British airways. While the IT is utilised in various ways by the customers and suppliers of the British airways (Wild, Wild and Han, 2014). The various uses of IT in the different environment of British airways are as follows:

Internal environment: The internal environment constitute employee of different department and the top level management. The employee make use of IT in order to communicate internally and externally with the other people who is connected to the system of the organisation. The customer care department of company communicate with helps of the internet network to resolve the problem of client. The employee of British airlines make use of upgraded software’s like SAP, SOA to manage operations, customer relations, budget of the company effectively in an efficient manner (Concepts of Information Security. 2017). The Pilot and other employee working at the aviation lines make use of various technologies to manage various functions like aircraft manual, engineering procedure, and material availability and manage different action task.

External environment: The customer and suppliers make use of extranet network in order to communicate with British airways peoples. The customer makes use of internet to communicate with employees of the company. While the suppliers connect with the organisation through extranet to manage various orders, inventory, payments etc. the employee make use of British airlines websites, mobile apps to check different flight timing destination, prices, facilities etc.

5. Advantages of the IT in airline business

The company is getting benefit from IT industry and it is generating more revenue for the firm. The implementation of IT in organisation is having following benefits and advantages:

Speed and time: The IT enhances speed of operations to the large  extent and helps in time management and optimum utilisation of time. The British airlines have developed various systems to manage e task and other engineering policies effectively which saves time and increases speed of functions carried out during boarding.

Revenue: The introduction to new technology in organisation system helps in generating more revenue for British airlines. With the help of mobile apps, company websites companies are making profit for the organisation.

Cost reduction: The IT helps in reducing various cost incurred in different operations of the companies (Top 9 Benefits of Business Networking, 2017). IT helps in developing more efficiency and effective system in the organisation which reduces the cost incurred in various operation of airways companies, HR  department, cost incurred in other procedures like sending information manually etc.

Easier Storage: The IT provides huge place for storing information in in database of the company. With help of the IT airline companies can store huge no. data and information.

Flexibility: The IT system brings flexibility and adaptability to any change in environment and technology. (Yayla and Hu, 2012.).

Automation: The IT system brings automation in system which helps in reducing cost, workload of employee and increases effectiveness of the organisation.

6. Risk associated with IT in organisation

Every system has risk associated with them. Implementation of technology in the organisation has also risk associated with them. The different risk incurred in the implementation of IT is the security, privacy,

Confidentiality- The security of the data and information of the company should be secured so that other person cannot make wrong use of this data (Williams and Williams, 2010). The airways companies like British airways develop highly secure communication network while sending information with the help of SSL firewalls etc. The privacy of  data restricts accessibility of information to some of the person. Like, the company implement privacy to their internal information to protect data from other competitor company. Confidentiality refers to hiding private and secret information from other. This need encryption password and firewalls top protect information from other external intervention. The risk associated with the confidentiality of the information is that it can be leakage of the secret data to unauthorised person and he can misuse the available company information. If the privacy of the data is not defined at the time of development of the network in the organisation than this can be assessable to public and this can be misused by other competitors of the company.

7. Maintaining and monitoring information technology in business

The airlines companies like British airlines are continuously engaged in maintaining and monitoring information technology system of the organisation. The organisation involved in defining new innovation and requirement to strengthens the information technology. The performance of network is dependent on speed, reliability and security and affect of external environment (Yang, Hong and Modi, 2011). The companies are involved in increasing the speed of network to implement better communication system. The reliability of information technology should be maintained by the British airlines that the person can make use of the information at the time of need. The companies are involved in maintaining the information technology in system by developing various system  of backup, restoring, privacy software etc. in the company.  Big panda is the software which is developed to monitor the IT in business and helps in managing the unknown incidents. Antivirus is cloud based monitoring services which manage and monitor the information technology.

CONCLUSION

From this report it can be concluded that IT implementation in  business can be a good decision to bring innovation and reduce obsolescence in the system. The British airways use IT to large extent to gain more customer loyalty, manage business structure and competitive advantage in the market. The information technology is helpful in developing good communication system and helps in faster accessibility of different services and operations with more accuracy. With the help of implementation of automated system in company leads to higher growth of business organisation.. The IT helps in transferring data from one place to another faster than manual transfer of information. IT system of communication helps in  reducing the burden, better managed system in organisation.

You may also like to read: Critique in systems and technology

REFERENCES

• Andriole, S.J., 2010. Business impact of Web 2.0 technologies. Communications of the ACM. 53(12). pp.67-79.
• Chavis, L.W., Klapper, L.F. and Love, I., 2011. The impact of the business environment on young firm financing. The world bank economic review. 25(3). pp.486-507.
• Jasiulewicz-Kaczmarek, M. and Droyner, P., 2013. The role of maintenance in reducing the negative impact of a business on the environment. In Sustainability Appraisal: Quantitative Methods and Mathematical Techniques for Environmental Performance Evaluation (pp. 141-166). Springer Berlin Heidelberg.
• Klapper, L., Lewin, A. and Delgado, J.M.Q., 2011. The impact of the business environment on the business creation process. In Entrepreneurship and Economic Development (pp. 108-123). Palgrave Macmillan UK.
• Plattner, H., Meinel, C. and Leifer, L. eds., 2010. Design thinking: understand–improve–apply. Springer Science & Business Media.
• Wiengarten, F., and et.al., 2013. Investigating the impact of e-business applications on supply chain collaboration in the German automotive industry. International Journal of Operations & Production Management. 33(1). pp.25-48.
• Wild, J., Wild, K.L. and Han, J.C., 2014. International business. Pearson Education Limited.
• Williams, S. and Williams, N., 2010. The profit impact of business intelligence. Morgan Kaufmann.

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