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Technology and its Impact on Job Design

Technology and its Impact on Job Design

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According to several researchers and academicians, technology is an entity that serves two purposes, it complements people working jobs by improving their ability to perform certain tasks and sometimes even replaces people by automatically doing their jobs for the firm they may be a part of. For example, during a crisis situation, people tend to call out for help from their phones, whether it is reporting an incident, comment on the measures taken to deal with the incident, or explore information revolving around the crisis. The most obvious response is via social media. Hence this paper helps realize that technology is, for most situations, the first helpful tool. The data collected via this technology is logistically analyzed, and then sent to respective agencies of law and journalism so that people employed to make decisions regarding the situation can fulfill their jobs. In this way, the collection part is done by technology, the transmission bit is also done by technology, the categorization is also, to some extent done via technology and the only job that humans fulfill is that of analysis and decision making. Humanitarian responders are then assigned according to the seriousness of crisis at hand. This data collected from technological sources has insurmountable potential , especially within command and control, and can also be exploited because it has the capacity to increase the usefulness of the crisis response.

However, the collection of data has to be optimum, too much causes confusion in decision making, and too little is not enough to reach a decision, especially on social media. Therefore, it is important that we use the computational capacity of our machines in such a way that it results in making the analysts’ jobs more convenient and present them with the key features and relationships in the data that eases the path to a final decision.

(Gibson et al, 2016)

Technology can be a very helpful tool for the organizational design of an agency, and in the impact for job design, the role of organizational design has to be discussed. The managers have framed boundaries to be barriers that should be eradicated to aid in collaborative work. These boundaries have been examined in detail and experiments carried out to make sure that results prove a relation between social distance and interaction of the people, and also come across findings that show that changing the internal architecture of the firm can create more interaction opportunities. But are these opportunities availed by employees or not? This question has been answered in quite detail keeping the intellectual ability of individuals in mind, and its relevance to their sociable ability. A group’s ability to interact and work with each other was measured, and technology was made use of, for fulfilling this task. The people involved in the study were asked to wear a sensor, known as a sociometric badge which comprised of an infrared (IR) sensor that was for capturing the person they were facing, microphones that were for capturing if they were talking or listening, accelerometer that was used for capturing bodily posture, and another sensor making use of Bluetooth technology for capturing the location of the employee in the workplace. These sensors recorded data with 10 ms intervals. With all the data collected, it was analysed and noted that there was more virtual interaction than live. In another study which set the previous one as a control experiment, replication of the same data was done and some changes made, the results showed that some decreased virtual communication while others increased, and this was irrespective of the way the workplace was designed. The final conclusion was precise, that is, electronic interaction had substituted live interaction even when the firm underwent organizational design. As a result, productivity declined to some extent, because of lack of privacy of employees which brought a dip to their individual working performance and consequently affected their collective intelligence. (Turban et al, 2018)

Techno-stress refers to the feelings of stress and anxiety which are associated with technology and usage of technology at different levels. Literary pieces like (Florkowski, 2019) are beneficial because they present literature behind workplace production and job satisfaction because they are found to analyze this technostress and assess job satisfaction according to the models behind technostress, its link to HR department in companies and the rate at which human resource technologies are perceived qualitatively. Technostress also couples with organizational design factors and their combined effects are studied and research carried out to improve the quality of work of the HR environment. In this regard, more than 160 firms from the US and Canada were taken for survey and the perceptions of HR staff taken into consideration. The survey evaluated how techno-insecurity and techno-stress impact job satisfaction among the people working, and the people who are being worked for. There are several hypotheses mentioned in various literary pieces, most of which are studied and discussed in this paper and their findings analyzed. These include, HR technology usages instills increasing stress levels which differ with a department’s technology literacy. HR personnel not having IT knowledge face the grave issue of having to master IT interfaces and come up with ways to counter new risks that technology might be prone to with every passing year. This has a negative effect on HRT work stress impact. Moreover, HRT job-insecurity impact will affect work stress positively. Aggravating the problems that HR is exposed to as a result of technology also include the possibility that HR may be seen as being a department that dodges its responsibilities by offloading work.

The findings found in the paper consider HR-staff attitudes in technology rollouts. We can also formally assess how collaborative work in the HR department is affected by HR technologies. These also interfere with upholding the capital that HR generates. Decreased capital would result in concern regarding job satisfaction in other professionals. (Florkowski, 2019)

Technology transfer, organization structuring, and academic entrepreneurship are important keywords to have a separate discussion delegated to them entirely in the subject of technology’s impact on job design. Literary pieces discuss that technology transfer is the commercialization of research based university work, and is one of the most well researched subjects in nations worldwide because of the intensity of the benefits that come about from it. One of the main ones is economic development, which stems from innovation and products released by employing different innovative strategies which aid the progression of existing industries, and also induce the birth of new industries. As a result, professors, academicians, researchers, practitioners and authoritarians all are adamant on promoting technology transfer because of which it is a well-known process. But as many benefits as it instigates, it is an extremely complex procedure owing to its requirement for monetary resources in substantial amount. Moreover, risk assessment methods, when implemented on technology transfer ecosystems, mostly have highly consequential and probable risks in store. When coupled with organizational design, technology transfer can become a blessing because the components of organizational design are interdependent because of technology transfer and within this ecosystem, structures undergo comparisons and researches which prove that resources are effectively utilized. Despite the affluence of the TT literature, we come to the conclusion that it focuses only on the technology transfer components separately, and rarely considers the ecosystem as a whole. It is imperative to review the organizational design of the TT ecosystem and indicate parameters of knowledge gaps found in it. While literature identifies four primary components of the TT ecosystem(TTOs, Science parks, incubators, university venture funds), new methods for studying the facilitation of academic entrepreneurship, such as university-based entrepreneurial ecosystems and accelerators are also coming to the surface.(Wright et al, 2019)

One of the technologies impacting job design in organizatons is SaaS(software as a service). It was beneficial for the firms, but had adverse effects on the people working in the IT department such as stress and anxiety. SaaS brought about advantage of cost effectiveness and scalability and was a user friendly interface for users but it had long-term adverse consequences which included the IT staff burdened by tasks like getting accustomed to the infrastructure change when the firm transitions from manual interface to SaaS, being familiar with the risks that come with any technology, eradicating those risks etc. Software management both at the employees’ and the clients’ side is done by the IT staff, which adds up to their overwhelming state. To assess the these factors, appropriate research models were designed by triangulating perspectives of users and IT professionals. As the responsibilities of the cloud computing provider increase and create a higher degree of SaaS usage, the firm’s original IT proficiency and organizational IT structures prove to be inadequate. Uptil now, the stance of current literature regarding this was trivial but a study was conducted based on individual-level research making use of the socio-technical system theory. This theory is one of the most effective ones regarding exploration of IT implementations in organizations; more than 30 academic journals and literary articles were reviewed to broadly complete the study in three fields of research. The findings showed that if the socio-technical consequences were not aligned, IT personnel will experience fear of redundancy and their lack of productivity will decrease productivity in the whole organization according to thesis of STS theory. Job satisfaction of professionals all depends on how highly radical the changes due to SaaS will be; a higher level of SaaS usage causes operational as well as organizational problems. Relevance of (Jede etal, 2016) can be seen prominently to the topic in question because it includes how SaaS can increase productivity and provides details on how it can change the social structures within an organization.

Fuel technology is often assessed by the use of decentralized energy systems and the analysis of this is an important aspect to review when discussing technology’s impact on job design. Uptil now, the electricity requirements of the world were met by use of technology in a centralized way however with changing times, decentralized energy systems are employed for bringing about the distribution of energy. Layouts of technologies are laid forward and everything required to convert the distribution system from centralized to decentralized one are catered to by data collected. Conclusions based on findings were found to be more in favor of inclining to the decentralized method despite its lack of cost efficiency, because a decentralized method has better performance statistics.

It is worth noting that a decentralized energy system brings about benefits such as reduced carbon emissions, advancement in efficiency, cost effectiveness and preservation of credibility of the firm. The energy market and infrastructures are thus left with no choice but to develop these systems further. Optimization of this decentralized energy system will turn out to be a boon because for the energy efficiency and renewable penetration by the use of multi-energy systems. However, this system is quite challenging. These challenges such as the substantial amount of technology literacy required and resources needed to support full functionality of this technology , and fulfil the industry’s energy demands have prompted academicians and researchers to come up with computational algorithms and tools to deal with these issues. The agenda for the incorporation of decentralized energy systems and multi energy systems comprises of electrolyzers and fuel cells that are primary elements of electrochemical conversion technologies. This agenda is beneficial because it provides input on the decentralized framework of technology. (Gabrielli, 2018)

DEA ( Data Envelopment Analysis ) is a technique which has prior approaches and models associated with it, making it a highly centralized technique across the world of technology. It also has the efficiency principle that acts as a model however there are limitations to it, which make it challenging to perform analysis. The assortment of technology often proves to be a restraint, and to overcome it, researchers make use of meta data, meta technology ratio and relocate resources so as to avail full benefits. Research proves that several different kinds of DEA models have been put forth and their application tested in different fields out of which the most notable implementations are fixed cost allocation and resource allocation. The principles which are employed to successfully carry out these approaches are efficiency invariance principle, and efficiency maximized principle. But since technology has its own fair share of limitations, both these principles are often not taken into account in the desired way. Among DMUs, several technology gaps exist and this instills negativity in such a manner that needs to be countered with effective research and strategic skill. This can ultimately present more useful approaches. Analysis of these approaches is carried out and it is assumed that DMUs have similar production technology level which is more often than not, not the case. Calculations and summation formulae are taken into account to fulfill quantitative requirements of this research and find parameters that support findings and conclusions. Subjective as well as objective ways are employed to split the DMUs in organizations into groups called macro units like the social network platforms, rather than assess individually.

However, research proved that the efficiency of technology only progresses if centralization technique is applied on the DMUS in question and the shortcomings resulting due to allocation problems can be further investigated with research in the future.

(Ding et al, 2018)

The relationship between group technology and organizational structuring is one of the most important ones worth consideration when reviewing Technology’s Impact on job design. For companies to own a competitive edge in market, there is a need for flexibility which comes about greatly at the expense of opting for group technology strategies. Several companies in the past have benefitted from organizational structures by reduction in operating costs, machine set-up time and clarity in roles and responsibilities shared among individuals, however there were some limitations in the scope. When reviewing these aspects from literature, it is noted that there has been a poor link between the organizational design perspective and group technology, the only way group technology is studied is from an industrial perspective. Therefore to change the rules a little, applied systems theory was employed as a layout for studying organizational design with respect to group technology. This theory aimed at answering questions revolving around the position of group technology in the design of structures for production, the capabilities and issues regarding adoption of group technology, and the type of methods which are to be used to ensure long-term benefits. Consequently, research is conducted in such a way that three different cases are analyzed via the cluster analysis approach and the product flow approach to make groups of machines and workers in the manufacturing unit of companies. To further improve this research, another five cases are taken into consideration and findings amalgamated to reach a sound conclusion. The conclusion reflects how firms are considered about group technology when a poor performance is observed in their premises particularly regarding competitive pressure, response mechanisms, and accommodation of the constantly growing demand for better. This is because as a result of group technology, firms can separate the low priority tasks and delegate them to the employees lower in hierarchy. Therefore, it has a significant position among the range of answers for design of organizational structures. (Dekkers, 2018)

Academic literature is filled with avid authors making organizational design a focal viewpoint in their pieces. The use of strategic knowledge management is always coupled with the concepts of coding and personalization of the documented information. The real target was to enlighten the belief of strategic knowledge management in such a way that the executive committee of the respective organization which deals with IT related decisions, effectively understands that within an organization, there are limits to how knowledge is to be planned and propagated. If such an approach is adopted, outcomes will be robust and there will not be an unsteadiness situation in the organization where there is high innovation capacity and low work productivity instead equilibrium will be established. Corporations like Xerox suffered the consequences of not developing ways to make use of strategic knowledge management and this is what literature like (Willmot et al, 2017) aims to avoid. In this regard, analyzing is done of literary exemplars to answer why firms are required to emphasize on an equivalency strategy between coding and customization in the milieu of strategic knowledge management. This will bring about advancement in overall performance. Research findings show that there exist three insights and two pitfalls which any company wanting to adopt strategic knowledge management should know about. These insights are, firstly, a significant highlighting of codification and personalization might result in risks regarding the propagation of knowledge. Secondly, if an equilibrium is not established, there are little to no good outcomes on the organizational part because all efforts are considered scrappy. Thirdly, managerial employees should realize the need for equilibrium establishment. The pitfalls are, firstly, overriding of coding will create an over-disciplined atmosphere where there would be no room left for innovation and secondly, substantial reliance on personalization will leave no room for relevant routines and respect for ideas of employees. (Willmot et al, 2017)

Big data analytics deserves a separate seat on the table when reviewing technology’s impact on job design. Academic literature has, in detail, explained the capabilities and structural technicalities of big data and it is used to deal with large sets of data to improve performance. (Akhtar et al, 2019) has done commendable research on big data and has investigated areas of analytics that have not been explored before. Big data is a quite useful resource because it has benefitted organizations in terms of increasing their financial reporting greatly and has given employees necessary skills and enterprises the performance which is needed in the competitive global market which is becoming more and more technology oriented with every passing day. An outline of the research methodology when laid out in front of us helps us identify some limitations too and also clarifies the need for a high monetary input so that enterprises know beforehand what they are adopting. Not every organization has the human resources (both at an individual as well as collective level), industrial resources(machinery and well equipped knowledge of usage of this machinery) and technical resources(mathematics, logistics) which are a prerequisite for carrying out big data analytics. Nevertheless, research samples were taken from agri-food industries and based on the findings, hypotheses were proposed, which said that the performance of business and the results of the actions of big data development were both positively linked to the usage of the big data-savvy teams and the skills they possess. Organizations are explicitly mentioned that experienced improved service and product quality, punctual deliveries and addressed inaccuracy challenges with utmost expertise owing to big data simultaneously making sure that environmental concerns like recycling and water efficiency are not compromised. The conclusion of the research states how it plays a key role in measuring the gap earlier research of big data analytics. The research provided thorough insight to the evolution and implementation of big data analytics in business operations. (Akhtar et al, 2019)

A basic smart phone application can be helpful in studying the safety of insulin and ICT in a centralized clinical trial system. Literary examples have included hypotheses regarding the use of these and linked it to benefits brought about by use of conventional methods. The use of PHR is encouraged, which stands for Personal Health Record, an online application which helps patients in accessing, managing, and sharing their health data and helps doctors and personnel likewise to give improved decisions and perform remote check-ups of the patients enlisted for the clinical trial. These records facilitate clients by maximizing the insulin dose adjustments made to their routine by monitoring levels of glucose, insulin and appropriate data collection of the patient. Research conducted to determine the safety and efficiency of PHRs and its application brought forward facts such as a confirmation that the ICT-based clinical trial was a stable one. Recruitment strategies varied according to subjects and their diagnoses, and the trial went on for 24 weeks at the end of which patients were randomly placed in two groups, one the ICT based intervention group and the other was the conventional intervention group. In the latter, subjects were asked to save and send their glucose and insulin information in addition to their step count through PHR application, while in the former, subjects received valuable feedback regarding their condition. The main hypothesis was that the former group was benefitted more than the latter group. Results of the research revealed that a centralized method of sharing and using information allowed better decision making for patients and also proved the stability of collection via the PHR application to make remote patient assessment convenient. This research studied the use of a centralized data system with respect to healthcare and showed new perspectives for future research. (Kim et al, 2017)

Decentralized networks like the P2P network are overviewed in quite detail in many different academic literary pieces which demonstrate the benefits of P2P that include, but are not limited to, load balancing, fault tolerance, and rapid data exchange. Reference to the implementation of decentralized networks in the past is also made as an attempt to draw a comparison between then and now and how the layouts varied. P2P ensured safety and privacy of users information both in the public network aspect and the private network aspect by preserving privacy where required. The research study procedure employed in (Kryukov, 2018) provides apt detail on how a decentralized scheme of networks can facilitate the job performance of employees hence it is reviewed in the umbrella of topic “Technology and its Impact on Job Design”. Research is being conducted at a global level to carefully assess P2Ps in order to reap the advantages they offer, that is, being adaptive, operating perfectly even without special administration, and allowing flexibility to the participants of joining and leaving the network as they please. They are efficient highly because they result in good work performance as there is integrated usage of advanced computing resources via the Internet as well as proper organization of decentralized data storages. In this review, attention is given to the last part i.e creation and organization of data storages. Data storages are further classified according to what they are used for, firstly those utilized in storing, searching, and exchanging public data and secondly, those utilized in storing private data, these systems are particular about security and reliability. The concerns of clients and adequate responses of IT personnel are both effectively navigated to one another based on distribution control methods. P2P decentralized networks can be further classified into unstructured and structured networks, examples of which are Chord and Freenet. It is thus demonstrated that the field of information technology has a lot to offer to P2P networks and to deal with technical problems, more research in the future has to be conducted. (Kryukov, 2018)

Data warehouses and business intelligence are inter related terms and are reviewed in literature side by side. Data warehouses are effective for storage purposes and business intelligence is favorable in the discovery of knowledge based on three different areas namely, diversification in data services, standardization in interfaces and monitoring of services. Research comprises of sample models and reference systems whose layout’s foundation is the intelligence business model framework itself. Whereas, the models are useful in specifying job functions and characteristics.

Distributed reservation is a key concept of the organizational design within a firm. Trends like data warehousing act as an inspiring factor in considering rather subtle computing techniques to enhance business strategies. These techniques come coupled with certain rules, such as assurance of the research having a sound and persuasive conclusion, minimum usage of multimedia such as images and visual audio and maximization of usage of textual and numerical data. In accordance with this rule, the paper was greatly comprised of tabular representations of statistical details of the research as well as diagrams like charts and graphs to show the trends. Mathematical formulae give quantitative results of the research and thus support the effectiveness of the procedure put forward. When these paradigms are presented in research based studies, issues in marketing models are solved to some extent and the impact of data warehousing and the transition resulting in job design from technicalities are understood.

Consequently, overall performance gets a boost and opens opportunities for future research that will follow the implementation of the models proposed and integrate them with usage of multimedia as a transfer medium. (Liao et al, 2019)

Shifting to the cyber era and the transition phase from conventional to technology based is one of the most challenging and demanding areas of job design because technology has been, and is continuing to advance every single day and while these may cause the parties involved to evolve greatly, they also give birth to more complex issues. Many changes of work design are complicated and still unexplored. However, to have a full understanding of these shortcomings, more than 40 people having extreme expertise in the digital field are questioned and their opinions surveyed. Employees of firms had a long lasting connection with their respective workplace and their roles within the firm were often exchanged by more competitive ones because of artificial intelligence and teleworking catering to the less important jobs. Technology causes technostress and poses as a threat to the leadership skills of people in managerial positions, in addition to bringing substantial changes in the person’s professional as well as personal life. Four key themes were revealed which focused on work design and leadership with the first theme reflecting transition in the work life and health domain with everincreasing demands of workers and leaders. The second theme implied changes coming about due to the use of information technology that affected working media and collaborative processes. The third theme was inclined towards bettering the performance and discovering potential talent present in organizations and the fourth theme comprised of organizational hierarchies and the exchange of roles and responsibilities which happened as a result. Therefore, digitization in entirety can be very happening for an organization and academic literature acts as an assembling ground for the fragmented pieces of knowledge regarding the conversion of companies to technical ones. Thus, future research can benefit from these results and create awareness among owners of enterprises to fully equip themselves with the needed skills and resources to counter challenges of technology. (Schwarzmüller, 2018)

When technology is employed in workplaces, job design is greatly impacted and entire human roles within the workplace change. A model is presented to study such changes in an enterprise. Job characteristics are quite complicated because certain jobs are an amalgamation of physical and technical cognitive skills. Cyber-physical systems(CPS) is the ultimate goal of almost all organizations in the business sector. Details of work design and job performance differ according to the sector where the personnel is present, that is, whether they are a part of production or managerial decision making. Sensors and similar machinery have replaced employees because of the automation process. And the employees’ jobs have escalated to a high degree of complexity whereby they are supposed to make decisions, innovate and manage coordinated of these automated systems. It is true that literature is quite vague regarding how the transition towards CPS impacts work design. Therefore, in our review, we aim to develop a layout in which qualitative and quantitative assessment will be carried out in great detail and will be related to the capabilities of CPS on demand and supply chain of the enterprise in addition to human information processing. Technology’s main role is to improve human productivity but when this comes at the expense of their job autonomy, it brings about adverse effects. The processes and outcomes of the structural hierarchy of work is the determining factor in individual as well as organizational success. Therefore to have an understanding of these integrated processes and systems, knowledge regarding IT, mechanics and electronics is mandatory to avoid malfunctioning systems. This analysis is useful however the limitations provide directions to future researchers.

(Waschull et al, 2020)

References :

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Andrews, S., Gibson, H., Domdouzis, K., & Akhgar, B. (2016). Creating corroborated crisis reports from social media data through formal concept analysis. Journal of Intelligent Information Systems, 47(2), 287-312. doi:http://dx.doi.org.ezproxy.liberty.edu/10.1007/s10844-016-0404-9
Florkowski, G. W. (2019). HR technologies and HR-staff technostress: An unavoidable or combatable effect? Employee Relations: The International Journal, 41(5), 1120-1144. doi:10.1108/ER-08-2018-0214
Good, M., Knockaert, M., Soppe, B., & Wright, M. (2019). The technology transfer ecosystem in academia. an organizational design perspective. Technovation, 82-83, 35-50. doi:10.1016/j.technovation.2018.06.009
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Akhtar, P., Frynas, J.G., Mellahi, K. & Ullah, S. (2019), Big Data‐Savvy Teams’ Skills, Big Data‐Driven Actions and Business Performance. Brit J Manage, 30: 252-271. doi:1111/1467-8551.12333
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Ding, T., Chen, Y., Wu, H., and Wei, Y. (2018). Centralized fixed cost and resource allocation considering technology heterogeneity: A DEA approach. Annals of Operations Research, 268(1), 497-511. doi:10.1007/s10479-017-2414-6
Gabrielli, P., Gazzani, M., & Mazzotti, M. (2018). Electrochemical conversion technologies for optimal design of decentralized multi-energy systems: Modeling framework and technology assessment. Applied Energy, 221, 557-575. doi:10.1016/j.apenergy.2018.03.149
Kim, G., Bae, J. C., Yi, B. K., Hur, K. Y., Chang, D. K., Lee, M.-K., …Jin, S.-M. (2017). An information and communication technology-based centralized clinical trial to determine the efficacy and safety of insulin dose adjustment education based on a smartphone personal health record application: a randomized controlled trial. BMC Medical Informatics and Decision Making, 17(1).
Krishna, V., Hugh, W. (2017). Strategic knowledge management—Insights and pitfalls. International Journal of Information Management, 37(4), 313-316. doi:10.1016/j.ijinfomgt.2017.02.002
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Qualitative Research Proposal

Netflix, Swot Analysis

Introduction

Mobile devices are rapidly proliferating as more than 2 billion smartphones were reportedly used back in 2014, and it is anticipated that more will be deployed for use. These penetration rates introduce the use of different applications within mobile devices (Kortum, 2015). Until 2007, smartphones were not mass-marketed and were not commercially available. However, after the launch of the first iPhone back in 2007, and android launch in 2009, the smartphones became commercially available, before 2007, a large number of selectable consumer applications within mobile phones were not available (Kortum, 2015). Users can now easily customize the applications within their mobile platforms which suit their needs. The amount of downloadable user applications for the mobile devices is large and continues to grow, with more than 1.2 million applications available in i0s platforms and more than 1.3 million available via GooglePlay in Android OS (Kortum, 2015).

Pine (1998) defines user experience as a unique set of offerings that emerge s when an organization intentionally uses its product or service offerings to engage the users in such a way that it creates customer delight. User experience encompasses the whole aspect of a service acceptance by a user. It touches all the elements inclusive; hedonic and pragmatic of a product. The instrumental or pragmatic elements of a service or product referred to the beneficial aspects such as the ease of use of an application or usefulness of the service. The non-instrumental or hedonic elements refer to the experiential and emotional aspects of service use. Learnability, security, user satisfaction and user interface are some of the factors that contribute towards user experience for a mobile application.

Mobile applications like Netflix use online personalization to enhance user experience. Online personalization via adaptive user interface means that the user interface automatically adjusts context, demands, detected changes, adjusts content, visual presentation or layout (Yang, 2016). User experience design is immensely important in developing a good mobile application since it has a huge impact on the success or failure of the application (Yazid, 2017).

Purpose of the study

The purpose of this research is to enable practitioners to use the information concluded within the research to make informed decisions regarding the mobile application and benchmark their progress for Netflix against other applications for mobile platforms.

Research Problem

Netflix application allows individuals to obtain content anytime, anywhere and through a mobile platform. Because of this specialty, individuals show immense interest in the application all over the world (Cebeci, 2019). This is why it is imperative to investigate what makes a good user experience for Netflix application and how the application is perceived by the users.

Research Objective

Previous researchers have focused mainly on Netflix as an emerging media platform or on its content. It has been observed that there is little research regarding the factors that affect the user experience for Netflix mobile application. Since it is still a gap in the literature, the research aims to investigate the determinants of user experience for Netflix application. The current research will focus on the studies dedicated to the user experience of using Netflix.

Research Questions

Is the Netflix application easy to navigate for the users?

Is the Netflix application interactive?
Is the user interface (UI) plain and easy to follow?
What elements of user experience i.e. ease of use, learnability, security, user satisfaction, user interface design etc. does the application follow?
How satisfied are the users with the user experience?
How likely are the users to reuse the Netflix application?
Can the Netflix application serve the users to achieve the end goal, i.e. stream videos, watch TV shows, movies, etc.?
Does the Netflix application meet its functionality?

Interview Questions

In your opinion, is it easy to use Netflix mobile application? Explain your answer.
Is the setting of your device sufficient for the use of the application?
Do you think that all the functionalities of the Netflix application are designed in such a way that they aid the user in performing the task?
Netflix interface design has elements that invite the attention of the users and provide the ease of use such as auto-play which induces binge-watching in users. What are the features that make the user interface easy for you?
Do you think that the recommendation algorithm in Netflix application reduces the navigation time and enhances the user experience?
Do you think that the Netflix interface uses a narrative to make the user believes to be in control and has the agency of controlling his or her Netflix experience through their choices?

Literature Review

Research related to user experience while using mobile applications has gained momentum as well as considerable interest from both practitioners as well as scholars. The literature within the field of user experience happens to include all factors which affect the interaction of a user as well as their experience of the product or system (Yazid, 2017). Yazid (2017) uses User Experience Questionnaire adapted from Chen’s User Experience (UX) assessment model for mobile applications which offers insight into the factors that affect the user experience. Ease of use, learnability, user Interface, security, user satisfaction etc. are some of the elements that contribute towards a fulfilled user experience. Ease of use factor covers three elements of user experience: data accessibility, usability and navigation. Yazid (2017) defines usability by how functional an application is for the end-user. This means that all the functionalities of an application must be designed in such a way that they aid the user in performing the task most efficiently compared to what they have been using or are used to before.

According to Yazid (2017) , it is imperative that the navigation pattern within an app is simple to aid the users that are new in figuring out how to move across the mobile application with ease in the fewer number of clicks. Data accessibility aspect for an application means that the data must be available readily at any location for consumption by the user to make the application reliable. Validation aspect contributes towards the ease of use elements in the context of making the users aware of the mistake that they might have made. This enables the users to check the error before they click the submit button.

Learnability happens to be the degree of ease as well as the speed with which a user gets familiar with using a specific application. High learnability refers to how users intuitively learn how an application in a mobile phone is used without checking user guide or FAQs. The user interface, according to Yazid (2017), is a touch-sensitive display present on a cellular device and is highly important for engaging the customer’s attention as it is the first thing the user observes. Selection of size, colours and icon give a meaningful impact on user perception. Another factor that impacts user experience, according to Yazid (2017), is behavioural intent which is a subjective norm.

An application with a good user experience design deploys the user with the right information and fulfil their anticipation so that the user can bookmark the relevant material and use the application again in future. Reduction of user errors influences the user’s intention to reuse the application (Yazid, 2017). Thus having suggestion tools such as listing recommendations based on previous click or views can be used as a method to improve user experience.

Yang (2016) states that machine learning and the adaptive user interface has become an effective tool for enhancing mobile user experience (UX). Popular mobile applications such as Netflix, Facebook, Google Search, Instagram, Kindle, Mail, Pandora, YouTube, Safari, Twitter etc. regularly mine user behaviour and context data to enhance personalized recommendations, predict log behaviours like sleeping or walking and filter out spam. Moreover, users now expect mobile applications to have smart systems that have intelligent interfaces (Yang, 2016). Mobile interface (UI) benefits from adaptations which specifically reduce navigation because mobile contexts and tasks vary greatly small mobile screens limit interaction as well as content space. For example, the Starbucks application learns how a user pays through their phone learn about the user payment method when the application is launched inside the store.

Furthermore, Yang (2016) states that mobile applications like Netflix use online personalization to enhance user experience. Online personalization via adaptive user interface means that the UI automatically adjusts context, demands, detected changes, adjusts content, visual presentation or layout. Movie recommendations in Netflix mobile application reduce the effort needed by the user to find the right movie or TV show. The Netflix application employs adaptive UI that uses the user profile and the set of user models to personalize the user experience as well as to address the needs of heterogeneous users. This is because online personalization benefits the service providers like Netflix and users. The term “algorithm identity” is used by (Markham, 2018) to denote how user interface adjusts content for the users and is a crucial element of the user experience catered by Netflix.

Algorithm identity is the “self” of the user that is constantly reproduced based on user interaction with the platform through clicks. This claim is authorized by a growing body of research that acknowledges the role of algorithms for generating different versions of a user’s identity online. Cheney-Lippold (2011), for example, a claim that application algorithms categorize the identity of the individuals which are inferred based on their application usage. Similarly, Markham (2018) argues that algorithms personalize and construct relational meaning and construct identity in contemporary use of the application.

Markham (2018) also focuses on what does the algorithm do and how it shapes the behaviour as well as the experience of the users. When it comes to the interface in Netflix application, over time and with routine use, it can be seen that the algorithmic identity develops. At the start, there is no typical profile page which users can refer to; instead, users can set up a small profile to inform the application regarding “who’s watching?” by choosing several avatars (Markham, 2018). The application also provides choices such as ‘maturity level’ and language topic from which caters to the need to the user.

Netflix via its mobile application successfully uses personalization in such a way that it anticipates the users’ behavioural intent and reduces the navigation time also known as the number of screens and reduces selection efforts which are the number of inputs or taps (Yang, 2016). The adaptive user interface is also beneficial for the service provider such as Netflix as it provides enhanced customer satisfaction and loyalty. The research and service design community recognize personalization as an essential element in maintaining and building long-term customer relationships while enhancing customer lifetime value. Yang (2016) states that adaptive user interfaces might confuse users who have the perception that the changes within the system’s behaviour happen to be negatively inconsistent instead of taking it as personalized user experience. This is because adaptive user interfaces might decrease the sense of control for users.

Cebeci (2019) uses the Technology Acceptance Model (TAM) to examine the factors that influence the intention of users to use Netflix and the user’s experience of the application. The Technology Acceptance Model (TAM) has been derived by Theory of Reasoned Action, which has four main constructs: attitude, intention to use, perceived ease of use and perceived usefulness. Cebeci (2019) states that perceived ease of use is the degree to which a user believes that using an application would be free of any effort and the perceived usefulness is the degree to which a user believes that an application would be beneficial to them. Users are having a high level of knowledge regarding application usage regard it as easy to use. Similarly, if a user has knowledge regarding Netflix application, he or she will believe it to be easy which means that Netflix is positively related to user’s perceived ease of use (Cebeci, 2019).

Similarly, Kortum (2015) uses the Technology Acceptance Model as a theoretical framework to denote the rapid adoption of mobile applications as the model suggests that technology and applications are widely adopted because of perceived usefulness. This perceived usefulness is related to the ease of use of the application such as the elements of availability, portability, low cost, ubiquity etc. contribute towards user experience (Kortum, 2015).

Markham (2018) uses a series of user journeys through the interface and critically analyzes each moment of the selected user’s Netflix experience (Markham, 2018). Over the course of the analysis, Markham (2018) ended up foregrounding different aspects of the influential, relational and infrastructural elements of the socio-technical experience of using Netflix. The researcher focused on three complexities, first being the user experience of the Netflix interface in which a complete narrative is implanted in such a way that the user believes to be in control and has the agency of controlling his or her Netflix experience through their choices. This happens to be apparent in the image of the company itself and is reinforced through the Netflix application.

Secondly, the Netflix application functions both indirectly as well as directly to condition the attitude as well as behaviours of the users. Directly, Netflix pushes to promote the original content as well as region-specific content. Indirectly, the Netflix interface design has elements that invite the attention of the users and provide the ease of use such as auto-play which induces binge-watching in users and promotes perceived ease of use.

The perceived ease of use is the degree to which a user believes that using an application would be free of any effort (Markham, 2018). Thirdly the recommendation algorithm creates an unsteady state of being in the users due to its incomprehensibility because of which users are never quite sure what the recommendation will be which enhances user attentiveness while using the application and engages them. Varela (2019) uses the user-focused approach for her study of the algorithmic culture that influences user experience. The researcher used Netflix’s recommendation algorithm to study the questions of black boxing, biases in the algorithm in terms of visibility as well as socio-technological elements of algorithms. The researcher conducted an in-depth interview methodology with users who are loyal users of Netflix in Singapore. Varela (2019) concludes that users also happen to be co-producers of the content as they contribute towards their experience as well through their usage of the application and consequently to the success of the application.

Pine (1998) defines user experience as a unique set of offerings that emerge s when an organization intentionally uses its product or service offerings to engage the users in such a way that it creates customer delight (Pine, 1998). Mobile user experience has been expanded upon using three dimensions such as device-related issues, application-related issues and communication-related issues. The device-related issues happen to be associated with hardware features that contribute towards ease of use of the accessories or the device such as a mobile phone. Communication-related issues tend to be focused on interpersonal communication, while application-related issues are linked towards the interaction of the user with the specific mobile application. The application related issues have been identified as the crucial layer which contributes towards user experience by Subramanya and Byung. Their research suggests that the application-related issues compensate for user constraints and underlying device constrains (Subramanya, 2009).

Research Methodology

The research methodology that is going to be used for this research is qualitative data collection and analysis (Hammarberg, 2016). Qualitative research is the most suitable method since the nature of this particular study is investigative. The research focuses on user experience while using Netflix application, and according to Hammarberg (2016), qualitative methods are used to explain research queries regarding perspective, experience and meaning from the standpoint of the participants. The research will employ qualitative research technique of small group discussions for investigating the concepts, beliefs as well as attitudes of normative behaviour. The quantitative technique has not been used because closed-ended questions that are asked for data collection do not provide good insight into the mind of the respondent.

Data Collection Technique

Focus group technique is going to be used as the data collection technique for this research because this technique provides insight into what individuals’ experience and feel. Focus groups are good for gaining a better understanding of the phenomenon being studied within the research. Data Analysis Technique used will be interviewed in which group interviews will be used that will allow the researcher the ability to capture in-depth information in a cost-effective way in comparison to individual interviews. The main benefit of this technique is that group interaction during the interviews will allow the researcher to grasp different views and will encourage the participants to make connections to various concepts of user experience while using Netflix.

Data Analysis

For each question asked during the focus group session, the researcher will summarize the main themes or the ideas that were discussed. Observations such as tone and opinion difference will also be taken into account. This procedure will facilitate a deeper understanding of the topic of the study. The discussion points that will not be coherent with the questions will also be noted and studied for a greater understanding of the topic. Data reduction will be done by summarizing the one to two-hour discussion with the focus group into manageable concepts for the development of the report. Concept map method will be used to aid in concept building during analysis (Barry Nagle, 2013).

References

Barry Nagle, N. W. (2013). Methodology brief: Introduction to focus groups. Center for Assessment, Planning and Accountability, 3.

Breen, R. L. (2006). A Practical Guide to Focus-Group Research. Journal of Geography in Higher Education, 463–475.

Bucher, T. &. (2018). The Affordances of Social Media Platforms. In J. Burgess, The SAGE Handbook of Social Media. Sage Publications.

Cebeci, U. (2019). Understanding the Intention to Use Netflix: An Extended TechnologyUfuk Cebeci. International Review of Management and Marketing, 152-157.

Cheney-Lippold. (2011). New Algorithmic Identity: Soft Biopolitics and the Modulation of Control Theory . Culture & Society, 164-181.

Hammarberg, K. (2016). Qualitative research methods: when to use them and how to judge them. Human Reproduction, 498–501.

Kortum, P. (2015). Measuring the Usability of Mobile Applications for Phones and Tablets. International Journal of Human-Computer Interaction, 518–529.

Markham, A. (2018). Netflix, imagined affordances, and the illusion of control. In T. Plothe, Netflix at the Nexus. Peter Lang.

Pine, J. B. (1998). Welcome to the Experience Economy. Harvard Business Review,, 20.

Subramanya, S. R. (2009). Enhancing the User Experience in Mobile Phones. IEEE 5th International Conference on Advanced Video and Sinal Based Surveillance, 200.

Varela, D. K. (2019). The Netflix Experience: A User-Focused Approach to the Netflix Recommendation Algorithm. In Netflix at the Nexus: Content, Practice, and Production in the Age of Streaming Television (pp. 197-211). Lang Publishing Group .

Yang, Q. (2016). Planning Adaptive Mobile Experiences When Wireframing. Proceedings of the 2016 ACM Conference on Designing Interactive Systems, 565-570.

Yazid, M. A. (2017). User Experience Design (UXD) of Mobile Application: An Implementation of a. Journal of Telecommunication, Electronic and Computer Engineering, 197-290.

Social Networks and Digital Security

Digital Security, Research, Social Networks

Introduction

The twenty-first century is equipped with the most modern social communication tools. Social media applications are the most important and easy way to communicate with people in distant places because of a social image (Al Mushayt, 2013). These applications are helpful to make animation, a logo and a profile image for a person, who is known in different ways to others. Networking and social relations are related to build a social circle, enhance communication and make friends more and more. This networking is translated from a social profile, which is further connected to other profiles (McKallagat, Souza, Whitten-Woodring& Wimpy, 2017). Worldly presence of a person through his social image and profile is connected with some information, i.e. websites, images or videos. Social networking is becoming common, and people consider it entertaining, without knowing the key turmoil associated with it.

Thesis

Increased cyber-attacks over the past decade have put the digital world at stake while increased the influence achievable in a diverse manner of institutions (i.e. elections, etc.).

This paper aims to focus on the issues of social sites networking, and cybersecurity as it is related to the vulnerability of personality. The paper will highlight the initiatives of some governments that are used to curb it.

Taxonomy of Social Networking

A social structure made up of different associations is a social network that is connected through interdependent segments. Some common examples of common interdependency are normal interest, fellowship, connections, esteem and fund transfer. The social network allows individuals ease to connect with others and empower them to frame their online information as well as trade. Some common social networking sites are Facebook, Twitter, LinkedIn, Instagram, Habbo, Myspace, Flicker, and YouTube, and so on. Social networks present a social picture of the individual, provide ease of connectedness and disregard the physical world around (Oluwadamilola, 2018). It interprets social information through social profiling and transforms this structure into available online information that can be accessed by a second or third party.

On social networking sites, information is assorted in an easygoing format. Facebook is the social networking website that has millions of followers and involved people of all nationalities. The research evidence suggested that in 2012, there were 1 billion social system clients. For some, social networking sites are the easiest platform to acquire information, yet it contains risky information. Social networking sites allow multiple users at one time and one place to use this information. Primarily, social networking was used as the sharing of information and allowing people to communicate easily. Later, it turned into a source of entertainment that involved every person from every age and walk of life. People do not hesitate to share information on social media, yet they are less aware of the dangers associated with it.

The taxonomy of social networking sites is basically hierarchical classifications that are linked to the top-down approach in which data is divided. This classification of data is repeated until the whole data is classified, and a distinctive point is reached. This process can distinguish two stakeholders, i.e. Online Social Network (OSN) users and Service Providers (Oluwadamilola, 2018). OSN is a fundamental process that is based on abstract differential on the basis of the homogenous network. Abstraction can be unsuitable and used for different purposes. Use of OSN through user profile is a common way to collect data. This classifies the behaviour and attitude of users, to fulfil the purpose for that data is acquired. The behavioural information is attributed to some definitions and concepts. This makes it easier to precisely classify data and verify information with other data types (McKallagat, Souza, Whitten-Woodring& Wimpy, 2017).

The service provider data types can easily access personal data by different activities of users. This process classifies social networking data into main categories, i.e. login data, application data, connection data and mandatory data. OSN service usage needs authentication of users, so that identity theft is prevented (Al Mushayt, 2013). Login data acquired this kind of claimed identity so user name, password or mailing address is identified that can help compilation of informative profile. Application data is originated from the use of the third party; it plays within OSN boundary and allows for different API address. Privacy implications and In-App purchase data provide some example of this kind. Connection data is not specific to OSN, but these are related to internet connectivity and layers of protocols. This data is about browser-related information and location. It entails privacy implications related to OSN providers, and most of the cookies based techniques acquires user’s data (Petray& Collin, 2017).

Mandatory data is just like the physical world, where a minimal set of data can start a social interaction. This class is all about data for OSN service that serves different functions and functionalities, for example, in the age verification process, profile creation process and registration the data is acquired. OSN service providers are linked to this data, and in case of availability of privacy settings, OSN visibility can be restricted (Ghari, 2012). This kind of data further consists of optionally provided data with specific semantics. The extended profile data, profile centricity, predefined attributes and values are considered in this kind. For some users, networking data through social interaction play a strong role in information theft. The OSN users are encouraged to show their relations with others, and all connections and their collection provide a significant amount of data to the third party that can be misused (Koukaras, Tjortjis&Rousidis, 2019). These social graphs provide strengths to the available information, and some examples are friends list, followers, notions of a friend or a person you are following.

Cybersecurity and Cyberthreats

Cybercrime is a computer crime that undertakes computers as the main medium to harm individuals. In 2017, a survey reported that about 6 million offences of cybercrimes occurred that means one out of every ten people become the victim of cyberattack (Ashworth & Free, 2006). Due to improved technology and advanced applications, people freely use their own information and data related to banks in computers. Fraud is a common form of crime in European countries and where advanced technology is used. Some main kinds of cybercrimes are:

Phishing: It is a crime in which attackers trick people handling their credit or debit card so acquire access. In some ways, email is sent containing malware of malicious file that looks similar to functional. These kinds of unwanted acts harm computer and attacker acquire what he wants (Smeets, 2020).

Cyber Harassment: another system of cybercrime is harassment, it is an online form of bullying, abusing, stalking, and adult activities. Many forms of cybercrimes are nominated under IT act, such as unauthorized access to a PC, breach of privacy, forgery, web hacking, email spoofing, email abuse, bogus website, misuse of social media and so on (Supriya, 2012).

Identity theft: this system works through a fraud forum in which credits cards and bought and sold, to access information related to address or phone numbers (Petray& Collin, 2017).

Hacking: The cyberattacks, when working on a large scale of business, they are called hacking. In many examples, Russia cyber attackers hacked banks’ websites and acquired all information related to credit and debit card. It is estimated that 90% of all the records of data are used in hacking when it is executed internally in an organization.

Cyberethics: Tackling of issues related to cyber technology is legitimate and virtuous form is cyber ethics. The cyber technology is surrounded by legal, moral and ethical social systems. Networking policies and principles are enacted by a government body to take actions against computer-related fraudulent activities (Al Mushayt, 2013).

Under social media policy, the employees of any company are responsible for that confidential information. The employees and staff who is not authorized are not provided access to information. To acquire complete information about authority principles and rules, employees are directed to the relevant person.

In social networking sites, the threat of cyberattacks is common. These websites represent potentials victims that are followed by attackers. The common kind of fraud or attack is phishing, spamming and scam. The phishers use social networking sites and send malicious emails and messages to victims (if friends). Fraudsters and cyber criminals frequently use social media networks to target their victims in various respects (Supriya, 2012). These attacks are followed by social engineering, and sexual predators create certain online forums and communities to spread propaganda, thoughts and conduct recruitment. Some common kind of cyber threats is traditional networking and privacy networking threats.

The traditional networking threats are related to the security of computer and security of people. The computer is used by people, so they store some valuable information in it while social networking sites have millions of followers and a huge amount of data in it. The natural target of malicious attackers and spammers are these computers. Mostly, online networks are vulnerable to identity theft, stalking, abuse and defamation (Ashworth & Free, 2006). Many cyber cases were reported in the US in 2017. In some cases, hackers steal all the information from a computer or create false brand pages, mimic personalities and profiles.

The privacy-related threats are common with the user profiles that are not published ever. There is a lot of information present on the home page, and sensitive data is in the form of home address, birth dates or mobile numbers (Smeets, 2020). Hackers can use this personal information through social engineering techniques and get benefits such as money theft etc.

Cybersecurity in digital media is essential. This security can be in the form of protection of data and encryption of communication (Koukaras, Tjortjis&Rousidis, 2019). Most of the problems exist due to the unethical behaviour of people. Social media users are unaware of privacy rules and settings that any kind of social activity can harm them. Social media networking is never possible without risk. Most of the times, people are advised to ensure their privacy settings and that not reveal any personal credentials (Saeednia, 2000). Most often, all the users’ information is available with government bodies, and they may use it for making rules and other security measures (Ghari, 2012). A centralized architecture related to social media networking is the main risk. Social media servers are full of personal information that can be provided to a third party free of cost. Misuse of this information is the big issues. Most people are not well aware of their privacy settings, as well as any potential risks associated with their sensitive information, so they carelessly upload it (Richthammer, Netter, Riesner, Sänger&Pernul, 2014).

According to research, users get together at a place and do share their personal things with others because they believe in openness. The openness, sharing and connecting with others provides a room for criminals to use these sites (Petray& Collin, 2017). On social networking sites, some attackers advertise and sell fake products with huge discounts, so when the user clicks on it, all of the information goes to hackers. In the case of content-based image retrieval, the hacker knows the location of users by matching the image patterns with the user’s profile (Ashworth & Free, 2006).

Clickjacking is a form of attack that attracts users when hackers post some videos to the victim, and when it clicks on them, a malicious action occurs (Riehle& May 2018). The watering hole in 2013 was a new approach to make insecure to users who are using social networking sites. In many organizations, employees vent about companies and reveal confidential information through social media that allow hackers to get the benefit of this information. Through social media websites, big intact of malware is possible, through emails communication messages and other download links. Catfishing is carried out through online dating and social media application which are very convenient and engage the user to interact and find an online partner (Al Mushayt, 2013). The fake identity creates a threat to other users and may run it in a catfish by acquiring personal and financial information.

Use of social media applications and multiple websites serving the purpose of social interaction should be limited in order to safeguard personal and financial information. It is likely to maintain a uniform online presence that can leave unattended accounts and help to prevent their own information. Social media accounts are often connected through insecure devices that allow others to steal personal information (Koukaras, Tjortjis&Rousidis, 2019). Organizations need and implement immense resources to save their confidential data. Mode of communications and interactions with individuals at the business level is intertwined, yet multiple software and work management applications are used to make sure the safety of data. IT networks are protected from social media websites because these are considered the most insecure applications that can engage business into fraud and pirated services (Ghari, 2012).

Privacy and Digital World

Digital channels transmit and tackle a huge amount of data. Organizations need to ensure the safety and privacy of this big data to provide accurate insights about the digital domains. The complexity of social media websites is clear, so organizations need to struggle with the complexity before the deployment of any digital initiatives for users (Hadlington& Murphy, 2018). There are some risks associated with this digital world, where privacy is no longer private. The appropriate digital strategy should be required to support this SNS architecture because existing applications are engaging billions of users, and they are revealing their identities. Government agencies are increasingly taking it into account that the role of social media websites is significant to share the information and exchange the ideas, yet no cybercrimes should be associated with these platforms (Grant & Chertoff, 2017).

Some anti-threat strategies are common with social networks that have been found as involved in fraudulent activities. For example, most of the users are less concerned about their disclosure of personal information because they do not know the risk associated with it. Users aware of threats have to select privacy settings carefully. Social networking sites need specific legislation under IT to act to meet day to day challenges (Richthammer, Netter, Riesner, Sänger&Pernul, 2014). With sophisticated and modern technologies, tools and authentication of users should be ensured as a coherent mechanism to handle potential security issues. Government is required to meet a balanced yet suitable network of security that underpins the culture of data protection in a technically advanced society. Individual industries can be regularized with such acts, and government agencies have to provide new guidelines to promote privacy-friendly models o increase business interest and their privacy. The scope of the statutory province for government is related to provide balance opportunities to make learning easy. For every kind of industry, privacy guidelines by the government are required to be implemented in an effective way that fosters trust of customers regarding networking and fulfils their rights.

The authentication based cyber-attacks are increased, so governments all over the world are taking corrective measures to curb the issue. The multi-factor authentication is a solution that prevents any attacks related to passwords for political access to data. In the US, UK, Taiwan, Australia, Hong Kong and Estonia, from the past five years, governments are focusing on this issue (Urani, 2011). The challenges are many security vulnerabilities that many networking susceptible to fishing. Many solutions are easy, but some are unnecessarily difficult. The policymakers are working to address such authentication issues and adopting a solution to move away from such issues, such as secret shared models.

The government should plan an explicit address to authenticate the approaches regarding cyber risk management. These initiatives will help if implemented right away. The shared secrets are recognized on the basis of security limitations. One time authentication passwords are helpful to secure secrets and allow the public to never reveal quality operations, and other users devices are FIDO authentication standards introduced by the government. The support solutions for mobile are also implemented by the government in multiple counties to protect transactions (Riehle& May 2018). UK government is increasingly visualizing such threats of cyber-attack that can impact the public, private programs. The impact of these cyber state programs is difficult and made to improve the capacities of the institute.

OCGs by the government are responsible bodies in deploying the computer-based networks for individuals and communities (Richthammer, Netter, Riesner, Sänger&Pernul, 2014). Hacktivist group by the government is identified as a decentralized issue that can select target upon the response, and most of these activities will be lasting damage to the victims. For less-skilled individuals, script kiddies are introduced that restricts access to tools. Under the national security strategy of cyberattack, the prim devices are provided to get protection, since the internet is integrated, this solution can exploit the opportunities (Hadlington& Murphy, 2018). The implementation of connectivity is also related to the controlled processes regarding data mining, surfing, and gaining access. The vulnerable cyber harms result due to less protection and threats to the interconnected system only work till cybersecurity system is not used. The national cybersecurity centre in the UK was started in 2016 (Grant & Chertoff, 2017). It provided a basic opportunity to build an effective, secure system for the industry and secure the public from malicious activities.

Conclusion

In Europe, the US, UK, Australia and many other regions, data protection and safety of social media applications are related to cybersecurity. The data privacy is a key solution for cyberattacks and allows individuals to carefully use their social media platforms. Data privacy and the digital world need some legal frameworks to develop a pragmatic solution. Breaches of privacy, identity theft and personal data are mainly being used for corrupt purposes. The identities are abused, customers are tracked, and elections are expected. Online businesses and financial transactions are no longer safe, so the digital age needs some key corrective measures to protect individuals. UN enforced privacy invasion and accountability measures to secure data breach and penalize companies regarding illegal data acquisition. The privacy threats and cybersecurity in terms of social media websites are related to worldly criminal activities that need individuals to act securely and safeguard their information from any breaches.

References

Al Mushayt, O. (2013). Threats and Anti-threats Strategies for Social Networking Websites. International Journal Of Computer Networks & Communications, 5(4), 53-61. doi: 10.5121/ijcnc.2013.5405

Ashworth, L., & Free, C. (2006). Marketing Dataveillance and Digital Privacy: Using Theories of Justice to Understand Consumers’ Online Privacy Concerns. Journal Of Business Ethics, 67(2), 107-123. doi: 10.1007/s10551-006-9007-7

Ghari, W. (2012). Cyber Threats In Social Networking Websites. International Journal Of Distributed And Parallel Systems, 3(1), 119-126. doi: 10.5121/ijdps.2012.3109

Grant, J., & Chertoff, M. (2017). 8 Ways Governments Can Improve Their Cybersecurity. Retrieved 21 April 2020, from https://hbr.org/2017/04/8-ways-governments-can-improve-their-cybersecurity

Hadlington, L., & Murphy, K. (2018). Is Media Multitasking Good for Cybersecurity? Exploring the Relationship Between Media Multitasking and Everyday Cognitive Failures on Self-Reported Risky Cybersecurity Behaviors. Cyberpsychology, Behavior, And Social Networking, 21(3), 168-172. doi: 10.1089/cyber.2017.0524

Koukaras, P., Tjortjis, C., &Rousidis, D. (2019). Social Media Types: introducing a data driven taxonomy. Computing, 102(1), 295-340. doi: 10.1007/s00607-019-00739-y

McKallagat, C., Souza, F., Whitten-Woodring, J., & Wimpy, C. (2017). Are Media at Work in Your Neighborhood? The Effects of Media Freedom, Internet Access, and Information Spillover on Workers’ Rights. Social Science Quarterly, 98(3), 1078-1098. doi: 10.1111/ssqu.12443

Oluwadamilola, E. (2018). An Evaluation of the Right to Privacy in the Digital Age. SSRN Electronic Journal. doi: 10.2139/ssrn.3306954

Petray, T., & Collin, R. (2017). Your Privilege Is Trending: Confronting Whiteness on Social Media. Social Media + Society, 3(2), 205630511770678. doi: 10.1177/2056305117706783

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Effect of Information Technology (IT) on Firm Performance

Firm Performance, Information Technology, IT

Pages:34

Chapter 1- Introduction

Information technology infrastructure happens to be the main driver for organizational improvement and technological innovation (Yunis, 2017). Understanding how IT affects the performance of a firm can help the managers know the value of incorporating IT infrastructure within an organization. IT-based HRM practices have become a common practice, particularly in selection as well as training, talent management, employee assessment, etc. Moreover, HR practices such as skill-based pay, promotion-from-within, developmental performance processes, and comprehensive training programs play a significant role in making the organization better equipped in assimilating as well as acquiring new knowledge (Pérez‐López, 2015). This transmission and acquisition of knowledge are known as absorptive capacity.

Furthermore, absorptive capacity depends on the flow of knowledge throughout the organization that is facilitated through the application of IT (Turner, 2016). This study also aims to understand the relationship between corporate entrepreneurship and information technology. Information technology supports corporate entrepreneurship by providing information related to entrepreneurial activities and building the technological environment in the organization.

Information technology is the key factor in many technological improvements and organizational development. This study investigates the relationship between IT and performance of a firm, with the mediating role of human resource management, absorptive capacity, and corporate entrepreneurship. It is the most critical research issue to understand the effect of IT on organizational performance as it helps managers to evaluate their investment in IT. There are many studies done that show the direct impact of IT on firm performance (María Teresa Bolívar-Ramosa, 2013).

IT infrastructure incorporated with HRM practices can provide better services to line managers, help in making strategic decisions, provide essential data, and enable quick acquiring and analysis of data for HR assistants (ARMSTRONG, 2002). Absorptive capacity is a firm’s ability to transform it as well as exploit the experience by integrating it into firms’ operation. Developing, as well as acquiring the firm’s human resources represents a direct link to its ability to understanding, interpret, and absorb new external knowledge (Abedin Piry1, 2013).

Business innovation and alertness depend on the amount of acquisition of new knowledge from the environment and how the market opportunities are being exploited by the organization(Yang Chen, 2015). Absorptive capacity enables the firm to absorb information and knowledge from the customers, competitors, and external environment for building better products and introducing better services, thus enhancing its corporate entrepreneurship. Corporate entrepreneurship enhances innovation and creativity in a firm, making it more competitive and increasing its performance (Zahra &Covin 1995)

1.1 Statement of the Research Problem

Performance is the degree to achieve the objective related to work. According to Cascio (2006), when employees become successful in achieving their goal that is related to jobs, then organizations become successful in achieving higher performance because employees strive to achieve the objectives of the organization. Stannack (1996) also said that many researchers use the term performance to measure output and input.

1.2 Research Aim

The aim of this research is to find out relationship of IT on firm’s performance. IT infrastructure consists of the software, networks, hardware, data centres, as well as the devices used to monitor, support, and operate IT services within a company(Turner, 2016).

Chapter 2- Literature Review

HRM practices include a set of employee management activities. These activities are subdivided into techniques and practices, which are selection, recruitment, interviews, assessment centres, pay systems, performance management systems, team working and collaboration, communication and information sharing, benefits packages, job design, HR planning, diversity, and equal opportunity. HRM is the bundle of mutually supporting practices. These activities are combining for HR systems (Paul Boselie, 2005). Human Resource Management deals with the development as well as management of individuals within the organization and helps the organization to achieve its goals and objectives. Human Resource Management practices deal with the development as well as management of individuals within the organization and help the organization to achieve its goals and objectives.

Corporate Entrepreneurship refers to the pursuit of entrepreneurial initiatives as well as actions for the transformation of the established organization through the strategic renewal of the firm’s scope as well as processes (Yunis, 2017). This includes the development of new product lines, integration in different technological areas, or targeting different market segments. A company’s entrepreneurial orientation is a result of practices, values, and decisions which the top-level management makes to shape the firm. To make sure that the firm takes advantage of the opportunities in the environment, the managers must implement such kind of culture within the organization which supports the technology. Claudio Petti is of the view that for a firm to introduce innovative technology successfully, the top managers must be able to integrate various kinds of competencies and resources such as acquiring technological skills for the development of corporate entrepreneurship (Petti, 2013).

Firm performance measurement means measuring the efficiency as well as the effectiveness of organizations’ activities. The level of profitability, solvability, liquidity, and productivity can be easily measured through the financial ratio indicator. HR practices such as skill-based pay, promotion-from-within, developmental performance processes, comprehensive training programs play a significant role in making the organization better equipped in assimilating as well as acquiring new knowledge also known as absorptive capacity(Cordery, 2017). Developing as well as acquiring the firm’s human resources, represents a direct link to its ability to understanding, interpret, and absorb new external knowledge (Abedin Piry1, 2013).

2.1 Information technology affects Corporate Entrepreneurship

IT infrastructure is related to the ability to mobilize and organize IT-related resources including and co-presences with other resources (Bharadwaj A., 2000). IT supports CE in many ways. IT infrastructure provides information related to entrepreneurial activities and build the technological environment in the organization. IT infrastructure also facilitates communication and interaction and help then to share knowledge outside the firm and improve innovation. (Yang Chen, 2015). Thus IT infrastructure is positively associated with corporate entrepreneurship. An organization’s success depends upon the application and creative use of its IT infrastructure, while Janson &Wrycza (1999) revealed that there is a highly positive relationship between IT usage and CE activities.

2.2 IT affects the Absorptive Capacity

IT infrastructure positively affects absorptive capacity, which in turn enhances organizational performance (Rico and Cohen 2005).IT infrastructure enhances the interaction between the employees through web-based sharing of knowledge, email, cloud computing, etc. which encourage the sharing as well as a collection of knowledge. These technologies help distribution of knowledge across the firm which makes the availability of useful knowledge higher, making networking within the firm faster. This enables the firm to transform, exploit, assimilate, and acquire knowledge easily (Yunis, 2017).

2.3 IT infrastructure affects Human Resource

Advancement in information technologies has led to changes in human resource management specifically in the areas of using data in the decision-making process. The HR managers are now required to know the use of IT infrastructure. IT-based HRM practices have become a common practice particularly in selection as well as training, talent management, employee assessment, etc. Thus if IT infrastructure is incorporated with HRM, it makes HR practices more efficient.

The strategies that a business uses which are linked to HRM practices tend to have a positive impact on the performance of that firm. HRM practices such as job security, recruitment, decentralization, information sharing, and team selection compensation based on performance, extensive training, etc. affect the way a firm operates and competes with its competitors. According to (ARMSTRONG, 2002), if the management at the top of the hierarchy in a firm is made aware of the valuable role of that human resource management on an organization’s business strategy, then the managers can use those HRM practices for increasing the firm performance

Numerous researches have been done regarding the impact of CE or corporate entrepreneurship and firm performance. Naman states that corporate entrepreneurship leads to the promising success of an organization. Thus most of the research done indicates that there is a direct relationship between the profitability as well as the growth of an organization and the numerous operations involved in corporate entrepreneurship. Corporate entrepreneurship can improve the learning of new competencies as well as skills and thus facilitate as well as accelerate the competitiveness of a firm and increase its performance (Zahra &Covin 1995). A firm with valuable IT resources may be able to leverage these resources to build its capability. (Hina Zafar, 2016) stated that there are positive relationships between a firm’s IT infrastructure and firm performance. Tanriverdi (2005) stated in his research that the use of IT infrastructure can build an IT-based synchronization mechanism and improve organizational performance by creating multi-departmental synergy.

2.4 Corporate entrepreneurship and Firm Performance

There are many types of research done to study the relationship between corporate entrepreneurship and firm performance gave the result that corporate entrepreneurship leads to the development of company firm performance (Naman and Salvin 2012; Zahra, 1991, 1993; Zahra and Calvin, 1995; Kaya 2006). Most of the studies on corporate entrepreneurship (Zahra 1991, 1993; Russell & Russell, 1992) inspected the direct impact of activities of corporate entrepreneurship and orientation on the growth and profitability of the company (Antoncic&Hisrich 2014). Corporate entrepreneurship can improve the learning of new competencies as well as skills and thus facilitate as well as accelerate the competitiveness of a firm and increase its performance (Zahra &Covin 1995).

2.5 Human Resource Management Practices and Corporate Entrepreneurship

According to the resource-based view, entrepreneurial resources tend to be intangible and rather difficult to understand as well as imitate (Bharadwaj A., 2000). If the entrepreneurial resources are used along with the HRM practices then the outcome of a firm’s performance can be enhanced as asserted by Hayton (2016). If a firm applies human resource management practices effectively, then the employees will feel motivated to be proactive and ill contribute towards creativity as well as innovation within the firm. However, if the effective HRM practices are not applied, the employees will lack the inclination to be innovative or to contribute towards better ideas for corporate entrepreneurship. The main indicator of the effectiveness of a firm’s human resource management practices happens to be corporate entrepreneurship as HR practices are the source of an innovative and initiative-taking culture within the organization. Thus HRM leads to enhanced corporate entrepreneurship through the increase in the performance of the employees.

2.6 Absorptive capacity and Corporate Entrepreneurship

Entrepreneurial organizations tend to capitalize and value learning because successful entrepreneurship requires organizational learning (Covin& Miles, 2015). Furthermore, business innovation and alertness depend on the amount of acquisition of new knowledge from the environment and how the market opportunities are being exploited by the organization. Absorptive capacity provides a way for the organization to discover as well as exploit the new market opportunities. Corporate entrepreneurship is involved in exploiting and exploring market opportunities. Absorptive capacity enables the firm to absorb information and knowledge from the customers, competitors and external environment for building better products and introducing better services. ‘a firm acquiresrelevant knowledge about its activities under the absorptive capacity as per Wang, firms get benefit from it because it help them getappropriate values of information through external and internal sources (Juanru& Wang, 2017).

This knowledge is then applied by firms to support business activities. According to Sweeney, it is easy to do business decisions by absorptive capacity that can enhance the firm performance (Sweeney, 2015). In technological firms, this force acts as a driver that transforms the IT into business value for the firm. This value is also important to enhance the organization’s effort to get internalize the new knowledge related to information technology. When new product development is carried out,it helpsfirms make timely decisions related to it and significantly commercialize innovative ideas. Additionally, it helps them if they can create new knowledge more efficiently than other competitors (Lin et al., 2015).

Corporate Entrepreneurship refers to the pursuit of entrepreneurial initiatives as well as actions for the transformation of the established organization through the strategic renewal of the firm’s scope as well as processes (Yunis, 2017). This includes the development of a new product line, integration in different technological arenas or targeting different market segments. A company’s entrepreneurial orientation is a result of practices, values, and decisions which the top-level management makes to shape the firm. To make sure that the firm takes advantage of the opportunities in the environment, the managers must implement such kind of culture within the organization which supports the technology. Claudio Petti is of the view that for a firm to introduce innovative technology successfully, the top managers must be able to integrate various kinds of competencies and resources such as acquiring technological skills for the development of corporate entrepreneurship (Petti, 2013).

2.7 Human Resource Management and Absorptive Capacity

HR practices such as skill-based pay, promotion-from-within, developmental performance processes, comprehensive training programs play a significant role in making the organization better equipped in assimilating as well as acquiring new knowledge also known as absorptive capacity(Cordery, 2017). Developing as well as acquiring the firm’s human resources represents a direct link to its ability to understanding, interpret and absorb new external sources.

Absorptive capacity has a positive effect on the performance of a firm

A firm that has high absorptive capacity is more likely to acquire new knowledge, opportunities, information about suppliers, channel partners, external sources, and knowledge about target market (Cordery, 2017). Thus a firm that is high on absorptive capacity is more likely to have more knowledge regarding market opportunities which means it will have higher chances of increasing its firm performance (Iyenga, 2015). The way a firm absorbs the knowledge relevant to its activities is known as absorptive capacity and according to Wang, it is beneficial for the firms because it allows them to identify the main values of information gathering through external as well as internal sources (Juanru Wang, 2017). The firms can in turn apply this knowledge to support the business activities and decisions. According to Sweeney, business decisions can be done more effectively through absorptive capacity which can in turn enhance the firm performance(Sweeney, 2015). In technological firms, absorptive capacity acts as a driver for transforming the information technology into business value for the organizations because it enhances the organizations effort to acquire as well as internalize the new knowledge gained from information technology. Thus in the context of new product development, for example, firms can make timely decisions related to product development and more effectively commercialize innovative ideas into new products if they can create new knowledge more efficiently than other competitors (Lin et al., 2015).

HRM practices have a positive effect on firm performance

The strategies that a business uses which are linked to HRM practices tend to have a positive impact on the performance of that firm. HRM practices such as job security, recruitment, decentralization, information sharing, and team selection compensation based on performance, extensive training etc. affect the way a firm operates and competes with its competitors. According to (ARMSTRONG, 2002), if the management at the top of hierarchy in a firm is made aware of the valuable role of that human resource management on an organization’s business strategy, then the managers can use those HRM practices for increasing the firm performance

Corporate entrepreneurship has a positive effect on firm performance

There are many researches done to study the relationship between corporate entrepreneurship and firm performance given result that corporate entrepreneurship leads to the development of company firm performance (Naman and Salvin 2012; Zahra, 1991, 1993; Zahra and Calvin, 1995; Kaya 2006). Most of the studies on corporate entrepreneurship (Zahra 1991, 1993; Russell & Russell, 1992) inspected the direct impact of activities of corporate entrepreneurship and orientation on the growth and profitability of the company (Antoncic&Hisrich 2014).Corporate entrepreneurship can improve the learning of new competencies as well as skills and thus facilitate as well as accelerate the competitiveness of a firm and increase its performance (Zahra &Covin 1995).

Barney uses resource based view to examine the relationship between performance of an organization and information technology. Resource based view happens to be an economical tool which indicates the strategic resources that a firm has access. These resources can then be used by the organization for achieving its objectives and for attaining competitive advantage. This theory was formalized by Barney (1991) and the idea was first introduced by Werner in 1984. Werner suggested the idea of resource position barrier. Resource based view is the theory that proposed the concept of heterogeneous firms and stated that heterogeneous firms possess heterogeneous resources. The key concept of the resource based view is that all resources should not be given equal importance because only a few resources possess the capability of having sustainable competitive advantage. Barney pointed out that one should strive to understand the relationship between the strategies which will provide success and the sources of obtaining competitive advantage. A lot of administrative effort must be put in resources into recognizing, understanding and arranging centre capabilities.

Moreover, administration must put resources into figuring out how to create an understanding of core competencies for keeping up the key assets and abilities. In the resource based view, strategists select the procedure or aggressive position that best adventures the inside assets and abilities with respect to outer open doors. Given that vital assets speak to an intricate system of between related resources and abilities, associations can embrace numerous conceivable focused positions. The main points of resource based theory include identifying the potential strategic resources of an organization and evaluating whether the strategic resources which have been identified, can fulfil the VIRN criteria. The VIRN criteria stand for valuable, rare, imperfectly limitable and non-substitutable. The resources identified should be valuable for the firm in such a way that they enable the firm to implement various strategies which can improve the effectiveness of the firm. The resource should also be rare and they should not be easily available for the competitors. The resources should be imperfectly limitable to such an extent that they cannot be developed by the competitors and they should also be non-suitable so that they cannot be replaced.

Research studies show that high level of Corporate Entrepreneurship leads to higher organizational performance. the entrepreneurial culture is not emphasized before but this is clear that the organization employees without these has to face many difficulties such as its effects the organization sense of innovation, risk taking and pro activeness with experience.

Research shows that information technological resources such as IT infrastructure, software, assets, and Information technological investment positively influence external and internal capabilities. Managers should cultivate these resources which help them enhancing core business competitive advantages. Managers should find ways that how investments made on IT projects which leads to increase in organizational abilities.

As Bharadwaj 2000 concluded that firms should find ways to increase its capabilities not simply investment made in IT.The firms should focus on the hierarchical structure which decrease the communication barriers and enables effective technology which helps in taking and distribution of knowledge. To get higher level of organization performance organizations have to focus on their recruitment, selection and information systems that helps the organization in keeping and distributing new knowledge. Organizations should focus on IT to increase the organizational efficiency and productivity. Cordery states that the manager must make collaboration with their employees by using IT in the organization (Cordery, 2017). They showed make the IT infrastructure up to date so the organization can used latest technology in order to use them as competitive advantage because most of the organizations that are leader today is because of their thinking to use IT as an advantage.

Chapter3-Methodology

This research study is qualitative in nature, a pilot study with the random sampling process is carried out to confirm the features of IT industry. Self-administered survey from different companies CEO is conducted to examine the relationship of IT with the absorptive capacity and the firm performance. The number of companies used to analyse questions and variables is confidential. Pilot study results show that data is reliable (higher than 0.70) which is the accepted range, and it is normally distributed. The comparison of different objectives was made to minimize the non-response bias among non-responding and responding businesses. The results are evident that there is no significant difference between respondents and non-respondents that is based on different questions like standard data identification, involvement of employees and approach to third party. Beside this, the Harman test is applied to remove any bias from the data. This pilot study is significant to get the results.

3.1Hypothesis of study

There are different hypothesis of study such as:

H0= Effect of Information Technology (IT) on Firm Performance

H1= relation between Absorptive Capacity and Corporate Entrepreneurship

H2= relationship between Corporate entrepreneurship and human resource management practices

H3= relationship between Corporate Entrepreneurship and firm performance

H4= relationship between HRM and absorptive capacity

H5= relation between Absorptive Capacity and firm performance

H6= relationship between HRM and Firm performance

H7= relationship between IT and Absorptive Capacity

3.2 Research Instrument

The survey instrument that is going to be used in the process of collecting data includes using questionnaire regarding Information Technology factors that will be adapted from the work of Liang 2010 and Bolivar-Ramosa 2013 (Sweeney, 2015). There will approximately be 24 items within the questionnaire in which IT infrastructure will have five items. For human resource (HR) we will use Youndt and Snells (2004) 5 item scale which includes the entire process of hiring as item 1, numerous sources of recruitment as option 2, development of employees as item 3, development of employees while using technology effectively will be item 4, and how employees recognize as well as use the infrastructure of information technology will be 5.

3.3 Sample and procedure

The population for this study is CEOs and managers from different IT units in the industry that focus on improvement of firm performance by technology adoption and absorptive capacity. The research focuses on informational technology sector to get idea about improvement in firm’s performance. On the basis of 5 item scale discussed above, IT units are selected for the research and 150 managers and CEO are considered for this study, but not all of them responded. Managerial personnel is considered for this study due to their significance in any firm. The factual assessment of variables is carried out by considering them reliable by getting information from relevant sources. CEOs and managers are provided with questionnaires to collect data. To get high and authentic response rate, 200 questionnaires are emailed, presentedand distributed. All of the personnel involved were assured of their confidentiality.

Out of 50 distributedquestionnaires, 20 were received by emails and 30 by self-administered. In these received questionnaires, 30 found incomplete and 5were abandoned due to fake response. Remaining15questionnaires were considered for final data analysis. Cluster sampling is an appropriate technique to conduct data analysis for sampling.The information gained from ITindustry sectors provided help to get insights about working conditions, firm performance and the improvement in HR. the selected industries units are involved in implementing latest technical solutions to improve employee’s management and firm performance. In addition, these industries are also reported maximum benefits in terms of employment and technical management issues. Different industry’s technical units considered comprised of, textile, sports, food, leather, and furniture technology. Among respondents, 18% were female and 82% were male.

3.4 Measure

The constructs are used in the study to measure empirical performance, which is pre-tested in prior studies. This is useful to test significance and authenticity of variables and measurable items. The prior studies confirmed use of Likert scale to analyse the variables. The seven point Likert scale started from strongly disagree (point 7) to strongly agree (point 1). This was followed by the meta-analysiswith the use of same measures, as conducted in past studies. In the next process, random sample of some relevant studies is confirmed to find out value of constructs, in relation to IT. The main aim to analyse prior studies was to find out standard methodology they used to code the variables.

The flexibility in the IT industry is based on flexible scale. Respondents were inquired about the connectivity, compatibility and modularity of IT firms. The constructs in this regard were measured on the multi item scale, on the basis of past literature. Reliability value is found out to be 0.879 which is larger than accepted value of 0.70.On the venturing scale, five items mentioned above were diversified to know the value of operation in the IT industry. This result validated the scaleperformanceunder entrepreneurial activities.

3.5 Common Method Bias

All measures and their collection was carried out from same source. Harman’s one factor test was used to find out the variance through common method. Common method variance is a key to get covariance of the constructs. Harman’s one factor test is helpful to find out potential bias in the data set. Factor analysis method in dependent and independent variable is not considered in variance.

3.6 Data collection

Prior to data collection, the questionnaire was sent to IT industry experts to find out a feedbackabout project management and IT. After the receiving of feedback, firm performance and constructs’ change in questionnaire was analysed.The question list in thequestionnaire was 13. The raw data was exported to Microsoft Excel file. Cleansed data was used to determine the composite value of get descriptive statistics. In addition, Pearson correlation coefficient was conducted to find out significance of results.

3.7 Research Action Plan

To analyse the questionnaire, frequency distribution was carried out,i.e. byseparating the response related to each category, i.e. research questions. These categories are relationship between IT and Absorptive Capacity, corporate entrepreneurship, firm performance, human resource management, and effect of IT on performance of firm. Most of thesevariables are interrelated and have causative relationship. This property of variables has make it easy to analyse all the variables and suggest direction of effect.

3.8 Ethics and Potential Problems

There are diverse sets of issues that the data collected might face, such as an issue with fluctuations in-laws, natural conditions, economy, etc. This kind of aspects might vary and influence the generalizability. Time constraints might also influence the research conducted.Organizations must be aware of the significance of this phenomenon, which is associated with the increasing importance of using information technology to develop interdependent tasks to foster interaction among organizational associates. HR practices are the source of an innovative and initiative-taking culture within the organization. Thus HRM leads to enhanced corporate entrepreneurship through the increase in the performance of the employees. Information and communications technologies, when accurately used, offer firms significant opportunities, which are why the organizations must consider information technology as a factor that supports competitiveness and increases organizational performance.

The other aspects of IT, such as IT skills, IT leadership styles, and other IT resources, should be examined, and their impact can be observed on firm performance. Moreover, researchers should examine the consequences of absorptive capacity within organizations such as staff satisfaction and improvement of quality. More studies may be needed for investigating the relationships with are insignificant and whether there are other measures that can reveal a better understanding of the rile of information technology infrastructure in increasing firm performance.

Chapter 4- Data findings & Results

4.1 Instrument Validation

Current research study has used nine main variables. The research process was validated in two steps, first was construct reliability and second was the variance of these constructs. There are 24 items in the questionnaire that were aligned on the five-item scale basis. Youndt and Snells (2004) described the 5 item scale which includes the entire process of hiring as item 1, numerous sources of recruitment as option 2, development of employees as item 3, development of employees while using technology effectively was item 4, and how employees recognize as well as use the infrastructure of information technology was 5. Construct validity was calculated on its basis by using convergent validity and discriminant validity basis(Juanru& Wang, 2017). These estimates were necessary to figure to know the consistency of data and understand the operationalization of these constructs.

Eight constructs of this research study are as follows:

H0= Effect of Information Technology (IT) on Firm Performance

H1= relation between Absorptive Capacity and Corporate Entrepreneurship

H2= relationship between Corporate entrepreneurship and human resource management practices

H3= relationship between Corporate Entrepreneurship and firm performance

H4= relationship between HRM and absorptive capacity

H5= relation between Absorptive Capacity and firm performance

H6= relationship between HRM and firm performance

H7= relationship between IT and Absorptive Capacity

Among 50 distributed questionnaire, only 15 were complete, and rest were abandoned due to incomplete information. Data analysis based on these fifteen completed questionnaires were done. To get most out of data, the hypothesis was considered as constructs and coding was assigned to the variables.

4.2 Constructs of this research

Key constructs as variables are discussed and coded as,

FP= Firm Performance

ACCP= Absorptive Capacity and Corporate Entrepreneurship

CEHRM= Corporate entrepreneurship and human resource management practices

CEFP= Corporate Entrepreneurship and firm performance

HRAC= HRM and absorptive capacity

ACFP= Absorptive Capacity and firm performance

HRFP= HRM and Firm performance

ITAC= IT and Absorptive Capacity

All values t statistics show satisfactory convergent validity. At the start, correlation in the constructs was calculated, i.e. standardized deviation and mean values of the model. The mean value and standardization calculated for the model is acceptable in range. Reliability values, composite reliability and loading standardization, is also calculated and shown the table. Composite and indicator reliability is measured and shown in table 2. Indictor reliability has a threshold value of 0.50 while composite reliability 0.70.

Table 1Standardized Loadings and Reliability Table

Constructs/Variables	Cronbach’s Alpha	AVE	Composite Reliability	Standardized Loading
FP	0.912	0.752	0.935	0.81-0.84
ACCP	0.87	0.701	0.921	0.76-0.81
CEHRM	0.88	0.760	0.92	0.76-0.86
CEFP	0.90	0.671	0.931	0.75-0.82
HRAC	0.88	0.712	0.920	0.71-0.79
ACFP	0.89	0.671	0.923	0.60-0.80
ITAC	0.879	0.656	0.913	0.70-0.81

Composite Reliability and Cronbach’s Alpha values are more than the threshold value, which is 0.7 in the constructs for the model, highlighting a measurement range is acceptable to know the reliability of any item. A complete variance of indicators is calculated by the average difference extracted (AVE), which is devised by the latent construct. Its values in this study are more than 0.50, which is above the threshold. Besides, the factor loadings are under significance level, i.e. p<0.001 so fall within the range. Holding value is significant means they are presenting convergent validity.

Standardized deviation, correlation matrix and Mean values are calculated for the constructs in the following table,

4.3 Descriptive Statistics

Table 2 Table of Descriptive Statistics

	SD	Mean	FP	ACCP	CEHRM	CEFP	HRAC	ACFP	ITAC
FP	0.86	6.01	0.866
ACCP	0.85	5.96	0.583	0.832
CEHRM	0.90	5.85	0.543	0.370	0.831
CEFP	0.92	5.94	0.561	0.442	0.543	0.851
HRAC	0.96	5.87	0.546	0.380	0.540	0.572	0.843
ACFP	0.89	5.95	0.564	0.381	0.563	0.520	0.542	0.821
ITAC	0.88	5.94	0.562	0.386	0.512	0.532	0.534	0.543	0.815

AVE is helpful to show the discriminant validity, and it should be higher in all constructs than the squared correlation, under the degree by which all construct deviate. The table shows all constructs are under the acceptable range, so fulfilling criteria of discriminant and convergent validity. The chart is also showing inter-construct relationship under correlation when there is a significant value.

4.4 Hypothesis Test Result

Table 3 Hypothesis Results

Relationship	Coefficient Value	Significance level
ACCP → FP	0.233	***	H1:Accepted
CEHRM → FP	0.238	***	H2:Accepted
CEFP → ACCP	0.343	***	H3:Accepted
CEFP → CEHRM	0.577	***	H4:Accepted
HRAC → CEFP	0.444	***	H5:Accepted
ACFP → HRAC	0.153	**	H6: Accepted
ITAC → FP	0.038	*	H7: Rejected

Note: *<0.05; and **<0.01

The table shows hypothesis results, according to the results, H1 is strongly supported meaning that absorptive capacity and corporate entrepreneurship are related and IT is strongly affected by these factors while the coefficient for this variable is 0.233, which is significant. H2 is also strongly supported by the results, that means corporate entrepreneurship and human resource management practices are key to affect firm performance; its coefficient value is 0.238. H3 is also accepted that means corporate entrepreneurship and firm performance are linked to absorptive capacity and corporate entrepreneurship, and the coefficient is 0.343, that supports the results. H4 and H5 are also accepted, showing that HRM and absorptive capacity & absorptive capacity and firm performance are playing a key role for an organization regarding improvement in organizational culture and performance, with the coefficient values of 0.577 & 0.444. Statistically significant means the value range is acceptable. H6 is accepted, which is HRM and firm performance, with a coefficient of 0.153. H7 is rejected that describe the relationship between IT and absorptive capacity with coefficient 0.038.

All the hypothesis were positive and accepted, except H7, which was insignificant. The values of data collected from the questionnaire have shown the common perception of the CEO and managerial personnel responded. Efforts related to improving an organization are related to investing in IT while many organizations do not support IT in terms of absorptive capacity and involvement in different matters. Key components of human resource management and IT are discussed in the paper. For instance, part of software and hardware understanding for employees and stakeholders play an essential role for management and to improve the firm performance. Based on collected data results, a detailed discussion is made.

Chapter 5- Discussion and Analysis

In past years, researchers have focused on exploring the impact of organizational development on the performance of firms with the help of many variables. The theory and numeric approaches are found as support for this study because evidence-based findings help describe performance outcomes. Research evidence suggested that firms’ key variables impact overall organizational performance. Drawing on literature, the current research is conducted to identify the key role of variables on the firm’s capabilities regarding IT. It has been discussed that IT capabilities and dimensions are positively influenced by integration and infrastructure. They play a positive role to enhance the performance of the firm(Yunis, 2017).

Findings of the current research study provided substantial support to literary evidence regarding firm performance. Results have shown that IT has a significant influence in the field of building organizational capacity and bringing improvement. Firm based HRM practices are increasingly influenced by IT approaches, to offer information to employees and bring compatibility(Covin& Miles, 2015). Current research has built seven constructs/hypothesis to identify the impact of IT on the performance of firms(María Teresa Bolívar-Ramosa, 2013). Results have revealed that IT-based strategies have a direct impact on the organizational atmosphere. The flexibility and IT-based integration are playing a certain role to manage business ventures as well as the firm’s performance.

Among all the variables (that show positive results/supported by research and data), one variable was found as insignificant. Results did not support it, it is likely that in some organizations, the required structure of the firm’s operations was not followed to build the absorptive capacity. It is also likely that the data collected was insufficient to support this hypothesis. According to this finding, absorptive capacity is not related to IT that can have an insignificant impact on flexibility, integration and transforming knowledge in a firm (Abedin Piry1, 2013). To that extent, the collected data from different companies CEO and managers can be linked to this result. The findings suggest that the firm should focus on key performing frames before engaging in IT-based activities.

The notion that HRM is related to firm performance, no matter whichever business company is operating is true. The insignificant relationship can highlight the worldwide business operations in companies that are not focusing on performance management but do not understand the role of IT in acquiring absorptive capacity (Zahra &Covin 1995). Reason for insignificance can be the variable nature of the industry, for instance, for this research, different units of industry like textile, sports, leather, food and furniture are considered. IT sector operating in all these industrial units has to focus on absorptive capacity, but it is not likely to be prevalent in all the organizations.

The study inferred that business innovation and alertness depend on the amount of acquisition of new knowledge from the environment and how firms use market opportunities. As in collected responses, it can be seen that not all the respondents are satisfied with prevailed practices in their firms about data sharing systems, business units and compatibility. The study investigated the concept of corporate entrepreneurship and its impact on firms’ performance. It is truly identified that the pursuit of entrepreneurial initiatives is essential for the transformation of the established organization. Corporate entrepreneurship performance is significant for organizational learning as it accelerates the firm’s competitiveness, hence performance (Bharadwaj A., 2000).

Current research has provided a dimension to understand the IT firm’s performance factors, with a specific focus on corporate learning and human resource practices. It is seen from past literature that IT infrastructure helps the company acquire innovation and learning since it identifies business practices integral to the firm’s performance. IT resources for a company are positively related to show the impact on products, services, and decision-making process. IT firms also need to establish corporate rules and standards that enhance corporate entrepreneurship and its impact on company standards (Rico and Cohen 2005). They also believe in providing a compatibility platform, which can effectively help business units. The corporate framework allows managers to do a sharable system and manage documents under audit. Training and development framework is also necessary for IT firms, to deploy new techniques, hardware and software functioning (Zafar, 2016). Most of the corporate entrepreneurship segments view learning and training a critical part for the firm’s performance (Janson &Wrycza1999).

The study allowed the understanding of the possibility that human resource practices are fundamental to consider when it comes to improving the performance of a firm. The human resource practices and management aspects are critical to understanding since they offer native support to the mechanism of growth as well as innovation. The managers target innovatory aspects under training and learning regarding new products. HRM also plays a crucial role to serve company, regarding recruiting and talent acquisition strategies. The current research study also offered evidence for HRM significance and its role to improve the IT firm’s performance. HRM practices are key to consider, when it comes to recruitment, decentralization, job security and information sharing aspects. Hierarchy of a firm is necessary to get influenced by the business strategies adopted by HR (Naman and Salvin 2012).

Results of the study show that superior IT practices are involved with better management, and absorptive capacity related to corporate performance. It is truly found out that IT firm work with HRM practices and this support is substantial when viewed in terms of perceived benefits (Bharadwaj A., 2000). The scope of understanding operates within positive influence acquired from the entrepreneurship. Literature supports this concept by illustrating the role of new competencies required to boost a firm and enhance learning. The resource-based approach is also used by authors to know the relationship between the firm’s performance and IT. This tool has been proved significant to understand the strategies that companies adopt, to manage competitive advantage (Antoncic&Hisrich 2014).

The study attempts to describe the positive impact of IT on the performance of the firm under many dimensions that fulfil the criteria. Most of the variables used for this measurement proved their relationship, and only one variable, i.e. absorptive capacity, did not fulfil the criteria of measurement. The result based evidence can conclude the role of IT in managing the firm’s performance under sophisticated technology and elements. This study has shown a unique impact of IT that performs well when it is utilized with other variables. The scope of understanding is extensive due to involvement of multi-reach variables.

Chapter 6- Conclusion

Current study investigated the effect of information technology on firm performance. To accomplish this objective, the qualitative framework for the study was devised. With the help of questionnaires, CEOs and managerial personnel from multiple industrial units were selected. Performance is the measure of any organization that helps companies get substantial support to manage efficiency. The research study identified the main hypothesis related to absorptive capacity, corporate entrepreneurship, HRM practices, IT and firm performance. To know the key relationship and impact of these variables on the firm’s performance, a comprehensive investigation was carried out.

The empirical study provided substantial support to the existing literature, i.e. current results are in accordance with past findings of researchers; only one result found insignificant. The finding predicted that information technology is a substantial driver for the performance of any firm. The scope of organizational structure is associated with key prevailed practices because these practices are determined by human resource management. For example, recruitment, training, learning, talent acquisition and different work-related activities for employees are conducted by HR personnel, so it is imperative to consider the role of information technology.

In previous studies, it was confirmed that IT is the main predictor of making the structure of the organization. The performance of the organization is likely to be affected by the implementation of current IT practices, the involvement of employees. For these companies, it is also investigated, how absorptive capacity can influence the work practices in IT firms. The main role of absorptive capacity allows employees to absorb relevant knowledge for activities, and it is beneficial for employees in terms of identification of main values, whether they are from internal or external sources. Firms truly implement this knowledge on business activities and decisions, so make an effective contribution, when viewed in terms of necessary equipment. Technological firms understand the role of absorptive capacity as it works significantly for the transformation of technology for product development.

Findings suggest that if a company identifies the role of infrastructure and investment for effective functioning, it can make significant contributions to the performance. There is a negative impact observed for companies, where required investment or infrastructure is not considered, for instance, research indicated if absorptive capacity is not fully implemented in the framework of business, IT expertise and functioning do not perform at a significant level. The HRM practices and corporate entrepreneurship have a direct impact on the firm’s performance. Yet, there should be other factors that can support it, for instance, sharing of values, product diversification and business units.

The findings of other studies conform to current research findings in terms of implementing research practices, better employment screening, talent acquisition and adoption of technical software. The evidence suggests that the use of relevant software and hardware not only enhance the efficiency of existing work practices but also set standards for business values. IT productivity allows the transformation of the existing business culture by incorporating better values and significance. If necessary software and hardware are provided to employees, to enhance their efficiency and cope up in the modern work environment, it will work on financial profitability grounds. The improved profitability ratios can be market share, growth, market value, and key operational dimensions.

To acquire the full scope of workplace expertise, human resource management is responsible for identifying core values for performance. It works with improved functionality and business aspects if employees are measured with the necessary expertise. Due to the implementation of required software and business units, IT firms experience flexibility in most uncertain environments that help bring openness to the best learning atmosphere. Mostly such firms also offer proper control to effective communication practices. IT functions empower firms to acquire the required responsibility and authority that facilitates learning. More adaptive capacity is sophisticated as it gets higher terms because it works with organizational empowerment.

Research evidence reported that IT had been one of the main antecedents to increased market share and stable sales(Naman and Salvin 2012; Zahra, 1991, 1993; Zahra and Calvin, 1995; Kaya 2006). Most importantly, with the implementation of IT software and skills, customer satisfaction is attained, when indirectly measured from HRM practices. Application of IT processing allows the organization to spread the increased flow of information among employees. This process helps organizations acquire competencies and competitive advantage. With the influence of organizational expertise, the flexible strategic report is attained when its productivity is measured. The study contributed to present some solid evidence-based results that are compatible with past research and provided a threshold for further research.

The established relationship between key variables of study like HRM practices, corporate entrepreneurship, and IT activities discussed that an IT firm could improve its performance if the necessary focus in maintained about performance outcomes. The study highlighted significant paths for IT firms, under capability dimensions and IT expertise. The current study has contributed to the existing literature by providing a perspective on IT capabilities, requirements and contributory factors for the performance of a firm. IT industry experiences a positive relationship between HRM and operations. The support of IT is inherent in all aspects of HRM practices since it works in multifaceted ways. New and existing IT practices must be ensured by firms, to boost the necessary expertise and maintain skill level in the workplace. Results discuss that IT investment should be focused in future for all the IT firms and departments since they enhance the scope of work and broaden employees’ horizons. Research has also mentioned future orientations for research related to IT firms’ performance.

6.1 Recommendations and Limitations

Research study has some limitations. The selected participants of the study are only CEOs and managers. Small sample size make results’ insights limited so deep insights are not observed. Although this sample size is considered right for such kind of survey but possible to reduce the true insights. All the participants were well informed about the nature and purpose of this study, so it is possible that some of the opinions are biased. In this study, while estimating the impact of business ventures, some of the aspects can be underestimated due to diverse IT-based activities. Another possible limitation can one-dimensional nature of the measures taken for performance.

Results of the study call for certain recommendations, for example, firms’ performance is likely to be improved by making efficient use of human resource management practices. It is also recommended that IT practices in companies should be incorporated in accordance with the absorptive capacity. This will not only improve the performance of the firm but will also manage the demand for information processing. Organizational management should make correct and appropriate decisions regarding employee recruitment and acquisition of talent. IT firms should focus on all the aspects of product development and its diversification regarding software, hardware, human resources and telecommunication.

HR practices and adaptive capacity concerning IT firms are necessary to develop human resources skills. It should be prevailed and developed in all IT firms since it will acquire new knowledge, supplier’s information, external sources and market opportunities. These activities will outperform the organizational learning and development of expertise in employees. For the current study, absorptive capacity is insignificant that highlights the necessity to work with capabilities are inherent in all the IT firms used for this study and management should focus implementing versatile techniques and involve all the employees’ sources in better assimilation of activities.

References

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Response as US President on Cyber Attack from North Korea on Google & Facebook

Cyber Attack, Facebook, Google, North Korea, US President

Pages:5

Data is the most precious commodity present in the modern world. The case of stolen data is a matter of High Alert nature as it is privileged & confidential information of the American people that was shared with Google & Facebook with the confidence that it will remain safe. As the president of the US, I would take a middle position. I would choose not to go out hitting missiles as it has already been done in the past by American presidents who raged war based on no evidence regarding weapons of mass destruction. This study will depict how I as the US President will respond to the hacking of Facebook and Google’s Data by North Korea.

Raging a war based on an act of a few individuals is not only cruel but also extremely unjust. Just because few individuals hacked the documents, there is no justification for bombing the rest of the citizens as a result of that. Even if the hawks keep forcing, I will stand still on my own decision and choose not to start a war as an ex- Us president did in their times when they raged wars on poor people. I will take the most strict action possible against the perpetrators but

This is an action of some individuals and not of the whole country. There are millions of North Koreans who are deprived of the necessities of life. Bombing them all and turning the entire country to dust is an immensely cruel act. Firstly I would present the matter with evidence that was gathered regarding the hackers in the International court of justice. Being the principal judicial organ of the UN, I would bring the whole case into their notice and make Kim-Jong-Un give up this team of hackers to the US. They will be trialed for their actions, and they will be provided legal assistance.

Raising the voice at the UN is not only legal but the most logical of decisions considering the predicament. If I deal with the matter the same way every other previous US president did, it will only lead to millions of death, Chaos, and war. None of these things is what I would want any more for my country. Hence I would make the most logical of the decision by trusting the Justice system of the UN that will provide me with the solution to this predicament by intervening in this matter.

In case of North Korea does not give up the criminals, I would apply sanctions against the Country and make all the efforts within my power to hold any source of financial aids that is being given to them. I would also ask all allied countries to unite with the US in making sanctions against North Korea. I would make all ends meet in order to ensure that North Korea bends down against my commands regarding the criminal act. All those actions that are necessary and needed to be taken for them to give them over will be made.

Even if the UN isn’t able to get me those individuals that planned and executed this crime. I will take them from Korea at any cost. Even if I have to send a team of expendables to get the job done, I will do it. I will make sure that they are brought to the US, and they are prosecuted for the crime that they have committed, and that will put one of these actions to an end and bring the perpetrators to their fateful end. Whatever the law decides regarding the crimes and the intensity of the evil they have committed, they will be dealt with in that regard with exact accordance with their offense.

The 2nd and equally responsible set of people in this predicament are Google & Facebook. Considering that I am a US President with a responsibility of over 300 million people, in comparison to me, Facebook and Google have Billions of Users. Their responsibility towards the users is many times more, and so is the responsibility of protecting the rights of these citizens whose data was stolen due to the lack of security of these two companies making billions of dollars from them. The fact that Google and Facebook didn’t have a hack-proof firewall is the reason this happened.

It was the responsibility of the two companies to have a Firewall that can’t be breached. They should have had it in order not to let this matter occur. These 2 companies are amongst the most trustworthy companies as their customers share the most amount of data from across the world. Considering the level of responsibility they have regarding maintaining the privacy of each account, this still is a breach of privacy and security that needs to be responded in a serious manner. This is not a predicament that can ever be let go of due to the extent of the issue.

In that regard, I would launch a lawsuit against these two companies and take Mark Zuckerberg and Sundar Pichai to the court. The two companies make billions of dollars each year from the traffic their trusted customers generate. It is, by definition, their responsibility to create a system that is unbreakable considering the level of responsibility that lies on their shoulders. I would take strict action to regard their security system and also raise this global debate level against all cyber-crimes.

Each of the two companies will be fined for having such a firewall that allowed this incident to happen.Furthermore, I will retrieve information regarding all the individuals whose data has been hacked and make the two companies pay the damages to these individuals. I would also make sure for the CEO’s of these two companies to formally come forward and apologize for letting this incident happen to their customers. Adding to that, considering the seriousness of the matter, I would also talk to the nation and communicate to the whole country and the world that incidents like these would never happen again.

Both of these two actions are necessary considering the magnitude of the crime that has been committed by the hackers. Considering the intensity of the crime, both these mediums/ companies, in case they choose not to forward a formal apology, they will be blocked from operating in this predicament until they make absolute, unbreakable firewalls that never let any perpetrator enter into the system and be able to gain any such access to confidential data of the users at any level.

Another important step would be to take down Facebook and Google till the firewall is verified. Fining them would make them feel responsible, and they would spend more on their building a hack-proof firewall next time to avoid this predicament from happening ever again. They will stay down for the customers till the issue is verified to get resolved. After the firewalls are verified & a proper team of hack lockers is hired to fix this issue from never letting happen again, after the approval of the Ministry of Information, they will be allowed to go live again.

It can be concluded on the fact that as a US president it is my responsibility not to be cruel and remain just in my actions. Neither should the perpetrators be let go nor would be the irresponsible companies for having hackable servers. Bringing the perpetrators and making an example out of them is necessary. If either of the parties are left unpunished for their crimes, it would be unjust to the users who put their faith in sharing their private information when Facebook and Google demand them to provide for any sort of verification or validation.

Crime Theories

Cybercrime

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Bank Stability and Financial Technology

Bank Stability

Pages:20

Introduction

Banks in Malaysia performed well in 2019 as fintech disruptions are reshaping the industry and external disadvantages, as well as the uncertainty brought about Brexit and trade disputes among China and the USA. Outside causes do not only decelerated worldwide requests but also triggered fear of a recession and protectionism, affecting business confidence and ultimately affecting loan demand?

Rupeika-Apoga et al. (2018) found that despite these challenges, Malaysian banks have demonstrated reasonable takings and resource trait, with enough wealth shields to withstand likely pressures, despite falling profit borders and loan drawdowns.

Allawala, Allawala& Saadiq (2018) stated that there are around 12 investment banks, 16 Islamic banks, 25 commercial banks, and one global Islamic bank working in Malaysia. The growth rate of loans and revenue of these banks shown a remarkable number rise and helping the country`s economy. An expert from MIDF Amanah Investment Bank said that industry earning is raised to 3.5 this year as it has a slow down since 2018. We are also amazed to see the loan growth has also increased by 3% to 4%, which was less than 2% last year.

Ahamed & Mallick (2019) emphasized that said modest credit from industries has steered to lower-than-expected credit advance in the year, while mortgages and retail sales have remained stable, weakening overall performance. “Companies must either delay the release of approved loans or decide to repay existing loans due to economic uncertainty”. The revenue growth with the best performance of banks are AmBank Bhd, CIMB Bank Bhd, RHB Bank Bhd but the performance of Public Bank Bhd did not perform well in the market.

He said that relatively speaking, Islamic banks continue to outpace traditional banks, with double-digit growth in revenue this year. Also witnessed FinTech’s roots in traditional banking, including CIMB International, Hong Leong Bank, Affin Bank, and AMMB Holdings, and Technology Company Grab said they are interested in obtaining virtual banking licenses in the country.

Lipton & Pentland (2018) found that CIMB Group established an electronic bank in February in Philippines recently. Besides, around 50 non-banks can issue electronic money in Malaysia, of which four-quarters provide solutions for mobile pay, accounting for 86.6% of the sector’s deals. “Boost”, “GrabPay”, “Touchn Go (TnG)”were significant in Malaysia as e-wallets. The few names are “Lazada” wallets, “Samsung Pay”, “PayPal” TnG is 55% retained by “CIMB Group Holdings Bhd”.

Kerényi&Müller (2019) realized that in terms of monetary policy, the “National Bank of Malaysia (BNM)” reduced the overnight policy rate (OPR) from 27root points in May to 3% and cut the statutory reserve requirement (SRR) from 3.5% to 3.0 in November % to maintain the monetary policy. Sufficient liquidity in the financial system. The industry’s liquidity is still abundant, with an average liquidity coverage rate of 150% this year and payments more or less outpaced loan growth. He said that meeting the requirements of the Net Stable Fund Ratio (NFSR) stipulated by the State Bank is also a key factor for banks to accumulate deposits this year.

Wu & Duan (2019) stated that the bank’s choice of assets to buy will help stabilize asset quality and thus support the bank’s Lower credit costs. Given accommodative interest rates, household/retailer credit demand has been maintained amid weak corporate demand. Despite the more nervous capital market activity, another contributing factor to revenue is the elasticity of fee income. Fee-based elastic revenue comes from enhanced funding deedsby banks so they cut OPR capital in April.

Frost et al. (2019) pointed out that given that the normalization of interest net brim occurred intwo or three quarters, the OPR reduction of the State Bank had no significant impact. In 2020, the consumer sector will continue to support loan growth and the entire bank. He said that although the OPR may be further reduced in the first quarter of next year, it will not have a significant impact on bank earnings in 2020. The insurance industry remains stable.

Gnan &Masciandaro (2018) found that the takaful business’s insurance business income in 2019 remains relatively stable. An analyst with MIDF said that the acumenamount of domestic takafulis rising gradually. As of the first half of 2009, the takaful rate has risen from 9.3% in 2009 to 15.5% double-digit growth. He said Syarikat Takaful Malaysia Bhd continues to be the best performing company, with its saturation increasing by 30% to 35% and net profit rising by approximately 40%.

Hamza & Jedidia (2020) said the same could be seen in the general business area of takaful, which performs better than the traditional business due to the low bottom, even local intake, and climbingcustomer knowledge. The growth of the business of Takaful in Malaysia is superior in typical insurance, adding that the market is also partly targeted by BN’s goal to increase the proportion of Islamic financial structure drive.

“Total, the insurance of life sector did well than the insurance sector in 2019 as general, as the latter is in a phased opening of auto and fire tariffs. Customs liberalization began past year, but other insurancesthat were scheduled to yield upshot is happens this year has been deferred to next year, leaving certain room for businesses participants. In the general insurance sector, due to low penetration and increased claims, the industry declined in the first half of 2019 (the first half of 2019), a year-on-year decrease of 1.4%.

Phan, Narayan, Rahman & Hutabarat (2019) realized that the General Insurance Association of Malaysia said the industry faces a double blow, namely low penetration, and rising claims. Malaysia’s overall insurance dispersionratio has lasted to stagnate between 54% and 55% over the past five years. However, he remains optimistic about the outlook amid solidlocal request, with the growth comes from takaful of family and life insurance.

It is expect people who are non-policy owners can take advantage of the renewal and the 3,000 tax deductions in takaful.

With prudent underwriting, he is also optimistic about the general insurance sector. He continues to focus on a growing portfolio of gainful products of insurance, such as partnerships, retail, and medium-sized trades in non-automotive businesses. The sector may further consolidate in 2020, and if the government redoubles its efforts to implement the regulation, all foreign insurance companies are expected to meet Malaysia’s 30% ownership requirements.

Mester (2019) stated that the intensified competition caused by the phase-out of debt in the general insurance industry might also lead to possible mergers and acquisitions between public insurance companies.

Tech ambitions in Malaysia

As a developing country in Southeast Asia with a population of over 30 million, Malaysia has experienced quite a few turbulent years. After the previous prime minister was involved in an international corruption scandal, Mahathir, 92, was unexpectedly re-elected as the country’s leader and promised to advance several essential reforms.

Nguyen (2016) found that Around 1 trillion ringgit of Malaysia with some domestic obligations encourage people to donate funds to these banks. There are many crow funding activities made by these banks in Malaysia.

Therefore, the way of Fintech paves its roads in Malaysia. Fintech helps the country to fight corruption and enhance the economy. The political leaders of the country started to realize the importance of technology and recognized the critical role in the country`s progress. The blockchain can also improve the economy of the country if taken into consideration by authorities.

Ozili (2018) realized that according to the definition of the Journal of Innovation Management, “‘fintech’ is a new type of financial industry that uses technology to improve economic activities.”

Fintech companies include start-ups and traditional financial companies, all of which are trying to trade or improve the services of existing fiscal institutions, and the popularity of smartphones has boosted the industry’s growth.

Mavrakana&Psillaki (2019) found that in addition to startups, traditional financial institutions have also joined this industry revolution.Many banks have established their fintech innovation projects, seeking new ideas for success, and then changing the way people manage money.

Malaysia’s early incubator and investment company 1337 Ventures produced a map of Malaysia’s fintech ecosystem covering different market segments. From this picture, most of the country’s fintech companies are focusingon the field of payments and loans.

Nabilou (2019) stated that considering Malaysia’s demographic edifice more than half are Muslims, Islamic finance (financial transactions by Islamic regulations) also occupies an essential position in the country, with extensiveadvance ability.

Many articles point out that Malaysia’s fintech development is very uneven. Some segments of the market are left unattended, while others are a red sea. The company also recently launched a pre-incubation crash course specifically for the financial technology sector. The session lasts for four weeks and is a lecture by a senior local bank.

Borroni & Rossi (2019) found that in the field of e-wallets, KrASIA just stated on the e-wallet app launched by gaming company Razer and Malaysian giant Berjaya Corporation Berhad. At present, the deal has settled in more than 6,000 retail point offline. Although in Malaysia, the e-wallet field is already a market segment with many players, and there are even Chinese players-Alipay and WeChat Pay, Razer’s entry has caused waves. At the same time, Southeast Asia’s online ride-hailing platform Grab also entered the payment field last year, launched Grab Pay in Singapore, and grew its business to Malaysia in June this year.

Hartmann& Smets (2018) stated that price comparison sites are also popular in Malaysia, with significant players like“GoBear”and “iMoney” in Singapore. Both platforms provide users with identification and price comparison services for insurance and credit card financial products. Started in 2012, iMoney stated in ameeting in 2017 that although its business has covered entire Southeast Asia, more than half of the company’s revenue still comes from Malaysia.

Hakenes&Schliephake (2019) noted that they have a first-mover advantage in Malaysia for two years, so we have been growing. But in markets such as the Philippines and Indonesia, we are more or less in the stage of improving ourselves and covering so many areas,” said Lee Ching, CEO of iMoney Wei said.

1337 Ventures also lists those segments that are still the blue ocean today, including credit ratings, real estate websites, and capital market transactions.

The regulation of the Malaysian fintech industry is mainly related to financing and equity crowd funding.

Literature review

Cooperation or demise: what banks should do today, large banks are working with fintech companies in a type of styles. They want to shrink enduringcosts and defend their market share by providing clients with novel products in banking. But all failed. To work with fintech companies and truly realize value transformation, banks need to have a clear sympathy of the advance model, in addition to scope and licensing issues of the bank’s modernism, locating and retained technology purposes.

Nabilou (2019) stated that given the enormous variances in size and culture between banks, they also need to determine how best to work with Fintech companies. We believe that banks can unlock the full potential of fintech within their organizations in four steps. Banks have many groundbreaking concepts; the trail is to determine the right ideas from them and embed them in technology. The complexity, size, and isolation of banks themselves mean that it is often challenging to address this challenge effectively.

Develop a fintech framework that rewards innovation

Borroni& Rossi (2019) found that for banks, many innovation opportunities not only address structural cost challenges but also enable banks to achieve longer-term benefits. On the other hand, working evaluation and return series are frequently shorter. Therefore, when the economic environment is uncertain, it is understandable that people are concerned about agreeing on the surplus hazards of these prices of investment. Banks need to settle this internal issue. This means that banks requirements with clear plans in the context of fintech strategies.

Hartmann& Smets (2018) stated that process execution must be top-down while encouraging innovation and incorporating lessons learned. To support development, a framework for adopting innovation must be identified, with clear accountability, decision-making framework, and success criteria. Employees should be encouraged to come up with new ideas and innovative suggestions through internal social media. Also, the “hackathon” (note: technical creativity exchange activities involving corporate IT engineers) also provides a window for encouraging employees to propose and express concepts. We endorse that banks clarify the basis and processes of their intentions, and then segment related information with companies. Which like to share, causes of internal and external influences, end on processes and tolerance gages, and the drivers that support the innovation context.

Selecting the innovative business model to meet business needs

Hakenes&Schliephake (2019) noted that although there are many innovative business models currently in use, banks usually adopt one of the following three few types: central, not central, or mix of both. For the central model, the main novelty executive directs the focal advance unit to grow commercial answers. This prototype can identify not only specific innovation needs and provide new ideas and concepts for the organization, but also better coordinate work with the main tools executive and linkages with obtaining activities and supplier management and risk interests. However, one might think that the main innovation unit is far away from the corporate unit to know its wants fully. If the central pattern toils fine, Fintech companies can assist from the funding and architecture they provide. If the operation is not proper, the organization may face a longer decision-making cycle, and it will take more time to find the business initiator.

Kim, Park & Song (2016) found that the non-central classic is more common in local banks. Every unit of business controls its management process so that departments familiar with the business can catch real problems faster and find innovative institutions that can provide effective solutions. The disadvantages are duplication of work, the creation of social procedures, and a dearth of regularity. Although fintech companies work closely with many banks can work more quickly with business sponsors, it is challenging to link new ideas to business needs deprived the care and guidance of a chief unit. We like to say that, mix model is the best solution so far.

Campiglio et al. (2018) realized that we believe that a clear novelty units aids banks set the tenor and communicate the right point. At the same time, banks need clear leadership to defend innovation. We praise, however, that the void among purely innovative institutions and commercial teams wishes be as close as workable. Therefore, consider it necessary to ensure the transparency of the end-to-end innovation adoption process. The parties involved in acquiring bank innovation projects currently have little understanding of end course everything, so the confusion faced by fintech companies can be imagined.

Mavrakana&Psillaki (2019) researched that our research shows that when banks seek assistance from fintech companies to drive innovation, their preferred interaction strategy is a collaboration. Through cooperation, banks can work together to develop new technical standards for future adoption. We also pointed out in the analysis that in terms of internal product development, big banks in the region of Asia-Pacific. They are fixated than banks in the many different areas, especially in the field of digital payment. They use banks to provide services to customers who have insufficient banking services.

Junejo, Shah & Bachani (2019) noted that banks in North America tend to invest in new product development, and many large US banks choose to invest in fintech startups. European banks usually take a stable method, and they may be extra to incorporate M & A into fintech strategies. Generally, just a few of the 54 banks globally surveyed conducted extensive cooperation with fintech companies through collaboration, development of independent fintech products, investment in innovative companies, or acquisition of innovative companies.

Chol, Nthambi & Kamau (2019) found that banks have initiated or participated in numerous incubators, accelerators and programs for training to gain early entrée to tools and flair without having to rely too much on fintech companies. For fintech companies, such arrangements make it easy to get the capitals, funding,data, and social breaks they need to trail their products or services prototypes. The way to integrate with FinTech companies is not unique. However, while banks want to rely on fintech companies to drive innovation, it is often difficult for them to successfully implement new and innovative technologies, regardless of the type of integration they choose.

Zhao (2018) stated that the sooner the whole bank accepts creative ideas, the faster it will achieve sustainable change. Banks should wisely value many integration copies and select a hybrid model that can support their novelty standards and lasting development plans.

Malaysia is becoming a promising fintech market in Southeast Asia.

Kephart et al. (2018) stated that as a developing country in Southeast Asia with a population of more than 30 million, Malaysia have experienced quite a few turbulent years. After the previous prime minister was involved in an international corruption scandal, Mahathir, 92, was unexpectedly re-elected as the country’s leader and promised to advance several significant reforms.

Natarajan, Krause & Gradstein (2017) realized that when analyze the data for the years 2013 to 2017 we see how they are really very significant. In terms of investment in fintech startups in the Malaysia, $6.7 billion was raised compared to $ 4.4 billion in the rest of Europe. In terms of employment at the end of 2017, the UK already employed more than 60,000 people in this sector, more than in Singapore, Hong Kong and Australia combined, generating more than £ 6.6 billion last year. In Spain, we barely exceed a thousand employees.
Safarzyńska & van den Bergh (2017) found that focusing on the main risk that I mentioned at the beginning of this article: minimizing regulatory risk. To this end, in 2013 they began to work within a legislative and supervisory framework that would allow them to create bodies adapted to the new business models developed by fintech companies.

Nyborg (2016) realized that Fintech companies include start-ups and traditional financial companies, all of which are trying to replace or improve the services of existing financial institutions, and the popularity of smartphones has boosted the industry’s growth.

Rahman (2018) found that in addition to startups, traditional financial institutions have also joined this industry revolution: many banks have established their fintech innovation projects, seeking new ideas for success, and then changing the way people manage money.

Kopp, Kaffenberger&Jenkinson (2017) researched that Malaysia’s early incubator and investment company 1337 Ventures produced a map of Malaysia’s fintech ecosystem covering different market segments. From this picture, most of the country’s fintech companies are put in the field of payments and loans.

Tsai & Kuan-Jung (2017) realized that considering Malaysia’s demographic structure-more than half are Muslims, Islamic finance (financial transactions following Islamic regulations) also occupies an essential position in the country, with considerable growth potential.

Rupeika-Apoga et al. (2018) found that the increase in Fintech newcomers in the sector does not have to provoke panic attacks on banks due to the challenges posed by the radical transformation of all their technological infrastructure in order to compete. The perpetual popularity of “us against them” debate does not provide an accurate picture of the relationship between Fintech innovators and banks. Let us make it clear, banks are the cornerstone on which our economies rest, they are the ways in which most Fintech companies operate, and they will not disappear in the near, even distant future.

Ahamed & Mallick (2019) emphasized that creating an essentially different way of seeing and focusing on the sector. Technology startups look at this landscape of financial services and, using the rationality of the internet, see poor customer service as a margin to introduce huge efficiencies. This logic has been applied to other sectors, such as music and telecommunications, which have also been transformed by new technologies and the internet. What a traditional bank can see as a threat in the digital age, its competitors can interpret as an opportunity.

Wu & Duan (2019) stated that many researchers also lists those segments that are still the blue ocean today, including credit ratings, real estate websites, and capital market transactions.

Regulatory environment

Frost et al. (2019) noted that the regulation of the Malaysian fintech industry is mainly related to financing and equity crowdfunding.

Gnan &Masciandaro (2018) found that Bank Negara Malaysia, which is also the country’s central bank, first released the fintech governing sandbox framework in 2016, which aims to create a friendly development setting for fintech and promote the advancement of Malaysia’s financial industry.

Hamza & Jedidia (2020) found that according to a 2016 report by Ernst & Young that explores fintech compliance and the regulatory environment, generally speaking, the role of the regulatory sandbox is to relax or even exempt existing private regulatory entities on a pilot basis.

Phan, Narayan, Rahman & Hutabarat (2019) realized that companies incorporated into the framework which have an advantage when it comes to personal and corporate customers. Of course, not all companies can become pilot units. The conditions to be met include, but are not limited to:

There are products, services or solutions that can genuinely be called innovations that can increase the convenience, competence, safety factor and value of services for finance.

Mester (2019) stated that prove that the company has adequately and correctly assessed the effectiveness, functionality, and associated risks of the product, service, or solution

Have the resources needed to conduct sandbox testing to mitigate and control the risks and losses associated with the products, services, and solutions provided by the company
Have a realistic business plan to commercialize their products, services or solutions in Malaysia after exiting the sandbox framework

Nguyen (2016) found that participating in the regulatory sandbox project can help companies acquire customers who would want to give money to a company that has not been approved or recognized by the regulator?” Adrian Yap, CEO of Money Match, a fintech startup in Malaysia, said in an interview. Money Match was approved by the National Bank of Malaysia in mid-2017 and is one of four companies that have incorporate in the regulatory sandbox framework to date.

Ozili (2018) realized that the fields of remittance and currency exchange have also open. And some big players in the market have also started to look for cooperation with us. It is beneficial to join the sandbox.”

Mavrakana&Psillaki (2019) found that the National Bank of Malaysia has also established a FinTech Empowerment Organization, whose website shows that the organization is “mainly responsible for formulating.They also help improving regulatory strategies to increase the penetration of innovative technologies in Malaysia’s financial services industry.

Nabilou (2019) stated that in 2015, Malaysia issued regulations regulating equity crowd funding activities, becoming the first country in Southeast Asia to promulgate relevant laws. Equity crowd funding refers to private companies selling part of their shares to investors.

Borroni& Rossi (2019) found that according to a 2016 Invest Smart equity crowd funding report (Invest Smart is a project under the Malaysian Securities Commission’s Investor Protection Initiative), new regulations issued in 2015 include:

The number of investors investing in a single company must not exceed 5,000 Malaysian ringgits (8381.5 Yuan)
Investors enjoy a 6-day cooling-off period during which all investments can be withdraw by investor
The total amount of investors participating in equity crowd funding within 12 months must not exceed 50,000 ringgits (83815 Yuan)

Hartmann & Smets (2018) stated that the result is a wave of Fintech companies seeking to optimize particular segments of the financial value chain (be it in international transfers, loans or the payment process) and offering their specialized services to other companies and banks via API. A company that wanted to support musicians could, for example, do it through a technology firm like Kickstarter to provide loans, and another Currency Cloud type to make the payment. The success of these participants is due in part to their ability to focus on a very specific niche in the sector, rather than trying to compete at all levels. Banks, on the other hand, have always tried to take ownership of all aspects of the range of financial services, and this is where they find themselves struggling, as alternative participants offer more sophisticated services to clients within a specific niche.

Hakenes & Schliephake (2019) noted that despite their differences, Both Fintech participants and banks have a lot to gain by participating together. Fintech entities can benefit from the long history of banking operations and the base that banks offer. They are a vital part of the puzzle, as banks provide the financial instruments that Fintech companies offer packaged in different ways, while focusing on one specific use at a time. Banks can simultaneously gain value in new entrants, already either seeking to partner, or acquiring their advanced technology offerings. Using API capabilities provided in this way can help banks expand their services internationally, lower their development costs, and discover new modes of revenue without having to invest and create new structures. Fintech growth and pressure to open up access to financial data has been warned by the entire sector as the government continues to support Fintech entities and the development of the United Kingdom as the most groundbreaking financial hub. Not surprisingly, plans have recently been announced to create a consolidated and open API approach for banks. The government has pledged to launch a call for data on the best way to provide an open standard for APIs in the British banking sector and to ask whether further openness of data in banking could benefit consumers.

Kim, Park & Song (2016) found that the beginning of this process has been to talk about the products offered by banks, the next step is to know what Fintech companies are really interested in: fully opening transaction data from within banks. However, banks continue to be very cautious before giving external participants access to this type of data, and it will take many conversations before such a gesture becomes reality. These may not have been the breakthroughs we were initially hoping for when we started hearing about the open standard, but at least it’s a very good start. We have already seen how taking care of the API economy can endow the sector with a good dose of innovation, and with greater support, it will undoubtedly continue to produce new opportunities for both banks and alternative participants who are coming. The faith that the British government is showing that these effective newcomers will take the sector forward and into the twenty-first century further demonstrates that the alternative participants have done a wonderful job of showing their value to the sector.

Mavrakana&Psillaki (2019) researched that considering Malaysia’s demographic structure-more than half are Muslims, Islamic finance (financial transactions by Islamic regulations) also occupies an essential position in the country, with the considerable growth potential of finance.

Junejo, Shah & Bachani (2019) noted that for the past two years, Malaysia has become the leader in the fintech market, placing itself as the gateway for Chinese technology titans to the global market. Private investments in Malaysia fintech companies got $562 million in 2018, more than twice the investment recorded in 2017 ($246.3 million) and five times more than in 2016 ($ 135.6 million).

Currently, there are about 570 financial technology startups in Malaysia, as well as test settings and numerous industry-focused accelerators. The development of this trade is mostly due to the group of private investors with a position that keenly supports fintech companies. For example, the Malaysian government has established a fund of 500 million Malaysia dollars (about 64 million US dollars) for the development of the financial amenities sector for the next five years. Also, Malaysian authorities actively promote the event of an ecosystem of Fintech companies through the Foundation for Innovation and Technology (ITF).

References

Hamza, H., & Jedidia, K. B. (2020). Central Bank Digital Currency and Financial Stability in a Dual Banking System. In Impact of Financial Technology (FinTech) on Islamic Finance and Financial Stability (pp. 233-252). IGI Global.

Phan, D. H. B., Narayan, P. K., Rahman, R. E., & Hutabarat, A. R. (2019). Do financial technology firms influence bank performance?. Pacific-Basin Finance Journal, 101210.

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Ozili, P. K. (2018). Impact of digital finance on financial inclusion and stability. Borsa Istanbul Review, 18(4), 329-340.

Rupeika-Apoga, R., Zaidi, H. S., Thalassinos, E. Y., & Thalassinos, I. E. (2018). Bank stability: The Case of Nordic and non-Nordic banks in Latv

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Application of Industry 4.0 in Nestle

3D printing, Artificial Intelligence, Big Data, Cloud Computing, Industry 4.0, Internet of Things, Nestle, Szoda's Concepts

Pages:2760

Executive Summary

The concept of industry 4.0 is offering a multitude of benefits to the food industry. It is a core concept in the 21st century to know about industrial value creation. The scope is associated with security risks and sustainability solutions, yet the benefits related to the food industry are multiple. Nestle company has similar targets as any other food company has in the context of improving operational capacity and efficiency, quality assurance, and productivity.

This report entails a detailed framework of industry 4.0 and its implementation with a specific context to the food industry, Nestle. The academic research and journal’s information regarding industry 4.0 is presented in this paper to pave the way to discuss Nestle digitalization. The digital solutions in production are carried out in the form of the power of big data, diverse mechanization, and machine learning. This transformation is significant to conduct computerized operations and drive improvement in operational efficiency.

Chapter 1: Introduction

Nestle is the Swiss multinational company of food and beverages. Being the largest food company in the world, it is ranked number 33 in Forbes Global and 64 in Fortune Global 500 in 2017 as a large public company in terms of revenue and others (Ghazalian, 2012).

The company was established in 1905 by a merger of the Anglo-Swiss entity that was formed by George and Charles in 1866. This company grew enormously after World War I and then World War II. There are many corporate acquisitions after that, for instance, in 1950, Crosse and Blackwell, in 1963 Findus and 2007 Gerber (Vilkhu et al., 2008). The company has faced many criticism and boycotts for many products such as formula milk, use of child labor in the production of cocoa and bottled water promotions. Key competitors of Nestle are Danone, Unilever, Hershey and Mondelez International. The consumers of Nestle are everyday households, individuals and retailers. Its market share is 8billion Swiss francs(Rezzonico et al., 2015).

Chapter 2: Literature Review

Industry 4.0 is the Fourth Industrial Revolution. The term industry 4.0 is the smart manufacturing point and refers to the idea that all the manufacturers can connect their operations to plant (Rezzonico et al., 2015). The concept of mass production is linked to the latest technology implementation in bringing smart processes. Due to the use of more connectivity, sensors, analytics, and robotic technology, significant changes are seen in food and Beverage Companies. The investment in technology is carried out to meet customers’ expectations(Putičová, Mezera and Mejstříková, 2012).

Advances in Manufacturing Industry

Industry 4.0 is all about technical advances in the traditional sector. This revolution is about integration and virtualization with the coordination of logistics. The technical processes are significant to tackle any source of error and its elimination. Birkel et al. (2019) discussed the implications of industry 4.0 in food and the transformation of digital integration. The change in the industrial value chain is carried out to bring adaptability, efficiency, and flexibility that help fulfill customer’s needs.

Mauritian concept on Industry 4.0

Mauritius 2020-2024 policy has given attention to industry 4.0, in order to bring an effective platform of latest development(Daureeawoo, 2018). The fourth revolution implementation in Mauritius has a specific emphasis on transformation of small medium enterprises into a modern and developed framework(Maria Ferrari, 2020). The manufacturers face pressure about certain factors such as labeling, microbial impurities, and labeling. The policy in industry 4.0 tends to perform a qualitative leap and brings control of the whole value chain(Scholar, 2019). According to Deloitte University Press, lifecycle manufacturing under new technology is a complete paradigm shift (Putičová, Mezera and Mejstříková, 2012).

Gallmann (2003) mentioned that a crucial shift in industry 4.0 is based on some fundamental principles such as interoperability, real-time analytics, service orientation, virtualization, and scalability. The interoperability is a crucial element under a cyber-physical system, corporation information system, and robots(levels” & Fakun, 2020). Real-time analytics offer assistance to analyze and collect enormous amounts of data that effectively optimize, control, and monitor processes to facilitate key manufacturing processes. The scalability is an elasticity that helps to adapt to the needs of industry and scale the technical capability of the system due to technical requirements (Ghazalian, 2012).

Effectiveness of Food industry due to 4.0

Hoerlsberger (2019) discussed the significance of beverage companies and highlighted the vast distribution networks about automated data collection. The food companies integrate production equipment for a better quality of production and ensure quality. The technology brings a transformational change in the industry regarding manufacturing. The beverage sector has not yet fully exploited the benefits of technology and industry 4.0. Khramtsov (2018) provided the idea about digitalization in industry 4.0 that can revolutionize the future of the food industry.

Figure 1 Industry 4.0

Luque et al. (2017) explored the effects of industry 4.0 on product provenance. The new formulations are used in the reduction of salt, sugar, and levels of fat. The development of the digital twin approach helps manufacturers to focus on a virtual factory where there is an accurate picture of the new formulation of products according to customer demand. Mauritius 2020-2024policy framework has included integrated automation as a digital process required for the integration of elements that offers a complete production process to improve the level of productivity. The fourth revolution in manufacturing holds a central place for innovation and allows the development of dramatic changes.

Martínez-Olvera and Mora-Vargas, (2019) examined the digital innovation in 21st-century consumer products that motivate customers by providing them a point of sale solution. Birkel et al. (2019) worked on the discussion that industry 4.0 is recalling customer’s demand. This advantage allows manufacturers to turn customers into recurring people who save time and money by focusing on technology. Due to RFID technology, the industry gets involved in a quick response because customers acquire information about a product before shipping. Industry 4.0 is a significant solution to all the existing problems of customers because many websites update information and facilitate customers to get the desired increase in their products, in turn, profits (Khramtsov, 2018).

Some Technologies of Industry 4.0

Internet of Things

Industry 4.0 is commonly known as the internet of things due to its integrated technologies. This integration is related to the industrial value creation in the realm of filly intelligent, digitalized, and decentralized networking.

Figure 2 IoT

The way forward provided by industry 4.0 in manufacturing helps customers to get important information about products. The manufacturers, due to the effect of technology, maintain equipment, and determine how its replacement will occur (Martínez-Olvera and Mora-Vargas, 2019).

Cloud Computing

The cloud computing and its application on the industry have given rise to innovation through connecting manufacturers and customers, raising the volatility of the market, and creating a highly dynamic environment(Abdallah, M. 2019).

Figure 3 Cloud Computing

The policymakers in the industry continue focusing on the sustainability of the market by turning current systems in ecological, economic, and social goods. The system is a triple bottom line of sustainability(Elmroth, Leitner, Schulte & Venugopal, 2019).

Artificial Intelligence

It creates value for the industry and develops technical foundations (O’Shea, O’Callaghan, and Tobin, 2019).

Figure 4 AI

The triple bottom line of sustainability provides the idea of corporate philosophy in which profits are maximized, and awareness about social responsibility is taken into account(Haider, S. F., & Khateeb, A. M. 2018).

3D printing

The technology offers three dimensional view of pictures and structures.

Figure 5 3D Printing

The technology is being used in large manufacturing and printing firms to provide accurate picture and handling of material(Dey, N., & Tamane, S. 2018).

Big data

The big data is all about storing information under three dimensions profit, planet, people, and it is related to economic, environmental, and social elements(Kamenov, 2018).

Figure 6 Big Data

The liquidity and profitability of a company’s data is seen under financial success. The sustainability of the environment undertakes essential technical practices to reproduce goods. The social perspective defines the economic actions of societal social capital (Uthayakumar, et al. 2019).

Chapter 3: Application of Industry 4.0 in Nestle

Nestle has planned to improve its food processing and product development segment with the help of the latest research. This research is attributable to industry 4.0 by envisaging the newest product development. The company is planning to implement cost optimization and labor inputs, in accordance with industry 4.0 in its plants of Germany. The Orange Box Solution is a similar technology being implemented in the plant to meet technical transformation and to make a step forward for the factories. Nestle plant in Schwerin, Germany, is intending to build highly advanced technology to attain the level of standardization. The Nestle production systems focused on efficient plant maintenance systems to acquire a competitive level in a performance that help optimize the value of the industry. The network infrastructure is going to be aligned with market demand so that monitoring and tracking of activities become easy (Amagliani et al., 2017).

Figure 7 Implementation of industry 4.0

Nestle has also implemented automation suppliers regarding technical management. The measures are implemented to enhance the efficiency of the system; for instance, unplanned downtime is reduced by improving the overall efficiency of the equipment. The fully integrated systems with technology are providing business resource management while the company is meeting the security standards of the global level (Birkel et al., 2019). Mapp technology is implemented to allow connection with various standard functions. Mapp mechanism is a smart application to establish a functional block for the company. It offers interactive components for technology that exchange data automatically. The automation effect and integrated line production is significant to understand because software packages under machine technology are coherent as it has opened a new field for the food industry (Gallmann, 2003).

The Mapp technology is further linked to the map view interface, which is managed by automation engineers. The easy to use HMI interfaces are aligned on the networking standards and ensure optimal viewing.

Benefits of Industry 4.0 in Nestle

With the development of integrated machine learning technology, Nestle has improved data transmission and virtual reality systems. The development, verification of performance, a wide variety of food packages systems, and machinery has faced a method of improvement under technology. Nestle has focused on the internal integration of product packaging lines that have improved the machine vision process for the inspection of product packaging and assemblage (Luque et al., 2017).

Nestle’s research and development has improved product technology in areas of competence. The Konolfingen area is a basic example in this context, and it is about nutritional solutions that are documented with consumer benefits(Nalchigar & Fox, 2017). The application of enzyme technology is significant to protect from allergy prophylaxes and promote digestion. Nestle has implemented cutting edge technology for aseptic filling and conservative heat treatment. The notion of process technology is also a significant benefit that is according to hygienic design (O’Shea, O’Callaghan, and Tobin, 2019). The revolutionary interventions have been implemented in Nestle regarding the product dying process and production of the probiotic culture.Menu support and integration are managing requirements of Nestle because the non-specialist staff needs help. Technology through communication fulfills TCP standards in terms of protocols (Khramtsov, 2018). The orange box technology in Nestle was implemented to produce food supplements to meet the nutritional needs of customers. It organizes data for staff to work under a security mechanism. This autonomous solution is helpful for the standard information systems and establishes insight to improve the targets.

Drawbacks

No drawback from the cutting edge technology has been seen for the food industry and processed production, instead, this technical framework is appeared significant to ease and facilitate the complex food systems and helped manufacturers to advance their production (Putičová, Mezera and Mejstříková, 2012). Some drawbacks can be related to security, digital waste, and collection of unnecessary data that needs effort by involving the digitization and automation process.

Implications

Industry 4.0 is a crucial development idea for Nestle because its processes have scaled up the business process due to state of the art technology programs (Rezzonico et al., 2015). The specialist’s team of research, quality assurance, and production are managing the nutrition level in the factory line (Uthayakumar, et al. 2019).

Szoda’s concepts to Nestle

The case study given by Szoda discusses the significance of industry 4.0 and its implementation in the supply chain process. The application of ideas discussed by a case study on Nestle can be seen from the optimal operation process carried out in food processing. The figure below presents the core operation in Nestle by highlighting planning that relates to suppliers, manufacturers, and goes to distributors.

Figure 8 information flow

The technology in this way has proved to be safer for a factory because the highly developed processes of security and control system are aligned with the state of the art simulation network and working for the efficient operation of complicated food processing programs (Vilkhu et al., 2008).Nestle management can be seen effective with the implementation of stock management and product segment process, as seen from this figure.

Figure 9 segmentation of products

The case study elaborates on product development and design options with relation to industry 4.0 that facilitates the process of information in food processing(Gilchrist, 2020).The advanced technology in the form of increased use of technology for the industry has improved the use of automation. The ease of automotive solutions to manufacturers has provided them an open and better space to work and coordinate.

Chapter 4: Conclusion

Nestle food industry is implementing the core concepts of industry 4.0 as the fourth revolution that can enhance food processing mechanisms. The company has to deal with improved processes of foods, to maintain its nutritional needs. The implementation of advanced technology and digital methods for food and beverages is carried out through storing data, recording information, and integrating human-based problems. Integrating technology is all about making efficient production to fulfill consumer demand. Nestle gathers data about consumer demand and implements IoT concepts to manage smart solutions. Bringing 4.0 industry to the food industry is to enhance food capacity and to solve problems regarding food production and to facilitate production operations.

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Intel Corporation And Industry 4.0

Augmented Reality, Big Data Analytics, Cloud Computing, Customer Interaction Technology, Industry 4.0, Intel, IoT, Szoda's Concepts

Pages:10

Executive Summary

The realm of big data analytics is integral to bring advanced communication and technical solutions to manufacturing industries. A simple simplicity of plug and play is useful in industry 4.0 regarding automated controls to the production and infrastructure systems. The Internet of Things is changing the scope of the industry and maintaining large machines to effectively manage the supply chain. New products are optimized and customized to offer attractive insights to customers for machine operations. Intel Corporation is working under Industry 4.0 to bridge the gaps in sensors, machines, and applications of IT. Intel is partnering with Industry 4.0 to ease the communication, advance machine learning and communicate virtually with machines.

This report discusses the scope of Intel Corporation in the realm of Industry 4.0, which is a big revolution in providing advanced technology. The IT application, asset management, proprietary processes, and logistics are managed by machines. The research report provided a key literature review about the application of 4.0 concepts in the manufacturing sector which is offering customized products and services. Intel Corporation and its concepts about automotive advanced solutions are implemented based on cloud computing and IoT (Petrick& McCreary, 2020). The advantages and drawbacks of the company are discussed in the paper with the implications. It is recommended that cloud computing, digital analytics, and big data are key components that are to be used wisely to protect privacy.

Chapter 1: Introduction Intel Corporation

Digital technology and computer system manufacturers are globally working. Intel Corporation is an American multinational company, situated in Silicon Valley, California. The company designs highly valued semiconductor chips and microprocessors of the x86 series (Boles, 2019). Mostly the processors are designed for personal computers. The Intel Company is at number 46 in terms of high revenue corporations of the US, according to Fortune 500. The network interface controllers, motherboard chipsets, integrated circuits, graphic chips, flash memory, and embedded processors are some other key computing and communication devices manufactured by the company (O’Dair&Beaven, 2017). Intel Corporation was established in 1968 by Gordon Moore and Robert Noyce, who are semiconductors pioneers.

Intel is heavily investing in microprocessor designs to foster its rate of growth. It is also a dominant supplier in computing and microprocessors. The company is known for the implementation of anticompetitive and aggressive tactics to defend its market positioning. The model of the company in terms of managerial approach, expectations, and accountability is considered a remarkable approach for not only information, communication, and technology (ICT) industry but also for other industries (Yarlagadda et al., 2019). The company is operating in more than 63 countries with larger than 600 facilities and about 110,000 employees. Intel is operating in various groups such as Data Center, IoT group, Memory solution, and New Technology group.

Chapter 2: Literature review on 4.0

Industry 4.0 is a revolution in the current era of digital technology. The rapid influence of smart technologies is seen in computer manufacturing, which is bringing together robots, connected machines and smart devices (Likitswat, 2019). The generalized computer technology is considered a steady stream that is working under real-time data analytics to accomplish tasks. These technologies are increasing the automation of the industry by driving intelligent factories. With the help of real-time data analytics, the hyper agility and operational transparency are ensured, thus kick start the transformation in business (Petrick& McCreary, 2020). The IoT enabled systems in the computer manufacturing environments are successfully anticipating the transformation process so yielding the ‘systems of systems’.

Evolution of 4.0

The term ‘industry 4.0’ is a smart factory that employs digital tools to communicate and digital devices for communication and networking ((O’Dair&Beaven, 2017). This process is carried out through semi-finished products, raw materials, robots, machines, and products. The industry 4.0 is characterized by customer integration, efficient use of resources, flexibility and business partners. In the networking, manpower and robots are equally working with the scope of artificial intelligence and the sensors embed the signals in robots to increase this cooperation (Likitswat, 2019). In industry 4.0, digital technology is used to handle complex business models to run the innovation and influence the complete lifecycle of the product.

Figure 1Industry 4.0

Gilchrist (2020) discussed the production strategy employed in industry 4.0 to offer customized products and transform the industry into a more integrated network. It is a collective term to categorize the main component of Industry 4.o such as the Internet of Things, the Internet of Services, Cyber-Physical system, and Smart Factory. Petrick& McCreary (2020) discussed visual computing as a key component that works on data generation intelligence systems. The technology used for industry 4.0 is capable to solve the data problems related to smart systems and bring proactive technical improvements. Philippov et al., (2019) illustrated that industry 4.0 is composed of factory 4.0 (robots, unmanned vehicles, mobile devices, sensors, advanced nanotechnology, advanced manufacturing, 3D system), cybersecurity, data processing software, mass customization, IoT and logistics 4.0.

The industry 4.0 spread is extensive and taking into consideration different policies of the government. For instance, Mauritius policy 2020-2024 is reconsidering the agenda of the government to improve service delivery. For example, the digital industrial revolution is being implemented in different projects and policies of open source, data sharing, open data participation, and document management system (Bureau, 2018). The digital transformation policy is implemented through an agile principle, digital skill, customized capacity building, and digital inclusiveness. This will work in the country under the e-government needs-centric approach to consult businesses and tackle the challenges the Mauritius government is facing. The digital Mauritius plan is a strategic initiative by the government to acquire assistance from technological and take short, medium and long term measures (Petrick& McCreary, 2020). The industrial revolution era is categorized in smart terms under digital vison 2030 agendas where the government is focusing on associated costs and transform the public sector on priority. In Mauritius, the open data initiative is empowered through the participation of the public to offer the sharing of data through innovative technologies.

Figure 2 Manufacturing era

South Asian manufacturing sectors are considering 4.0 as a scope of digital technologies. In Africa, China and India, the application of industry 4.0 are going beyond the scope of traditional manufacturing practices (Hammarlund et al., 2014). The industrial development model is implemented in Africa to upgrade the industry in terms of location detection technologies, object tracking, advanced technical gadgets, and to handle supply chain related problems.

IoT

The Internet of Things is a commonly applicable platform about electronic components like networking, sensors, software that allow the exchange of information (Petrick& McCreary, 2020). The IoT framework is a daily applicable network that deals with big data streams and attached sensors to the internet and works as a channel for communication networking. The information analytics works efficiently based on online tools available and link it to cloud analytics. These components are Jasper, Microsoft Azure, Google Cloud, and Thingworx.

Cloud Computing

The cloud computing platforms are convenient, ubiquitous, and on-demand networking that works on configurable computing platforms. These platforms offer good interaction and reduce management efforts by sharing data with distributed systems. A common cloud computing platform is Goggle in the form of drive. Windows users use Azure (Boles, 2019). A vast variety of domains are attached in cloud computing such as healthcare, business, and manufacturing.

Big Data Analytics

The technology in big data analytics work based on rapidly generated information and fast internet speed. Big data involves a large stream of data for inferential decisions. Several domain applications employ big data technology as a big breakthrough such as healthcare, supply chain management, and manufacturing (Philippov et al., 2019). The main issue with big data technology is data security.

Customer Interaction Technology

Customer interaction with products, companies, and services is increasing within the realm of the internet and rapid technology (Bureau, 2018). The internet and technology allow the rapid solution to design products by focusing on concepts and sell online. The self-service technologies are increasingly used in hotel checkout, telephone banking, and investment trading and customer service.

Augmented Reality

The augmented reality and wearables are key technologies that have empowered customers to be proactive and efficient in all the computing capabilities. These technical applications are maximizing the awareness of real-time information and helping in decision making. In the medical field, this application of technology is seen in exercise habits, checking pulse and heart rate.

Chapter 3: Application of Industry 4.0 in Intel Corporation

The intelligence factory has been proved to be of greater interest to Intel. The Intel Corporation as a manufacturer focuses on precision-tuned efficiency in all aspects. The traditional automated systems are capable of augmented efficiency in IoT in advanced analytics and data-driven materials (Yarlagadda et al., 2019). IoT in Intel is used through big data analytics to help identify potential in devices. Image analytics is used to speed up long manual tasks by segregating failure parts. The machine learning is focusing on automating and visualizing the controlled equipment performance to anticipate performance and maintenance needs. The IoT enabled efficiencies in Intel are helping to increase yields, accelerate profit and lower the average time to repair.

Intel manufacturing prowess has a long experience in manufacturing semiconductors. The company has created a digital environment to describe key manufacturing intensities under computer-based technologies. Intel is using this platform to help participants achieve an efficient operating environment to anticipate challenges in the intelligent factory journey. The digital intensity impact is significant to explore key opportunities and identify threats that are related to the subjective experience of manufacturing in digitization (Hammarlund et al., 2014). Intel has made significant progress from traditional semiconductors to digital performance, industry 4.0 and the data exchange. The IoT, cognitive computing and cloud computing in Intel are associated with productivity gains. Due to informational series, next-generation technologies are playing an integral role in boosting productivity (Bureau, 2018).

The journey of industry 4.0 is all about artificial intelligence and analytics that drive innovation and decision making power. The transformative opportunities, in this form, are creating the potential for the industry. For example, Intel is expected to create more than $3.7 trillion in value due to advanced automotive and global manufacturing (Gilchrist, 2020). The company believes that it is still in initial adoption stages with only 30% of companies are actively deploying the IoT solutions. The industrial influence of the Internet of Things is a kind of cloud-connected platform that has generated data-driven technology. The greater automated machine performance and the smart factory is working on hyper agility principles under the data transformation business. Intel has also a rich legacy to work with global manufacturers of the industry to acquire high-level workload consolidation.

Benefits technology to Intel Corporation

Intel Corporation is implementing all the advanced automation and computing technologies to its products under digital intensity. At Hannover Messe, the company is implementing artificial technologies and edge computing that are useful for leading manufacturers to get an idea about Industry 4.0. The concept of industry 4.0 with a new ecosystem is taking into account Alibaba Cloud, ABB Electrification, Amazon Web services, GE digital, Microsoft and Hewlett Packard Enterprise. These companies are driving in the industry at a faster pace. The use of technology for Intel is useful in the form of improved efficiency. The business utilizing technology by Intel 5G step is working with low latency connectivity.

The Intel technology-powered business is capable to unlock the operational tendencies and bringing safety improvements in vision, implementation of Al practices and machine to machine automation. Intel is showing industrial system next-generation software to improve scalability and flexibility for all general-purpose computing.

Drawbacks for Intel Corporation

Intel Corporation is shaping the future of data, the cloud-centered approach is enhancing the efficiency of billions of devices, smartphones, PCs and virtual reality systems. There are some drawbacks to this implementation of technology. For example, data sharing and big data streams through different networking and channels have a high risk of security. The security and data breach are key issues that digital organizations are also facing. Privacy is no more guaranteed, once advanced technology is implemented to the devices and PCs. For Intel, machine to machine process can face some limitations (Hammarlund et al., 2014). The programmable solutions and advancement in data centers for memory technology can also face issues regarding performance since these techniques have to handle a big stream of data. The industry 4.0 has a great potential for the new businesses and manufacturers but data deluge can be daunting.

Implications

Industry 4.0 and manufacturing 4.0 are used together to translate the significance of large scale manufacturing companies. The technology and advanced automotive systems are integral to enhance the focus of the company and add value to the tasks. Intel is looking forward in this way to bring transparency in work and communication because cloud information is expanding base of Intel services and more in sync is occurring.

Szoda’s Concepts

The concepts elaborated in the Szoda case study about industry 4.0 describe the importance of business models employed IoT. Supply chain concepts are formulated by the implementation of the digital framework (Gilchrist, 2020). The examples about the fourth industrial revolution are given through supply chain practices in the industry, i.e. a fully automated company when applies the digital industrial revolution, mass personalization allows a controlled operating process to ensure optimum operation.

Industry 4.0 implementation in Intel can be seen from its value chain processes that are highly integrated and automated advanced technology is applied to the semiconductors manufacturing (Szozda, 2017). It can be seen from the figure below

Figure 3 Product and Information Flow

The planning in Intel moves to manufacturers and suppliers then distributors and retailers. The flow of information is continuous from the first step to customers while product flow is streamlined.

The flow of information in the healthcare segment can be seen from the figure.

Figure 4 Information and Product segments

It is similarly applied in Intel where distribution channel selection is involved in managing stock.

Chapter 4: Conclusion & Recommendation

Intel Corporation is a leading technology company that deals in manufacturing semiconductors and hardware for personal computers. The fourth industrial revolution, industry 4.0 is a leading change in the field of industry, computing, and technology that has increased the linkage between global companies through digital connections. The information communication and technology is implemented at advanced levels in Intel Corporation that digital intensity is considered a key platform for integration. Industry 4.0 is critical to discuss due to its key features since it is applicable to supply chain management aspects. Intel is operating in a new world of technology, where IoT and cloud computing is implemented in a digital framework to provide ease of operation. The production of material and machines are used to meet the needs of individuals. Intel Company is bridging the gap by the digital transformation sector and uncovering the key skills gap. According to the manufacturing institute, the Intel is supporting digital manufacturing transformation by understanding the key modern programming in software and getting the idea of digital dexterity.

References

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Bureau, C. (2018). Final Digital Government Transformation Strategy. Republic Of Mauritius. https://doi.org/http://mtci.govmu.org/English/Documents/2018/Launching%20Digital%20Transformation%20Strategy%20191218/Final%20Digital%20Government%20Transformation%20Strategy%202018%20-%202022.pdf

Gilchrist, A. (2020). Industry 4.0. Springer, 1-12. Retrieved 25 February 2020, from.

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Petrick, D., & McCreary, D. (2020). Industry 4.0 Demands the Co-Evolution of Workers and Manufacturing Operations. Intel, 2-7. https://doi.org/https://newsroom.intel.com/wp-content/uploads/sites/11/2018/04/abstract-intel-manufacturing-research.pdf

Philippov, I., Melik-Adamyan, A., &Sukhomlinov, V. (2019). Cloud Deployment of Network Functions. INFORMACIONNYE TEHNOLOGII, 25(4), 223-228. https://doi.org/10.17587/it.25.223-228

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