Even the simplest use of technology can dramatically improve your business' productivity and efficiency. Arguably, the greatest benefit of information systems is their ability to give users the information they need to carry out tasks efficiently.
Importance of information systems
IT systems can produce:
- custom data to help with a specific task or decision-making
- custom format [eg list, chart, etc] which can be tailored to the user's need
- real-time data, particularly useful where fast action is needed [eg mechanical fault]
- archived data, particularly useful for reports, analysis and business planning
Other advantages of information systems
Technology systems can also benefit a business by enabling:
- operational efficiencies
- cost reductions
- supply of information to decision-makers
- better customer service
- continuous availability of the systems
- growth in communication capabilities and methods
To maximise the benefits of your IT system, you have to fully utilise all its features and functions. For example, you can:
- Use instant messaging, emails, voice and video calls, and even chatbot technology to improve communication with customers and suppliers. This could save you time, money and effort, allowing you to react quickly to new work.
- Integrate various IT systems to reduce administrative costs. For example, you can link your online e-commerce shop front with stock control and accounting systems to streamline your processes. See how to integrate your back-office systems.
- Use labelling products with unique numbers and scannable barcodes to boost your efficiency, and improve your stock control and supply chain management.
- Use different solutions, such as customer relationship management systems or mobile technology, to improve levels of customer service. These may help you record, organise and plan contact with customers, access customer details on the go and view customer interactions.
It is important to weigh up benefits of new IT systems against the costs and potential challenges. One way to ensure that your new system delivers value is to align IT with your business strategy.
Generally, the application of computer information systems in a business helps to manage operations, interact with customers and suppliers to compete with other business firms and organisations. This motivates more companies to learn about information systems [IS] and to utilise it for an added business advantage. Below are some of the key benefits that information systems can offer:
Importance of Information Systems for Businesses
1. Store and Analyse Information
Most information systems function as delivery vehicles for data stored in databases. Databases support the operations and management aspects of a business. With a database, the collected data is stored and organised. Examples of databases include employee records and product catalogues. When it comes to analysing collections of stored data, data warehouses are built by information systems from a number of data sources to analyse the data. These archival data are mined for relevant information to develop and launch new products, reach out to potential customers as well as to serve the existing customers with accuracy and efficiency.
2. Simplify Business Processes
The integration of information systems in a business enables easier management of certain business processes so as to save on time and labour. For instance, buyers can have a seamless shopping experience at an online retailer as they can select a particular product display based on best-selling items, price range and customer ratings. With the help of information systems, these products are neatly organised which enhances the shopping experience. Besides that, business managers can utilise information systems for inventory management. That way, they can determine the inventory needed, reorder with their suppliers in addition to track and receive shipments in a timely and systematic manner.
3. Facilitate Decision-Making
In terms of decision-making, information systems such as group decision support systems [GDSS], video conferencing and Internet-based networks assist in connecting business owners and stakeholders regardless of location. As a sub-category of information systems, management information systems [MIS] also aid in the decision-making process by providing relevant, accurate and complete information. Basically, MIS is created to present an overview of the situation or to highlight a missing piece of information. MIS features such as self-checking and cross-checking can reduce errors. Enterprises that use management information systems ensure that all decision-makers can work from the same set of data together and make their decisions based on identical information. For business owners who want to track performance to see if it is aligned with present business goals, it is good to explore all the features of management information systems to know where the business stands among competitors in the same marketplace.
4. Access to Full Data Control
Companies can easily access a pool of data collected and control with full autonomy for business purposes. As information systems store a large amount of private data and facilitate thousands of business transactions on these data every day, a business must have a robust security system that secures the information systems against external threats. If not careful, company and customer data will be misused by unauthorised third-parties. Hence, companies and organisations should consider hiring graduates of information system course programmes, especially those who possess a masters in information systems or other postgraduate levels.
Understanding the complexities of information systems and how to utilise it can significantly benefit organisations and enterprises in their business operations. At INTI International University & Colleges, we offer a Master in Information Systems [MIS] course programme in collaboration with SAS Institute to equip our students with in-depth technical knowledge and technology in the context of the global economy. Enrol with us today!