In order to have a better understanding of Information Systems’ importance to organisations we have to know what is an IS and organisation. This will certainly help us understand the reasons behind it.
Information System – Data is raw facts, information is data that has been processed, and useful to human beings. System is a collection of interrelated parts that work together to achieve one or more common purposes. These three factors (Data, Information and System) are parts of Information Systems (abbreviation: IS). An information system is a set of interrelated components that collect, retrieve, process, store, and distribute information to support making decisions and control in an organisation. It is basically used to deliver information, knowledge, and digital products.
Organisation it is a formed group of people who follow a specific common goal or goals. They have a functional structure and their focus is on how entities like businesses or state authorities are used. Usually they are working on increasing market share and profits, but not only. Some examples of organisations include: corporations, governments, non-for- profit organisations, international organizations and charities.
Based on the above information we can clearly see that organisations need Information systems to increase their profits, understanding of the structure and functions of the business they are involved in. There are many other reasons as to why Information Systems are important to organisations and they include the following:
- To gain a competitive advantage within the business environment.
- To create new products and improve existing ones.
- To improve business models.
- To make right decisions.
- To improve efficiency and planning.
- For customer and supplier intimacy.
I came across a fantastic article today, and highly recommend reading it. It is about the importance of a good information management system.
Have a good weekend followers !