All organisations invest in information systems, it is essential in order to allow organisations to compete, it gives them an opportunity to gain a competitive advantage. It also improves organisations’ connections with customers, and business partners.
Organisations purchase information systems as I.S carries many roles in organisations including; operational efficiency, new products, services and business models, customer and supplier intimacy, improved decision making, competitive advantage and survival.
These roles are very important in organisations as improved efficiency can result in higher profitability and better use of resources. IS can enable firms to create new products, services, and business models and a business model includes how a company produces, delivers, and sells its products and services. Also, it helps to develop strong ties and loyalty with customers and suppliers. It is also important as improved decision making comes from real-time data, to the right people. Furthermore, IS can provide many competitive advantages, such as the ability to charge less for a superior product, better performance, and better response to suppliers and customers.
Overall, purchasing I.S for organisations is actually essential for survival as sometimes an investment in an IS is simply out of necessity, this can arise from needing to keep up with competitors, or due to new EU regulations.