Why Business Need Information Systems

11 Mar

Many businesses today do not make use of internet which is very important in this day. Upgrading the computer information system is not an option in this technology-driven era, it is essential. The follow are reasons why businesses need to use information systems.

Operational Excellence:
In order for a business to achieve high levels of profitability, they need to improve the efficiency of their operations. Information systems is a tool that is used in order to achieve high levels of efficiency and productivity in business operations.

New Products, Services and Business Models:
Information systems can be used to create new products and services and also an entirely new business model. A business model describes how a company produces, delivers and how they sell a product or service to create wealth.

Customer/Supplier Intimacy:
When a business provides a good product or service customers tend to return and purchase more frequently which raises revenue and profits. The more a business engages with its suppliers, the better the supplier can provide vital inputs which can lower costs.

Improved Decision-Making:
Many managers who operation in an information bank may never have the right information at the right time to make an informed decision. This can raise costs and lose customers. However, information systems allow the managers to use real-time data from the marketplace when making decision.

Competitive Advantage:
When a firm achieved one or more of these business objectives (operational excellence, new products, services and business models, customer/supplier intimacy and improved decision-making), they may have a competitive advantage. By performing better than competitors, charging less for superior goods and responding to customers and suppliers, higher sales and profits can be made.

Day To Day Survival:
Businesses must invest in information systems and technology as they are essential to doing business. This necessity is caused by the industry level changes and firms need to use information systems and technology in order to provide the capability to respond to these.

Information systems enables companies to react, respond, cater, store, retrieve, disseminate and control their new valuable asset that is information. In the future, a good information system in a business will no longer be an option, it will become a compulsory in determining success.



One Response to “Why Business Need Information Systems”

  1. sad112759089 March 12, 2013 at 8:21 am #

    Good Blog, by the looks of it Information Systems is very vital for a business!!

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