Why are information systems so essential for running and managing business today

January 31, 2019 Business

Why are information systems so essential for running and managing business today?
Information systems are a ground work for conducting business today. Today mostly business rely on Information systems. Information systems have become fundamental online, interactive tools deeply involved in minute to minute operations and decision making of large organizations. Information systems can be viewed as a factor of production. In many industries, existence and capability to accomplish strategic business goals are difficult without widespread usage of information technology.
List and describes the six reasons why information system are so important for business today?
1) Operational Excellence – businesses can continuously develop their proficiency of their tasks in order to attain maximum profitability. They can do this by continuously having the correct quantity of stock in store so customers can always get want they want.
2) New product services and business models – I.S systems play a chief role for businesses in making new products and services. New business models can be generated and these can define how a company produce, create and sell their products.
3) Building a strong relationship with Customer and Supplier:
the better services a company provides its consumers with more likely they are too come back to them and as result the more they will buy off the supplier therefore creating a good relationship with both parties.
4) Improved decision making – I.S systems make it conceivable for managers to use real time data when making a decision to therefore make better decisions and not have to waste time looking for information.
5) Competitive advantage – if companies achieve any of these 6 reasons to use I.S they will normally create a competitive advantage over their competitors.
6) Day to Day survival – business invest in these systems to make their jobs as easy as possible. an example is Citibank introduced the first ATM machine to make it easier for customers to access their money and to cut down queues in their banks.

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