What is the Importance of an Efficient Information System?

As we read in Chapter 2, information systems are important in every level (occupational, managerial, and executive) of an organization. Each level has different responsibilities and decisions to make, and because of that they need different information given to them in different ways. The big question within this article is, why is a good information system so important? What should supervisors, managers, executives, etc., be looking for in an information systems to optimize service, profit, and their social reputation? Every business should have one, and this article illustrates 10 points on why it is essential:

1.   The ability to control the creation and growth of records – this is important because the amount of paper records in business continues to increase despite the increase of electronic technologies. Managers would be able to keep records that are important, and get rid of the unimportant records that are just taking up space.

2.  To Lower Operation Costs: Instead of paying employees to store and keep track of records physically in the store, it costs less to store them in a Data Records Center than it does to keep them in the office.

3. To Become more Efficient and Productive

4. Investment Opportunities in new Computer Technologies: Stores who have a financial information system may look into a business or payroll information system because they see many benefits in these technologies.

5. Compliance with Laws and Regulations: Businesses that run a  good information system has an easier time of taking responsibility to meet compliance rules and regulations so they won’t face penalties or fines.

6. Less litigation risks: Information systems make is less possible for businesses to run into litigation issues such as correct document disposal.

7. Preserves Confidentiality: Puts a safeguard on some of the most important records and information such as a company’s financial information.

8. To Help have Better Decision Making: Managers can make decisions based on past information keep in the information systems, or the information system can provide a forecast of sales, demands, profits, conditions, etc. that can help make a decision.

9. To save records: Everyday records and files are being recorded onto information systems, and that will help the business in later generations in different management levels.

10. Better Customer Interaction and Perception: An office with paperwork piled up all the way to the ceiling is not appealing to a customer. The public image of your office is very important to gain and keep customers.

http://www.blueavenueassociates.com/insight-resources/online-resource-center/insights/importance-good-information-management-system

Questions:

1. What element do you think is the most important for success in a business?

2. After reading the positive contributions of a information system, do you think it is necessary for a business to have one? What other options are there out there?

3. Can you think of any negative aspects of have an electronic system keeping records of your business?