Saturday, January 1, 2011

Business value of information system

Information system helps the business organization in three1 major ways. First, it supports the business processes and operations thereby helping workers do the right thing in the right way. With the aid of computers, (a) inventory levels of every items or materials are readily available (b) status of production can be known, and (c) marketing can be more interpersonal and highly targeted.  
       Secondly, information system aids employees and managers in making decision.  Logistics people can order raw materials for these to arrive just in time when needed; production people can adjust work load and schedules to meet deadlines; and planners can deliver better forecasts. 

       Lastly, information system supports business strategies for competitive advantage. This system can further be used to devise business strategies that would use IT to develop products, services and capabilities that gives the business major advantages in the market place2.

1 Obrien, J. A. and Marakas, G. M. Management Information System 8th Ed.  McGraw-Hill Irwin, 2008, p.9
2 Ibid, p. 55