what roles do information system play in Business ? And how technology has changed the way people do business nowadays ?
Information systems, are the foundation for conducting a business today. In many industries, survival and even existence is difficult without extensive use of information technology. IT plays a very critical role in the increasing in productivity of any business.
There are some of the reasons why information systems are so important for business today:
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1. Operational excellence:
- In order to achieve higher profitability, business improves the efficiency of their operations.
- Information systems, are the important tools available to the managers for achieving higher levels of productivity, and efficiency in business operations.
- Wal-Mart that uses a RetailLink system, as soon as a a customer purchase an item, the supplier is monitoring the item, knows to ship a replacement to the shelf. It is digitally links its suppliers to every one of Wal-Mart’s stores.
2. New products,services,and business models:
- To create new services and products, the Information system, is a major tool for firms.
- It is also useful in an entirely new business models.
- A business model, that describes how a company produces,sells and delivers the product or services to create the wealth.
3. Customer/supplier intimacy:
- The customers generally respond by returning and purchasing more,when a business serves its customers well. Resulting, which raises in the revenue and the profits.
- The more a business engage its suppliers, the better the suppliers can provide the vital inputs.
4. Improved decision making:
- For making decision, the Information technology or Information system, that made it possible for the managers to use the real time data from the market place.
- Many managers, who operates in an information bank, to make an informed decision, has never having the right information at the right time.
- These poor outcomes that raises the costs and lose of customers.
- Example: A company Verizon Corporation, that uses a Web-based digital dashboard to provide the managers with important real-time information on network performance, customer complains. To the affected areas, by using this, managers who can immediately allocate the repair resources, and inform customers of repair efforts and restore service fast.
5. Competitive advantage:
- When firms achieve one or more of these business objectives (above six reasons) chances are they have already achieved a competitive advantage.
- By Doing the things better than your competitors, responding to customers and suppliers, charging less for superior products in real time all add up to and higher profits and higher sales.