The data-driven world has changed the way businesses interact with customers, employees, and competition. Greater access to information increases internal knowledge and allows stakeholders to make critical business choices with confidence.
Unfortunately, a small business isn't always sure how to use its business analytics to generate insights that can help increase profits and attract new customers. Data collection is meaningless without a powerful system in place to make sense of the information and present findings understandably.
Organizations that use optimized business information systems can effectively manage their data and use it to increase knowledge and pinpoint growth opportunities. Companies without quality information systems must understand how to use software to their advantage if they want to be successful.
Top Industries that Use Information Systems:
The Benefits of Information Systems
Organizations collect large quantities of data that must be sorted through, analyzed, and properly handled. A common problem is assessing how to effectively manage this process to ensure the needs of customers and suppliers are met.
While most larger businesses utilize some type of information system to help manage big data, other small to mid-sized companies have not employed the best software solutions to derive any benefits.
By utilizing an IS, organizations can collect accurate data, learn from it, make it accessible to everyone, and use those insights to optimize decision-making and systemize the supply chain. The top benefits derived from using an IS include-
1. Relevant Data
A business information system is a cloud-based database that stores all of the information related to a variety of business units, functions, clients, transactions, worker performance, and client activity. Decision-makers can use this real-time data to know which actions to take and when.
For example, a sales manager may analyze real-time sales employee performance data to see how is meeting their goals and who needs further monitoring. Team leaders no longer have to use guesswork to make choices, ensuring decisions are based entirely on statistical evidence.
2. Optimizes Communication
A business administration system ensures all relevant computer information is accessible to everyone, which they can view in a customized format. Workers can easily share data and inputs are immediately updated into the database, so everyone has access to the most accurate and relevant information.
An optimized information system minimizes the need for emails or phone calls while making it easier for everyone to communicate with different business units. It can also be used externally to correspond with customers or provide answers to important questions.
Because an IS improves internal and external communication, team members can work quickly to complete tasks, improve the quality of outcome, and streamline activities so the organization maintains a competitive edge.
3. Minimizes Human Error
Automating manual processes by utilizing an information system can help to minimize human error and ensure compliance with tax laws/regulations. Because data will not have to be replicated, workers can rest assured that the information they view is accurate and up-to-date.
An optimized management information system notifies authorized individuals of a suspicious or inaccurate transaction, so management can fix a problem before it worsens. This is especially useful when it pertains to human resource management and payroll, as incorrect payments can cost money and generate compliance problems.
As a result of using different types of information systems that minimize human error, organizations will save money, resources, optimize communication, and improve the quality of deliverables.
4. Information Security
Spreadsheets, file cabinets, and other outdated systems management methods used to store valuable information can easily be tampered with.
By having all data stored in one or more secure business intelligence databases, it's much easier to prevent theft or misplaced information. Audit trails maintain historical records for long periods and are easily accessible to regulators or other authorized individuals.
This is especially relevant for enterprise information systems or other databases that hold valuable financial/sales data. An IS with sensitive information can be programmed to only allow access to authorized individuals, which helps to protect the company and save money.
5. Streamlines Business Processes
An IS optimizes resource management by completing many repetitive processes automatically, freeing up time for employees to work on more important aspects of their jobs.
For example, a human resource information system integrates with time clock software and calculates employee pay according to specific requirements.
HR staffers no longer have to estimate overtime hours, verify timesheets, or convert hours to minutes to perform payroll. The department can then focus on more valuable activities, such as recruiting or ensuring training materials are up-to-par.
By streamlining everyday business processes, organizations can complete projects and meet goals more efficiently.
They can focus on building marketing strategies to target new customers, or strengthening the relationships they already have. Moreover, an organization can use business technology to pinpoint growth opportunities and new revenue streams rather than wasting time on repetitive tasks.
Examples of Processes Streamlined by an IS:
In conclusion, here is how a business information system assists in long term success-
- A business information system stores, collects, and handles large quantities of data that help organizations make better business decisions.
- An IS collects real-time data, which allows decision-makers to take the right actions at the right time.
- A business information system optimizes communication by giving everyone access to customized and relevant data that help them perform their jobs and share expertise.
- Automated management information systems reduce human error, which helps save an organization time, money, and resources.
- Business information systems store data in a safe and secure location to prevent sensitive information theft or misplaced documents.
- Business information systems streamline processes by allowing everyone to work together quickly to complete projects. This generates new growth opportunities and minimizes the time spent working on repetitive tasks.