What is it about information systems that makes them so important in the modern world?
Why are companies spending so much money on information systems and technology?
Information systems are critical to running a firm on a daily basis and accomplishing long-term strategic goals.
However, without significant investments in IT, entire sectors of the economy would be unsustainable.
Also, Organizations’ abilities to employ information technology and implement business plans and achieve corporate goals are becoming increasingly intertwined.
Business firms, in particular, make significant investments in information systems in order to meet six major business objectives:
1. Operational excellence: is a constant goal for businesses looking to increase profitability.
One of the most essential tools companies have at their disposal for increasing corporate efficiency and productivity is information technology.
2. New business models: With the help of information systems and technologies, a company’s business model explains how it creates wealth through manufacturing, delivering, and selling a product or service.
3. Enhanced Customer experience: When a company gets to know its consumers well and provides them with the service they desire, customers are more likely to return and make repeat purchases.
4. Better Decision Making: Companies can now use real-time market information while making decisions. A lack of information led to poor decisions, which increased costs and cost the company consumers.
5. Competitive Advantage: If you do things better than your competitors, charge less for certain product offerings, or communicate with customers in a timely manner, you will outperform your competition in terms of sales and profits.
6. Long-term Sustainability: Information systems and technology are critical for most companies’ survival in the long term.
Source: Crenov8
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