In
the modern era computer and information technology the importance of
information system (IS) can be judged from the following points.
a.Support
of business process and operations.
b.support
of business decision making
c.support
of strategies for competitive advantages.
1. SUPPORT OF BUSINESS PROCESS AND OPERATIONS:
The
lower level of organization consists of department head, supervisors, workers
and other technical staff. Their actual performance is communicated to the top
management using various performance report for the purpose organization use IS
to communicate such reports to the top management.
2. SUPPORT OF BUSINESS DECISION MAKING:
The
goal of any part of information system is to provide information for decision
making.
Information
system thus helps for business decision making management of this level
consists of heads of sales regions administration and engineering. These head
need timely, quick, and accurate information to control the provide such
information which enable the regional heads to function efficiently ad make
analysis of sale, expense, investory level and turn over.
3. SUPPORT OF STRATEGIES FOR COMPETITIVE ADVANTAGES:
Information
system at this level provides information to managers and those who involves in
making strategies for organization. This system provides further oriented
information about market products demand and environment changes.
Why business need information technology
Information
technology is the combination of computer and network resources to share
information within and outside the organization.
Why information technology is importance for business:
To
answer this question one must be familiar with the expending role of
information technology in present era. Information technology has become a
vital component of successful business and organization. They thus constitute
an essential field of study in business administration and management to be a
manager, entrepreneur of business professional it is important to have basic
understanding of information technology like other business function such as
finance, accounting and HRM (human resource management). Information technology
can help all kind of business to improve the efficiency and effectiveness of
their business process, managerial decision making and work group
collaboration. And thus enable an organization to gain competitive advantage in
a rapidly changing market environment. The use of information technology
support product development team, customer support process, electronic commerce
transaction or any business activity.
Internet
based technology and systems are fast becoming a necessary ingredient for
business success in today’s dynamic Global environment.
