Question

2. Describe tangible business value benefits information systems bring to an organization.

Answer 1

Tangible benefits of information systems are:

1. Real-time information: A robust information system helps a business to create and retrieve real-time data and information which is again usable by the business or the customer. This type of information can be a benefit to manufacturing or e-commerce system which use the data to create customer or process value.

2. Required format: The required formats can be achieved in a robust information system hence it can be produced on request of the vendor, customer or internal stakeholder of the firm. The information available can be used to generate a performance curve for a sales guy to track his record. This graph can again be used by the sales manager to analyze the performance of the team. The overall information representation can help in improving and hence creating more profits.

3. Required information: The large chunk of data created by the information system can be used to create the information which will generate knowledge and application of knowledge over time will create the wisdom of the firm. This will create the improvement value for the firm and will help in gaining leadership.