Question

Over the twentieth century, the ability to process information in terms of labor units has improved by a factor in the order of 1 to 5 trillion. This improvement represents a compounded growth rate of between 30 to 35 percent per year for a century. At the turn of the twentieth century, the mechanical calculator offered a modest productivity increase but the number of workers required to maintain the accounts of a medium-sized business still remained very high. Many tasks would take a large investment in equipment and a significant number of accountants’ weeks to process. A hundred years later, the same tasks can be completed by a standard desktop computer in minutes. The challenge for management has transitioned from a simple reduction in labor requirements to leveraging the increased processing power to develop competitive, efficient, and profitable organizations.

With this example in mind, respond to the following:

Explain how information systems influence businesses to be more competitive, efficient, and profitable.

Provide at least one example for each factor.  

Answer 1

Information Systems or Information Technology today helps a business to a great extent and ensure that the profitability of a business organization increases. It helps the business understand the benefits and shortcomings of the organization and what they can do to improve the total system. I believe that organizations today have made their process more convenient because they are aware that they need to remain competitive in the market or industry or else they wont sustain because of the very high competition and that is the reason they use information systems for maintaining and handling their data related to the organization along with that the applications related to the business also manage enterprise resource planning as well so that business possess all the required information to go ahead in the industry. This makes the process efficient and profitable as well as the business process becomes convenient and simple and easy to maintain and look after.

Enterprise Resource Planning - It makes the process convenient and simple because a large business transactions and details can be maintained and managed from a single location.

Data Warehousing - It helps storage and maintenance of data and also maintaining the history of the organizations data which help the process more efficient and competitive.

Cost Effective process - The business process become simple which helps in making the process costs effective and advantageous.