What is the importance of information systems in business?


Quick Answer

Information systems are important as they help ensure regulatory compliance, support better management decision making, assimilate new records management technologies and minimize litigation risks. For any business to remain relevant in a competitive market, it must embrace the use of modern information systems as they provide a cheap and clear way to stay in touch with clients and partners.

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Full Answer

More reasons why a business should invest in information systems

Safeguard information: strong information systems are able to help in the preservation of vital business information. Poorly stored records or data may easily be stolen, lost to natural disasters or corrupted, and that is why good information systems should be used.

Foster professionalism: a business that does not neatly organize its files or records is likely to lose more clients. In order to avoid such things, the use of information systems should be considered. Clients are likely to be attracted to a business entity simply because of its professional presentation.

Improve efficiency and productivity: good information systems are able to automate certain activities such as transactions and security surveillance. This ultimately results in efficiency and more productivity for a business.

Save costs: effective information systems eliminate the need for more manpower and this ultimately cuts down on certain costs that may have otherwise been incurred. It also helps to achieve better time management and accurate record keeping.

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