Importance of Information System

Information system is a set of interrelated component that collect, process, store, and disseminate information to support companies’ managerial team in decision making, coordinating, controlling, and analyzing.

It is important for companies that use an up-to-date information system to gather, assimilate, and evaluate internal as well as external information to gain competitive advantage over other firms.

A sophisticated computer information system enables companies to monitor employees, to keep managers and employees informed, to coordinate activities among divisions, or even to sell their products to customers via the internet. Moreover, in the era of information technology like this, information has become valuable organizational asset just like human resources and inventories.

Furthermore, a good information system can facilitate direct communication between firm and suppliers, manufacturers, dealers, and marketers. Together, they can create a value chain as though they were in one organization. For example, when there is an customer orders, the orders would automatically appeared on the site of suppliers. This approach can achieve "just-in-time".

However, there are also unwelcome threats in information system. Today, companies are threaten by hackers, competitors, thieves, spies, hired agents, or even from existing employees. Therefore, firms have taken measures to safeguard their system such as installing complex computer firewalls to detect hackers or purchasing expensive and advance encryption software. Also, the special units are created to manage information system in organizations.

In conclusion, information system enables companies to react, respond, cater, store, retrieve, disseminate, and control their new valuable asset that is information. Nowadays, a good information system within a company will be no longer an option; it will become a compulsory in determining success.


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