Before we start our discussion, it is important to know about the difference of “Information” & “Data”. Data refers to facts and when you filter through one or more processors so that they take on both meaning and value to a person, they become information. In business, information is just like gold. If you have timely information, you can do miracles. Due to these reasons and largely through advances in computer and communications technologies, we are living at a time that many people call the information age. One major reason our era is so named is because most working people today have jobs that are information-intensive. For example, jobs such as accountant, lawyer, and manager are all predominantly based on the handling of information. This emphasis differs from that of earlier decades, in which most jobs involved some type of physical labor applied on farms or in factories.
Now coming to reasons due to which organizations are develop information systems, Parker and Case (Parker & Charles, 1993, pp.14-20) had given numerous reasons, we will try to discuss them all in this report. These are listed below:
- Operational Efficiency.
- Functional effectiveness.
- Quality Customer Service.
- Product Creation and Enhancement.
- Altering the Basis of Competition.
- Identifying and Exploiting Business Opportunities.
- Client Lock-in / Competitor Lock-Out.
- Operational Efficiency:
Operational Efficiency refers to doing routine tasks better, faster, or cheaper. Large organizations had staff a prohibitive number of clerks, at an astronomical cost, to prepare documents such as bills and paychecks. Also, even using all these additional people probably would not match the speed at which such tasks could be completed by using computer technology.
Another prime area for operational efficiency is the office. For instance, document preparation, one of most important task during a day at........
