Information Technology For Retailing - Essay Example

Reasons why information systems are important to businesses today information systems have gained a critical role in business leading to a number of operational advantages. Khurana (2010: 4) argues that one of the reasons why information system is important to businesses is their role in data and organizational management. This involves activities such as “capture of data, storage of data, processing of data, distribution of information, and presentation of information,” activities that are very important to businesses (Khurana, 2010, p. 4). The competitive nature of the corporate world has for instance led to increased efforts to track and retain customers.

Similarly, analysis of data and subsequent communication of the results facilitates managerial ‘decision-making’ processes. Business organizations, therefore, gain managerial advantage from information systems’ scope that collects, analyzes and communicates the meaning of data for informed decision making (Khurana, 2010: 4- 6). An information system is also important to business organizations through its induced efficiency in data handling processes. Khurana (2010: 6) explains that developments in information systems facilitate efficiency in the management and communication of data for better responses.

Application of modern computerised drives for example facilitates fast and accurate analysis of even large volumes of data. Similarly, computer networking facilitates instant communication towards more efficient and effective management. An information system is also important to business organizations because it facilitates the achievement of communication objectives. Business organizations, being composed of different types of people and operations to be coordinated, rely heavily on the effectiveness of communication for success.

Managerial processes such as communication of instructions and reliance on observed data for decision making, therefore, depends on the ability of communication processes to be effective. Positive features of information systems that guarantee timely delivery of data, precision and completeness of data as well as the ability to evaluate and classify data by relevance to different stakeholders, therefore, allows businesses to properly meet their communication needs (Khurana, 2010:7). How businesses employ information systems to benefit their organization's application of information systems to benefit business organizations can be understood through strategies towards achieving the benefits of the information systems.

An efficient approach to employing an effective information system begins from a properly laid down plan for a ‘user-oriented’ system. This is then followed by the recruitment of qualified personnel to implement the system. Further, proper management and design that links information systems, as well as protection of the entire system, facilitates benefits of information system. The established system is then managed and monitored against its operational plan. This strategy explains how a business can use information systems for business advantage because it ensures proper management of information systems towards efficiencies and effectiveness of data management (Winter et al, 2010: 277, 278).

ConclusionInformation systems are therefore important to businesses because they facilitate the application of data in business management, increase efficiency, and effectiveness in data management and facilitate communication processes in businesses. In order to ensure such benefits, businesses apply a strategic project management approach to ensure effectively implemented information systems.