The Importance of a Good Information [Management] System

How good information system can help optimize your business

All companies use information to set strategies and accomplish business objectives. But how many
CEOs and CIOs would say they are satisfied that their companies get maximum value from
information? Not many. How many have a systematic plan for evolving their information capabilities
to the next level? Fewer still

Every business, program or system must address well-defined objectives, which will add value, either
directly to the bottom line or toward the achievement of the organization's goals and objectives. Good
management information objectives usually fall into one of three categories:

 Service (effective and efficient),

 Profit (or cost-avoidance, and
 Social (moral, ethical and legal) responsibility.

A good management information system will only reap the benefits if the companies gain insight to
better align strategies and identify critical relationships and gaps along four key company dimensions –
people, process, culture and infrastructure.

A good information system provides a framework for companies to evaluate themselves relative to
these dimensions. By understanding and improving alignment with these critical dimensions,
companies can maximize the value and impact of information as a strategic corporate asset to gain
competitive advantage.

The following are the most important reasons to have a good management information system:

1. To control the creation and growth of records

Despite decades of using various non-paper storage media, the amount of paper in our offices
continues to escalate. An effective records information system addresses both creation control (limits
the generation of records or copies not required to operate the business) and records retention (a
system for destroying useless records or retiring inactive records), thus stabilizing the growth of
records in all formats.

2. To reduce operating costs

Recordkeeping requires administrative dollars for filing equipment, space in offices, and staffing to
maintain an organized filing system (or to search for lost records when there is no organized system).

It costs considerably less per linear foot of records to store inactive records in a Data Records Center
versus in the office. [Multiply that by 30% to 50% of the records in an office that doesn't have a
records management program in place], and there is an opportunity to effect some cost savings in
space and equipment, and an opportunity to utilize staff more productively - just by implementing a
records management program.

3. To improve efficiency and productivity

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Time spent searching for missing or misfiled records is non-productive. A good records management
program (e.g. a document system) can help any organization upgrade its recordkeeping systems so
that information retrieval is enhanced, with corresponding improvements in office efficiency and
productivity. A well designed and operated filing system with an effective index can facilitate retrieval
and deliver information to users as quickly as they need it.

Moreover, a well managed information system acting as a corporate asset enables organizations to
objectively evaluate their use of information and accurately lay out a roadmap for improvements that
optimize business returns.

4. To assimilate new records management technologies

A good records management program provides an organization with the capability to assimilate new
technologies and take advantage of their many benefits. Investments in new computer systems
whether this is financial, business or otherwise, don't solve filing problems unless current manual
recordkeeping or bookkeeping systems are analyzed (and occasionally, overhauled) before automation
is applied.

5. To ensure regulatory compliance

In terms of recordkeeping requirements, China is a heavily regulated country. These laws can create
major compliance problems for businesses and government agencies since they can be difficult to
locate, interpret and apply. The only way an organization can be reasonably sure that it is in full
compliance with laws and regulations is by operating a good management information system which
takes responsibility for regulatory compliance, while working closely with the local authorities. Failure
to comply with laws and regulations could result in severe fines, penalties or other legal
consequences.

6. To minimize litigation risks

Business organizations implement management information systems and programs in order to reduce
the risks associated with litigation and potential penalties. This can be equally true in Government
agencies. For example, a consistently applied records management program can reduce the liabilities
associated with document disposal by providing for their systematic, routine disposal in the normal
course of business.

7. To safeguard vital information

Every organization, public or private, needs a comprehensive program for protecting its vital records
and information from catastrophe or disaster, because every organization is vulnerable to loss.
Operated as part of a good management information system, vital records programs preserve the
integrity and confidentiality of the most important records and safeguard the vital information assets
according to a "Plan" to protect the records. This is especially the case for financial information
whereby ERP (Enterprise Resource Planning) systems are being deployed in large companies.

8. To support better management decision making

In today's business environment, the manager that has the relevant data first often wins, either by
making the decision ahead of the competition, or by making a better, more informed decision. A good
management information system can help ensure that managers and executives have the information
they need when they need it.
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By implementing an enterprise-wide file organization, including indexing and retrieval capability,
managers can obtain and assemble pertinent information quickly for current decisions and future
business planning purposes. Likewise, implementing a good ERP system to take account of all the
business’ processes both financial and operational will give an organization more advantages than one
who was operating a manual based system.

9. To preserve the corporate memory

An organization's files, records and financial data contain its institutional memory, an irreplaceable
asset that is often overlooked. Every business day, you create the records, which could become
background data for future management decisions and planning.

10. To foster professionalism in running the business

A business office with files, documents and financial data askew, stacked on top of file cabinets and in
boxes everywhere, creates a poor working environment. The perceptions of customers and the public,
and "image" and "morale" of the staff, though hard to quantify in cost-benefit terms, may be among
the best reasons to establish a good management information system.

What are Business Objectives of Information Systems?

The use of information systems facilitates better decision making in the company. Using this, the
management is able to review all the present practices and norms and formulate new ones for the
future. The processes are collated, documented and presented in report formats to be reviewed by
the management. Information systems are used across all realms and functions of the business. By
means of this, the management is able to better control its people and processes and attain
organizational goals.

Why are Information Systems Important?

Information Systems (IS) have a variety of important functions, ranging from allowing businesses to
keep track of customers, products, and trends, to public health organizations keeping track of patients,
doctors, medicine, and illnesses.

What is the importance of information system?

As its name implies, an information system exists to manage information. Information is
one of the most valuable resources an organization has, so its management is crucial to
making various types decisions.

What are the importance of information systems?

Information system is crucial to collect, arrange, store, process and distribute necessary
information at the required times to the required personnel. Usually information is much
crucial for planning. It is a basic need in modern times.

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Why Are Information Systems Important in Business?

Information systems allow for business expansion and increase the competitiveness of a business. It
also allows for one to increase their knowledge of new strategies in the business world as well as keep
up with the latest trends.

Information Systems (IS) have a variety of important functions, ranging from allowing businesses to
keep track of customers, products, and trends, to public health organizations keeping records.

Information systems tabulate and record all the important processes and internal controls
of the organization. Standard operating procedures for all the processes are defined by
information.

It is a big category but in brief, Information Systems is the back bone of today's
businesses and critical part of mid-size to large businesses like banks. The
massive data and increasing transactions cannot be handled effectively without
information systems.

Information system can be defined as an arrangement of data, people, processes, communications,

and information technology which collaborate to support and improve every day running of a
business, and also helps management in problem-solving and decision-making.

Since much has been talked about, regarding the meaning and definitions of information systems, we
must not fail to recognize the important role different types of information systems have played in the
success of organizations and businesses. Companies and organizations employ different types of
information systems (IS) within (inside) their organizations in day-to-day operations as illustrated in
figure 1. below. Just as they apply different types of information systems within (inside) their
organizational operations, so do they apply different types of ISs among (outside) organizations in
their daily operations as shown in figure 2. below.

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The above two figures clearly illustrate various supports different types of information systems can provide to,
both within a single organisation, and among organisations. Information system collects, processes, stores,
analyses, and disseminates information for a particular purpose in organisations. The use of
information systems is typically linked with the computer aided applications. Every information system
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supports a specific functional area in an organisation. Examples of such systems include the following;
accounting information systems, finance information systems, production/operations management
(POM) information systems, human resources information systems, and marketing information
systems.

Information systems also help companies and organisations to gain strategic competitive advantage
over other companies and organisations. It saves cost if management is capable of adequate planning
and execution of such. It helps management in decision-making. It also helps organisations on timely
execution of projects, and risk management.

Why are information systems important?

A human rights information system is much more than just a database. Simply put, it is a set of
processes, tools and standards that allow human rights organizations to manage information
strategically, work efficiently and safely, and communicate effectively about human right problems.

Simply put, a well-performing human rights information system will help human rights NGO get the
right information, to the right audience, in the right form, and at the right time.

The scenarios below explain the importance and value of a good information system:

Information is used because it is relevant

 An NGO’s reporting is designed in such a way as to meet the requirements of its target
audiences, making it easy to find the right information.

 A communication submitted to a special rapporteur contains all the necessary facts to provide
a strong case that cannot be easily discarded by the State receiving it.

 Journalists easily find all the information they need to build a story: emotional cases studies to
help tell the story, photos and video to illustrate, simple written explanations to highlight the
human rights issues at stake.

 Donors easily find information about the organisation’s strategies and activities, about what
impact it has achieved and how.

Information is appreciated for its quality

 A human rights NGO has a verification process to check all cases that are collected, before they
are used. Its database stores information on the reliability of a source, allowing it to build its
reports using the best information it has.

 Over time, this increases the NGO’s credibility, as it acquires a reputation for producing top
quality, verified reporting. Its opponents find it increasingly difficult to refute its advocacy
claims, and more and more people appreciate it as a trustworthy source. The NGO finds
greater interest and responsiveness from donors.
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Information is easy to retrieve, internally

 An NGO may have collected hundreds or thousands of testimonies about violations, but they
are carefully organised in a database and can be easily retrieved by theme, by date, by type of
violation… or any other useful way.

 A question from a journalist requires an immediate response – with 3 or 4 mouse-clicks, the

NGO’s researchers or advocates can easily pull up the relevant information from its databases
and filing systems.

 Three years from now, an NGO decides to build a report on gender discrimination – it can
easily collect the information relevant from its information system, without having to go
through mountains of paper archives.

 An NGO needs to add a few new fields to its database? No problem, because the database was
designed from the start to be flexible and accommodate such changes. No need to start from
scratch.

 NGO litigators need to collaborate on court cases, from several office locations. They log into a
secure extranet to access all documents.

 A human rights lawyer is coming close to missing a court deadline, which could in the case
being dismissed. No problem, the NGO’s information system sends him or her an automatic
email alert, and the litigation manager can track all deadlines on the calendar of her
information system.

 A donor wants an update the impact of a legal advice program? Simple. The program manager
opens his information system and pulls out custom reports, showing the year’s interventions
organised by type, location and level of impact.

Information is accessible, externally

Visitors to an organization’s website find it easy and pleasant to browse. The sections are labeled using
precise and understandable terms.

Although the website contains hundreds of reports and press releases, the visitors can home in on the
content they are seeking, in a few clicks of the mouse: by type of violation, by date, by topic, by
country.

The visitors of an NGO website can sign up for email alerts, which send them updates straight to their
inbox. They keep returning to the website, and the visibility of the NGO increases.

Information is safe and secure

 A laptop containing valuable data is lost or stolen? No problem, its hard drive was encrypted so
its contents are safe. Its data was also backed up to another hard drive, and is easy to restore.

 An NGO’s litigation unit loses most of its paper case files in an overnight fire. Fortunately, the
NGO has a digitization policy, and the most important documents from each file are safely
scanned and backed up. The unit can continue its work unaffected.

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