The importance of a good Information System should never be underestimated within a business or a company, especially in 2018. How data is stored internally, transferred internally, and understood within all departments, is essential to the company’s success. Often times, I speak with passionate business owners who are not aware of the importance of their business information, being managed within a designated system.
Today, I want to help educate those on the TOP TEN REASONS of investing in a good system:
- To Control The Creation and Growth of Records. (The amount of paper in our offices continue to escalate; an effective Information System addresses both creation control and records retention to stabilize the growth of records)
- To Reduce Operating Costs. (Recordkeeping requires administrative dollars, space in offices, and staffing to maintain an organized filing system. It costs considerably less per linear foot to store inactive records in an Information System.)
- To Improve Efficiency and Productivity. (Time spent searching for missing or misfiled records is non-productive; a good Information System helps any organization upgrade its recordkeeping systems so that information retrieval is enhanced.)
- To Assimilate New Records Management Technologies. (Investments in newInformation Systems can be financial, business, inventory, customer relationship, supply chain, human resource, etc… they can help analyze manual recordkeeping, for automation to be applied.)
- To Ensure Regulatory Compliance. (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.)
- To Minimize Litigation Risks. (Business organizations implement management Information Systems and programs in order to reduce the risks associated with litigation and potential penalties, especially government agencies.)
- 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; PLAN to protect records.)
- To Support Better Management Decision Making. (A good Information System can help ensure that managers and executives have the information they need WHEN they need it; 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 manually based system.)
- To Preserve the Corporate Memory. (This is 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.)
- 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.)
These are some of the best reasons to establish a good Information System within a business. A good Information System will only reap the benefits if the companies gain insight to better align strategies and identify critical relationships and gaps along company dimensions of people, processes, culture, and infrastructure.
A good Information System provides a framework for companies to evaluate themselves relative to 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.
Stephanie Foor, SAP and Business Consultant