An information system is crucial to the success of a business. Itemized below are five benefits of operating an information system in a business.
<h3>What are the benefits of an Information System?</h3>
Information systems are important because:
- They help to increase and enhance operational efficiencies such as accounting, sales, inventory, and HR operations.
- They help to minimize costs. As the business makes more and more informed decisions, its costs will drop.
- It enhances customer service. Information about customers helps the business to tailor its services to the requirements of each customer.
- Information system helps the decision-makers in the business to make better and more informed decisions.
- Information systems help to ensure business continuity.
<h3>What are the requirements for creating an information system?
</h3>
An information system requires the following:
- Hardware for the computer workstation and addendums
- Software
- A network communication amongst the computers and hardware
- a map of the company's processes and the people responsible for such processes
- A procedural manual.
- Existing data from the business.
For the barber's shop, for example, some of the components of the information system he must put in place are:
A workstation that collects information about:
- Clients
- Details of Sales
- Expenses
- Compliance dates and records etc.
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