Business Information System | 4 mins read

How a Business Information System Aids in Long Term Success?

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Lauren Christiansen

By Lauren Christiansen

The Benefits of Business Information Systems

Most people don't realize exactly how much data the average company collects. Frequently dubbed as the new oil, big data is the most critical resource of any enterprise. Unfortunately, only 45% of collected data is considered useful information.

55% of business data is dark data, which means there is uncertainty on how to use it. As a result, companies miss out on insights that lead to everything from higher profits to better marketing campaigns. Furthermore, poor internal data management practices weaken the supply chain and hurt collaboration. This prevents streamlined business processes that are completed on time.

When most organizations aren't sure what to do with their data, there is a problem. One solution is to invest in business technology that facilitates effective data management. These technologies are referred to as management information systems.

Information technology solves the biggest challenge that companies have- data management. Customers, vendors, and employees demand that information be accessible, organized, and safe. Information technology includes a set of tools and applications that gathers, processes, and facilitates the analysis of data. So, why do companies benefit from using this type of business technology? Read ahead to learn the top 7 advantages.

1. Information Systems Provide Access to Real-Time Data

As operations management systems integrate all data in one single location, everything is up-to-date. This facilitates good chain management across all business departments. Employees can work on different portions of a task and then input their portion into the system. The next team member from a different department can see all updates and input their portion. This access to real-time data maximizes collaboration and efficiency, which increases productivity.

  • The big data market is set to reach $103 billion by 2023
  • Poor data quality costs the U.S. economy up to $3.1 trillion per year
  • 97.2% of businesses are investing in big data and business analytics
  • 95% of companies struggle to manage their collected data

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2. Information Systems Eliminate Errors

As there is no duplicate data within a management information platform, there is less likelihood of human error. Higher quality of data leads to more valuable insights, which optimizes decision-making. When there are fewer errors in decision-making, employees can perform their jobs more effectively. This leads to a higher quality of customer service, better products, and happier customers. As a result, organizations with information systems tend to have higher profits.

3. Information Systems Improves Communication

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Employees across the supply chain can communicate with one another without writing emails or making phone calls. Business administration executives can see cash flow data, while those in Human Resources can view tax forms. While both of these processes are entirely different, all relevant data is accessible through the same system. This minimizes time spent locating information, or mismatching data between different business units. With more time, resources, and access to data, employees can collaborate on tasks and finish projects.

4. Information Systems Increase Productivity

Rather than focus on repetitive tasks, employees can work on processes that help the organization grow. Employers are happier that they can leverage talent to its highest capacity. Furthermore, teams can work together across the supply chain to finish tasks.

Greater operational effectiveness and easy access to data improve morale and efficiency. This increases productivity and optimizes project management, which provides a competitive advantage. As a result of greater productivity, customer satisfaction increases. The quality of products and services will improve, which also increases profits.

  • 53% of employees claim mobile apps increase productivity and efficiency
  • Productivity has been rising every year by 3% since 2011. Experts believe this is due to improved technology systems
  • 64% of employees trust a robot or automated system more than their manager
  • 70% of employees are disengaged at work due to repetitive tasks

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5. Information Systems Assist with Business Processes

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Systems management generates value for all sectors of an organization. Automation eliminates repetitive and meticulous tasks. This streamlines business processes and ensures employees complete their work more efficiently. As a company is only as effective as its processes, this increased efficiency is a great benefit. Organizations can complete tasks much faster than the competition and meet customer demands.

6. Information Systems Facilitate Reporting

The majority of management information platforms include a set of tools that enables quick reporting. Users can view specific data sets and create customized reports to drill down into information. With business analytics and good data visualizations, managers use these reports to optimize decision-making. This leads to better supply chain management and more accurate ways of problem-solving.

  • Develop vision and strategy on sustainability
  • Improves management systems, sets goals, and optimizes internal processes
  • Identify strengths and weaknesses
  • Attract employees and investors
  • Improves leadership capabilities

7. Information Systems Improve Data Collection

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When most organizations struggle to manage their business information, there must be tools in place to help. A business information system streamlines data gathering and analytics from start to finish.
Through the extract, transform, load process, all data is cleaned and uploaded into a centralized location. This ensures any duplicate or repetitive information is eliminated.


Data is pooled together and placed in various warehouses. These warehouses are linked together to facilitate quick and accurate business analytics. Users can then access the most relevant, real-time data so they can make the most accurate decisions.

Key Takeaways for Business Information Systems

In conclusion, here are the top benefits of business information systems -

  • A business information system provides access to real-time data and helps eliminate costly errors.
  • Business information systems improve communication across the supply chain. They also increase productivity and maximize efficiency.
  • An information system assists with business processes and minimizes inefficiencies.
  • An information system facilitates reporting to optimize decision-making. It also streamlines data collection and data management.

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