How can information systems affect a company’s bottom line (such as financial performance)? What are other non-financial values that information systems can add to a business?
Well obviously with slick website sales can be boosted. Example:
Ford motor Company, Chrysler Corp, Ebay, General Motors, Toyota Etc. [All have slick (kool) websites]
A website is not necessarily about being cool. That is, however, a nice side effect.
A good web site:
1) Is easy to navigate and well organized.
2) Provides the customer with the information they are looking for.
3) Is actually laid out in a way that takes you deeper into the web site.
4) Stays with the image of the company.
Of course, the ultimate goal is to sell more. But none of this answers the question.
The question is asking about non-financial values that information systems can add to a business.
--Help make people's jobs easier.
--Easier communication between different departments.
2 ideas that may get your mind going. In the end, it does all boil down to bottom line anyway. But those are not as directly related to finance as ... say...a web site that sells things.
Matt
Information systems can have a significant impact on a company's bottom line and financial performance in several ways. Here are a few examples:
1. Streamlining Operations: Information systems enable companies to automate and streamline various business processes, resulting in increased efficiency and productivity. For instance, by implementing an Enterprise Resource Planning (ERP) system, a company can integrate different departments and functions, such as sales, inventory management, and finance, allowing for better coordination and optimization of resources. This can lead to cost savings, reduced wastage, and improved operational performance, ultimately enhancing the company's financial performance.
2. Data-driven Decision Making: Information systems provide access to valuable real-time data and analytics, allowing companies to make data-driven decisions. By utilizing data analytics tools, companies can analyze market trends, customer behavior, and operational performance, enabling them to make informed decisions on pricing, product development, marketing strategies, and supply chain management, among others. These data-driven decisions can result in improved business outcomes and financial performance.
3. Enhanced Customer Relationship Management: Information systems enable companies to effectively manage their customer relationships, leading to increased customer satisfaction and loyalty. Customer Relationship Management (CRM) systems, for example, provide a centralized platform for companies to track and manage customer interactions, analyze customer data, and personalize marketing and sales efforts. This can lead to higher customer retention rates, increased sales, and improved financial performance.
In addition to financial benefits, information systems can also provide non-financial value to a business. Here are a few examples:
1. Improved Collaboration and Communication: Information systems facilitate communication and collaboration between employees, departments, and even external stakeholders. For instance, email, instant messaging, and project management tools enable seamless communication and information sharing, leading to improved teamwork and decision-making. This can enhance employee satisfaction, productivity, and overall business performance.
2. Enhanced Data Security and Risk Management: Information systems enable companies to implement robust data security measures, including firewalls, encryption, and access controls, to protect sensitive business information from unauthorized access or breaches. Additionally, information systems also allow companies to implement risk management systems to identify and mitigate potential risks and threats, such as cybersecurity risks, legal and compliance risks, and operational risks. This helps to safeguard the company's reputation, ensure regulatory compliance, and mitigate potential financial and non-financial losses.
It is important to note that the specific impact and value of information systems can vary depending on the industry, size of the company, and its specific needs and goals. Each business should assess its unique requirements and evaluate the potential benefits of different information system solutions to maximize their impact on both financial and non-financial aspects of the business.