Advantages Of A Reliable Information System

Information, in a broad sense, is structured, processed and organised information designed for the benefit of humans. It gives context to already existing data and allows individuals to make informed decisions. For instance, a particular customer’s sale in a particular restaurant is data- this becomes data when the company is able to identify which is the most popular or less popular dish. Therefore, information systems are used to help businesses that process information and supply information on different aspects of the company. Some examples are HR management and personnel management. They use information to set goals, target certain groups and make decisions.

An important aspect of the development of information systems is the ability to extract the most relevant information from the available data and put it into a meaningful form. Humans, however, are poor decision makers. We are not good at sorting out facts and making decisions from a set of facts. In an information system, the system is designed to aid humans so that they can make informed decisions and take actions. For instance, some information systems can help a human task team find the best solution to a problem by presenting the facts in a logical order and helping them build an argument against each other.

Another advantage of information systems is that they allow people to share and access information across geographical boundaries, and among different types of people. This has been especially important in the financial sector where it is necessary to explain financial statements to people from different countries. Similarly, information systems have made it possible for people in other industries such as entertainment and advertising to communicate and get information from one another.

One of the main disadvantages of information systems is that they are often vulnerable to outside influences. It is hard to control what people know or how people decide when they are presented with facts. Human beings are prone to emotional interpretation and they can come up with their own version of events. This makes it very hard to create and maintain a consistent information system and so it is very vulnerable to outside influences.

Another disadvantage of information systems is that they cannot adapt to sudden changes that are caused by regulations. The bureaucracy tends to form information and policies in the same way no matter what the circumstances. As time goes on, it becomes difficult to justify these policies and it is harder for people to understand why they were created in the first place. If, for instance, a new piece of legislation makes it compulsory for all companies to use Automatic Transfer Machine or ATMs, there will be a huge resistance from people who do not use such machines and from business people who may want to continue using their manual cash registers.

Finally, the advantages of a reliable information system are not unlimited. In a highly competitive and uncertain economy, information systems can become a major drag on efficiency and productivity. They are often inefficient and slow in processing large amounts of data that requires quick analysis. They can also make it difficult to work out what exactly is happening in a business at any given time.