The Concept of Information as a Resource

In earlier times, the main levels of business capability and change were strategy, structure, processes and
people but in today's time another level has been added to the four that already exist. This invisible asset
works as a key resource for the organization.

In today's competitive business environment the key differentiator is the way organizations leverage the
power of information. Material resources, human resources, monetary resources can only be utilized to
the full if information is managed. Business organizations have therefore started looking at MIS beyond
just as a support function. Information is now being used to provide insights to decision-makers so that
better and informed decisions can be taken. Entire subject areas like data mining, data warehousing and
business intelligence have been developed on this premise of information as a resource. More and more
organizations are now digging into their own data to make predictions about the future. Decision-making
techniques have vastly evolved as well and rely more on analytics for support rather than just judgment
and experience as was the case in the past. Today the modern manager has the luxury of scenario
analysis, what if analysis, business dashboard, etc., to visualize the effects of his decisions on the various
simulated scenarios. Scenarios can now be built so that managers not only have a single plan of action but
multiple plans to suit multiple other likely scenarios. This has helped to reduce uncertainty and therefore
improve the bottom line.

Some important concepts need to be defined here before we move forward. Concepts like information,
management, information systems and information technology are used often to describe information
related concepts and issues used in an organization. They are defined below:
Information Management is a business and process driven concept in which the focus is on leveraging
information for using it to take decisions, on the quality of such information that is provided and the
integrity of the information. it is the scientific organization of data (by capturing storing, analyzing,
retrieving and disseminating) and information for use within an organization.
Information system it is systems based concept that focuses on transactions, events and data. It is the
systematic process involving information gathering, storing, processing, retrieving and disseminating,
which ensures repeatability of good quality information' supply within an organization.
Information technology is the broad set of technologies/technology disciplines like computer science and
engineering, telecommunication, electronics, etc., which aid in information management.

THE ROLE OF INFORMATION WITHIN AN ORGANIZATION

Information plays an important role in an organization because it guides every decision an organization
makes or expects to make. Thus, information is important in the decision-making and problem-solving
processes, and without the right information, organizations are bound to make mistakes in these key
processes.

Any business, big or small, must have a system in place to collect, process, store and share data. In the
past, these tasks required a lot of time and paperwork. Today, companies use modern technology to
streamline and automate these operations. Information systems are now playing a crucial role in data
processing and decision making. When used correctly, they can positively impact an organization's
overall performance and revenue.
The Benefits of Information Systems

Modern technology can significantly boost your company's performance and productivity. Information
systems are no exception. Organizations worldwide rely on them to research and develop new ways to
generate revenue, engage customers and streamline time-consuming tasks.

With an information system, businesses can save time and money while making smarter decisions. A
company's internal departments, such as marketing and sales, can communicate better and share
information more easily.

Since this technology is automated and uses complex algorithms, it reduces human error. Furthermore,
employees can focus on the core aspects of a business rather than spending hours collecting data, filling
out paperwork and doing manual analysis.

Thanks to modern information systems, team members can access massive amounts of data from one
platform. For example, they can gather and process information from different sources, such as
vendors, customers, warehouses and sales agents, with a few mouse clicks.

Uses and Applications

There are different types of information systems and each has a different role. Business intelligence
(BI) systems, for instance, can turn data into valuable insights.

This kind of technology allows for faster, more accurate reporting, better business decisions and more
efficient resource allocation. Another major benefit is data visualization, which enables analysts to
interpret large amounts of information, predict future events and find patterns in historical data.

Organizations can also use enterprise resource planning (ERP) software to collect, manage and analyze
data across different areas, from manufacturing to finance and accounting. This type of information
system consists of multiple applications that provide a 360-degree view of business operations.
NetSuite ERP, PeopleSoft, Odoo and Intacct are just a few examples of ERP software.

Like other information systems, ERP provides actionable insights and helps you decide on the next
steps. It also makes it easier to achieve regulatory compliance, increase data security and share
information between departments. Additionally, it helps to ensure that all of your financial records are
accurate and up-to-date.

In the long run, ERP software can reduce operational costs, improve collaboration and boost your
revenue. Nearly half of the companies that implement this system report major benefits within six
months.

At the end of the day, information systems can give you a competitive advantage and provide the data
you need to make faster, smarter business decisions. Depending on your needs, you can opt for
transaction processing systems, knowledge management systems, decision support systems and more.
When choosing one, consider your budget, industry and business size. Look for an information system
that aligns with your goals and can streamline your day-to-day operations.