Monday, January 30, 2012

Benefits of Management Information System for Business Development (1)

Current business era is an era where information flow is very vital role than the flow of goods. As great as any of a businessman and monopolize the flow of goods, it does not mean anything if he does not have accurate, current, easily accessible and controllable in the mastering its distribution.

Therefore it is one of the company assets of modern business is highly valuable information system that has a high response rate and focus on its users from all aspects.

Exactly how much importance and benefit of management information system for a business? Information systems are built well and correctly, among others, can increase productivity, reduce the stock of material production, eliminating activities that do not have the benefit (value added), improve service and customer satisfaction, coordinating every part in the enterprise and improve the quality of management policies.

While in general the benefits of management information systems can be categorized as tangible benefits and intangible benefits.

Tangible benefits
An information system is built and maintained properly will provide tangible benefits could be seen that in fact achieved its movement through the income and expenses incurred by the company.

Indicators of success / benefits that have an impact on revenue enhancement is the increased sales in existing markets and expansion into new markets.

A good information system can be used not only for the storage of electronic data alone but must be able to support the analysis required by management.

So with the support of good information system can be obtained then the information is accurate, reliable, current and easily accessible on the condition of the company's sales.

With the report presented by the rapid and can be accessed at any time that the decisions taken can be faster and precise on the existing market dynamics.

In terms of cost reduction can be done on reducing the amount of factual analysis of the human resources involved in the business, reducing operational costs such as supplies and overhead, the reduction of goods / material in warehouse stock, reduction of maintenance costs and providing equipment that is not too expensive

Examples of reduction of the number of human resources is in the process of recording financial transactions. If previously in the accounting process should be managed by five person with the implementation of the good accounting information system is done by one person enough.

This is due to the Accounting Information System which is integrated so any bookkeeping process can be processed directly from each of the relevant sections without having to go through the process of refilling the data.

Stacking material supply problems during the production is often burden of the company assets, with the implementation of supply chain management module in information systems developed greatly help solve the problem.

With the support of supply chain management then the Stacking stocks of material production can be reduced to a minimum. Where the company simply ordered to suppliers only when the inventory reaches the minimum limit.

Next post: intangible benefits of management information system

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