Four Great Benefits an Information System Can Provide Your Business

Monday, February 26, 2018

Four Great Benefits an Information System Can Provide Your Business

Businesses have to face a lot of challenges. This includes competition, market fluctuations and a very fickle public. Staying in the black can be exceedingly difficult for companies of all sizes. This is why 70 percent of businesses fail within the first decade.

One thing you should not ignore that can help you keep your profit margins healthy is your company’s data. Data relevant to revenue, sales, products, customers and more is essential to making the right decisions to keep your company profitable for the long term. However, to have the ability to truly harness the power of that data, you need to first make an investment into an information system. There are many great benefits to integrating a quality information system into your business. Below are just a few.

It Can Allow You to Go Paperless

In certain ways, the traditional office as we knew it for many decades was an organizational nightmare. Records had to be printed or typed out on paper, and all that paper had to be stored in bulky filing cabinets. Finding a record was a laborious and time consuming task. If you couldn’t find the record you wanted after it was filed away, it may as well have been lost for all eternity. Let’s not ignore the impact on the environment all this paper creates either. An office worker on average uses a whopping 10,000 sheets of paper every single year.
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A proper information system, on the other hand, can remove the need for paper records entirely. Instead, you’ll create a system of digital records. You’ll be able to control this system of records with the software provided by the vendor, and you’ll be able to find the exact record you want within seconds. This will greatly increase efficiency. It will also have the side effect of making your office greener as well.

It Can Help You Plot Strategy

Another benefit of using an information system to record and store data is that data can later be analyzed to help you plot both short term and long term strategy. This can be done through the use of special software that provides an executive dashboard. Such a dashboard can provide you with the ability to crunch the numbers and forecast sales, revenue and other trends. The best part is that it is conveniently all consolidated onto one page.

It Slashes Costs

Along with saying goodbye to paper records, you’ll also say goodbye to a portion of your operating costs. Administrative expenses do not come cheap for a business of any size. However, an information system will remove the need for record keeping and many other kinds of administrative work. Instead, all of that work will be automated by the software.

You won’t have to staff as many people to handle the lesser workload of administrative work that will be left thanks to the improved efficiency of the digital information system. That can certainly add up. A filing cabinet costs about $25,000 in work hours to fill with paper records.

It Helps to Eliminate Human Error

Another benefit of using a digital information system to record, store and analyze data is that it can help to remove the possibility of human error. For businesses, these errors can certainly be costly. For example, clerical errors cost the healthcare industry $17 billion a year.

However, it is human nature to occasionally make mistakes. This is certainly the case for data entry clerks who used to have to enter data into a computer system by hand before the introduction of more advanced information systems. Removing the possibility of creating those errors can save you a lot of trouble.

While records used to have to exist as paper documents that had to be physically stored, those days are now over. With a powerful information system, you can increase efficiency, slash costs, remove human error and strategize for the future. It really is a powerful tool for your business to wield.

By  Kevin Faber Embed

Kevin Faber is the CEO of Silver Summit Capital. He graduated from UC Davis with a B.A. in Business/Managerial Economics. In his free time, Kevin is usually watching basketball or kicking back and reading a good book.


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