The Importance of Information Systems

         Information Systems is the back bone of today's businesses and critical part of mid-size to large businesses like banks. The massive data and increasing volumes of data needs organized storing and fast and effective processing for variety of purposes from decision making to risk management, from transaction processing to state-the art products. The large-scale businesses are globally distributed across the world which needs stable and reliable infrastructure and network administration and the applications which can run and handle simultaneous, real time and fast processing. The availability of technology has enabled the businesses to offer variety of services which has made Information Technology as part of the businesses today. What seems to be a simple online banking transaction for instance, involves web-based programs which run on a one platform and access the data in another platform like mainframe and tho make there should be network communication and systems which can communicate to each other, available 24 by 7. The more businesses grow the more dependent they become of Information Systems.

          Information Systems are the foundation for conducting business today. In many industries, survival and even existence without extensive use of IT is inconceivable, and IT plays a critical role in increasing productivity. Although information technology has become more of a commodity, when coupled with complementary changes in organization and management, it can provide the foundation for new products, services, and ways of conducting business that 

provide firms with a strategic advantage.

          An understanding of the effective and responsible use and  management of information systems and technologies is important for managers, business professionals, and otherknowledge workers in today’s internetworked enterprises.Information systems play a vital role in the e-businessand e-commerce operations, enterprise collaboration and management, and strategic success of businesses thatmust operate in an internetworked global environment.Thus, the field of information systems has become a majorfunctional area of business administration.

        Until recently, information itself was not considered an important asset for the firm in developing countries whereas the management process was considered a face-to-face, personal art and not a global communication process. Today, however, it is understood that Information Systems are essential for managers because most organizations need it to survive and grow. Moreover, the vitality of Information Systems is greatly emphasized in most developing countries like India. Thus, many developing nations have been embarking on medium and large-scale Business Information Systems and computerization projects to leverage their developmental processses.

   


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