Information Systems : Why Computerise?

Information Systems : Why Computerise?

Why Computerise An Information System ?

Most organisations use computerised information systems instead of manual systems. Computerised systems have many advantages. Three of the most important reasons for choosing to use a computerised system are :

Storage : Computerised systems can store vast amounts of data in small spaces and retrieve this data very quickly.
Processing : Computerised systems can manipulate and analyse data very quickly and accurately.
Networking : Data can be quickly and easily passed around the world electronically and shared between different companies.

This table lists some examples of how these advantages are useful to organisations.

Advantages of Computerised Information Systems
Category	Advantage	Example Use
Storage	Data stored electronically by a computer can be stored in a much smaller space than the same data would require if it was stored on paper. This makes data storage cheaper so companies can now store much more data than they would have in the past.	In the past a telephone company only stored the total cost of the calls that each customer made. Now the company can store details of each individual call that a customer makes and provide much more informative bills.
Storage	Electronically stored data can be retrieved very quickly.	A policeman following a car can extract information about the car from a database of over 20 million cars in just a few seconds.
Processing	Computers can manipulate and analyse huge quantities of data accurately at very high speeds. As a result companies can make better use of the information they store and perform some types of analysis that would not be possible with a manual system.	A supermarket can analyse the shopping habits of its customers based on their purchases. This information can then be used to send appropriate special offers to customers who are likely to be interested in them. For example people who buy dog food every week might be sent a special offer for dog biscuits.
Using a Network to Share Data	The same information can be available at many different computer terminals in many places at the same time.	You can obtain information about your bank account from any branch of the bank not just your local branch. You can take money from cash machines (ATMs) around the world.
	Information can easily be shared between different companies or different parts of the same company.	Credit reference agencies collect data about the financial status of members of the public. If you buy any goods on credit then a credit reference agency will be contacted to see if you are likely to repay the money you borrow. The agency will have collected data about you from many places such as your bank, the electoral register and any companies that you regularly pay bills to.
	Information can be transmitted electronically around the world almost instantly.	Electronic mail can be used to send important documents very quickly.

Why Not Computerise An Information System ?

Despite all of these advantages some manual information systems are still used. These systems are often kept because :

For small information systems (e.g. an address book) data can be retrieved from a manual system quickly enough and no sophisticated processing is needed.
The cost of purchasing the hardware and software required to create a computerised system together with retraining users can outweigh the advantages of a new system.
If a current manual system is working well and users are happy with it then it may be difficult to persuade users to change to a new computerised system.

GCSE ICT Companion 04 - (C) P Meakin 2004