Topic 20: why information management is important?

The following are the most important reasons to have a good management information system:
To reduce operating costs
Record keeping requires administrative dollars for filing equipment, space in offices, and staffing to maintain an organized filing system (or to search for lost records when there is no organized system).
To improve efficiency and productivity
Time spent searching for missing or misfiled records are non-productive. A good records management program (e.g. a document system) can help any organization upgrade its record keeping systems so that information retrieval is enhanced, with corresponding improvements in office efficiency and productivity. A well designed and operated filing system with an effective index can facilitate retrieval and deliver information to users as quickly as they need it.
Moreover, a well managed information system acting as a corporate asset enables organizations to objectively evaluate their use of information and accurately lay out a road map for improvements that optimize business returns.
To ensure regulatory compliance
In terms of record keeping requirements, China is a heavily regulated country. These laws can create major compliance problems for businesses and government agencies since they can be difficult to locate, interpret and apply. The only way an organization can be reasonably sure that it is in full compliance with laws and regulations is by operating a good management information system which takes responsibility for regulatory compliance, while working closely with the local authorities. Failure to comply with laws and regulations could result in severe fines, penalties or other legal consequences.
To support better management decision making
In today's business environment, the manager that has the relevant data first often wins, either by making the decision ahead of the competition, or by making a better, more informed decision. A good management information system can help ensure that managers and executives have the information they need when they need it.
By implementing an enterprise-wide file organization, including indexing and retrieval capability, managers can obtain and assemble pertinent information quickly for current decisions and future business planning purposes.  Likewise, implementing a good ERP system to take account of all the business’ processes both financial and operational will give an organization more advantages than one who was operating a manual based system.