It is inconceivable that companies would operate without significant investments in systems. E-commerce companies like eBay, Google and Amazon will simply disappear without using information systems. Service industries such as finance, real estate, insurance, education, medicine, and travel will cease to operate if they are not reinforced with information systems. Similarly, retail giants like Sears and manufacturing companies like General Electric and General Motors rely on information systems to thrive and thrive.

Tall buildings with elevators, offices, and telephones were used to be the foundation of business in the 20th century, but information technology alone can determine the success or failure of a business in the 21st century. It is not possible for a company to implement corporate strategies and achieve corporate objectives without efficient use of the information system. A company decision, such as launching new products or improving market share, depends on the quality and types of information systems in the organization.

Specifically, commercial companies invest deeply in MIS to achieve six strategic business goals:

• Privacy of customers and suppliers
• operational excellence
• Competitive advantage
• Improved decision making
• New products and services and business models
• survival

Customer and supplier intimacy

Meeting millions of customers online and offline can lead to windfall profits for the business, which is why businesses invest a significant amount of time and money to improve customer intimacy. MIS and technologies greatly help companies to engage with customers.

Operational excellence

Companies continually improve the efficiency of their businesses to achieve greater profitability. MIS and technologies are among the most effective solutions available to a business to improve operations.

Competitive advantage

When a business offers superior products at low cost and responds to customers in less time, it drives higher sales and revenue for the business.

Improved decision making

Right information at the right time is required to make an informed decision. But if a company relies on best guesses, forecasts, and luck, the result will be misallocation of resources, poor response time, and over or under production of goods and services.

New products and services and business models

MIS and technologies enable companies to create new products and services, as well as new business models. A business model explains how a business produces, delivers, and sells a service or product to create wealth.

survival

Companies also invest in information technology to meet the needs of doing business. For example, the first ATMs were introduced in the New York region in 1977.