Unless a computer system can show a good value (profit) to the Business Organization, there can be no good reason for installing it. Unfortunately, it is not easy to quantify either benefits or costs absolutely and there are always mitigating circumstances which can invalidate powerful benefit or magnify cost beyond reason. However, outline below are some of the benefits of Computers in Business Organization to achieve successful startup.
1. Dealing with increased volumes of transaction
A reasonably well-prepared data processing system should allow the clerical staff to deal with a significantly greater volume of work. Input via input devices (keyboard, mouse, etc.) are quicker than via most manual systems, the computer does the arithmetic (infallibly).
2. Better working conditions for staff
Computer can work rapidly, tirelessly, obediently and almost never make mistakes. It can take over boring and routine jobs, freeing staff to concentrate on other things’.
3. Better management of information
Using flexible software in the form of database management systems (DBMS) enables management to look at stored information in files. Graphs can be plotted on revenue, costs, etc, and analyzed in different ways, shape or form.
4. Better control over costs
By identifying, through their DBMS, where costs are at variance with budgeted figures, action can be taken much more quickly than was ever possible with a manual system. The cost in question can range through stocks, overtime, overheads, postages, cash inflows and outflows, deposits and withdrawals etc.
5. Faster results
Some companies have found that month-end figures can be produced at the end of the last day of the month once a computer system is functioning where previously it was about four weeks after end of month. Any routine operation, such as producing accounts can be done more quickly and more accurately by a computer than was ever possible manually. Cash position can be reported at a touch of a button after each transaction. Under the manual system, this is possible only hours after the end of the transaction day. More rapid and reliable results can also be obtained in the design office, technical services, engineering or any department that has to crunch numbers regularly. The use of special equipment such as plotters, and graphics terminals can also help in improving information production.
