Until the 1990s, before the widespread adoption of personal computers and the Internet, companies were using information systems to manage data processing and record-keeping activities associated with business transactions like maintaining the general ledger (book keeping), payroll, billing, inventory management, etc. The focus was mainly on maintaining files and databases related to day-to-day operations. Communications, both internal and external, relied on paper, telephone, faxes, and other analog media. Today, companies have eliminated the inaccuracy of paper-based tracking by implementing ERP systems. 63 percent of companies used their ERP software to eliminate inefficiencies in processes such as order tracking.
Drawbacks of offline information system
Many reasons you have to eliminate the offline information system like:-
1. Access Time
One of the primary disadvantages of traditional file systems is the time it takes to access data. It can take minutes if not hours to locate a few files in a large paper filing system. Electronic databases allow for almost instantaneous access to information. Faster data access time can increase the productivity of managers, analysts, accountants and other workers who use data on a regular basis.
2. Editing and Communication
Traditional file systems are cumbersome in that they do not allow users to easily edit files or send information to others. Paper files often cannot be edited directly, forcing users to make new copies to update old files. To distribute data on paper files, users must mail, fax or scan the data. Databases allow users to edit information fields directly, and because information is stored digitally, it is already in a form that can be easily transmitted.
3.Order of data
Data can get out of order in traditional filing systems. If someone accidentally puts a file in the wrong place, or takes a file out of a cabinet and forgets to put it back, it can lead to lost data or the creation of additional copies of files. Electronic filing systems allow users to quickly check whether information already exists somewhere in the system, which helps avoid problems like redundant files and data loss.
Importance of Online Information system in Organizations
As companies try to reduce costs, improve productivity, employers are looking to ERP systems to help them grow and remain competitive globally. Information systems have enhanced productivity for businesses.
Online information system provide key factor to reduce cost and maximize profit to achieve your organization goal.
Part of management is gathering and distributing information, and information systems can make this process more efficient by allowing managers to communicate rapidly.
How you manage your company's operations depends on the information you have. Information systems can offer more complete and more recent information, allowing you to operate your company more efficiently.
The company information system can help you make better decisions by delivering all the information you need and by modeling the results of your decisions. A decision involves choosing a course of action from several alternatives and carrying out the corresponding tasks. When you have accurate, up-to-date information, you can make the choice with confidence.
Your Company needs records of its activities for financial and regulatory purposes as well as for finding the causes of problems and taking corrective action. The information system stores documents and revision histories, communication records and operational data.