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What Are the Benefits of Enterprise Informatization Management? What Is Its Significance?

Published on: 2019-05-14

  What are the benefits of enterprise informatized management? What is its significance? Enterprise management informatization means that enterprises make extensive use of modern information technology, develop information resources, introduce advanced technologies and management concepts into management processes, realize management automation, improve enterprise management efficiency and levels, thereby promoting management modernization, transforming operating mechanisms, establishing modern enterprise systems, effectively reducing costs, accelerating technological progress, and enhancing core competitiveness.


Enterprise Informatized Management


  Benefits of enterprise informatized management:

  1. Changing the way information is obtained
  Under traditional methods, raw data is obtained through employees' visual observation, manual counting, or instrument measurement. Under informatized conditions, automatic sensing equipment can be used to obtain the required data or information fully automatically. For example, shelves equipped with weight-sensing devices can automatically measure inventory quantities, and automatic monitoring devices can replace on-duty personnel. The use of automatic sensing equipment has the advantages of high automation, high accuracy, uninterrupted 24-hour operation, real-time data acquisition, and immunity to harsh environments, providing the basis for enterprises to implement more effective internal control.
  2. Changing the storage method
  Storage media change from paper to disks or optical discs. Compared with paper media, magnetic or optical media have the characteristics of high storage density and erasability without traces. Their impact on internal control is two-sided. Large storage density allows enterprises to store data and information resources centrally, making them easier to protect, but once damaged or stolen, enterprises will suffer greater losses. The fact that erasing leaves no traces increases the possibility of data tampering, which requires strengthened internal control.
  3. Improving processing efficiency
  In an informatized environment, with the help of the computer's high-speed processing capability, the speed of information processing can be greatly accelerated and efficiency can be greatly improved. However, this also has a two-sided impact on internal control. On the one hand, improved information processing efficiency is conducive to enterprises implementing more complex and effective control measures and methods, thereby improving the effect and efficiency of internal control. On the other hand, with the help of high-speed information processing capabilities, employees or management can also improve their ability to commit fraud. For example, they may use random number generation programs to falsify the amounts of receivables or inventory, or use report preparation programs to quickly compile multiple false financial statements. This again requires enterprises to strengthen internal control.
  4. Changing the transmission method
  Information transmission in an informatized environment changes from manual methods such as vouchers, reports, and telephones to the use of cables, optical fibers, radio waves, and so on to transmit information at the speed of light, with information volume far beyond that of traditional methods, providing the basis for enterprises to strengthen internal control. However, if information transmission is obstructed or damaged, it will also bring greater losses to enterprises.
  5.Improvinginformation integration

  With the support of a complete enterprise information system, enterprise leaders can, without leaving the office, have a complete picture of multinational companies spread across the world from a computer screen. With a few mouse clicks, they can close deals, move funds, and direct employees. Enterprise information systems provide the basis for enterprises to strengthen internal control, while at the same time putting forward higher requirements for internal control.


Enterprise Informatized Management


  6.Improvinginformation value
  In the information age, people's ability to use information resources has improved. People have realized that enterprise data and information resources are among the most valuable assets of an enterprise. Information is intangible, and compared with tangible assets, information theft is more concealed and harder to discover. This requires internal control to protect not only tangible assets, but also enterprise data and information assets. At the same time, effective protection measures should be adopted according to the characteristics of information.
  7. Changing work methods
  In an informatized environment, people may increasingly communicate and connect through computer networks, and direct interpersonal contact will decrease. The invisibility and anonymity of the online world will have a certain impact on people's psychology, thereby affecting the control environment.
  In short, enterprise informatizedmanagementcan help enterprises make timely, accurate, truthful, and complete statistics on business, finance, production, and sales data and generate a large number of statistical and analytical reports. It centralizes data that was dispersed under the traditional management model and improves data consistency and accuracy. In finance, it improves capital utilization; in sales, it can improve enterprise performance; in inventory, it can reduce inventory; and in customer management, it can enhance communication.
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