Information is defined by Merriam Webster’s dictionary as “the capacity to understand, analyze, or receive information.” Information can be considered the resolution of uncertainty; however, it answers the primary question of “what a thing is” and therefore defines both the nature and essence of its attributes. The meaning of information has varying definitions in many different contexts. In business, information is used to improve the internal management control over processes, products, and services while in the social sciences it is used to describe the relationships that exist among individuals, groups, organizations and society as a whole.
The primary purpose of information systems is to manage the human resources of any business. Therefore, every information system must be able to capture and transmit all human resource related data in a secure manner and with minimal cost. Information technology has played a key role in developing these systems, as it has enabled business processes to be automated. Today, a wide variety of information technologies have been developed. For example, computer systems, web applications and data management are among the most popular information technologies. Web applications refers to the software that helps manage information technology networks while data management deals with the storage, retrieval and maintenance of data.
Information technology has enabled business processes to become more efficient and thereby increasing organizational productivity, but at the same time increasing costs. It has also increased operational costs by decreasing the number of human errors that occur in daily business functions. Since the advent of information systems, business processes have become more accurate and effective, but this accuracy has come at a cost. Updating business information systems is an ongoing effort, but this effort has many advantages and benefits to the organization. These include improved decision making, improved quality of performance and increased profitability.