Importance of Computer in Management

by Pallab Dutta; Updated September 26, 2017
Man on cell phone with laptop

The use of computers and Information Technology (IT)-based systems in mainstream businesses has redefined workplace practices, operational metrics and business models. Top management and key business executives have been able to leverage the various capabilities of computer-based systems and productivity software technologies to get a better handle on business operations, channelize employee productivity and address strategic goals. The importance of computers in management cannot be overstated.

Planning

man in office using computer

In order to be competitive, mega corporations, large-workforce organizations and even small and medium businesses need to do long range corporate planning in a systematic manner. Such organization development initiatives encompass human resources development, finance and budget allocation, procurement and supply chain, sales and marketing, research and development. Automated business processes, advanced computer systems and allied software applications provide companies with reports, tools and practices to address strategic objectives and the techniques and methods to achieve organizational goals.

Communication

Mature businessman sitting  outside cafe using laptop

Computer networks connected over an intranet-based system or Web-based environment can communicate with one another. In modern businesses, business owners and enterprise decision makers need employees to communicate instantly with each other, collaborate and share files, information and relevant documents quickly in order to execute work-related tasks and pursuits. Use of e-mail systems, instant messaging tools and more recently social networking applications has also enhanced swifter communication with business partners, customers, suppliers and other key external stakeholders.

Transactions Management

Organizations and businesses perform thousands of transactions at varied customer and business partner –facing interfaces. Purchase managers, inventory system professionals and accounts and financial personnel need to keep track of invoices, purchase orders, payment gateways on organization websites and all transactions at the operational level. Computer systems integrate varied transaction processes and activities and facilitate real-time tracking of transactions. IT applications speed the process of transaction activities and help in calculations, generation of accurate summaries and reports.

Decision Making

man in office on the telephone

In contemporary businesses, gigabytes and masses of data and information is generated on a daily basis. Computers, IT systems and allied software programs help companies to classify, arrange, systematize and analyze information. Use of CRM solutions, Enterprise Resource Planning (ERP) systems Management Information Systems (MIS) and database systems enable companies to operationally manage business processes and functional areas. Market intelligence, sales reports and customer insights generated from such systems aid business managers, top management and project heads in important decision making processes.

Improve Productivity

a young caucasian man sits working at his computer and on the phone in his home office

One of the primary purposes of deploying large-scale computer systems, software, networking and IT tools is to gain productivity on all levels in an organization. All departments, manufacturing and production facilities and offshore centers should be able to leverage the capabilities and of modern IT systems and technologies and function more effectively and efficiently. Used strategically, computers streamline employee workflows, operational activities and functional processes, ensure better control in business management and impact the bottom-line.

About the Author

Based out of the metropolitan Washington D.C. area, Pallab Dutta has written on business, technology and management issues since 1994. He has freelanced for “The Wall Street Journal," “The Economic Times” and “The Times of India." Dutta holds a Bachelor of Science in economics from Bombay University and a Diploma in modern information systems from IIT Bombay.

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