Information systems offer a set of capabilities that can be exploited to achieve business results. Drawing on these capabilities by implementing systems that suit specific business needs enables a firm to respond to the demands of its environment. The principal capabilities of information systems are:
1. Fast and accurate data processing, with large-capacity storage and rapid communication between sites.
2. Instantaneous access to information.
3. Means of coordination (brings parts of an organization, or several collaborating organizations, together in a common effort).
4. Boundary spanning (systems through which an organization receives intelligence about its environment and provides computerized information for its customers, suppliers, and the public at large).
5. Support for decision making.
6. Supporting organizational memory and learning (means by which knowledge from the past exerts influence on present organizational activities. Increasingly, elements of the organizational memory are contained in the software and in the data and knowledge bases of the corporate information systems).
7. Routinizing organizational practice.
8. Differentiation of products and services.
9. Modeling (a simplified representation of a real object or phenomenon that helps to understand or develop the modelled object).
10. Automation (replacing human labor, for example, with information systems).
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