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Discuss the Interrelationship Between Information Technology Innovation and Business Performance Improvement.

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Management Information System ASSIGNMENT | TOPIC | | HOMEWORK | Discuss the interrelationship between Information Technology Innovation and business performance improvement.

As we have known, the society is more and more developed, with which technology comes along. There is no doubt that humans’ living has changed since the introduction of information technology (IT). The impact of technology over daily life is ever increasing and expanding. One of important factors affected is business world. It helps in terms of marketing, management, manufacturing,... Nowadays, either small or big companies still have IT department for the advance in business, such as changing interaction with suppliers, changing customer relationships and transforming the firm.
Innovation on information technology (IT) has increased the business performance by changing the interaction between firms and suppliers. The change in information system such as electronic data interchange and purchasing system based on Internet has reduced the cost, time and other difficulties when the company exchange with suppliers. Ordering goods with supplier through electronic data system helps companies avoid paperwork which mistimes and arises some errors that can delay the production chain. A new method of working with suppliers has integrated with interorganizational system to create a greater benefit for the company. For example, the ASAP system, which is used in the hospital, lets it orders supplies automatically from the wholesellers. This system reduces the cost of data entry, about $25-30 each if it was written by hand. Besides that, when the order has been written in the database, this system has responsibility in the operation supply. It includes the designing the space of the stock, setting the inventory system based on computer, and replenishing automatically the inventory. This combination

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