Advantages of Computerisation

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Summary

Computerizing the activities of a business organization has multiple advantages. Firstly, it speeds up processing data by using the high speed of computers. Secondly, computerized data is highly accurate as the programs check and control the data. Thirdly, modern computers are flexible and can be used for various purposes, such as online processing and multiprogramming. Fourthly, business organizations can choose the configuration that suits their processing requirements. Fifthly, computers have a large storage capacity for data. Sixthly, they can provide management information for control and decision making. Seventhly, computers have lifted the manual system’s heavy data processing constraint, opening up new avenues for planning, control, and data experimentation. Eighthly, computers can store volumes of data and retrieve the desired information quickly. Ninthly, computers facilitate the establishment of databases, integrating data records and reducing data redundancy. Tenthly, the use of computers for data processing has reduced paper handling. Eleventhly, while the initial investment for installing a computer is high, it substantially reduces the cost of each transaction. Twelfthly, computers facilitate the preparation of various types of reports required by organizational executives for decision making and control. Thirteenthly, the use of computers reduces office space requirements. Lastly, computers reduce the number of persons required for performing various organizational activities and can perform computations with a high speed and accuracy.

Table of Content

The main advantages of computerizing the activities of business organization are as follows: Advantages: 1. Speed: Computerisation helps in processing the data placed in several data files in no time. This is possible due to the high speed of computers for processing data and CPU of the computer works at the speed of electricity which is the highest ever attainable speed. 2. Accuracy: The data processed by the computer are highly accurate. The programs written on the system checks and controls data before and during processing.

It detects invalid data and ensures high degree of accuracy and reliability of output reports. 3. Flexibility: The modern digital computers can be used for a variety of purposes. E. g. online processing, multiprogramming etc. 4. Choice of Configuration: Wide ranges of peripherals are available for many computer systems, which allow business organization to select those which most suit its processing requirements. 5. Storage capacity: Large volumes of data can be conveniently stored, accessed and altered.

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6. Management information: They can be used to provide useful information of management for control and decision making. 7. Data Processing: Computer has lifted the heavy data processing constraint with the manual system and has opened up new avenues for planning, control and data experimentation. 8. Volume: Computers can store volumes of data and can retrieve the desired information quickly. This is very useful in the areas like insurance, bank accounts etc where large number of documents is handled every day. . Database: Computer facilities the establishment of database. Such a database integrates data records and reduces data redundancy. 10. Reduction in paper work: The use of computers for data processing has helped the management of business organizations to cope with increasing problem of paper handling. The computers have speeded up the process and have eliminated the paper needs through the storage of data in elaborately constructed data bases and files.

11. Reduced cost: Though the initial investment for installing a computer is high, but it substantially reduces the cost of each of its transaction. Cost reduction occurs due to processing of huge data and record keeping. 12. Facilitates report preparation: Computer facilitates the preparation of various types of reports required by organizational executives for the purpose of decision making and control. 13. Reduce the space requirements: The use of computer for office activities reduces the requirements of office space which therwise is required. 14. Reduces the manpower requirement: The number of persons required for performing various organizational activities will be reduced by using a computer system. 15. Increased ability to perform computations: Computers perform computations with a very high speed. Diligence: Being a machine, it does not suffer from boredom, tiredness or lack of concentration, even if millions of computations are to be performed by a computer. It performs the calculations with same accuracy and speed.

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