| The main advantages of computerizing the activities of | | | | 9. Database: Computer facilities the establishment of |
| business organization are as follows: | | | | database. Such a database integrates data records |
| Advantages: | | | | and reduces data redundancy. |
| 1. Speed: Computerisation helps in processing the data | | | | 10. Reduction in paper work: The use of computers for |
| placed in several data files in no time. This is possible | | | | data processing has helped the management of |
| due to the high speed of computers for processing | | | | business organizations to cope with increasing problem |
| data and CPU of the computer works at the speed of | | | | of paper handling. The computers have speeded up |
| electricity which is the highest ever attainable speed. | | | | the process and have eliminated the paper needs |
| 2. Accuracy: The data processed by the computer | | | | through the storage of data in elaborately constructed |
| are highly accurate. The programs written on the | | | | data bases and files. |
| system checks and controls data before and during | | | | 11. Reduced cost: Though the initial investment for |
| processing. It detects invalid data and ensures high | | | | installing a computer is high, but it substantially reduces |
| degree of accuracy and reliability of output reports. | | | | the cost of each of its transaction. Cost reduction |
| 3. Flexibility: The modern digital computers can be used | | | | occurs due to processing of huge data and record |
| for a variety of purposes. E.g. online processing, | | | | keeping. |
| multiprogramming etc. | | | | 12. Facilitates report preparation: Computer facilitates |
| 4. Choice of Configuration: Wide ranges of peripherals | | | | the preparation of various types of reports required by |
| are available for many computer systems, which allow | | | | organizational executives for the purpose of decision |
| business organization to select those which most suit | | | | making and control. |
| its processing requirements. | | | | 13. Reduce the space requirements: The use of |
| 5. Storage capacity: Large volumes of data can be | | | | computer for office activities reduces the requirements |
| conveniently stored, accessed and altered. | | | | of office space which otherwise is required. |
| 6. Management information: They can be used to | | | | 14. Reduces the manpower requirement: The number |
| provide useful information of management for control | | | | of persons required for performing various |
| and decision making. | | | | organizational activities will be reduced by using a |
| 7. Data Processing: Computer has lifted the heavy | | | | computer system. |
| data processing constraint with the manual system | | | | 15. Increased ability to perform computations: |
| and has opened up new avenues for planning, control | | | | Computers perform computations with a very high |
| and data experimentation. | | | | speed. |
| 8. Volume: Computers can store volumes of data and | | | | Diligence: Being a machine, it does not suffer from |
| can retrieve the desired information quickly. This is | | | | boredom, tiredness or lack of concentration, even if |
| very useful in the areas like insurance, bank accounts | | | | millions of computations are to be performed by a |
| etc where large number of documents is handled | | | | computer. It performs the calculations with same |
| every day. | | | | accuracy and speed. |