Difficulty: Hard

Average Score: 48%

What is an economic advantage of new information systems in an organization?

Rationale

Improved employee access to company data.

New information systems streamline the flow of information, making it easier for employees to access relevant data quickly. This enhanced accessibility not only boosts productivity but also supports better decision-making, leading to improved organizational efficiency.

A (Fewer employee frustrations) YOUR ANSWER

While new information systems may reduce certain frustrations by providing better tools and resources, this is not a direct economic advantage. Employee frustrations can stem from various factors, including workplace culture and management practices, which are not inherently resolved by implementing new systems.

B (Fewer marketing expenses) YOUR ANSWER

The introduction of new information systems may not directly correlate with reduced marketing expenses. In fact, organizations might invest more in data analytics and targeted marketing strategies, potentially increasing costs while aiming for higher returns rather than reducing overall expenses.

C (Improved employee access to company data) CORRECT

This choice highlights a significant economic advantage of new information systems, as they enhance the ability of employees to retrieve and utilize company data efficiently. This accessibility fosters quicker response times and informed decision-making, ultimately driving productivity and cost savings for the organization.

D (Less need for research and development) YOUR ANSWER

New information systems do not inherently reduce the need for research and development; rather, they can facilitate these processes by providing data and insights that inform innovation. R&D continues to be crucial for long-term growth and maintaining competitive advantage, regardless of the presence of new systems.

Conclusion

The economic advantages of new information systems primarily revolve around enhancing employee access to vital company data, which leads to improved efficiency and decision-making. While other options may present benefits, they do not directly translate to economic advantages in the same way that improved data access does, underscoring the critical role of information systems in modern organizations.

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