What are the implications for management of each of the following trends?
Reduction in cost of hardware with time
o Businesses benefit from rapid processing by providing better service at a reduced cost.
o For example, an automated teller machine (ATM) system in a bank can process customer withdrawals, deposits, and transfers faster and less expensively than a human teller because it uses computer hardware.
Reduction in size of hardware with time
o Finally, capacity is important in information systems, and computers provide the capacity to handle large amounts of data.
o Businesses benefit from this capability by being able to process volumes of data easily.
o For example, a sales analysis system in the marketing department of a business can examine data about thousands of sales because it uses computer hardware.
o The results of the analysis help managers draw conclusions about sales trends.
o A computer can handle these large amounts of data more easily than a human.
Increase in power of hardware with time
o Accuracy is also important in information systems, and computers ensure that the results of processing are correct by not making mistakes as people do.
o Without accurate processing, a business's costs would be greater and its information less reliable.
o For example, a point-of-sale (POS) system in a supermarket is more accurate than a human clerk in recording the prices of items purchased by a customer because it uses computers.
o Thus, the system reduces the cost of selling a product at an incorrect price.
o A POS system also keeps an accurate count of stock because of its use of computer hardware, and therefore the system provides better information about inventory.
o You sometimes hear about computer errors, but usually these result from mistakes made by humans, not by computers.
All these benefits gained from the use of computer hardware in informa
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