More about Synergy effect in Management Information System
For the better performance of the companies, there must be a good rapport between all the employees. The corporate departments, employees and corporate partners must maintain a good connection.
The development of new synergistic relationship leads to new innovations. Systems like management information system and information technology systems help to open and sustain an effective collaboration among the employees. The synergy effect makes the employees feel more responsible and thereby increase the productivity of the company.
Definitions
MIS or Management Information System (used for risk asssesment) is a system that accumulates data from a various information systems. This collected information is then transformed into useful form. By making full use of this raw data, the mangers make wise decisions that help the company to increase its productivity. Synergy effect illustrates how the productivity of the organization can be improved by motivating the individuals or by empowering them in traditional ways. This helps the individuals to be more creative in their ideas. As a whole, the main focus of the synergy effect is to improve the income of the organizations.
Effects
Applying the right information technology systems helps to overcome the traditional communication barriers among the employees and the corporate departments. In the past, the employees were not able to interact with the supervisors or head of the departments. But now to increase the overall productivity of the organization, they are utilizing the information technology systems to a maximum. However, the benefits of the synergy effect are far greater than the organizations think. The synergy effect mainly depends on the co-operation and willingness of the employees. The employees must get out of their shells and put their maximum effort for the betterment of the company.
Significance
In the current business market, not all the companies come to the forefront. More often than not, organizations that implement perfect information technology systems win the battle. Innovative ideas also play their part in the success of the company. The speed and quality of the innovation is directly connected to the synergy effect. The effect also relies heavily on the effective collaboration among the stake holders.
Tax benefits with synergy effect
There are many tax benefits related to the synergy effect. The effect brings the two firms together and this helps to reduce the hefty amount of tax to a great extent. The companies can gain huge benefits when they work together and cannot gain much when they work individually. The synergy also helps to reduce the cost of production of the company and thereby reducing the tax.
There are several applications for the information technology system and they are used in corporate field, medical field and marketing etc. The synergy effect is most beneficial to companies in the corporate field. Implementing the right kind of information technology system helps you in all ways. It can do wonders for your company. This also helps to attract more customers. Customer relationship is the primary concern of many firms and the synergy effect solves all your issues. Consider all these points while you are in search of an information technology system and get yourself an efficient one.
References
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