Information Systems (IS) are essential to any organization, whether government, commercial or industrial. Thus it is believed that the purpose of IT information systems is that they should ensure returns on investments, and make IT important for competitive functioning. But researchers tend to disagree on this, who claim that the relationship between investing in IT and better business performance is only a fairy-tale.
Initially there was an amount of uncertainty about IT ability to bring additional revenues. It is argued that in spite of huge investments, IT has not brought increased productivity in industry, resulting in disbelieving the ability of IT investments to bring ROI. It is necessary to view IS, thus, in the light of this paradox.
But things are brightening up, even as online information systems have resulted in improved financial performances. Thus it is now agreed that if right IT is brought in the right method, there will be better results in business, provided business structures and workplace systems are shaped to suit the present business competition.
IS should keep away from various useless suggestions, since they do not reflect the e-business realities which are dependent on deliberate strategic factors, present in the system. Thus it is necessary to study various non-traditional models and develop strategy content. It should be noted that present day business is diverse, and IS techniques which deal with this nature are required.