Why is information management important?

People and organizations are involved in many business functions such as:

• Customers place product orders;
• Employees take product orders;
• Products are shipped to customers;
• Vendors provide products;
• Companies send requests for quotes or proposals to companies;
• Employees report time and expenses on projects; and

Organizations and people are involved with contracts and other agreements.

If every application captures and stores people and organization data, then there is a lot of redundant processing. This increases the information management costs e.g.

• There is cost associated with synchronizing data between management information systems;
• There are additional data quality issues and costs as different systems may capture data using different rules;
• There are additional data movement costs as it is necessary to load data warehouses from multi sources and to sort out which data is the correct version and the most accurate version.