Question

Discuss the differences between internal and external users of information and their needs and demands on an information system. Historically, which type of user has the firm catered to most?

Requirement: DO NOT need to answer the question, only need explain why external users are catered to more than internal users.

Answer 1

The internal users of information are within the organization and it is generally the employees and management of the company and purpose of giving information to internal users is related to their day-to day task, to improve the productivity and efficiency of the company, increase participation of employees, higher quality of services and products and cost reduction etc. Therefore sometime it is informal in nature and company put less effort on internal users of information. While external users of information in information system are the people outside the organization like consumers, investors, regulatory bodies etc. They are also large in number than the internal users of information, therefore it need to be more formal and some set standard should be followed. For that reason historically, external users are catered to more than internal users by the organizations.