In older days the data used to be stored in paper files which used to get loaded and stuffed by a large chunk of data in an unorganized manner, In some of the under developed nations, the old method of paper work and data saving is still being used ! So if instead of using large no. of papers and files, if Inventory management tool like softwares are used, what could be the benefits of it? Note: Environmental benefits could also be counted in benefits
I don’t quite understand your question. Didn’t you already give the answer in your post?
At some extent , you can say that there was an answer in the question! 
But I need more opinions regarding it! Thanks 
I think data storage using a software is much more beneficial than by using paper. Think that you have an office with small space. If you had to store data by paper, you will need extra space to store all your files and paper. But if you have one computer, you can store data which will be equal to not hundreds but thousands of files of paper. and if you want to analyze data, if you had it in paper, you wil have to type it in to a analyzing software manually. but if you had it in a software, you simple have to copy paste it and you ready to go!
If you live in an area where power outages can be a problem, then relying totally on electronic storage methods is unwise. We suffer quite frequent power cuts, especially in stormy weather. The “modern” supermarket has to close its doors immediately, because its computerised checkout system is off-line. The “old fashioned” corner shop, which uses a pencil and paper and an old mechanical till, is still open for business. There’s a place for electronic systems, but total dependence on them is never a good thing, in my opinion.