Information is always seen as the lifeblood or one of the key intangible assets of any organization. It determines the effectiveness and efficacy of management. Quality information is needed by managers to harness internal resources to tap into opportunities and manage threats in the external environment regardless of the type of organization.
Information is a major raw material that must be combined with other resources to produce a want satisfying product.
Management Information system (MIS) can be defined as a system that gathers comprehensive data, organizes and summarizes it in a form valuable to functional managers with the information they need to do their work-Griffin(1990).
MIS is a computer-based information system that transforms internal and external sourced data into information needed by employees to enable them to make appropriate decisions for planning, decision making, communication, and human resource management and controlling. It helps managers to analyze the past, make decisions for the present and projection for the future.
The following are ways that management Information system can impact an organization’s performance:
Management information system changes the way that people communicate and relate with one another or their organization.
Computer-based information reduces and eliminates middle managers, thereby enabling top management to retain planning and controlling.
It gives room for access to useful information, flattens the organizational hierarchy and allows decentralization of decision making.
It helps to reduce the number of employees needed to perform business operations and the cost of production definitely.
MIS enhances the competitive position of a firm through the provision of timely, relevant, accurate, and comprehensive information.
It gives a firm the opportunity to enter into the global market through importation, exportation, joint ventures, etc.
MIS creates an opportunity for managers to monitor and measure individuals and groups performance, comparing the actual results with the performance standards.
In other words, Management Information System helps to make available accurate and timely information necessary to facilitate the decision-functions to be carried out in an effective way to the management.
It is not all businesses that require money ( or a large sum of money) to start but many people don’t realise this. This is not to say that nothing is required. But it is common to presume that a person who thinks of making money should be ready to spend a little amount of money for expenses like transport fare, telephone calls and other things that may relate to initial search for what to do.
One best way to commence when you have no money for entrepreneurship is “commission business”. By this, it means any business that involves working for an individual, or organisation for the purpose of earning commission (this is not the same as employment).
The entrepreneur that goes into commission business, applies completely his/her wealth of experience, knowledge and creative thinking to earn some commission (usually viewed as his/her “profit”). Money so earned when invested with skills, experience and creative thinking in a private business venture results in a start-up.
There are various examples of commission businesses in the world including: daily contribution business, sale of goods for large firms, marketing services on commission basis, etc.
Another way of starting a business without much money is applying directly acquired skill to business on a very minimal scale. There are individuals who have some good talents but have failed to realise it or develop it. Many businesses can be done within the confines of your home. The money earned will be in a small scale, but if saved overtime, can be applied to a startup and nurtured to a full grown business venture.
The principles guiding success in this approach include:
Attempt to grow up, do not jump up. If you grow up, you are likely to stay up. But if you jump up, you are likely to crash down.
Maintain a lifestyle focused only on enabling the growth of your business.
Always seek ways of achieving a decrease in your liabilities and an increase in your assets.
Avoid all excessive, unnecessary expenditures that cannot in any way be described as investment.
Cultivate the habit of keeping records – record of ideas and of transactions.
Set out at least an hour everyday for critical thinking.
Embrace innovation – the entrepreneurial process of creating new resources and capabilities.
While it is true that a large number of small businesses fail within the first few years of establishment, what is not true, even in any business environment, is the impression that more than 80% of them fail within the first 3 years. Certainly, there are some that survive for 4, others for 5 years and more.
Small businesses sometimes fail because of sheer negligence on the part of the owner/operator. While in some cases, it is simply as a result of some management pitfalls or environmental factors.
It is possible to avoid any failure in any small business if the owner/operator keeps these points listed below in mind:
Don’t make any attempt to build a small business meant to appeal to everyone. You must note that structuring a business to appeal to the widest possible range of customers is a good thing, but could end up creating a business that will be weak in several areas rather than strong. “As you like it, sell where you can for you are not for all markets.” -Shakespare.
Don’t start unless you are sure of the availability of the minimum cash requirements. Alternatively, you must have arranged a credit or done a proper projection of revenue and expenses concerning a reasonable period of time.
Do not fail to design a means of detecting bad credit risk early so that you can take steps to avoid credit problems ahead of time.
Don’t use pricing to scare your customers away or destabilise your business. No matter what situation your business may be facing, you must strike a balance between your firm’s need to make profit and your customers’ search for value.
Never postpone savings of the company’s earnings. Do it now; possibly set out a percentage of the earnings to be kept in the business and do it religiously.
Do not be “a- one- man- squad”. Seek advice from experienced people and professionals in your field.