What is MIS and How to Implement it in an Organisation?

The five classical functions of a manager are:

1. Planning – the direction a company takes e.g. diversifying, where to operate.

2. Organising - resources such as people, space, equipment and services.

3. Coordinating - the activities of various departments.

4. Decision-making - about the organisation, products or services made or sold, the employees, use of I.T.

5. Controlling - monitoring and supervising the activities of others.

The role of a management information system (MIS) is to provide a manager with sufficient information to make informed decisions to help him to carry out the above functions. 

To implement MIS in the organization, the below mentioned procedure can be followed.

Implementation of MIS

The choice of the system or the sub-system depends on its position in the total MIS plan, the size of the system, the user understands of the system and the complexity and its interface with other systems. The designer first develops systems independently and starts integrating them with other systems, enlarging the system scope and meeting the varying information needs.

Determining the position of the system in the MIS is easy. The real problem in the degree of structure, and formalization in the system and procedures which determine the timing and duration of development of the system. Higher the degree of structured ness and formalization, greater is the stabilization of the rules, the procedures, decision making and the understanding of the overall business activity. Here, it is observed that the user’s and the designer interaction are smooth, and each other’s need are clearly understood and respected mutually. The development becomes a methodical approach with certainty in input-process and outputs.

MIS is generally used by medium and larger scale organizations. However, small organizations are yet to understand its application. There is dire need to build up computer culture by properly disseminating information about computer applications and its benefits.

Implementation of MIS can be achieved by using any of the methods such as direct, parallel, modular or phase in.

• Direct Approach

Direct installation of the new system with immediate discontinuance of the old existing system is reffered as “cold turnkey” approach. This approach becomes useful when these factors are considered.

1. The new system does no replace the existing system.
2. Old system is regarded absolutely of no value
3. New system is compact and simple.
4. The design of the new system is inexpensive with more advantages and less risk involved.

• Parallel Approach

The selected new system is installed and operated with current system. This method is expensive because of duplicating facilities and personal to maintain both the systems. In this approach a target date must be fixed when the operations of old system cease and new one will operate on its own.

• Modular Approach


This is generally recognized as “Pilot approach”, means the implementation of a system in the Organization on a piece-meal basis.

This has few advantages / merits

1. The risk of systems failure is localized
2. The major problem can be easily identified and corrected before further implementation.
3. Operating personal can be trained before system is installed in a location.

• Phase-in-Implementation

This approach is similar to modular method but it differs because of segmentation of system, however, not the organization. It has advantages that the rate of changes in a given Organization can be totally minimized and the data processing resource can be acquired gradually over a period of time. System exhibits certain disadvantages such as limited applicability, more costs incurred to develop interface with old system and a feeling in the Organization that system is never completed.



Implementation Procedures

• Planning the Implementation

After designing the MIS it is essential that the organization should plan carefully for implementation. The planning stage should invariably include the following:

1. Identification of tasks of Implementation

Planning the implementation activities, acquisition of facilities, procedures development, generating files and forms, testing the system and evaluating and maintenance of the system.

2. Relationship establishment among the activity

Network diagram must be prepared to correlate concurrent and sequential activities.

3. Establishing of MIS

For monitoring the progress of implementation and for proper control of activities, efficient information system should be developed.



4. Acquisition of Facilities

For installation of new system or to replace current system the manager should prepare a proposal for approval from the management by considering space requirement movement of personal and location for utility outlets and controls.

5. Procedure Development

This is an important stop for implementation of the system including various activities such as evaluation selection of hardware, purchase or development of software, testing and implementation strategies.

6. Generating Files and Forms

The MIS manager should generate files and formats for storing actual date. This requires checklist data, format date storage forms and other remarks in data base.

7. Testing of the System

Test should be performed in accordance with the specifications at the implementation stage consisting of component test sub system test and total system test.
• Evaluation and maintenance of system

The performance should e evaluated in order to find out cost effectiveness and efficacy of the system with minimum errors due to designs environmental changes or services.

Software Maintenances

The proper maintenance is the enigma of the system development and it holds software industry captive lying up programming resources. There are some problems in maintenance such as regarding it as non rewarding non availability of technicians and tools no cognizance of users about maintenance problem and cost lack of standard procedures and guidelines. Most programmers feel maintenance as low level drudgery. If proper attentions is paid over a period of time eventually less maintenance is required.

Types of Maintenance

The maintenance of system are classified into corrective/adaptive/perfective. Corrective maintenance means repairing process or performance failures. Adaptive maintenance means changing the programming function whereas perfective maintenance deals with enhancing the performance or modifying the program.

Primary Activities of a Maintenance Procedure

Documentation is major part of maintenance in system development. Maintenance staff receives requests from the authorized user. Programming library should be maintained.

Reduction in Maintenance Costs

Several organizations having MIS generally go in for reducing maintenance costs and it consists of three major phases.

1. Maintenance management audit through questionnaires and interviews.
2. Software system audit.
3. Software modification.

Evaluation Methods

Evaluation of the MIS in an organization is integral part of the control processes. There are several evaluation approaches such as quality assurance review compliance of audits budget performance review computer personal productivity assessment computer performance evaluation service level monitoring user audit survey post installation review and cost benefit analysis.

Evaluation performance measurement can be classified into two classes as effectiveness and efficiency. The relationship between effectiveness and efficiency is that the format is a measure of goodness of output and the latter is a measure of the resources required to achieve the output.

Organisations can judge how successful the implementation of an MIS system has been by applying the following evaluations:

High level of use - Is it actually used? Some systems don’t become operational for reasons such as it taking too long to enter  data.

High level of user satisfaction - Do users like the systems?

Accomplishment of original objectives - Have the objectives specified in the analysis stage been achieved?

Appropriate nature of use  - Is the software being correctly used?

Has proper training been given?

Institutionalisation of the system - Has it been taken on board enthusiastically?

What is Strategic Management and what are responsibilities of a Manager to deal with it?

Strategic management is a level of managerial activity under setting goals and over Tactics. Strategic management provides overall direction to the enterprise and is closely related to the field of Organization Studies. In the field of business administration it is useful to talk about "strategic alignment" between the organization and its environment or "strategic consistency". According to Arieu (2007), "there is strategic consistency when the actions of an organization are consistent with the expectations of management, and these in turn are with the market and the context."

If am the General Manager of a production unit, I shall take many types of precautions to avoid failures in strategies. In today's highly competitive business environment, budget-oriented planning or forecast-based planning methods are insufficient for a large corporation to survive and prosper. The firm must engage in strategic planning that clearly defines objectives and assesses both the internal and external situation to formulate strategy, implement the strategy, evaluate the progress, and make adjustments as necessary to stay on track.

A simplified view of the strategic planning process is shown by the following:

The Strategic Planning Process

Mission & Objectives

Environmental Scanning

Strategy Formulation

Strategy Implementation

Evaluation & Control


Mission and Objectives

The mission statement describes the company's business vision, including the unchanging values and purpose of the firm and forward-looking visionary goals that guide the pursuit of future opportunities.
Guided by the business vision, the firm's leaders can define measurable financial and strategic objectives. Financial objectives involve measures such as sales targets and earnings growth. Strategic objectives are related to the firm's business position, and may include measures such as market share and reputation.

Environmental Scanning

 The environmental scan includes the following components:

Internal analysis of the firm
Analysis of the firm's industry (task environment)
External microenvironment (PEST analysis)

The internal analysis can identify the firm's strengths and weaknesses and the external analysis reveals opportunities and threats. A profile of the strengths, weaknesses, opportunities, and threats is generated by means of a SWOT analysis

An industry analysis can be performed using a framework developed by Michael Porter known as Porter's five forces. This framework evaluates entry barriers, suppliers, customers, substitute products, and industry rivalry.

Strategy Formulation

Given the information from the environmental scan, the firm should match its strengths to the opportunities that it has identified, while addressing its weaknesses and external threats. To attain superior profitability, the firm seeks to develop a competitive advantage over its rivals. A competitive advantage can be based on cost or differentiation. Michael Porter identified three industry-independent generic strategies from which the firm can choose.

Strategy Implementation

The selected strategy is implemented by means of programs, budgets, and procedures. Implementation involves organization of the firm's resources and motivation of the staff to achieve objectives. The way in which the strategy is implemented can have a significant impact on whether it will be successful. In a large company, those who implement the strategy likely will be different people from those who formulated it. For this reason, care must be taken to communicate the strategy and the reasoning behind it. Otherwise, the implementation might not succeed if the strategy is misunderstood or if lower-level managers resist its implementation because they do not understand why the particular strategy was selected.

Evaluation & Control

The implementation of the strategy must be monitored and adjustments made as needed.

Evaluation and control consists of the following steps:

1. Define parameters to be measured
2. Define target values for those parameters
3. Perform measurements

Strategy can be formulated on three different levels:

• Corporate level
• Business unit level
• Functional or Departmental level.

While strategy may be about competing and surviving as a firm, one can argue that products, not corporations compete, and products are developed by business units. The role of the corporation then is to manage its business units and products so that each is competitive and so that each contributes to corporate purposes.

Consider Textron, Inc., a successful conglomerate corporation that pursues profits through a range of businesses in unrelated industries. Textron has four core business segments:

Aircraft - 32% of revenues
Automotive - 25% of revenues
Industrial - 39% of revenues
Finance - 4% of revenues

While the corporation must manage its portfolio of business to grow and survive, the success of a diversified firm depends upon its ability to manage each of its product lines. While there is no single competitor to Textron, we can talk about the competitors and strategy of each of its business units. In the finance business segment, for example, the chief rivals are major banks providing commercial financing. Many managers consider the business level to be the proper focus for strategic planning.



Corporate Level Strategy

Corporate level strategy fundamentally is concerned with the selection of businesses in which the company should compete and with the development and coordination of that portfolio of businesses.

Corporate level strategy is concerned with:

A. Reach
Defining the issues that are corporate responsibilities; these might include identifying the overall goals of the corporation, the types of businesses in which the corporation should be involved, and the way in which businesses will be integrated and managed.

B. Competitive Contact
defining where in the corporation competition is to be localized. Take the case of insurance: In the mid-1990, Aetna as a corporation was clearly identified with its commercial and property casualty insurance products. The conglomerate Textron was not. For Textron, competition in the insurance markets took place specifically at the business unit level, through its subsidiary, Paul Revere. (Textron divested itself of The Paul Revere Corporation in 1997.)

C. Managing Activities and Business Interrelationships
Corporate strategy seeks to develop synergies by sharing and coordinating staff and other resources across business units, investing financial resources across business units, and using business units to complement other corporate business activities. Igor Ansoff introduced the concept of synergy to corporate strategy.

D. Management Practices
Corporations decide how business units are to be governed: through direct corporate intervention (centralization) or through more or less autonomous government (decentralization) that relies on persuasion and rewards.

Corporations are responsible for creating value through their business. They do so by managing their portfolio of businesses, ensuring that the businesses are successful over the long-term, developing business units, and sometimes ensuring that each business is compatible with others in the portfolio.

Business Unit Level Strategy

A strategic business unit may be a division, product line, or other profit center that can be planned independently from the other business units of the firm.

At the business unit level, the strategic issues are less about the coordination of operating units and more about developing and sustaining a competitive advantage for the goods and services that are produced. At the business level, the strategy formulation phase deals with: positioning the business against rivals anticipating changes in demand and technologies and adjusting the strategy to accommodate them influencing the nature of competition through strategic actions such as vertical integration and through political actions such as lobbying.

Michael Porter identified three generic strategies (cost leadership, differentiation, and focus) that can be implemented at the business unit level to create a competitive advantage and defend against the adverse effects of the five forces.


Functional Level Strategy

The functional level of the organization is the level of the operating divisions and departments. The strategic issues at the functional level are related to business processes and the value chain. Functional level strategies in marketing, finance, operations, human resources, and R&D involve the development and coordination of resources through which business unit level strategies can be executed efficiently and effectively. Functional units of an organization are involved in higher level strategies by providing input into the business unit level and corporate level strategy, such as providing information on resources and capabilities on which the higher level strategies can be based. Once the higher-level strategy is developed, the functional units translate it into discrete action-plans that each department or division must accomplish for the strategy to succeed.

These all precautions will help to avoid failures in strategies put forward by me in the company and will lead to the success of the company but the essence of being “strategic” thus lies in a capacity for "intelligent trial-and error" rather than linear adherence to finally honed and detailed strategic plans. Strategic management will add little value - indeed, it may well do harm -- if organizational strategies are designed to be used as a detailed blueprints for managers. Strategy should be seen, rather, as laying out the general path - but not the precise steps - by which an organization intends to create value. Strategic management is a question of interpreting, and continuously reinterpreting, the possibilities presented by shifting circumstances for advancing an organization's objectives. Doing so requires strategists to think simultaneously about desired objectives, the best approach for achieving them, and the resources implied by the chosen approach. It requires a frame of mind that admits of no boundary between means and ends.

Crime against humanity and Law

What is Crime against humanity and Law? Is it dealt under the international Criminal Court? How is UN Security Council responsible?

Crimes Against Humanity

The term crimes against humanity has come to mean anything atrocious committed on a large scale. This is not, however, the original meaning nor the technical one. The term originated in the 1907 Hague Convention preamble, which codified the customary law of armed conflict. This codification was based on existing State practices that derived from those values and principles deemed to constitute the “laws of humanity,” as reflected throughout history in different cultures.

As defined by the Rome Statute of the International Criminal Court Explanatory Memorandum, "are particularly odious offences in that they constitute a serious attack on human dignity or grave humiliation or a degradation of one or more human beings. They are not isolated or sporadic events, but are part either of a government policy (although the perpetrators need not identify themselves with this policy) or of a wide practice of atrocities tolerated or condoned by a government or a de-facto authority. Murder; extermination; torture; rape and political, racial, or religious persecution and other inhumane acts reach the threshold of crimes against humanity only if they are part of a widespread or systematic practice.

In our society, there exist many crimes against humanity. A crime against humanity is a term in international law that refers to acts of a persecution or any large scale atrocities against a body of people, as being the criminal offence above all others. The Rome Statue Explanatory Memorandum states that crimes against humanity “are particularly odious offences in that they constitute a serious attack on human dignity or grave humiliation or a degradation of one or more human beings. They are not isolated or sporadic events, but are part either of a government policy (although the perpetrators need not identify themselves with this policy) or of a wide practice of atrocities tolerated or condoned by a government or a de facto authority. However, murder extermination, torture, rape, political, racial, or religious persecution and other inhumane acts reach the threshold of crimes against humanity only if they are part of a widespread or systematic practice. Isolated inhumane acts of this nature may constitute grave infringements of human rights, or depending on the circumstances, war crimes, but may fall short of meriting the stigma attaching to the category of crimes under discussion.”

The war crimes are also crimes against humanity. It takes the life of many a people. Under the Nuremberg Principles, the supreme international crime is that of commencing a war of aggression because it is the crime from which all war crimes follow. The definition of such a


crime is planning, preparing, initiating, or waging a war of aggression, or a war in violation of international treaties, agreements, or assurances.
International Criminal Court

The crimes against humanity dealt under the International Criminal Court. In 2002, the International Criminal Court (ICC) was established in The Hague (Netherlands) and the Rome Statue provides for the ICC to have jurisdiction over genocide, crime against humanity and war crimes. Article 7 of the treaty stated

that: For the purpose of this Statute, “crime against humanity” means any of the following acts when committed as part of a widespread or systematic attack directed against any civilian population, with knowledge of the attack:

• Murder

• Extermination

• Enslavement

• Deportation or forcible transfer of population;

• Imprisonment or other severe deprivation of physical liberty in violation of fundamental rules of international law;

• Torture;


• Rape, sexual slavery, enforced prostitution, forced pregnancy, enforced sterilization, or any other form of sexual violence of comparable gravity;

• Persecution against any identifiable group or collectivity on political racial, national, ethnic, cultural, religious, gender as defined in paragraph 3, or other grounds that are universally recognized as impermissible under international law, in connection with any act referred to in this paragraph or any crime within the jurisdiction of the Court;

• Enforced disappearance of persons;

• The crime of apartheid

• Other inhumane acts of a similar character intentionally causing great suffering, or serious injury to body or to mental or physical health.

Crimes against humanity are particularly odious offences in that they constitute a serious attack on human dignity or grave humiliation or a degradation of one or more human beings. They are not isolated or sporadic events, but are part either of a government policy (although the perpetrators need not identify themselves with this policy) or of a wide practice of atrocities tolerated or condoned by a government or a de facto authority. However, murder, extermination, torture, rape, political, racial, or religious persecution and other inhumane acts reach the threshold of crimes against humanity only if they are part of a widespread or systematic practice. Isolated inhumane acts of this nature may


constitute grave infringement of human rights, or depending on the circumstances, war crimes but may fall short of meriting the stigma attaching to the category of crimes under discussion. On the other hand, and individual may be guilty of crime against humanity even if he perpetrates one or two of the offences mentioned above, or engages in one such offence against only a few civilians, provided those offences are part of a consistent pattern of a misbehavior by a number of persons linked to that offender (for example, because they engage in armed action on the same side of because they are parties to a common plan or for any similar reason.) Consequently when one or more individuals are not accused of planning or carrying out a policy of inhumanity, but simply of perpetrating specific atrocities or vicious acts, in order to determine whether the necessary threshold is met one should use the following test: one ought to look at these

atrocities or acts in their context and verify whether they may be regarded as part of an overall policy or a consistent pattern of a inhumanity , or whether they instead constitute isolated or sporadic acts of cruelty and wickedness.

Responsibility of UN Security Council

UN Security Council Resolution 1674, adopted by the United Nations Security Council on 28 April 2006, “ reaffirms the provisions of paragraphs 138 and 139 of the 2005 World Summit Outcome Document regarding the responsibility to protect populations from genocide, war crimes, ethnic cleansing and crimes against humanity”. The resolution commits the Council to action to protect civilians in armed conflict.


A recognizable body of international criminal law does exist. However, the precise parameters of this body of law are often unclear, perhaps due to rapid and complex developments of our global society. International Criminal Law can be categorized according to whether the conduct in question is international, constituting an offense against the world community, or whether the act transnational, affecting the interests of more than one state. International criminal law is an autonomous branch of law which deals with international crimes and the courts and tribunals set up to adjudicate cases in which persons have incurred international criminal responsibility.

Writing A Business Letter

Formatting of Business Letter:
The way a business letter looks immediately gives the reader their first impression even before they read it. The quality of the paper, letterhead design, the margins, spacing and more all have something to say about the organization. A weakness in any of these elements can detract from the effectiveness of the message, even though it is expertly written.

Choose the following carefully:
The Paper There are different kinds of paper. I recommend using the 20lb for normal use and 32lb for important letters like resume cover letters and thank you letters.
Color White is the standard and should usually be used. Light tints (grey, blue, green, etc) are also becoming popular. Do not use any strong colour unless you know it is acceptable to the reader.
Size To me only the Letter or A4 are the only acceptable sizes. There are other sizes but I don’t recommend it unless you are in the creative field.
Layout In a business letter format, there are many layouts; the three most popular are the semi-blocked, blocked and full-blocked. Whatever layout you wish to use, it doesn’t really matter. As for me, I prefer the full-blocked simply because it is easier to type on the computer.

Margins Left and Right 1 Inch
Top and Bottom 1 ½ Inch

Spacing Most letters are single spaced. Use double space for short letters. Leave one blank line between paragraphs, 2 Blank lines before the complementary close (i.e. Sincerely) and 3 to 4 lines for the signature.
Salutation Always use the name of the individual if you know it.
Dear Name: (personal friend or close business associate)
Dear Mrs. Rider:
Dear Miss Spears:
Dear Ms. Tyler: (use Ms. If you don’t know the marital status or the preference)
Dear Mr. So and So:
Dear Dr. So and So:
Dear Sir So and So:
If you don’t know the name of the individual, address it to the individual’s title in the company and then use dear Sir or Madam: Here is an example:

Head of Human Resource
ABC Company
123 Sesame Street

Dear Sir or Madam:

But please only use this if you really cannot find out the name of the person. Most companies will tell you who the person is. All it takes is a phone call.
If you are addressing to an organization and not an individual, then use the following:
Ladies and Gentlemen:
And if you want to highlight the letter to an individual(s) in the organization, use the attention line as follows:
Attention: Miss J. Fonda, CEO and Mr. M. Jackson, CFO
Ladies and Gentlemen:

Complimentary close For a normal business letter format, I prefer to use Regards, Sincerely, and Sincerely yours. Other acceptable formal business letter close includes Cordially, Cordially yours, Very sincerely yours, Very cordially yours, Yours very truly, Very truly yours and if the person is of high stature, Respectfully yours.
Subject Line Sometimes to speed up the handling of your mail, it may be wise to use a subject line.

Dear Mr. M. Balram:
Subject: Order No. 456-9A6
Signature Do use a title (Mr., Miss, Ms) to indicate your preference and you gender and give you First and Last Name.
Example:

Sincerely

Signature
[Name of XYZ]

Scripting of a Business letter: Writing an effective business letter is an important skill for every manager and business owner. In this brief overview we will examine the five main steps in creating an effective business letter. With this knowledge you can quickly amend and personalize business letters.
Few Main Steps are mentioned below:

• Identify your aims
• Establish the facts
• Know the recipient of the letter
• Create sample Copy
• Decide the Physical layout of letter.



Identify your Aims:
Clearly establish what you want to achieve from the letter- whether it is to win back a dissatisfied customer or to reprimand an employee. Whatever the aim, create your letter from these goals.

Establish the facts:
Make sure you have the relevant accurate facts available. For a late payer, this might include relevant invoices, complaint forms, talks with your sales department and any previous correspondence from the customer.

Know the recipient of the letter:
Write in the language of your recipient. Try to put yourself in the position of the recipient. Read it from his point of view. Is the letter clear or open to misinterpretation.
If you know the recipient, use this knowledge to phrase the letter to generate your desired response.

Create a sample Copy:
Having established your aims, amassed the relevant facts with a conscious view of the recipient- write down the main points of your letter.
Decide on Physical layout of letter.

The physical appearance of a letter consists of the paper and the envelope.
The first thing a recipient sees is the envelope. It is essential that it is of suitable quality with the name and address spelt correctly. Quality envelopes and paper suggest a professional company.

It is wise to make sure the envelope matches the size of the paper. While you will use 81/2 x 11 inches(A4 size) sized paper for the majority of letters - a 4 x 6 inches(A5) can be used for specific shorter letters. But insist that correctly sized envelopes are used for this A5 size paper, allowing you maintain and convey an coordinated image.

Technical layout of letter:
The following elements will constitute the formal outlay.
• Letterhead
• Name and address
• Date
• Reference
• Salutation
• Subject matter
• Communication
• Signature
• Enclosures

Letterhead:
This will include your company's name, address, telephone number, fax number and email address. Include your web address if available. Other information may be required depending on the legal status of your business formation. Contact your legal adviser for exact details.

Name and address:
Always include the recipient's name, address and postal code. Add job title if appropriate. Double check that you have the correct spelling of the recipient 's name:
Date:
Always date your letters. Never abbreviate January to Jan. 31.

Reference:
These are optional. They are a good idea if you have a large volume of correspondence. These days modern word processors made this an easy task to complete and maintain.

Salutations:
The type of salutation depends on your relationship with the recipient. Always try to personalize the letter thus avoiding the dear sir/madam situation.

Subject matter:
Again this is optional, but its inclusion can help the recipient in dealing successfully with the aims of your letter. Normally the subject sentence is preceded with the word Re: It should be placed one line below the greeting.

Communication:
This will contain a number of paragraphs, each paragraph dealing with one point and one point only.

Signature:
The signature should be clear and legible-showing you are interested in the letter and consequently the recipient. Your signature should also be followed underneath by a typed version of your name and your job title.

Enclosures:
If you include other material in the letter, put 'Enclosure', 'Enc', or ' Encs ', as appropriate, two lines below the last entry.

A letter's style:
Previously we created the main points of our letter, now we must transform this into a final version. To do this, four main considerations are necessary.
• Format
• Prose
• Manner
• Accuracy

Format:
There are three main formats: blocked, semi-blocked and indented.
The former has all entries tight against the left -hand margin. The semi-blocked format sets the references and the date to the right margin for filing and retrieval purposes, with the remaining entries placed against the left margin.
The indented format follows the same layout as either of the above, but indents each paragraph by five or six spaces.
Prose:
Clarity of communication is the primary goal. Don't use technical jargon if the recipient is unlikely to understand it. Short sentences are less likely to be misunderstood or misinterpreted. Be precise, don't ramble. Check each sentence to see if it is relevant. Does it add to the point?
Manner:
Always try to personalize your letters. Always try to be civil and friendly even if the subject matter is stern and sensitive. Give the impression to the recipient that some effort and thought has gone into the letter.
Accuracy:
Once the final version of the letter has been created, polish it off with a final spelling and punctuation check.
Following the above mentioned guideline a good business letter can be crafted and using some punch words can make the letter effective bur remember those words can varies letter to letter, industry to industy and situation to situation.

E Business

E business is a term used to describe businesses run on the Internet, or utilizing Internet technologies to improve the productivity or profitability of a business. In a more general sense, the term may be used to describe any form of electronic business —- that is to say, any business which utilizes a computer. This usage is somewhat archaic, however, and in most contexts e business refers exclusively to Internet businesses.

Growth of E-Business in detail-
E-Business is one of the fastest growing industries worldwide and even in times of recession and economic downturn the e-business industry is thriving. In the US e-retail sales have risen by 11% in 2009 which equates to 10% of the whole US retail industry online and off-line! The expected revenue this year from US e-retail sales is $156 billion which is expected to increase to $229 billion by 2013. We will take an example of a specific country to prove the growth and its future.

Retail e-Business in UK
The UK figures released by the Office of National Statistics in February 2009 showed that internet retail sales, as a percentage of total retail sales, rose by 13.2% (average weekly value of £167 million). These figures closely match figures released by the IMRG/Capgemini Sales Index which showed that the e-business retail market rose by 17% in July compared to July 2008, this increase has been driven by the clothing, accessories and electrical goods online retail sales.

Internet Usage Growth Statistics
The internet growth rate is a phenomenon with world internet usage figures showing continued growth, the figures show that 24.7% of the world’s population are now logging onto the internet on a regular basis. Below are internet usage growth rate statistics showing the percentage of increase from the year 2000 to 2009:

Africa – 1,359.1%
Asia – 516.1%
Europe – 282.9%
MiddleEast – 1360.2%
NorthAmerica – 132.9%
LatinAmerica/Caribbean – 873.1%
Oceania/Australia – 173.4%

Detailed Statistics related to this survey are mentioned as below:


(Figures are based on the survey conducted as and until 19 September 2009)

E-Business Growth
The growth of e-business has risen in line with the incredible growth of the internet with more than 75% of businesses operating a website, 36% of businesses operating an intranet of some kind and around 10% of businesses operating an intranet. A survey conducted by IPSOS discovered that, far from being an extra “expense,” internet operations boosted businesses’ bottom lines. 64% of businesses with websites claimed an increase in sales revenue directly attributed to the internet while 73% said having a website has saved money in admin costs.
Digital Britain

On the 16th June 2009 the British Government unveiled its “Action Plan for the Digital Economy” which states the intention to have broadband accessible to everyone in the UK by 2012. This means there will be a significant rise in internet users and frequency of use. The latest figures from the Office of National Statistics show 70% of the UK has internet access (18.3 Million households) in 2009 which is an increase of 11% on the last year.

What Does All This Mean For E-Business Growth?
All the figures show a current and future increase of internet usage not just in Britain but worldwide. Revenue generated via e-business sales over the internet in the last year has slowed slightly in regards to the amount of ‘annual-increase’ however there is still a significant increase in this years figures over last years, this is despite being in a recession and global economic downturn. E-Business is showing to be a definite sustainable and profitable investment that offers massive upward growth and ROI in the years to come without any signs of decline.