Over the next few weeks we plan to address business systems.
Every business must identify and develop its relevant business systems.
Your business evolves from survivalist enterprise to micro enterprise, very small enterprise, small enterprise and medium enterprise.
Each of these stages differs in size in terms of income levels, number of employees and level of complexity.
As your enterprise grows towards these levels, designing appropriate systems becomes critical for continued survival of the business. Failure to develop these systems tends to lead to problems which, if not addressed, may lead to serious troubles.
Having effective business systems is the only practical way to manage the important details of your operation.
The next question is what are we talking about when we speak of “business systems”? Well, a system is a procedure, process, method, or course of action designed to achieve a specific result. So if we talk of business systems we are talking about the processes, methods and way of doing things to achieve your business goals. This also includes technology platforms that make things in your business easy, fast, accurate and more cost effective . Creating effective business systems is the only way to attain results that are consistent, measurable, and that ultimately benefit customers.
Here are some of the business systems that you may need in your business:
1. Knowledge Management System
A knowledge management system is put in place in businesses to allow for easier creation and sharing of information. This type of business system is typically used in organizations where employees create new knowledge and expertise to be shared by their colleagues. A good knowledge management system allows for efficient classification and distribution of knowledge. Intranets are examples of knowledge management systems. In addition, you may have shared folders containing company policies, email systems and other platforms which enable sharing of important company information. As your business grows, the timely sharing of vital company information becomes crucially important.
2. Transaction Processing Systems
As its name implies, a transaction processing systems exists to process routine transactions. A single organization usually has several types of transaction processing systems including a billing system, an accounting system, a payroll system, an inventory control system and so on. If your business has over one hundred employees, you need to have a payroll system. If this system is not in place, then you can have problems like wrong salaries and or staff benefits being paid or late payment of salaries. Payroll systems help your business to transact and do its daily business.
3. Management Information Systems
This type of business system is designed to help middle and lower management make choices and solve problems. A management information system is made of tools and techniques that help gather the relevant information and analyse the options and alternative solutions. Managers then use the results of this type of system to handle various queries as quickly as they can. Here you find your HR systems which allow you to access staff information easily. These systems are also closely related to knowledge management systems.
4. Decision Support Systems
Also known as executive support systems, this type of business system enables higher management and executives to make long-term strategic decisions on the direction of the business. This type of system is flexible as it is not required for the daily operation of the business and only applies to particular situations. It collects, analyses and sums up key internal and external data that is then used in the business by senior executives when developing their strategic plans. It includes data on policies, the country, political or economic trends.
Businesses start small but must continue to grow and develop systems proportionately and in line with the size of the business.
In order to help entrepreneurs of Tembisa to implement what we are learning via these articles, I have set up what I call the JOSEPH ACHIEVERS MENTORING (JAM) program.
The program is based on Joseph in the bible who rose to prominence despite his background. I am encouraging all Tembisa residents to join.
This program is aimed at supporting all residents of Tembisa but targets mainly young entrepreneurs, young professionals, university students and high school learners.
It offers a range of support initiatives including career guidance, training and mentoring. Many have enrolled in the program and receive business management training and mentoring. I challenge you to enroll for JAM in order to propel your life or you business to new heights.
To register on JAM, send an email to dlalisa.rhi@gmail.com or call the numbers below.
For more information, contact Pastor WTM Dlalisa on 083 395 1165
