MOI UNIVERSITY

SCHOOL OF BUSINESS MANAGEMENT

NAME: DORCAS C. KIKWAI

REG NO: ECO/20/09

DATE: 23/02/2012

COURSE:

1. a. Impacts of Internet to Business starting operating and managing? Internet penetration, adoption and usage in Kenya are rapidly increasing and many business start-ups or even the existing businesses are leveraging the benefits that come with it. The most notable is the fact that more people have access to the internet, and thus create a need to take marketing to the internet. More recently is the upsurge of use of social networks for marketing purposes. Managerial functions such as communication, planning, directing, organizing etc becomes easy with the use of internet especially in situations where a business have different branches in different parts of the country. IT creates new opportunities for innovation in products and services. Services which used to be delivered in person can now be delivered over networks. Among the key impacts that internet creates includes but not limited to:
y y y y

Simultaneity: making information instantly available in several systems . Time extension: offering 24 hour a day; 365 days a year service. Portability: taking service and products closer to the user via the internet. Reusability: using information captured for one purpose (e.g. transactions), and using for others (e.g. customer targeting).

y y y

Marketing: reaching more people with fewer resources. Communication: effective email communication between clients and the business. Cut costs: Internet has helped business cut costs especially when a startup needed to hire more people/sales persons.

2. Challenges that prevent Technology from its maximization? These IT impacts have implications for managers of all organizational functions, worth noting are the following challenges:
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Understanding the Changing Context of IT - as well as the direct impact on their business managers need to be able to see these developments in the context of the wider

environment in which their business operates, since in most instances, technology changes rapidly.
y

Keeping abreast of Developments - not about the details of the technologies, but about the business impacts; for example by meeting suppliers business consultant's, attending conferences, or receiving customized presentations from independent analysts.

Integrating IT and Business Planning adopting and using technology effectively is not an easy task, hence the IT strategy should support the business strategy and vice versa. This may need new planning processes, hybrid teams, and a increased incorporation of all these into business plans. This narrows down the full utilization of technology in businesses.

Addressing Culture Issues The way an organization information culture will determine how technology is appreciated, accepted and used by employees. Hence, just setting up a technology is not enough, but how employees are trained and assimilated is important. This can become a limiting factor in full utilization of technology.

Developing New Skills as technology changes, employees and managers need to acquire new skills on the usage of these new technology.

Prohibitive costs Huge sums of capital are required in the initial stages of adopting and using technology, and this can be an obstacle in fully utilizing technology for businesses

3. MIS

a. Description of MIS
Management Information Systems (MIS) provides modern, computerized systems that continuously gather relevant data, both from inside and outside an organization. This data is then processed, integrated, and stored in a centralized database (or data warehouse) where it is constantly updated and made available to all who have the authority to access it, in a form that suits their purpose.

b. How MIS can be used in the Country.

MIS can be used in the country in a number of ways: y y y y E-government- used in government ministries to provide services to the citizenry effectively. E-voting- elections can be effectively delivered with optimal MIS. E-learning- government can deploy proper MIS for use in education institutions E-health- health services can easily be offered in such systems as tele-medicine.

c. Advantages of MIS
MIS has impacted modern businesses in several significant ways. First, MIS offers the ability of seamlessly translating and sharing important information between all levels and business divisions. Second, it offers management the ability to enable employees to take a greater role in the servicing of end consumers and be profitable operations of the business as a whole. Third, information is more readily available, more accurate and easier to use. Finally, modern MIS eliminates unnecessary redundancy and repetition of effort.

4. References
Hoffman, D., and Novak, T.: A New Marketing Paradigm for Electronic Commerce. The Information Society, Special Issue on Electronic Commerce 13 (Jan-Mar), 4354 (1997). Hoffman, D., Novak, T., and Chatterjee, P.: Commercial Scenarios for the Web: Opportunities and Challenges. Journal of Computer-Mediated Communications, shum.huji.ac.il/jcmc/vol1/issue3/vol1no3.html. 1 (3), (1997). Study on the Impact of the Internet on Enterprises' Business and Management Practices by Changchao Gu, Chengxiu Gao, Lei Yang, Liyong Fang, 2005 OBrien, J (1999). Management Information Systems Managing Information Technology in the Internetworked Enterprise. Boston: Irwin McGraw-Hill