Explain the importance of an organisation having a business plan - Importance of Strategic Planning in Business | Your Business
Nearly all business experts agree on one thing: the importance of drafting a business plan. Why is a Business Plan Important? Related Book.
In short, it can help ensure that you are prepared for all sorts of eventualities.
To help grow your business In an ideal world, all businesses would be self-financing in exploiting business opportunities. In reality, few are afforded this luxury, and hence, will be required to secure external investment eventually.
The production of a credible business plan is one of the primary requirements for any entrepreneur seeking investment to grow. To commit to creative writing 252 particular course of action A business plan can help a company assess future opportunities, choose one, and then commit to a particular course of action.
By committing to one opportunity, all other options are english coursework questions marginalised and the company is aligned to focus on key deliverables.
To manage cash flow Careful management of cash flow is a fundamental requirement for all businesses. The reason is quite simple-many businesses fail, not because they are unprofitable, but because they ultimately become insolvent i.
To value a business Given that valuing firms is notoriously difficult and subjective, a well-written plan will clearly highlight the dvb s2 thesis for any prospective investors, explain the value of the business, and increase the likelihood of a successful exit by the current owner.
To ensure all bases are covered When you start a new business, the temptation is to spend time on the idea and then react to events as they come up rather than focusing on what is important.
For instance, many organizations use different sources of information for planning, trends analysis, and managing performance. Consequently, the value of the information is only as good as its point of entry into the system.
This means that when decision makers across the organization are analyzing different numbers in order to make decisions that will affect the company, and the information does not add up the blame for why these numbers are invalid lies at the point of entry of the information into the operational systems.
However, if data quality control initiatives exist particularly with respect to the data that is used to drive decision making, the picture changes as a broader and more correct view of the information becomes available.
Within business intelligence applications the idea of bringing in the right data at the right time becomes critical to reporting and analysis applications. Without accurate information, the data being analyzed and reported on becomes meaningless. A general overview of how data integration works will provide an outline for decision makers who want a better understanding of how information is gathered to help with the decision making process.
How it works source: For business intelligence applications i. The first step is the identification of what data is required and where it resides.Why is a Business Plan Important & Who Should Write It?
For instance, customer sales may exist in several systems across the organization. It becomes important to identify where the best access point is to capture the information.
Once the data is identified it is copied i. On a separate note, data integration can also be used for purposes outside of business intelligence including consolidating organizational information due to acquisitions, master data management initiatives, and integrating data from legacy systems into ERP and CRM systems. As an extension of simple integration activities such as ETL extract transform and load the ability to perform CDC change data capture and EII enterprise information integration activities also exist.
Change data capture CDC simply involves capturing only the updated data fields.