The Impact of Big Data in Business

The Impact of Big Data in Business

The Impact of Big Data in Business

The Impact of Big Data in Business, Big data analytics helps organizations harness their data and use it to identify new opportunities.

That, in turn, leads to smarter business moves, more efficient operations, higher profits and happier customers

The digital era has created an overwhelming amount of information, with the total amount of data projected to rise to 44 zettabytes by 2020.

This massive amount of data has proven to be immensely valuable to large enterprises as well as small companies.

For the first time, enterprises are able to integrate disparate data into meaningful sources for AI algorithms to manipulate and understand behaviors.

By the end of 2017, the adoption of big data in companies had reached 53% and it is estimated to reach more than 75% by the end of 2025.

Big data can be defined as: “high-volume and/or high-variety information assets that demand cost-effective, innovative forms of information processing that enable enhanced insight, decision making, and process automation.”

Why is Big Data Important?

Data plays a huge role in understanding valuable insights about target demographics and customer preferences.

From every interaction with technology, regardless of whether it’s active or passive, we are creating new data that can describe us.

With data being captured through products, video cameras, credit cards, cell phones, and other touchpoints, our data profile is growing exponentially.

If analyzed correctly, these data points can explain a lot about our behavior, personalities, and life events.

Companies can leverage these insights for product improvements, business strategy, and marketing campaigns to cater to the target customers.

The concept of big data and its importance has been around for years, but only recently has technology enabled the speed and efficiency at which large sets of data can be analyzed.

As data both structured and unstructured grow substantially in the coming years, it will be collected and examined to reveal unexpected insights and even help predict the future.

Big data will change how even the smallest companies do business as data collection and interpretation become more accessible and affordable.

New, innovative, and cost-effective technologies are constantly emerging and improving which makes it incredibly easy for any organization to seamlessly implement big data solutions.

Big Data Applications in Business

Using and understanding big data is a crucial competitive advantage for leading corporations.

To the extent companies can collect more data from existing infrastructure and clients will give them the opportunity to discover hidden insights that their competitors don’t have access to.

Big data can present an abundance of new growth opportunities, from internal insights to front-facing customer interactions.

Three major business opportunities include: automation, in-depth insights, and data-driven decision making.


Big data has the potential to improve internal efficiencies and operations through robotic process automation.

Huge amounts of real-time data can be immediately analyzed and built into business processes for automated decision making.

With scalable IT infrastructure and decreasing cloud computing costs, automating data collection and storage is within reach.

In-depth insights

Big data can also be used to discover hidden opportunities that were unknown to organizations before the ability to review large sets of data.

Complex data sets can even be used to develop new products or enhance existing ones. Proprietary data within the market can prove invaluable in the competitive landscape.

Faster, better decision making

With the speed of data analytics technology, paired with the ability to analyze new sources of data, businesses are now able to analyze information instantly and make smart, informed decisions.

How to Harness the Power of Big Data

The market for big data analytics is very huge, over 40% of large organizations have invested in big data strategies over the last several years.

However, with endless possible data points to manage, it can be overwhelming to know where to begin.

Before choosing and implementing a big data solution, organizations should consider the following points.

Experienced big data team

Create a team of experts in data collection, analytics, and strategy to help build an ideal big data approach that results in positive returns for the company.

This team should include individuals who understand modern analytic methods, able to manipulate big data sets, and experienced consultants who understand overarching business goals.

Identify end goals

Having the right objectives is crucial for successfully implementing a big data solution.

The data and analytics must be properly aligned with the organization’s end goals such as greater profit, brand recognition, market share domination.

Capture the right data

Once the underlying business goals have been defined, the next step is to have a full understanding of the data before its application.

Identifying, capturing, and tracking the right data will be the backbone of the entire big data process.

Utilizing the wrong data sets can result in catastrophic consequences that lead the entire company in the wrong direction.

Apply proper analytic methods

Professional data analysts are skilled in translating big data into valuable insights efficiently and accurately.

Visual summaries of the data that are easily digestible help supporting teams quickly process the data analysis and make quick business decisions.

Big Data Analytics Tools

The rise of big data has created a huge market for data analytics tools that help enterprises seamlessly implement big data solutions.

Startups like Ople and Cruz Informatics have experience working quickly with large corporations to make data ready for action.

Ople was founded with a very specific vision that Artificial Intelligence should be easy, cheap, and ubiquitous.

Ople accelerates the data science process, enabling organizations to attach more challenges and get answers sooner.

With Ople, Data Scientists can focus on the business at hand, not the plumbing, creating 10X more production quality AI models and reducing time to deployment from months to just a few days.

Crux Informatics

Using data to uncover actionable insights is the life-blood of an industry. Crux makes data ready for action by taking on the burdensome aspects of our customers’ information supply chains helping firms acquire, explore, and transform data with ease so they can focus on what really matters.

With its Informatics Platform, Crux offers a secure, scalable environment to store, explore and transform data through its integrated cloud service. Crux makes data delightful.

The Impact of Big Data in Business


Business organization structures

Business organization structures

Business organization structures

Business organization structures, An organizational structure is a system that outlines how certain activities are directed in order to achieve the goals of an organization.

These activities can include rules, roles, and responsibilities. The organizational structure also determines how information flows between levels within the company

Types of Business Organizational Structures

Large or small, every organization should operate with a defined organizational structure.

A well thought out and strategic business configuration clarifies reporting relationships and supports good communication resulting in efficient and effective work process flow.

The board and senior leadership should be the group that determines the type of organizational structure that would best support the internal operations, how work is carried out, and the chain-of-command.

Determining the best structure is done by answering the questions:

  • What are the functional groupings of work processes?
  • Are there natural groupings of teams, workgroups, or units?

Senior leadership looks at all functions and determines how they would like work activities to be organized and carried out.

This process also identifies natural reporting relationships and chain-of-command. Reporting relationships can be both vertical as well as horizontal.

6 Common Businesses Organizational Structures

  1. Hierarchical Organizational Structure

Organizations that use a traditional hierarchical structure rely on a vertical chain of command as the prime method of organizing employees and their responsibilities.

Military, government, and other very large organizations use a hierarchy to determine the level of control employees have over their work as well as their rank relative to others.

Hierarchical structures typically feature multiple layers of management and are therefore prone to bureaucracy and the creation of silos that prevent cross-team collaboration.

An interactive example of a hierarchical organizational structure:

  1. Matrix Organizational Structure

A matrix structure provides for reporting levels both horizontally as well as vertically.

Employees may be part of a functional group such as an engineer but may serve on a team that supports new product development.

This kind of structure may have members of different groups working together to develop a new product line.

For example, a recording engineer who works for a music publisher may have engineers who report to him but may also use his expertise and work with teams to develop new music albums.

The advantage of a matrix organizational structure is that employees have the responsibility not only for their department but for organizational projects.

A challenge with this type of structure presents itself when employees are given direction from two different managers and they need to prioritize their work responsibilities.

  1. Functional Organizational Structure

Functional organizational structures are the most common. A structure of this type groups individuals by specific functions performed.

Common departments such as human resources, accounting, and purchasing are organized by separating each of these areas and managing them independently of the others.

For example, managers of different functional areas all report up to one director or vice president who has responsibility for all of the operational areas.

The advantage of this type of structure is that functions are separated by expertise but the challenges come in when different functional areas turn into silos that focus only on their area of responsibility and don’t support the function of other departments.

The Advantages of an Organizational Structure

The old adage “failing to plan is planning to fail” is most applicable to the organizational structure you implement at your business.

This structure creates a system by which you can delegate decisions, identify roles and responsibilities, and define the chain-of-command.

In other words, an organizational structure is a framework that helps your employees achieve their goals and do their jobs in the most efficient and productive way.

A sound company structure can benefit your organization in several ways, including making it easier to delegate responsibility and affecting change throughout the workplace. To benefit from a strong framework, it is important to understand the advantages of organizational structure.

Unify Your Marketing Message

Your company can present a unified front to customers, vendors, and investors when a common marketing message is used throughout your organization.

A unified marketing message can help the entire company better understand its marketing goals, and then work together to achieve them.

When multiple departments are involved in a single endeavor, a unified marketing message can be essential to project success.

For example, if your social media marketing department identifies an untapped customer base, your structure should make it easy for the head of that department to communicate this discovery to senior management and the sales team.

This can be true even if you have a top-down structure in which authority rests in the hands of your senior management team.

In that instance, you should create an “open-door policy” that allows your employees to make suggestions or deliver ideas in a timely manner so that senior management can act upon it.

Promote Upward Mobility

A strong organizational structure is better able to prepare qualified employees for management.

When the company operates under a strong structure, a comprehensive management training plan is easier to create and execute to help maintain a strong managerial core.

Departments can work together on a developmental plan to help encourage the training of managerial candidates within any department.

Organizational structure also allows employees to clearly understand the divisions between lower, middle and senior management.

With this operational framework in mind, your workers are empowered to meet and exceed performance standards that can help them climb the upward ladder in their career trajectory.

Ease Strategic Planning

Using a strong organizational structure allows a company to better focus on a single set of goals instead of each group working toward its own agenda.

This is the result of the flow of communication that an organizational structure offers, as well as the establishment of responsibility and respect for the company hierarchy that comes from strong structure.

It helps the company to use resources wisely in the pursuit of company goals as opposed to doubling efforts or experimenting with options perhaps not in the company’s best interests.

Improve Employee Training

A good organizational structure makes employee training easier to administer. And it allows training to remain flexible based on the changes within the organization.

When organizational structure regulates the flow of information, then changes in information are easier to monitor and update in a company-wide training program.

Refine the Decision Making Process

Regardless of the type of organizational structure you choose, there will always be a reporting channel that ends with a final decision-maker.

For example, in a flat structure in which employees are given wide latitude to make suggestions and take ownership of their work process, decisions are made based on the consensus of employees working in a team.

In a top-down structure, decision-making occurs at the senior management level and is then clearly communicated to the rank-and-file to implement.

When a defined hierarchy is in place, your company is better equipped to make important decisions and adjust practices to meet the demands of competition.

Business organization structures



Benefits of Business Security System in Kenya

Benefits of Business Security System in Kenya

Benefits of Business Security System in Kenya

Benefits of Business Security System in Kenya, With the advancing of technology and considering the risks that come with it, there is an increasing need for small businesses and enterprises to secure their properties and workforces.

This is normally from internal as well as external threats to the business. No matter what you do or how large you are, you need a business security system.

While you can secure a building with a basic security system, a business needs a lot more than just an alarm system to operate with complete peace of mind.

Consequently, business owners should understand the level of protection they require when it comes to purchasing a quality business security systems to enhance their security capabilities.

A solid business security system provides employees with complete peace of mind, protects your assets and data, minimizes insurance rates, and so much more.

Security is important for every commercial establishment because no one wants to risk losing their assets.

Nothing feels worse than being greeted with a report that your property has been intruded by burglars and you’ve lost valuable items and equipment.

It stops your business growth dead in its tracks and it takes away a large chunk of your resources to recoup the losses.

If you don’t have a security system installed in your establishment, you’re putting your entire business at a huge risk.

Securities systems help deter burglars from forcing entry into your property and it also safeguards your assets at all times.

The importance of security systems cannot be overstated and if you need a bit more convincing, here are the reasons why your business should have a security system installed.

  1. It promotes a safe working environment

As a business owner, you are responsible for the health and safety of your employees. Having security systems installed promotes a safe working environment by ensuring that your employees are monitored at all times.

Should there be an unfortunate incident, local authorities can respond right away and address the issue.

It also gives your employees a sigh of relief when they’re working in odd hours or late shifts.

Your employees will feel safe knowing that your establishment comes installed with a modern security system and allow them to focus on the task at hand without fearing their health or safety.

  1. It protects your cash flow

Employees are the driving force of a successful company. If the internal operations are running smoothly, you can expect your business to flourish.

But if you notice that your business is suffering despite reaching your sales numbers, there might be an internal issue that needs to be addressed.

Often times, unethical employees may be tempted to steal cash and/or other assets in your establishment, especially if there are no CCTV cameras installed in key areas like the cash register, warehouse, and stockroom.

To prevent these issues from happening, a security system should be installed inside your company premises.

This discourages employees from attempting any unethical behavior and also protects your cash flow and other valuable assets.

  1. it’s a wise investment

Smart investments are what contribute to the success of a business, security systems are one example of a wise decision.

Definitely, modern security systems can be quite expensive, but you’re getting incredible value for money by protecting your other thousand-dollar investments.

If you want to keep your business assets safe by employing security systems you will greatly minimize your losses.

It is now agreed by most entrepreneurs that security systems are necessary when running a business.

You don’t want your assets to be exposed and let the thieves and burglars take it away, would you?

Before acquiring other assets, make sure that the ones you have now are safe and protected by investing in the latest security systems.

  1. It gives you peace of mind

You already have a lot of things going on in your mind when running a business and the last thing you want is to add to those thoughts.

Security systems give business owners peace of mind knowing that their establishment is well-protected from both inside and out.

You can leave your business on auto-pilot and not have to worry about external or internal burglary when you’re outside its premises.

With a security system installed, you can go on long vacations and feel confident that none of your employees will try to steal your assets.

Thieves won’t dare to break-in as they fear getting caught by CCTV cameras and risk getting caught by local police authorities.

  1. It allows you to focus on other important matters

You can’t afford to keep an eye on your business security all the time as this can affect other aspects of your business.

Quality Security systems will allow you to direct your efforts on important matters like maintaining profits, boosting sales, and reaching company objectives.

The security system will take care of the safety of your business while you focus on expanding your business even further.

A security system is an absolute must for every business, whether it is big or small.

Over the years, security systems have become even better at providing the level of protection business establishments need so they can protect their assets from the hands of criminals and ensure the safety of both the owners and the employees.


 Innovation For Business Growth

 Innovation For Business Growth

 Innovation For Business Growth

Innovation For Business Growth, For a business to be able to thrive in a competitive landscape, they must be willing to adapt and change or be wiped out of existence.

One of the biggest questions that business needs to answer is how to do appropriate business innovation for growth and profitability

The successful exploitation of new ideas is crucial to a business being able to improve its processes, bring new and improved products and services to market, increase its efficiency and, most importantly, improve its profitability.

When Marketplaces are considered whether local, regional, national, or global it becomes evident that they have become highly competitive.

Competition has increased as a result of wider access to new technologies and the increased trading and knowledge-sharing opportunities offered by the Internet.

This article will try to explain how an organization can make innovation a key business process and outlines the different approaches you can take.

You gain an immense understanding of planning for innovation and creating the right business environment to develop your ideas.

The business case for innovation

It is important to be clear about the difference between invention and innovation. Invention is a new idea. Innovation is the commercial application and successful exploitation of the idea.

Fundamentally, innovation means introducing something new into your business.

The following are some of the ways and means of achieving innovation in business organizations in Kenya.

  • improving or replacing business processes to increase efficiency and productivity, or to enable the business to extend the range of quality of existing products and/or services
  • developing entirely new and improved products and services – often to meet rapidly changing customer or consumer demands or needs
  • adding value to existing products, services or markets to differentiate the business from its competitors and increase the perceived value to the customers and markets

Innovation can mean a single major breakthrough such as a totally new product or service. However, it can also be a series of small, incremental changes.

Whatever form it takes, innovation is a creative process. The ideas may come from inside the business, for example, employees, managers or in-house research and development work

Innovation could also come from outside the business, such as from suppliers, customers, media reports, market research published by another organization, universities and other sources of new technologies

Success in many business organizations comes from filtering those ideas, identifying those that the business will focus on, and applying resources to exploit them.

The following are some of the approaches to innovation in business in Kenya today.

Innovation in your business can mean introducing new or improved products, services, or processes.

Analyze the marketplace

There’s no point considering innovation in a vacuum. To move your business forward, study your marketplace and understand how innovation can add value to your customers.

Identify opportunities for innovation

You can identify opportunities for innovation by adapting your product or service to the way your marketplace is changing.

You could innovate by introducing new technology, techniques, or working practices perhaps using better processes to give a more consistent quality of product.

If research shows people have less time to go to the stores, you could overhaul your distribution processes, offering customers a home-delivery service, possibly tied in with online and telephone ordering.

If your main competitor’s products have a reputation for being cheap and cheerful, rather than trying to undercut them on price you could innovate by revamping your marketing to emphasize the quality of your merchandise and consider charging a premium for them.

Planning innovation

Some innovative ideas may just come to you out of the blue. However, you should ideally have innovation as part of your business strategy

If your business organization has developed a strategic vision of how you want your business to develop, if you dedicate your time to monitoring trends in your business sector, you can then focus your innovative efforts on the most important areas.

Innovation will not only improve the chances of your business surviving, but also help it to thrive and drive increased profits.

There are lots of practical ways of assessing whether your ideas have profit potential:

Assess the competition

Find out who your competitors are and where they operate. Use the Internet and advertising sources such as the Yellow Pages to find out about their products, prices, and operating culture.

This can give you an overview of their selling points, as well as any areas you might be able to exploit.

For example, if the competition is focused on value for money, you might want to emphasize the quality of your product or service.

Study market or industry trends

Awareness of the climate in which your business is operating will help you to plan.

You can find a lot of information about your industry on the Internet. Business and trade magazines will also feature useful articles.

Build a relationship with your customers

It’s not enough simply to know who your customer base is. You need to communicate effectively with them as well.

Communication involves not only listening to their needs but also actively observing their behavior around current products and services and generating ideas on how you can make improvements.

Involve your suppliers and other business partners

Pooling your resources with your suppliers or other business partners will help to produce and develop creative ideas. Potential partnerships can also be developed through business networking opportunities.

Finally, you should include your vision in your business plan by, putting down your goals, both long and short term and detailing how you intend to achieve them

You could also do so by linking goals to financial targets, such as achieving a specific turnover by a set date and finally reviewing your plan regularly.

Encourage innovation in your business

There are many sources you can use to help generate new ideas for the business.

Suppliers, business partners, and business network contacts can all make valuable contributions to the creative process, as well as providing support and encouragement.

Your employees are also a vital asset in generating innovative ideas.

To get the most from them, you need to create an innovative environment and encourage creative thinking.

When business organizations employ some of these strategies for their growth, this will lead to extreme profitability.

Innovation For Business Growth

Importance of Business System in Organizations

Importance of Business System in Organizations

Importance of Business System in Organizations

Business Systems and business processes are the essential building blocks of every business organization. Every facet of your business organization is greatly impacted by the business system.

A one shop business, a big warehouse, or even an office are the kind of organizations that can be managed, and their performance improved by applying the correct business management system.

Business systems are designed with the capability to connect all the intricate components of an organization.

The entire components are designed to work together for the achievement of the business strategy and eventual profitability.

When a business applies defined principles and practices to the systems and processes that deliver value to their customers, it is creating what is often referred to as a “business system.”

Creating effective business systems often unifies the problem solving and decision making of the organization.

Many common tools and methodologies are universally taught and expected to be utilized by all types of businesses that aim at mainstreaming efficiency.

The business system also encompasses how we lead our people and connect them to the operational strategy.

Why Implement a Business System?

There are several reasons to implement a business system.

Improving Top-Line Performance:

Part of the business system is the development and implementation of strategy creation, business processes and strategic planning throughout your organization.

Those foundational elements lead to a much more insightful way to investigate and grow top-line revenue.

In short, a business system takes care of your future. It ensures you meet your customers’ expectations and improve your brand, which is key to growing a healthy business.

If you use a systematic approach, your organization will have constant information on areas that need to be improved and you will begin to understand the unmet needs of customers.

Meeting Customer’s Expectations:

If you use a systematic approach, your organization will analyze measure, compare, and test all the possibilities of what your customers want and don’t want.

You will have constant information on areas that need to be improved and, even more importantly, you will begin to understand the unmet needs of customers.

A business system is key to improving the brand that the organization projects to your community, including customers, employees, and suppliers.

Consistent Results:

Whether we are considering safety, quality, or getting the job done in a timely manner, a business system is designed to give you effective, efficient, and repeatable results. In short, the business system gives you a “process to fix your processes.”

Employee Engagement:

The goal of the system is to enable proper education and opportunities for all employees so they can complete their work more efficiently and effectively.

We also seek to harness their ideas and creativity and, in the process, increase their personal engagement.

Additionally, having the system in place allows you to quickly integrate new-hires, and makes it easy for them to see their role within the organization and bring forth new ideas.

Reduce Cost and Increase Profits:

It has been proven time and again that the implementation of a sound business system helps reduce costs, but so will many things.

A business system is intended to reduce costs without taking the shortcuts that often lead to an erosion of profitability due to the necessity to lower quality expectations or service levels.

Most companies in Kenya that have achieved huge success have set in place System of Performance Excellence that consists of four main areas:

Strategy—the way the organization thinks and plans
Processes—the way the organization operates
People—the way the organization leads
Technology—the way the organization connects and innovates

A business system focuses on the alignment of all activities to the customer perspective, from the strategy to employees’ day-to-day work, and installs value-chain-based thinking.

The Power of a Business System

When implementing a business system to enhance Performance and Excellence, there are several major changes that the leadership of an organization must appreciate to make progress.

Value-Stream Based

Instead of assigning resources to projects based on financial priority, which means they can be spread all over, we assign resources to a specific site or value stream to work a series of projects.

This creates focus, achieving significant transformation in that value stream and allowing the local leadership team to become comfortable using new tools to solve problems. With this approach, we build up sections of excellence much faster.

Project Selection

Such a value stream approach also allows for a more systematic project selection process. We don’t want to be haphazardly selecting projects but rather working on initiatives designed to drive toward the achievement of the strategic goals and objectives of the business.


By installing a replication process, organizations can take an improvement implemented in one location and duplicate that to all of the other affected locations. This allows the whole organization to see results much faster.

Deployment Dashboard

A deployment dashboard summarizes all results to date and informs the leadership team of expected progress. This dashboard should be communicated on a regular basis. Results have to be measured and shared to sustain success.

Daily Management

Through a thorough Daily Management system in each value stream, we put in place depending on needs a tiered meeting structure, visual management boards, and leadership standard work.

Daily Management is the backbone of sustainability and is often where the most significant improvement opportunities are surfaced.

In addition to these quick-hitting changes listed above, we also expect to see, over a longer period, these other changes to occur.

Systematic Innovation

Another part of the business system framework is creating a scalable and sustainable innovation ecosystem in order to create a competitive advantage.

The organization learns to address innovation challenges quickly, build a pipeline of innovation opportunities, prioritize ideas, and apply methods and tools for both front-end innovation and back-end design.

Culture Change

Along the way, the organization starts to see a shift in culture. While some change will happen naturally, other changes must be guiding and steered.

To effect positive culture change, the Cycle of Accountability and Trust guide us in forming a virtuous cycle.

With all of those changes taken together, you can see how a business system provides a framework for a constant pursuit of improvement and innovation, and a deep understanding of change and motivation.

At the end of the day, when you have all of these things in place, a sound business system gives the organizational leaders confidence in their ability to create the future.


Business System In Kenya

Business System In Kenya

Business System In Kenya

This is one of the most comprehensive business systems articles you will find online.

You will gain an in-depth understanding of how businesses have appropriated systems in Kenya. We will focus on the following.

1. What is the Meaning of Business System
2. Objectives and benefits of Business System
3. Types of business systems

Meaning of Business System

Majorly, business systems are meant to help the business organizations to efficiently achieve their goals.
A business system can be said to be a combination of policies, principles, personnel, equipment, and computer facilities that help in coordinating the many activities of a business organization.

It will establish the rules as well as the procedures of that organization, which are to be governed.

The business system will establish how data needs ought to be handled and it ensures that it is methodically processed.
The other fundamental contribution of the business system is that it also controls the procedures of the processed data and the results to be displayed.

For example, a system may have the capability to automatically order parts for an inventory, it can also monitor future corporate profits credit documentation and also help monitor customer accounts.

Ultimately, the nature of a business system will totally demonstrate how efficient the designer of the system wanted to process to be run.

The following are the main objectives of the Business System.

1. They are established with the goal of meeting the needs of the user as well as those of the customer.
2. Business systems majorly cut down operating costs thereby increasing savings and eventual profitability.
3. They will ensure a smooth flow data via the various levels in a business organization.
4. Business systems normally will speed up the execution and attainment of results appropriating all the reliable data that is available in the system.
5. They are important in handling data more efficiently as well as provide timely information to the management.
6. Business systems enable the establishment of a desirable distribution of data, services, and equipment are throughout the organization.
7. To define a proper method of handling business activities.

8. To eliminate duplicated, conflicting, and unnecessary services.

The Major Categories of Business Systems in Kenya are as follows.
Generally, there are five kinds of business systems
1. There are Payroll business systems
2. Personnel business system
3. Accounts receivable system
4. Accounts payable system
5. Inventory system.

1. Payroll Business System.

A payroll business system comprises of all the forms, procedures, files, equipment, personnel, and computer support necessary to completely process the payment of employees.

A complete payroll system comes with an inbuilt capability that enables it to fully handle all tax deductions, personal deductions, and the update of payroll data related to each employee.

It is designed such that it provides for the actual payment of employees; it will also be able to record that particular payment.
These business systems have the capability to allow for the modification of all payroll records and finally the preparation of payroll reports.

The payroll system needs to have the capability to generate all tax documents reports and a wide range of other employment tax filing requirements.

Another vital payroll responsibility is the ability to produce accurate reporting of all personal deductions in the organization where it is being used.

This may include but not limited to medical and life insurance, profit-sharing plans, stock options, credit union deductions, and an employee’s salary by a creditor.

The above-accumulated totals need to be reported accurately to the individuals from whose salaries these amounts were deducted.

A comprehensive I.T support in the organization makes it possible to accurately and promptly process the entire payroll. All the input data are properly handled on a timely basis.

2. Personnel Business System.

Personnel system describes varied aspects of an organization’s workforce. The outputs generated by personnel systems are frequently used in compiling central & state labor power reports.

Retail organizations are major users of accounts receivable systems, since these systems detail monies that are owed to an organization.

Conversely, accounts payable systems focus on the monies that are owed to an organization.

These two systems parallel to each other, requiring the continued maintenance of files, their update reporting on movies due and owed, providing customer statements and invoices, and recording payments made.

3. Accounts Receivable System

An account receivable system monitors the flow of money. An accounts receivable system monitors the people who owe money to a business organization. It provides the means to process all data for credit and other kinds of charge accounts.
The files contain the individual customer data, including names, addresses, financial charges like, payments received, and current charges.

The information is issued as monthly statements of each customer and also provides useful information for management’s use.

4. Accounts Payable System.

Accounts payable system monitors the organization to which money is owed. The file structures and input/output (I/O) formats are similar to the accounts receivable system.

It contains the accounts of vendors to whom money is owed. Input will have goods and services received by the company while outputs include the issue of payments and management reports.

5. Inventory System.

Inventory system monitors the status of items held in an inventory. These systems report on the quantities of goods on hand, as well as when items should be purchased to replenish stock and what critical items are needed.

Inventory systems are crucial to organizations that maintain large and costly inventories.

Business System In Kenya

Business System In Kenya

Financial Training For Non-Financial Managers

Financial Training For Non-Financial Managers

Financial Training For Non-Financial Managers

Fundamental knowledge of finance is essential for all professionals, even if they do not have a direct role to play in the finance and accounting departments in their organization.

Managers who lack the capacity to make intelligent assessments of financial data will find themselves handicapped and unable to understand the impact of their strategies on the financial bottom-line.

Many managers are promoted through skills in their own field – which may not include much financial skill and exposure.

Having the responsibility of submitting and working to tighter budgets, reducing costs, and coming up with ideas for improving profits may have many non-financial managers feeling out of their comfort zone.

These trainings are normally designed not to turn non-financial managers into financial experts. They are however designed to introduce them to finance and accounts.

Key topics include the role of the finance function, understanding and interpreting the financial statements, and preparing and managing budgets.

The need for all of your managers to understand finance stems from the core business goal: This is to generate profit.

If your general management does not understand the processes and strategies involved in managing finances, then your company is reducing its chance of business survival and success.

Here are the core areas of finance that all of your managers should be aware of:

  • How the business generates profit (the income statement drivers)
  • How capital is invested (the balance sheet drivers)
  • How cash is generated and consumed in a business (why profit is different from cash)
  • How the business increases cash flow generation
  • Commercial KPIs and how they are used to drive performance (what measures of return are typically used and what drives this return)
  • How the business measures and manages commercial performance
  • How clients measure and manage their commercial performance
  • How the business’ products deliver a successful commercial outcome for its clients (demonstrating the value to clients of the products and services the business supplies)

All managers have a role to play in driving performance and reducing risk in their day-to-day activities. To this end, providing them with a practical understanding of finance is critical.

Using Business Simulations in Finance Training

Through activities and simulations designed to emulate genuine workplace context and scenarios, employees have the opportunity to develop their understanding and skills through first-hand practice.

Finance training in the form of business simulations helps enable non-finance managers to gain a broader view of the business and appreciate how some decisions can ripple out and affect other areas of the business and, ultimately, the bottom line.

Business simulations also allow for the collection of quantitative and qualitative data, which more traditional training methods simply can’t accommodate, helping learners make more informed decisions and change their behavior to better contribute to the bottom line.

This experiential method of training is highly effective in building practical skills, insights, and confidence while giving managers a safe environment in which to learn and practice new skills.

Simulations inject a level of competitiveness, increasing participants’ desire to achieve the learning objectives. The heightened engagement often stimulates accelerated performance and while generating data that can be used for feedback.

Simulations also give learners an opportunity to internalize new ideas and reflect on their effectiveness areas that need further support. They encourage learners to actually use new skills and capabilities in the workplace following the success of their experiences during the learning process.

Business simulations engage learners at a much deeper level than other learning solutions such as seminars or e-learning.

When they are immersed in an engaging business simulation, they quickly make the link between how their actions actually impact the numbers and, as a result, they work in a more business-focused way.

For example, in a business simulation, managers might run a company from start-up through maturity, managing finance throughout. This simulation gives them first-hand experience and provides a memorable learning experience to draw on back in the workplace.

An example of a comprehensive Finance for Non-Finance Managers Training may look as follows

5 Days


  • To assist the Non-finance professionals to raise their awareness of finance and use the added knowledge to make important managerial decisions
  • To create awareness on the short term and long term needs of the businesses and offer possible solutions to counter business failure
  • Enable the managers to fully understand the profitability, liquidity, and wealth creation and apply the guiding finance principles in improving their businesses.
  • To equip the Managers with the current information on the local and international financial markets, risk management, and fraud reduction techniques.
  • To enable business owners in assets management and inventory monitoring


Module 1: Introduction – Workshop expectations

  • Workshop Introduction, Setting work objectives and participants expectations
  • Counter check materials vis a vis the workshop objectives/expectations
  • Introduction to Finance and Accounting
  • Basic Terms Used in finance
  • Group discussion on basic accounting principles
  • Understanding of the effective use of Assets, Liabilities and effective management on the same

Module 2: Financial Statements preparation and interpretation

  • Financial statements interpretation
  • Income Statement, Statement of Financial Position
  • The statement of cash flow

Module 3: Decision Making & Budgeting

  • Cash Flow vs Profitability
  • Wealth Creation for businesses
  • Techniques in Analyzing the financial statements
  • Budgeting techniques – Budget Development and implementation – Budget monitoring and control

Module 4: Capital Budgeting

  • Using financial techniques to make investment decisions from various options presented
  • Choosing amongst alternatives projects
  • Costing for profits organizations / Companies
  • Costing for nonprofit organizations

Module 5: Finance and Administrative Policies and Controls

  • Setting finance, administrative and logistical policies
  • Setting appropriate internal controls in a business
  • Importance of Audit
  • Risk and Fraud management techniques


In conclusion, the training can also be customized to fit institution needs upon request. It is also possible to have it delivered at the location that you prefer.

Financial Training For Non-Financial Managers

Financial Training For Non-Financial Managers

Types of passive income in Kenya

Types of passive income in Kenya

Types of passive income in Kenya

Making money while sleeping also known as passive income is one the aspiration of very many people around the world and Kenyans in particular.

The truth is that building a passive income stream usually isn’t passive at first. It requires time, money, skills, or all three.

But where do you start? The question of actually establishing a passive income is very elusive to very many people.

The first step is to just identify the first project and work on it step by step over time until it starts generating an income passively.

Building multiple streams of passive income has tremendous benefits in the long term: it can make you very resilient and better able to weather economic shocks when they come like the covid19 that we are experiencing in Kenya and the rest of the world.

Passive income is a long term choice that requires short term tradeoffs. If you’re willing to commit small financial investment and time, you could be earning effortlessly for years to come.

In this article, I will list some of the proven ways that you can employ to make a passive income in Kenya; the fundamental thing to know however is that it does not come very easily.

Start a Blog

This is one of the main ways to ultimately created passive income. You do this by leveraging on the internet.

But there’s more to making money online passively by blogging than just posting content online.

If you’re looking for an extremely cheap, yet highly scalable way to create a passive income for yourself, you might want to take a moment and read this article, The Ultimate Blogging Guide!

If you can consistently use your blog and create a lot of value for a lot of people, you can generate an extraordinary amount of passive income.

As you post to your blog, more and more, your site will start ranking on search engines bringing in traffic whether you put in any additional time or not.

A blog is the most cost-effective method of creating a truly passive income stream I know of. Hour after hour, day after day, your blog is out there doing work for you.

What’s the catch? It takes time to get it rolling. That’s it. The sooner you start, the sooner an income stream can begin to grow.

Make YouTube videos.

This is one of the newest passive income ideas that is growing rapidly in Kenya today.

The only effort you will need is at the onset is coming up with a video script or idea, shooting the video, and then promoting it.

Once it’s done and it goes viral, it becomes a completely passive source of income.

As long as your video is informative or entertaining, you can monetize them on YouTube. Shoot, upload, and embed Google AdSense to the videos.

When people watch the videos or click on the links with ads, Google will pay you.

In Kenya, for 1,000 views of your video on YouTube, you could get paid about KES 100 (i.e. 1$). This however increases as your viewers increase.

If you can get decent traffic, viewers, and clicks to your videos, then there is also the possibility of getting kickbacks for product or service mentions.

Making money on YouTube passively can take a lot of time and effort, before you earn your first coin on YouTube in Kenya or anywhere else you will need to invest a huge amount of time.

You require at least 1,000 subscribers to your YouTube channel and a total of at least 4,000 view hours before you can even qualify to get paid for Google ad-sense.

Become a Social Media Influencer

Did you know that you can get paid for posting on social media? There are a variety of ways to earn money as a social media influencer.

You can work with companies to produce sponsored posts/content which the company will pay you for.

Typically rates for sponsored posts are calculated by how many followers you have and your engagement rates.

You can also earn income as a social media influencer by sharing affiliate links, writing sponsored blog posts or by hosting events/attending events as an influencer.

Write an e-book

Are you conversant with a particular subject, topic, or issue more than the average person on the street?

Well, you could make money selling e-books.

Of course, developing an e-book comes with a lot of upfront investment in terms of time and/or money but once you have your book out there, it will all be worth the passive income potential for years to come.

A little marketing here and there is all you will need once the book is ready.

You can either write the e-book yourself or hire an e-book writer from Fiverr or Upwork or any of the freelancing sites.


Airbnb allows people to travel all around the world and to stay in accommodations that are a lot less expensive than traditional hotels.

Their site breaks rentals into three categories: private room, shared room, and entire home.
Airbnb charges you 3% on every booking for their services, but you can set the nightly rate at whatever you want. People around the world are making impressive passive incomes through Airbnb.

Build App Or Product

If you have a skill or service that you can share with others, you can build an app or create a product to sell.

For example, if you are passionate about fitness and have a background in creating workouts, you could create a workout app.

You could also create a physical or digital product, such as an e-book or physical book if you would rather do that instead of an app.

Hiring someone to create an app for you can get expensive. If you are willing to learn, you could create an app on your own or barter services. Creating an app or product is a great source of passive income!

Selling products that you create can also be very profitable. Sites like Etsy allow you to sell your handmade, custom, and unique products. It’s simple to set up a storefront and get started!

Being in Kenya, there are so many websites where you can sell your products online like Etsy, Jumia, OLX, which are just a few of them.

Create an online course.

Like e-books, you just need to be better at any one thing than the average person on the street and you can make passive income delivering your expertise as an online course.

These could be skills or expertise acquired through formal training or stuff you’ve learned from experience over the years.

And there are several platforms whereby you can host your online courses such as Udemy, etc.

Print on demand.

This passive income method basically involves selling t-shirts designs for free online through websites such as  TeeSpring, ViralStyle, or Merch by Amazon.

The advantage with these print on demand platforms is that you make money with ZERO upfront cost, without the need for any inventory.

All you have to do is just design the items, and promote them through various campaigns, and make money online without any investment or inventory selling t-shirts.

Once somebody buys your design on a t-shirt, mug, or hoodie, the company makes it, ships it to the customer, and you get paid via Payoneer whatever price you had set up for the item.

Types of passive income in Kenya

Types of passive income in Kenya

Types of passive income in Kenya


Using debt to build wealth

Using debt to build wealth

Using debt to build wealth

Have you ever thought about using debt to increase your cash flow?

Debt for most people is simply a part of life. It is used to pay for just about everything from homes and cars to everyday purchases such as clothes and groceries data bundles and even airtime.

In this article, we shall start by trying to understand the difference between good debt and bad debt.

There is huge financial potential in strategically using debt to help you achieve short as well as long-term financial goals for both you and your business in Kenya.

Whether a given debt is good or bad depends on several factors. These are the interest rate and the amount of time it will take you to pay back the loan.

Then there is an important consideration which is, what you are borrowing the money for. Equally important to consider is your unique tolerance for debt.

Defining good and bad debt

Basically, good debt is borrowing that helps you build long-term wealth. Bad debt, on the other hand, can harm your credit and deplete your finances. The difference comes down to two factors: risk and cost.

Mobile application types of debts have become the most commonly used debts in Kenya today.

We can equate bad debt with taking on too much risk without the ability to repay it,” says David Mook, senior vice president and chief private banking officer at U.S. Bank Private Wealth Management. “Bad debt is either too risky or too costly.”

Credit card debt is probably the most common example of bad debt globally, credit card debts are not very popular in Kenya, however, on a global scale the average U.S. household owns over $8,000 in credit card debt.

Financial advisers consider credit debt bad debt because of its high-interest rates.

Car loans are another example of bad debt because they’re used to borrow money to buy an asset that depreciates. In general, “Borrowing to support ongoing living expenses is not a good use of debt.”

Good debt may help you accomplish your objectives

Student loans are probably the most common example of good debt, given the correlation between a college degree and higher earnings throughout your career.

But that’s just the start. “Good debt can help borrowers accomplish an objective or help them avoid a bad outcome.

When it comes to accomplishing your objectives, consider another common example of good debt: taking out a mortgage on a new house.

For most people, it’s not possible to pay for a house outright. However, even if you were able to pay for it in one large payment, there are benefits to taking on debt for a home.

Paying down a mortgage results in equity in a home as well as potential tax advantages.

Plus, if you know you’ll be able to make your monthly payment, there is the additional benefit of improving your credit score by making the payments consistently.

Depending on your circumstances and risk tolerance, leveraged investing can be another good debt strategy.

Say you’re investing Ksh10,000 with an expected 10 percent rate of return. If you invested your own money, you would earn KSH 1000.

But if you were to invest half your money and borrow for the other half, you could earn more, if the interest on the loan is less than 10 percent.

Another potentially effective debt strategy involves using a loan to diversify your investment portfolio, especially for certain affluent individuals who hold a concentrated stock position in a single company.

They can borrow against that concentrated position to buy stocks in other companies, making for a more balanced long-term investment strategy.

An added benefit of borrowing against a concentrated stock position to diversify your portfolio is that you may defer paying the capital gains tax you would incur if you sold the concentrated stock.

Good debt may help you avoid bad outcomes

Consider this, a client who owed a large tax payment on April 15, well before June when he was expecting to receive a cash payment.

The client could have sold off some assets in his portfolio to pay the tax bill, but that would have required reconstructing his portfolio afterward, not to mention paying transaction costs and potentially more taxes.

Instead, the client decided to take out a loan to pay the tax bill and then repaid the loan in June.

All this will make you avoid disruption in your portfolio is an example of using debt effectively.

You may want to consider using income generated from diversified investments to pay down bad debts.

After assessing the amount of your bad debts, you may find that it makes financial sense to sell off an asset to quickly pay down your debts. This is where your personal debt tolerance comes in.

Assessing your debt tolerance

Your comfort level with a given amount of debt depends on your tolerance for risk. “It’s important that financial professionals explain the downside of taking on debt to clients so that they can determine how comfortable they are with that risk.

For example, if you borrow to diversify your portfolio, are you willing to ride out a volatile stretch in the market? Also, consider your time horizon.

Are you determined to pay off an investment-related debt in two years, or would you be okay if it took longer? Questions like these can help you assess whether you feel comfortable taking on debt as a part of your investment strategy.

Debt tolerance is different for everyone. “You always want to look at your cash flow and make sure you have enough income to service your debt.

The ability to determine the amount of good debt you should take on is more art than science.

In conclusion, It’s important to talk with a financial professional before incorporating good debt into your financial strategy.

Using debt to build wealth

Bible lessons about money

Bible lessons about money

Bible lessons about money

Bible lessons about money, Personal finance is a very popular topic in our current world, presently there are numerous teachers about managing money in Kenya.

Personal finance books are hot sellers in Kenya today. Bestsellers include such well-known titles as Robert T. Kiyosaki’s Rich Dad, Poor Dad, Dave Ramsey’s The Total Money Makeover are almost a must-read for anyone interested in understanding what the bible has to say about money.

However, there’s one book that’s more popular than any of these and it offers unprecedented advice about money, it is the Bible.

Of course, most people don’t think of the Good Old Book as a personal finance guide. To some, it’s the literal Word of God; to others, it’s a beautiful work of literature; still others view it as a historical text that’s had a profound influence on our society but has little to do with money.

Numerous stories and sayings from the Bible, written thousands of years ago, illustrate basic financial concepts that are as relevant as ever to any Kenyan interested in having a biblical understanding of money.

Bible lessons about money

Proverbs 24:27 – Put your outdoor work in order and get your fields ready; after that, build your house.

This piece of advice from Proverbs seems a little surprising at first. To a modern reader, it’s not clear why planting the field should be a higher priority than building the house, since both appear to be necessities of life rather than luxuries.

However, if you think about it, the answer to the question becomes obvious: Your “field” isn’t just something you need for survival – it’s actually a means of survival.

If you’re a farmer, your crops are your source of livelihood. If your field isn’t properly planted and prepared, you won’t have the money you need to build a house or provide for any of your other needs.

Today, few people rely on actual fields for their income. However, we all have certain basic needs that we have to meet in order to survive.

And to meet those needs, most of us need some form of gainful employment. What good is a house if you don’t have the means to put food on the table, or pay the rent or mortgage?

So in modern terms, this proverb means that you need to set priorities with your money. Make sure you save enough to cover the essentials.

What you need to keep yourself alive and able to work before spending money on creature comforts. In other words, set aside money to pay all the bills before you spend any on new clothes.

2. Make a Budget

Luke 14:28-30 – Suppose one of you wants to build a tower. Won’t you first sit down and estimate the cost to see if you have enough money to complete it? For if you lay the foundation and are not able to finish it, everyone who sees it will ridicule you, saying, “This person began to build and wasn’t able to finish.”

This Biblical saying is about budgeting. You know you need to cover the cost of necessities first but those costs don’t always come up right away, so you need to plan for them or make a budget.

Some major expenses, such as rent payments, only come due once per month. Others, like home insurance premiums, only come due once annually. Planning ahead and saving for those intermittent (but known) expenses is a key component of budgeting.

3. Build an Emergency Fund

Genesis 41:34-36 – Let Pharaoh appoint commissioners over the land to take a fifth of the harvest of Egypt during the seven years of abundance.

They should collect all the food of these good years that are coming and store up the grain under the authority of Pharaoh, to be kept in the cities for food.

This food should be held in reserve for the country, to be used during the seven years of famine that will come upon Egypt, so that the country may not be ruined by the famine.

In this passage from Genesis, Joseph interprets a dream the Pharaoh has had about seven fat cows grazing by a river that gets swallowed up by seven skinny cows.

Joseph concludes that the seven fat cows in the dream represent seven years of prosperity for Egypt, which will be followed by seven years of famine.

To plan ahead for this disaster, Joseph advises the Pharaoh to store up grain during the seven good years and use that stored grain to get the country through the seven hard years to follow.

4. Avoid Debt

Proverbs 22:7 – The rich rule over the poor, and the borrower is slave to the lender.

This proverb takes no skill to interpret. It describes debt as a kind of slavery and citizens in many parts of the world tend to agree with this wisdom.

All that debt takes a toll on those who carry it, both mentally and physically. Well documented research now shows that high levels of debt are associated with anxiety, depression, and relationship problems.

Debt can also be linked to high blood pressure, lowered immunity, and a host of physical symptoms, including headaches, back pain, and ulcers.

5. Diversify Your Investments

Ecclesiastes 11:2 – Invest in seven ventures, yes, in eight; you do not know what disaster may come upon the land.

This line from Ecclesiastes is a short, clear explanation of why it makes sense to diversify your investments.

Nearly any type of investment can fall victim to “evil” of some sort, whether it’s a plague of locusts that wipes out a grain crop, or a market crash that reduces the value of stocks or real estate.

So it makes sense to put money into many different types of investments so that a single disaster can’t cost you everything you have.

Old-time wisdom was that, if you divided up your cargo among seven or eight ships, all headed along different routes, the chances that all of them would sink would be very low. So even if you lost one or two ships, you could still hope to earn enough from the others to make a profit.

Admittedly, there are some who argue that diversification is a myth. Their claim is that you can earn a much better return by putting all your eggs in one basket as long as it’s the right basket.

7. Make a Financial Plan

Proverbs 21:5 the plans of the diligent lead to profit as surely as haste leads to poverty.

This final rule from Proverbs more or less sums up all the others. Budgeting, planning for retirement, saving for emergencies – they’re all different ways of being diligent by planning ahead.

Making a financial plan is a three-step process:

  1. Identify Your Goals. It’s much easier to convince yourself to save and invest when you have a clear sense of what you’re saving for.
  2. Evaluate Your Situation. Next, figure out what your current financial situation is. This is a step you can take on your own or with help from an accountant or financial advisor.
  3. List Steps to Take. Now that you know both where you are and where you want to go, all you have to do is figure out what steps you need to take to get from point A to point B.

Without a financial plan, it’s easy to drift through life, earning and spending money with no real thought for the future. Writing out a financial plan, and checking it every few months to see whether you’re on track, helps ensure that you know what you want out of life and are on a path to get it.

Bible lessons about money

Bible lessons about money