Business Communication Assignment 5

1. The important of information technology in business.

Innovation is the great way to success in this digital age. The path of innovation in business means doing something different, smarter or better that will make a positive difference in terms of value, quality or productivity by using emerging or proved technologies of the world. The technology which has already proved itself in last two decades is of course the information technology (IT). It has dramatically changed the lives of the individuals and organisations. Currently online shopping, digital marketing, social networking, digital communication and cloud computing etc are the best examples of change which came through the wave of information technology. Now accurate business planning, effective marketing, global sales, systematic management, real time monitoring, instant customer support and long term business growth cannot be achieved at the optimum level without IT.

The success of every business depends on certain factors. Some of which are accurate analysis, choosing the right technology and the future vision. Research from the last two decade has proved that those organisations that do invest in technology and choose the path of innovation increase their market share, financial figures and overall competitiveness. Information technology is the only technology which provides you the opportunity to analyse specific data and plan your business journey accordingly. It also provides you many tools which can solve complex problems and plan the scalability (future growth) of your business. In the modern age, it is proved that digital marketing is a great tool which let you promote your products or services to the global market while sitting in the comfort of your remote office or home. And thanks to the cloud computing and modern communication which enable you to form a global organisation, manage and monitor its virtual offices all over the world. Now I will briefly explain how information technology plays a vital role in different phases of business.

a.      Decision Making

Speed and accuracy are at the heart of making right decision for your business. Every successful organisation has to go through a comprehensive market research process which enables management to make the right decision.  Market research can be done in many ways through online surveys, forums, blogs, group discussions using World Wide Web and of course through in-person interviews as well. Currently Big data, Google Analytics and Microsoft CRM Dynamics are also great tools to extract useful information which can impact on decision making. These online tools not only provide real time responses from the potential audience but also ensure the accuracy of data by minimising the risk of human errors.

b.      Marketing and Business Growth

The heart of the business success lies in its marketing which enables the management to identify its target audience first and then observe their trends and needs. The overall marketing covers public relation, advertising, promotion and sales which subsequently impact on business growth. Many types of marketing can help you reach your potential customers. But I will briefly explain digital marketing here which was the dream in the past without Internet technology. Digital Marketing is a modern phenomenon which let you promote your products or services all over the world. It is a broad term which includes many concepts like search engine optimisation (SEO), pay per click (PPC), blogging, discussion forum, email shot, SMS, MMS, social media marketing and Smartphone app advertisement etc. Currently web market is booming at a very fast pace because most of the entrepreneurs have understood that the long term success in business is not possible without digital presence on the internet. Millions of new websites are being added on the internet every year.

c.       Customer Support and Satisfaction

Higher level of customer satisfaction is the key to success which cannot be achieved without a real time customer support process. Business success depends on knowing its customers needs, trends, behaviours and satisfaction level. Effective communication is the best tool to understand the customer demands, problems and their solutions. Thanks to the Internet Technology that has enabled us to communicate with millions of potential or existing customer in the real time. IT provides many channels to communicate with the customer without going out in snow or rain. Some of these channels are email, webinar, social media, member portals, online newsletters and text or multimedia messaging through the smart phone.  Enterprise organisations normally use customer relationship management systems (CRM) to hold valuable data for understanding customer behaviours and future needs.

d.      Resource Management and Globalisation

Resource management plays a crucial role in business success. When it comes to medium or large organisation, it is very hard for the top management to manage all the resources manually. These resources may include tangible, financial or human resources etc. Information technology has played a vital role in automating such complex problems by introducing user friendly solutions. A decade ago, most of the resource management solutions were desktop based. Thanks to the internet and cloud technology which enables software engineers to introduce cloud based ERP (Enterprise Resource Planning) solutions. Now, the managers can manage or monitor their organisational resources virtually anywhere in the world by using their personal computer, laptops, tablets or Smartphone. This concept has introduced the idea of globalisation. Most of multinational companies (Microsoft, Google, Amazon, McDonalds etc) in the world use these cloud based solutions to manage their virtual or physical offices and staff worldwide.

•   Email

Short for electronic mail, email (or e-mail) is defined as the transmission of messages over communications networks. Typically the messages are notes entered from the keyboard or electronic files stored on disk. Most mainframes, minicomputers, and computer networks have an email system.

Some electronic mail systems are confined to a single computer system or network, but others have gateways to other computer systems, enabling users to send electronic mail anywhere in the world. Companies that are fully computerized make extensive use of e-mail because it is fast, flexible, and reliable

• Internet

A means of connecting a computer to any other computer anywhere in the world via dedicated routers and servers. When two computers are connected over the Internet, they can send and receive all kinds of information such as text, graphics, voice, video, and computer programs.

•   Voicemail

Voicemail is a method of storing voice messages electronically for later retrieval by intended recipients. Callers leave short messages that are stored on digital media (or, in some older systems, on analog recording tape).

•   Teleconferencing 

The process of conducting a conference call or meeting over telephone lines or data communications lines connected to multiple separate locations. Teleconferencing is commonly managed at a central point and each of the users or locations that want to participate in the call must dial into that central point.

                   2.      What is a business report?

·   According to Lesikar and Petit, “A business report is an orderly, objective communication of factual information that serves some business purpose”.

·      Boone and Other said, “A business report is a document that organizes information and a specific topic for a specific business purpose.”

·        According to Murphy and Hildebrandt, “A business report is an impartial, objective, planned presentation of a fact to one or more persons for a specific, significant business purpose.”

Business reports are typically assigned to enable you to:

·         Examine available and potential solutions to a problem, situation, or issue.

·         Apply business and management theory to a practical situation.

·     Demonstrate your analytical, reasoning, and evaluation skills in identifying and weighing-up possible solutions and outcomes.

·         Reach conclusions about a problem or issue.

·         Provide recommendations for future action.

·         Show concise and clear communication skills. 

3.      Advantages & Disadvantages of Business Report

Small businesses often find themselves preparing business reports in the process of evaluating and planning for their long-term performance. It's usually a good idea for those preparing a financial report to understand some of the objectives of doing so and the potential limitations that might arise. Business reports are a powerful tool if used correctly, but only if those using reports are aware of their disadvantages.

Ø  Basics of Business Reports

Business reports are documents prepared by employees or managers that provide regulators, investors and creditors with information about the performance and strategies of the business. Among the most important business reports are financial statements -- the company's balance sheet, cash flow and income statements -- that are used to assess business growth. Other important reports include the business plan and mission statement, which provide direction for the company and benchmarks for management and employees.

Ø  Performance Assessment and Comparison

Perhaps the most significant advantage of business reports is that they provide information to management and investors that is critical to decision-making. Business reports usually identify key areas of strength and weakness in the company's management, a running record of the business's performance and guidance for the company's strategic priorities. Financial statements give the company the ability to compare their performance with competitors or with previous time periods, both of which are critical for securing and maintaining growth.

Ø  Regulatory and Creditor Compliance

Business reports are often required by government regulators and lending agencies. This is especially true for businesses that are publicly traded, which must regularly disclose their financial statements and other guidance that can be used by investors to evaluate the company's risk. In addition, both lenders and private investors usually want to review the company's reports to better understand how their money will benefit the company and assess their likelihood of earning a return.

Ø  Limitations of Business Reports

While business reports are incredibly useful for management, they also have their limitations. There is often considerable cost of time and money in preparing reports, which has the potential to limit a business's financial and logistic ability to invest in operations or expansion. Some reports are inadequate to get an accurate picture of the entire business, or of the financial conditions in which they operate. Reports may not always be as comparable as they appear -- differences in accounting methods can create difficulty. Finally, reports are also limited by the quality of the information that is available and the competence of those preparing them, so it's helpful to keep in mind any potential limitations in collecting meaningful data.

Ø  Potential to Neglect Qualitative Information

Financial statements in particular are often limited to those aspects of the business that can be quantitatively reported, even though the business might enjoy significant assets along more qualitative measures. For example, a business that has hired well-qualified and motivated people will not account for doing so on a financial statement, even though this asset may outweigh a business's temporary financial shortcomings.

 

4.      Types of Business Reports in Business Communication

Reports on the basis of Importance or Frequency

The reports are classified into two types. They are ordinary or routine reports and special reports.

1. Ordinary or Routine Report

Ordinary reports are prepared and presented before the managing director at specific intervals or to the next authorized person in the business routine. The reports shall be submitted either daily, weekly, fortnightly, monthly, quarterly, bi-annually or annually. This type of report contains mere statement of facts in detail without any opinion or recommendation of the reporter.

2. Special Report

This type of report is prepared and presented before the top management on specific request. It usually contains the opinions or recommendations of the reporter with the help of facts and arguments. Examples for special report are opening of branch, introducing a new product, Improving the quality or changing the shape or size of the product and the like.

Reports on the Basis of Legal Formalities

The reports are classified into two types. They are formal report and informal report.

1. Formal Report

Formal report is prepared in a prescribed format and presented before the competent authority in an established procedure. Reports submitted by officials or committees of constituted bodies (example: Companies, Cooperative Societies, Local Bodies etc.) are usually formal report.

2. Informal Report

Informal report is prepared in a format of the convenience of the reporter and presented directly before the required person as and when demanded. An informal report is presented as in the form of letter or memorandum. Generally, it takes the form of a person to person communication.

Reports on the basis of Function

The reports are classified on the basis of function into two types. They are informative and interpretative.

1. Informative Report

An informative report is prepared and presented with the help of available information at the maximum with regard to an issue or situation.

2. Interpretative Report

An interpretative report is not only contains the facts, views and opinions of reporters and others but also includes the causes for an issue or an event and required remedial action with recommendations.

Reports on the basis of meetings

Whenever a meeting is organized in any business organization, a report is prepared by the secretary or any other individual about the proceedings of the meeting. Such reports are classified into two types. They are Verbation Report and Summarized Report.

1. Verbation Reports

A verbation report is a complete word by word record of all discussions made at a meeting. For example, Appointment of an Auditor. A resolution is passed in the meeting. Likewise, Directors are appointed and the remuneration and perquisites of key personnel are fixed by passing a resolution. In this case, a report is prepared by including the verbation record of the resolutions passed with the names of the proposers and seconders, manner of voting and results.

However, the verbation report should not be confused with the minutes of the meeting which is the official record of the proceedings and the decisions arrived at in the meeting.

2. Summarised Report

A summarized report is prepared with the help of the essential details discussed in the meeting. This type of report is prepared for sending to the press or to shareholders of the company or members of the institution.

Reports on the basis of Nature of the Subject dealt with

The following reports are included in the report which are classified on the basis of the nature of the subject dealt with.

1. Problem Solving Report

A problem may arise in any one of the department or in the whole organization. Hence, the top management may seek a report for solving the problem. When, the reporter collects various information to find the causes for such problem. Moreover, the report is concluded with the ways of solving the problem. Such type of report is called Problem Solving Report.

2. Fact Finding Report             

A machine may be breakdown in the factory premises. Sometimes, there may be a rivalry between the two group of workers. Now, the management wants to know the real reason for machine break down and group clash between the workers. In this case, the reporter analyze the incident through detailed investigation and find the truth. Finally, the reporter presents the facts in the report form before the top management.

3. Performance Report

The business organization wants to know the performance of each department periodically or performance of a branch or performance of newly appointed employee or performance of existing employees for promotion, transfer and the like. The management is not in a position to take a decision without knowing the performance. Hence, a reporter is asked to prepare the performance report for anyone of the reasons mentioned above.

4. Technical Report

There is a lot of changes made in the technology. Whenever a company is going to introduce mechanical process instead of manual process, the level of technology required assessed. Sometimes a design may be changed in the existing product, if so, latest technology should be adopted. In this case, a detailed report is essential to top management for taking a decision. Such type of report is called Technical Report.

Reports of Committees or Subcommittees

Committees or Subcommittees are formed by the top management to prepare the report on any one of the issue. The followings are included in the reports of committee or subcommittee.

a.       Standing Committee Report

b.      Adhoc Committee Report

c.       Minority Report

1. Standing Committee Report

Standing Committees are permanent in nature and are entrusted to deal with some continuing aspects of the business organization.

For example: Finance, Performance of Employees, Performance of Departments etc. These matters are continuously watched by the standing committee and submit the report at frequent intervals.

2. Special or adhoc Committee Report

Special or adhoc Committees are appointed to deal with special investigation and are dissolved as soon as the presentation of report. Hence, the life of special committee is temporary.

For example: Fire occurrence or Accident incurred within the factory premises. The causes for fire or accident are find out by forming special committee.

3. Minority Report

Committees or subcommittees are appointed to submit the report based on the investigation of special subject. Generally, three members are selected to form a committee or subcommittee. One member being the chairman of such committee or subcommittee.

5.      Essential Characteristics or Features of a Good Report.

Report provides factual information depending on which decisions are made. So everyone should be taken to ensure that a report has all the essential qualities which turn it into a good report. A good report must have the following qualities :

1. Precision

In a good report, the report writer is very clear about the exact and definite purpose of writing the report. His investigation, analysis, recommendations  and others are directed by this central purpose. Precision of a report provides the unity to the report and makes it a valuable document for best usage.

2. Accuracy of Facts
 
Information contained in a report must be based on accurate fact. Since decisions are taken on the basis of report information, any inaccurate information or statistics will lead to wrong decision. It will hamper to achieve the organizational goal.

3. Relevancy
 
The facts presented in a report should not be only accurate but also be relevant. Irrelevant facts make a report confusing and likely to be misleading to make proper decision. 

4. Reader-Orientation
 
While drafting any report, it is necessary to keep in mind about the person who is going to read it. That's why a good report is always reader oriented. Readers knowledge and level of understanding should be considered by the writer of report. Well reader-oriented information qualify a report to be a good one.

5. Simple Language
 
This is just another essential features of a good report. A good report is written in a simple language avoiding vague and unclear words. The language of the report should not be influenced by the writer's emotion or goal. The message of a good report should be self-explanatory.

6. Conciseness
 
A good report should be concise but it does not mean that a report can never be long. Rather it means that a good report or a business report is one that transmits maximum information with minimum words. It avoids unnecessary detail and includes everything which are significant and necessary to present proper information.

7. Grammatical Accuracy
 
A good report is free from errors. Any faulty construction of a sentence may make its meaning different to the reader's mind. And sometimes it may become confusing or ambiguous.

8. Unbiased Recommendation
 
Recommendation on report usually make effect on the reader mind. So if recommendations are made at the end of a report, they must be impartial and objective. They should come as logical conclusion for investigation and analysis.

9. Clarity
 
Clarity depends on proper arrangement of facts. A good report is absolutely clear. Reporter should make his purpose clear, define his sources, state his findings and finally make necessary recommendation. To be an effective communication through report, A report must be clear to understand for making communication success.

10. Attractive Presentation
 
Presentation of a report is also a factor which should be consider for a good report. A good report provides a catchy and smart look and creates attention of the reader. Structure, content, language, typing and presentation style of a good report should be attractive to make a clear impression in the mind of its reader.