Business
Evolution Of Information Systems
Before the 1960s, infor
mation systems were predominantly basic. The available programme served the following purposes: electronic data processing (EDP) functions as transactions processing, accounting and record-keeping. EDP refers to the use of computer systems in recording, classification, manipulation, and summarising of data. EDP is synonymous with transaction processing systems (TPS), information processing or automatic data processing. These process data from business transactions facilitate the updating operational databases, and generating business documents. Good examples include accounting systems and sales and inventory processing.
In the 1960s, computers received an additional role: data processing to useful informative reports. This introduced the management information systems (MIS) concept. This new role sought to develop business applications which offered managerial end users predefined management reports that supplied managers with relevant information for decision-making. Management information systems are a source of information represented in form of reports and displays utilized in business decision making. These include sales analysis, cost trend reporting systems, and production performance.
By the 1970s, the pre-defined management reports no longer seemed adequate in supporting various decision-making needs by management. As a means of satisfying these needs, decision support systems (DSS) emerged as a new information management system. These new information systems serve to provide various managerial end users with both ad hoc and interactive support systems for their decision-making processes. Generally, decision support systems offer interactive ad hoc support for managerial decision-making processes. Examples of these include product pricing, risk analysis systems, and profitability forecasting.
In the 1980s, microcomputers were first introduced into the workplace, with a profound impact on organisations. There was rapid development of microcomputer processing power, application software packages (such as Microsoft Office), as well as telecommunication networks. This resulted in the new end user computing phenomenon. End users were able to use their own computing resources in the day-to-day job needs, thus eliminating their reliance on indirect support of centralized organisational information services department. However, it was realised that majority of senior executives did not use directly the MIS reports or the analytical modelling capabilities of the DSS. This inspired the introduction of the executive information systems (EIS) concept that provide critical information from existing MIS, DSS and other sources to meet information needs of senior executives.
At the same time, there were significant breakthroughs in the development and use of artificial intelligence (AI) methods to business information systems. The reducing need for physical human intervention led to the freeing up of knowledge workers to attend to more complex tasks. Expert systems (ES) together with knowledge management systems (KMS) brought about the new role for traditional information systems. ES could now serve as consultants to users through the provision of expert advice in particular subject areas. Today, ES or KMS serve as expert advisers and consultants to users. They include credit application advisor, maintenance diagnostic systems, and process monitor. KMS are crucial in supporting the creation, organisation and relaying of business knowledge in the organization
In the period between the mid and late 1990s, there was a revolutionary development of enterprise resource planning (ERP) systems. This is an organisation-specific form of strategic information system. It incorporates the various departments of a firm from operations to accounting to human resources among others. The main strength of these ERP systems is that they have a common interface for the different computer-based organizational tasks and their precise integration and data sharing required for efficient strategic decision making.
MIS to e-Commerce
The exponential development of the Internet and other interlinked global networks during the 1990s significantly improved the ability of information systems in the workplace. As a result, web-enabled and Internet-based enterprise, commerce systems and global electronic business have become commonplace in today’s business enterprises.
Present information systems still undertake the same basic functions they did over half a century ago. These include processing of transactions, record-keeping, provision of useful and informative data to management, and provision of support to processes and accounting systems of the organisation. Nonetheless, there is a significant change in the form of greater ability of information systems to integrate various system functions across different applications and greater connectivity across similar and differentiated system components. Today’s management systems also provide organisations with the ability to relocate such critical computing tasks as processing, data storage, and presentation that enable taking of advantage of the existing and potential strategic and business opportunities.
The continued technological innovation promises increased development in the capabilities of information systems as focus turns on how to increase the speed and coverage of the systems. There is therefore the potential for increased integration and greater flexibility in the future. The Internet, its related technologies and support applications, have significantly evolved the manner in which organizations function and people work. It also impacts the way information systems provide support to business processes, managerial decision-making and create competitive advantage. Businesses are increasingly taking advantage of Internet technologies by web-enabling their business processes and creating innovative e-business applications. Today, e-business refers to the utilisation of various Internet technologies in the workplace and business processes and engaging with customers and other business stakeholders.
The internet and Internet-like networks (intranet and extranet) are now the primary IT infrastructure providing support to various commercial applications in many companies. Most businesses are now dependent on various e-business applications in re-engineering their internal business processes, implementing electronic commerce systems with customers and other stakeholders, and promoting enterprise collaboration among different business teams and workgroups.
Modern decision-making Information systems support various management decision-making at different levels of management. These include tactical management, strategic management, and operational management.
Strategic management relates to the typical roles of the board of directors and the executive committee consisting CEOs and top executives. This refers to development of the overall corporate goals, policies, strategies, and objectives, which comprise strategic planning process. Also, it relates to monitoring of the strategic performance of the business and its overall trajectory in the economic, political and competitive business environment.
Tactical management – Increasingly, business professionals both in self-directed teams and business unit managers are developing short- to medium-range plans, budgets, and schedules. The plans contain specified policies, procedures and business goals and objectives for the different subunits of the organization. There is also allocation of resources and monitoring of performance of the organisational sub-units
Operational management – Operating managers and members of various self-directed teams are increasingly developing such short range plans as weekly production schedules. These are useful in directing the use of resources among different sub-units as well as the execution of tasks following established procedures, budgets and schedules.
Information systems that enhance the value of information include data warehouse, data mining, and online analytical processing.
Data warehouse (DW) – It is used for storing data extracted from various operational databases, external databases and other databases. Thus, it is therefore a central source of corporate data that has undergone cleaning, transformation and cataloguing for use by management and other business professionals. This data is used at the crucial step of data mining, analytical processing, market research and key decision support.
Data mining (DM) – Data retrieved from DW databases as well as static data are extracted for business processes. The extracted data aids in identifying hidden patterns and trends in historical business activity; making it an important tool for decision-making within an organization. The strategies that management generates are what enable them to gain a competitive edge as well as improve their business performance..
Online Analytical
Processing (OLAP)
OLAP enables managers and analysts to examine interactively, and manipulate, large amounts of detailed and consolidated data from many angles. It involves analyzing complex relationships within data items that are stored in data marts, DW and other multi-dimensional databases. An OLAP session takes place online in real time, with rapid responses to a manager’s or analyst’s queries, so that their analytical or decision-making process is not delayed.
Wori is a US-based Systems Analyst
Okeh Wori
Kolomoni Microfinance Bank has awarded grants to five female entrepreneurs to boost their businesses as part of its commitment to promoting women in business.
The initiative, organized to mark International Women’s Day, was themed “Accelerate Her Growth.”
According to the bank, the decision to support women was inspired by World Bank data, which shows that 41 percent of Nigeria’s micro-businesses are owned by women.
Delivering the keynote address, business strategist, Ebun Akinwale, emphasized that entrepreneurship requires resilience, creativity, and passion.
She illustrated this by recounting her own business challenges and highlighting the critical role passion plays in overcoming obstacles.
The event underscored Kolomoni’s mission to empower women and support small businesses in Nigeria.
Other speakers at the occasion were Odunayo Oyebolu, a seasoned entrepreneur; Victori Ajiboye, a marketing strategist with global experience; and Simi Ojumu, a finance expert.
The beneficiaries said the financial support was a validation of their hard work and a boost of confidence towards scaling through in their businesses.
The winners were selected after sharing their entrepreneurial journeys and presenting business proposals for financial assistance from the bank.
The 8th edition of the Nigeria Small and Medium Enterprises (SMEs) Summit and Awards (Nigeria SMEAwards) is set to take place in Lagos for the first time in its history, marking a significant milestone for this prestigious event.
Endorsed by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), the annual awards celebrate the entrepreneurial spirit driving Nigeria’s economy.
The visionary convener of NigeriaSMEAwards 2025, Adedayo Olalekan, said, “Governors from Zamfara, Sokoto, Ebonyi, Borno, Enugu, Ekiti, Benue, and Kaduna States have all implemented transformative initiatives that have greatly benefitted local enterprises.
“Their contributions will serve as a beacon of inspiration for the nation.”
Speaking at a recent press conference in Lagos, Olalekan emphasised that the event would introduce a fresh and unique approach, moving away from tradition.
“Despite economic challenges, Nigerians continue to show an unwavering commitment to progress”, he said.
He noted that the awards will not only honor outstanding individuals, but also recognise the critical role state governments play in nurturing vibrant SMEs.
“State governments have been instrumental in fostering a supportive environment for SMEs, which in turn benefits both the awardees and the larger economy.
“With major banks like Providus, Access, and First Banks competing for top honors, the 8th NigeriaSMEAwards promises to be a night of celebration, recognising exceptional contributions to Nigeria’s SME landscape”, Olalekan added.
Amid global challenges such as inflation, geopolitical instability, and the ongoing conflict in Ukraine, Nigerians continue to show remarkable resilience.
Their efforts, according to reports, have contributed to job creation, economic growth, and overall prosperity, with SMEs at the forefront of this success.
This year’s awards will recognise governors who have made significant strides in advancing the SME sector within their states.
Small and Medium Enterprises (SMEs) consultants in Rivers State have called on entrepreneurs to be focused and avoid distractions.
The experts, who were speaking on the recent developments about the change of leadership in the state, said entrepreneurs need to put more efforts in their businesses in order to break even in the present situation in Rivers State.
Speaking in a chat with The Tide, an international SMEs consultant, Amb. Larry Goodwill Ajiola, said the political moves is capable of distracting SMEs who are not grounded in their businesses, adding that “the serious minded business men and women would utilise the opportunity to increase their revenues”.
Amb Ajiola, who is the President and Chief Executive Officer (CEO) of Rumuomasi Co-operative and Credit Society Limited, Port Harcourt, said, “Rugged entrepreneurs look out for business opportunities in situations around them, whether good or bad”.
He reiterated that the loan facility given to 3,000 SMEs in the state revived and expanded businesses, adding that the empowered businesses should continue to push, no matter the situation.
“credit is a powerful tool for achieving financial security.
“We can only keep imagin the economic value that the over 3,000 MSMEs would add to the positive economic dynamics of Rivers State and the Local Government Areas in terms of Gross Domestic Prooduct (GDP), increased tax returns, employment creation, income distribution, and production of goods and services”, he said.
Another SMEs Expert, a business consultant and SMEs trainer, Mr. Chisom Sam-Orji, in his advice, noted that every SME in the state should realize that change is the only constant thing.
He said SMEs should also know that “tough times never last, but tough people do”, adding the need for every entrepreneur to stay focused on creating value and remain resilient.
“This is not the time to be distracted by every noise around your space, but to maximize every time you have to focus on the essentials and keep creating value.
“For some people, it may just be the time to diversify, create new products and services to serve a new or existing market. But this must be based on the facts available to you via research and market surveys”, he said.
The SMEs expert also said the present time in the life of an entrepreneur is a time to cut off unnecessary excesses that surround one’s business.
“Those extra costs that may hamper your growth in this season and beyond, and focus on just essentials.
“SMEs should find certain leverages that are available to aid their business growth. This could be in form of grants, knowledge, and other leverage tools.
“Collaboration is one big way to grow in this season. Finding ways to collaborate with like minds instead of competing could enable a product or service gain advantage in the market and beyond.
“They should also find ways to sustain and grow their customer relationship as this is key to sustaining business flow. They must seek new and efficient ways to serve their customers and gain their loyalty”, he stated.
He further called on every entrepreneur to keep building capacity and never take their eyes off their visions, adding the need to muster every courage it takes to keep building and moving forward.
Lilian Peters