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Characteristics of a good business system

A business system is the framework of principles and practices in place within an organization to minimize inefficiencies, improve operations and increase revenues. Since business systems play such a crucial role in the functioning of an organization, it is important to recognize the characteristics of a good one, so that you can get the right one in place for your needs. Listed below are the characteristics of a good business system:

Having a simple system that is easy to implement and modify is paramount to empowering the organization. A complex system may account for more minute events, but it would also require more time and money in execution and maintenance.

Characteristics of a good business system

Next, the business systems of an organization should provide the optimal procedure for the functioning of the people, technology, and strategies. The optimal procedure would be one which presents the organization with a great way of handling the components of the system.

Just as an organization has a management hierarchy in place, it must also have a hierarchy of accountability associated with the business systems to ensure that there are multiple people involved in each strategy formulation and policy implementation.

Each business system must also be focused to achieve not only the objectives and goals of the system itself, but it should also contribute towards the business objectives.


All business system objectives should integrate and form the basis for the achievement of the business objectives.

Business systems must ensure that the organization’s objectives are customer-centric so that the procedures facilitate increasing revenues and profits. Modern business systems also account for employee-centric objectives to also form part of the procedures. All procedures that are part of the business system should be recorded so that they can be used for analysis, and aid in future decision making. The records will allow the organization to understand real-world implications of the policies and decisions made.

The evaluation and updating of a business system must form part of it so that the system can fix problems that might occur in the procedures. This will allow the system to function more efficiently with minimal interference, except where required.

Thus, a good business system should aim to evaluate how successful the business procedures are so that the policy and decision makers in the organization will be able to modify their strategies based on the data. More efficient strategy formulation can play a crucial role in improving the operations of the organization, and by extension the satisfaction of all parties involved.

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