Sometimes enterprises can get many more times margin than it is expected and sometimes they only generate revenue in low level. This margin varies from time to time and enterprise to enterprise. Some enterprises are scaling ambitious growth and some are running out from the market. Business is not only business now. It is Beyond.
Nepal is experiencing very bad political situation which is leading to adverse environment to business organization. The banking and financial industry has grown up to unnecessary volume concentrating in urban and less productive areas like real estate and margin lending. The investor and management are so greedy that they do not look into themselves and their own capacity. The closure of a financial institution has come just because of mismatch in asset and liability. To earn more profit they just invest more money on long-term investment from their short-term resources. Do we really need to tell management of bank and financial institution not to make any investment in long-term from short-term deposit? This statement is basic for business and economics. We also visualize some fraud cases and overlook from central bank, which is beyond people’s imagination. The faith, respect and image of central bank and whole banking industry is decayed. To regain it, a long-term vision, hard-work and satisfactory service delivery is required with very careful handling of the financial business.
To run a business in this era, we need some competitive advantage. It is not possible to point out the list of competitive advantages. If we take example of tourism industry, it is seasonal and no innovation has been done for years. Nepal is unable to attract high value tourist for years due to the lack of good hotel facilities and uncertainty in transportation. Hydropower has become only word of mouth to the political leaders to distribute dreams to the public. It just becomes news everyday but still people facing 16 hours of power cut in household and business. If we take human resources into consideration, Nepal is supplying graduates to very good American and Australian universities with less chance to get returned. Malaysia and Arab countries enjoy less expensive workers from Nepal. No projects are here to consume the human power. If we talk about the manufacturing and service sector, can an investor think of doing business in 16 hours power cut, unnecessary labor demands and unpredicted transportation, supply and distribution environment ?
Socio-Cultural Environment is also not favorable to the business. There is fold up of a lot of schools due to the absence of student and teacher during the Yarchagumba harvesting time. Attitude of people to work, family system, caste system, religion, education, marriage is also not supportive to the business.
Everyday there are immense changes in products, services, lifestyles and living conditions. These changes must be scrutinized by every business unit and should adapt to these changes. The research, design and production of technological devices will occur in the other countries and enterprises in Nepal can not get advantage of them because of knowledge, financing, human resources and availability.
The enterprises we see in Nepal are having improper use of information technology devices and services. In Nepal, people think Information technology is just hardware and equipment. The organizations are totally focused on purchasing hardware equipment and no budget allocated for software systems. Many organizations use computers for typing job in the place of old-fashioned typewriters. Software systems are tools for simplifying business process, achieving goals, making easy to work flow, scaling high volume of business and digitization. It also increases competitive advantage to the organization for profitability, market leader, globalization and productivity. Industry standard software systems are so intelligent that it maintains 100 percent accuracy and scope of business innovation.
The psychology of people leading, working and providing support to Nepalese organizations are having on the top of mind with less investment in Information technology systems which results in lower configuration in service delivered, lower quality assured and unsustainable service offerings than anticipated. The reason behind this may come from budgetary constraints as well as limited knowledge in use of information system.
The enterprises normally do run their Information technology devices until the death of devices or sometimes these devices are used after the logical expiry of the devices. No enterprises do follow very strict procurement formalities and dispose policy. These enterprises are at risk of information theft and loss, which actually is business risk. The other part of business is Nepalese Enterprise are not conducting Information system audit. How chief executives are informed their spending is in right track ? Is it working efficiently and economically ?
Banking is major industry in Nepal with good volume. Banking can not remain live if other industry is facing problem ? The good governance has been issue with banking industry too. The whole banking industry runs on information systems. If the Information systems used in banking is lower configuration what would happen to investors, depositors and other stakeholders. The unaudited information systems itself tells something critical. If something goes wrong through Information systems who is responsible ? Who loose most his asset ? The management, Investors, customer, apex authority and government have to take care of this.
It has been visualized that if somebody asked something to do a job of without knowledge. He will accept the job bad back to his seat starts search on Google how to do it. He used to follow the steps described in the Google result. Business decision will be taken on the basis of a simple Google search. Is Google search is enough for business decision ? What happens is Google or like search engines showing 60 percent accuracy ? Many people do believe that Internet is source of information but most of the truth are away from Internet. Nepal is far behind from knowledge economy.
Many organization run their business on good faith. Everybody in the organization believe that no one will come with devil mind and the business is protected forever. We can see clearly that no one is governed with clear cut rules, regulation and even policy. No rules, regulation and policy really means that the enterprise is running on good faith. Is good faith is really enough to run an enterprise ? The competition, globalization, life style changes and lower availability of resources triggers some incident. The incident with bad results turns to accident when the enterprise can not bear the cost. These incident become so fatal that enterprises can not come to status-quo-ante. Make sure, you are safe with all above scenario prevails in your organization and the organizations you significantly rely on.