Problems of Implementation and Utilization of Information and Communication Systems in Business Organizations

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The main categories of challenges which worsen or create implementation, utilization and selection problems include; management process issues and organizational environment issues (Ugwuanyi, 2012). These issues affect the procurement, deployment, planning of communication and information systems in business organizations.

Management process issues refer to the functional operations of organizations which include budgeting, general, and personnel management. Underestimated budgets limit the acquisition of information whereas the right budgets deliberate thoughtful decisions which help organizations to acquire relevant information and improve communication easily.

Organizational environmental issues refer to those factors that are less tangible including the culture of an organization, behavior, and change. Business organizations with people of the same culture make it easy to implement utilization and select information and communication systems. A variety of cultures in a business organization make it more difficult to implement, utilize and select information and communication systems effectively.

Pros of Equity Financing and Debt Financing

 Debt financing helps to maintain ownership by giving people complete control over their businesses, are tax-deductible, and the debtor is only obligated to making repayments while retaining his or her business profits (Mande, 2011). Equity financing raises the funds that businesses can use to trade.

Cons of Equity Financing and Debt Financing

The disadvantages of debt financing include; they are difficult to secure, repayment of debts may be difficult, lateness in repayment affects a person’s credit rating, regular repayments affect a person’s cash flow, and it can lead to bankruptcy (Mande, 2011). Equity financing may lead to the change in ownership of a business when more than fifty percent of the shares are sold.


Mande, V. (2011). Equity or Debt Financing: Does Good Corporate Governance Matter? Corporate Governance: An International Review, 20(2), 195-211.

Ugwuanyi, C. (2012). Challenges to Effective Utilization of Information and Communication Technology in Teaching and Learning. Global Journal For Research Analysis, 3(4), 48-50.

January 19, 2024

Corporations Finance

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