Monday, August 23, 2010

It is nearly impossible to imagine a business today that does not have a significant reliance on information technology. The more complex or larger the business is, the greater the investment in and reliance on computer technology. This is true because the computer has allowed us to communicate much more effectively. The problem arises as the computer begins to take more and more time from management creating inefficiency. The solution is systems management software.

 

Business has long had a need for more information. Management has always sought the answer to such questions as what will sell, when it should be sold, how can we get the product to the consumer quicker, and what inefficiencies are we experiencing. With the advent of the microprocessor, the old adage of be careful what you wish for may be an important consideration. We can now measure so many things and compile so much data that the manufacturing process becomes hard to recognize.

 

Given the right motivation, we can identify and collect an endless stream of facts concerning our business. There is information about the historical needs and uses of the product, what time of year it is most needed, what additions or complementary products most affect its use and so on. We can even spit details of which employee candidate pool is the most likely to successfully work in our industry and where they can be most easily found, attracted, hired and motivated. Unfortunately, we have not found a way to make the day longer or management more multitask capable than we already have. We can hire others to do parts of the business, but that in itself complicates the process and while we gain flexibility, we lose control.

 

There is no question that the greater the quantity of valuable accurate data a business has to feed into the decision making process, the more likely a correct decision will be arrived at to the benefit of the company. The problem is knowing how much data is enough, and which data is useful. A manager needs to know what data was collected and under what conditions to understand the information from it. Trying to keep track of all the individual input through his area of operational control necessarily requires precious time sacrificed from running the business.

 

The reason information systems became such an integral part of business is their ability to enhance the decision making process. When the use of the system becomes so cumbersome and time consuming that it cuts into the time a manager has to explore data and make operational decisions, it has stopped enhancing the business. The complexity of our tools is rapidly becoming more problematic than running a business without them. While there is certainly reason to expend energy training management on new tools and software, it should not continue to erode their time on a day to day basis.

 

It is the essence of management to see the bigger picture, to make the decisions that will not only allow for the day to day business to get done, but to have a solid feel for what needs to be done to stay in business tomorrow. These two aspects of leadership conflict with a critical element of the reality of management, balancing time requirements. To that end, information systems were initiated to allow the manager greater access to information more quickly. While this has been a success, the data has become increasingly complex, and more and more time is eaten up processing it.

 

All leaders intrinsically want to have a feel for what their company is doing. There is no scarier feeling than being responsible for something and not having the first hand knowledge of what is being done to make it happen. This does not mean that the CEO of a company needs to know the name, start time destination and cargo of every truck carrying product within his company, that is what the management hierarchy is about. Unfortunately, the nature of man is to be curious, and if the data is available it is difficult not to get captured in the mountains of minutia.

 

Allowing the manager to spend their time using the data is the goal of information technology, and that means that while they need to understand what and how information is selected for their use, they need to be able to rely on data that is collected and provided to them as they need it. If new data geographic information is useful in determining which stores need more or less product, then they need a means to tell the computer to collect it for them. Systems management software provides the means for management to go from slave to the machine to leader of an industry.

No comments:

Post a Comment