Published
Articles
Originally
Published in The Business Journal of CNY.
Computer
Utilization
spending less and getting more from your Information
system
Computers
can do marvelous things. They generate information never even dreamed
possible 15 years ago. PC's now do what mainframes did a short time
ago. But, I offer a caveat:
Information
input or generated is not necessarily information used or needed!
Information
is only as good as your ability to make use of it. All the computing
power you have will be meaningless and a needless waste of time
and resources if it is not used or understood. There needs to
be an intermediary between the computer software and the end user.
That person should ideally by from outside the computer field, but
with a keen business sense. Too often more computer power is thrown
at a problem when, in fact, more than enough information already
exists.
In most
cases, the problem is either too little or too much information
reaching the right people. In either case my solution is the same;
a middleman who is capable of understanding the needs of the end
user (someone who has been that end user). In many small businesses,
owners are not computer experts and are held captive by the capabilities
of the software or the willingness and competence of the programmer
to define and generate reporting the owner wants and needs. This
is even more acute if the programmer is not on the company payroll.
It does not have to be this way.
Surveys
indicate that over 30% of the software purchased is not used 6 months
after purchase. A failing or poorly operating computer system in
detrimental to company stability, morale, and profits. Software
is being put into the marketplace much faster then the average owner
and his staff are able to absorb it. To try to keep up with current
and future technology without having the basics down and a sound
foundation built is impossible. It is always better to be good at
the basics and skip the razzle-dazzle then to flounder with the
razzle-dazzle and lose sight of the basics. Business is not
that complicated!
An owner
needs to stand firm and insist that he receive the information he
defines as germane and usable (and only that information) in a format
easily understood by him. Software firms have a tendency to believe
that all like businesses, in a broad sense, require the same data
in the same form. The best technological change in the past 10 years
is the proliferation of simplified utility languages and programs
that the user can actually apply to manipulate data to suit his
needs. In many cases, an inside person, with proper training, can
become the utility language expert. Many packages have utility capabilities
that go unused out of ignorance of their existence. Often, once
file layouts are obtained, the mystery disappears and the needs
can be met.
Exception
reporting is meaningful. Reams of reports may be useless or too
time consuming to absorb. Often, all the necessary data is there,
but not easily found by the user. His time is too valuable to be
spent looking for hidden jewels of information. Standard reports
that the computer generates automatically that are distributed but
never looked at should be immediately abolished. A good test is
to omit these reports for a few periods to see if you get any negative
response.
A company
that has a computer and no-one to interpret its information is caught
up in a catch 22 scenario. The answer? You must have that
middleman who can understand both sides of the problem and perform
the marriage. This may or may not be an inside person. If you have
such a person inside, count your blessings. You need not spend a
tremendous amount of money. You do have to find the right
intermediary. That person must have the ability to understand and
relate to the user and the know-how to deal with the software people.
If you do
not have the type of person on staff capable of this function, invest
in a short-term, part-time outside facilitator. Consider 1) how
much you invested in both hardware and software; 2) the information
that you would like to have; 3) the impact this will have on your
bottom-line; 4) how much information might already be accessible
that you do not know how to get out. It really becomes an easy decision.
The need
for the building of history files to draw upon in the future must
be understood. The ability to pull out this historical information
in a format desired by the owner/CEO is priceless. Unique and timely
needs arise when an owner needs information now on a specific issue.
By thinking through specific data entered and assuring that key
data is entered into a separate structured field, you keep your
options open later to use that information meaningfully.
The end
user must have information they can relate to and believe. A key
ingredient is the integrity of the source data input. An information
system with integrity, simplification, and timeliness coupled with
the generation of useful information is a dynamic and almost unbeatable
combination. You might already be investing more in manual labor
to do what your computer is fully capable of doing, then you would
to create the on-going flow of information to provide for a smooth
running company. Constantly look for duplications of effort where
manual labor is used when the computer is capable of doing the task.
Ask your staff to always question why the computer cannot do specific
tasks now done manually. You will be pleasantly surprised. The ultimate
result is a stream of downward delegation to lower paid staff who
now find themselves with excess time. You become the delegator,
manager and decision maker that you should be. Instead of putting
out fires, you will be able to spend your valuable time preventing
them.
The results
are higher profits, more satisfied customers, increased productivity,
more definitive marketing information, better costing, and a non-crisis
mode of management. If you have invested in a computer, use it to
its maximum ability. Done right, this is one of the highest payback
investments you can make.
Dennis Hoppe is President of Change Management Implementation, Inc. in Brockport, NY. He has been a small business advisor to owners of hundreds of companies since 1989. Visit his web sites at www.dhoppe.com and www.hmcexecutivecoaching.com, or call him at 800-724-3525. |
