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.

 

In the days before the information systems tidal wave, managers still made decisions based on information. Certainly the information was lower in volume and less sophisticated, but it was relevant information the manager could use to operate his business. The advent of computers allowed the manager to widen the pool of data he could tap into and therefore make his decisions more accurately and confidently. As this ability has progressed, the dearth of information has turned into a flood.

 

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.

 

While the data is important and even critical to a competitive organization, the methodology for gleaning information does impact the final data. Once all this data has been collected, the manager must make sense of it and put it to use in a practical way, a difficult endeavor made more complex by not having a good handle on the parameters under which it was collected. This is further complicated by the issue of time, just how much should be spent on the analysis of data?

 

The reason for the explosion of information technology is that, when used well, it is a tremendous boost to corporate efficiency. Communication can be immensely more effective when all the decision makers of a large organization all have the same information at hand when discussing significant strategy and tactics. But it dos not always tell us what is important. A small airline company can produce thousands of data entry points to track and report the systemic progress of getting an airplane in the air on time. But this will never help a manager figure out that what the customer cares about is not the takeoff time, but the landing time at destination.

 

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.

 

If a business is in the manufacturing industry, management does not want or need to spend its time gathering and inputting data about the supply chain, constructing statistical process control charts, or gathering data on trends in the demand for their product or the prices of their supply chain. What they need is that data collected for them by an automated system that collects and collates the information and packages it in a readily identifiable format and delivered to their desktop before the day begins.

 

This is the ultimate purpose of and advantage to using systems management software. It keeps the onus of detailed data input and collection distributed across a workforce with the appropriate specialists. Individual employees input the data relevant to their portion of the company process.The software then executes the appropriate queries to collate the correct data to provide managers with the usable information they need in a format they can readily put to operational use.

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