Montag, 23. August 2010

There is an ironic truth in the management complaint that computers have made the business so complex that if the power goes off or the information technology freezes up, everybody may as well go home. It has come to pass that we are so deeply invested in computers to operate on a daily business that we can not continue to operate without them. While this is literally true in many manufacturing and financial sectors, it is also beginning to be the state of affairs for nearly every company, and highlights the need for systems management software.

 

Information is the lifeblood of industry, from determining what product or service is needed to handling the myriad requirements that must all be pulled together to create them. Knowing the customer is a complicated business that is not intuitively obvious, and those who crack the code first are the most successful. Information is the key to the code, and information technology allows for its collection and analysis. As this new era of automation matures, the quest for ever greater detail in the information collected and studied grows until there comes a point where there is simply too much to effectively make sense of.

 

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 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.

 

There is a means of restoring sanity to the balance of business using computers; the use of the computer to control the information gathering and analyzing automatically. This is, in essence, using a computer to run the computer, and it pays immediate and far reaching dividends. This gives management the ability to make the decision on what data it needs and in what format it wants the information presented. That accomplished, managers can spend their time doing what they were hired to do; run the company and make a profit.

 

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.

 

So while it is important that someone is aware of the collection and interpretation of all the detailed information a company has, there has to be a way to develop that raw data into useful knowledge for each level of management. This is the crux of systems management software, manipulating data collected by software systems to develop actionable information for leadership to run the business efficiently and profitably.

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