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.

 

Not only is the business of manufacturing a goldmine of data, but even how we find, hire, manage and motivate our workforce is the subject of mountains of information. The process of garnering this information, however, has become an enormous task outside the normal skill set of management. Increasingly we find businesses outsourcing portions of, if not the entire process.

 

This is not to imply that any manager would wish to have less information, far from it. It is that the effort to gain usable, decision-making understanding from the data has been overcome by the methodology for garnering the raw data from which it is distilled. Information carries with it nuances that help determine its meaning in the form of the entering arguments for the collection process. This is the age old recognition that how one asks a question influences the answer to a degree. With the manager expending so much time in collecting reference points and measurements, there is little left to consider the purpose and possible alternative collection means.

 

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.

 

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.

 

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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