Monday, August 23, 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.

 

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.

 

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.

 

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.

 

Everyone who has been in business knows that it is unnecessary and counterproductive for the CEO of a major company to have to deal with every detail of daily operations. Likewise, managers need to be able to ask operational information of their management system and get the answers they need without having to personally collate the individual pieces of information necessary for their development. This is why it is essential the information be loaded into the system by all employees in a coordinated master software plan.

 

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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