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 information systems became such an integral part of business is their ability to enhance the decision making process. When the use of the system becomes so cumbersome and time consuming that it cuts into the time a manager has to explore data and make operational decisions, it has stopped enhancing the business. The complexity of our tools is rapidly becoming more problematic than running a business without them. While there is certainly reason to expend energy training management on new tools and software, it should not continue to erode their time on a day to day basis.

 

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.

 

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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