Monday, August 23, 2010

The age of the computer has changed business in many ways, allowing the manager unprecedented span of knowledge and control over all processes relating to his business. This has allowed for the use of data and information on an unprecedented scale. The drawback is that the available data for any business can be unwieldy and it is very possible to drown the manager in information. This is the time to leverage the power of processing to control the computer via 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.

 

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 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.

 

Allowing the manager to spend their time using the data is the goal of information technology, and that means that while they need to understand what and how information is selected for their use, they need to be able to rely on data that is collected and provided to them as they need it. If new data geographic information is useful in determining which stores need more or less product, then they need a means to tell the computer to collect it for them. Systems management software provides the means for management to go from slave to the machine to leader of an industry.

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