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.

 

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.

 

The manager is now faced with so much information about every topic that discerning the valuable information from background noise data is seriously problematic. Hiring decisions used to be made following an interview, with questions and answers and the unquantifiable interpersonal ques an interview provides. Today a successful candidate of yore may be electronically eliminated by an insignificant criterion before an interview is even conducted.

 

While the data is important and even critical to a competitive organization, the methodology for gleaning information does impact the final data. Once all this data has been collected, the manager must make sense of it and put it to use in a practical way, a difficult endeavor made more complex by not having a good handle on the parameters under which it was collected. This is further complicated by the issue of time, just how much should be spent on the analysis of data?

 

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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