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.

 

Information is the lifeblood of industry, from determining what product or service is needed to handling the myriad requirements that must all be pulled together to create them. Knowing the customer is a complicated business that is not intuitively obvious, and those who crack the code first are the most successful. Information is the key to the code, and information technology allows for its collection and analysis. As this new era of automation matures, the quest for ever greater detail in the information collected and studied grows until there comes a point where there is simply too much to effectively make sense of.

 

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.

 

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.

 

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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