The Morning Eclipse

Wednesday, February 21, 2007

Computerization is just a waste of time

Yes it is because Information Technology is about bringing valuable information to the decision maker at the right time and at the right moment. Computerization on the other hand is simply like robotizing your factory without any good plans.

What's the difference anyway?

1. Business softwares are information systems. These are systems that accept input, process data, and give out helpful information.

2. Computerization is just recording unto the computer what was formerly recorded on paper.

Which is better?

Of course Information Systems are better. A good example is that of a Customer Relationship Management (CRM) software. This software records each lead you get. Any customer that expresses interest in buying your product is tediously recorded into the software. After a few days, you can then run through the list and do follow-ups on those interested parties. For long negotiations, you will be able to tap into the records and see the progress of any particular lead.

This software is a godsent for companies that are aggressive in their sales initiatives. Companies usually deal with hundreds of leads and trying to make sense of each lead is impossible. The software can then present the records in ways that are meaningful like having "Most possible leads", "Most high-value leads" or "Best-selling products". These lists will focus the sales manager's attention to the big picture and help him make good decisions. With such help, the manager can opt to target the recurrent customers or even push for the best-selling products rather than waste his efforts on the non-moving items.

Choose your software carefully.

Now, don't just rush to implement a CRM or inventory system overnight. Remember, software will just emulate a process being done by the company. Once you've finished the code, the system or process will be pegged. There will be limited flexiblity for changing the process once a software is being used.

If for some reason you suddenly decide to change your system, your investment in your present IT system may be lost and another round of software acquisition will happen.

Be careful and study your business processes well. If you are sure that the software design reflects the actual physical process and there's ample room for future changes then this system will greatly enhance your operations.

Advice

1. Hire a good Systems Analyst and have him design the software very well. After, hire a good programmer who will encode the design.

Software is like construction. You need a good architect to visualize and design your building and you also need a good carpenter to actualize the physical building.





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Success is 1% inspiration and 99% perspiration. Never tire.

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7 Comments:

  • Not all businesses need information systems. But more businesses need computerization than information systems.

    Also, computerization is part of information systems. How can you put into a database what is not computerized?

    By Anonymous Anonymous, At Sat Feb 24, 05:26:00 AM  

  • madali lang to.

    computerization should come with the need.

    but businesses should realize that they should optimize/reengineer their own business processes first, before actually computerizing these processes.

    natnat

    By Anonymous Anonymous, At Sat Feb 24, 06:00:00 PM  

  • I agree! That's the word I've been looking for. Business Process Reengineering.

    By Blogger Arsiph, At Mon Feb 26, 02:40:00 PM  

  • Business Process Reengineering is a drastic approach...

    By Anonymous Anonymous, At Mon Feb 26, 03:27:00 PM  

  • Yes drastic but if you're going down that route of getting strategic advantages through your IT system, you can't avoid BPR. IT should be integrated into your system and not just another layer. This way you maximize the advantages of a centralized and comprehensive information system.

    By Blogger Arsiph, At Tue Feb 27, 07:35:00 AM  

  • You cannot say companies cannot avoid BPR because if you do then you are saying all companies will try with a high risk high reward innovation. Remember BPR is nice but it is not always the path that companies should take. Note some companies are better prepared for BPR while others are not.

    Let me note a perfect example, if you have supply conveyor belt running and lots of boxes are moving. There are times that some boxes are empty and missed out in the checking, and thus are loaded and transported without knowing that the boxes are empty. (Since mass produced, mass transported at once). How do you propose to solve this Arsiph.

    By Anonymous Anonymous, At Wed Feb 28, 07:18:00 AM  

  • Dear anonymous,

    Your example is not enough to merit a BPR. BPR involves studying the whole system and implementing shortcuts through the help of the Information Systems. Before, without control of the information, these shortcuts were impossible or unknown to the process owners. Thanks to BPR, we can unlock these shortcuts and provide savings and increase the efficiency of the company.

    Just an incremental solution can solve your conveyor belt problem. If there is a big loss that happens due to the empty boxes, then adding a scanner at the end of the line will prevent empty boxes from shipping out.

    One thing though, why will the company buy an ineffective machine that misses some boxes? I think they did not study their options well. There must be several suppliers offering different kinds of conveyor belt systems. Now if they bought the machine, then the accuracy ratio of the machine must be acceptable to management. For sure, they'll test the unit first. Lastly, if it is acceptable then we don't have a problem.

    By Blogger Arsiph, At Fri Jul 06, 12:02:00 PM  

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