Most every company in trouble has poor data and information systems, is run in a highly inefficient way, and most importantly makes decisions without a meaningful information basis. Even many companies that aren’t yet in trouble have serious problems with their information systems and data. So regardless of the state of your own company, pay attention! When you have a substantive, well structured, data gathering and assembling system, smart decisions become much more easy.
’s giant success was largely due to a immaculately sophisticated and detailed system that sifted all their inventories sales patterns, by the smallest sku and by location.
scrapped 800 isolated data bases for one companywide data warehouse, and will know exactly “how we’re doing in Chicago on a given day”.
is utilizing cockpit-like displays of real-time business data and virtual reality of product configurations and usages.
For these big, well managed companies that approach is imperative. But that’s not this story. This story relates to small or medium sized companies, struggling to stay even or get ahead, in trouble or about to be in trouble, and without unlimited IT budgets. Follow these three simple rules:
#1. Pick a person as a surrogate IT system to walk through (acting like an order) and codify the information flow in your business, from order entry to production release to shipment to invoice to collection (or in whatever way your process works). I guarantee you’ll learn so much, without 1$ of IT investment, on how to save money, tighten up your processes, and eliminate unnecessary energies. From day 1, with minimal expense and risk, you will have taken a very substantial step toward eventually having a low-risk, effective, powerful, and integrated dada-minding system.
#2. Then as a second step, have all the key information managing departments do manual information gathering, reports and analyses on the basis of the work in step #1. If you start this way, you’ll get some benefit in managing your business, and also set the stage for a smooth transition to a more automated system. Remember, you cannot change operating habits and customs by injecting a system; do it manually first. Would the horrendously mangled FBI data flow system have worked if the processes and procedures had been worked in manually first? You bet.
#3. Your business is not so unique. When you’re ready to begin automation, never, ever, modify a piece of packaged software or internet-based solution; change your practices to suit. Not only will you save on ongoing IT support expenses, you will expose historic operating practices that are most likely steeped in personal quirks and habits than in efficient operations. Is this in conflict with point #2? On the surface yes but………..Make sure you change those existing procedures that must change manually first, and then the system saves people work and doesn’t become the “enemy”.
Don’t fall into the trap of being consumed by the day-to-day operating decisions and issues; get this process started asap and a year from now you’ll thank your stars, or whomever you thank, for the now accessible and improving information with which to better manage your business. You will now be one level smarter!
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