' Just as business success breeds business success, IT failure breeds IT failure. Thus many companies become resigned to remaining in an information systems rut, or are driven to panicky investments'

'The challenge to the entrepreneurial company is to break away from the tradition of data excess and information poverty and enter the world where data is invisible and information is taken for granted'

This following article by Vic Forrington outlines a low cost, rapid response approach to providing Board-level management with the information needed to run a dynamic modern company.

Replace data albatross with the info eagle

First published in Iod 3 Counties Director January/February 2002 Issue 30

The modern entrepreneurial company operating in today's volatile business environment must grasp and exploit opportunities when they can and resolve difficulties quickly as they arise. To succeed the company must make fast decisions, and make far more right decisions than wrong. As well as experience, gut feeling and flair of the entrepreneur this requires meaningful information that is both accurate and timely. Information technology is both the source of much of the raw data necessary for decision making and the means of translating it into succinct and pertinent information to the decision maker.

However despite forty years of development and unremitting hype, IT is more often a constraint rather than a facilitator to the growing company. Common problems include:

• Too much and too detailed raw data - unable to see the wood for the trees.
• Key data missing - the information jigsaw lacks vital pieces.
• Manual manipulation of data into meaningful information takes too long - the opportunity bus is missed.
• The information systems are out of date - they support yesterday's business, not tomorrow's.
• New systems take much longer, cost much more and deliver much less than promised - a data albatross rather than an information eagle.

Major and inter-related contributors to this lack of success have been massive overselling of benefits by IT suppliers, limited business experience of internal IT staff and lack of Board level appreciation and attention to the issues involved. Just as business success breeds business success, IT failure breeds IT failure. Thus many companies become resigned to remaining in an information systems rut or are driven to panicky investments in high cost outsourced 'panacea solutions' which despite the glossy brochures, multi-media Internet presentations and incomprehensible jargon, end up even worse than the earlier much less costly failures.

Fortunately low cost, low risk and speedy methods are now available to break out of this vicious circle. The key component is the innovative use of high productivity development tools in the hands of experienced business-orientated system designers working alongside the company's Board members and senior staff. This allows systems to be introduced that are entirely specific to the company's needs, without the cumbersome and costly excess baggage of irrelevant generalised facilities and ad hoc customisations found in most 'standard' software packages.

So how does the Board make this happen? The essentials are:

• Board recognition that information systems are just as important as other corporate resources (staff, finance, products/services, customers, suppliers, etc.) and hence warrant similar attention.
• Commitment of time, energy and reputation of at least one Board member to information systems success.
• An information systems development resource that has the business knowledge and technical skills to translate ideas and concepts into well-engineered reality.

The last point is fundamental to success. In practice this will usually mean the selection of an external partner as only the larger company can seek to justify the employment on a permanent full-time basis the range of skills required. Most prospective partners can be assumed to have the necessary technical skills, and many should have the system design and project management expertise. However this is not enough; the selected partner must be able to demonstrate and apply business experience relevant to the specific company's needs. It must be able to discuss and understand the business at Board and senior staff levels and identify the real opportunities for the innovative use of information systems rather than merely reflecting the relatively inexperienced, in systems terms, views of the internal personnel.

The individual assigned by the selected partner to be responsible for the development programme will, in effect, act as a Board member during the project. She/he will be expected to contribute not only highly specialised information systems expertise but also to make a significant contribution to the overall business strategy and direction. Only then can it be stated that information systems development is truly integrated into the business. Thus the assessment of the qualities of the team leader against the above requirements is fundamental to the process of selecting the information systems partner.

The above approach gives the following highly tangible advantages:

• The information systems implementation stages are in line with the business priorities - not constrained by a predetermined package implementation sequence.
• Stages take weeks (or even days or hours) rather than months or years - if you want it now, you can get it now.
• The systems match the company's real needs - not constrained by 'work arounds' to make the company fit the package. Each stage is separately costed, justified and proven before further investment - risk is limited to current stage only.
• Development programme is inherently flexible, allowing information systems to stay in line with changing business opportunities/priorities - business pragmatism rather than systems 'Grand Design'. Outsourced services respond to peaks and troughs of systems demand - no on-going systems development overhead.
• Information availability no longer a constraint on business development - the data albatross is replaced by the information eagle.

The challenge to the entrepreneurial company is to break away from the tradition of data excess and information poverty and enter the world where data is invisible and information is taken for granted.