Tuesday, August 12, 2008

Stage 2 - Managing IT for the non-technical manager - Business Software

Many business owners are frustrated that their computers don't just run. Everybody tells them that they need to become more technical. Everybody that tells you that is wrong. You don't need to be more technical. You need to understand how to manage Information Technology so that it supports your business.

The second priority for managing Information Technology is to focus on your business activities or business process. These are the activities that you do day-to-day to run your business. It includes everything from giving quotes, taking orders, delivering the product or service, invoicing and payment. These activities may not be the reason why you started your business, but your business can't survive without them.

When you buy software, these activities that you most frequently are targetting. And this is the area where many business owners struggle to get value from their investments. Lack of comfort with technology, lack of understanding of the software, complexity, lack of information are often quoted as issues when projects fail to achieve results. The problem is that most business owners don't spend much time here. This is not their core business, their core skills.

Software comes with a built in set of processes for these activities. Although most have special features dedicated to the specific area or category of business, these areas are somewhat the same. The special features are also the ones that are marketed. When software products are evaluated, they are mostly evaluated on these special features. If, as a business owner, you don't focus on your business processes, you can't assess whether the software product will meet your needs. This definition of "requirements" is often a major cause of project failure.

The e-myth, a book by Michael Gerber describes the situation and problem facing most entrepreneurs as they evolve from Technician, to Manager, then to Entrepreneur. The business process is the step in managing your business effectively. It is also the foundation for the successful implementation of business software.

The next stage is the where the real business value comes from. The first two stages are setting things up for the third.

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