Stage 3 - Managing IT for the non-technical manager - Business Information

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 third priority is to look for information that can help you manage your business more effectively. Once your technical infrastructure is stable, and you have all of your transactional activity being captured (This is the result of stage 2, if done properly), you have a large amount of data about your business.

I am always facinated by the amount of data that is available about a business that is not being used. Numerous times, I have gone in to help an organization and asked for electronic copies of data from their systems, that I can analyze. Even though the quality of the data is suspect, the data is incomplete, it gives me an understanding of the business, that often is different from people's assumptions. It allows me to question what's really happening. The problem is that the business managers are not getting this summarized information. They are getting too much detail. They can't see the forest for the trees..

Most systems that are implemented are focused on the transaction process. This is necessary, because if the transactions about the business are not captured, you can run the business effectively. However, this is only the starting point. Once this data is captured, you have an opportunity.

• What is really happening? What are your business volumes?
• Who are your best customers? Are they just large volumes? Are they really profitable?
• Is some part of your business costing you money, but getting hidden by revenues?

Once you have data, you can analyze it. If you are too busy keeping systems operational, you won't look at these opportunities (getting past stage 1). If you can get your business software to capture and process the transactions in your business (getting past stage 2), you won't have the data. If your technology mindset is that computers are something you have to survive, you won't be looking for these opportunities.

Technology mindsets are the limiting factors that prevent you from achieving the value that is available for you, if you are loking for it.