A Consultant's View

Prairie Trail Software, Inc. ..................................................... March 2005

Do You Really Want That?

Sometimes, buying software is harmful to your business. There are accounts after accounts where a business went bankrupt or nearly folded after buying new software. In their ignorance, top management went out and bought the wrong stuff! They didn't know what software really is and they suffered the terrible effects.

Let's start with what in the world "software" really is. It is not just the stuff that runs the computers. In today's world, computers are the nervous system for any business. How those computers operate determines how the business will operate. In short, software is the distillation of management goals, processes, and procedures into the business operation. Software is the means by which management gets done. A mismatch between the management of a company and the software will greatly damage the business.

When a company buys a new software package, that company will go through a transformation. We see that most clearly when we run into a clerk struggling with a new computer system trying to find what next to press and what to enter. But that is not the real transformation of the business. It is in the "back office" where the real transformation happens.

Why is that? In today's business, management is done through computers. Even small businesses are using computers to collect time data and bill customers. Changing software changes what is measured and the processes used to control the business.

What if there is a large mismatch between how a business was running prior to the purchase and how the new computer system says things are supposed to be done now? The business can grind to a halt.

Recently, the Dallas Jail system installed a new computer system. Talk about a mismatch that affected people! Judges have been complaining that they can't find out who was arrested in the last 24 hours. People have been waiting around for days for their loved ones to be "found" in the jail system so that they can be bailed out. The whole incarcerating mess is due to a large mismatch.

Part of the mismatch often arises due to not knowing before hand what the important measurements of system performance are. In any system, there are important measures of how well the system is operating. In the case of the jail, clearly one measure is how quickly a judge can find out who is being held. Yet, the people buying the system didn't consider that measure. When managers buying a computer system do not know what important numbers described what they were doing prior to installing a new system, they won't know if that new system will help or harm their business.

Dave Randolph,
President, Prairie Trail Software

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