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Dialogue One: Defining Business Objectives
To be used effectively, technology must align with the goals of the business. This includes having a view of your marketplace and how you address it. UPS, for example, chose to squeeze inefficiencies out of t heir delivery systems and consequently built technology such as the hand-held device used by drivers to capture signatures and delivery information much quicker. The result was a significant savings in driver time allowing for more deliveries. FEDEX on the other hand built a variety of systems to provide a variety of choices to their customers (such as keeping a parts inventory in locations world-wide for a large customer). Each used technology to implement their business vision. What's yours? The question is, "What is the business rationale for this technology expenditure?" Use terms such as, "increase revenue", "decrease costs", and "avoid losses" (such as the carrying cost of inventory). Objectives need to be clear to all. Avoid words like "efficient" and "effective." Objectives such as these, often lead to misunderstandings, frustration, and uneasy feelings: Improve productivity Provide better customer service Replace our legacy systems Provide a technologically sound strategic direction for the company Stating an objective as "shorten cycle-time" or "reduce errors" works, but make sure you can relate it a business goal. Ask: "How does speeding things up increase our revenue, or how does reducing errors reduce costs?" Also, objectives need to be measurable: "Reduce errors in the order processing system by 15%." Measures leave no room for confusion. Bottom line: Can technology goals be clearly seen as contributing to company goals? "Increase revenue by 3% per year for the next five years by getting our quotes to the customer in 24 hours or less." The dialogue is a two-way discussion of business goals and the means to achieve them. Make it clear that the ultimate responsibility of your IT person is to tell you when to not spend money for technology, just as much as when to spend it. |
| ENKI, Inc. offers IT solutions: Computer training and consulting on site or at our site, customized to meet our clients requirements. Our IT training and consulting services include: Project Management, Systems Analysis and Development, Web to Client Server Application Development, Database Design and Development, and Desktop Applications. Enki, Inc. is located in Baltimore Maryland. |
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