So, your company has fully internalized the message that businesses need more agility. You’ve made the most of cloud-based computing, an agile workforce and have gotten your employees to think like disruptors. You’re on the road to enabling enterprise Digital Transformation. There’s just one issue: Security. It turns out that hackers have already…
This article is very interesting as it deals with what we are all concerned about today and that is security. Hackers are very agile, so why can’t we be? That is a big security risk that has to be reviewed and strengthened. Hacking is a huge issue that we have to try to mitigate if possible.
Types of BI
Business Intelligence (BI) is extremely popular and is a top focus. There is the traditional software, cloud services, mobile apps and social media. What type do you need for your business that will help and not hinder progress? Choosing the wrong software to fix your business problem(s) or having end users who don’t understand the new programming will cause failures.
- Not defining the business problem(s) – Don’t jump the gun until you know exactly what you need. Buying for general capability is the worst mistake you can make. Look for defined problems that need solving.
- Not getting commitment from end users before choosing the BI solution – Make sure to get people’s opinions of the selections available as they’re the ones who will ultimately use it every day. Otherwise, the tools will be ineffective as no one will use the upgrades. They have to approve of what might become the new initiative, or they will never use it. Don’t tell them they have to use it, help them to understand why they’ll want to use it when it’s up and running.
- Not considering security or legal requirements – Follow data governance when selecting new solutions. It protects both your company and customers.
- Don’t get swayed by features and forget legacy systems and integration – Most companies look and rank BI software by the features available. This is wrong. You need to look and see which app will be able to integrate with what system you use already. There has to be an ability to work with all your other business systems or it won’t work correctly.
More BI Mistakes
- Not choosing a program that can scale and adapt to change – Choosing a solution that isn’t flexible is one of the worst things you can do. Self-service analytics are now the norm, where they can work well with new data sources. The ability to scale is necessary is as the system grows, the software has to keep up. You don’t want to have to buy new software every time the business grows.
- Not considering the mobile workforce – You have to consider mobility. Being able to use the new BI solution on a smart phone is a great advantage and allows for more productivity.
- Rushing implementation – Never rush the upgrade. Mistakes are going to be made with possible cost increases.
- Insufficient training and underestimating costs of training – A few weeks of training isn’t going to cut it with today’s BI systems. The systems in place now are very complex. End users need a lot more training to work them. There’s also the need for ongoing training to keep the end users in the loop for changes to the programs.
- Not leveraging intelligence and reporting – If you’re going to collect all this data, then make sure to share, analyze and act on what is found. It’s a waste to buy the new BI solution if not used properly.
Uses for Upgrades
This software is used in many ways. It is used to build reports, find risks and opportunities and forecast trends. Don’t become complacent with pre-defined sets of reports. You’ll miss changes that are occurring in the business world.
Business Intelligence and Analytics
What is the biggest challenge today for upgrading your business? You’ll find the answer through using tools enabling business intelligence (BI) and analytics strategies. It seems that businesses are looking to adopt BI and more advanced analytics to achieve bigger gains. Upper management needs to explore more information to gather key areas that they feel need improvement.
The Biggest Challenges:
- Data Preparation – The ability to complete data management in putting together and cleaning data before compiling reports and analytics.
- Skills and Leadership – Is there a structure focused on needs of both BI and analytics along with more complex methods?
- Ease of Use – Can those who are less technically inclined be able to use the system?
The biggest gaps are in data prep. It is more difficult and more complex than it seems. The size of the company and how they are using BI and analytics doesn’t matter. They all see big gaps in how they filter, transform and prepare their data. Good data gathering and compiling is completed. It helps find both relationships and potential outcomes quickly. The information found here will help improve your company’s productivity and build competitive advantages. Consider automation and self-service also for those in the agency who are less technically inclined. Analytics are behind BI. Improvements are needed to be able to prepare, augment and explore the data gathered. This will help your agency to find root causes and trends. You can then build and update predictive models through using machine learning.
Skills and Leadership
Skills and leadership are key too. Agencies strong in these areas still say that there are many challenges in innovation, creativity, and leadership. Shown executive support enforces the need for upgrades or change just will not happen. If there’s no strong vision and support at this level, the initiatives will fail or underperform. A leader needs to make sure that they openly show the value of success from the new initiatives.
Ease of Use
Overworked data scientists or analysts already in your company because of changes being implemented need help. In this case, it’s better to create self-service and interactive tools where everyone can find them. Nontechnical users will need the guidance, and instead of overworking your data scientists and analysts, this can help. There’s software built to aid building systems that can detect relationships, correlations, segments, and outliers. It could use natural language to create queries. It could present context-based narratives of important findings. All sorts of things could be created with the new software to help the organization.
Increasing adoption of BI and Analytics
- Invest in data and data prep
- Nurture culture, skills, and leadership
- Keep self-service and Ease of Use in the Forefront
If the challenges of gathering and preparing data are not addressed, it will become more difficult to find a use for BI and analytics. If strong leadership isn’t used to make the employees excited to use the new technologies, the initiative will be a failure. And if ease of use with smart/automated capabilities isn’t used, it’ll hinder adoption of BI and more advanced analytics. Consider these things before upgrading your systems.
Definition of UOA
UOA is an business method of performing tasks based on the hierarchical composition of different units of software. These units give support to both operational and actions completed in technological systems. UOA creates groups of software fully supporting purpose, function, behavior, and structure of these systems. It helps clarify and strengthen architectures through finding right places and owners for assets. Included are web applications, mobile apps, web services and business processes to name a few. The unit then becomes both a construct and micro-platform that allows other components plugin.
Key Points of UOA
- Creates digital constructs for actions completed and operational support
- Views companies as a Composite (control) or Leaf (functional)
- Unit software has to be comfortable and work in the unit assigned
- Every unit has to have formal software boundaries. They represent contracts between assemblies both in and out of the agency.
- All units have to run operations implemented as business processes that are executable. Every process is owned by one section only.
- There is particular emphasis on control units. It causes a weakness in the company as only a few personnel will know how to run it.
What Does UOA Do?
UOA uses Systems Thinking to define problems. It uses Organization Design to configure enterprise and composite units. SOA uses constructing unit boundaries, and Business Rules to govern the system to name a few.
UOA allows practical and natural approaches to satisfy the needs of users. It completes this through unit orientation and clarity of what the system is supposed to do. Hierarchical unit structure helps define roles and spreads responsibilities between all the units. It creates a stable system where it can adapt, develop and grow fast. Process-centric (inside) and event-driven integration (outside) is where processes pass through the units to complete work.
Differentiation between functional and control units is defined here. Functional (leaf) units don’t contain other groups. They provide services and products, all digital. Control units have more entities in them. Actions are directed, coordinated, measured and controlled to ensure best means to get the bottom line. There’s a clear understanding of what everyone is to do in the company and delegates decision making to the right people.
Supported are operations interactions. The direction of vision focuses towards products and services instead of the process is itself. The quality of communication between system parts is considered more important than the quality of parts. The character of interfaces measures effectiveness.
If a company’s units support strongly built digital constructs that entirely concentrate on the customer, everything will grow. Effectiveness, efficiency, and efficacy will improve. New capabilities initiate with further development. Growth through cloned abilities will occur, while agility will increase speed. There are numerous opportunities abound.
What Is ERP?
Enterprise Resource Planning (ERP) has to be considered part of the plan when upgrading your system. In this information technology (IT) has to be combined with the business process to help bring a competitive advantage to others in the same industry. It is anything from reading an e-mail to updating records of procedures. An ERP is an application that uses a centralized database to run the entire company. This medium allows data from one department for viewing in other branches of the same company. It can be bought either as modules for different parts of the agency, or a subset. ERP systems are there to enforce processes that your business will adopt.
- Not explaining what new systems means to users before starting the project – If the users of the upgrades don’t know why it’s happening and are in agreement, the update will fail.
- Not load testing systems with scripts and end users – How do you know if your file loads are typical? Load testing with scripts and users will complete real tests in this area to make sure that the process will work or not.
- Not performing tests of the new process to see if it works or not – Will everything work as planned?
- Not taking change management or testing sincerely – Know everything you need to know about the change and regression tests beforehand, so you aren’t surprised by “new opportunities.”
- Assigning internal personnel as project managers – Get a consultant project manager as they will focus on the upgrade only. They’ll catch the mistakes made and keep things on schedule and budget.
- Not telling others of changes before they happen – End users don’t like change so make sure to communicate before so they aren’t caught off guard.
- Giving classroom training only – Allow for video training that the users can find and use if they come across a problem they can’t fix. Create a Knowledge area that they can access to see before elevating.
- Not moving components to open business standards – This speeds up future upgrades that will happen. Try to change reports and interfaces to open business standards. It will help a lot in the future, and possibly save money with more completed upgrades.
- Not archiving before upgrading and keeping up security during – Archiving before upgrading will save you time and money. It speeds up queries on large tables, and table conversions as they are will run quicker. Security wise, upgrades are to be need-to-know only. There’s no use in upgrading if spies find a way to get the information out to your competitors.
- Assuming internal tech personnel will pick up years of experience in weeks – Keep the consultants around for a while after the upgrade is complete. Enhancements aren’t easy to learn, and someone has to be there who knows how to run the system. Or at least until the first workers understand the system as well.
Impact of IT on Business
IT has a significant impact on how companies design, build and support their business processes. Information systems have a considerable effect on how these methods work. Agencies improve effectiveness and quality of products and services through empowering their employees. Something to consider.
Strategic Information Systems
Strategic information systems (SIS) are used to support and shape business competitive advantages. SIS is defined by its way to be able to change how business is conducted. It is not classified by structure, functionality of areas, or support systems. Anything that is used to change goals or processes of companies add competitive advantage, therefore becoming strategic information systems.
The competitive strategy is how the company is going to compete in the future. What the goals will be, and new plans and/or policies needed to implement everything. The advantage is being able to measure cost, quality and speed over competition. SIS assists businesses gain the advantage through adding to strategic goals of organizations. It is also measured through the increase in performance and productivity, therefore making them more powerful than the competition.
The digital economy is affected all the time as changes in technology occur. This causes change in business models in order to keep up. The core business isn’t changed to keep up with the digital economy even though it feels like it has. For the most part, businesses use the tools offered by the Internet, but nothing else. There are two questions to ask here…
Where does my competitive advantage come from in my business and industry?
How can information technology and the Internet help?
How is SIS Looked at Now?
Most companies consider SIS more of an outwardly focused tool. It aims at increasing direct competition and is visible to all. Now it is more used internally. It focuses on employees’ productivity, smoothing business processes, and helping to make strategic decisions and isn’t visible to all.
Role of IT in Strategic Management
- Innovative Applications
- Competitive Weapons
- Changes in Processes
- Links with Business Partners
- Cost Reductions
- Relationships with Suppliers and Customers
- New Products
- Competitive Intelligence
How To Use The Internet As a Tool
The Internet is the most important tool in competitive intelligence. It is so easy to look up information on the competition. The information that is gathered then can be analyzed further by what is called intelligent agents and data mining. Both deal with software products to help them do their job. Here are some ways to do research on the competition:
- Review Competitor’s Web Sites
- Analyze Related Electronic Discussion Groups
- Examine Publicly Held Financial Documents
- Market Research on Your Own Web Site
- Use Information Delivery Services like My Yahoo
- Use Corporate Research Companies
There are numerous other ways to gain competitive advantages over your competitors. The key is to gain and maintain a sustainable strategic advantage that can be held for years to come. It is suggested that people, technology and shared risk and responsibility will help keep the advantage now. It is so difficult to otherwise as there is so much innovation occurring now.
What is Digital Transformation?
Numerous changes happen where digital economy of business is connected real-time due to new technologies. Digital transformation is directly related due to this. Just about all small and midsized firms have some sort of resources in place. It can be anything from newer and more powerful software and/or computers, new forms of communication or cloud computing. The company has to ensure good implementation and integration of programs to increase performance. How to do this is:
- Hyper-connectivity – Anytime/Anywhere communication
- Unlimited Computing Power – Caused through diverse platforms
- Cloud Computing – Easy access to hosted software/services
- Numerous Sensors and Mobile Devices – Supply continuous streams of information and ways to access them
- Cybersecurity – Lessen internal/external vulnerabilities
Why Buy At All?
Faster growing companies look at ways to drive revenue growth, increase productivity, and get new customers. This is supported through the use of advanced technology. The question becomes what is the best approach to get and use new technology in order to support objectives? Most are buying advanced software applications to help grow their businesses. Buying collaboration software, CRM and ecommerce all help growing businesses through helping internal productivity and efficiency. When one application is updated, they all are. This improves performance of the agency as a whole.
Causes to Upgrade
Most upgrade due to partner and/or customer needs. Their main focus is to improve internally. External influence is also taken into consideration though. Who wants to chase away potential clients due to not listening to their needs too? This is key in order to keep up with competition and the environment that they work in. Effective coordination of technology brings in greater performance results. It is greater then the sum of the parts bought to improve the system as a whole.
The departments that benefit the most from these improvements is sales and marketing. Everyone from services to manufacturing to wholesale and retail benefit too. Internal processes is also up there, but externally faced business is considered more important. This is the rank from highest to lowest in importance:
- Production / Operations
- Commerce / Ecommerce
- Customer Service / Call Center
- Supply Chain Management
- Strategic Planning
- Leverage Technology
- Digital transformation is a continuing process
- Direct / Continuing participation and support of senior management and executives. If there is none, or it is perceived as none, then changes will be hard to implement.
Key Questions to Ask
Key questions to ask yourself and those involved in the process of beginning the changes are many. Where are you falling short compared to other companies? What is the competition doing that you are not? Do you have a strategic plan in place that supports digital transformation? Some things to consider…
The strategic management process is where the company’s strategy is defined. The managers choose types of strategies they want used to reach higher performance levels. It’s a continuous process that focuses on businesses and industries where the agency is involved. The company looks at the competition and figures out ways to get ahead of them.
4 Steps to the Strategic Management Process
- Environmental Scanning – Collect, analyze and pass along information for strategic means. Analyze internal and external factors that influence the company. This will be completed periodically, and improvements can be done continuously.
- Strategy Formulation – Choose the best course of action. Corporate, business and functional strategies are created here.
- Strategy Implementation – Work the new strategy as it is intended to. The design of processes is completed here like the business structure and distribution of resources.
- Strategy Evaluation – The final step. Review internal and external factors, measure performance, and take corrective actions.
Why Use The Strategic Management Process?
Always use these four steps in chronological order to create new strategic management plans. There is no stopping as the company realizes that all the steps work together and in chorus. The agency will evaluate and control business and industries where the organization works. Most of all it evaluates competitors and sets goals and strategies to better compete with them. As a result it reevaluates strategies in place to ensure implementing is done correctly.
It seems like the question that has to be asked needs to be; is it successful or does it need to be replaced? Roles of the strategic management process are to create functional areas and make sure they work well together. Furthermore to keep an eye on goals and objectives of what the business wants, and make sure that they are followed and used correctly. Especially relevant is that if it isn’t used correctly damage can be done to the company in question.
Strategic information systems planning (SISP) is a very important issue that has to be considered when upgrading. Information technology (IT) use along with proper planning can help increase business success. SISP is used as it’s considered a great tool to support the company. It makes sure that IT activities go along with what the company does and needs.
What is Strategic Information Systems Planning?
SISP improves organization performance however upper management wants to focus. The aim is to achieve maximum benefits from resources while reducing risks at the same time. All resources work efficiently, effectively and competitively together to make the company stronger and more adapt. Especially now as IT is an important part of any company. Strategic Information Systems Planning is intended for technology that’s used at the company level. It needs to mesh with what the needs and strategies are of said agency.
- Align IT with business
- Gain competitive advantage,
- ID new and higher payback applications
- Increase top management commitment
- Improve communication with users
- Forecast IT resource requirements
- Allocating IT resources
- Develop information architecture
- Increase visibility of IT
4 Dimensions of SISP
SISP helps the above mentioned by addressing future needs for IT/IS resources with business plans. There are four dimensions included to make sure everything is included.
The first three are considered goals while the fourth is considered improvement over time.
SISP methodologies include gathering information and making plans comprised of one or more techniques. The techniques can be viewed as abstract systems. They change organization input into a strategic plan for output. Some of the more popular planning techniques are:
- Looking at Stages of Growth and Critical Success Factors – Here flexibility of needs can be used as a measurement tool. This methodology needs support of others. CSF alone makes information requirements difficult to reach.
- Competitive Forces Model and Value Chain Analysis – Michael Porter’s model analyzing threats of new entrants and bargaining power of buyers and suppliers. Also reviewed are threats of substitutes and rivalry of competitors. It’s used to get products and services to buyers and servicing. It also finds primary and support activities that can add value to the product or service.
- Scenario Planning and SWOT Analysis – What will the future bring? Actions to take if future is going in a direction not wanted.
Criteria of Choosing
The criteria of choosing methodologies include availability of resources, internal policies and preferred suppliers to name a few. It would be the company’s choice as to what is more important to them. Which they would want to improve the most?
SISP leads to good planning. This in turn helps companies stay ahead in competitive environments. You have to make sure that top management stays aware of best processes for SISP. They need to stay committed and involved in order for it to be considered a success.
There is no best way to implement SISP. It’s up to the companies which way they want to focus what they want to improve. The success would be applied to how well they used methodologies in their planning process. Were success and failure factors applied while planning and implementing the changes? These are the questions that need to be answered in order for Strategic Information Systems Planning to be considered a success.