New technology often promises more than it can really live upto. That little gem is from Henry Petroski, a professor of civilengineering and history at Duke University. His statement cameafter an old technology magnetic tape recorder was recovered fromthe space shuttle Columbia debris. The Orbiter Experiments Recorder(OEX) was a holdover from the 80s that was thought to besuperfluous but will now provide valuable information about theColumbia breakup. The OEX continued to record sensor data after thestate-of-the-art telemetry systems on Columbia failed.

Is there a lesson to be learned here that can be applied tobusiness technology systems? I think so. But that lesson is notthat we should return to old technologies. The real key is we needto invest in our technologies wisely. We dont want to hang on tolegacy systems just because they work, nor do we want to blindlyimmerse ourselves in new technology just because its there. Thedot-com mentality was wrapped around the idea technology could leadbusiness into new markets with new efficiencies. Too often we sawprocesses driven by technology rather than business sense.

Technology Drives The Product

Lets look at an example of a product that was driven bycutting-edge technology rather than good business sense. I haveseen a proposed product built for use by insurance agents andagencies. It features a secure Web site agents can use as theirbusiness center and provides all the basic information they need toconduct business. Customer and contact information is readilyavailable and up to date. Policy information and forms areprovided. A planning and activity calendar is provided. Sales toolsand critical reference work are available. Integration with carrierpolicy and underwriting systems is built in. In short, this Webapplication provides a complete agents desktop, available using anycompliant Web browser. Better still, client access is available. Anagent can provide customers with a URL, username, and password sothey can view their policy information and update certain data suchas address and phone numbers. Pretty cool.

So why arent all agents and agencies jumping on this bandwagon?Two reasons as near as I can tell: First, I dont think enoughcarriers have bought into the back-end policy and underwritingintegration. Second, this Web software package also is tightlyintegrated with PDA/wireless technology. And that cutting-edgetechnology is what appears to be the driving force motivating thisparticular product. I see a clear and definite need forWeb-delivered agent/agency tools. Such products can be easily builtand delivered using existing technology and hardware. Doing thesame thing using wireless PDAs requires a willingness to accept afirst adaptor role, and in this present economic climate, I dontthink many of us are willing to take that risk.

Consolidation

There is a lot of talk of consolidation in the technology trenchesthese days. Mature technologies and hardware are readily available.There is sufficient competition on the hardware front that it hasbecome commoditized. We are able to provide first-rate equipmentfor our systems and networks for a fraction of the real dollar costof a few years ago. We may still struggle with operating systemsand productivity suites that are controlled by a monopolisticsoftware vendor.

But that is rapidly changing with the ready availability ofquality open-source and free software. I often have poked fun atthe Linux revolution, but that is more about the fanaticism of itsproponents than about the value of the software. (Open source ishere to stay, and that is good.) The facts are therethe real costof purchased technologies is decreasing, and it will continue to doso. That means smaller budgets. It also means you will be workingwith a budget that has a higher percentage of costs associated withresources in terms of people than you have in the past. IT salarieswere pushed artificially high during the technology boom of the 90sand the Y2K fiasco, and we are now paying the price. Yourmanagement team will see a technology budget top heavy in laborcosts, and it is up to you to justify those costs. How do you dothat?

Its All About the Business

Information technology experts need to become business experts.We need to lose some of our fascination with technology and examineour proper role in the corporate hierarchy. Way back when (beforethe World Wide Web and before the PC revolution), we realized if wewere truly going to have an impact on our firms bottom line, weneeded to inject information technology effectively into thebusiness process. Systems analysis was the methodology. Systemsanalysts would study in detail an existing business process. Theywould work with the business people to determine exactly how aprocess worked and what the desired results of that process were.Once they had that knowledge, they would determine if that businessprocess could be improved through the use of technology. A planwould be presented to the business decision-maker, and if the newtechnology-enhanced system would result in decreased costs or moreefficiency, it was accepted, then designed and built. It seems wehave gotten away from this process. Why?

Too Many PCs?

The first thing we did was place too many personal computers in thehands of too many knowledge workers. Give an intelligent humanbeing a computer with a spreadsheet, and you have created an ITdepartment in a cubicle. Ubiquitous computers and cool tools createan atmosphere in which everyone is an expert. Users were no longerdependent on computer geeks to provide routine reports andmanagement tools such as forecasts and what-if scenarios. Thiscreated a new atmosphere that allowed IT projects to go forthwithout the in-depth study and analysis they deserve. Once Mr./Ms.Manager created a private database that he/she used to evaluatesales cycles, we lost control of the process. A manager who haslearned to build personal spreadsheets to analyze data will nolonger be willing to spend the time with a techie to create asystem properly. Dont get me wrongI have no problem withindividuals using whatever tools they need to perform their jobs. Ido have a problem with corporate decisions based on data that isnot properly controlled, secured, and normalized. I see individualmanagers or users analyzing different subsets of data (which theydont realize are different) and then wondering why they areachieving different results.

I Want Everything on the Internet!

Just about the same time we were losing control with the PCs,along comes the World Wide Web. Senior executives became so caughtup in the new technology, they were demanding that everything beavailable onlinecorporate information, consumer information,internal manuals, reference material, training material, salesmaterial, whatever. And you know what we did? (I am speakingcollectivelyobviously no one reading this article was guilty.) Westarted throwing together Web sites and intranets and extranets andeCommerce storesall without carefully analyzing the business needfor any of it. Technology departments were so enthralled with theirnew budgets and new importance, they rushed headfirst into thedot-com mindset maelstrom without a passing glance at ROI. Shame onus.

At a minimum, any Web site or Web project should not proceeduntil the following have been asked or answered:

What benefit does this project bring to the organization?
What metrics will be used to measure that benefit?
Is there another (perhaps existing) way to achieve those samebenefits?

This may sound trivial, but it isnt. Corporate America oftenbecomes so enthralled with technology it opts for complex solutionswhere none are needed. There are times when a downloadable,printable PDF designed for fax-back or mail-in is more efficientthan a three-tier Web application. But you never know that untilyou properly analyze the business proposition. And we shouldnt beafraid to back away from advanced technology when it isnt the bestsolution.

XML and Peer to Peer and Beyond

Content management is another area where we have seen veryexpensive, very complex technologies. Givenany corporate businesshas vast quantities of documents that somehow need to be stored andmanaged. Does that mandate that we create a high-priced contentmanagement system to serve that purpose? I dont think so. Now I amnot talking about going paperlessthat is a whole differentballgame. I know of only one major insurance and financial servicescompany that has done that. I am talking about managing documentsthat are necessary for day-to-day business operations such asmanuals, forms, applications, sales tools, procedures, and soon.

When XML emerged as the favored new technology, we werepresented with various schemes to get all our data into XML. Thatdata could then be searched and dissected and reassembled invirtually any form. We could then take that XML and serve it up onthe Web or in print. I think Boeing was the poster child for thismodel. Each individual airplane can have its own uniquegazillion-page manual dragged out of a massive XML repository. Thenthat vision wasnt quite grand enough. We were advised to set uppeer-to-peer servers that could be located throughout theenterprise and thus provide even more up-to-date data. An attorneyin Des Moines can change a follow-up letter that he has checked forcompliance on a local server, and now we all have the latestinformation.

Doesnt this seem like a little more than we need? Insurancecompanies dont manufacture airplanes. And we dont need a network ofpeer-to-peer servers when one (or a farm) will suffice. And do youreally want all your documents in XML? We have witnessed quite afew content management specialists disappear when the venturecapital dried up. That doesnt mean it wont be the right solution inthe futurea future where the solution is less expensive.

Oh, Worm of Many Teeth!

The worm has turned. Corporate revenues are down, so we startcutting costs. IT staffs are a pretty target. It is time we getback to basics. Take charge of your businesss technology byunderstanding your businesss business. The days of technologyworkers who understand only technology are over. All those involvedin delivery of technology solutions to your customers (internal orexternal) need to understand the reasoning behind their assignedprojects. Dont discover a cool technology and then try to force iton the business people. Find out what they do and show them howtechnology can improve the bottom line. On the other hand, dont lettechnology-enthralled managers force a project on your team unlessit really is the best solution. At the end of the day, the ITdirectors and CIOs and CTOs are responsible for ensuring we areusing the right technology for the right job at the right time.Dont let enabling technologies disable the business process.