Back to Basics

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

Is there a lesson to be learned here that can be applied to business technology systems? I think so. But that lesson is not that we should return to old technologies. The real key is we need to invest in our technologies wisely. We dont want to hang on to legacy systems just because they work, nor do we want to blindly immerse ourselves in new technology just because its there. The dot-com mentality was wrapped around the idea technology could lead business into new markets with new efficiencies. Too often we saw processes driven by technology rather than business sense.

Technology Drives The Product

Lets look at an example of a product that was driven by cutting-edge technology rather than good business sense. I have seen a proposed product built for use by insurance agents and agencies. It features a secure Web site agents can use as their business center and provides all the basic information they need to conduct business. Customer and contact information is readily available and up to date. Policy information and forms are provided. A planning and activity calendar is provided. Sales tools and critical reference work are available. Integration with carrier policy and underwriting systems is built in. In short, this Web application provides a complete agents desktop, available using any compliant Web browser. Better still, client access is available. An agent can provide customers with a URL, username, and password so they can view their policy information and update certain data such as 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 enough carriers have bought into the back-end policy and underwriting integration. Second, this Web software package also is tightly integrated with PDA/wireless technology. And that cutting-edge technology is what appears to be the driving force motivating this particular product. I see a clear and definite need for Web-delivered agent/agency tools. Such products can be easily built and delivered using existing technology and hardware. Doing the same thing using wireless PDAs requires a willingness to accept a first adaptor role, and in this present economic climate, I dont think many of us are willing to take that risk.

Consolidation

There is a lot of talk of consolidation in the technology trenches these days. Mature technologies and hardware are readily available. There is sufficient competition on the hardware front that it has become commoditized. We are able to provide first-rate equipment for our systems and networks for a fraction of the real dollar cost of a few years ago. We may still struggle with operating systems and productivity suites that are controlled by a monopolistic software vendor.

But that is rapidly changing with the ready availability of quality open-source and free software. I often have poked fun at the Linux revolution, but that is more about the fanaticism of its proponents than about the value of the software. (Open source is here to stay, and that is good.) The facts are therethe real cost of purchased technologies is decreasing, and it will continue to do so. That means smaller budgets. It also means you will be working with a budget that has a higher percentage of costs associated with resources in terms of people than you have in the past. IT salaries were pushed artificially high during the technology boom of the 90s and the Y2K fiasco, and we are now paying the price. Your management team will see a technology budget top heavy in labor costs, and it is up to you to justify those costs. How do you do that?

Its All About the Business

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

Too Many PCs?

The first thing we did was place too many personal computers in the hands of too many knowledge workers. Give an intelligent human being a computer with a spreadsheet, and you have created an IT department in a cubicle. Ubiquitous computers and cool tools create an atmosphere in which everyone is an expert. Users were no longer dependent on computer geeks to provide routine reports and management tools such as forecasts and what-if scenarios. This created a new atmosphere that allowed IT projects to go forth without the in-depth study and analysis they deserve. Once Mr./Ms. Manager created a private database that he/she used to evaluate sales cycles, we lost control of the process. A manager who has learned to build personal spreadsheets to analyze data will no longer be willing to spend the time with a techie to create a system properly. Dont get me wrongI have no problem with individuals using whatever tools they need to perform their jobs. I do have a problem with corporate decisions based on data that is not properly controlled, secured, and normalized. I see individual managers or users analyzing different subsets of data (which they dont realize are different) and then wondering why they are achieving 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 caught up in the new technology, they were demanding that everything be available onlinecorporate information, consumer information, internal manuals, reference material, training material, sales material, whatever. And you know what we did? (I am speaking collectivelyobviously no one reading this article was guilty.) We started throwing together Web sites and intranets and extranets and eCommerce storesall without carefully analyzing the business need for any of it. Technology departments were so enthralled with their new budgets and new importance, they rushed headfirst into the dot-com mindset maelstrom without a passing glance at ROI. Shame on us.

At a minimum, any Web site or Web project should not proceed until 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 same benefits?

This may sound trivial, but it isnt. Corporate America often becomes so enthralled with technology it opts for complex solutions where none are needed. There are times when a downloadable, printable PDF designed for fax-back or mail-in is more efficient than a three-tier Web application. But you never know that until you properly analyze the business proposition. And we shouldnt be afraid to back away from advanced technology when it isnt the best solution.

XML and Peer to Peer and Beyond

Content management is another area where we have seen very expensive, very complex technologies. Givenany corporate business has vast quantities of documents that somehow need to be stored and managed. Does that mandate that we create a high-priced content management system to serve that purpose? I dont think so. Now I am not talking about going paperlessthat is a whole different ballgame. I know of only one major insurance and financial services company that has done that. I am talking about managing documents that are necessary for day-to-day business operations such as manuals, forms, applications, sales tools, procedures, and so on.

When XML emerged as the favored new technology, we were presented with various schemes to get all our data into XML. That data could then be searched and dissected and reassembled in virtually any form. We could then take that XML and serve it up on the Web or in print. I think Boeing was the poster child for this model. Each individual airplane can have its own unique gazillion-page manual dragged out of a massive XML repository. Then that vision wasnt quite grand enough. We were advised to set up peer-to-peer servers that could be located throughout the enterprise and thus provide even more up-to-date data. An attorney in Des Moines can change a follow-up letter that he has checked for compliance on a local server, and now we all have the latest information.

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

Oh, Worm of Many Teeth!

The worm has turned. Corporate revenues are down, so we start cutting costs. IT staffs are a pretty target. It is time we get back to basics. Take charge of your businesss technology by understanding your businesss business. The days of technology workers who understand only technology are over. All those involved in delivery of technology solutions to your customers (internal or external) need to understand the reasoning behind their assigned projects. Dont discover a cool technology and then try to force it on the business people. Find out what they do and show them how technology can improve the bottom line. On the other hand, dont let technology-enthralled managers force a project on your team unless it really is the best solution. At the end of the day, the IT directors and CIOs and CTOs are responsible for ensuring we are using the right technology for the right job at the right time. Dont let enabling technologies disable the business process.