| Business people are fond of talking about "Information | | | | to capture total sales volume and revenue, perhaps by |
| Overload." However, is this really the problem? The | | | | item, then maybe broken down into categories (e.g., |
| availability and accessibility of pertinent, quality, timely | | | | high profit items, types, brands or styles, by customer |
| and useful information is an essential condition for | | | | or type of customer, etc.). More sophisticated systems |
| business survival, success and progress. | | | | will provide analytical information and decision-making |
| THE PROLIFERATION OF DATA | | | | support. |
| Of course data is important. Collecting data; numbers, if | | | | BUY OR BUILD? |
| you will, is only a preliminary step. Knowing what you | | | | The classic choice has been between buying an |
| need and want to measure are decisions of | | | | existing information system, and building one |
| consequence. You wil certainly need financial data, | | | | custom-made to meet your needs. Of course there |
| sales data, inventory data, etc. You will probably also | | | | may be a huge cost differential. But there is a third |
| need data about payroll, personnel, customers, | | | | path. You can purchase an Information Systems |
| competition, etc., and much more. | | | | package and modify it to accommodate your unique |
| Computers can churn out data so fast that it's | | | | requirements. However, you may need professional |
| impossible for anyone, or everyone for that matter, to | | | | help to accomplish this. |
| keep up. | | | | Here again, you will have choices. You can find an |
| All of this data can be a bit overwhelming. Managers | | | | Information Systems consultant or you can find a |
| frequently complain that they are drowning under the | | | | vendor that will make the changes to their existing |
| weight of too much data. Technology has, of course, | | | | package. |
| contributed to this groundswell. Just check your email, | | | | Whatever you decide, consider the following: |
| or your in-box, or your files, or... Remember when | | | | --Carefully determine your information needs. |
| paper files were going to be eliminated, and replaced | | | | --Start at the end--- your data output requirements. |
| with electronic files? Well, if it happened I missed it, and | | | | --Look closely at what other companies (as similar as |
| so did the vast majority of businesses. | | | | possible to your own) are doing. |
| INFORMATION vs DATA | | | | --Consider "packaged systems," "custom systems," |
| Data can be useful only through transformation. | | | | and modified package systems. |
| Although we constantly ask for data (i.e., show me the | | | | --Meet with vendors, consultants, etc. |
| data!), most often we mean "provide me with the | | | | --Get recommendations from friends, fellow business |
| information!." In it's most elemental forms data is of little | | | | owners, Chamber of Commerce and Professional |
| value (i.e., "raw" data). To be of value, it needs to be | | | | Business Association members, etc. |
| analyzed and transformed into useful information. This | | | | --Don't rush into your decision. Remember that your |
| transformation process requires that decisions be | | | | decision is an important one, and take your time. The |
| made concerning which information will be essential to | | | | right system can enhance your business, control costs, |
| the success of the enterprise and those reports which | | | | identify opportunities, insure compliance with regulatory |
| afford critical planning and trend insights. | | | | requirements, make management, reporting and tax |
| DESIGNING YOUR INFORMATION SYSTEM | | | | filing easier. The wrong system can be a nightmare. |
| Where to begin is always the question. Well, begin at | | | | Copyright ©, 2008, Dr. Ben A. Carlsen, MBA. All |
| the end! The final output that you need will dictate all | | | | Rights Reserved Worldwide for all Media. You may |
| aspects of your company's information system. So | | | | reprint this article in your ezine, newsletter, newspaper, |
| start identifying, listing, and defining what you need in | | | | magazine, website, etc. as long as you leave all of the |
| your business reports. These requirements will | | | | links active, do not edit the article in any way, leave my |
| determine the data elements that need to be captured. | | | | name and bio box intact, and you follow all of the |
| If you require sales information you will probably want | | | | EzineArticles Terms of Service for Publishers. |