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BETTER BUSINESS
Issue Twenty Four, June 2008

In this months issue:

Information Systems Analysis

Decision making can be a challenge at the best of times. The pressure is on the decision maker to be the expert and make the right choice every time. Depending upon the type of decision we can often not afford to make the wrong one. Interestingly access to information is generally not a problem in these days of great accessible technology such as the Internet. A more common problem comes from being flooded with so much information that the decision maker can almost become immobilised.

Then there are all the different approaches to and theories about decision making. I think my favourite is the famous person, whose name escapes me, who expounded that it is better to make 100 decisions a day, even if 10 of them may be the wrong ones, than to only make one decision a day because you spend so much time ensuring it is correct.

An increasingly common situation in business is the requirement to make decisions regarding information technology (IT) or information systems (IS) expenditure. (I’m sure there is a valid distinction between the definitions of each of these terms but it is interesting how so many people use them interchangeably). One of the greatest challenges for business people being asked to make decisions about IT or IS expenditure is fear and the unknown. Unless you have a propeller hat in your closet you are probably like the majority of the population and have only a limited detailed understanding of technology. Sure, you know enough to competently operate your laptop, cell phone and may even be a whiz at programming the video at home - but when it comes to IT/IS decisions at work, sometimes you feel a bit unsure and this is understandable.

IT/IS personnel are often a different breed. They seem to speak a different language. We don’t always understand what they say but we do know they are important. After all, there is a certain irrefutable logic to the argument of utilising the latest technology to ensure our business processes are as efficient and effective as they can be and then they ask us to spend lots of money because we need the latest ________ (you fill in the gap).

So, how do we weigh up this decision when faced with all the features of this new technology? The following are a list of very useful questions when faced with this decision:

1. Are the features necessary?

2. Do they reduce work?

3. Do they contribute to efficiency and reduce our costs?

4. Will people use them?

Forcing hard and honest answers to these 4 simple questions can help ensure that your IT/IS expenditure decisions will be more based on the business advantage and value, rather than the enthusiasm and prestige of having the latest and greatest.

 

UPCOMING EVENTS

FREE BREAKFAST SEMINAR:    

Keeping Better Financial Records

Are you confused by financial reports? We can help with that with our upcoming seminar. Wednesday 27th August 2008 at 9am (2 hours) email Mark at maldridge@hwi.co.nz or call Bonnie Erickson on (09) 307 8500 or book online at www.hwi.co.nz under the heading SEMINARS.

 

Disclaimer: Information contained within this document is of a general nature and does not constitute advice. Readers are cautioned not to act or rely on it without first seeking professional advice.

 
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