Posts for September 2010

Are your IT systems holding you back?

How often do you exclaim “why won’t you work?” as you stare in dismay at the latest piece of technology that’s failing to do what it's meant to? Yet despite the frustration, I’m sure you’ll agree that your business could not run without this very technology. You probably put up with the bad moments for the sake of the system's overall performance, but have you ever questioned whether it could be holding you back? After all, why accept good when you could have great?

Don’t settle for second best

Your employees use your IT systems every day, so listen to their remarks about the limitations and issues with your systems.  In addition, is there something you wish you could do but have been told is not possible with your existing set up? Research what systems your competitors use. You may find something better suited to your needs, with more options for expansion and improved efficiency. My advice is don’t settle for second best just because you are familiar with the existing system. Open your mind to how things could be better.

Are your systems future proof?

Whether your IT system is running smoothly now, or - heaven forbid - already struggling, how easily could it cope with a surge of 20% or more in trade? If you stumble across the golden idea that can push your company to the next level, you do not want to be held back by anything - least of all something you have had control of all along. Your staff can learn new systems more easily than you think, so change is manageable.

Automation is king

Your business can get big efficiency gains by automating tasks and ensuring seamless interaction between different systems, whether in-house or with crucial external suppliers. Whether it is optimising stock turnover, maintaining customer details, or simply managing your product database, the more your computer system can help you the better. Consider which frequent tasks are crucial to running your business, then think about how you could automate them. Try to identify where your system could be doing more.

Talk to your existing IT supplier, and your competitors’ suppliers. You’ll be amazed what a bit of competition can do to incite creative thinking and find improvements for your company. I speak from experience. A large part of the excellent customer service offered by both my companies is down to close integration of our systems at every level. We’ve enjoyed 70% growth in a 12 month period and become 40% more efficient over the same time period. To me that highlights how powerful a new system can be. So question what you’re working with now; you may like it, but is the grass greener over that hill? John Sollars is the managing director of Stinkyink.com

10 out of 10 when you focus on 80/20

Vilfredo Pareto has a lot to answer for. Nearly a century ago, this Italian economist instigated the now infamous ‘Pareto’s Principle’, or ’80/20 rule’ when he calculated that 80% of Italy's wealth was owned by 20% of its population. ‘Ooh,’ thought the Italians of the day, ‘that’s a rather neatly observed, if somewhat damning, statistic’. Since then, there’s been something remarkably elastic about the 80/20 rule. It can be applied in a surprising number of ways, each highlighting the apparent disparity between available resource and consumption. For example, I can confidently predict that 80% of the fresh coffee in the BHP London office will be consumed by just 20% of the workforce (I'm looking at you, Simon). Closer to home, I’m pretty sure that 80% of my neighbour’s late night phone conversations could be conveyed in just 20% of the time he actually takes. (Outlawing the phrases “you know”, “yeah” and “I was like” would be a start). Shine light on what matters 80/20 comes into its own when applied to business, where it can shine much needed light on the things that really matter. "80% of your sales come from 20% of your clients" is a frequently cited mantra, and its one which often rings true. Deploying campaigns that treat the 80% in a different way to the 20% can be an extremely effective way of marketing. 80/20 also has plenty of value in an IT context. By fixing the top 20% of its most reported bugs, Microsoft claims it can eliminate 80% of the errors and crashes in its software. Then there’s the suggestion that 80% of business software licensees use just 20% of the product's functionality. Think about that — if you’ve spent £100 on software, it could be argued that you're getting back only £20 on that investment. Your software and 80/20 What's more, focusing on this problem doesn’t have to be too onerous; all you do is look at what programs you have and what you're using them for — then match the results against the software’s published feature set. Might you be losing out on contracts because your proposals aren't based on one of Microsoft Office’s templates, for example? Could you cut back on consultancy costs by using more of Excel’s formulas and analysis functions? How does your CRM system produce that report — and could you make a custom version to wow your clients? The list goes on. It could be very healthy for you to assume that the 80/20 rule applies to your office software. After all, conducting a review of what you've got and how much of it you use can only help when you need to conduct further ROI analyses in the future. A pity, then, that the typical small business owner is probably spending 80% of their time juggling just 20% of the things that need doing — with an 80/20 software review buried in that 80%. Damn you, Pareto…