Todd shares how you can identify whether your Information Systems department needs a transformation.

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No parent wants to hear his or her baby is ugly. Sometimes, though, my job is to tell business leaders just how ugly their Information Systems baby is.

Here are a few recent ugly babies I've seen when evaluating some Information Systems departments:

  • Dot Matrix Printer
  • Green Bar Paper
  • Green Screen or Monochrome Applications
  • Floppy Diskette
  • Back-Up Tapes
  • Windows XP
  • Windows Server 2003
  • Slow Internet Connections (Informal benchmark – your home Internet connection is faster than your workplace connection.)
  • A "Graveyard" of Computer or Telecom Equipment

Even if your baby is ugly – that is, you have one or more of these signs – your baby doesn't have to remain ugly, and the makeover may not be as expensive as you think.

  • Printing – Laser or inkjet printers are fairly inexpensive to buy and operate, and regular copier paper costs less than green bar paper.
  • ERP Systems – Your ERP vendor has likely moved its software to a graphical or web-based user interface – and, because you are their only green screen holdout, the vendor incurs additional support costs, which they pass along to you.
  • Old Hardware and Software – Computers running Windows XP or Windows Server 2003 are likely near the end of their maximum expected lives – and the large number of hardware vendors supporting the Windows platform helps keep prices competitive. Buying new hardware with a current operating system already installed promises faster performance, on a smaller footprint, and improved energy efficiency.
  • Recycling/Being Green – Old computers can be donated to an organization like HandyCapable Network here in Greensboro, which employs developmentally disabled adults ("HandyTechs") to refurbish donated computers, which are then given to low-income families to use at home.

Image of Old Computer

Underfunding the IS function, relative to what's needed for your industry, births ugly babies requiring makeovers. The solution? Increase your IS spending for a short period of time to fund the makeover, then drop it back down to a sustainable level.

Here's an example showing how this works. About 18 months ago, one of my clients hired me to assess his entire IS department. I looked at IS spending as a percentage of sales, and determined the IS function had been underfunded for several years.

Over the course of the project, we developed over 50 recommendations meant to provide a path forward and a timeline for implementation. Client personnel quickly began work on these. As a result, this client has now made great progress in shifting their outlook from a small business mindset with a bunch of computers, to a mid-sized – and quickly growing – business that needs to efficiently and effectively manage a fleet of computers. This client's progress so far includes:

  • Adding a new staff member.
  • Replacing the two underpowered servers (one Linux and one Windows) running its ERP system, with one beefy server which hosts what are now two virtual machines.
  • Upgrading the database manager and application development language for the ERP system to the most recent standards.
  • Pulling new CAT 6 cabling to every office, desk, and shared resource (such as a printer) in headquarters.
  • Developing the resilience of their systems by obtaining and configuring a "twin" of the beefy server running the two virtual machines, and then locating the "twin" in a company facility over 100 miles away from headquarters.

The client's IS spend increased significantly for about 12 months, then settled at a level higher than it was, yet still below that of competitors.

Remember, even if your baby is ugly and inefficient, it may be easier – and less expensive – than you think to transform it.

Need help getting started? Please call or email anytime.

Best,

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Todd L. Herman

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