JP/17/VISHNU
JP/17/VISHNU
The hidden costs of corporate IT solutions
Vishnu K. Mahmud
Contributor/vmahmud@yahoo.com
After conquering the high-end corporate market, global
Information Technology companies are now focusing on the
promising Small and Medium Enterprise (SME) sector.
A segment that is said to have the most promising growth and
considered to be a backbone for the Indonesian economy, many SMEs
have yet to embrace this integrated form of computerization.
Some use computers to crunch numbers and print reams of data.
Others simply create forms and do the main calculations manually.
Many though are wary of the high-cost investments needed to
purchase and install the IT systems. This outlay does not include
staff training and data maintenance, which must be done
continuously.
But consider the benefits. Entire business processes can be
centralized and information can be accurately transferred,
eliminating error-prone data re-entry. Redundant divisions in
far-flung branch offices can be eliminated with collated data
analyzed at headquarters. There have even been cases where an
entire department can be streamlined to just a few key personnel.
Vast amounts of data can be gathered on customers to provide
better products and services.
Telecommunications between offices can be enhanced and its
costs suppressed. Technology can provide significant long-term
savings and efficiencies to allow companies to move on to the
next level.
Yet many parties sometimes fail to consider the problems that
may come with network computerization. Once embraced, it is easy
to become highly dependent on the IT systems. One downed
database server, a dropped network connection or a clogged e-mail
account may be enough to bring work and productivity to a halt.
When before workers didn't want to learn about computers, now
they just can't live without it.
Other considerations include software. Perhaps the new
technology resolves problems or situations using different
methods that employees usually use, forcing companies to alter
their business processes and systems. Should this occur, care
should be taken that it does not lead to a cascade effect that
may create further issues down the line.
Security and legal issues must also be taken into
consideration. Insecure corporate networks could be used by
"black hat" hackers to launch Internet attacks. Company employees
may begin downloading illegal content such as pirated games or
music.
These acts may expose the company to civil suits from affected
parties such as Internet worm victims or copyright holders. More
importantly, it would prevent the company from effectively using
their IT investments.
You would think that once an IT system is in place, everything
should be more secure from the prying eyes of competitors. Did
the company consider establishing policies and procedures about
data security as well as implementing secure technology
solutions? Now, instead of shifting through mountains of paper,
information can be gleaned from a database in seconds. More
importantly, it can be downloaded onto a floppy disk, a USB thumb
drive, a Compact Disc or even e-mailed out of the premises.
Cost is perhaps the biggest factor of consideration. Apart
from the initial hardware investment and installation, how much
would it take to maintain and secure the networks? How often
will the IT manager make sure the systems are carefully patched
and safeguarded from spam, viruses and worms? How much must the
company pay in bandwidth costs if one if its employees decides to
download a bootlegged copy of Harry Potter 3? And share it with
everyone else?
What about human resources made redundant with the new IT
systems? Will the company retrain and redevelop its most prized
asset, its employees, or simply let them go?
These issues are not supposed to frighten people from
implementing IT solutions, but to highlight possible problems.
Businesses that have already implemented corporate networks and
data services should continuously monitor and reassess their
investments.
Too often people think that placing a computer on a desk would
solve all their problems, failing to realize that it is just an
additional tool to be utilized. Proper policies and procedures
should be put in employee contracts and networks must be
protected (via hardware and software) from unauthorized use. It
is simply not the case of turning it on and walking away to let
the "miracle" work on its own.
As the world moves from a manufacturing-base economy to a
knowledge-base core, the use of technology has become ever more
important in providing competitive advantages. Companies must
constantly innovate to stay in business and employees must
constantly learn new skills. A wise man once said that
"information is power" and thus we all should be aware of the
opportunity cost benefits of our information-based future,
instead of taking it for granted.