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.