Warehousing, email, ecommerce:
Get wired
By Bob Weinstein, Globe Correspondent, 07/29/99
How "wired" is your company? Low-tech, high-tech, or somewhere in
between?
One thing is certain: You can't build a company unless you're taking
advantage of the newest technological innovations.
You don't really have a choice: Either rev up and compete, or perish.
It's impossible to list every company's technical needs; that's a
function of your company's products or services, as well as its size: annual
sales, number of employees, etc. satellite offices, and the like.
Specialists like Anne Massey, professor of information systems at Indiana
University's School of Business in Bloomington, advise growing companies to
take a panoramic view of their burgeoning enterprise. A company emerging from
start-up into a thriving business will need a raft of technical services.
According to Massey, the easiest way to evaluate your present and future
technical needs is to mentally carve your company into four sections:
applications, system services, servers and platforms, and networks and
telecommunications.
It's not as complicated as it seems. Here's a look at each level:
Applications. This includes software to help you run your business
better. The software might link you to vendors and suppliers, or provide
product information. Initially, you can use off-the-shelf software. But as
your business grows, chances are you'll need custom-designed applications.
"At that point, you'll need software and application developers to
create the software for your business," Massey says. "The idea is to fit
your software to your needs. If your business supplies products for other
businesses, for example, you may want to link your system to your supplier's
system so you can place orders on line, which is faster and more efficient
than doing it over the phone. It makes for faster and smoother
communication."
Also, as your company grows, you'll need an Internet Web site, and
possibly even an Intranet (see related story). The Internet
site promotes and explains your business to the outside world; the Intranet
is for communicating solely with your employees. Again, software developers
create both applications.
System services. As your company grows, you'll also need what Massey
calls "collaborative systems," such as e-mail, Microsoft Exchange, and
Lotus Notes.
"This is when you'll need to think about software that controls and
monitors workflow," she says. As the work piles up, you'll have to determine
what you must track. You might need systems for electronically storing and
filing the information and data you're compiling.
"For example, there is data warehousing software that organizes and
systematically stores information between departments and offices so it's
available when you need it," she says.
A data warehouse is a system designed to consolidate data from multiple
sources, thereby solving the problem of information overload. The bigger a
company gets, the more information it amasses.
"When data warehousing first became popular, it was focused on big,
complicated applications to solve specific problems," explains
Framingham-based Hurwitz Group CEO Elizabeth Hurwitz. "For example, figuring
out how many of a particular product should be sold to what demographic
groups."
The new twist is the direction in which data warehousing is going. Data
warehouses were originally designed to solve the problem of information
overload. The bigger a corporation became, the more information it amassed.
Making the information accessible to decision-makers was critical.
Although the traditional data warehouse isn't going away, future
applications will focus on electronic commerce.
"More companies selling on the Web means they'll be collecting tons of
information, such as what people are buying or not buying and where they're
going when they leave a site," Hurwitz explains. "If this massive amount of
information is used efficiently, it can help companies find new and better
ways to sell to more people."
At both the application and system services level, your customers or
vendors practically dictate what you'll need.
"The question will most always be, 'Can I buy off-the-shelf software
that will do the job, or do I have to custom-design it for my
organization?' " says Massey. "The people who work at the first two levels
are typically software and database designers and programmers. These are the
application implementers. Their goal is to figure out exactly what the
business needs and come up with the software that does the job."
Servers and platforms. The technical picture becomes more complicated
as you increase employees, customers, products, you name it. It means you
need equipment (a server) that can respond to multiple requests.
"Clients make requests, servers respond to them," says Massey.
The server can include both hardware and software that performs a
service. There are file, database, application, mail, fax, and Web servers.
"Think of a server as a pile of memory that connects businesses to
clients," says Massey. And there are plenty of companies, such as Novell,
Microsoft, Netware, Sun Microsystems, to name just a few, that will be happy
to sell you one.
If you have a Web server so customers can come to your site and get
information or place orders, you may need a firewall between the internal
systems and the outside world to prevent traffic from crossing into
restricted areas of your network.
Networks and telecommunications. Decide how to best communicate with
your office or stores line. What kind of Local Area Networks (LANs) or Wide
Area Networks (WANs) do you need?
"There is a slew of different networks provided by companies like
Novell, Microsoft, Nortell and others specializing solely in networking,"
says Massey. "Companies called 'systems integrators' come in, evaluate your
needs, and then set up the appropriate system," says Massey.
Don't forget your phone system. As you grow, the off-the-shelf,
multi-line phone system won't cut it. You'll need a sophisticated system that
can handle massive inbound and outbound calls so business isn't lost. All the
major phone companies would be happy to evaluate your needs and sell you the
system that does the job. Or you can hire a telecommunications consultant
who'll be the liaison and manage the whole process.
* * * * *
The trick is finding qualified professionals to provide you with the best
technology and show you how to use it. If you understand technology, you can
manage the process yourself and hire software designers to create the right
software, data warehouse experts to design a warehouse, and systems
integrators to network your offices.
If you're a techno-novice like most, you can hire a brand-name consulting
firm like McKinsey & Co., Deloitte & Touche, Ernst & Young, or Andersen
Consulting that will send in a technology expert to take all your technical
woes off your hands. But be prepared to pay: Thanks to companies'
skyrocketing technical needs, consulting firms are doing a booming business.
There is a cheaper way to get your technology in place. Massey and other
specialists suggest that you recruit students or recent graduates with a
degree in computer science or computer engineering to set up your technology.
"They'll welcome the experience and you'll save a bundle in the
process," says Massey. "Most students and grads already have work
experience, so it's not like they're coming in cold."
Finally, technology can simplify the hiring process. You can hire
Internet-recruiting solutions consultants like Chicago-based Tiburon Group to
find you the right people without wasting time posting ads and sorting
through resumes.
A handful of companies specialize in Internet-recruiting consulting,
according to Tiburon President Carl Kutsmode, who says it's an emerging field
with enormous potential.
For an hourly fee, Kutsmode will manage the whole recruiting process for
a business. That means combing the Internet for candidates and even
pre-qualifying them for a client's needs. Just tell Kutsmode what skills
you're looking for, and he'll find the employees who have them. He'll also
post ads on specialized Web sites that consistently deliver quality
candidates. The result is cost and time savings.
Those are just a few of the technical services available to businesses.
Next year, expect new technical needs and job titles to service them. "You'd
be wise to stay on top of the market," advises Massey. "The technology is
changing faster than most people realize."
Bob Weinstein is a freelance writer in New York who writes Tech Watch, a
syndicated weekly career column on technology.