Unit - 5
Unit - 5
Network management is complex and so network administrators need all the help they can get. A
network management solution is their best bet to streamline network management. With a myriad
of network management solutions available in the market, it becomes even more important to
zero in on the right one. Comprehensive network management solutions are to be preferred as
they help reduce the dependency on multiple tools to manage networks.
Additionally, a network assesment helps you check if your IT infrastructure is aligned with the
business goals and helps in framing a reliable network management strategy.
C.Network Provisioning
Network provisioning involves calculating the load handled by the network and future demands
based on the current network trend. It also involves keeping resources in reserve so that when a
need arises, it becomes easier to handle. A network control software would enable you to identify
network trends and effectively provision your network.
For example, whenever you get a device down alarm, you will ping the device and do a
traceroute to know if there is any packet loss, where exactly it is happening or if the device is
actually down. These repetitive tasks can be automated with workflows.OpManager, the trusted
network management and monitoring tool supports around 80 actions that can be automated
with workflows.
Interestingly, you can also store your database information via apps.
Analogically, assume a DBMS as a bridge between your main database
and application programs. Additionally, database management software
grants you the scalability and modification options to recover, comply, or
simply monitor business operations.
The usefulness of the DBMS is its centralized process that allows multiple
users to access data despite different geographical locations. Furthermore,
the DBMS can limit the data usage and functionality of each user. There
are different types of database softwares.
The DBMS grants end-users the freedom and convenience to store logical
or physical data. Consequently, users don't have to be concerned about
the structural changes nor the physical location of
data. Application Programming Interface (API), for instance, doesn’t bother
the developer to make manual changes. Instead, it automatically makes
modifications in the database.
Here are some database management softwares (DBMS) that can help
your business with productivity and the realization of its true potential:
Cons
The execution of long queries often takes longer than the calculated time.
The Express and Developer versions are free and ideal for personal
use. 2016, however, is the most popular version priced at $931 for a
Standard License. The 2017 and 2019 versions have the same price tag.
Postgre SQL
The open-source DBMS solution gets attention because of the invigorating
indexing and configuration options. Postgre SQL is ideal if your daily
business activities require you to import or export data.
Cons
The advanced nature of the tool slows down the insertion of small databases.
Cost Structure
My SQL
My SQL is a high-speed data processing and data productivity tool with
comprehensive features. The tool is designed to increase the security and
scalability of your databases. A reliably cost-effective tool offers technical
support and counteracts potential risks. Furthermore, high-volume business
sites can deploy business-oriented complex MySQL applications.
Pros
Well-suited for small businesses and entrepreneurs because of the low-cost structure
The data development process is adjustable for small and heavy applications.
Cons
Cost Structure
Amazon RDS
Amazon RDS (Relational Database Service) is one of the best DBMS
tools. It has a dedicated secured connection, and it automatically backs up
your data through an inbuilt feature. Furthermore, it can resize your entire
database activities.
Pros
options.
Cons
Cost Structure
Users are free to try out Amazon RDS. In fact, there's no minimum criterion
to use the tool. You can pay for the availed resources via On-Demand
method. It may sound complicated, but you can instantly calculate your
monthly bill with the AWS Simple Monthly Calculator.
Microsoft Access
Microsoft Access works solely on Windows OS. It's a great tool to create
custom databases in numerous formats as per your business needs. The
affordable database management system is useful in the IT sector.
Pros
Custom templates of Microsoft Access are ideal for adding web databases and
Users get to have full access to Office Suite Packages such as Word, Excel, and
Outlook.
Cons
SQL Developer
The open-source DBMS tool is a favorite of developers as one of the
efficient DBMS tools to design, develop, and perform other database
management activities. The best trait of SQL Developer is that it takes less
time to execute multiple queries. Consequently, users generate queries in
numerous formats like PDF, HTML, XML, or Excel.
Pros
You can migrate your database modeling solution to third-party databases to Oracle
Cons
Informix
Informix Dynamics Server is a commercial DBMS tool that is perfect for
businesses that want parallel and multi-threaded processing of data. The
scalability of the software makes it ideal, plus it has a great in-depth
support option.
Pros
Cons
Cost Structure
The price of the tool is essentially decided on the quantity of data you want
to back up
Cons
Cost Structure
Conclusion
Whether you are a non-professional user or an experienced developer,
your main focus of interest to choose from the DBMS mentioned above
should be based on monitoring and performance generation. Also, check
the flexibility of the program to add end-users. A good method is to
compare the integration of data queries and assess technical possibilities
that can enhance your database scripting knowledge. Ultimately, the role of
the user should be the criterion to select your database management
system software.
Server
What is a server?
A server is a computer or system that provides resources, data, services, or programs to other
computers, known as clients, over a network. In theory, whenever computers share resources
with client machines they are considered servers. There are many types of servers, including
web servers, mail servers, and virtual servers.
An individual system can provide resources and use them from another system at the same
time. This means that a device could be both a server and a client at the same time.
Some of the first servers were mainframe computers or minicomputers. Minicomputers were
much smaller than mainframe computers, hence the name. However, as technology
progressed, they ended up becoming much larger than desktop computers, which made the
term microcomputer somewhat farcical.
Initially, such servers were connected to clients known as terminals that did not do any actual
computing. These terminals, referred to as dumb terminals, existed simply to accept input via
a keyboard or card reader and to return the results of any computations to a display screen or
printer. The actual computing was done on the server.
Later, servers were often single, powerful computers connected over a network to a set of
less-powerful client computers. This network architecture is often referred to as the client-
server model, in which both the client computer and the server possess computing power, but
certain tasks are delegated to servers. In previous computing models, such as the mainframe-
terminal model, the mainframe did act as a server even though it wasn’t referred to by that
name.
As technology has evolved, the definition of a server has evolved with it. These days, a server
may be nothing more than software running on one or more physical computing devices.
Such servers are often referred to as virtual servers. Originally, virtual servers were used to
increase the number of server functions a single hardware server could do. Today, virtual
servers are often run by a third-party on hardware across the Internet in an arrangement called
cloud computing.
A server may be designed to do a single task, such as a mail server, which accepts and stores
email and then provides it to a requesting client. Servers may also perform several tasks, such
as a file and print server, which both stores files and accepts print jobs from clients and then
sends them on to a network-attached printer.
For example, Microsoft’s Windows Server operating system provides the functionality to
listen to and respond to client requests. Additionally installed roles or services increase which
kinds of client requests the server can respond to. In another example, an Apache web server
responds to Internet browser requests via an additional application, Apache, installed on top
of an operating system.
When a client requires data or functionality from a server, it sends a request over the network.
The server receives this request and responds with the appropriate information. This is the
request and response model of client-server networking, also known as the call and response
model.
A server will often perform numerous additional tasks as part of a single request and
response, including verifying the identity of the requestor, ensuring that the client has
permission to access the data or resources requested, and properly formatting or returning the
required response in an expected way.
Types of servers
There are many types of servers that all perform different functions. Many networks contain
one or more of the common server types:
File servers
File servers store and distribute files. Multiple clients or users may share files stored on a
server. In addition, centrally storing files offers easier backup or fault tolerance solutions than
attempting to provide security and integrity for files on every device in an organization. File
server hardware can be designed to maximize read and write speeds to improve performance.
Print servers
Print servers allow for the management and distribution of printing functionality. Rather than
attaching a printer to every workstation, a single print server can respond to printing requests
from numerous clients. Today, some larger and higher-end printers come with their own
built-in print server, which removes the need for an additional computer-based print server.
This internal print server also functions by responding to print requests from a client.
Application servers
Application servers run applications in lieu of client computers running applications locally.
Application servers often run resource-intensive applications that are shared by a large
number of users. Doing so removes the need for each client to have sufficient resources to
run the applications. It also removes the need to install and maintain software on many
machines as opposed to only one.
DNS servers
Domain Name System (DNS) servers are application servers that provide name resolution to
client computers by converting names easily understood by humans into machine-readable IP
addresses. The DNS system is a widely distributed database of names and other DNS servers,
each of which can be used to request an otherwise unknown computer name. When a client
needs the address of a system, it sends a DNS request with the name of the desired resource
to a DNS server. The DNS server responds with the necessary IP address from its table of
names.
Mail servers
Mail servers are a very common type of application server. Mail servers receive emails sent
to a user and store them until requested by a client on behalf of said user. Having an email
server allows for a single machine to be properly configured and attached to the network at
all times. It is then ready to send and receive messages rather than requiring every client
machine to have its own email subsystem continuously running.
Web servers
One of the most abundant types of servers in today’s market is a web server. A web server is
a special kind of application server that hosts programs and data requested by users across the
Internet or an intranet. Web servers respond to requests from browsers running on client
computers for web pages, or other web-based services. Common web servers include Apache
web servers, Microsoft Internet Information Services (IIS) servers and Nginx servers.
Database servers
The amount of data used by companies, users, and other services is staggering. Much of that
data is stored in databases. Databases need to be accessible to multiple clients at any given
time and can require extraordinary amounts of disk space. Both of these needs lend
themselves well to locating such databases on servers. Database servers run database
applications and respond to numerous requests from clients. Common database server
applications include Oracle, Microsoft SQL Server, DB2, and Informix.
Virtual servers
Virtual servers are taking the server world by storm. Unlike traditional servers that are
installed as an operating system on machine hardware, virtual servers exist only as defined
within specialized software called hypervisor. Each hypervisor can run hundreds, or even
thousands, of virtual servers all at once. The hypervisor presents virtual hardware to the
server as if it were real physical hardware. The virtual server uses the virtual hardware as
usual, and the hypervisor passes the actual computation and storage needs onto the real
hardware beneath, which is shared among all the other virtual servers.
Proxy servers
A proxy server acts as an intermediary between a client and a server. Often used to isolate
either the clients or servers for security purposes, a proxy server takes the request from the
client. Instead of responding to the client, it passes the request on to another server or
process. The proxy server receives the response from the second server and then replies to the
original client as if it were replying on its own. In this way, neither the client nor the
responding server needs to directly connect to each other.
Monitoring and management servers
Some servers exist to monitor or manage other systems and clients. There are many types of
monitoring servers. Several of them listen to the network and receive every client request and
server response, but some do not request or respond to data themselves. In this way, the
monitoring server can keep track of all the traffic on the network, as well as the requests and
replies of clients and servers, without interfering with those operations. A monitoring server
will respond to requests from monitoring clients such as those run by network administrators
watching the health of the network.
Server structures
The concept of servers is nearly as old as networking itself. After all, the point of a network is
to allow one computer to talk to another computer and distribute either work or resources.
Computing has evolved since then, resulting in several types of server structures and
hardware.
Mainframe or minicomputer (AS/400)
You could say that the original servers, mainframe computers, and later, minicomputers,
handled almost all computing tasks except the interaction with the user through a screen and
keyboard, which was left to the client system.
Computer hardware server
The next major wave of servers included computer-based servers. In many respects, these
servers were nothing more than larger, more powerful desktop computers. Such servers were
generally more expensive and held far more memory and disk space than most client
computers. Each server was still a self-contained unit with its own motherboard, processor,
memory, disk drives, and power supply. Servers like this were often warehoused in air-
conditioned rooms called server rooms, and were later bolted into racks for better storage and
accessibility.
Blade servers
The original computer server hardware was large and stored in racks that could hold hundreds
of pounds. Over time, however, faster means of connecting hardware resulted in parts of the
server being extracted from a single self-contained device. By removing hard drives,
eliminating internal cooling, and the ongoing miniaturization of computing parts, servers
were eventually reduced to a single thin server known as a blade server. While still stored in
racks in server rooms, blade servers are smaller and can be replaced more easily.
Combining servers
Even before virtualization, servers were being extracted from the standard model of a single
server operating system installed on a hardware machine. Technology, such as network-
attached storage, removed the need for a server to have its own storage. Other technologies,
such as mirroring and clustering, enabled pieces of hardware to be combined into larger,
more powerful servers. Such a server might consist of several blades, several attached storage
devices, and an external power supply, and each piece could be swapped out for another
while the server was still running.
Virtual servers
Virtual Servers still require hardware, but that hardware now runs a different process known
as a hypervisor. In some cases, such as Microsoft’s Hyper-V, a full operating system
continues to run on the hardware itself. In other cases, so-called bare-metal hypervisors can
be installed directly onto server hardware. In both instances, the hardware itself is often
spread across an array of blade servers, networked storage, and power supply, resulting in an
environment where it is impossible to tell where any individual server ends and another
begins.
The other major player in server operating systems is the Linux/Unix realm.
There are multiple versions and flavors of Linux/Unix including Red Hat
Enterprise Linux, Debian, and CentOS. As an open-source operating system,
Linux is very popular as a web server, often with the Apache web application
server installed.
NetWare
Although no longer made, NetWare was a major player in the server software
space as the client-server era was ramping up. Eventually, NetWare moved
its server operating system to a Linux-based kernel and named it a Novell
Open Enterprise Server (OES).
Cloud servers
Windows Diagnostics
The Windows Diagnostics program can help you determine your
operating system’s configuration. This tool can be found in Control
Panel, System and Security, Administrative Tools, Computer
Management.
The Task Manager enables you to monitor and control your computer
and what is running on it. It shows you programs and processes that
are running as well as performance. To access the Task Manager,
right click an empty area in the task bar and click Start Task Manager.
Penetration test
Your network needs to be secured, and penetration tests allow you to find gaps in
your network’s security. By examining for security gaps, your enterprise will know
the areas where security breaches are likely to come from. These insights allow
you to take steps to patch gaps, either by replacing hardware or updating security
protocols.
Test your network routinely and continuously
Network performance can change dramatically in a matter of seconds. Factors
such as hiding threat actors or sudden hardware failure can bring performance
levels down instantly. If your network team isn’t made aware of these issues
immediately, they’ll be blind to major network issues. Thus, the need to
continuously and routinely perform network tests is vital to your company.
NPM tools are constantly checking your network for performance issues and can
automatically administer scheduled network tests for you. These tests can also
be performed outside business hours so your team is alerted to any major issues
that happen overnight. Performing regular tests keeps your enterprise up-to-date
on your network’s performance so you can eliminate the need to base your
network strategy on performance assumptions.
Devising effective security plans for your network means incorporating the right
tools and practices to keep your network safe. Security threats are not just
dangerous to your enterprise’s safety, but they can also be a key influence on a
network’s performance. Malware can slow network speeds and disable devices
and nodes installed on your network. Below, we outlined the basics of network
security and how network performance monitoring can help keep your networks safe.
Another way security threats can overload your network is by installing resource-
draining applications and leaving them to use up bandwidth. A network
performance monitoring (NPM) solution can sweep for any unwanted software and
alert your team to it so you can take steps to remove it from your infrastructure.
Disabling devices
Security threats can target any hardware on your network’s infrastructure.
Malware might try to bring down either devices connected to the network or the
network nodes that you have installed. Security breaches can disable devices
through numerous methods, and nonoperational hardware means that your
network has less physical resources to rely on for data transmissions.
Data destruction
Your network creates and stores a ton of data on a daily basis which devices on
the network constantly wants to access. This data is usually essential to your
business and, as such, is a prime target for security threats. Malware can
intercept and destroy data on a network, either as it travels from node to node or
as it waits on a device.
Device monitoring
If a security threat is specifically designed to disable devices and nodes, you
need a solution that constantly checks on the state of the hardware on your
network. Most NPM tools are equipped to monitor device health and operations,
allowing your enterprise to keep its hardware in line. An NPM solution might ping
every device and node from time to time to ensure the device is functioning. If it
doesn’t receive a response, it can flag the network team to investigate for
hardware failure.
Managerial considerations in
Software Selection
Managerial consideration in Software Maintenance
Software Maintenance
Software maintenance is a part of the Software Development Life Cycle. Its primary
goal is to modify and update software application after delivery to correct errors and
to improve performance. Software is a model of the real world. When the real world
changes, the software require alteration wherever possible.
o Correct errors
Thus the maintenance is required to ensure that the system continues to satisfy user
requirements.
Types of Software Maintenance
1. Corrective Maintenance
Corrective maintenance aims to correct any remaining errors regardless of where
they may cause specifications, design, coding, testing, and documentation, etc.
2. Adaptive Maintenance
It contains modifying the software to match changes in the ever-changing
environment.
3. Preventive Maintenance
It is the process by which we prevent our system from being obsolete. It involves
the concept of reengineering & reverse engineering in which an old system with old
technology is re-engineered using new technology. This maintenance prevents the
system from dying out.
4. Perfective Maintenance
It defines improving processing efficiency or performance or restricting the software
to enhance changeability. This may contain enhancement of existing system
functionality, improvement in computational efficiency, etc.
Software controlling and Replacement
Software control is the process of the physical storage in a
definitive software library of all software to ensure that only correctly
released, licensed, and authorized versions of software are in use. Processes
in this category include the tracking of releases, patches, service packs, and
bug fixes.
Software Quality Control (SQC) ensures the task of achieving and maintaining the
quality in a software product. It may be seen as a set of activities that are being
carried out with the aim of achieving quality from each different perspective in a
software product. These activities may consist of tracing, identifying, removing and
correcting of maximum number of possible bugs or defects in the software. In short,
SQC consists of different testing activities along with some other activities,
comprehensively to control and achieve the desired level of quality in a product.
Plan: This involves the defining of objectives and planning of carrying out different
quality control activities.
Check: Study and analyse the results generated and comparing it with the expected
result to check the deviations (if any) in the results.
Act: At this stage, corrections are carried out and applied; if needed to meet the
objectives defined during plan phase. The cycle continues to be repeated several
times until the achievement of expected quality.
SQC is Much More than Testing
The process of quality control is not limited to testing only. Apart from testing, SQC
includes reviews and analysis. These reviews and analysis may be applicable to
requirement, planning, design, test cases, and many other things.
Testing techniques
Testing is an important component of the SQC for verifying and validating the
specified requirements in the developed software. There are numerous testing
methods available for carrying out the testing task for different-different needs. Some
of them are :
Unit testing.
Functional testing.
Integration testing.
System testing.
Acceptance testing.
Beta testing.
Performance testing.
Regression testing.
Volume testing.
Recovery testing.
Usability testing.
Stress testing.
Load testing.
Installation testing.
Software Replacement
How long have you been using your current Business Software System? Does it meet your
current requirements? Does it need to be replaced? These are excellent questions, but do you
really know without a doubt that you need to make a change? If you are like most firms, the
signs are not so obvious unless you ask yourself and the people within your organization. If
you are like most firms, you have been plodding along, making do with your current Business
Software System. People tend to accept reality as the norm. You get used to your current
Business Software System and do your work within the confines of the capabilities of your
current system.
You know your current Business Software System isn’t perfect, but rationalize that it’s no
better or worse than any other Business Software System. People may complain that it takes
too much time to complete transactions (e.g. enter sales orders), or that too much work has to
be done manually to support requirements the current system cannot really meet effectively,
or the system cannot generate needed reports because there are insufficient data fields, or
maybe critical planning and operations control is just too difficult.
Every Business Software System will deteriorate over time, even systems you purchase
today. The underlying issue may be software related, but in many cases firms simply
outgrow the capabilities of their current system. Firms change over time. Growth and
expansion into new markets are the primary change motivators, but it is possible that your
current Business Software System has not kept up with market demands. The reasons aren’t
really that important, but your failure to recognize that it’s time to change is the real issue. If
you wait until you can no longer compete in your market effectively, then it’s too late. If you
constantly evaluate the performance of your Business Software System and anticipate
change, then you will be able to stay ahead of the race to remain competitive.
The decision to replace your current Business Software System isn’t a black or white
question. It’s based more on an accumulation of issues that at some point tip the balance.
Rather than waiting until you are forced to replace your current Business Software System,
adopt a proactive approach whereby you are constantly evaluating your current accounting or
ERP system. This doesn’t necessarily mean you need to replace your current system every
year. If you are going to remain competitive, you have to conduct something you might call
an Annual Business Checkup. The concept is similar to an annual physical. Rather than
waiting for physical deterioration, you should visit your doctor on a regular basis. Submit
yourself to a battery of tests that either confirm your state of health or indicate that a physical
issue is beginning to develop. Evaluating your current Business Software System follows the
same rational. Ask yourself on a formal basis what works and what isn’t working as well as
what you require to improve your competitive position. If you follow this path, you will be
able to determine when you need to change and just as importantly what your Business
Software System needs to do to support your quest for excellence.
and having such a large project that it never deploys. Focusing requirements practices on these
issues directly can increase the likelihood of a successful system replacement software.
Why Replace?
existing system that is too inflexible to support the growth or has technology limitations. Use
the anticipated cost savings from a new system (such as through reduced maintenance of an
old, clunky system) plus the value of the new functionality to make sure you can justify a
Analyzing and improving your current Business Software System isn’t just a matter of asking
and answering a series of specific questions. That just leads to a fractured series of required
improvements. Your analysis will certainly lead to the specification of very specific
improvements, but you have to first define what you need to do very well as a firm to
compete effectively in your industry. That highly detailed “picture” can then be used to
determine precisely what your Business Software System should do to support your quest for
competitive excellence.
This is perhaps the easiest sign that you need to replace your current Business Software
System and it is the most urgent in terms of reaction on your part. If the vendor is not
updating their Business Software System on a regular basis or is not providing adequate
support, this may be a signal that either the vendor itself is starting to suffer financial
difficulties or they have decided that their Business Management System can no longer
remain competitive. If this is the case, you should accept the fact that change is mandatory.
If you are not receiving adequate support from your local reseller, but the product itself
appears to be solid (i.e. it’s still competitive), you may need to search for a replacement
reseller. This is your absolute right and as long as you can find a knowledgeable reseller who
really wants to work with you, you should not necessarily scrap your current Business
Software System. This doesn’t necessarily mean you shouldn’t replace your current Business
Management System. Maybe this is an opportunity to look at alternate products.
2) Your Business Software System does not adequately support the needs of your
customers.
The key to your business success is attracting prospects, converting them to customers and
then holding this relationship into the future. You must meet each customer’s expectations
and business process requirements so they will continue to order from you. Your Business
Software System will give you the information and functionality that will enable you to
provide your customers the best possible experience. If your Business Management System
cannot adequately meet the needs of your customers, this may be an indication that you need
to make a change.
3) Your CRM system does not adequately support your marketing and sales
strategies.
Most people think in terms of “sales and marketing”, but that approach is really backward.
Your must first attract “new blood” and then sustain that relationship. Marketing is all about
attracting prospects and sales is all about closing the deal and keeping the deal closed. Your
CRM system must help you do both. If your CRM system is not seamlessly integrated with
your Business Software System or if your CRM system does not assist you attract and hold
customers, it may be time for you to either find a CRM system that integrates with your
Business Software System or find a Business Software System that integrates with your
current CRM system.
If you are expanding into a new industry (e.g. manufacturing) and you current Business
Software System does not support critically required functionality, you must replace your
current system. This decision should be viewed as mandatory as well as proactive in that you
should make no move into the new industry unless your Business Software System supports
the functionality you need to compete effectively.
You current Business Software System may support operating from a single location or
operating as a single unique legal entity, but what if you open offices in remote locations or
acquire a company that operates from a different location or competes in a different
industry? As we discussed the issues surrounding an expansion into a new industry, you
must proactively determine the structure and functionality requirements if you open new
offices or acquire another company. If your current Business Software System does not
support these expanded business requirements, you must determine if you need a new system
before these corporate changes take place.
6) You cannot complete business activities and tasks effectively and efficiently.
Once you receive a customer’s order for products or services, how do you then record,
monitor and complete the customer’s order and do so for the lowest possible cost (least cost =
maximum margin)? That’s where the notion of effectiveness and efficiency come into play.
You need to give custom’s what they want (appropriate products and services at the right
price, on-time delivery, quality and communications). You also need to complete each order
as efficiently as possible. Your Business Software System must first help you meet the needs
of your customers (effectiveness) and then help you complete business transactions at the
lowest possible cost (efficiency). If it takes too long to complete business tasks, you may
need to search for a new Business Management System that supports business effectiveness
as well as business efficiency.
Business Software Systems should help people do their jobs efficiently, but that’s not always
the case. In many cases people have to resort to manual tasks and that’s inherently inefficient
and ineffective. A prime example is tracking and collecting overdue invoices. While all
systems produce an Aging Report, everything an employee has to do after that point is
manual. As you are evaluating your current Business Software System, identify every single
manual task and determine whether this task can be supported by a software application that
seamlessly integrates with your Business Software System.
Completing business tasks efficiently is certainly important (e.g. recording and completing
sales orders or manufacturing orders), but there are any number of activities that will help
you run your business more efficiently. Maintaining inventory ensures that products will be
available when orders are placed. Planning production operations ensures that each step in
the production process will be scheduled at the right time with the right material by the
appropriate workgroups. All of these diverse activities need to be coordinated and the only
way this can be accomplished is via some form of software supported operations
management systems. The question you must answer is whether your current Business
Software System can give you the operations support you need.
9) Your current system does not support effective business decision making.
Software supported planning and execution functions help you record orders and control
operations so that each order is completed in a timely manner, but that doesn’t help you
understand where you are and where you appear to be going. As an example a distributor
needs to ship orders, but controlling inventory levels is one of the keys to your success.
Tracking inventory turns will help you understand if you have too much inventory or too
little. While it’s possible to create reports that calculate inventory turns, you may have 5,000
or more separate inventory items to track and that’s going to require a lot of time.
You could sort the calculated inventory turns to create a list that helps you concentrate on
only those items that require your attention, but a single value really doesn’t give you a
complete picture. You need a graphical representation of inventory turns for (as an example)
each of the past twelve months. Now you are building a picture of your operations that will
help you understand where you have been, where you are today and possibly even where you
appear to be heading. You could also define for each month where you need to be. The
creation of what you could call a budget vs. actual representation of inventory turns will give
you all of the information you need to control inventory more effectively.
While this discussion is somewhat detailed, the key concept is creating a business decision
making system that helps you identify where you need to concentrate your efforts. It starts
with the identification of the key business drivers or Key Performance Indicators (KPIs) that
affect your business. If you don’t really know what’s critical to your success, then all of the
rich data that can be extracted from your Business Software System will be useless. Forget
about row and column reports, pie charts and bar charts. They represent just a snapshot of
your firm at a single moment in time and effective decisions should never be based on a
single data point. Adopt instead a graphically based reporting system that helps you become
more proactive when it comes to business decision making.
As you are evaluating your current Business Software System, take whatever time is required
to define precisely what information you need to make sound business decisions and the
format whereby this information can be most effectively displayed. If your current Business
Software System cannot give you the information you require, then this may be a strong
indication that change is required.
10)You are not taking advantage of current technology and functional possibilities.
The functional and technological capabilities of Business Software Systems have grown
significantly over the past five years. Your current Business Software System may not
support all of these new capabilities or it may but you haven’t adopted them yet. The fact
that you can do something doesn’t necessarily mean you have to stay on the cutting edge. As
you are evaluating your current Business Software System, ask yourself if you should move
to the Cloud, or access systems from any device anywhere, or collaborate with employees
and even customers, or utilize workflow, or adopt exception management or task
management. Once again you will need to place yourself in a learning mode so you can
understand these technical and functionality possibilities and whether they may be useful.
Don’t buy into the latest and greatest. Prove to yourself and your employees that each of
these changes are logical, cost effective and will help people become more efficient or
effective.
One of the least known signs that your Business Software Systems may need to be replaced is
a lack of knowledge of what’s possible in terms of today’s functional and reporting
capabilities. If you are going to thoroughly evaluate your current Business Software System,
you have to identify the strengths and weaknesses of the system as it exists today. In addition
you need to identify what’s possible in terms of capabilities with which you may have no
current knowledge but which could assist you become more successful. Knowledge is one of
the keys to the success of any software evaluation process.
Before you launch this project, invest time educating yourself. Read industry publications
that may shed some light on products and capabilities that might be of interest. Identify
several products that seem to have developed a following in your market. Learn more about
these products. Talk to several software vendors. Ask them what they think may be of
interest to you and your firm, but don’t add these capabilities to your list of “must haves”
simply because one or more products provide such functionality. Once you have educated
yourself, you can launch a far more effective evaluation of your current system.
What do you need to do very well in order to compete effectively in your market(s)? Forget
about specific software functionality. Instead, look at your firm as a single entity and
evaluate your ability to capture your fair share of the market(s) in which you compete. This
analysis has nothing to do with running your business efficiency and generating profits. It’s
all about generating revenue and that should be your sole focus. This competitive analysis
should be a “document” that is updated continuously. Rather than launching a massive
competitive analysis of your firm every year (as an example), key executives and line of
business managers need to know precisely where they are every day. If you don’t know
where you are, how can you possibly compete more effectively? Small adjustments are much
easier to implement than massive change that disrupts your business processes and your
employees.
There are actually two forms of planning you should consider. The previous section dealt
more with short-term planning (say two years) and this question can be thought of as more of
a strategic planning initiative. Strategic planning deals with “what-ifs?” that may or may not
occur. This doesn’t mean you should ignore these possibilities. In essence you need to look
down the road as far as possible (no blind guessing though) and identify possibilities. If these
possibilities then become more certain, you will have already identified them and can move
them to your shorter-term competitive planning document.