Thursday, November 22, 2007

Business-lean and simple

One of the points that jumped out at me was the different forms of standardization recognized by companies. Internet protocol along with SQL and COBOL seems foreign to me because the technological advancements that have been made were on a constant growth which amazes me that there isn’t a global standard, instead it has only become more complex and chaotic.

I feel that the biggest misconception is “the more expensive and complex, the better quality.” Time and time again, history with technology has shown that simple and cheaper tend to work better while producing good quality. Not only is simple always better but “going with what commonly works” is better than investing in assets because of newness. The “newness” of technology tends to complicate current systems because the questions organizations must address is how will the new system work with the current technology and will it require the company the throw out its existing system. Another point made by the author is 70% of the world’s transactions is being ran on a 20 year old COBOL systems effectively.

The Web based technology has also been used within organizations at cheaper prices. The internet has allowed companies to set up websites at lower prices but the companies have aligned their expectations of the web based technology with the reality of the scope. Some of the downfalls include hype, the level of security integrity and performance, and the level of defined contextual standards.

As with today society, there are always low cost alternatives even for financial services and internet based time sharing. The financial program that comes to mind when I think of low cost financial services offered through “web based” technology is the tax cut program which allows taxpayers to save the $200-300 on tax preparation fees by following the program step by step and submitting the completed return via internet. The concern with any information going over the internet is security of information. However, this software takes out the physical one on one with a CPA and also offers customer solutions and help through the software.
I feel that companies can use the advancement in internet technology to expand their process as long as their expectations are reasonable in relation to the downfalls. Open source sharing of information is growing including software and the greatest benefit is that it is free. This can also be a resource for companies.

4 comments:

Jenn R said...

I agree the assumption that “the more expensive and complex, the better” is a harmful belief because as you point out history with technology has proved that simple and cheaper works better. Individuals are often opposed to drastic changes introduced in the workplace especially when the innovation is related to technology so introducing a simpler technology can reduce stress-related to change. Also, adopting a simpler technology can save a company in significantly in training costs. Many employees today grew up without the internet and many programs we are familiar with so using a complex and unfamiliar system would require significant training and consulting. While I think simple and cheap often works best, too simple isn’t the bets approach. If a process or technology is too simple and repetitive, an employee may be unsatisfied or bored at work. I think employees are motivated most when they are challenged with goals to meet that are possible yet also present some degree of complexity. Therefore, I think the best approach when implementing a new technology is finding an appropriate balance between simple and challenging.

Yu Chang Kuo said...

I agree with you that open source sharing of information is growing including software and the greatest benefit is that it is free. However, Internet is a sweet thing and also a dangerous one. People just want to download everything and search the information they want for free. Open source will cause a crisis or bring the company more benefit. It is very hard to be under control. On another side, integrating the all systems is impossible.

MsNoleChic said...

I agree Jenn, if you can get a system the performs excellent in relation to your needs and you can get it at a low price, why pay double to get the same product that will do the same thing. I think in this day and age it's about getting specifically what you need at a reasonable price without the "flashyness"

MsNoleChic said...

Yu Chang, you are right as well, the interet is a very good resource, but with all the spyware and phising out there, it is a tool with need to use with extreme caution. As we learned in class there is nothing that protects us 100% from invasion through the internet.