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The past year has seen much debate the business
value of information technology. It´s a crucial issue but not a
new one. Senior executives have long struggled to determine whether their
investments in information systems (as they used to be called) produce
adequate returns. In 1986, a technology executive from Citibank argued
in these pages that two straightforward goals should guide Is management.
First, senior managers need an unbiased go-between- an independent auditor
- to translate the arcane language of Is staffs into business terms. Second,
they need to maintain a sense of "innate proportion" in making
Is decisions.
All is not well with information systems. But sometimes it´s hard
for managers to tell what´s gone wrong. To make rational decisions,
upper-level managers need an interpreter. Data processing has it own language,
but once past the language barrier, managers can make rational decisions
based on common sense. Is auditors are among the best interpreters available.
Let them do the fieldwork and attend all the meetings held in system development
projects. Do rely on common sense when the results from the audit are
in.
Always remember what you originally wanted the system to accomplish. Having
the latest, greatest system and a flashy data center to boot is not what
data processing is supposed to be all about. It is supposed to help the
bottom line, not hinder it.

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If a new software system comes out that promises to do everything you
want, wait until all the pieces of the system are fully operational and
functioning. Let some other companies install the system first and go
through the anguish of debugging it. Be conservative. Does your company
really need the latest? If it will add nothing to the functioning of your
primary business - say, producing springs - then common sense should tell
you that it isn´t necessary to be on the technology´s cutting
edge. If all this sounds basic, it is.
Management has a few defenses against Is chaos: the use of system development
life cycles, excellent documentation, and strict standards that are enforced.
Above all these, though, is an overriding sense of innate proportion and
common sense in upper management. Without them, the profits of most companies
will eventually be lavished in vain on the latest and greatest state-of-the-art
technology in data processing and programming extravaganzas.
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