HomeMy WebLinkAboutThe Citizen, 1997-04-23, Page 7THE CITIZEN, WEDNESDAY, APRIL 23,1997 PAGE 7.
Consultation aids business technology success
By Janice Becker
Citizen staff
With the increasing desire for efficiency, cost cutting and
improved output as businesses move towards the 21st
century, business and technology may seem to go hand-in-
hand. However, the marriage may not always be productive.
That is where a business consultant such as Brock Vodden
of Blyth steps in.
Though Vodden deals with technology used by a
corporation, the consultation he does goes far beyond the
hardware of increased efficiency.
"We (as a member of a Markham-based consulting firm)
analyze the company to determine how computers can make
the business more efficient. We look at how they can do the
job differently, not just on a machine," says Vodden.
"We work with the (company) team to get an idea of what
the business is about and find out what is best for them."
There are two phases a company goes through when
purchasing or upgrading computer equipment, he says. The
first is to acquire the machinery.
"Many believe that if they buy technology, they will be
more efficient, but it doesn't always work out that way.
They may just be replacing the manual labour."
If a business goes from doing their accounting by writing
numbers in a book to punching them into a computer
program, nothing has changed, he says.
"There is also the added expense of the equipment,
training and the time spent talking about the purchase and
the computers once installed."
This first phase is called the business processes
improvement phase and should be not be undertaken
without consultation within the company, says Vodden,
though it frequently is.
"The decision to buy technology is based more on the
product than the need," he says. "They are off just paving
cow paths."
The incentive to purchase equipment is to streamline the
business and better serve the customer, he says. A consultant
can determine how technology can best address those issues.
"Many companies may never get to phase two where they
realize what information systems can do for them. They
miss the opportunity to become more productive."
If the next step is not taken to change the way business is
done, valuable information for the clients, staff, suppliers
and the business can be lost, he says.
Information may not be a usable form such as a piece of
paper in a file.
"I see information lost when an employee solves a
problem for a customer, but there is no sharing of that
solution for a second staff member who may be faced with
the same problem at a later date."
This part of the business operation has as much to do with
taking down the walls between departments as with the use
of technology, says Vodden.
"We try to change the way a company looks at the
processes it uses. Instead of dealing -with the accounting or
sales department, look at all the staff who work with the
clients."
This is where phase two, or the systems and organization
of the business come into play.
A training specialist will set up a training plan for a
specific system, involving all the people who will use it,
though in different ways.
"Technology provides the opportunity to store and share
information and enable better decision making," Vodden
says. "Most problems are due to relations between
departments. When those departmental "silos" are brought
down, solutions to transform operations are found. The
company is re-engineered along process lines."
Once this change is implemented, Vodden says the
employees see the sense to it and they gain a new
perspective of their importance to the business.
"New insight is gained and employees say, 'We never
thought of it that way'," Vodden explains.
"In consulting, it is
the relationship built
with the client that
brings results," he
says. "We tailor our
solutions to the
company. We try to
get staff involved as
much as possible so
they can gain
independence from
the consultant. We
educate the staff."
Vodden believes it
is foolish to get staff
involved if they
think they are
planning their own
retirement. "In many
cases, downsizing is
not justified. The
results are poor and
the business is losing
personnel with
experience and
dedication. They Brock Vodden
should be re-located to a more useful function where they
will do valuable work and use their skills and abilities.
Downsizing also demoralizes those who are left."
However, Vodden points out that some jobs are created
due to the inefficiencies of the company. "Their job is to
check and correct errors."
After 20 years in the business, Vodden says there is value
in talking to someone, even briefly, before upgrading
technology.
"The advice may be more important than the technology.
Any equipment will work, but if employees don't understand
it the problem may go in the wrong direction."
Outsourcing a viable option
The recent recession triggered so
much downsizing and restructuring
that many businesses simply no
longer have the resources to do all
the things they need to do. But
neglecting essential functions is
like neglecting your health -
sooner or later you will hurt.
One increasingly popular
solution, says Joe Broughton, CA,
partner-in-charge of KPMG's
Independent Business Advisory
Services, Hamilton/Niagara region,
is "outsourcing" - or contracting
with outside suppliers for the
specific skills and services your
company does not have.
According to Pat Lafferty, CA,
who works in the business
planning practice of Coopers &
Lybrand's Ottawa office, the types
of services that best lend
themselves to outsourcing are
"well defined, with a clear
beginning and end; easily
measurable; provided by
established suppliers; and offered
in a competitive environment."
These might include data
processing, accounting, staff
training, payroll processing,
reviewing product quality, market
surveys, efficiency studies,
printing, graphics, property and
facility management, cleaning and
janitorial services, public relations
and advertising - in short, any area
where your company is short on
skills and time.
Outsourcing is not a good idea,
however, advises Broughton, when
it is essential that you be in control
of a function or it is central to what
you do.
The biggest benefits of
outsourcing, says Lafferty, are
saving money - at least 10 per cent
and often considerably more - and
freeing up your time to concentrate
on your core functions. If you think
that outsourcing some of your
operations may be a good strategy
for your business, talk to your CA
first. He or she can help you
evaluate which activities can be
contracted out and which ones had
better remain under your own
control. Moreover, many CA firms
now offer a variety of outsourcing
services and those that don't will
certainly know who to call.
Moneycare is brought to you by
The Institute of Chartered
Accountants of Ontario.
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