Opinion: Filling the Information Gap

By Tom Weisz

resident,

MW Systems

Not long ago, I attended a management seminar where we viewed a short video that I believe was highly instructive and immediately applicable to carriers. In the film, a chief executive officer was faced with explaining his company’s poor quarterly performance to the board of directors. He was inadequately prepared to do so. He simply did not know his business as well as he should. Nor did he have the ability to get the information he needed to adequately follow up the board’s appropriate questions.

This of course resulted in extreme embarrassment for the CEO. To compound his error, he instinctively turned to the chief information officer and demanded a new system that would “give him all the answers,” satisfy the board and reduce costs. The CIO just as instinctively, without any discussion, jumped to the conclusion that the CEO wanted a cost-reporting system. Both of them went away from the meeting feeling that they had a plan, but neither one of them knew how their actions would result in a solution to their problems.

While that is a rather condensed version of the film, its message was quite clear: Before we invest in technology, it is imperative that we understand exactly what problem it is that we are trying to solve.

Is this a problem that technology can solve? If so, what kind of technology is needed to solve the problem? How would the organization accept the new technology? What organizational impact will the new technology have? What kind of management changes will be needed to realize any benefits?

In the film, the CIO was the one who had to muster support among various department heads. Approaching this assignment as a technical problem, the CIO was very surprised when the department heads looked at the proposed system from a business issues point of view. They immediately asked questions like, “How is this going to affect my department’s goals and our processes? What about my compensation structure, my career?” They were all in the same meeting but they were all talking at each other and in different languages.

As I viewed the film along with my fellow students, all seasoned business veterans, we smiled sheepishly as we each saw ourselves as having been actors in this tragic-comedy many times in our own business careers.

Changing business issues drive change. Too often, though, the gap between a perceived need and its perceived solution is quickly filled by "technology." Investing in technology cannot be approached as a series of isolated events using a patchwork mentality that causes us to simply pile one building block on top of another. We must consider organizational structures and business processes, and be sure our commitment to technology supports our objectives. Technology is a tool, but only by addressing how it helps us accomplish our organizational objectives will we be able to realize its benefits.

Once we’ve clarified our needs, it is critical to address the adoption of technology in terms of our business process. We must ask how well technology and processes work together to bridge the gap between information needs and business goals. Then a thorough understanding of how best to implement both the process and technology change to enhance business operations is required.

There are many technologies already available to trucking companies that offer great promise if they are chosen carefully and implemented correctly. There are also many suppliers pushing the envelope and developing new and integrated solutions that will enable transportation operations to further improve their efficiency, productivity and profitability.

In the not too distant future, for example, you’ll be hearing more about the latest information management solutions that can deliver comprehensive yet customized knowledge. Additionally, advancements in wireless, security and identification, in-route visibility and outsourcing options, to name a few, are coming to market almost daily. Other web-based technologies continue to offer great promise to trucking.

In any business, and especially in tough economic times, technology can be the great enabler. It provides an opportunity to improve efficiency and productivity, and consequently boost profitability. Yet, regardless of where in our operation this new technology is applied, we must first ask some key questions:

What are our current business issues (i.e., opportunities, constraints)?

What are our goals?

What is the strategic direction we should take to achieve these goals?

How will these decisions impact our daily business processes?

What types of information do we need?

What types of skill sets do we need?

To answer these questions effectively, and before we can apply the fundamental concept of good business decision-making (such as cost-benefit analysis, ROI, etc.), we must address the gap between the answers to our needs and a viable technology solution. With that knowledge, we can drive the inefficiencies out of our business and maximize the efficiencies.

As I said earlier, technology is the catalyst for process change. By considering organizational structures and businesses processes and making sure our commitment to technology supports our objectives, technology is a tool that will help companies work better and achieve benefits that have recurring value.

TMW Systems is a developer and integrator of enterprise management software for the transportation industry. Before founding the company in 1983, the writer served as director of software at Leaseway Transportation and was instrumental in the development of the trailer-tracking interface standard adopted by the industry in 2000.

This story appeared in the May 6 print edition of Transport Topics. Subscribe today.