Computer Selection in Small and Medium‐size Businesses

Pages31-32
DOIhttps://doi.org/10.1108/eb057245
Date01 March 1982
Published date01 March 1982
AuthorSteve Coussins
Subject MatterEconomics,Information & knowledge management,Management science & operations
Computer Selection in Small
and Medium-size Businesses
by Steve Coussins
Associate Director, Information Consultancy Division
CMG Computer Management Group (Southern) Ltd
There are many problems that face an organisation or
specialist department considering the introduction of an
in-house small business computer system for possibly the
first time. However, there
is
no doubt that the introduction
of computer techniques to business organisations often
make a dramatic impact on efficiency and prove in-
valuable in maintaining a competitive edge. Equally, there
is no doubt that computerisation, unless handled by people
with relevant experience, can prove to be a disatrous ex-
perience.
Computerisation, unless handled
by people with relevant experience,
can prove to be a disaster
In most cases the reasons for disaster are, either, the
determination of managers to go it alone in a complex
specialist field without essential computer knowledge, or
the bringing in of the computer manufacturers at far too
early a stage of the overall project, before the business re-
quirements have been clearly defined and documented.
Computing equipment tends to be sold using conventional
marketing philosophy. Suppliers representatives will rarely
do other than state that the equipment they are selling will
adequately handle all requirements of the prospective
client.
Before a study into the possible installation of an in-
house computer can begin, the relevant management must
be made aware of the capabilities and cost of small
business systems. This can be achieved by attending
seminars, conferences, demonstrations, and by speaking to
other users who operate similar businesses. Further
reference can be made to system evaluations carried out
and documented in trade magazines.
Once a manager has assumed the responsibility of in-
troducing computer processing into an organisation, the
next stage should be to ask the question: Is it cost effective
for me to use a computer to the benefit of my business? If
for example, the company has problems with particular
routines, bringing in a computer in the hope that it will
provide a solution may only compound the situation.
Unless the manager has spent considerable time in the
field of data processing, it may also be necessary at this
stage to employ the services of an independent computer
consultant. A preliminary feasibility study should be car-
ried out to define the particular functions which may be
computerised and to establish the relative importance of
these areas. This necessitates an overall analysis of current
methods and problems, the pattern of work flow and in-
tegration of departments with each other, and where rele-
vant, applications already computerised.
The feasibility study often proves to be beneficial in
itself allowing a complete assessment of the business and
management systems and questioning the validity of conti-
nuing to operate in a given way merely because "that is
how we have always done it". It may even be the conclu-
sion of this study that the reorganisation of internal pro-
cedures would be more beneficial than immediate com-
puterisation. Once the feasibility study has been completed
and assuming a sound case for data processing has been
established, the next stage will be to prepare an overall
system design.
It will first of all be necessary to define the requirements
and the approach to be adopted for each distinct applica-
tion. This will take the form of a system proposal, with the
inter-action between each area clearly established in suffi-
cient detail to enable those responsible to evaluate the
system(s) as a whole. An overall economic evaluation in-
cluding expenditure required, expected saving, resources
necessary and a timetable for the remainder of the project
should also be established at this stage.
The point must be made, however, that it may not be
feasible at this time to define the exact methods of meeting
the requirements, as there will be certain factors which can
only be decided after detailed proposals have been received
from the potential hardware/software supplier. For exam-
ple,
the exact content and layout of the hardware con-
figuration may vary depending on the supplier, and when
utilising application packages it may be beneficial to make
report layouts conform to that package.
Before installing an in-house computer
the management must be made aware
of the capabilities and cost of the system
The outline proposal will include, in user terms, details
6f input and output documents, processing, and integra-
tion requirements, future enhancement facilities, process-
ing frequencies, and estimated volumes allowing for future
growth. To enable a potential supplier to determine the
hardware and software requirements fully, it is essential
that the volumes of all input, master and output files are
realistic. The proposal should indicate maximum file sizes
and record contents. Details must also be given of the ex-
pected frequencies at which records will be updated and
added to each file. Once agreed by management and pro-
spective users of the system, this outline proposal forms
the basis from which detailed specifications can be drawn
MARCH/APRIL 1982 31

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