Reaching your computerts full potential

ECAUSE computers generate as many questions as they do pieces of paper, we thought we would begin this piece with a question:

Which of the following is the most difficult?

(l) Paying for the computer.

(2) Deciding on which system to buy.

(3) Using the computer system you bought.

Many who would pick Number I probably don't already own a computer system. Those who chose Number 2 are likely in the middle of selecting a system. But if you already own a computer, you correctly picked Number 3.

Actually this was a trick quiz. All three of the choices are arguably difficult. But the real challenge is in using your computer system effectively. So be forewarned. There are challenging times ahead for all computer users, past, present and future.

There are three phases to computerizing your business.

Phase I is completed when you are functionally on a computer. This means that your transactions (invoicing, receipts, ROA's, quotes, PO's) are all processed by the computer.

Story at a Glance

The three phases of compubrization to reach system's full potential, don't see steps as roadblocks.

Phase 2 is completed when the data created by Phase I transactions are verifiably accurate. The easiest measure of this is to ask yourself, "ls the information in my computer accurate enough to base compensation plans on?" You may never actually do that, but your answer to that question will let you know how much you trust the data.

Make The Most Of What You Have

No one wants to make a large capital investment considering today's economic climate. Making the most of what you already have will be the standard for the next few years.

When it comes to the decision to install a new computer system to replace an existing one, it's more difficult than it was four years ago when you needed the depreciation.

"However, many companies are offering more options than just selling replacements for old products," says Dave Waddell, Dataline Corp.

For instance, he points out that his company has opened regional

Solution Centers around the country to provide product training and consulting services to lumber yards and building products centers. The new twist is that classes and services are not limited to computer oriented topics, but range into true information and business management for anyone with a computer system.

Another example offered by Waddell is the system audit now available from Dataline. This is an indepth review of how a business operates with a needs analysis of its data processing system. Many companies have had a turnover of those originally trained on the system as well as having the

By Dinny Waters Dataline Corp.

Phase 3 is NEVER completed! Assuming you got through the first two, this is what the computer is all about. It's what the salesman told you you could gain by buying the computer. What was left unsaid was the amount of work, training, management skills, time and money that the whole process was going to require.

Achieving Phase I is relatively easy; it's what you get when you buy the system and receive initial training. Phase 2 usually requires more time and energy than additional equipment or training. Phase 3 is a different matter.

Technology is changing rapidly. Today's capabilities are staggering. And if you are not creating data, you can never use it. Ifyou are creating it and not using it, you're not getting your money's worth. Talk to other dealers who are successful with their computer systems and you'll discover that they have continued to invest both time and money to achieve even greater benefits.

system evolve significantly since it was first installed, he explains.

"There are probably new features and programs available," Waddell says. "The best route prior to thinking about a new system is to take a good look at what you already own. A couple of software modules or a new program may be all that is needed."

Because the computer industry is extremely dynamic, it is diflicult for someone not involved to keep up with all of the changes, he adds. Small companies with no time to research or implement new practices can save money by using a consultant to guide them.

Food for thought: Learning from the grocery industry

Though some claim the home improvement industry is recession resistant, few industries are more recession proof than the grocery business. People always need food.

Consequently, many trends and innovations first surface at the supermarket. Building material retailers may catch a glimpse of their industry's next month, year or decade by looking at grocery stores today.

Bar coding is firmly entrenched. "The next step is making use of scan data," says Priscilla Donegan, Progressive Grocer. Scan data can improve inventory control, ordering, employee scheduling and marketing.

Just-in-time delivery and electronic merchandising are also coming in big. "There's real growth in electronic coupon machines at the checkout," says Frank Hammell, Supermarket Business. "lt prints out a coupon, redeemable at that store for a related product. You buy dog food, you get a coupon for dog treats."

Coupons aren't as popular in home centers, but handing out offers for deck cleaner to a decking nail buyer makes sense.

On the other hand, highly touted self-checkout machines have been disappointing in test stores. "Customers don't want to do it. They've got nothing to gain from it," says Donegan.

Giving hope to smaller retailers, the move towards warehouse-sized grocery stores has been cut short. "Store size peaked in 1987," Hammell says.

Adds Donegan: "People said enough is enough. They don't want to buy tires where they buy their eggs."

With the depressed economy, trading down is common. Still, consumers will pay for added services. "The convenience factor outweighs the price factor," she says. "They're willing to pay a little more for precooked items or food prepared in the store."

Translated to d-i-yers, look for easier to assemble, pre-painted, value-added products and installfor-me services. The microwave age may next hit the home center.