Maintain Updated Information Systems

BY MATTHEW D. MOHR

Most people are aware of the disaster faced in August by Delta Airlines’ computer system malfunction. Almost every business faces the potential of a system crash. Packaged systems or internally developed programs all run the risk of errors and unanticipated operating problems both minor and major, so we all work diligently to avoid a business interruption caused by our computer system.

I am acquainted with a business owner from Chicago whose family has owned and operated many businesses over the years. The man has a strong personality and fights to dominate any industry he is involved with. Over time, he bought six different operating entities in the same industry across the Midwest, and in the process decided to keep each operation separate, allowing them to keep their systems in place. Unfortunately, none of the computer systems were consolidated or set up to “talk” to each other. The sales strategy employed was to cut prices and offer low margins and alternate goods to grow to a dominant market player. Market share was gained, and as a result of uncoordinated systems, many sales were made at profit margins below actual operating costs. The businesses in combination grew to be rather large and eventually went bankrupt. To the best of my knowledge, the businesses did not face excessive daily operating challenges or system malfunctions, but attempting to run six related organizations on six different computer systems created a losing scenario.

Updating computer systems is a costly, time-consuming and frustrating endeavor, as is dealing with daily computer glitches that hamper productivity. Delta Airlines was chastised (in a small way) by some in the media as having outdated software — some built way back in the 1990s. For some, the 1990s don’t seem that long ago, but in the technology realm, it is considered outdated.

Deciding what to do about technology improvement and usage is a challenge for every business and each entrepreneur needs to determine the best course of action for his or her organization. PB

Matthew D. Mohr CEO, Dacotah Paper Co. Fargo, N.D. mmohr@dacotahpaper.com

–Kristen | Fargo, ND

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