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Making better business decisions

By / January 8, 2014 / / 0 Comments

I recently came across a series of posts by Michael Fauscette looking how organisations can make better business decisions.

Michael is Group Vice President, Software Business Solutions at research firm IDC. He proposes that to achieve better business decisions organisations need to move from Industrial Age style practices to ones that will drive success in the Information Age.

In his first post Michael encourages organisations to move away from Industrial Age practices as they resulted in creating predictable and repeatable processes that are key to operational efficiency. During the Industrial Age operational efficiency was seen as a competitive advantage. However these predictable and repeatable processes instead create a rigid inflexible environment that does not adapt well to change. For organisations to survive in the Information Age they need to look at embracing processes and practices that promoted “flexibility, agility and adaptability”.

From Michael’s first post he gives us a summary of how this might look within an enterprise:

It’s about moving beyond “make – sell” to a “sense – respond” model (which I wrote about here). In this sense and respond model, big data must be transformed into smart data, or data in the right business context and in the hands of the right individual or group at the proper time. In truth the new found agility and flexibility has quite a lot to do with this smart data and it’s timely delivery to the right employees. Making business decisions with more accurate data and in real time is competitive advantage. The new applications platform has to move beyond transactions and incorporate decisions and relationships to facilitate the effective decision process.

Michael’s summary articulates the key trend I wrote about just before Christmas as part of the SilkRoad’s #HRTechTrends blogging carnival – the integration of relevant data into applications that can be leveraged at the right time to transform a business process.

As part of his second instalment, a video embedded below, Michael expands upon the “sense – respond” model introducing how technology is a lever and an enabler to move to this model and as always technology alone will not result in success.

In his final post Michael explores how an organisation could set themselves up to embrace the “sense – respond” model and be truly successful in the Information Age. To do this Michael reviews four key elements of any transformation process – people, culture, process and tools.

What is the key message for HR Technology professionals from these posts?

Just looking to drive automation, efficiency and repeatability into the HR department will not necessarily set them up for success in a data driven world. Instead we need to look at ways to help HR, managers and employees take contextual information at relevant times in a business process and make it available for better decisions making.