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Driving force

Steering a company with the right control panel - Part 1.

Yolanda Smit
By Yolanda Smit, strategic BI manager at PBT Group.
Johannesburg, 06 May 2011

In the evolution of companies over the last 20 years, the body of knowledge regarding managing a company (strategy formulation, leadership, disciplines, technology, etc) has boosted the growth of enterprises to become super-companies - operating and trading globally. The question now, however, is whether the existing body of knowledge is sufficient enough to sustain these super-companies' strategies and continuous growth going forward.

In other words, companies have evolved from leisure vehicles such as the Jaguar XJ to become mission-critical strategic vessels like a nuclear submarine. Now, are users still steering their submarines with the original control panel of the Jag? Or have they upgraded and expanded to a control room that will effectively support the sustainability of the now strategic vessel?

Let's evaluate the difference between the control panels of these two vehicles on the hand of three factors: (1) People, (2) Data, and (3) Technical architecture.

People

In simple terms, the Jag only requires a driver (one person) to operate the vehicle. On the flipside, however, a nuclear submarine requires over 100 crew members to operate. The crew is divided into different groups.

Are users still steering their submarines with the original control panel of the Jag?

Yolanda Smit is senior BI business analyst for PBT.

For example, the executive department works for the executive officer and performs various administrative tasks. The engineering department is responsible for the safe operation of the nuclear reactor, while the weapons department maintains the ship's torpedoes, missiles, and sonar suite.

Taking this into consideration, it is critical then that a business has the right people in the right positions throughout the organisation to ensure the strategic intent is achieved.

Data

The driver of any vehicle needs some data while operating the vehicle. In a Jag, drivers would need high-level health data regarding fuel-level, oil-level, and engine temperature, as well as behaviour data like speed and revolutions per minute (RPMS).

The Jag further expands on this to include distance, trip computer functionality and key information for navigation. The driver may also enjoy the luxury of environmental data, such as day-time temperature, but this is not critical.

In the case of a submarine, again the normal health indicators (power-levels, cabin pressure, weapon status) and behaviour or performance (direction, speed, depth, noise level) are to be monitored. However, the lack of a windscreen amplifies the need for environmental data. Where are we? Who is out there? What's the weather like? Any obstacles en route? These are all valid questions to be answered by the navigation and watch teams.

In short, a super-company needs direct access to a wide variety of relevant, accurate information in a timeous fashion to enable effective decision-making.

Technical architecture

The Jag's basic controls consist of a steering wheel, brake and fuel pedals, Jaguar's sequential shift automatic transmission, and a virtual instrument dashboard with all the data displays. The only key communication device is installed in the steering wheel - the hooter.

In contrast to this, the technical architecture of the submarine is in a totally different league. Next to the main control panel, used to monitor ship behaviour and direction, are the navigation and tactical plotter tables where tactical manoeuvres are born. These teams can plot “practical implementation plans” because they are in close proximity of all the teams, providing them with the necessary data. Then there's the weapon and fire controls and the sonar control panels.

Most importantly, the submarine has a sophisticated communication system. There's an internal communication radio system that connects the chief of station with all team members aboard the ship, as well as an external communication system that allows for messages to be sent between the ship and the military mission control.

The technical architecture serves as the enterprise's engine that can empower a super-company to successfully operate and ultimately attain strategic achievements.

Business intelligence

Considering the above, how can a company upgrade the control panel of its organisation to the level that will support and sustain the vision and strategy of a super-company? Business intelligence can become the control panel that is needed to effectively steer the organisation in the right direction.

By ensuring that (1) all relevant role players (people) are involved in the design, development, and use of the BI system; (2) that they are provided with all the relevant data; and (3) are empowered with the correct BI architecture, BI can thus become the heartbeat of the organisation. This may further spur the next phase of ultimate strategic achievement: growing from a super-company into a mega-company.

Part 2 will explore a model for BI that will gear BI towards supporting and empowering strategy implementation.

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