Eli Schragenheim currently writes an informative blog and his latest contribution focuses on an analysis of technology, in this case Blockchain.
Let’s start with Goldratt’s Six Questions on assessing the value of a new technology. This is a great tool for guiding us to raise the right questions and look for possible answers:
What is the power of the new technology?
What current limitation or barrier does the new technology eliminate or vastly reduce?
What are the current usage rules, patterns and behaviors that bypass the limitation?
What rules, patterns and behaviors need to be changed to get the benefits of the new technology?
What is the application of the new technology that will enable the above change without causing resistance?
How to build, capitalize and sustain the business?
Eli Schragenheim sums up the work of Dr Goldratt as described in his easy to read business novel Necessary but not Sufficient and his audio work Beyond the Goal: Theory of constraints. Dr Goldratt starts with a seemingly simple statement:
Technology can bring benefit if and only if it diminishes a limitation.
From this statement, like Eli Schragenheim in his blog, Dr Goldratt evaluates the technology that is available in nearly all medium and big enterprises: ERP.
I only have exposure to SAP as an ERP, and I am not impressed. Dr Goldratt predicted in his analysis that SAP-Hanna would be needed to clear up all the complexity of maintaining SAP. Since Dr Goldratt’s analysis was not based on any specific ERP system, the conclusions are valid for other system providers as well.
Managers are asked to test and buy new technologies nearly every day. Many of the past purchases caused more harm than good. The six evaluation questions above will enable managers to test the technology and prevent damage from coming to them and their organisation. Please, let us #ThinkaboutTechnology.