20th century enterprises cannot gather accurate business data or provide accurate business management information
No enterprise today gathers accurate actual business data and manages the enterprise business by using accurate management information directly related to the business. Enterprises have much to gain by gathering actual business data and providing specific business management information solutions to manage the business properly to create strategic value.
Enterprises also have much to gain by eliminating the overload of information maintained on artificial enterprise organization and management structures laid over the business. Most of this information is irrelevant to the actual business and requires high cost hardware, software, and capabilities to maintain.
Enterprises also have much to gain by properly organizing and leveraging information to create value. Information is not managed properly for support, integration, and utilization in today’s enterprise.
Most 20th century information is not managed as capital
In today’s enterprise, information capital tends to be managed by various functions, like Information Technology, accounting, human resource administration, and corporate planning; as a functional duty, rather than as a capital management responsibility.
Information tends to be provided as a by-product of implemented systems and processes or otherwise made available, rather than provided as specific solutions delivered when and where needed. Since the business is not organized, no integrating entities precisely describe the business. Therefore, information is provided on a multitude of entities used by various information systems to describe the enterprise, creating large information complexity, data reconciliation, and information integration problems.
Many enterprises manage corporate business information as technology, rather than as capital to be utilized, preventing the proper management of information as capital and development of specific information solutions that must be delivered where needed to produce value in results.
Enterprises must manage information capital from two perspectives
Rule No. 3 of the 10 rules for 21st Century Management is to organize and manage capital for high utilization and return. This means that information capital must be managed from two perspectives:
- Information must be organized and managed as capital for development, support, and maintenance to provide new performance solutions and increase capital worth
- Information solutions provided must be integrated and utilized to create value in results for the return
Different kinds of information require different professional capabilities to manage and support. Much of our 20th century information handling is based on this. Accounting records and knowledge are managed separately.
From the management perspective, we have four kinds of information that must be managed separately: data, knowledge, records, and intelligence. Data requires business understanding and analytical ability, knowledge requires human development and education skills, records require administrative ability, and intelligence requires research and management analysis ability.
Manage data to know specific results produced and performance utilized by the business
The actual enterprise business is defined by only two entities; performance solutions utilized and results produced, which are the integrating entities to deliver, apply, and retrieve information anywhere in the business. Yet, no enterprise today captures actual business data on performance solutions utilized as a set and results produced as another set. This includes data on performance costs, result value, result value-added, and capital worth.
Business data must be managed as business capital, together with business organization and business processes, not as information technology separate from the business. The business data unit is responsible for all access, organization, maintenance, and accuracy of business data. The business data unit is responsible to provide business data solutions needed to produce business and management results.
The business data unit manages data on other entities involved in the business for capital utilized and created, enterprises interacting with the business, and time periods to the strategic horizon. The business data unit also integrates other information with business data to provide integrated information solutions to produce results.
Manage human knowledge to provide instructions and support for utilizing solutions and producing results
Knowledge is human capital managed with human personnel and human capability capital. Knowledge is needed to develop human capital and support human capital to utilize their capabilities and other solutions to produce specific results. Knowledge capital is developed as needed learning programs and as knowledge solutions needed to utilize complicated performance solutions and to produce high quality and value results.
Facility records keep accurate financial and non-financial records of the actual business
Records are facility capital managed with facility equipment and facility supplies. Record capital records information on every result to be produced and documentation on every performance solution to be utilized. Record capital records every business transaction to know results produced and performance solutions utilized. Record capital solutions are provided to management and regulatory authorities, and are provided as needed to produce specific results that build on previous results.
Management intelligence derives meaning from business information and research into the business environment
Intelligence is management capital managed with management strategy and management tactics capital. Management intelligence gathers information on the current and future business and competitive environment and potential future opportunities. Management intelligence analyzes this information and internal business information for future projections, potential problems, potential opportunities, strategic impact, etc. Management intelligence produces performance solutions to support other management capital results, to support business results, as needed, and to support management decision making results
Use R-pM to manage information capital to provide performance solutions for 21st Century Management
Result-performance Management (R-pM) organizes the enterprise business for 21st Century Management. R-pM reduces information capital management to gather data and other information directly related to the business. R-pM stores and manages only the information relevant to the business. R-pM reduces the large IT overheads needed to capture and store information that is not needed for business management. R-pM produces professionally-managed information performance solutions delivered and integrated, where needed, to utilize another specific performance solution and to produce a specific result. Learn more about R-pM at Result-performance-Management.com.
