IT in Untapped Markets

In talking about Enterprise Resource Planning packages, it is hard to deny what great benefits they can offer.  Here you have one system, a couple of databases, and modules allowing every business unit to work in harmony and utilize near real-time information.  This seems like the natural way to conduct business.  This, however, can be difficult to achieve.  There are many very successful firms that are operating off of very archaic tools.  I recently had the opportunity to hear a local CFO describe their IS in terms of its database and CRM capabilities.  This company provides remodeling products for homes.  Their position is high quality at a really good price.  Their prices are too high for contractors, but they blow the competition away in terms of remodeling.  One of his chief complaints is how unorganized their data is and how much they have going to waste.  No one is looking at the information.  Also, he found himself having trouble getting additional licenses for MS Access 2003!  I couldn't believe they were using Access and Access 2003 nonetheless.  This industry is one in which none of the local competition relies on IT to add strategic advantage.  This CFO also cited their problem of scheduling their salespeople.  He wants to find a way to efficiently schedule appointments to keep salespeople from driving halfway across the state to get from one meeting to the next. 

I guess we see all these great ideas and presentations about companies undertaking huge implementations, but the reality is that there are plenty of good companies using very basic information systems.  It is a company like this that could really see strategic advantage due to the competition not even thinking about utilizing IT.  In contrast, I was blown away when I recently had my carpets steam cleaned by Stanley Steemer.  With a hand held device (a rugged PDA), they were able to completely get all my information, run a credit card, and even print a receipt right there in my living room.  It was nearly paperless (other than the receipt), and that information will be transmitted into their database ready for analysis much sooner than processing a paper copy.