business

What is information?

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What is information?
It is the answer to the question asked.

What is a data system?
A system that holds data?

What is an information system?
A system that help you answer the question asked (often using a data system)

So... if information is the answer to the question asked, then what is the question?
A mechanism is needed to help us focus and to ask the right questions. The mechanism should allow us to focus on the things that are important in the organisation.

Does such a mechanism exist?
Yes - Theory of Constraints.

How does the mechanism work?

Lovemarks II

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Human beings are powered by emotion, not by reason. "The essential differences between emotion and reason is that emotion leads to action, while reason leads to conclusions" - Donald Calne.

Primary emotions. These are emotions that can be felt alone. They are very intense and cannot be controled:
* Joy
* Sorrow
* Anger
* Fear
* Surprise
* Disgust

Secondary emotions combine head with heart. These require another person around before they can be worked up:
* Love
* Guilt
* Shame
* Pride
* Envy
* Jealousy

.. and the greatest of these is love ...1 Cor 13:13

Measurements of not-for-profit organisations

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The Theory of Constraints (TOC) is a powerful technique for harnessing the intuition of managers to achieve "The Goal". In Goldratt's book The Goal, which is about production systems, he defines the goal as "To make more money now and in the future".

Holistic approach to TOC - Necessary and Sufficient

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I've just watched a presentation by Eli Goldratt about the holistic approach to implmenting TOC. Here is a synopsis.

About 2% of all people who read 'the goal' have implemented the Goal even though everyone agrees it is good, and is common sence.

The history of cost accounting

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I have been reading a book called The Haystack Syndrome by Eliyahu Goldratt. It is mainly about how to design an information system, but it does provide a good summary of the ideas behind the Theory of Constraints (TOC).

He outlines how we use cost accounting to run our businesses, then goes on to use solid cause and effect logic to explain the pitfalls of using these methods. His analysis is very interesting.

Here is a breakdown on his rendition of the history of cost accounting:

Web to Life is born

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Since I am finding myself doing a lot web development for people these days, I thought it was about time that I created myself a website. I am really hot on the Drupal CMS at the moment. It is fantastic with what you can do with it. It can do static content, social networking, e-commerce, and pretty much anything else you want it to. There are about 2,500 modules freely available to download from the http://www.drupal.org site.

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