When I was in college earning a degree in business, as I looked at the courses required to earn a business degree I realized, it takes a bit of intelligence to run a business. After these many years both, as a senior manager in business and as a public accountant this has never been more true. But what is business intelligence? A question I often ask business people is; What business are you in? At this juncture in my career it is a line used not only to get an understanding of the owners of that business and what they do for a living. It's also a way for me to potentially sell my services. Strangely, the answers I get range from deer in the headlights look to some classification that neatly places their business model into a category.
Some of the classifications I get are:
- I am in the food products distribution business.
- I sell auto parts.
- I am an exporter.
- I am a developer.
- I am an investment advisor.
These are all very general in nature. They are definitions that the average lay person understands and can absorb. They are short and easy to verbalize in a casual setting of small talk. However, I have a habit of listening to what people "do not tell me". More and more I relate to just about every kind of business as an information and technology business. After all we have an information and technology economy. In fact none of the above classifications will operate effectively or efficiently without information and a good dose of technology. All of the above classifications are in the information and technology business and what I continually find odd is; they often don't even know it.
In each and every business classification above, as different as they are, each relies on a very detailed database of who their ultimate customers are. Customer name, customer contact, telephone numbers, email address, physical address, zip code, city, region, typical purchase size or service level, typical product or service sought. In addition each has a vast database of their products and options. Product brand, product name, unit size, specifications, manufacturer, service provider. Even the investment advisor can size up a potential client to an array of financial products depending on earnings, disposable revenue and even the risks to which they may be exposed. Each employs a database of knowledge to be able to logistically deliver a product or service. In other words how to get the product to that place of business, at specific times, the costs of delivering that product or service, alternative transport methods. For the developer logistics is critical. How long will it take to build an office building? What construction trades do I need? Can I schedule them when needed?, What are the costs?, What are the component parts of construction? In what order do you begin in building?.
The vast majority of businesses use vast amounts of information in providing a product or service. The prior paragraph is only the tip of the iceberg of information in carrying out the daily operations of these businesses. Each one of these businesses uses computers to connect to the internet, to transmit information, to receive information, to receive and to give quotes, for billing, for payments, for planning, for accounting, taxation issues. Each employs a host of different types of software applications to carry out their business objective.
One only has to look at the vast size of the technology sector of the United States and how much business spends on information and technology and it quickly becomes apparent, every business is in the information and technology business. No matter what you do!
The accounting profession today goes beyond posting entries into your books or preparing a tax return. We too use technology extensively not only in providing a product or service. We also are relied upon by our clients to help them make better decisions by evaluating their financial, accounting, tax and their management information systems. As a business owner or manager you need to evaluate how well your trusted financial advisor sees beyond your accounting, and taxation issues. How well does your accountant understand your business and the world in which you operate? Does your accountant really understand information and technology and the business intelligence behind the scenes?
Is it time for you to reconsider your CPA?
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