Small Business Resources, Business Advice and Forms from AllBusiness.com
 

Determining Solution Costs

Monday, January 5 2009

NextStage: Predictive Intelligence, Persuasion Engineering, Interactive Analytics and Behavioral Metrics This will be a short post on selecting solutions to problems. There are three basic rules that come in three parts. The three basic rules are

  1. Make sure you understand the problem you're solving.
  2. Do some research before purchasing the solution.
  3. Purchase a solution, not a technology.

Understanding the Problem

Problems rarely appear fully developed. They take time to grow and get your attention. This is what fiction authors call foreshadowing. That rattle in your muffler today is your trip to the mechanic tomorrow. The problem might have only gotten your attention today and chances are you can backtrace it somewhat and come up with some logical reasons it occurred when, where, why and how it did.

This brings us to Part 1: Fix the reasons for the problem when you fix the problem itself. Unless you fix the reasons the same problem will show up again, if not in the same place then elsewhere. Also, by fixing the reasons the problem occurred you'll probably be applying preventive medicine to other parts of your business.

Do Some Research

Now that you understand the problem make sure the solution under question is a solution to the problem, not satellite issues. Can this solution directly and unquestionably affect the problem? Doesn't matter what else it can do, can it solve the problem you need to solve?

Let's say it can. Great. How easily? How quickly? How much effort is involved? Does the solution require maintenance? If it does, the solution is just another problem waiting to happen.

Now we're at Part 2: The solution must easily and unquestionably match the problem. This is "The Punishment must fit the Crime" writ large. You don't want to purchase a problem so do some research to insure that the solution is a solution to your problem and one you have high confidence will be successful. Without those two you're wasting your money and time.

It's the Solution, Silly

Say you've found a solution that you have strong confidence will work and directly addresses your problem. But you have to go to a new operating system to implement it. Or you have to implement a new CMS, or DBMS, or ...

This is where "purchasing a problem" often happens. Transition time costs and I've yet to see a transition that goes as smoothly as everybody says it will. The bright spot in this dark scenario comes from rule 1; Understand the problem.

Often understanding the reasons the problem occurred will guide and direct you when the best solutions require technology changes. Will the technology changes required to solve the problem also prevent this one and others from occuring? Lots of others or only a few?

This is Part 3: Technology is not a solution, a Solution is a solution. Technology can be very impressive and is rarely worth the cost unless it solves present and future problems without causing problems.

Summary

There are some simple rules to finding solutions to business problems:

  1. Understand the problem so you select a solution that addresses the reasons the problem occurred.
  2. Make sure the solution you're considering solves the problem without causing other problems.
  3. Technology (as opposed to process) based solutions must solve many existing and possible problems to validate their total cost (in time, transition, etc).

PS) you can read a sister piece to this at Three Rules for Providing Expected Solutions

Please contact NextStage for information regarding presentations and trainings on this and other topics.

Sign up for The NextStage Irregular, our very irregular, definitely frequency-wise and probably topic-wise newsletter.

In addition, make sure to read these articles:

Latest Comments in  posts

So often in business and marketing we find a problem then go off chasing a solution that simply isn't relevant! So, yes, determine the exact nature of what needs solving before investing in an expensive "solution" that isn't going to solve anything for you!
By: zowoco on 1/13/09 at 10:43 AM
A solution to real estate investing

Important Advice for Investing in Real Estate Property


When investing in real estate, they say that the three most important things to consider are "location, location and location and location.This is the problem" That's because the location will determine the value of the property. If your chosen property is in a prime location in the city, you can expect the price of the property will be much higher compared to buying properties from another area, far from the city or town. If you're seriously considering investing in real estate properties, you'll need the following:
1. Investment capital or a legitimate means of acquiring it.
2. An adequate knowledge of both the real estate market and the neighborhood in which you're planning to buy your property.
3. Good management abilities and above-average negotiation skills in order to get the property you want at a price you can afford.
4. The ability to do repairs on the property, or to hire others to do them for you. Remember that if you have a reputable agent, you'll save a lot of money on your investment.While you may not always be able to find, evaluate and buy inexpensive homes that are either in foreclosure or "fix-uppers" that can be around quickly, you can still become a landlord for the property as it increases in value. But be very careful to whom you rent, because you have to make sure that your property is well maintained. That?s when you find a good agent to assist you reaping more profits.Since investing means spending money in order to make more money, you'll need capital. This is one reason why many people venture into real estate after they have saved a sizable amount of money, usually starting by selling their current home and then buying a buy a smaller place for themselves plus another investment property with the help of a reputable real estate agent.As mentioned above, location is an important factor in buying real estate, so make sure that you do your research first. Check out the area's schools, libraries, businesses and public amenities, attend city council meetings and surf the Internet.
By: Jackson Ndungu Njogu on 1/14/09 at 4:44 AM
Thanks for reading and commenting.
I think all of us have witnessed companies being sold solutions that don't match problems and such. It's sad and true.
I'd like to think experience pays in these situations and I've learned that experience can often get voted down if not out in certain situations.
Again, thanks for reading and commenting. - Joseph ...
By: on 1/16/09 at 2:11 PM
Thanks for the advice. The great thing about real estate is that they stopped making it a while ago...unless you live near an active volcano, perhaps, or the sea is receding.
By: on 1/16/09 at 2:14 PM
You must sign-in or sign-up to comment on this post.

Interactive Blogger Map
Use our interactive map to figure out where Bloggers are located

View AllBusiness Bloggers in a larger map
Franchising Expert
mleonard_80
Ask Mark Leonard, Our
Franchising Expert,
Your Question
Small Business Expert
rlesonsky_80
Ask Rieva Lesonsky, Our
Small Business Expert,
Your Question
B2B Sales Expert
jkonrath_80
Ask Jill Konrath, Our
B2B Sales Expert,
Your Question
Business Travel Expert
krosen_80
Ask Ken Walker, Our
Business Travel Expert,
Your Question
Finance Expert
sthacker_80
Ask Sam Thacker, Our
Finance Expert,
Your Question
Invention Expert
Ask Stephen Key, Our
Expert on Licensing Your
Invention, a Question