Teaching information systems to small business management

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Briefings

Teaching Inform on Systems to Small Business Management* Helmut Weber and Ernst Tiemeyer BIFOA, Institute forOrganization and Automation, University of Cologne, Universitri’tsstrasse 45, O-5000 Kiiln 41, F.R. Germany The availability of cheaper, more efficient small cornputers opened up the possibility for medium-sized firms to install their own EDP system. Nevertheless these firms do not make sufficient use of EDP. One major reason for this is the lack of management knowledge about good computer applications. The paper describes a way to cldse this gap. On the basis of pilot and empirical studies, a combination of introductory lectures, autodidacts studies, and concluding lectures is proposed. To support the small business management, a manual was fist designed. This deals with the practical problems and decisions of small and medium sized firms. In order to achieve better training seminars were designed that combined information materials with other systems of learning. The methods and the contents of these seminars including various case studies is described.

Keywords: ADP-Traini,:& tbr the management of small and mecriurr :ized enterprises; ADP, range and use; ADP -ase studies, construction and use; seminar concepts; computer application manual. Helmut Weber received his Dipl.Kaufmann degree in 1971 from the University of Cologne. Afterwards he joined the Betriebswirtschaftliches Institut fiir Organisation und Automation an der Universitit zu K0ln (BIFOA - Institute for Organization and Automation). There he has done information systems related research. Now he is executive managerof the BIFOA; besides he is project-leader of several research-projectsin infor* Pa$br”*$e&m&dat the “First European Workshop on Information Systems Teaching”, April 7- 10, 1981, *Aix+nProvence, France. North-Holland Publishing Company Information and Manwement 4 (1981) 297 -303 037&7206~81(0000-0000/$02.750 1981 North-Holland

1. The Basic Situation

Until recendy, the use of computers in Europe was almost completely restricted to large concerns and was mainly by the central use of large computers in computer centres. A fundamental change occurred with the emergence of new technology for automatic data processing. The construction of cheaper, more efficient small computers made it possible for medium-sized firms to install their own EDP system. Despite the fact that conditions have been improved considerably, small and middle-sized firms still do not make sufficient use of EDP. This generally is not because of economic considerations, but: -a lack of know-how on the part of executives of medium-sized firms elf the possibilities and limits of computer utilization; -an underestimation of the value of operational index figures for directing the company; these figures can only be made available promptly and economically by means of computer; and - the heterogeneous, unclear structure of the market , for EDP services.

mation systems, His main interests and research activities are: computer networks, data acquisition small computers, word processing, office automation, organizational analysis and design, teaching programs.

Ernst Tiemeyer received his Dipl.Handetslehrer in 1976 from the University of Cologne. Then he joined the: Betriebswirtschafliches Institut fiir Organisation und Automation an der UniversitPt zu KBln (BIFOA - Institute for Organization and Automation), where he was member of several research projects about infornzation systems. His main interests are: organizational analysis, hardware and software choice, word processing, problems of management training.

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The result of this is a widespread disorien ation in medium-sized businesses when faced with the question of using computers. This frequently 1 revents rational decisions bejAg made about installation and introductory measures. ln order to develop the efficiency reserves of Data Processing in small and medium-sized firms, it is necessary to raise the level of managements’ knowledge about possibilities and problems involved in the utikatiorl of computers. Because the information and training generatiy available is either strongly mnufactrlrer-orientated or else makes too little reference ‘to the particularities af medium-sized firms, the institute for Organization and Automation at the UnitFeer:ityof Cologne (BIFOA) has developed and festr?d an overall concept to enable small and metliun, -ized companies to apply a sound basis for making decisions in connection with the application of EDP.

2. Planrhg EDP Training for Small Business Management Tak~g the basic situation as assumed, a great need exists for impartial information (i.e. from sour,ces other than the manufacturers) concerning the range ;snd use of EDP in small and medium-sized firms. In particular9 potential

and

refonceptoal

2.1. FrameworkAnalysis Two factors determine the amount of room-formanoeuvring in devising training arrangements for executives in medium-sized businesses; the amount of time available, and initial attitudes (level of information, attitude towards EDP) of the persons involved. In general, external courses of several days duration are out of the question for the executives of small and medium-sized firms. Executives’ time is very scarce, and they can seldom be spared because of the nature of decision-making in their firms. On the: basis of our own investigations (from expert op.inion and ,secondary analyses), it can be assumed, &ith respect to initial attitcdes, that: -a knowledge of EDP is practically non-existent, -this lack of knowledge is often coupled with an attitude of Decided rejection towards EDP.

‘first users’, who have

recognized the possibilities of rationalization prowded by EDP reqr?ire some fundamental knowledge in order not to capitulate to a manufacture kfore b&g able to evaluate the diverse assortment of hard- and software. See Fig. 1.

feedback

A first prerequisite for efficient basic and extended training is the, elaboration of a suitable framework of requirements. This would include an analysis of the basic framework, consideration of learning objectives, subject matter to be imparted and possible methods and media to be employed. Moreover, it is necessary to estimate the time required both for the training as a whole and for certain special topics.

ftat

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I;& 1. MethI& for the Deveiopment of a Problem and User ted Cmwpt for Education and Advanced Training.

2.2. EstablishingPedagogicOrganizational Factors 2.2.1 Decisionsconcerning Goaland Con tents An essential factor in determining the amount of training (apart from initial attitude) is the scope of responsibilities and tasks facing executives. Taking this as our starting point, two types of learning objectives appear to present themselves for a basic EDP training course (see Fig. 2). These goals are to put the executives of small and medium-sized Arms into a position to: -make rational decisions concerning the utilization of EDP and -enable them to organize its use in an effective manner. Due to the large volume of possible topics for instruction, it is essential that a restrictive choice of subject matter be made on the level of detailed planning. Various possibilities present themselves; in par-

H. Weber, E. Tiemeyer / IS Teuching to Small Business Management Wanagere

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titular, it is necessary to concentrate on subject matter of fundamental and permanent significance, as well as on typical methods of procedure. Thus it seems pointless to pay attention to the technical details of EDP systems, since these are still undergoing substantial change. Thus they should only be discussed insofar as a ‘knowledge of them is necessary in chasing a system. In addition, specific software questions (e.g., learning special programming languages) are of secondary importance. The important organizational aspects due to the impact of computing in the firm are best treated as the total point of the training. Emphasisin& cru&l lroints makes it possible to impart knowledge tha: goes beyond the practical aspects and that is not solely of transient relevance. Crucial points include: the description of basic procedures for computer use in small and medium-sized firms, the analysis of criteria concerning choice of procedure, the representation of basic types of configuration, preparatory organizational activities, procedural method in introducing EDP. 2.2.2 Choice ofMethods Another essential factor is the procedural method employed. This involves employing teaching methods that, correspond to the educational background and particular rr!quirements of the trainees (see Fig. 3). Thus in deciding on adequate methods for use in training cocT.?‘ces for executives, methods must be considered, which promote “self-responsibility” and “self-activity”. These are probably the most impor-

tant prerequisites for subsequent success in executive learning. Therefore, the use of teaching methods that will promote and encourage intensive learning activity and a high degree of independent acquisition of knowledge in an efficient way are required. The development and utilization of programmed inst ructions offer substantially effective devices to accomplish this. Our methodical organization of seminars was based, above all, on our beliefs that a lecturer-orientated approach is widely rejected by persons with a higher standard of education, and that the higher the level of education and corporate position, the more working in small groups is accepted. Therefore, in addition to lectures, it is necessary to incorporate other modern methods (e.g. case analyses). 2.2.3 Use of the Media The use of suitable media (visual, audio or audiovisual media) can contribute greatly to the success of basic and extended training courses. While takir!g the orientation criteria (e.g., group of trainees, methodics planned, fundamental topic of instruction) for the choice of media into consideration, the goal should be to develop a carefully coordinated multimedia system. In addition to preparation of literature for selfinstruction, media are needed to increase the efficiency of seminars (such media generally include a set of clearly structured ojlerhead charts for the lecturer, as well as practical case studies prepared for didactic purposes).

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3. Promoting EDP Awareness among SmsII khsiness Management

An important result of the BIFOA research project was the compilatiol~ of a manual which is designed to deal with the practical problems and decisions of smali and medium-sized firms [ 31. It is suitable both fear the practical manager with no experience of EDP as well as for the EDP user who whishes to improve the working and efficiency of the EDP organization (see Fig. 4). The text i:Fin clearly structured sections of one to two pages. Sections are accompanied by assignments with proposed solutions. The possibility of independent acquisition of new subject matter is created by this division into “learning segments”, and the reader (the executive or those involved in paving the way for decisions) is rnotivated to confronting the problem of computer u til.izaGon. The subject matter is specially prepared so that: a) It is focussed on a target group: the special needs of executives from small and medium-sized firms. In this respect it deals primarily with the problems directly confronting the practician: e.g., choice of h,ardware and software, finance, contract negotiations, preparing staff, etc. b) It is decision-oriented. Tirus the executive is shown which steps are necessary in order to find the best solution fior the company with respect to EDP.

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Four component decisions in particular are discussed against a background of the nature of the range of options. First, the executive must decide which method of information processing should be employed (retention of the conventional solution, use of external computer centres, or use of one’s own EDP system). If the decision made favours a company EDP unit, then the second step involves deciding which configurations should be acquired (so called “configuration decision”). Finally, the decision is made for a concrete system from a specific manufacturer (decision concerning “type of system”); in this step, the questions of financing and the choice of software are understood to be closly connected. The decisions with respect to the operation of an in-house system concentrate on the preparatory activities (change-over plans, choice of personnel. and training, and questions of instalIation measures), as well as on the problems connected with actual operation (such as precise conceptions, programming, documentation, and implementation). Altogether, for every problem area before, during, and after the EDP decision, detailed checklists, summaries, and tabulations, recommendations concerning organization and attitude, and assessment and decision screen are prepared as well for supplementary sources of information. These decision aids offer the practitioner short and precise points of orientation for the activities which have to be carried out. There is also a comprehensive index at the end of the text. This index contains all the various specialized terms, decision aids and problem solutions in an easy-to-follow format. Thus the manual constitutes a compendium for reference, which, through this and system-based technical cross-references in the text, provides answers to major questions that arise for the practitioner, 3.2. Training in Seminars

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3.2. I Organization of the Seminars Because it is only possible to achieve efficient training when the study and information material is not of an exclusively individual nature, it is necessary to conduct additional supporting seminars (see Fig. 5). Experience shows that a maximum of one to two days is available for such seminars, due to the limited time that the trainees have at their disposal. The main

H. Weber, E. Tiemeyer / IS Teaching to Smali Business Management

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body of facts must, therefore, be imparted primarily by autodidactic means (so that the time available for seminars can be used, above all, for posing the problem of a range of themes). On the basis of pilot studies, some training, and the results of questionnaires, the following combination is regarded best: -introductory lecture (l/2 day), -autodidactic study of information material (Manual of Computer Utilization (6 weeks)), - concluding lecture (1 day). The main function of the introductory seminar is to create a - appreciation of the problem as well as to remove possible reb;ervations with regard to EDP. The main focus, therefore, will be on showing the capabilities and limits of EDP, giving an introduction to the structure of computers and how they operate, and discussing the problems of decisions that managers must solve in using EDP. The introductory seminar is followed by a phase of self-instruction. During this, the participants acquire knowledge with the help of the information material. The purpose of the concluding seminar is to provide an opportunity to dicuss, reflect on, and apply the subject matter. A self-constructed case-study that deals with the choice of system and software as well as the change-over can be useful for this purpose. The seminar fill be supplemented by specially chosen presentations by manufacturers in order to give the participants an overall view of the

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current systems available in the marketplace. These talks will be supplemented by general summaries of the services of other EDP suppliers-dealing with approaches to planning, reorganization, and introduction of the computer. Thus the goal of a comprehensive training that answers the particular circumstances and requirements of the persons involved is achieved. 3.2.2. Construction of case studies Within the framework of seminars for small and medium business management, the object is to provide the participants with decision methods that aid in the introduction of automatic systems of data processing. It has been found that the use of practiceoriented case studies provides a good opportunity for an intensive mutual exchange of experience, as well as providing the abilities needed for the application of EDP (see Fig. 6). Since suitable case studies did not already exist, they had to be drafted by us. In order to obtain material for the construction of a case study suitable for a broad spectrum of participants, it was deemed useful to devia;e from the original concept in the field of ‘classical’ case studies and to take the experience of several companies as opposed to that of just one. Two case studies, each with a different object, were compiled. The first, developed for introductory purposes, offers the possibility of working out reasons for converting to automatic data processing, possible alternative solutions, the preparatory work necessary, and the questions of finance and acquisition of software.

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Fig. 6. Case Studies for the Choice and Application of HP.

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The second case study, on the tither h Ind. presupposes a certain basic knowledge., and, from tl e point of view of content, consists of two main parts. The first involves deciding on the type of system tchoice of hard- and sofrware), the second is concc rned with indicating possible problems in using the EDP system. Particular pints of focus include: the choice of suitable change-VJiver procedures, questions of external a&& technical preparations for the installation of the system, and various problems of personnel (forming a project tealm, motivation and training of colleagues).

4. Experiences in U&g the Teaching Method On the basis of the elaborated concepts various seminars have been conducted in cooperation with WuWal Lm- “.a Associations and Chambers of Commerce. The analysis of the results aimed at the estimation of the degreeof efficiency. For this purpose additional interviews and inten‘ve discussions with the participants have been set p duting the teaching sessions. Moreover, the participants were encouraged to exchange their experiences and opinions at the beginning of the closing session. However, the analysis of the introduc tory and concluding lecture was primarily based on questionnaires which the participants had to fill in at the end of the respective session. During the exchmge of experiences and in the results of the questionnaires, the participants expressed that the “Handbook of Computer Applications” fulfilled their exp 4Wions in respect to information content, size, practical congrehensivene SS, effectivity and relevance. These five criteria are of particular importanee since they are the reasons for the most participants to reject similar books currently in the market. The puercise part of the manual was considered to be most helpful becau:s it offered the opportunity for revision and self-control. It is presented in an easy to ea and comprehensive form. r as the content of the manual is concerned, topics contmct negotiations, configuration - and ware selection were of special interest to the participants. The increasing level of detail in the chapters af the configuration and the choice of hardware supRs the users in spxifying concrete requirements

for the hardware part of the EDP system. The seminars are designed for managers of small to medium-sized companies, with a small or no knowledge of data processing. It is intended that the participants acquire the basic concepts of data processing through lectures, case studies, presentations by manufacturers, and self-teaching on the basis of the handbook. A further aim of the seminars is to provide a general understanding of the issues involved necessary to a rational decision making on the part of the users. The limited time for education and information available to potential interest groups requires a teaching schema which on the one hand allows a high level of participation and on the other hand the possibilities for an efficient comprehension of the subject. Because of the positive feedback from the participants, the current schema is intended to be maintained for future seminars. A suggestion proposed by the participants was the formation of working groups at certain phases of the seminars to take into account special areas of interest by thoroughly examining related issues. The following criteria for the selection of the participants of the working group have been proposed: -the level of knowledge -the areas of interest. Out of the experience from the seminars, it can be concluded that there is a stro,rg need for comprehensive information, independezrt from manufacturers about the selection and application of EDP. Particularly, companies having realized the potential of EDP and considering on initial application feel the need for a basic knowledge in order to cope with the confusing offers for hardware as well as software. The seminars have shown that the “Handbook of Computer Applications” fulfills this need for better training and thus closes a gap left open by other means of information on data processing.

5. Future Courses The information and training aids developed represent a first systematic effort towards an EDP training course oriented towards small business management, and not linked to the manufacturer. In our opinion, further efforts to improve and extend

H. Weber, E. Tiemeyer 1 IS Teaching to Small Business Management

the existing information and training aids must concentrate on the compilation of additional practiceoriented case studies that specialize in trade or function orientations in addition to a greater use of audiovisual methods (analogous to the development of modem mass media). The area of further EDP training for experienced small and medium management should not be neglected. Although the computer manufacturers and independent institutes offer a great number of training possibilities there is still a tremendous need for neutral information specifically oriented towards the special problems of small and medium-sized firms. What could be useful would be to institutionalise exchanges of experie;rce by and between chambers and associations for executive form ‘user’ companies. When one considers the pressure towards adaptability and flexibility to which small and mediymsized businesses are exposed, it is possible to as%s ,chthe importance of adjusting to operational and t t-I nical standards, as represented by EDP. The contribution made by means of permanent basic and f&her training courses must be viewed in this light) In moving towards automation in the field of %ata processing, small and medium-sized firms adjusti.+g to the needs of the nineteen eighties.

References 11] K.

und Fallmethod:. in: Bleizher: Grtqpenarbeit Entscheilungsfilb .urs der Unternehmungspraxzs. Bd. 1, hrsg. von K. Alzwell, K. Bleicher und D. Ha‘hn, Wiesbaden 1971, S. 31-42. (2) S. Fassbender: Wie lehrt und iemt man Mzuwgement? Ziele und Methoden der Weiterbildung von Ftlhrungskrtiten. Frankfurt a. M. 1973.

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