Rule # 2 – Save Money On Your Computer System – Technology Lifts Limitations

Rule # 2: Good technology investments lift limitations. No limitation lifted equals bad technology investment.
This hasn’t always been obvious to me.
A business is a series of dependent events. A chain, if you will. Prospects go in one end of the business chain; profits come out the other end. If you pull hard enough on a chain, it will break, and it will always break at the weakest link. If you think about it, there can only be one weakest link. This means that there is only one place in any business where limitations choke the business and prevent more profits.
Here’s the way I think about it: suppose a business wants to increase profits. The Sales Manager sends the sales force to training. They come back all trained up and close a bunch of deals. Will the profit of the company increase? Not necessarily.
If manufacturing cannot physically make more product, the sales revenues will not increase in spite of the new orders.
Many businesses use technology in the same way. One part of the business implements a new technology, but this results in local optimization. Only when the weakest link is strengthened will be business grow stronger.
Eliyahu Goldratt says, “Technology can provide business benefit if and only if it removes a limitation.”
If a business invests money in a technology that does not strengthen the weakest link in the business, the money is wasted.