Can Software Get It Right For Business Owners And Professionals

There are arguably a major cause of the current financial crisis in this country and around the world is that many companies, businesses, and individuals trusted what a computer program said when they should have simply held back.

A recent article in Forbes magazine outlined how software made bad decisions contributing to the current financial crisis. The article states that there are four primary reasons why software has contributed to this problem:

1) Software took over certain tasks without specifying which were key or important. As an example, algorithms would automatically determine online marketing campaigns to use, but they never explicitly identified high-value customers or customers with high profit margins as their target audience.

2) Software was used to make decisions that should have been left to individuals or a small group of experts.

3) Software systems were created with the assumption that human beings could be programmed and then left alone to do things. This assumption is wrong, as humans are much better at seeing patterns, noticing anomalies, and making bad decisions than computers are because humans have emotions and desires.

4) Software is programmed for short-term solutions, instead of long-term gains; therefore software always fails in the near term if it does not receive more funding or a large amount of users, even if those users may eventually feel cheated.

This article goes on to explain that software is getting better in many areas and discusses the current difficulties the financial industry is having with a specific software component. I agree with the article, but feel I must add one additional thought.

A lot of businesses and professionals are not factoring into their decisions whether they will be at fault for lawsuits as a cause of the financial crisis. They are relying on software-generated reports indicating how they are doing, how they should be doing, and what they should be doing to improve their overall performance and profitability. They rely on these reports so much that if these findings indicate problems then they do something about it, no matter how potentially dangerous those actions may be.

This is the same type of problem that happens when doctors rely on diagnostic software to make a diagnosis for a patient without doing additional research or getting a second opinion. The doctor relies so much on these diagnostic reports, which are primarily based on specific symptoms and how well the patient responds to certain test, that they do not think about what if something goes wrong or what if it isn't correct. They simply go with the flow and hope those diagnostic reports produce good results.

Businesses must realize they are responsible for their own performance and profitability. They should not rely on software to generate their reports or other information. They should take the time to analyze the data, determine whether it is accurate, and consider its impact on their overall strategic plan.

Software should not be used as a crutch or a substitute for proper training, education, and expertise because these programs can be wrong. All companies and professionals have an obligation to understand what they are doing and how they are doing it in order to protect themselves against those who may sue them or try to harm them.

The article also mentions that software could have been based on human decision-making if the developers had taken human emotions into account when they constructed the program. The problem with that idea is that humans have so many emotions and desires, not to mention the fact that they have good days and bad days. Humans tend to have certain habits, which they do not always remember when they are stressed or upset. There is no such thing as a human being who can never make a mistake or an error in judgment when data is incorrect.

For a company or professional to truly protect themselves, then these companies and professionals must take ownership for their own decisions and actions. They must use software as an advisor rather than a crutch, but do not let the software replace their common sense and critical thinking skills.

There are a lot of good reasons for using software to replace human decision-making for certain tasks, but business owners and professionals must realize that each decision they make will be their own responsibility. They must take the time to analyze how the software made its decisions or recommendations, not just blindly assume the program is correct. They must understand that computers are not humans and never will be, so they have to factor in human emotions and desires when they decide how to use a computer program.

Business owners and professionals cannot build their companies on the foundations of software – these leaders have to do proper research, consult experts, and above all else use sound judgment when it comes down to making critical decisions. If they do not, then they are not only putting their company at risk, but one day they may also find themselves being sued because of the decisions a computer program made, or thinking they are getting rich when in fact they are headed for financial ruin.

Michael R. Goodman is the founder of Montgomery-Goodman and Associates, an innovative law practice which concentrates in intellectual property law and the protection of individual rights. He can be reached at (800) 928-2565 or www.mgiportfolio.com

Conclusion

Beware of computer programs and software! Computers are only as good as the programmers that make them, so they can be wrong. The best way to protect yourself is to use software as a tool but not rely on it to make critical decisions and recommendations. If you do use software, then you must take the time to analyze the program's data and results in order to be sure your overall strategy and business model are valid.

Speaking of legal issues, it is important for business owners or professionals to seek legal counsel when confronted with a potential problem or legal dispute.

Can Software Get It Right For Business Owners And Professionals

Can Software Get It Right For Business Owners And Professionals

Post a Comment

Contact Form