New Technologies, New Technologies, Old Problems Old Problems - - PowerPoint PPT Presentation

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New Technologies, New Technologies, Old Problems Old Problems

Historical Amnesia Historical Amnesia and Enterprise Computing and Enterprise Computing

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Structure of the Talk Structure of the Talk

General Introduction General Introduction

• My Research

My Research

• Information Systems in the 1990s

Information Systems in the 1990s

1: Business Process Reengineering 1: Business Process Reengineering 2: Enterprise Resources Planning 2: Enterprise Resources Planning 3: The Data Warehouse 3: The Data Warehouse Conclusions Conclusions

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Broader Research Broader Research

Dissertation: Dissertation: “ “Technology, Information & Technology, Information & Power: Administrative Technicians in the Power: Administrative Technicians in the American Corporation, 1917 American Corporation, 1917-

• 2000

2000” ” Multiple publications, presentations Multiple publications, presentations First presentation of final chapter First presentation of final chapter

• Major trends in 1990s

Major trends in 1990s

• Stresses continuity

Stresses continuity

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Managerial Technicians Managerial Technicians

Claim technical authority over some Claim technical authority over some managerial activities. managerial activities. Construction of new kinds of expertise Construction of new kinds of expertise Seek group mobility Seek group mobility Identities tied to construction, elevation of Identities tied to construction, elevation of corporate departments corporate departments Conflation of managerial and professional Conflation of managerial and professional ambitions ambitions

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Big Project Big Project

First full First full-

• length, professional history of corporate

length, professional history of corporate IT usage IT usage Three Strands Three Strands

• Organizational & Institutional

Organizational & Institutional

• Identity & Professionalism

Identity & Professionalism

• Technology & Practice

Technology & Practice

Goes back before the computer Goes back before the computer

• “

“Systems Systems” ” work work

• Office management

Office management

• Punched card machines

Punched card machines

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Methodology Methodology

Narrative Narrative

• Charts, tables, figures for support

Charts, tables, figures for support

Mixture of sources Mixture of sources

• Journals, magazines, conference proceedings

Journals, magazines, conference proceedings

• Archival holdings (producers, users,

Archival holdings (producers, users, associations) associations)

• Contemporary surveys

Contemporary surveys

• Memoirs, Interviews

Memoirs, Interviews

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Enterprise Computing in Enterprise Computing in the 1990s the 1990s

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Enterprise Computing Enterprise Computing

Large scale, corporate systems. Mainframes plus Large scale, corporate systems. Mainframes plus

• Network backbones

Network backbones

• Inter

Inter-

• departmental applications

departmental applications

• Technical standards

Technical standards

• Centralized databases

Centralized databases

• Intranet

Intranet

Used to be the only kind (almost) Used to be the only kind (almost) Striking continuity over decades in issues Striking continuity over decades in issues

• Practical

Practical

• Technological

Technological

• Professional

Professional

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The 1990s The 1990s – – New Technology New Technology

Large Large-

• scale relational databases

scale relational databases Incorporation of PC into enterprise systems Incorporation of PC into enterprise systems

• Graphical User Interface

Graphical User Interface

• Client

Client-

• server technologies

server technologies

• RAD (Rapid Application Development)

RAD (Rapid Application Development)

N N-

• Tier model

Tier model

• Object Orientation (C++, Java)

Object Orientation (C++, Java)

• Distributed Objects, Brokers

Distributed Objects, Brokers

The Internet, The Internet, “ “e e-

• business

business” ”

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The Productivity Paradox The Productivity Paradox

“ “You see the computer everywhere but You see the computer everywhere but in the productivity figures in the productivity figures” ”

• Robert Solow

Robert Solow – – MIT Economist MIT Economist

By mid By mid-

• 1990s business spends on

1990s business spends on computers computers

• 3% of GNP

3% of GNP

• 50%+ of capital investment

50%+ of capital investment

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Rise in GNP Does Not Correlate Rise in GNP Does Not Correlate

Period Period Computer Computer Spending Spending (% of GNP) (% of GNP) GNP GNP Growth Growth (annual) (annual) 1960s 1960s 0.003 0.003 4.5% 4.5% 1970s 1970s 0.05 0.05 2.95% 2.95% 1980s 1980s 0.3 0.3 2.75% 2.75% 1990s 1990s 3.1 3.1 2.2% 2.2%

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White Collar Productivity White Collar Productivity

How much economic output you get per How much economic output you get per unit of input unit of input

• Gives sustainable, non

Gives sustainable, non-

• inflationary growth

inflationary growth

Computer is supposed to make clerical Computer is supposed to make clerical and processional workers more efficient and processional workers more efficient Overall labor productivity grew 1.1% p/a Overall labor productivity grew 1.1% p/a 1973 to 1997 1973 to 1997

• Most of GNP rise is from working harder

Most of GNP rise is from working harder

• Real median wages fell from mid

Real median wages fell from mid-

• 70s to mid

70s to mid-

• 90s

90s

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At The Firm Level At The Firm Level

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New Approach 1: New Approach 1: Business Process Business Process Reengineering Reengineering

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A Business Revolution A Business Revolution

Former CS professor Former CS professor Rhetoric of revolution Rhetoric of revolution

“ “Take a machine gun Take a machine gun and an axe to the and an axe to the

• rganization chart
• rganization chart”

” “ “Shoot the dissenters Shoot the dissenters” ”

Insists new idea Insists new idea

• Old ways were good

Old ways were good before before

• New technology

New technology means new approach means new approach

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BPR BPR – – Fate Fate

Ushers in great consulting boom Ushers in great consulting boom

• Also attractive to internal IT leaders

Also attractive to internal IT leaders

Term applied quite indiscriminately Term applied quite indiscriminately

• Often used to justify any layoffs

Often used to justify any layoffs

• “

“Chainsaw Chainsaw” ” Al Dunlap, etc. Al Dunlap, etc.

Backlash grows from mid Backlash grows from mid-

• 1990s

1990s

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How New Was It? How New Was It?

Some obvious antecedents Some obvious antecedents

• Industrial Engineering (Davenport)

Industrial Engineering (Davenport)

• Taylorism/Scientific Management

Taylorism/Scientific Management

Closest antecedents Closest antecedents

• Systems and Procedures Movement

Systems and Procedures Movement

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The The “ “Systems Men Systems Men” ”

Systems and Procedures Association Systems and Procedures Association

• Chartered 1947 (informally 1944)

Chartered 1947 (informally 1944)

• Spread very rapidly in early 1950s

Spread very rapidly in early 1950s

Managerial Technicians Managerial Technicians

• Corporate

Corporate

• Staff role

Staff role – – advisory, not supervisory advisory, not supervisory

• Aspire to true managerial power

Aspire to true managerial power

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Who Were The Systems Men? Who Were The Systems Men?

World War II was genesis of movement World War II was genesis of movement

• Administrative innovation for wartime production

Administrative innovation for wartime production

• Seek to apply rational, scientific, systems approach

Seek to apply rational, scientific, systems approach

Thrive with shift to multidivisional organization Thrive with shift to multidivisional organization Self Self-

• consciously modern group

consciously modern group

• Mostly originating in accounting departments

Mostly originating in accounting departments

• Parallel with, but separate from, industrial

Parallel with, but separate from, industrial engineering engineering

• Even lay claim to being

Even lay claim to being “ “information engineers information engineers” ”

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Great dreams Great dreams… …

Management Generalist Management Generalist

• Technocratic mandate

Technocratic mandate from top executive from top executive

• Audit departmental

Audit departmental effectiveness effectiveness

• Reorganize

Reorganize departmental structure to departmental structure to unlock efficiency, unlock efficiency, “ “re re-

• engineering and

engineering and replanning the entire replanning the entire system system” ”

(1958 presidential address) (1958 presidential address)

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… … but limited respect but limited respect

• Write manuals

Write manuals

• Improve clerical

Improve clerical procedures procedures

• Design forms

Design forms

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“ “Generalist Generalist” ” Experts Experts

Try to build a profession around toolkit Try to build a profession around toolkit

• Form Design; Report Design

Form Design; Report Design

• Procedures Manual; Workflow study

Procedures Manual; Workflow study

• Punched card methods, etc.

Punched card methods, etc.

Generalist case hard to make Generalist case hard to make

• Claim management methods as technical

Claim management methods as technical expertise expertise

• Executives respect technologies, specialists

Executives respect technologies, specialists more than managerial generalists more than managerial generalists

Increasingly tied to computer Increasingly tied to computer

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Systems vs. BRP Systems vs. BRP

Technocratic Mandate Technocratic Mandate

• Who is the

Who is the “ “engineer engineer” ”

• What are they an expert it?

What are they an expert it?

Role of Consulting Firms Role of Consulting Firms

• How to square with authority of managers?

How to square with authority of managers?

Appeal to Computing Departments Appeal to Computing Departments

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New Approach II: New Approach II: Enterprise Resources Enterprise Resources Planning Planning

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ERP ERP

Enterprise Resources Planning Enterprise Resources Planning

• Not very meaningful term

Not very meaningful term

Packaged enterprise suite Packaged enterprise suite

• SAP/R3 is best known

SAP/R3 is best known

Modules for different functions Modules for different functions

• Finance

Finance

• Logistics

Logistics

• Personnel

Personnel

• Order processing

Order processing

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ERP ERP – – Benefits Benefits

Operational efficiencies Operational efficiencies

• Software is pre

Software is pre-

• integrated

integrated

Less work on ad Less work on ad-

• hoc fixes

hoc fixes Better information flow Better information flow Improved managerial control Improved managerial control Reduced support burden Reduced support burden

• Spread maintenance costs

Spread maintenance costs

• Skills more available

Skills more available

Proven methodologies, technologies Proven methodologies, technologies

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ERP in Practice ERP in Practice

Forces difficult standardization Forces difficult standardization

• Between divisions

Between divisions

• To fit constraints of package

To fit constraints of package

Slow, expensive process Slow, expensive process

• Average of two years

Average of two years

• Cira

Cira $50,000 per seat! $50,000 per seat!

• Huge boom for consultants

Huge boom for consultants

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How New is ERP? How New is ERP?

Main ideas: Main ideas:

• Total integration of administrative processes

Total integration of administrative processes is possible on operational basis is possible on operational basis

• Packaged software is the best basis for this

Packaged software is the best basis for this system system

• Business processes, jobs, must be altered to

Business processes, jobs, must be altered to exploit technology exploit technology

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The Computer Enters The Computer Enters Business Business

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Claims for Computer, 1953 Claims for Computer, 1953

“ “We can set our course towards push We can set our course towards push-

• button

button administration, and God willing we can get administration, and God willing we can get there there… …The ominous rumble you sense is The ominous rumble you sense is the future coming at us. the future coming at us. … …the potential effect of electronics is of the potential effect of electronics is of the order of that wrought by moveable the order of that wrought by moveable

• type. The changes ahead appear to be
• type. The changes ahead appear to be

similar in character but far beyond those similar in character but far beyond those effected by printing. effected by printing.” ”

Worthington, W. B. "Application of Electronics to Administrative Worthington, W. B. "Application of Electronics to Administrative Systems." Systems." Systems and Systems and Procedures Quarterly Procedures Quarterly 4, no. 1 (1953): 8 4, no. 1 (1953): 8-

• 14.

14.

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Information Technology Information Technology

1958 1958 – – Harvard Business Harvard Business Review Review – – “ “Management Management in the 1980s in the 1980s” ”. .

• First use of phrase

First use of phrase “ “Information Technology Information Technology” ” for computers. for computers.

• Extremely influential

Extremely influential

Business school Business school professors and professors and computers as new computers as new managerial elite managerial elite

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Total Systems Total Systems

“ “Totally Integrated Management Totally Integrated Management Information System Information System” ” From 1962 to 1970 From 1962 to 1970 – – dominant idea for dominant idea for correct role of the computer in correct role of the computer in management management

• All information, instantly, all managers,

All information, instantly, all managers, whole firm whole firm

• System include models, forecasts,

System include models, forecasts, projections projections

• Used directly by top executives

Used directly by top executives

• Real

Real-

• Time, On

Time, On-

• Line

Line

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This Will Realize Potential of computer This Will Realize Potential of computer… …

Harvard Business Review Harvard Business Review -

• 1964

1964

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Univac Advertisement, Business Week 1965 Univac Advertisement, Business Week 1965

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An Information Utopia (1968) An Information Utopia (1968)

a more relaxed, leisurely management environment. The uneasiness will be replaced by a feeling of confidence in the completeness and timeliness of information and in the decisions based on that information… .

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Problems of Total Systems Problems of Total Systems

Impossible to build at the time Impossible to build at the time Rigidity imposed by computerized system Rigidity imposed by computerized system Managers can Managers can’ ’t define t define “ “information needs information needs” ”

• Most executive information is not a by

Most executive information is not a by-

• product of

product of routine transactions routine transactions

Expense of real Expense of real-

• time operation hard to justify

time operation hard to justify No rush to reorganize corporation No rush to reorganize corporation

• If responsibilities remain within functional bounds, so

If responsibilities remain within functional bounds, so can information can information

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The Fate of MIS/Total Systems The Fate of MIS/Total Systems

MIS redefined by MIS redefined by 1970s 1970s

• “

“total total” ” part downplayed part downplayed

Backlash grows in Backlash grows in elite management elite management press press

• MIS remains term for

MIS remains term for computer study in computer study in business schools business schools

• New name for

New name for computer department computer department

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Parallels with ERP Parallels with ERP

Alike Alike

• Integration of operational, administrative

Integration of operational, administrative systems systems

• Vendors, consultants sell to top management

Vendors, consultants sell to top management

• Firms rush into whether need or not

Firms rush into whether need or not

• Expected benefits hard to realize

Expected benefits hard to realize

Different Different

• ERP is technologically possible

ERP is technologically possible

• ERP relies on packaged software

ERP relies on packaged software

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New Idea 3: The Data New Idea 3: The Data Warehouse Warehouse

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The Information Pyramid (1967) The Information Pyramid (1967)

“ “Information Information” ” ties together ties together all levels of all levels of management management & operations & operations Bottom level Bottom level

• f the
• f the

pyramid is pyramid is the the “ “data data base base” ”

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Hopes for MIS reborn with DB Hopes for MIS reborn with DB

“ “Writings on MIS have waned recently and Writings on MIS have waned recently and have largely been replaced by writings on have largely been replaced by writings on the Data Base the Data Base” ” (1973) (1973) The The “ “Data Base Administrator Data Base Administrator” ”

• Originally expected to take responsibility for

Originally expected to take responsibility for “ “data as a resource data as a resource… … much broader than much broader than machine readable data machine readable data” ” (1974) (1974)

• “

“something of a superstar something of a superstar” ” (1975) (1975)

DBMS technology expected to build DBMS technology expected to build integrated, company wide DB integrated, company wide DB

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Data Base Management Data Base Management System System

New concept in early 1970s New concept in early 1970s DBMS as software layer between data, DBMS as software layer between data, users users

• Different interfaces, languages for

Different interfaces, languages for

Programs & programmers Programs & programmers Ad Ad-

• hoc managerial reporting

hoc managerial reporting Data definition Data definition maintenance and administration maintenance and administration

Hopes for managerial use Hopes for managerial use

• Respond instantly to arbitrary query

Respond instantly to arbitrary query

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DBMS usages in the 1970s DBMS usages in the 1970s

Advantages mostly for programmers Advantages mostly for programmers

• easier reporting,

easier reporting,

• Program/data independence

Program/data independence

• faster application development,

faster application development,

• easier maintenance

easier maintenance

• better integration of different applications

better integration of different applications

Integration proves harder than expected Integration proves harder than expected Help with conversion to disk and Help with conversion to disk and multitasking operating system multitasking operating system

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Not One Big Database Not One Big Database

Big central database doesn Big central database doesn’ ’t work t work Finish up with dozens/hundreds of little data Finish up with dozens/hundreds of little data bases bases

• Physically separate

Physically separate

• All incomplete

All incomplete

• Different data formats

Different data formats

• Different concepts of data

Different concepts of data

Dominant model is Dominant model is “ “relational relational” ” ( (eg eg Oracle) Oracle)

• Good for updating

Good for updating

• Flexible

Flexible

• Can be slow & complex to extract data for reports

Can be slow & complex to extract data for reports

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Data Warehouse Concept Data Warehouse Concept

Emerges early 1990s Emerges early 1990s One big DB for everything has failed, so One big DB for everything has failed, so

• Leave

Leave “ “transactional transactional” ” systems spread out (physically, systems spread out (physically,

• rganizationally), BUT
• rganizationally), BUT
• Make a second, read

Make a second, read-

• only copy of everything in a
• nly copy of everything in a

centralized centralized “ “data warehouse data warehouse” ”. Update regularly. . Update regularly.

Lots of work for consultants Lots of work for consultants

• Copying,

Copying, “ “cleaning cleaning” ”, reformatting data , reformatting data

• Restructuring data around business areas and for

Restructuring data around business areas and for easy querying easy querying

• Providing query tools for managerial users

Providing query tools for managerial users

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From Recent DB Textbook From Recent DB Textbook

Management Hierarchy Top (strategic) Middle (tactical) Lower (operational) Individual operational databases Summarized, integrated

• perational databases

External data sources and summarized, tactical databases Operational databases

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Data Warehouse Data Warehouse --

• - Practice

Practice

Many systems limited in scope Many systems limited in scope Enormous on Enormous on-

• going costs

going costs

• Import routines must be maintained

Import routines must be maintained

Managers often fail to use Managers often fail to use

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4: Other New Ideas 4: Other New Ideas

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CRM CRM

Customer Relationship Management Customer Relationship Management

• Aim:

Aim: “ “help companies keep track of their help companies keep track of their customers and boost revenues by increasing customers and boost revenues by increasing customer loyalty customer loyalty” ”

• Customer database integration

Customer database integration

• Sales/service force automation

Sales/service force automation

• Data mining tools

Data mining tools

Vendors promote packaged systems Vendors promote packaged systems

• Siebel Systems pioneered

Siebel Systems pioneered

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Backlash Came Quickly Backlash Came Quickly

“ “most Fortune 500 companies are involved most Fortune 500 companies are involved in some sort of CRM project, experts say, in some sort of CRM project, experts say, and many multimillion dollar initiatives and many multimillion dollar initiatives have quietly stalled or failed as executives have quietly stalled or failed as executives search for business benefits and search for business benefits and salespeople shy away from technology salespeople shy away from technology they say won't help them. they say won't help them.” ” Patton, Susannah. "The Truth About CRM." Patton, Susannah. "The Truth About CRM." CIO Magazine CIO Magazine, May 1 2001. , May 1 2001.

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Knowledge Management Knowledge Management

Movement launched in mid Movement launched in mid-

• 1990s

1990s

• “

“Knowledge Knowledge” ” as more general, free as more general, free-

• form than

form than “ “information information” ”

• Shift focus from technology to people

Shift focus from technology to people

• Ties to information science

Ties to information science

Term gets applied to a lot of software Term gets applied to a lot of software

• Early attempts center on

Early attempts center on “ “knowledge knowledge repository repository” ”

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Knowledge Management Knowledge Management

“ “KM has fallen victim to a mixture of bad KM has fallen victim to a mixture of bad implementation practices and software implementation practices and software vendors eager to turn a complex process vendors eager to turn a complex process into a pure technology play. The result: into a pure technology play. The result: Like many a business concept, KM has Like many a business concept, KM has evolved from a hot buzzword to a phrase evolved from a hot buzzword to a phrase that now evokes more skepticism than that now evokes more skepticism than enthusiasm. enthusiasm.” ”

Berkan Berkan, Erick. "When Bad Things Happen To Good Ideas." , Erick. "When Bad Things Happen To Good Ideas." Darwin Magazine Darwin Magazine, , April 2001. April 2001.

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Real Time Enterprise Real Time Enterprise

“ “In the real time corporation In the real time corporation… … information information becomes more current becomes more current… … because you are because you are eliminating steps of inefficiency. Because eliminating steps of inefficiency. Because information comes in real time, senior information comes in real time, senior people get to make more decisions. people get to make more decisions.” ” Vinod Kholsa, venture capitalist and Sun Vinod Kholsa, venture capitalist and Sun Microsystems co Microsystems co-

• founder, 2002.

founder, 2002.

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Conclusions Conclusions

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Lessons Lessons

Role of fads cannot be ignored Role of fads cannot be ignored

• Premium on apparent novelty

Premium on apparent novelty

• Disillusion with one idea lays ground of next

Disillusion with one idea lays ground of next

History matters History matters Technology cannot solve organizational Technology cannot solve organizational problems problems

• Yet technology is so much easier to sell

Yet technology is so much easier to sell

• Technical expertise so much easier to define

Technical expertise so much easier to define

• Standard solution may not be good fit

Standard solution may not be good fit

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Difficulty in Combining Technical Difficulty in Combining Technical and Managerial Expertise and Managerial Expertise

Rapid pace of technological change Rapid pace of technological change

• Always expected to slow down.

Always expected to slow down.

• Can

Can’ ’t wait for it to go away. t wait for it to go away.

• Can

Can’ ’t t “ “educate educate” ” managers managers

“ “Alignment Alignment” ” is much harder said than done is much harder said than done How to manage technology without How to manage technology without understanding it? understanding it?

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Integration Integration – – An End in Itself? An End in Itself?

2001 survey (Cutter Consortium) 2001 survey (Cutter Consortium)

• Integration of legacy systems & e

Integration of legacy systems & e-

• business as

business as #1 issue #1 issue

• “

“much of our industry suffers from the much of our industry suffers from the delusion that total integration is achievable. delusion that total integration is achievable.” ”

• “

“the vision is a chimera, a false goal that the vision is a chimera, a false goal that encourages, at best, frustration over dashed encourages, at best, frustration over dashed hopes and, at worst, misallocation of IT hopes and, at worst, misallocation of IT resources. resources.” ”

Pickering, Chris. Pickering, Chris. E E-

• Comment: The Integration Chimera

Comment: The Integration Chimera internet.com internet.com, July , July 18 2001 18 2001

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Visit My Website Visit My Website

www.tomandmaria.com/tom www.tomandmaria.com/tom Papers (4 published, one forthcoming, one Papers (4 published, one forthcoming, one draft), including draft), including “ “Inventing Information Inventing Information Systems Systems” ” Information on research project Information on research project Syllabi & resources from 4 distinct courses Syllabi & resources from 4 distinct courses Computer history resource guide Computer history resource guide