IRM as a basis for' long range planning
and systems coordination
Fredrik Runnquist, Manager Administration Development
Philips E1ettronikindustricr AD
S-175 88 JARFALLA
SWEDEN Telephone: 0758-22008
( Orjan Grape, consultant
SAGUS AD
Dolinders Plan 2
S-112 24 STOCKHOLM
SWEDEN Telephone: 08-132985
(
Purpose: The intention is to describe an approach used at Philips
Elektronikindustrier to combine the IRM-study with long
range planning of Administration Development
Summary: Presentation and discussion of methods for systems coordination
and planning of AD, based on an information- and system-
structure study carried out in 1986. This study has been the
( basis for long range planning and development of databases
and applications.
Contents: 1. Information and system structure study
- background
- methodology
- implementation
- results
2 Administration Development Plan
3. Project initialization and planning
4. Findings
Philips Eleklronlkfndustrler AB
Fredrlk nunnqulSI. Orion Grope Information and system structure study
[ B_A_C_K_G_R_O_U_N_D ~J
* REQUIREMENTS FOR FLEXIBILITY
- knowledge of business objects and their relations (
- knowledge of external factors and effects
- flexible information systems
- models and support for simulating and prognoses
* IRREGULAR AND BADLY COORDINATED
ADMINISTRATION DEVELOPMENT
* TASK DISTRIBUTION AND SYSTEMS INTERFACE
PROBLEMS
* INFORMATION AND SYSTEMS STRUCTURE
- lack of common concepts
- bad system structure ("bridges", "islands" etc)
- redundancy in information storage and processing
- difficulties to find stored info and to determine
quality of information as well as responsible persons.
-1-
Philip s Eleklronlkrnduslrler J\B
Fredrlk "unnquISl. O'lan'Grape Information and system structure study
" [~__M_ET_H_O_D_O_LO_G_y_ _~J
Flexibility
Confusion of concepts Responsibility for dltl ?
System dill dictionary? no.... f' f . ~
• 0-1 bl ,........ty 0 In ormlhon <
LOU:U Ire pro ems
'. Whit kind of systems do we need to denio?
ENTERPRISE MODELLING
c )
( I
DECOMPOSITION DIAGRAMS
Business objects as subject areas, functions,
goal, critical success factors, organization,
data processing applications etc.
ENTITY - RELATIONSHIP MODELS
An overwiew map of the data needed to
run the enterprise
DATA FLOW DIAGRAMS
Data flow between subject areas, functions
1"-. I11111 111111111111111n INFORMATION PROCESSING MATRICES
Matrices showing relations between data and
business functions, data processing appl. etc.
ANA YSIS Analysis of information and system structure,
DP applications etc.
INFORMATION AND SYSTEM ARCHITECTURE
Description of changes and recommendations for
measures needed for each system area
Systems-
I - future data processing (appl. and databases)
administration ~rechnical enVimnme~t (hardware. communic.)
Projects concerning
•
"urgent" interface : System design ::
problems : principles and .:i
Basis for ;: rules ,.
Systems AD - planning
coordination
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Philips Eleklronlklnduslrler AD
Fre.rlk Runnqul't. OrJan Grape Information and system structure study
IMPLEMENTATION J
~~ DATA flOW DIAGRAMS
INFORMATION
PROCESSING MATRICES
ANALYSIS OP (
THE ENTERPRI'SE
• BASED UPON THE PRINCIPLES OF IRM, ie
THE INFORMATION IS REGARDED AS A
COMMON AND ESSENTIAL RESOURCE IN
THE BUSINESS ACTIVITY.
• A DATA- DRIVEN DEVELOPMENT PLAN
DERIVES FROM 2 PRINCIPLES:
- START ON A STABLE PLATFORM
- THE INFORMATION REQUIREMENTS,
PROCEDURES AND THE ORGANIZATION
STRUCTURES CHANGE MORE OFTEN
THAN THE DATA STRUCTURES OF THE
THE ENTERPRISE
-3-
Philips Eleklronlklnduslrlcr AB
Fre.rl' "unnqul,'. Orlan Grape Information and system structure study
[~.__I_M_P_l_E_M_E_N_T_A_T_lo_ _~J
* THIS WAS REAUZED AS A SEPARATE PROJECT
DURI G 5 MONTHS
Steeringgroup: AD - policyboard
Project group: 2 pers.
(
Reference group: 1·1 persons, top and middle
management
Representong alU bus9lflless areas and with
a good! knowledge of current business
Working sessions completed and
backed - up a t hornell llI
(
* FOCUS! G ON I!IPIFU ARY· AREAS SUCH AS
MARKETING/S l.U G, DEVELOPMENT,
PRODUCT~O , D~STR~BUTION,CUSTOMER
l SUPPORT AND THEN MANAGEMENT AND
FINANCE
* ENTERPRISE MODELS (OWERVIEW)
* USING DRAWING -TOOL AND SINCE
1987 CASE-TOOL
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Philips Eleklronlklnduslrler AD
. Fredrl> Runnqul,t. O~on Grope Infonnation and system structure study
[~ R_E_S_U_L_T_S ~J
~~Gr.J~ INFORMATION AND
~~g SYSTEM ARCHITECTURE
SySlems-
Ildmlnlslrallon
ProjeCIS concerning (
- urgenl- Interlace
problems
jj
:-:.:.:.:.:.:.:.:.:.: ... : ... :.: ....
* INCREASED KNOWLEDGE ABOUT BUSINESS
OBJECTS AND THEIR RELATIONS
* CASE-TOOL USED FOR DOCUMENTATION
* BASIS FOR URGE T ACTIONS
Oasis tor
AD - planning
* SYSTE AREAS IN EED OF NEW OR
CHANGED DATA PROCESSING
- PROJECT MANAGE E T
- MARKETING/SELLING AD INISTRATION
- TECHNICAL AD INISTRATION
- RESULT CONTROL
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Philips Eleklronlklnduslrler An
Fre"'1< nunnqulst, Orion Grope Information and system structure study
l_' R_E_S_U_L_T_s ~J
Systems
coordination
(
( * A FUNCTION FOR SYSTEMS COORDINATION
- INFOR ATION AND SYSTEMS DICTIONARY,
DESCRIPTiONS OF BUSINESS ACTIVIT!ES
- -REFEREE- FOR SOLVING DIFFERENT
OPINIONS ABOUT INTERFACES BETWEEN
THE PROJECTS AND THE SYSTEMS
(
- ACCOMPLISH ANALYSIS IN ORDER TO
ACHIEVE MORE EFFECTIVE SYSTEMS
INTEGRATION AND COORDINATION
- NEW SYSTEMS DEVELOPMENT MODEL
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•
Philips E Ie t<.lronlklndustrler AU
Fredrlk RUnnqulSt. Or)on Grope Infonnation and system structure study
[~ R_E_S_U_L_T_S ~J
".::,:,:,::",::""::,;,:::,::",,:::,"::,:::::,,,.,:::'::::::
:i: Systems design!:
::! principles and!
::' r u l e s : :
~~! ~!!
..
".:::::::::::::;:::::::::::::::::::::::::;:::::::::::::::::: "
. * SYSTEMS DESIGN PRINCIPLES AND RULES
- DATA-DRIVEN DEVELOPMENT
- DEVELOPING AND CONSIDERING THE
COMPLETE SYSTEM (data processing,
personnel, organization and routines)
- DEVELOPMENT AND LIFE CYCLE
TERMINATION FUNCTION BY FUNCTION
AND STEP BY STEP
- EFFECTIVE AND HIGH QUALITY DEVElOP-
MENT, WITH PROTOTYPING AND QUAUTY
CONTROL AIMED AT -DOING THE RIGHT
THING FROM THE START-
- APPLICATION DEVELOPMENT PRINCIPLES:
* 0 l Y 1 TERMINAL OR PC AT EACH DESK
* APPOINT FUNCTION RESPONSIBLE FOR
DATA
* ACQUIRE DATA ONLY ONCE AND AS
CLOSE TO SOURCE AS POSSIBLE
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Philips Eleklronlklnduslrlcr AS
Fredrlk.. nunnquisi. Orlan Grape AD-PLAN
COMPANY GOALS
GENERAL: PROFITABILITY
GROWTH VOLUME
(
PRODUCT - LIFE - CYCLES
(
ADMINISTRATIVE: lEAD - TIME
EFFICIENCY
ORGANIZATIONAL
STRUCTURES
(
I
-8-
Philips Elektronlklndustrlcr AD
Fredrlk nunnquisi. OrJan Grape AD-PLAN
( APPLICATION AREAS)
DIVISION
A B
* SYSTEM STRUCTURE - ++
* MARKET ADMINISTRATION + ++ (
* PROJECT MANAGEMENT ++ +
* PRODUCT MANAGEMENT ++
* MPS - ++
* LOGISTICS - -
* ECONOMY + ++
* PERSONNEL - -
* OFFICE AUTOMATION ++ ++
* INTEGRATION OF TECNICAl
AND ADMINISTRATION DP + ++
+ +: Priority
+ : Priority partly
..:. : No priority
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Phlllp5 Eleklronlklnduslrler AS
Fredrl k nunnqulsi. Orlan Grope Project initialization and planning
[_
•. P_R_O_C_E_D_U_R_E_ _ ~J
INFORMATION
COMPANY AND SYSTEMS
GOALS STRUCTURE
STUDY
(
T
AD POLICY PRIORITIES
( BOARD. PER .. ~ E
CEO APPLIC. AREA
C
PRIORITY PRIORITY NO
H
PARTLY PRIORITY
++ + N
I
I o
~ I L
( )
PROJECT ~
SPECIFICATION
.. Goals
o
( AD " Borderlines
DEPARTEMEN .. Organization G
GOALS ADPOLICY
.. Markets BOARD. y
.. Products CEO
.. Economy
.. Quality
.. Personnel
PROJECTS
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Philips Eleklronlklnduslrler AD
fredrlk Runngulsl, Orlan Grape
[~ F_IN_D_I_N_G_S_ _ ~)
1. APPROACES THAT TURNED OUT
TO BE SUCCESSFUL
I
I
""
/ ""
- ACTIVE AD-DEPARTEMENT ROLE
- BOTTOM UP AND TOP DOWN
- PAY-OFF CALCULATION AS AN ACTIVE TOOL
- 11 -
PhilIps E:leklronlklnduslrler AS
Frlldrlk Jlunnqulsl, Orlan Grope
[~ F_IN_D_I_N_G_S_ _ ~)
( 2. RESULTS
- CONTINOUS PLANNING IN THE BUDGET
(
PROCESS ACCOMPLISHED
- FLEXIBILITY ACHIEVED
- DETAIL DISCUSSIONS VANISHED
( 3. FUTURE?
\ - KEEP IT SIMPLE
- IS SYSTEMS COORDINATION
NECESSARY?
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