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 -2- 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 -4- 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 -5- 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 -6- • 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 -7- 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 -9- 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 - 10- 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? - 12-