It is relatively easy to automate the individual elements of a process. It is not easy to automate the entire set of integrated processes and life cycle activities that are utilized in a large, highly competitive, business enterprise.
"Fully integrated system" is a futuristic term. It is a goal that is being pursued by every organization. It is also an elusive goal. The lack of technology is not the issue.
The potential benefits of rapidly evolving computer tools during the 1960's and 70's made information technology easy to sell. Each of the major activities throughout the enterprise had their own automation needs. They could not wait to get started.
There was no enterprise-wide master plan. The needs of the individual activities were too great to wait. Each proceeded to develop and implement their own systems. Justification was easy.
The near-term benefits were perceived to be too great to worry about the longer-term integration. The near-term benefits were less than expected. Total integration was now a bigger challenge.
By the late 1970's, large organizations were developing plans to replace their stand-alone systems with a single, fully integrated system.
Software developers claiming to have fully integrated, off-the-shelf, systems were in high demand.
An integrated system, by definition, includes integrated data bases and provides the ability to enter each data element only one time. Authorized users may access, sort and display those data elements in any combination which suits their needs.
As of the late 1980''s, an extended goal is to make that information available to authorized customers and suppliers outside of the organization as well.
A Parallel Organizational Goal
As organizations strive to integrate and automate their business processes, they are also striving to organize around those value-added processes.
What are the value-added processes? Where are they defined? Who are the owners? How do they interact with each other?
Although "vertical is out and horizontal is in," the organizational chart will remain in limbo until these questions can be answered. Systems integration efforts are paced by these same issues.
Just as an automobile contains multiple, closed-loop systems, a business enterprise contains multiple, closed-loop processes.
There are many interactions between the closed-loop systems in an automobile just as there are many interactions between the closed-loop processes in a business enterprise.
It is relatively easy to tune an automobile to achieve its peak performance because its closed-loop systems and their interactions are clearly understood.
Entrepreneurs such as Henry Ford did not need computers to build self-propelled vehicles that could be operated by thier passengers. Those vehicles contained closed-loop systems.
Modern automobiles contain similar closed-loop systems. Computers have been added to enhance their performance.
Business enterprises must use the same approach. The closed-loop, value-added processes must be defined first. Computers may then be added to enhance their performance.
The Eight Steps Of Development
The first step in the development of a conceptual product is to assure that the needs of the external customer (or end-item application requirements) are clearly understood.
The second step is to establish the high-level requirements (or basis for detailed design) for an end-item which will satisfy those requirements.
The third step is to define the hierarchy of primary items and documents contained in the end-item and identify their owners (creators and users).
The forth step is to define the secondary items and documents needed to support the primary items.
The fifth step is to develop a release schedule for each of the primary and secondary documents.
The sixth step is to release the documents. The seventh step is to produce the items as needed to proof the documents. The eighth step is to resolve any nonconformances.
The approach to business process improvement should be no different than the 8-step approach used to develop a new product.
The steps must be accomplished in sequence. There must be proper closure in each case. The development process is optimized accordingly. CM is also 'se'quence management.
There is a tremendous desire to automate those functions which manage huge amounts of data. There is a tremendous desire to automate the various elements of the CM process accordingly.
The CM process is a value-added process which has multiple interactions with all other business processes. Any effort to automate the CM process, without a master plan, should be avoided. More stand-alone systems is not the answer.
Tremendous resourses have been spent on business process automation. The results, however, continue to lag expectations. There are many reasons.
At first there was no master plan. Once there was a master plan, CM was excluded. Once added, it was not an appropriate version of CM.
Whether developing new products or upgrading your business systems, CMII assures that the hierarchy of requirements are clear, concise and valid, that each step is taken in proper sequence and that each step has proper closure.
Institute of Configuration Management Scottsdale, AZ 85261-5656 Tel: (480) 998-8600 Fax: (480) 998-8923 Email: info@icmhq.com