New Technologies, New Technologies, Old Problems Old Problems Historical Amnesia Historical Amnesia and Enterprise Computing and Enterprise Computing 1 1
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 2 2
Broader Research Broader Research Dissertation: “ “Technology, Information & Technology, Information & Dissertation: Power: Administrative Technicians in the Power: Administrative Technicians in the American Corporation, 1917- -2000 2000” ” American Corporation, 1917 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 � 3 3
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 4 4
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Big Project Big Project First full- -length, professional history of corporate length, professional history of corporate First full 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 � 6 6
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 � 7 7
Enterprise Computing in Enterprise Computing in the 1990s the 1990s 8 8
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 � 9 9
The 1990s – – New Technology New Technology The 1990s Large- -scale relational databases scale relational databases Large 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- -Tier model Tier model N � Object Orientation (C++, Java) Object Orientation (C++, Java) � � Distributed Objects, Brokers Distributed Objects, Brokers � The Internet, “ “e e- -business business” ” The Internet, 10 10
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- -1990s business spends on 1990s business spends on By mid computers computers � 3% of GNP 3% of GNP � � 50%+ of capital investment 50%+ of capital investment � 11 11
Rise in GNP Does Not Correlate Rise in GNP Does Not Correlate Period Computer GNP Period Computer GNP Spending Growth Spending Growth (% of GNP) (annual) (% of GNP) (annual) 1960s 0.003 4.5% 1960s 0.003 4.5% 1970s 0.05 2.95% 1970s 0.05 2.95% 1980s 0.3 2.75% 1980s 0.3 2.75% 1990s 3.1 2.2% 1990s 3.1 2.2% 12 12
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 13 13
14 14 At The Firm Level At The Firm Level
New Approach 1: New Approach 1: Business Process Business Process Reengineering Reengineering 15 15
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 organization chart” ” organization 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 16 16
BPR – – Fate Fate BPR 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- -1990s 1990s Backlash grows from mid 17 17
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 � 18 18
The “ “Systems Men Systems Men” ” The 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 � 19 19
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- -consciously modern group consciously modern group Self � 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” ” � 20 20
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, “ “re re- - unlock efficiency, engineering and engineering and replanning the entire replanning the entire system” system ” (1958 presidential address) (1958 presidential address) 21 21
… but limited respect but limited respect … � Write manuals Write manuals � � Improve clerical Improve clerical � procedures procedures � Design forms Design forms � 22 22
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