- Email: [email protected]
Omron's creative information system
Omron's Creative Information System Kiyohiko Watanabe and Yukichi Arao
Omron Corporation and its Information Systems Omron Corporation was established in May 1933. Its annual revenue for the fiscal year 1993 was ¥ 370 billion. As of March 1994 it employed 7900 staff and the total number of employees of the Omron Group, including its subsidiaries and affiliated companies was 21,500. The company's products are listed in Figure 1. The history of information systems development at Omron Corporation follows the expansion of on-line networks and is divided into four periods (see Figure 2): Cl Froth 1970 to 1980, basic batch systems were installed. Q During 1981 to 1984 the mainframe on-line applications were introduced. Large-scale on-line applications such as production control systems including CAD, and financial, sales, and product information and control systems, were established in this period. Cl During 1985 to 1987, computer networks, both internal and external, were developed and the external networks connected Omron headquarters to its subsidiaries, affiliated companies and vendors. In developing the dealer network, the company became one of the first companies which utilized VAN services. Cl Since 1988, the Innovative Information System (IIS) and the Strategic Information System (SIS) have been installed. Pergamon
0024-6301(94)00087-5
• The IIS has helped managers to use and share information through state-of-the-art IT. Initially it helped to improve managers' comLong Range Planning, Vol. 28, No. 2, pp. 39 to 48, 1995 Copyright © 1995 Elsevier Science Ltd Printed in Great Britain. All rights reserved 0024-6301/95 $9.50+.00
Company profile
Established:
May 1933
Capital:
¥ 38.7 billion
Employees: 7900 (21,500 with subsidiaries & affiliates) Sales: ~ 370 billion (fiscal year 1993) Production: 5 plants (17 affiliated man ufactu rers) Sales outlets: 59 locations (150 affiliated dealers; 350 locations) Overseas affiliates: Sales: 18 Affiliates 40 locations Production: 7 Manufacturers 10 locations
puter literacy. Also it has encouraged the establishment of an innovate corporate culture with enhanced creativity and better ideas. Omron's Creative Information System
Major products
Control equipment Photoelectric components, relays, switches, timers, sensors, counters, level control equipment, thermal control equipment, programmable controllers Information system equipment Banking systems railway & traffic control systems Distribution system equipment ECR (Electronic Cash Registers) POS (Point Of Sale) terminals Medical equipment Home health equipment Medical equipment Electronic thermometers Electronic blood pressure meters OEM component PC peripheral equipment (scanners, modems, power units)
• The SIS includes a CIM system which integrates information from the development, production and marketing functions.
Period 1 Basic batch applications
Period 2
Period 3
Period 4
Mainframe on-line applications
Network infrastructu re
Strategic sytems
'81 '82 '83 '84
'85 '86 '87
year '70-
'75 '80
'88 '89
'90 '91
'92
'93 '94
SIS: (Strategic Information System), based on divisional strategy CIM: (Computer Integrated Manufacturing System), Factory automation covering development, production & marketing IIS: (Innovative Information System) A management innovation and electronic office system Global Network
Omron Corporate INS (Information Network System) For information & communication infrastructure External Network: Connecting dealers and vendors with Omron Management Support Electronic data bases for end users
Mainframe Systems Production control, Sales control, Financial control, Integrated production information system Computer Aided Design (CAD) System
Long Range Planning Vol. 28
April 1995
Restructuring
'Arming Managers with Information' An important aim of the IS restructuring was to challenge attitudes and behaviour especially among the managers who were the most important users. In 1987, there were very few managers who used computers, and their computer literacy was low. Computer literacy in Japanese companies is quite low. According to IDC Japan, only 10% of Japanese business people use personal computers or computer terminals compared with over 40% in the USA, and Omron was no exception in 1987. Kiyohiko Watanabe and the top management decided to use the 'Arming Managers with Information' (AMI) campaign to improve the situation with the help of Omron's 'one-stop-shop' office support system, MINE (Management Information System in Network Environment).
When Kiyohiko Watanabe took charge of the Information Systems Department (IS) of Omron Corporation in 1987 the company was in the middle of a financial crisis owing to the rapid rise in the exchange rate of the yen: from 250 yen per US dollar in 1985 to around 150 yen per US dollar in 1987. During the crisis, company top management faced some harsh realities. They could see that the company would be sandwiched between the two tough groups of competitors in the world, the dragons of South East Asia and the Americans. This seemed to threaten the very survival of the company. Top management saw that Omron's manufacturing expertise, which had made the company a world class manufacturer, would not be good enough to enable them to compete. They needed to build a management structure which would foster creativity and ideas. Because of the changes in the marketplace, and also The Innovative Information System to realize the company's vision of becoming a world class company by the year 2000, the top management (IIS) decided to restructure the whole company. The areas As mentioned earlier, both the IIS and the Strategic targeted for restructuring included sales, technology, Information System (SIS} have been developed since production, and headquarters. 1988. The IIS was designed to improve managers' computer literacy and to help to develop an innovInformation System Restructuring ative corporate culture with enhanced creativity and Kiyohiko Watanabe felt strongly that there was also a more new ideas. need to restructure the Information Systems DepartThe reasons why the IIS was initially focused on ment. Until 1987, IS had been committed to develop- managers were: ing on-line mainframe systems, promoting their use and helping their end users. As a result the staff had ~3 In today's volatile business environment, senior been bogged down in system maintenance chores, and management thought it would be dangerous for the department had accumulated an ever increasing the Omron company to allow its managers to rely queue of application development and modification on the experiences of the past. Therefore, the projects. Until 1987, there were only two activities IS company should help their managers to use inforhad been able to manage: 1. to keep stable the opermation more effectively. The company should ation of on-line mainframe systems, and 2. to deal also make them form the habit of thinking and with the associated maintenance. developing strategies with the aid of IT. There The management decided that the restructuring of are three major sources of information for manIS should be guided by three principles: agers: 1. IT, 2. face to face meetings or telephone conversations, and 3. publications. Until 1987, cl To follow the company's restructuring objectives: Omron had used very little information through 1. to be responsive to important changes in the IT partly because of their poor computer literacy, marketplace, 2. to help to develop an innovative compared with their counterparts in the USA. corporate culture. Therefore there was a strong need to improve the Q To be consistent with company and divisional IT service. strategies. Q Q To use the latest information technology (IT) where possible. Omron's Creative Information System
In 1988 t h e r e w e r e t w o m a i n g r o u p s in the age s t r u c t u r e of the c o m p a n y p e r s o n n e l . O n e g r o u p w a s a r o u n d 40 years old a n d the o t h e r a r o u n d 25.
There was need a for revitalization of the older group, the first 'baby boom' generation, to which most managers belonged.
Why Have a Decentralized System? Both the IIS and the SIS were developed on decentralized lines for the following reasons: [] Omron wanted all the managers to become aware of the importance of information obtained through computers in taking decisions and carrying out routine tasks. They also wanted their executives to feel as comfortable working with IT as they felt with their desks, filing cabinets and telephones. [] They wanted each of their managers to use the latest information systems on their own initiative, thinking of IT as 'my machine' and 'my system' and to use the IT information for problem solving and strategy making. (3 An end user based decentralized computer system w o u l d be more flexible in the volatile market environment. (3 A decentralized system is in tune with current IT trends, e.g. Network, Open, DOWn-loading, and MultimediA. (NEODOWMA). The NEODOWMA is an end user name, whereas most other IT names like SIS have been invented by computer companies or IS departments. Omron management decided that from n o w on, names of IT systems should be invented by the end users.
Just-in-Time (JIT) Information JIT information means an office where managers can obtain all the information they need w h e n they want it, i.e. 'just-in-time' through their computer terminal. The JIT information system follows the reorganized principles of 'human-centred' IT management systams: 1 1. Managers use and share information through IT.
2, It is a 'one-stop-shop' information system. 3. It takes a long time for managers to learn to use computers. 4. The computer terminal is only one of many sources of information w h i c h managers use, e.g. meetings, newspapers and the telephone. 5. It is important to allow managers to develop their own information environment to suit themselves.
Preparations for JIT Information [] In 1989, in order to improve managers' computer literacy and to prepare them for JIT information, each of the 800 managers was provided with a workstation. Since then they have operated the workstations themselves. Today, most managers feel comfortable with their terminals. [] Another preparation for the JIT information environment was to provide standardized charts and forms for managers to use. In April 1989, computer formats were standardized and since then managers have presented their reports on standardized forms. Company-wide, menu driven, fixed format computer forms have streamlined the routine handling of management information with easier information retrieval and easier preparation and presentation of reports. Also, agreeing the contents of presentations in advance has eliminated the collection of excessive amounts of backup data which is often included to answer possible questions from superiors. This had been happening with divisional sales reports to top management. O Certain key company documents such as contracts and instruction manuals were standardized through the use of the MINE system w h i c h is described below.
The One-Stop-Shop Office Support System Aladdin is an electronic office application package. The first set of modules is for company-wide users. It is in three parts:
(3 Electronic Mail is for company-wide users to share information via messages transmitted over ordinary computer networks or local area networks, under the direction of a host computer that receives messages, holds them, and sends them to the proper destination.
[] Electronic Guide Book, an organizational and functional directory data base.
0 Electronic Board is a data base containing information on company-wide business schedules and events. Long Range Planning Vol. 28
April 1995
Aladdin
LAN Series
Electronic office
PC functions
Company-wide users
Electronic mail Electronic guide book Organization & function directory Electronic board Business schedules & events
Lanword Word processor Lanplan Spread sheet Lanfile File control & management Langraph Graphics generator & processor
Departmental users
Data bases Contents of ongoing business talks and negotiations Meeting schedules Business announcements Business process instructions Telephone & fax directory Newspaper articles Company rules & regulations Tools and aids Business report generator Business process Instruction manual generator Contract documentation aids
Omron's Creative Information System
Nikkei Telecomm
External data bases
News flash Newspaper articles Who's who directory Company directory Library directory Credit standings directory Leisure & recreation guide
The second set of modules is for departmental users. The first group consists of various data bases such as the contents of ongoing business discussions and negotiations and meeting schedules. The second is a set of user-friendly electronic tools and aids for standardized company documentation. O The LAN Series consists of routine PC applications in the Local Area Network environment, such as LANWORD, a word processor, and LANPLAN, a spread sheet.
0 Nikkei Telecomm includes external data bases such as News Flash and newspaper articles. 0 MAX includes 16 managerial statistical data bases. 0 International Electronic Mail has overseas electronic mail and overseas business information support services. 0 Schedule Control includes data bases like reservations, and schedules.
Just-in-Time Expertise This refers to information sharing using electronic mail to enable managers to seek specific information, knowledge and advice from other company employees to resolve occasional problems. They simply send a 'help wanted' message with a description of their problem and their need for information. The 'help wanted' message will then be broadcast to a thousand end users throughout the company. Those w h o have relevant information, or know someone who has it, will reply directly. The development of the data bases containing the resulting questions and answers, a who's w h o directory of staff and the nomination of 'information librarians' professionals w h o can help others locate the various information sources, internal or external, is n o w under consideration.
Value A d d e d Information Some of the presentation materials and reports created by managers, as a result of their o w n information processing, have been shared and circulated through electronic mail or data bases. It is h o p e d that some of
them will trigger a chain reaction of good ideas and creative thinking among managers.
The IS Department One of the roles of the IS department is to exploit the information systems for the benefit of the company as a whole. This involves the following activities:
El Managing data bases The distributed system tends to develop 'islands' of incompatible data bases. The IS department must ensure that users retain accessibility to all the data bases through 'data navigation' and 'dictionary' functions. The data navigation function tells end users the specific locations of the data bases, which they are looking for. The data dictionary function tells them the key words and what they mean. 'Sales revenue' may be defined as 'what is booked at the plant when product is shipped' in the data dictionary, although there may be several different definitions of the word depending on where and h o w it is used. This 'authorized definition' is necessary for data bases which are company-wide. El Keeping up with new developments in information technology and advising departments how to develop their systems. The department serves as a trend watcher, covering both hardware and software applications. 0
User training, from basic computer literacy to the latest developments.
El System standardization throughout the corporation. In order to avoid the proliferation of islands of incompatible systems, the IS department monitors and guides system designs to ensure that systems conform to company standard guidelines. The consultation, audit and system design reviews monitor: • the way in which the system is linked to sources of information, information media, locations and end users--it evaluates whether the data bases are technically compatible and whether the information can be transmitted to all the personnel w h o need to have access to it; • h o w the data is being stored and structured, h o w different data relate to each other, and h o w they are accessed, retrieved, and used. 2 Long Range Planning Vol. 28
April 1995
MAX Management statistics data bases
International Electronic Mail Overseas messages
Management control statistics Orders & sales Gross profit & sales Accounts receivable Collection status Fixed Expenses Inventory Orders & sales plan vs, actual sales Orders & sales daily report Plant & equipment investment Plan vs. actuals Plans and control Independent business unit Status report Large-scale investments, Itemized plan vs. actuals Budgets vs. actual comparisons Orders & sales Independent business units Fixed expenses Business indexes Financial statement Financial statement analysis indexes Economic trends Personalized menus
Overseas electronic mail Text & data transmission & receiving Overseas business Information support services
Schedule Control
Activity plan & control data bases Reservation New entries, changes & deletions Schedule data base Daily Weekly Monthly By group Individual user registration Security control
User group registration
Omron's Creative Information System
Cl Responsibility for the corporate 'host' systems which also service the subsidiaries and affiliated companies. About 80% of the host system applications have been out-sourced since Omron started to develop the IIS and SIS in 1988. Out-sourced functions include system development, operations and maintenance work. The purpose of the out-sourcing was to shift the resources of the IS department to the development of the IIS and SIS. The remaining 20% of the host system applications have been integrated into the IIS and the SIS networks and data base functions. Cl Managing networks and computer security including the corporate host systems and their data bases. Cl The future development of the IIS. Cl Acting as 'ghost busters' and 'trouble-shooters' for end users. This will continue until the users become self-sufficient.
Excerpt from Nikkei Newspaper Article "The Arming Managers with Information(AMI) Campaign Is Providing Managers with a More Creative and Humane Work Environment', Nihon Keizai Shinbun. 3 The Omron Corporation has implemented a company-wide series of programs which aim to move it toward the vision of becoming a world class company in the twenty-first century operating in a global economy. It aims to be a global corporation, able to respond and adapt to the ever-changing marketplace. This reorganization will provide a more humane work environment, so that the staff will be able to apply their creative ability to the full, with the benefit of the latest computer technology. To achieve this objective, the c o m p a n y has developed the IIS system, which will open up the corporate culture, enabling all personnel to share information electronically so that the company will be able to respond quickly to changes in the marketplace. The SIS system will also improve the manufacturing process, which has made Omron c o m p a n y a world class manufacturer. 1988 was the first year of the programme for Arming
Managers with Information (AMI). Both the IS department and the user divisions will have to change to make the IS reorganization successful. The IS department will work, not just as a group of IT experts, but also as the vanguard of the AMI campaign. End users, especially managers, should take advantage of the opportunity to access and apply information through computer systems based on the latest technology. The activities will require an enormous effort from staff in the IS department and from end-users. The Omron has developed two systems to support the AMI campaign. IIS and SIS are both decentralized system. In installing the SIS System, first a divisional business strategy is developed, and then an appropriate SIS application system is designed. End users play a major role in designing the system with technical advice from the IS department. In this way, the AMI campaign benefits from experiences of endusers. The major role of managers toward twenty-first century will be changed from management of routine operations to the application of creativity and new ideas. Each manager, through the AMI campaign, will have a chance to start in this direction and the change will eventually spread to the entire workforce to produce an innovative and creative corporate culture. The results of this program since 1988 can be summarized in four points: I. Managers and other employees realize that the AMI campaign is for their own benefit as well as for the benefit of the company. 2. Business process improvements owing to the effective use of IT have increased dramatically. 3. The management style has became more strategic, and creative through the more effective sharing of the information made available through the new information systems. 4. Company personnel are more aware of the need to share information. To continue this development, there is a need for further education of end-users. The challenge for the company in the next five years is to help its staffto develop their 'intellectual capital' and to share it across the company. It is also important to help end users to build their own personal systems so that systems are based on the users' needs.
Long Range Planning Vol. 28
April 1995
References 1.
Thomas H. Davenport, Saving IT's Soul: Human Centered Information Technology, Diamond Harvard Business, June-July (1994).
2.
Stephan H. Haeckel et al., Managing by wire, Harvard Business Review, Sept-Oct (1993).
3.
Kiyohiko Watanabe, The Arming Managers with Information (AMI) campaign is providing managers with a more creative and humane work environment, Nihon Keizai Shinbun, January 1 (1992).
Omron's Creative Information System
Omron Corporation and its Information Systems Omron Corporation was established in May 1933. Its annual revenue for the fiscal year 1993 was ¥ 370 billion. As of March 1994 it employed 7900 staff and the total number of employees of the Omron Group, including its subsidiaries and affiliated companies was 21,500. The company's products are listed in Figure 1. The history of information systems development at Omron Corporation follows the expansion of on-line networks and is divided into four periods (see Figure 2): Cl Froth 1970 to 1980, basic batch systems were installed. Q During 1981 to 1984 the mainframe on-line applications were introduced. Large-scale on-line applications such as production control systems including CAD, and financial, sales, and product information and control systems, were established in this period. Cl During 1985 to 1987, computer networks, both internal and external, were developed and the external networks connected Omron headquarters to its subsidiaries, affiliated companies and vendors. In developing the dealer network, the company became one of the first companies which utilized VAN services. Cl Since 1988, the Innovative Information System (IIS) and the Strategic Information System (SIS) have been installed. Pergamon
0024-6301(94)00087-5
• The IIS has helped managers to use and share information through state-of-the-art IT. Initially it helped to improve managers' comLong Range Planning, Vol. 28, No. 2, pp. 39 to 48, 1995 Copyright © 1995 Elsevier Science Ltd Printed in Great Britain. All rights reserved 0024-6301/95 $9.50+.00
Company profile
Established:
May 1933
Capital:
¥ 38.7 billion
Employees: 7900 (21,500 with subsidiaries & affiliates) Sales: ~ 370 billion (fiscal year 1993) Production: 5 plants (17 affiliated man ufactu rers) Sales outlets: 59 locations (150 affiliated dealers; 350 locations) Overseas affiliates: Sales: 18 Affiliates 40 locations Production: 7 Manufacturers 10 locations
puter literacy. Also it has encouraged the establishment of an innovate corporate culture with enhanced creativity and better ideas. Omron's Creative Information System
Major products
Control equipment Photoelectric components, relays, switches, timers, sensors, counters, level control equipment, thermal control equipment, programmable controllers Information system equipment Banking systems railway & traffic control systems Distribution system equipment ECR (Electronic Cash Registers) POS (Point Of Sale) terminals Medical equipment Home health equipment Medical equipment Electronic thermometers Electronic blood pressure meters OEM component PC peripheral equipment (scanners, modems, power units)
• The SIS includes a CIM system which integrates information from the development, production and marketing functions.
Period 1 Basic batch applications
Period 2
Period 3
Period 4
Mainframe on-line applications
Network infrastructu re
Strategic sytems
'81 '82 '83 '84
'85 '86 '87
year '70-
'75 '80
'88 '89
'90 '91
'92
'93 '94
SIS: (Strategic Information System), based on divisional strategy CIM: (Computer Integrated Manufacturing System), Factory automation covering development, production & marketing IIS: (Innovative Information System) A management innovation and electronic office system Global Network
Omron Corporate INS (Information Network System) For information & communication infrastructure External Network: Connecting dealers and vendors with Omron Management Support Electronic data bases for end users
Mainframe Systems Production control, Sales control, Financial control, Integrated production information system Computer Aided Design (CAD) System
Long Range Planning Vol. 28
April 1995
Restructuring
'Arming Managers with Information' An important aim of the IS restructuring was to challenge attitudes and behaviour especially among the managers who were the most important users. In 1987, there were very few managers who used computers, and their computer literacy was low. Computer literacy in Japanese companies is quite low. According to IDC Japan, only 10% of Japanese business people use personal computers or computer terminals compared with over 40% in the USA, and Omron was no exception in 1987. Kiyohiko Watanabe and the top management decided to use the 'Arming Managers with Information' (AMI) campaign to improve the situation with the help of Omron's 'one-stop-shop' office support system, MINE (Management Information System in Network Environment).
When Kiyohiko Watanabe took charge of the Information Systems Department (IS) of Omron Corporation in 1987 the company was in the middle of a financial crisis owing to the rapid rise in the exchange rate of the yen: from 250 yen per US dollar in 1985 to around 150 yen per US dollar in 1987. During the crisis, company top management faced some harsh realities. They could see that the company would be sandwiched between the two tough groups of competitors in the world, the dragons of South East Asia and the Americans. This seemed to threaten the very survival of the company. Top management saw that Omron's manufacturing expertise, which had made the company a world class manufacturer, would not be good enough to enable them to compete. They needed to build a management structure which would foster creativity and ideas. Because of the changes in the marketplace, and also The Innovative Information System to realize the company's vision of becoming a world class company by the year 2000, the top management (IIS) decided to restructure the whole company. The areas As mentioned earlier, both the IIS and the Strategic targeted for restructuring included sales, technology, Information System (SIS} have been developed since production, and headquarters. 1988. The IIS was designed to improve managers' computer literacy and to help to develop an innovInformation System Restructuring ative corporate culture with enhanced creativity and Kiyohiko Watanabe felt strongly that there was also a more new ideas. need to restructure the Information Systems DepartThe reasons why the IIS was initially focused on ment. Until 1987, IS had been committed to develop- managers were: ing on-line mainframe systems, promoting their use and helping their end users. As a result the staff had ~3 In today's volatile business environment, senior been bogged down in system maintenance chores, and management thought it would be dangerous for the department had accumulated an ever increasing the Omron company to allow its managers to rely queue of application development and modification on the experiences of the past. Therefore, the projects. Until 1987, there were only two activities IS company should help their managers to use inforhad been able to manage: 1. to keep stable the opermation more effectively. The company should ation of on-line mainframe systems, and 2. to deal also make them form the habit of thinking and with the associated maintenance. developing strategies with the aid of IT. There The management decided that the restructuring of are three major sources of information for manIS should be guided by three principles: agers: 1. IT, 2. face to face meetings or telephone conversations, and 3. publications. Until 1987, cl To follow the company's restructuring objectives: Omron had used very little information through 1. to be responsive to important changes in the IT partly because of their poor computer literacy, marketplace, 2. to help to develop an innovative compared with their counterparts in the USA. corporate culture. Therefore there was a strong need to improve the Q To be consistent with company and divisional IT service. strategies. Q Q To use the latest information technology (IT) where possible. Omron's Creative Information System
In 1988 t h e r e w e r e t w o m a i n g r o u p s in the age s t r u c t u r e of the c o m p a n y p e r s o n n e l . O n e g r o u p w a s a r o u n d 40 years old a n d the o t h e r a r o u n d 25.
There was need a for revitalization of the older group, the first 'baby boom' generation, to which most managers belonged.
Why Have a Decentralized System? Both the IIS and the SIS were developed on decentralized lines for the following reasons: [] Omron wanted all the managers to become aware of the importance of information obtained through computers in taking decisions and carrying out routine tasks. They also wanted their executives to feel as comfortable working with IT as they felt with their desks, filing cabinets and telephones. [] They wanted each of their managers to use the latest information systems on their own initiative, thinking of IT as 'my machine' and 'my system' and to use the IT information for problem solving and strategy making. (3 An end user based decentralized computer system w o u l d be more flexible in the volatile market environment. (3 A decentralized system is in tune with current IT trends, e.g. Network, Open, DOWn-loading, and MultimediA. (NEODOWMA). The NEODOWMA is an end user name, whereas most other IT names like SIS have been invented by computer companies or IS departments. Omron management decided that from n o w on, names of IT systems should be invented by the end users.
Just-in-Time (JIT) Information JIT information means an office where managers can obtain all the information they need w h e n they want it, i.e. 'just-in-time' through their computer terminal. The JIT information system follows the reorganized principles of 'human-centred' IT management systams: 1 1. Managers use and share information through IT.
2, It is a 'one-stop-shop' information system. 3. It takes a long time for managers to learn to use computers. 4. The computer terminal is only one of many sources of information w h i c h managers use, e.g. meetings, newspapers and the telephone. 5. It is important to allow managers to develop their own information environment to suit themselves.
Preparations for JIT Information [] In 1989, in order to improve managers' computer literacy and to prepare them for JIT information, each of the 800 managers was provided with a workstation. Since then they have operated the workstations themselves. Today, most managers feel comfortable with their terminals. [] Another preparation for the JIT information environment was to provide standardized charts and forms for managers to use. In April 1989, computer formats were standardized and since then managers have presented their reports on standardized forms. Company-wide, menu driven, fixed format computer forms have streamlined the routine handling of management information with easier information retrieval and easier preparation and presentation of reports. Also, agreeing the contents of presentations in advance has eliminated the collection of excessive amounts of backup data which is often included to answer possible questions from superiors. This had been happening with divisional sales reports to top management. O Certain key company documents such as contracts and instruction manuals were standardized through the use of the MINE system w h i c h is described below.
The One-Stop-Shop Office Support System Aladdin is an electronic office application package. The first set of modules is for company-wide users. It is in three parts:
(3 Electronic Mail is for company-wide users to share information via messages transmitted over ordinary computer networks or local area networks, under the direction of a host computer that receives messages, holds them, and sends them to the proper destination.
[] Electronic Guide Book, an organizational and functional directory data base.
0 Electronic Board is a data base containing information on company-wide business schedules and events. Long Range Planning Vol. 28
April 1995
Aladdin
LAN Series
Electronic office
PC functions
Company-wide users
Electronic mail Electronic guide book Organization & function directory Electronic board Business schedules & events
Lanword Word processor Lanplan Spread sheet Lanfile File control & management Langraph Graphics generator & processor
Departmental users
Data bases Contents of ongoing business talks and negotiations Meeting schedules Business announcements Business process instructions Telephone & fax directory Newspaper articles Company rules & regulations Tools and aids Business report generator Business process Instruction manual generator Contract documentation aids
Omron's Creative Information System
Nikkei Telecomm
External data bases
News flash Newspaper articles Who's who directory Company directory Library directory Credit standings directory Leisure & recreation guide
The second set of modules is for departmental users. The first group consists of various data bases such as the contents of ongoing business discussions and negotiations and meeting schedules. The second is a set of user-friendly electronic tools and aids for standardized company documentation. O The LAN Series consists of routine PC applications in the Local Area Network environment, such as LANWORD, a word processor, and LANPLAN, a spread sheet.
0 Nikkei Telecomm includes external data bases such as News Flash and newspaper articles. 0 MAX includes 16 managerial statistical data bases. 0 International Electronic Mail has overseas electronic mail and overseas business information support services. 0 Schedule Control includes data bases like reservations, and schedules.
Just-in-Time Expertise This refers to information sharing using electronic mail to enable managers to seek specific information, knowledge and advice from other company employees to resolve occasional problems. They simply send a 'help wanted' message with a description of their problem and their need for information. The 'help wanted' message will then be broadcast to a thousand end users throughout the company. Those w h o have relevant information, or know someone who has it, will reply directly. The development of the data bases containing the resulting questions and answers, a who's w h o directory of staff and the nomination of 'information librarians' professionals w h o can help others locate the various information sources, internal or external, is n o w under consideration.
Value A d d e d Information Some of the presentation materials and reports created by managers, as a result of their o w n information processing, have been shared and circulated through electronic mail or data bases. It is h o p e d that some of
them will trigger a chain reaction of good ideas and creative thinking among managers.
The IS Department One of the roles of the IS department is to exploit the information systems for the benefit of the company as a whole. This involves the following activities:
El Managing data bases The distributed system tends to develop 'islands' of incompatible data bases. The IS department must ensure that users retain accessibility to all the data bases through 'data navigation' and 'dictionary' functions. The data navigation function tells end users the specific locations of the data bases, which they are looking for. The data dictionary function tells them the key words and what they mean. 'Sales revenue' may be defined as 'what is booked at the plant when product is shipped' in the data dictionary, although there may be several different definitions of the word depending on where and h o w it is used. This 'authorized definition' is necessary for data bases which are company-wide. El Keeping up with new developments in information technology and advising departments how to develop their systems. The department serves as a trend watcher, covering both hardware and software applications. 0
User training, from basic computer literacy to the latest developments.
El System standardization throughout the corporation. In order to avoid the proliferation of islands of incompatible systems, the IS department monitors and guides system designs to ensure that systems conform to company standard guidelines. The consultation, audit and system design reviews monitor: • the way in which the system is linked to sources of information, information media, locations and end users--it evaluates whether the data bases are technically compatible and whether the information can be transmitted to all the personnel w h o need to have access to it; • h o w the data is being stored and structured, h o w different data relate to each other, and h o w they are accessed, retrieved, and used. 2 Long Range Planning Vol. 28
April 1995
MAX Management statistics data bases
International Electronic Mail Overseas messages
Management control statistics Orders & sales Gross profit & sales Accounts receivable Collection status Fixed Expenses Inventory Orders & sales plan vs, actual sales Orders & sales daily report Plant & equipment investment Plan vs. actuals Plans and control Independent business unit Status report Large-scale investments, Itemized plan vs. actuals Budgets vs. actual comparisons Orders & sales Independent business units Fixed expenses Business indexes Financial statement Financial statement analysis indexes Economic trends Personalized menus
Overseas electronic mail Text & data transmission & receiving Overseas business Information support services
Schedule Control
Activity plan & control data bases Reservation New entries, changes & deletions Schedule data base Daily Weekly Monthly By group Individual user registration Security control
User group registration
Omron's Creative Information System
Cl Responsibility for the corporate 'host' systems which also service the subsidiaries and affiliated companies. About 80% of the host system applications have been out-sourced since Omron started to develop the IIS and SIS in 1988. Out-sourced functions include system development, operations and maintenance work. The purpose of the out-sourcing was to shift the resources of the IS department to the development of the IIS and SIS. The remaining 20% of the host system applications have been integrated into the IIS and the SIS networks and data base functions. Cl Managing networks and computer security including the corporate host systems and their data bases. Cl The future development of the IIS. Cl Acting as 'ghost busters' and 'trouble-shooters' for end users. This will continue until the users become self-sufficient.
Excerpt from Nikkei Newspaper Article "The Arming Managers with Information(AMI) Campaign Is Providing Managers with a More Creative and Humane Work Environment', Nihon Keizai Shinbun. 3 The Omron Corporation has implemented a company-wide series of programs which aim to move it toward the vision of becoming a world class company in the twenty-first century operating in a global economy. It aims to be a global corporation, able to respond and adapt to the ever-changing marketplace. This reorganization will provide a more humane work environment, so that the staff will be able to apply their creative ability to the full, with the benefit of the latest computer technology. To achieve this objective, the c o m p a n y has developed the IIS system, which will open up the corporate culture, enabling all personnel to share information electronically so that the company will be able to respond quickly to changes in the marketplace. The SIS system will also improve the manufacturing process, which has made Omron c o m p a n y a world class manufacturer. 1988 was the first year of the programme for Arming
Managers with Information (AMI). Both the IS department and the user divisions will have to change to make the IS reorganization successful. The IS department will work, not just as a group of IT experts, but also as the vanguard of the AMI campaign. End users, especially managers, should take advantage of the opportunity to access and apply information through computer systems based on the latest technology. The activities will require an enormous effort from staff in the IS department and from end-users. The Omron has developed two systems to support the AMI campaign. IIS and SIS are both decentralized system. In installing the SIS System, first a divisional business strategy is developed, and then an appropriate SIS application system is designed. End users play a major role in designing the system with technical advice from the IS department. In this way, the AMI campaign benefits from experiences of endusers. The major role of managers toward twenty-first century will be changed from management of routine operations to the application of creativity and new ideas. Each manager, through the AMI campaign, will have a chance to start in this direction and the change will eventually spread to the entire workforce to produce an innovative and creative corporate culture. The results of this program since 1988 can be summarized in four points: I. Managers and other employees realize that the AMI campaign is for their own benefit as well as for the benefit of the company. 2. Business process improvements owing to the effective use of IT have increased dramatically. 3. The management style has became more strategic, and creative through the more effective sharing of the information made available through the new information systems. 4. Company personnel are more aware of the need to share information. To continue this development, there is a need for further education of end-users. The challenge for the company in the next five years is to help its staffto develop their 'intellectual capital' and to share it across the company. It is also important to help end users to build their own personal systems so that systems are based on the users' needs.
Long Range Planning Vol. 28
April 1995
References 1.
Thomas H. Davenport, Saving IT's Soul: Human Centered Information Technology, Diamond Harvard Business, June-July (1994).
2.
Stephan H. Haeckel et al., Managing by wire, Harvard Business Review, Sept-Oct (1993).
3.
Kiyohiko Watanabe, The Arming Managers with Information (AMI) campaign is providing managers with a more creative and humane work environment, Nihon Keizai Shinbun, January 1 (1992).
Omron's Creative Information System