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Purchase control policies
Purchase control policies by A C COLLINS
Finding a balancebetween centralizedDP andpersonal computers
Abstract: The article looks at the ways in which personal computers are introduced into organization and suggests that best results are obtained with a balance between centralization and decentralization. Control over the purchase and use of personal computers should not be completely relinquished by the data processing department. However, it i also important to ensure flexibility in the use of these machines by the end user. Keywords: data proposing
microcomputer.
A C Collins is director ofcorporate management services at Segas.
10
planning and
0011-684X/82/04001C-O3$03.00
0
oday, within many companies, personal computers are viewed with suspicion and disdain by conventional mainframe orientated data processing managers. Centralization gives power and control. Also, unfortunately, it all too often leads to remoteness of the facility, long delivery times for new systems and rarely do the systems really serve management. In other companies, however, personal computing has run rife. ‘Small is beautiful’ has become the motto of the day. The consequence, unfortunately, is that important ~fo~ation needed to be shared within the organization becomes locked up in separate machines. Often this information is not in step with similar information elsewhere. In some cases, managers become fascinated with the new facility and try to make it perform tasks more appropriate to a mainframe computer. In other instances, managers start to use their personal computer to do tasks themselves better performed by subordinate stti There must be a balanced and mature approach to the use of personal
T
1982 Butterworth
& Co (Publishers)
Ltd
computers to serve the basic business goals of the company. It is not good enough for data processing professionals to despise the facility, nor is it necessarily in the best interests ofthe company to relinquish total control of the resource. In this paper, therefore, I will consider what I believe to be a middle road with both control exercised and flexible use of personal computers.
Personal computing Most companies today are facing the ~troduction of personal microcomputers to a greater or lesser extent, In some organizations, the management services function has lost control and the wholescale introduction of the personal microcomputer is leading to what I term ‘fragmented processing’ under the guise of what is termed distributed processing. From data analysis studies we have carried out in South Eastern Gas (Segas) we know that there are very few areas of our business which stand in isolation and where the data/information used is not
data processing
shared with some other part of the organization. It is worthwhile considering why end users of computing services are asking for such facilities. Firstly, it must be acknowledged that they like data processing, otherwise they would not be seeking further facilities of that type. However, they are impatient with the long delivery times which they have traditionally experienced from their data processing department. They believe, therefore, that by having access to microprocessors under their local control, they will be able to have systems delivered more quickly. In one sense they believe that they can do ‘the job’ better than the data processing professional. However, in forming these opinions, they ignore the need to have good standards of documentation of the system since the person who is developing the program in general is developing it to meet their own conveniently requirements. They forget that should they leave the organization, somebody else taking over their job would have to redevelop that piece of work if the instructions relating to it are inadequate and there is no documentation available. The developer under these conditions also conveniently forgets such issues as the requirements for data validation. The fact that he/she may be duplicating files held by other individuals, that he/she may not have met the requirements for an audit trail as laid down by most auditors of data processing systems is not regarded as being of great importance.
Advantages There are however, a number of basic advantages which derive from the introduction of personal computers into an organization if they are used rationally. Firstly, the end users gain a better understanding of computing by having hands-on experience and going through a learning process. Secondly, it cannot be denied that in some instances faster developments can be
~0124 no 8
October 1982
obtained by the use ofpackages or local development for small scale programs to meet small local requirements. Thirdly, the introduction of technology further down the line is a devolutionary process which puts more of the control of the job into the hands of the end user. Finally, but not least important, the competitive action which arises fi-om the introduction of personal computers, acts as a stimulus to the management services department to explore more rapid developments of systems and keep their costs down to a minimum.
services department management controls their introduction so that such facilities become a natural and logical extension of the information processing plan of the organization. It is, therefore, important that we cooperate in a flexible manner with the advent of these new facilities. In Segas, we have adopted the following approach to the introduction of personal computers in order to try to maximise the benefit and minimise the dangers I have outlined above.
Dangers
The first issue is to control the expenditure relating to personal computers. In Segas, purchase of personal computers requires approval from management services and the purchase is made against a special budget controlled by management services. Any enquiry through our purchasing back to department is referred management services, and we ensure that they have an up to date list of all personal computers on the market against which they can check. For most applications within Segas, we have standardized on the Apple II so that programs can be prepared centrally and issued to ensure some degree of conformity and standardization. A central library of applications is maintained and a regular bulletin sent to all users so that they know what others are doing and what facilities are available from the central library. By standardizing on a particular model and purchasing in larger quantities we have also been able to reduce expenditure. At this point in time, about 50 units are in use, the majority being at our regional headquarters. Some units have been introduced into a number of district offices for the use of local government. We are particularly interested in the concept of developing local networks into which such facilities can be linked together with our other terminal facilities with telecommunications links back to our mainframe computers. If such net-
Equally there are dangers which derive from the use of these facilities. Firstly, a process of disillusionment can result where individuals have had access to microprocessors and have not succeeded in using them well. Secondly, end user departments will have to devote time and resources to the development of systems and to the learning process. There can, therefore, be much wasted time and employment levels can be increased unnecessarily. I have already mentioned the danger of fragmenting information processing to a degree where the organization is suboptimizing the use of its data and information. Equally there is the danger that in carrying out local development of small systems each local unit ignores the requirements of the others so that the systems they develop cannot be linked. Various information bases can be out of step with others and much time and effort can be spent in trying to resolve the difficulties. Thus, instead of the company having reduced its overhead costs, it may find that the total costs of its operations have risen, cost of the apparent although information processing may seem to have decreased. If personal computers are to be introduced successfully into the company, it must be done with the effective cooperation of the management services department. Indeed, in my opinion, it is important that the
Control of expenditure
11
works became available, we would be able to maximize the benefits of local computing and at the same time enable them to access the larger information bases, as can any other terminal in the network.
Cost justification Any individual applying for a personal computer is asked to justify its application to business problems. We do not believe in the indiscriminate introduction of such facilities purely for the sake of having them there. A major emphasis should be that there is a business problem and the most appropriate solution of all the possible solutions is the application of the personal computer. The acquisition of this equipment has to be cost justified on the same basis as any other equipment and should be the lowest cost solution, all other things being equal. In justi&ing the equipment, we ensure there are no hidden costs, e.g. the use of specialist personnel, such as computer programmers or expensive software facilities. Once the decision has been made to provide the equipment, a local is management services contact appointed to assist the individual use the equipment. In other words, we ensure that one individual from management services is nominated to keep in touch with the user and help him/her with any programming problems that may be encountered, to provide advice concerning the equip ment and software upgrades and to keep him/her in touch with other users. A central advice service is also operated from regional headquarters and an extensive software library as I have already maintained, mentioned.
Monitoring the use of pcs Since
the equipment is purchased by management services department, if larger scale facilities are later introduced, we have the right to negotiate with the individual for the removal of the personal computer. To date, such
12
an event has not occurred but we feel that it is wise to have that measure built in to our terms of reference. The local contact we appoint is also able to ‘audit’ the use to which the end user is putting the equipment. This is done in an informal way rather than a formal ‘audit’ that most of us would understand. Should the necessity arise however, I have no doubt that we can introduce a more formal process.
Documentation
standards
Where a personal computer is used in isolation, that is to say, it is not linked to the larger network, we do not impose rigid standards for documentation or data validation. However, the moment that the equipment is linked to what I term the ‘data freeway’ the user will have to meet all the normal standards applying to other systems on that network. I like to use the analogy of a tractor being used on a farm to illustrate this. Whilst the tractor is operating in isolation on the farm, it does not matter whether it conforms to the rules of the road or has safety features such as brakes, lights or meets other standards such as having number plates. The moment, however, that the tractor leaves the farm and goes on to the road, it is important that it conforms to all the regulations applying to vehicle transit. This is required to ensure that all other users of the road can travel in safety. To my mind there is a great similarity in terms of the use of personal computers when considered in isolation or when linked to the network.
Micro users club One particular feature of the approach we have taken at Segas is the formation of a Micro Users Club. This is an informal organization and is not steered by management within management services to any great extent. It is run by a small committee of enthusiasts for personal computing. It is available to all employees through-
out Segas who may or may not have had experience of using personal computers. The only requirement is that they have a keen interest and attend the monthly meetings of the Club. We try to cater for all tastes ranging from the individual who has never had the opportunity of using one of these devices and who may wish to do little more than play computer games, to the highly skilled individual who is building their own unit or who is developing sophisticated packages in machine language. To date, this club has proved to be a successful innovation with an average of 60 people attending each meeting and up to 100 attending on occasions. A wide range of topics are discussed ranging from a detailed presentation on the use of VisiCalc to a games evening, or an introductory seminar on what a personal computer is and how it can be used. A regular bimonthly magazine (called Random Access) is produced at low cost and has a heavy dependence on contributions from members. Its popularity is such that is is now circulating outside Segas to other parts of British Gas Corporation. The emphasis of our approach is to be friendly, flexible and above all helpful to the end user. Only by such means do we feel that we can gain the confidence of the individual end user in this field, and encourage a better appreciation of how to use such facilities to the wider interests of the organization as a whole. I do not believe that by being prohibitive we can succeed in stopping movement in this direction, but at the same time, I must ensure that the overall movement forward is in accordance with a well planned approach and is not jeopardized by a helter-skelter rush towards personal computing. Rational control and flexible adaptation to the new circumstances must, therefore, by the order of the day. 0 SEGAS, Segas House, Katherine Street, Croydon CR9 lJU, UK. Tel: 01-688 4466.
data processing
Finding a balancebetween centralizedDP andpersonal computers
Abstract: The article looks at the ways in which personal computers are introduced into organization and suggests that best results are obtained with a balance between centralization and decentralization. Control over the purchase and use of personal computers should not be completely relinquished by the data processing department. However, it i also important to ensure flexibility in the use of these machines by the end user. Keywords: data proposing
microcomputer.
A C Collins is director ofcorporate management services at Segas.
10
planning and
0011-684X/82/04001C-O3$03.00
0
oday, within many companies, personal computers are viewed with suspicion and disdain by conventional mainframe orientated data processing managers. Centralization gives power and control. Also, unfortunately, it all too often leads to remoteness of the facility, long delivery times for new systems and rarely do the systems really serve management. In other companies, however, personal computing has run rife. ‘Small is beautiful’ has become the motto of the day. The consequence, unfortunately, is that important ~fo~ation needed to be shared within the organization becomes locked up in separate machines. Often this information is not in step with similar information elsewhere. In some cases, managers become fascinated with the new facility and try to make it perform tasks more appropriate to a mainframe computer. In other instances, managers start to use their personal computer to do tasks themselves better performed by subordinate stti There must be a balanced and mature approach to the use of personal
T
1982 Butterworth
& Co (Publishers)
Ltd
computers to serve the basic business goals of the company. It is not good enough for data processing professionals to despise the facility, nor is it necessarily in the best interests ofthe company to relinquish total control of the resource. In this paper, therefore, I will consider what I believe to be a middle road with both control exercised and flexible use of personal computers.
Personal computing Most companies today are facing the ~troduction of personal microcomputers to a greater or lesser extent, In some organizations, the management services function has lost control and the wholescale introduction of the personal microcomputer is leading to what I term ‘fragmented processing’ under the guise of what is termed distributed processing. From data analysis studies we have carried out in South Eastern Gas (Segas) we know that there are very few areas of our business which stand in isolation and where the data/information used is not
data processing
shared with some other part of the organization. It is worthwhile considering why end users of computing services are asking for such facilities. Firstly, it must be acknowledged that they like data processing, otherwise they would not be seeking further facilities of that type. However, they are impatient with the long delivery times which they have traditionally experienced from their data processing department. They believe, therefore, that by having access to microprocessors under their local control, they will be able to have systems delivered more quickly. In one sense they believe that they can do ‘the job’ better than the data processing professional. However, in forming these opinions, they ignore the need to have good standards of documentation of the system since the person who is developing the program in general is developing it to meet their own conveniently requirements. They forget that should they leave the organization, somebody else taking over their job would have to redevelop that piece of work if the instructions relating to it are inadequate and there is no documentation available. The developer under these conditions also conveniently forgets such issues as the requirements for data validation. The fact that he/she may be duplicating files held by other individuals, that he/she may not have met the requirements for an audit trail as laid down by most auditors of data processing systems is not regarded as being of great importance.
Advantages There are however, a number of basic advantages which derive from the introduction of personal computers into an organization if they are used rationally. Firstly, the end users gain a better understanding of computing by having hands-on experience and going through a learning process. Secondly, it cannot be denied that in some instances faster developments can be
~0124 no 8
October 1982
obtained by the use ofpackages or local development for small scale programs to meet small local requirements. Thirdly, the introduction of technology further down the line is a devolutionary process which puts more of the control of the job into the hands of the end user. Finally, but not least important, the competitive action which arises fi-om the introduction of personal computers, acts as a stimulus to the management services department to explore more rapid developments of systems and keep their costs down to a minimum.
services department management controls their introduction so that such facilities become a natural and logical extension of the information processing plan of the organization. It is, therefore, important that we cooperate in a flexible manner with the advent of these new facilities. In Segas, we have adopted the following approach to the introduction of personal computers in order to try to maximise the benefit and minimise the dangers I have outlined above.
Dangers
The first issue is to control the expenditure relating to personal computers. In Segas, purchase of personal computers requires approval from management services and the purchase is made against a special budget controlled by management services. Any enquiry through our purchasing back to department is referred management services, and we ensure that they have an up to date list of all personal computers on the market against which they can check. For most applications within Segas, we have standardized on the Apple II so that programs can be prepared centrally and issued to ensure some degree of conformity and standardization. A central library of applications is maintained and a regular bulletin sent to all users so that they know what others are doing and what facilities are available from the central library. By standardizing on a particular model and purchasing in larger quantities we have also been able to reduce expenditure. At this point in time, about 50 units are in use, the majority being at our regional headquarters. Some units have been introduced into a number of district offices for the use of local government. We are particularly interested in the concept of developing local networks into which such facilities can be linked together with our other terminal facilities with telecommunications links back to our mainframe computers. If such net-
Equally there are dangers which derive from the use of these facilities. Firstly, a process of disillusionment can result where individuals have had access to microprocessors and have not succeeded in using them well. Secondly, end user departments will have to devote time and resources to the development of systems and to the learning process. There can, therefore, be much wasted time and employment levels can be increased unnecessarily. I have already mentioned the danger of fragmenting information processing to a degree where the organization is suboptimizing the use of its data and information. Equally there is the danger that in carrying out local development of small systems each local unit ignores the requirements of the others so that the systems they develop cannot be linked. Various information bases can be out of step with others and much time and effort can be spent in trying to resolve the difficulties. Thus, instead of the company having reduced its overhead costs, it may find that the total costs of its operations have risen, cost of the apparent although information processing may seem to have decreased. If personal computers are to be introduced successfully into the company, it must be done with the effective cooperation of the management services department. Indeed, in my opinion, it is important that the
Control of expenditure
11
works became available, we would be able to maximize the benefits of local computing and at the same time enable them to access the larger information bases, as can any other terminal in the network.
Cost justification Any individual applying for a personal computer is asked to justify its application to business problems. We do not believe in the indiscriminate introduction of such facilities purely for the sake of having them there. A major emphasis should be that there is a business problem and the most appropriate solution of all the possible solutions is the application of the personal computer. The acquisition of this equipment has to be cost justified on the same basis as any other equipment and should be the lowest cost solution, all other things being equal. In justi&ing the equipment, we ensure there are no hidden costs, e.g. the use of specialist personnel, such as computer programmers or expensive software facilities. Once the decision has been made to provide the equipment, a local is management services contact appointed to assist the individual use the equipment. In other words, we ensure that one individual from management services is nominated to keep in touch with the user and help him/her with any programming problems that may be encountered, to provide advice concerning the equip ment and software upgrades and to keep him/her in touch with other users. A central advice service is also operated from regional headquarters and an extensive software library as I have already maintained, mentioned.
Monitoring the use of pcs Since
the equipment is purchased by management services department, if larger scale facilities are later introduced, we have the right to negotiate with the individual for the removal of the personal computer. To date, such
12
an event has not occurred but we feel that it is wise to have that measure built in to our terms of reference. The local contact we appoint is also able to ‘audit’ the use to which the end user is putting the equipment. This is done in an informal way rather than a formal ‘audit’ that most of us would understand. Should the necessity arise however, I have no doubt that we can introduce a more formal process.
Documentation
standards
Where a personal computer is used in isolation, that is to say, it is not linked to the larger network, we do not impose rigid standards for documentation or data validation. However, the moment that the equipment is linked to what I term the ‘data freeway’ the user will have to meet all the normal standards applying to other systems on that network. I like to use the analogy of a tractor being used on a farm to illustrate this. Whilst the tractor is operating in isolation on the farm, it does not matter whether it conforms to the rules of the road or has safety features such as brakes, lights or meets other standards such as having number plates. The moment, however, that the tractor leaves the farm and goes on to the road, it is important that it conforms to all the regulations applying to vehicle transit. This is required to ensure that all other users of the road can travel in safety. To my mind there is a great similarity in terms of the use of personal computers when considered in isolation or when linked to the network.
Micro users club One particular feature of the approach we have taken at Segas is the formation of a Micro Users Club. This is an informal organization and is not steered by management within management services to any great extent. It is run by a small committee of enthusiasts for personal computing. It is available to all employees through-
out Segas who may or may not have had experience of using personal computers. The only requirement is that they have a keen interest and attend the monthly meetings of the Club. We try to cater for all tastes ranging from the individual who has never had the opportunity of using one of these devices and who may wish to do little more than play computer games, to the highly skilled individual who is building their own unit or who is developing sophisticated packages in machine language. To date, this club has proved to be a successful innovation with an average of 60 people attending each meeting and up to 100 attending on occasions. A wide range of topics are discussed ranging from a detailed presentation on the use of VisiCalc to a games evening, or an introductory seminar on what a personal computer is and how it can be used. A regular bimonthly magazine (called Random Access) is produced at low cost and has a heavy dependence on contributions from members. Its popularity is such that is is now circulating outside Segas to other parts of British Gas Corporation. The emphasis of our approach is to be friendly, flexible and above all helpful to the end user. Only by such means do we feel that we can gain the confidence of the individual end user in this field, and encourage a better appreciation of how to use such facilities to the wider interests of the organization as a whole. I do not believe that by being prohibitive we can succeed in stopping movement in this direction, but at the same time, I must ensure that the overall movement forward is in accordance with a well planned approach and is not jeopardized by a helter-skelter rush towards personal computing. Rational control and flexible adaptation to the new circumstances must, therefore, by the order of the day. 0 SEGAS, Segas House, Katherine Street, Croydon CR9 lJU, UK. Tel: 01-688 4466.
data processing