Pace 38 PO WEEKNAPPLIGATION DEVELOPMENT DEC. 26, 1968/ JAN. 2, 989 in this, the Jifih of his five- part series on strategic svys- tems, James Martin dis- cusses how an information strategy may be used effectiveliy to gain competi- tive advantage and to tie togeth- er ali aspects of the operation of. an organization. In the near future, the competitive corporation will be run with a vast mesh of interacting computers and data: base systems. Computers in one corpora- tion will interact online with computers in other corporations—its customers, suppliers, distributors and so on. | Innovative companies are | how computers, networks, workstations | and other technology can enable them | to launch pre-emptive market attacks on their competitors. Computing and in- | formation systems are now strategic weapons, not a backroom overhead. Business is increasingly becoming a battle of technology, with competing | computerized procedures and informa- tion systems. In such a battle, the corpo- ration with backward IS development loses. As technology widens the possibility of competitive opportunities and threats, the time for implementing com- puterized procedures narrows. It is es- sential to build new applications guickly and to develop them for swift modifi- cations. ; Jt will be impossible to manage and implement the procedures for this com- plex environment without using the ad- vanced technology that is now available. These advances in technology include the spread of SOL-compatible database- management systems, as well as the rapid growth of powerful, microcomput- er-based desktop workstations, comput- er-aided software (CASE) and integrated CASE (CASE) tools, ex- pert systems, local area communications networks and multilevel distributed computer architectures. These technolo- gies, together with the growth of net: work standards, make it possible to tie together disparate computer systems and distribute information to key deci- sion makers. Given so many competing technolo- gles, it is becoming harder for DP pro- fessionals to select an appropriate, effec- tive combination of technologies to im- peni an information strategy for their organization. | | | | Business Becomes a Battle of Technology End users are moving toward a multi: layered, distributed computer architec- ture in which mainframes are used to store corporate data; minicomputers or file servers are used to support depart- mental operations; and networked per- sonal computers are used to support lo- cal data manipulation. » CASE and I-CASE tools: Highly inte- grated, eneyclopedia-driven, computer- aided systems engineering tools are making it possible to generate applica- tion code directly from graphical specifi- cations. [CASE products combine a front-end CASE tool with a tightly inte- grated back-end code generator. % Forward/reverse engineering tools: A new generation of CASE tools now tools run on conventional DP hardware (including PCs) and they are closely in- tegrated with the data-processing envi- ronment. These tools are oriented to- ward the solution of smaller rule-based problems and can be used by conven- tional DP personnel who may not have specialized training in knowledge engi- neering. " New development methodologies: More efficient development; life-cycle processes, such as rapid prototyping, in- formation engineering, interactive JAD (Joint Application Design) and timebox methodologies, are making it possible to develop applications more rapidly and in closer coordination with end users. e Growth of standards: Gradually, The corporation with backward information systems loses, so it is essential to build new applications auickly and to develop them for swift modifications. 1 ao H pomo under development will enable analysts to convert low-level data definitions and unstructured process code into high-lev- el structures. These high-level data and .. |. process structures can then be used in a forward-engineering process to generate — normalized data definitions and struc- standards are emergine that will govern the future evolution of hardware and software, Standard environments in- ' elude IBMs commitment to the Systems Application Architecture (SA A) and Digital Eguipment Corpxs development |. | of a consistent, compatible 1) Gain competitive advantage. 2) Use information as a strategic weap- on to lock in customers but lock out competitors. 3) Tie the strategy directly to eritical success factors identified for the organi: zation. i 4) Use advanced technology to put in place strategic systems that operate at the heart of the organization and run all aspects of the business. 5) Improve decision making by getting the right information to high-dollar-val- ue decision makers. 6) Implement intercorporate networks that link manufacturers to suppliers, customers, distributors, retailers, finan- cial organizations and so on. 7) Create entirely new businesses or ma- jor changes in the operation of current: businesses using strategic information stored in the corporate database. Organizations are increasingly using their computer systems for strategic purposes, rather than' simply supporting back-office operations. It is important for DP professionals to recognize the im- portance of information to the goals of the organization and to provide proac- tive support for the development of strategic information systems. As shown in the figure, strategic in- formation systems (or mission-critical systems) operate at the heart of the en- terprise and run every aspect of the or- ganization. They tend to be large, com- plex systems that operate at. high trans- action volumes and run on distributed networks of computers. They freguently reguire a non-stop environment; if the systems fails, the business stops. A commitment to strategic informa- tion systems involves risk because the organization is highly dependent on the continued operation of the system. In addition, due to the complexity inherent in these systems, they may be expensive and difficult to build. "The long-term benefits of strategic systems far outweigh the risks. They en- able information to be used as a strate- gic resource to improve the decision. making process, increase the competitive capability of the enterprise and inte- grate all functions of the organization. — Many corporations have used strategic č information systems successfully to pro- pel the organization far ahead of its competitors and to create entirely new or improved businesses. Companies that have successfully employed an ad- vanced information strategy include American Airlines and First Boston Corp. Next week I will evaluate the strate- gic importance of integrated CASE Na nology—the most important professional ad pana in Mes,