Information treatment

1. Information treatment Information systems

2. Information systems are just BIG databases • They are very useful in running a firm • because we need to treat/process information to run a firm • There are many levels of activities in a firm

3. What is a firm ? • It is a BIG body to create products and services from inputs • The inputs : work, raw materials, anything supplied by suppliers

4. What is needed to run a firm ? • All the inputs described on the previous slide • and organisation tools • INFORMATION SYSTEMS are big organisation tools (just like our « organiser »)

5. reference http://lapasserelle.com/escem/

6. All the important functions of a firm produce and use plenty of repetitive information • Therefore databases (large databases, i.e. information systems) pervade the firm

7. The small view of the business computing course : • It would be to limit it to basic office work helping tools : • word processors • spreadsheets • image treatment softwares (PSP, photshop, paint…) • databases (for addresses) • and browsers (just to access the Net)

8. Middle mgt = « les cadres » • In the early fifties in France 40% of the working population was employed in farms • But industry was developping : plants rose, they needed people to manage them, these were called « les cadres » • China also was, according to C.P. Snow, « a large peasant country » • more than 20% of the population ? • It also underwent industrial development

9. FNAC • Fnac means « fédération nationale des associations de cadres » • Founded by Max THERET in the early 50 ’s • The cadres had their own consumption habits (like any other social category) and M. Théret, a visionary, sensed that they would like to have their own shops

10. Blue collars • Appeared in the wake of the Industrial Revolution • Tremendous consequences… • Social thinkers developped new social theories

11. Blue collars (2) • World War I saw the end of the power of aristocrats or pensioned people • The pension people were ruined after WWI • Between WWI & WWII, in France, the political system catered to the Blue collars (le Front Populaire, les conge ’ paye) • The middle-mgrs were not socially powerful enough to exist as a class

12. White collars in the US • They appeared in the inter war period • They were hit by the great depression • It was inthinkable for an american that a white collar could be out of work

13. Chinese middle managers • They here too represent a new social class • with its consumption patterns • way of thinking • radio stations • magazines • vacation habits • dress codes • etc. • A bit of sociology will tell us what they will want, and then we can supply it...

14. Future efficient managers (i.e. Escem students) • We need to understand • not only how to use Word • or what an information system is for • but history • sociology • politics

15. The origin of middle mgt • There has been plants in France since the Industrial Revolution (that happened 10 000 years after the agricultural revolution, now we are in ….. Revolution) • They had middle mgt : usually called « regisseur », « intendant », etc • But they did not form a social class • why ? • Because they were not numerous enough

16. Which first new social class was created by the Industrial Revolution ? • Workers (also called Blue collars, as opposed to White collars) • « proletarian » class • Big social changes • when ? • In the 19th century new thinkers thought about this class

17. Pattern recognition • Learning what happened in the past gives us plenty of patterns • Sometimes in the present we may recognize a known pattern • Then if we know what was the consequence of the past pattern, we have a hint at what may happen

18. Pattern recognition (2) • Pattern recognition softwares will help the top executives • Their role requires to « understand » evolving situations, anticipate, and take appropriate action • (Much different from the Operations level tasks)

19. The second social class created by the industrialization • « Les cadres » that is Middle mgt people • Why ? • Simply enough because there became numerous • When a social category (same pattern, same living habits, samemagazines, etc.) it becomes a social force

20. Information systems penetrated the firms from bottom up • First : • accounting (in the 60 ’s), because accounting produces strongly patterned information (transactions, recordings, accounts…) • and production (in the 70 ’s) : J.I.T. systems, that give rise to S.C.M. • Second : the office work (word processors… in the early 80 ’s) • before that secretaries had typewriters (-> PC ’s) • and engineers had drawing boards (-> work stations)

21. Information systems penetrated the firms from bottom up • Thirdly : • middle management in the 80 ’s and 90 ’s : databases, spreadsheets, elaborate softwares • in 1990 the financial officer at Chaumet had a computer in his office (it was turned off because he didn ’t know how to use it, I asked why do you have it then, he said : it ’s a must now…) • Fourthly : the top-executive (in the 90 ’s and NOW) • their job is harder « to put into cards »  : like cookbook recipes compared to football players • computer aided decision softwares • in the future (pattern) they will have « profiling » softwares

22. The automation of the top executive functions : • Well, it’s not as simple as automating the accounting functions • It’ll be related to some sort of automated sifting through large loads of information • It’ll be related to signals recognition • It’ll be related to pattern recognition

23. It’ll be related to pattern recognition • The top executives have the responsability to take decisions • This requires thinking (high level information processing) • I call it : pattern recognition • TIAS program will have as offshoots just that.

24. The Toshiba graphic pad/portable • It started from a concern of the strategic staff (upper middle mgt level ; they directly advise the top executives) • Next : a meeting between the strategic staff and the marketing people • (They also talked to the Finance chaps) • The ouput was a set a notes for the engineers • And then the engineers started to engineer

25. More on the manufacturing : • In 1970 walking through a car assembly plant, we would see only the same cars • And behing every worker there was a sizeable stock of parts • Now in 2002 walking through a car assembly plant we see very different cars following each other, each corresponding to a client order • And no sizeable stocks behind workers (J.I.T.) • This is a revolution

26. This is a revolution... • It could not have been possible without very powerful Information systems.

27. The information chain • It starts at the car dealership : • a client orders a customized car • The information is stored into a CRM (customer relationship mgt) information system • It is, via the back office functions of the CRM, transmitted to the HQ and to the manufacturing plant • there it triggers a whole second chain of actions • to suppliers (Supply Chain Mgt) • and to the plant piloting systems • assignement of workers jobs • putting in front of each worker the information concerning each model

28. By the way... • In a plant producing many items we have a choice • either the workers move from one piece to the next • or the in-process pieces move along the still workers • since Taylor the second possibility is preferred • (there has been experiments with the 1st at Volvo in the 70 ’s, they did not last)

29. Balancing a chain : • Each worker has a given amount of time to work (each worker the same) • Balancing a chain is to split the total work in such a way as to fill in as much as possible each worker’s minute of work time

30. Balancing a chain : • (Volvo experiment was not pursued) • And now in front of each worker pass DIFFERENT cars • Usually the plant produces one car per minute • Therefore each worker has got one minute of work

31. Balancing a chain (2) : • Filling in this one minute efficiently is called balancing the chain • If the chain is not balanced, workers are idle (waste of time, time is money) • Balancing a modern chain is much more complex than balancing a 1970 ’s chain

32. Balancing a chain (3) : • Yet there are small tricks : workers on a moving platform… • This belongs to the subject of modern manufacturing engineering • (Of course it requires fairly complex information systems)

33. Balancing a chain (4) : • Modern manufacturing plants are fairly complex systems • No longer the workshop with three blokes smoking cigarettes • « Hé Popol passe-moi la clé de huit » • Even car repairs shops in cities have changed • now clean • computer driven to some extent

34. Is it Taylorism ? • Well, Taylorism purported to use automation to gain efficiency (money efficiency) • In the sense that we are still concerned with money efficiency we can call it the offspring of Taylorism • But it ’s a long way from 1910 plants.

35. Firms functions • We visited the shopfloor, we’ve taken a look at what happens in the offices, in the engineering dept, we popped into the executive suites… • You will work in firms • either inside (communication with your office neighbours) • or outside (sales jobs, communication with other cultures)

36. Communication • Particularly in sales jobs you will need to communicate with people of all cultures • Efficient communication (like efficient stories) addresses the three parts of the brain • cortex (ideas, explanations, plots) • limbic (sympathy, respect…) • reptilian (keep down agressivity, but use desire…)

37. The big consistency • There is a big consistency in these stories : • people at work • producing • exchanging • consuming

38. Excessive automation • It is possible to further improve the efficiency of a modern assembly plant • moving carpets bringins parts • automated assistants of all sorts • moving platforms, etc • The problem is : at some point it negates the human being • it is a productivity problem • as well as a phisophical problem

39. Productivity trade off • In modern car assembly plant the productivity is 4 cars per worker per day • (A beautiful productivity ratio !, remember the bakery example in the accounting course : how many loaves of bread per day per person) • There is a trade off between productivity and cost per person per day • The more skilled the more expensive • It can be tempting to prefer cheaper less skilled workers • But we are not cheap, are we ?

40. I.S. impact • They tremendously increase productivity • They also help increase quality • cf. Quality circles in Japan in the 70 ’s • cf. Edward Demming work on statistical quality control • But they may put people out of work • At any rate they raise the work added-value