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"Business is War" "2025, Fisher & Paykel, and Geelong District Water Board... What Do They Have In Common?" or "Business is War" The use of open systems technology has achieved wide spread use in the past two years. This paper cites three examples of organizations in widely divergent areas, all experiencing the same benefits and flexibility open systems offer. Through the appropriate use of technology, and the standardisation of interfaces, protocols, and formats, customers are gaining increased information management flexibility independent of the technology. Roger Fraumann Managing Partner EF Consulting 203 Bellevue Way NE #141 Bellevue, WA 98004 +1-206-251-1111 Introduction: We are at the cusp of a significant change in the way we conduct business. Already some organizations are finding the human reference of time is glacial compared to the electronic arbitrage requirements. The human element is planned out, well in advance, and the following execution is then independent of human intervention. This enables "real-time" sales, production, and quality analysis to be incorporated across the enterprise. To be successful, an organization needs to acquire information, decide what to do, and deliver product more quickly, reliably, and accurately than their competitors. To the military, they want to know, decide, and act within the enemies decision cycle. At the heart of this is "C 4 I" (Command, Control, Communications, Computers, and Intelligence). For both, the major focus is rising above the technological differences and on what integrates and works together. Borrowing from the Japanese motto, "Business is war", we can gain insight where planning and open systems (the standardization of interfaces) is used for competitive advantage. Three organizations are highlighted: The U.S. Department of Defense, and the recently completed "2025 study" which studies the art of war by 2025. * Fisher & Paykel, a NZ white goods and electronics manufacturer, which has focused on being a "smart company" with a lot of IT in the washing machine. * The Geelong District Water Board, a regional Victoria, Australia water authority, which has worked to build an IT capability to improve level of service. What do they have in common? They have all worked to be flexible and adaptable with open systems, albeit in different ways. Observation about the Japanese motto 'Business is War': "In the event of war; the first recourse of American military planners has been to turn to its industrial base: the U.S. has produced its way to victory. Japan's industry had little surplus capacity and there was great scarcity of raw materials. In order to produce the weapons it needed, Japanfirst had to engage in political and military actions to secure the natural resources that industrial production required. In other words, for Japan, war was the foundation of industry, while for the US., industry was the foundation of war."l 1 Friedman, George and LeBard, Meredith The Coming War with Japan (1st edition) New York: St. Martin's Press, 1991, p. 30. 22- 5 Page 1

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"Business is War"

"2025, Fisher & Paykel, and Geelong District Water Board...What Do They Have In Common?"

or"Business is War"

The use of open systems technology has achieved wide spread use in the past two years. Thispaper cites three examples of organizations in widely divergent areas, all experiencing the samebenefits and flexibility open systems offer. Through the appropriate use of technology, and thestandardisation of interfaces, protocols, and formats, customers are gaining increased informationmanagement flexibility independent of the technology.

Roger FraumannManaging Partner

EF Consulting203 Bellevue Way NE #141

Bellevue, WA 98004+1-206-251-1111

Introduction:

We are at the cusp of a significant change inthe way we conduct business. Already someorganizations are finding the human referenceof time is glacial compared to the electronicarbitrage requirements. The human elementis planned out, well in advance, and thefollowing execution is then independent ofhuman intervention. This enables "real-time"sales, production, and quality analysis to beincorporated across the enterprise.

To be successful, an organization needs toacquire information, decide what to do, anddeliver product more quickly, reliably, andaccurately than their competitors. To themilitary, they want to know, decide, and actwithin the enemies decision cycle. At theheart of this is "C 4I" (Command, Control,Communications, Computers, andIntelligence). For both, the major focus isrising above the technological differences andon what integrates and works together.

Borrowing from the Japanese motto,"Business is war", we can gain insight whereplanning and open systems (thestandardization of interfaces) is used forcompetitive advantage.

Three organizations are highlighted:The U.S. Department of Defense, andthe recently completed "2025 study"which studies the art of war by 2025.

* Fisher & Paykel, a NZ white goods andelectronics manufacturer, which hasfocused on being a "smart company"with a lot of IT in the washingmachine.

* The Geelong District Water Board, aregional Victoria, Australia waterauthority, which has worked to buildan IT capability to improve level ofservice.

What do they have in common? They haveall worked to be flexible and adaptable withopen systems, albeit in different ways.

Observation about the Japanese motto'Business is War': "In the event of war; thefirst recourse of American military plannershas been to turn to its industrial base: theU.S. has produced its way to victory.Japan's industry had little surplus capacityand there was great scarcity of raw materials.In order to produce the weapons it needed,Japanfirst had to engage in political andmilitary actions to secure the natural resourcesthat industrial production required. In otherwords, for Japan, war was the foundation ofindustry, while for the US., industry wasthe foundation of war."l

1 Friedman, George and LeBard, Meredith The ComingWar with Japan (1st edition) New York: St. Martin'sPress, 1991, p. 30.

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U.S. 2025 Study:

Because of the declining Soviet Union threatwith resulting declining competitive morale,planning lethargy and pessimism, and theneed to balance technology futures withhuman limitations, Admiral Jeremiah2, Chairof the Pentagon's Joint RequirementsOversight Council, commissioned the "2025Study". The result is a "purple" consensusdriven strategic planning document. Itsimpact has been considerable in U.S.military, congress, and defense industrycircles.

Phase one, managed in late 1990 by Dr.Cronin3 a senior fellow at the Institute ForNational Strategic Studies, resulted in fourindependent scenarios for the future. Phasetwo, managed by Dr. Montapeno 4, distilledthe initial scenarios to define several technicaldirections and mission impacts. The resultwas thirteen more scenarios which were thenfed into a final team of 14 people, formed intothree task groups; forestructure, regionalsecurity, and technology. Both of the projectphase managers credit Dr. Al Bernstein withthe overall project coordination.

The final product is an "unfinished" 4,000page DoD working paper, touching in part,on what advanced technology the U.S.military will need to meet their changingmission requirements. Since late '92,portions of the content have been revealed tothe general public.

2 Jeremiah, Admiral David E., USN, Vice Chair of U.S.Joints Chiefs of Staff. Commissioned in 1956, rose tocommander of U.S. Pacific Fleet, and planned theoperation resulting in the capture of the hijackers of theItalian cruise liner Achille Lauro. Personalcommunications with ADM Jeremiah's aide Lt. Col.Lary Icenogle, JCS Public Affairs Office, January - June1993.3 Cronin, Dr. Patrick M., Senior Fellow, Institute ForNational Strategic Studies, National Defense University;Washington, DC 20319-6000 U.S.A., 2025 Phase 1manager, Personal meeting, 3 June, 1993.4 Montapero. Ronald N., Ph.D.. Senior Fellow,Institute For National Strategic Studies, NationalDefense University; Washington. DC 20319-6000U.SA., 2025 Phase 2 manager, Personal meeting, 3June, 1993.

Starting with general observations, includingthe likely doubling of the world's populationto 10 billion people - and perhaps a quarter ofthem hungry every day; it is expected thatmassive migrations and regional conflictsover natural resources will escalate. Thissuggests the post-Soviet Union era will bedominated by regional conflicts, ethnic rivalryand humanitarian relief tasks.

This forces a re-thinking of the U.S. defenseposture, and highlights three time provenqualities which are needed for the armedforces to prevail; superior technology,superior ability to adapt forces and resources,and Command, Control, Communications,Computers, and Intelligence (C41).

The federal procurement system is one of thefirst areas being changed as a result of thestudy, in particular because of changes instrategic requirements, domestic priorities,and advanced technology. The acquisitioncycle is being compressed to exploit the state-of-the-art technology (including productionprototypes and prototype deployment). Price/performance/ support metrics are also beingconsidered more fully. The need washighlighted by the results of one recent studywhere a specialized military computer wasfound costing 100 times more than a similaroff-the-shelf system.5

The Center for Strategic & InternationalStudies completed a "Military TechnicalRevolution" (MTR) study in mid '93sponsored by the Undersecretary of DefenseAcquisition. "It concludes that the criticalaspects of the MTR will include theavailability of Reconnaissance, Surveillance,and Target Acquisition (RSTA) informationin real time; on-demand strikes to neutralizetargets as quickly as possible; the use ofdistributed and resilient networks forinformation distribution; increasingly multi-functional military forces that can perform abroad range of missions; and more flexiblebehavior by the organizations - military and

5 Jeremiah, ADM David, Speech delivered to the SecurityAffairs Support Association, Arlington, Va., November5, 1992.

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political..." 6 It seems that this is a recipe forwhat will happen in the civilian (business)sector as well.

Compounding this acceleration in integrationare numerous technological breakthroughspossible in the next several years, particularlyin robotics, biotechnology, artificialintelligence, directed energy weapons, andsuperminiaturisation. 7

To highlight the danger that the U.S. faceswith becoming technologically obsolete,ADM Jeremiah uses the example of theBritish Navy launching the Dreadnought classship in 1907. Essentially, it rendered allsurface combatant ships obsolete, includingthe rest of the British Navy! Britain had tostart over like everyone else. This enabledGermany to challenge Britain because of it'sgreater industrial capacity to produce thenewer types of ships.8

Although we are not able to predict the fulleffect of technological changes, we cananticipate the effect on the systems. ADMJeremiah believes that the U.S. needs tomove away9:

1. From highly specialized systems thatcan be used only against a narrowthreat to unique environment

2. From inflexible systems that can notbe easily adapted to exploit newtechnologies.

3. From systems that lack a high degreeof strategic and tactical mobility.

4. From systems that lack low-observable or stealth technologies.

5. From systems that require large,vulnerable logistical trails.

Into

short, away from isolated and dependentindependent yet integrated systems.

6 DoD studies impact of 'military revolution Jane'sDefence Weekly 12 June, 1993, p. 25.7 Gauging U.S. Military Requirements in 2025 AviationWeek & Space Technology November 30, 1992, p. 68.8 Jeremiah, ADM David, Speech delivered to theIndustrial Base Symposium, NDU Washington DC, 7April 1993.9 Jeremiah, ADM David, Speech delivered to theLongrange Forum Symposium, NDU Washington DC, 9September 1992.

When it comes to C4I, "the greatest work isprobably end-to-end integration. It's notenough to assemble intelligence, or evenmake informed decisions. We need to be ableto know, decide, and act faster than ourenemy at every turn. We need to operateinside his decision circle. We need the dataour reconnaissance systems gather to betransmitted in real time to command centers,where targeting instructions to loitering cruisemissiles or other weapons, which then hit thetarget -- possibly with terminal guidance fromoverhead systems." 10

Specific examples of enabling technologyinclude:

The U.S. Navy's Advanced CombatDirection System (ACDS) to be tested in1994 and fully deployed in 1996. Itautomatically combines many data feedsacross the fleet into a single, unambiguoustactical display. Working "hand and glove"with the new Command and ControlProcessor (C2P) technology, it includesdecision support features, and will be fullyinteroperable with U.S. and allied forcesthrough the Joint Tactical InformationDistribution System Link 16 network(JTIDS).11 ACDS is expected to address"New Threat Upgrade" requirements for mostof the ships in the Navy, and is based on anopen systems computer architecture usingMotorola and LANs.

The Intelligence and Planning (I&P) segmentof the Advanced Research Projects Agency(ARPA) War Breaker program is "automatingbattlefield intelligence, planning, andtargeting to shorten cycle times betweendetecting a 'time critical' target, transferringthat information to decision makers, andlaunching an attack against the threat." 12

They have taken a programmatic approach toshorten the I&P cycle by automating the"choke points" in the process. For example,

10 ibid.11 USN sets for ACDS Block I Jane's Defence Weekly15 May, 1993, p. 25.12 War Breaker I&P project aims to cut strike cycle timesAviation Week & Space Technology June 7, 1993, pp.151-153.

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repetitive and tedious data comparisons andcorrelation are being reduced from hours toseconds. Due for full scale demonstration in1999, four examples include:

* Intelligence correlation where AI and"fuzzy logic" is applied to extract specialforces electronic mail for correlation andresolution.

* A multiple access intelligence andnomination system intelligent networkcalled "Mains" ensures target nominationsare simultaneously routed to multiplecommand levels.

* Local Attack Controllers (LAC) providingreal-time target recognition and indicatorinformation to satellites, aircraft andground-based sources, and unmannedairborne vehicles (UAV).13.l4

* Terrain and feature imagery delimitation -where the goal is to identify as quickly aspossible the majority of the battlespacethat be safely ignored. It appears work isunderway where a specialized parallelcomputer using embedded algorithms andsoftware will be able to delimit onemillion sq. km in 2-3 minutes.

Using the Improved Data Modem (IDM),Apache attack helicopters can exchange digitaltargeting information with Army armored andfire support units and USAF C2 and attackaircraft. 1 Although the IDM is data only -the U.S. Army aims to drastically curtail theneed for insecure voice communications.During a proof-of-principle joint exercise,there was only one voice communicationduring a three phase attack operationincluding Apaches, tanks and other vehicles,artillery, mortars, UAV's and other assets.The interoperability specifications for theIDM seem to be permeating a broad spectrumof military assets and will likely becomeconsistent across all branches of service.

13 CL-227 Sentinel unmanned airborne SurveillanceSystem Aviation Week & Space Technology May 31,1993, p. S15.14 New Ships Carry UAVs Aviation Week & SpaceTechnology July 12, 1993, p. 24.15 Apache shows off its digital data skills Jane'sDefence Weekly 15 May. 1993, p. 10.

The U.S. Air Force Special OperationsC-130U Gunships are being fitted withintegrated fire control avionics and sensorsincluding synthetic aperture radar and infrareddetection systems coupled with computer-driven and trainable 25mm. Gatling, 40mm.cannon and 105mm. howitzer weapons. 16

The integrated weapon systems within thecraft will soon be relying on real-timetargeting intelligence from other sources. Atsome point, ground troops, perhaps even inanother branch of the service, will desire todirectly control fire from a forwardobservatory. Asking the aircrew to surrenderfire control will be a tougher task thanconnecting the technology.

Eventually scenarios like a stealth ship17insensitive to high waves receivingsurveillance information from other assetsincluding a Autonomous UnderwaterVehicle 18 (AUV) and launching a cruisemissile to loiter in a predetermined battlespacefor terminal guidance by yet othersurveillance asset, perhaps a real-time videoimaging system mounted in a parafoil andlaunched by a 155-mm. artillery shell. 19 willrequire a significant amount of consistencywith command and control. (The 160' stealth"SWATH" (Small Waterplane Area Twin-Hull) shipprototype was not visible on X-band radar even within100-200 yards, but its trail was.20)

Efforts are already underway to accomplishthe required C2 consistency. In 1991, theUSAF Electronic Systems Center initiated anon-target 5 year Portable, Reusable,Integrated Software Modules (Prism) effort todevelop an off-the-shelf open systems basedmulti-level secure generic command center.After conducting a survey with 30 commandcenter software developers, it was found that

16 Computers, Sensors Boost Gunship LethalityAviation Week & Space Technology May 3, 1993, p.46.17 U.S. Navy Unveils Sea Shadow Stealth VesselAviation Week & Space Technology April 26, 1993, p.23.18 Out into the blue Jane's Defence Weekly 12 June,1993, p. 92.19 Industry Outlook Aviation Week & SpaceTechnology May 17, 1993, p. 19.20 Sea Shadow Eludes Radar Aviation Week & SpaceTechnology May 3, 1993, pp. 43-45.

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"67% of all functions are common to allcommand centers and 21% are common tosome". 21 According to the Prism programmanager, Lt. Col. Robert Ridlehoover, "Weare finding that our architecture will satisfy80% of the functionality of any commandcenter regardless of who they are."22 Howlong will it take for this to be applied tobusiness?

Eventually, I expect Prism provide aconsistent command center function governedby "rules of engagement" to be reduced tohigh-software content silicon and embeddedin systems ranging across the C2 landscapefrom individual "smart" weapons to TaskForce and Pentagon applications.2 Ofcourse, this could also potentially backfire ifan enemy were to reverse engineer it andexploit a flaw.

What about emerging technologies? Theirlong term effect is difficult to predict, but,here are a few examples:

Micro-ElectroMechanical System(MEMS). Produced with the sameprocess as for semiconductors, they arealready destined to be used for inertialguidance, embedded sensors, and colorscanners. One application is envisionedby "Distributing thousands of sensors andassociated actuators - all controlled as aneural network by microprocessors -across the wing of an aircraft ... whichcould become a control surface for low-drag, stealthy flight..."24 Theinformation handling requirements for amyriad of MEMS demands the plug andplay capability of open systems.

* Radar Absorbing Materials (RAM). Alightweight spray-on polymer radarabsorbing coating has been developed,which also happens to change colors

21 Generic Command Center Speeds System DesignAviation Week & Space Technology March 8, 1993. p.53.22 ibid. p. 52.23 ibid. p. 53.24 Micro-machines hold promise for aerospace AviationWeek & Space Technology March 1, 1993, pp. 36-37.

when a current is applied.25 While thisreduces radar effectiveness by 40-50%, itcan have a greater potential by helping abomber appear visually as a delta wingfighter, or other pattern. By couplingareas of paint with computer control, it ispossible to drive a quivering or flickeringeffect to confuse gunners and otheroptically guided systems.

Non-Lethal Combat. High powermicrowave projectiles (generating a 12-30million 400 nanosecond rise time pulsefor destroying microelectronics 'devices) 26, optical munitions (with a verybright, broad band burst of lightproducing temporary blindness),'andacoustic weapons (which triangulatedproduce discomfort to death) 27 Thesesystems all require computer aiming andcontrol. A combination of them, withcomputer driven accuracy and timing forbest effect can simply overwhelmcommon defenses.

Where weapon systems technology will be in2025 is up for grabs, but it is clear that theintegration of command, control, andcomputers is paramount. Only the sense ofurgency is increasing for standardizedinterfaces, protocols, and formats - theessence of open systems.

Overall, the 2025 study, and ones like it havealready made a significant impact on the U.S.military, government, and private sectors.The changes of the "Military TechnicalRevolution" are already spreading into theprivate sector across the U.S. An example isPresident Bill Clinton's call for technologytransfer to the private sector towards the"advancement of the nation's informationinfrastructure - interoperable communicationsnetworks, digital libraries, data bases, andcomputer systems."28 The Silicon Valley is

25 Signature reduction key to A-10 survival AviationWeek & Space Technology June 7, 1993, pp. 135-137.2 6 EMP Weapons lead race for non-lethal technologyAviation Week & Space Technology May 24, 1993, p.36.27 Army prepares for non-lethal combat Aviation Week& Space Technology May 24, 1993. p. 62.28 Infotech Advances Hinge on Deregulation AviationWeek & Space Technology May 31. 1993, p. 102.

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attempting to recover from it's misfortunes bybecoming the "Smart Valley", and attemptingto integrate the very systems it helped createas fiercely independent.

Just as the "Dreadnought" rendered theBritish Navy obsolete, the American softwareindustry faces a similar problem. While somebelieve that America's control of the shrink-wrapped software industry is a positiveindication of dominance, their reluctance for"open systems", in particular at theapplication level, builds the case for others tobuild transparent layers on top. Theseintegration enhancement technologies notonly smooth over all of the proprietarysoftware "differentiators", but may leave theU.S. software industry burdened in a trap ofits own design. As the "open systems"revolution moves up from operating systemsand networks towards applications andbeyond, this will become increasinglyapparent.

Fisher & Paykel:

When a top graduating engineering student atthe University of Auckland mentioned that hewas very interested in working at Fisher &Paykel (a New Zealand white goods andelectronics technology manufacturer), Idetermined that I had to learn more. What Ifound is a very capable high technologycompany, competing very much like aVelociraptor. 29

Fisher & Paykel was founded in 1934 toimport appliances and electronic goods, butfour years later a change in NZ governmentregulations forced the company into localmanufacturing. Until the early 1960's thecompany assembled copies of U.S. and U.K.based products, which did not leverage wellin New Zealand's small market and did notcreate a significant opportunity for export.As result, Fisher & Paykel was motivated to

29 Fisher & Paykel's "Dino Buster" marketing campaignsymbolizes competing technology as dinosaurs. Usinga play on words, if you were to picture Fisher & Paykel asone of the competition, it would be as efficient as a packof Velociraptors, portrayed as an extremely intelligentand capable hunter in Michael Crichton's book "JurassicPark".

develop an internationally competitivemanufacturing philosophy.

53 years later, in 1987, they launched theFisher & Paykel brand and year laterannounced their "whiteware manufacturingplan" to position the company for the 1990's.By 1990 they had expanded to build a plant inCleveland, Australia, and were voted"Supplier of the Year"30 for two yearsrunning.

The four strategic elements of Fisher &Paykel's manufacturing philosophy are:

Unique Production Technology:Fisher & Paykel are early adopters offlexible manufacturing techniques likeusing pre-painted steel and by creatingmicro-processor production controllers.Fisher & Paykel Production MachineryLtd. now designs and builds completeproduction lines including modularfactories for both Fisher & Paykel andother international customers. Forexample, the Cleveland, Australiawhitegoods factory was shipped inmodules from New Zealand andassembled on site in two months.31

Product: The focus is to add value,including unique products for nichemarkets. For example, their RyniteT

thermoplastic polyester resin Smartmotor32 makes it cost effective tomanufacture motors in New Zealand, andenables their washing machines to beconsiderably simpler, lighter, and easierto maintain. 33 This computer drivenmotor design is driven off of the DC bus,significantly simplifying meetinginternational power requirements. It canbe driven at varying rates of speed and ineither direction, which enables the

30 Fisher & Paykel was voted "Supplier of the Year" bythe Australian appliance industry in Mingays Magazine31 Smrtdriving with client/server ManagingInformation Systems August 1993, Client/ServerSupplement p.12.32 Fisher & Paykel Industries Limited Annual Report1992 78 Springs Road, East Tamaki, Auckland, NewZealand.33 Fisher & Paykel Industries Limited Company Profilep. 17.

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computer controlled machine to be trulyunder software control. It also eliminatedthe need for the heavy and expensivetransmission and literally revolutionizedthe washer industry.

Electronics: Fisher & Paykel attractssome of the best engineering graduates,and has some of the best technologyresearch and development opportunities inNew Zealand. They effectively exporthigh technology embedded in whitegoods, and is one of the best examples ofNew Zealand high tech companies.

People: An example of Fisher &Paykel's dedication to quality is theElectronics Division recently receivingISO 9002 quality certification. Theirapproach to Total Quality Managementwas, in part, influenced with their 30 yearrelationship with Matsushita Electric.One of Fisher & Paykel's keys to successhas been to manage the constantmanufacturing and product changesthrough an emphasis on the customer andthrough employee education. Accordingto Bruce Caldwell, General Manager ofInformation Systems34, 5-10% ofemployee time is spent on educationwhich permeates across the companythrough the quality and personaleducation program. The company wideprogram is driven by Gary Paykelfocused on learning to satisfy ourcustomers.

Effectively, Fisher & Paykel has been able toreduce the tyranny of distance throughinnovation and long term focus on quality andsimplicity. They have effectively usedplanning, where appropriate to establishpriorities and then adjust on the fly. Theability to move fast is paramount. Their battleplan is to identify problems, identify thecritical issues, and then resolve as quickly aspossible.

Over time, they have been building aninformation system model for a genericproduction and distribution company. Bystandardizing the model, they will be able tosimplify management of corporate IT growth.In a way, their effort compares with the U.S.Prism program encapsulating Command andControl in software.

Fisher & Paykel's approach to flexiblemanufacturing places interesting demands ontheir information model. Information is aviewed as a key asset owned by theappropriate business unit. For otheroperations to gain access, they must showthey can provide value. For example, thelinking of warranty information and repairs tothe production design group helps them feelthe heat.

They have been able to leverage the industriesgradual evolution towards "Open Systems"through standardisation. Their movementtowards using an open systems model hasbeen a step by step approximation rather thana one time capital investment.

By using primarily Sequent, Sun, DataGeneral and IBM UNIX machines across theorganization, they have made access andsupport as transparent as possible. Theremaining legacy systems, includingCAD/CAM is being moved off of themainframe to RS/6000 workstations. "Whypay millions for a mainframe when you canuse workstations costing between $A20,000and $A100,000 to do the same job?" saysCaldwell 35. Currently there is a movementtowards using Microsoft Windows for the PCusers.

Fiber optics form the backbone of thenetwork, while unshielded twisted pair isused for the spreaders. One of the key,developments was the interconnection of theprocess controllers onto the network. In fact,the washing machines are connected throughtesting jigs to the network several times"during production.

34 Caldwell Bruce, Gen. Mgr. of Info. Sys. Fisher &Paykel 78 Springs Road, East Tamaki, Private Bag 17,Panmure, Auckland New Zealand, Personal meeting 20May, 1993.

35 Smardriving with client/server ManagingInformation Systems August 1993, Client/ServerSupplement p. 14.

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One of the world's largest Ingres RDBMSusers, they use Ingres to manage bothproduction and corporate information, and arecurrently evaluating the Ingres Stardistributed database technology. Over thepast several years they have been working onbreaking Ingres across a number of machinesand forming a more associative rather thanrelational data model.

By using databases to control the productionlines, they can drive an "every model everyday" manufacturing strategy while being ableto change product specifications across theline in 20 seconds. For example, the NewZealand refrigeration line is capable ofmaking 1,400 different refrigerator modelvariations back to back (2 widths * 24 models* local market variations * colors). Thecomputers also take into considerationoptimization of work-in-progress inventoryissues.

Fisher & Paykel uses a 'risk adverse'approach while working with informationtechnologies. Avoiding the 'bleeding edge',they have utilized the cutting edge oftechnology to enhance their flexiblemanufacturing approach. They makeextensive use of bar-codes and othertechniques to embed intelligence within theproduct so it can participate in its ownproduction. They are an outstanding exampleof what can be done in a modemmanufacturing facility with open systems.

Geelong District Water Board:

The Geelong District Water Board (GDWB)was formalized as a self funding statutoryauthority in 1984 after operating over 70years as a Trust. It is the largest waterauthority in Victoria, outside of Melbourne,covering 3,900 sq. km. and servicing200,000 people. More importantly it servicesone of the hearts of Australian heavy industryincluding Alcoa, Ford, and Shell. Theseheavy industries are very reliant on adependable water supply.

to water supply, wastewater systems anddesignated waterways in an efficient, costeffective, and environmentally acceptedmanner."36

Their top level planning document, the 10Year Capital Works Plan, maintains a list andprioritization of capital works. This plan isevaluated annually, and supplementary listsand documentation are maintained whenchanges are required. This plan featuresextensive long range planning, including adam project scheduled for 2015 which entailsyears of preparation work including sitingand land usage.

The Business Plan which falls out of theCapital Works document is a living 5 yeardocument which includes budgets andforecasts, 5 year capital plan (with 3 yearsliding horizon), equity and cash flow and 12month tariff settings.

In the mid 70's, enmeshed deep within thisframework of heavy planning, the EDPsection could be found tucked under theFinance Manager. By 1987, the financialaccounting and billing was performed on alow end System/38 with 19 terminals, andengineering and laboratory services hadaccess to 4 microcomputers and a terminallink to a DEC 20 at a local University.

Computer based word processing throughoutthe five story GDWB building was printed ona single dot-matrix printer in the computerroom. All water supply network analysisdata was obtained on hard copy printed out atthe University, 5 km. away. Acquisitionsbetween 1987 and 1989 were largely withoutplan, and islands of computing and data werequickly created.

In 1989 the Board developed a CorporateComputing Strategy to incorporate theexisting investment in computing technologywith any proposed investment. Driven by acombination of the above mentioned GDWBdocuments, and the vision of newly hired JoeAdamski, Executive Manager for Information

The board's business mission, as defined init's 1984 charter is "to provide, maintain, andoperate water management functions related

36 Providing Cusomer Service with IS. - A User StoryGeelong District Water Board Information SystemsDivision May, 1993.

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Systems 37, an overall IT Strategy plan wascreated, complete with predicted 5 yearcosting.

Today the GDWB vision is stated as "By30th June, 1997, through our businessexcellence, we will be providing the bestcustomer services in the Australian WaterIndustry". 38 This vision statement demandscomprehensive, integrated, accurate, andreliable data about assets and performance tobe made available and maintained, hence theirheavy reliance on IT and on open systems.

The pattern of having the procurementprocess being one of the first things to changewithin the U.S. government after the 2025study also occurred for the GDWB. One ofthe early results from the CorporateComputing Strategy was to revise theirtendering process to include requiring aregistration of interest, formal evaluation,benchmarking, and final board approval. Inaddition, they established the followingminimum criteria:

1. Utilize existing investment incomputer facilities

2. Implement an open system3. Seek a multi-vendor solution4. Select one vendor to act as a Prime

Contractor5. Develop in-house expertise to ensure

success of implementation andongoing systems support. (Adamskiestimates 10% of his staffs time isrequired for education and stayingcurrent.)

The changes with the GDWB IT structurehave been significant as key components ofthe corporate computing strategy are beingimplemented:

1. One homogenous network able tocater for a number of protocols andinterfaces including: Network filesystem for microcomputers,

37 Adamski, Joe, Exec Mgr. IS Geelong & DistrictWater Board 61-67 Ryrie SL. Geelong, VIC 3220Australia, Personal meeting 17 May, 1993.38 -Yizina- Geelong District Water Board ExecutiveSummary, Draft, 1993.

Workstations, TCP-IP, andconnection to the Internet.

2. RDBMS and 4GL applicationgenerator including a WaterInformation Management System (forcurrent and historical hydographicengineering and laboratory data) andDrawing Retrieval and ManagementSystem (for all CADD projects andfiles).

3. Facilities information systemsupporting a "seamless" geographic(graphic and non-graphic) map for theentire water district (3,900 sq. km.),including asset accounting andmanagement. The supporting database relates property polygons viaparcel identifiers to associatedproperty address, ownership, rating,values, servicing, water consumption,and meter records. Utility elementsbelonging to particular classes such aspipes, manholes, pump stations,mains, stop valves, hydrants, flowmeters, etc. are related to theappropriate asset. An interestingquandary recently presented itselfwhen, compared to all of thiscoordinated and accurate data, a fenceline was found to be physically off byseveral meters. The original ,andnow old, land surveys are maintainedby another agency and no protocolhas yet been established to reconcilethe differences.

4. Computer aided design and draftingproviding an integrated 3D graphicsenvironment for civil, mechanical,electrical, surveying and generalengineering design and drafting.Applications include digital terrainmodeling, electonic field datarecording, major works, site layouts,dam, reservoir, road, pipeline design,,automated reticulation (pipingnetwork) design and survey set out.

5. Document image processing systemfor the scanning, storage andmanagement of existing plans anddocuments as raster images on optical

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"Business is War"

laser disk. The GDWB level ofservice for remote offices has alreadyrisen from the days of shipping ofdocuments to 30 second delays forimages. They are able to determinecenterline of all underground assets(piping, valves, manholes, etc.)within ±2mm with photogrammetry,and ±.3m with digitized drawings.

6. Word processing/office automationlinked with sophisticated desk toolsacross the organization.

Currently the GDWB is working ontransferring all financial and administrativesystems from the System/38 to UNIX byJul94. Other projects include HRmanagement system by Nov93, a laboratoryinformation management system by Dec94,and total asset management strategy byDec95. A project for "workflow"management is being piloted by Jun94, as theGDWB moves from being competitive tobeing proactive.

Today the computer facilities include 8 SunServers, 124 Sun Workstations, 120microcomputers, 40 terminals and the soon tobe retired IBM System/38 Model 700.

Comparison and Conclusion:

Borrowing from the motto "Business isWar", these different organizations share:

1. A common sense of purpose:to prevail through flexibility.

2. Have common characteristics that inspiresuccess:leadership and vision.

3. Are moving to integrated, flexible,adaptable open systems:by being adaptable and pro-active.

The U.S. DoD 2025 is working hard toprovide end-to-end integration while movingaway from isolated and dependent toindependent yet integrated systems. They aredriven to be able to know, decide and actfaster than their enemy at every turn. They

are working to be able to operate inside theiradversary's decision circle.

Fisher & Paykel has developed a frameworkwithin to fight their battle plan which is toidentify problems, identify the critical issues,and then resolve them as quickly as possible.They are building an information systemmodel for a generic production division, andhave been able to leverage efforts towards"Open Systems" through standardisation.Their movement towards using an opensystems model has been a step by stepapproximation rather than a one capitalinvestment.

Geelong District Water Board is driven by thevision to provide the best customer service inthe Australian Water Industry. (Of course, thepossibility of privatization needs to also beanticipated.) Their focus demandscomprehensive, integrated, accurate, andreliable data about assets and performance tobe made available and maintained, hence theirheavy reliance on IT and on open systems.

As the merging of the media,communications, consumer, and computerindustries accelerates, the computer industrywill increasingly face the inevitability ofhaving to rely on the standardisation ofinterfaces, protocols, and formats. If theydon't, then standards of the adjoiningtechnologies will become dominant bydefault

Bibliography:

[01] Apache shows off its digital data skills Jane'sDefence Weekly 15 May, 1993, p. 10.

[02] Army prepares for non-lethal combat AviationWeek & Space Technology May 24, 1993, p. 62.

[03] CL-227 Sentinel unmanned airborne SurveillanceSystem Aviation Week & Space Technology May31, 1993, p. S15.

[04] Computers, Sensors Boost Gunship LethalityAviation Week & Space Technology May 3, 1993,p. 46.

[05] DoD studies impact of 'military revolution Jane'sDefence Weekly 12 June, 1993, p. 25.

[06] EMP Weapons lead race for non-lethal technologyAviation Week & Space Technology May 24,1993, p. 36.

[07] Fisher & Paykel Industries Limited Annual Report1992 78 Springs Road. East Tamaki, Auckland,New Zealand.

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"Business is War"

[08] Fisher & Paykel Industries Limited CompanyProfile p. 17.

[09] Friedman, George and LeBard, Meredith TheComing War with Japan (1st edition) New York:St. Martin's Press, 1991, p. 30.

[10] Gauging U.S. Military Requirements in 2025Aviation Week & Space Technology November 30,1992, p. 68.

[11] Generic Command Center Speeds System DesignAviation Week & Space Technology March 8,1993, pp. 52-53.

[12] Industry Outlook Aviation Week & SpaceTechnology May 17, 1993, p. 19.

[13] Infotech Advances Hinge on Deregulation AviationWeek & Space Technology May 31, 1993, p. 102.

[14] Jeremiah, ADM David, Speech delivered to theIndustrial Base Symposium, NDU Washington DC,7 April 1993.

[15] Jeremiah, ADM David, Speech delivered to theLongrange Forum Symposium, NDU WashingtonDC, 9 September 1992.

[16] Jeremiah. ADM David, Speech delivered to theSecurity Affairs Support Association, Arlington,Va., November 5, 1992.

[17] Micro-machines hold promise for aerospaceAviation Week & Space Technology March 1,1993, pp. 36-37.

[18] New Ships Carry UAVs Aviation Week & SpaceTechnology July 12, 1993, p. 24.

[19] Out into the blue Jane's Defence Weekly 12 June,1993, p. 92.

[20] Providing Customer Service with IS. - A User StoryGeelong District Water Board Information SystemsDivision May, 1993.

[21] Sea Shadow Eludes Radar Aviation Week & SpaceTechnology May 3, 1993, pp. 43-45.

[22] Signature reduction key to A-10 survival AviationWeek & Space Technology June 7, 1993, pp. 135-137.

[23] Smartdriving with client/server ManagingInformation Systems August 1993, Client/ServerSupplement pp. 12-14.

(24] U.S. Navy Unveils Sea Shadow Stealth VesselAviation Week & Space Technology April 26,1993, p. 23.

[25] USN sets for ACDS Block 1 Jane's Defence Weekly15 May, 1993, p. 25.

[26] -Vision- Geelong District Water Board ExecutiveSummary, Draft, 1993.

[27] War Breaker I&P project aims to cut strike cycletimes Aviation Week & Space Technology June 7,1993, pp. 151-153.

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