SMART Seminar: The Information Organisation: An Infrastructure Perspective

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Dr John Beckford of Beckford consulting delivered this seminar at SMART Infrastructure Facility on January 29, 2014.

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SMART Seminar: The Information Organisation: An Infrastructure Perspective

  1. 1. The Information Organisation: An Infrastructure Perspective Dr. John Beckford The SMART Institute University of Wollongong 29/01/2014
  2. 2. Dr. John Beckford PhD, MMS, FCybS, FRSA • Consultant – – – – HM Treasury, BIS, DeFRA, DfT Northumbrian Water – Asset Management Strategy and Systems Railway Safety & Standards Board – TRaCCA2 Core Cities – Data and Information Sharing • Visiting Professor – STEaPP, University College London – Centre for Information Science, Loughborough University • Author – Reports to Government on Infrastructure Systems – Quality, Routledge, 2010, 3rd Edition – The Information Organisation, Routledge, Forthcoming
  3. 3. The Information Organisation • If you always do what you have always done, you will always get what you have always got! Mark Twain • Madness – keeping on doing the same thing and expecting a different result Albert Einstein
  4. 4. The Information Organisation • The Information Challenge • The Value of Information • The Information Organisation – Generating Value – Enabling Value • The Information Factory • Managing Performance • The Infrastructure Challenge
  5. 5. The Information Challenge
  6. 6. The Information Challenge • Infrastructure Context –UK – – – – – Ageing Infrastructure Chronic Historic Under-Investment Privatised – Profit Motive Economic & Performance Regulation Limited Telemetry • Water – – – – – Separation of Underground and Overground Assets Functional Structure Distorting effect - ‘Capex is good, Opex is bad’ Scale – 4500 asset sites, 14000+miles of pipe Challenge – more effective investment, more effective operations
  7. 7. The Information Challenge • Data is overwhelming our ability to process it – BEFORE ‘big data’ happens! • Organisational revolution since the 1940’s has been technological not informational • Stupendous growth in ability to process, retrieve, store, transmit data • Making effective use? Wombats are quicker! • Too much data, not enough information • Dysfunctional organisations rooted in historic structures – Centralising, bureaucratic, unaware, internally focused • Information IS the organisation.
  8. 8. The Information Organisation
  9. 9. The Information Organisation
  10. 10. The Value of Information
  11. 11. The Value of Information • • • • Information is valuable Investment in infrastructure, software and hardware is treated as a cost Benefit of information not measured! Water Utility – IS budget, £10m Capital, £12m operations – benefit – unmeasured! • Logistics – Realisation of value of Information saved £4m+ per annum through better decisions • What is: – – – – – The value of a happy customer? The value of time in the market? The true cost of failure? The true benefit of failure prevention – think infrastructure & utilities! The systemic organisational measure of productivity as opposed to the silo? • Paper manufacturing - +30% in output through optimising whole system performance - £105m per annum
  12. 12. The Information Organisation • ‘The purpose of an organisation is what it does’ (Beer, 1985) • Consists in two principal interacting parts – A Value Generating Organisation – A Value Enabling Organisation • Value?
  13. 13. The Information Organisation Water – Extraction, Treatment, Distribution - Region One Sewage – Collection, Treatment, Disposal – Region One Generating Value Customer Services (inc Billing) Water – Extraction, Treatment, Distribution - Region Two Sewage –Collection, Treatment, Disposal – Region Two
  14. 14. The Information Organisation Enabling Value Senior Management Finance HR Marketing Engineering
  15. 15. The Information Organisation Enabling Value Senior Management Water – Extraction, Treatment, Distribution - Region One Sewage –Collection, Treatment, Disposal – Region Two Finance Water – Extraction, Treatment, Distribution - Region Two HR Customer Services (inc Billing) Marketing Generating Value Engineering Sewage – Collection, Treatment, Disposal – Region One
  16. 16. The Information Organisation Market Corporate Strategy Enabling Value Senior Management Water – Extraction, Treatment, Distribution - Region One Sewage –Collection, Treatment, Disposal – Region Two Finance Water – Extraction, Treatment, Distribution - Region Two HR Customer Services (inc Billing) Marketing Generating Value Engineering Sewage – Collection, Treatment, Disposal – Region One
  17. 17. The Information Organisation Market Corporate Strategy Enabling Value Senior Management Water – Extraction, Treatment, Distribution - Region One Finance HR Customer Services (inc Billing) Marketing Generating Value Engineering Sewage – Collection, Treatment, Disposal – Region One Water – Extraction, Treatment, Distribution - Region Two Sewage –Collection, Treatment, Disposal – Region Two ‘Senior Management’ only exists to enable Value Generation to work! Does it add value?
  18. 18. The Information Organisation • Generating Value
  19. 19. Information Organisation Process Inputs Process or Operation Outputs © Beckford Consulting 1991 - 2010
  20. 20. Information Organisation Process Tasks Process or Operation Inputs T T Outputs T © Beckford Consulting 1991 - 2010
  21. 21. Information Organisation Process Inputs T Tasks Procedures Process or Operation P P P Outputs T P P P P P T P P P P P P P © Beckford Consulting 1991 - 2010
  22. 22. Information Organisation Inputs Materials Energy Cash People Behaviour Data Process or Operation Outputs Materials Energy Cash People Behaviour Data © Beckford Consulting 1991 - 2010
  23. 23. Information Organisation Information for Decisions Measure Output Modify Input Inputs Process or Operation Outputs © Beckford Consulting 1991 - 2010
  24. 24. Information Organisation Measure Output Modify Input Process or Operation Inputs T P P P Outputs T P P P P P T P P P P P P P © Beckford Consulting 1991 - 2010
  25. 25. Information Organisation Direct Relevance: Did the actual (current) output of the process equal the desired output? Desired Current Measure Operational Performance Modify Inputs Manager Work Outcomes Process © Beckford Consulting 1991 - 2010
  26. 26. Information Organisation Contextual Relevance 1: Did the actual (current) output of the process equal the needs of the market? Market Desired Current Modify Inputs Process or Operation Manager Measure Operational Performance Outcomes © Beckford Consulting 1991 - 2010
  27. 27. Information Organisation Management D Desired Current E Inputs Outcomes Process Information to modify this process 28 Copyright 2004 John Beckford
  28. 28. Information Organisation Management D Desired Current E Inputs Outcomes Process Information to modify this process Information to modify tasks and procedures 29 Copyright 2004 John Beckford
  29. 29. Information Organisation Management D Desired Current E Inputs Outcomes Process Information for the previous process Information to modify this process Information to modify tasks and procedures 30 Copyright 2004 John Beckford
  30. 30. Information Organisation Management D Desired Current E Inputs Outcomes Process Information for the previous process Information to modify this process Information to modify tasks and procedures 31 Copyright 2004 John Beckford Information for the next process
  31. 31. Information Organisation Management Information for the Boss D Desired Current E Inputs Outcomes Process Information for the previous process Information to modify this process Information to modify tasks and procedures 32 Copyright 2004 John Beckford Information for the next process
  32. 32. Information Organisation Management Information for the Boss D Desired Current E Inputs Outcomes Process Information for the previous process Information to modify this process Information to modify tasks and procedures 33 Copyright 2004 John Beckford Information for the next process Vital to discriminate those things controlled HERE from those things controlled ELSEWHERE!
  33. 33. Information Organisation Management Information for the Boss D Desired Current E Inputs Outcomes Process Information for the previous process Information to modify this process Information to modify tasks and procedures 34 Copyright 2004 John Beckford Information for the next process Vital to discriminate WHICH information is being used for what purpose!
  34. 34. Information Organisation Management Information for the Boss D Desired Current E Inputs Outcomes Process Information for the previous process Information to modify this process Information to modify tasks and procedures 35 Copyright 2004 John Beckford Information for the next process We cannot fix the things we don’t control!
  35. 35. The Information Organisation • Enabling Value
  36. 36. Information Organisation Contextual Relevance 2: Did the actual (current) output of the process equal expectations? What ‘enabling’ support is required? Measure Management Performance Potential Desired Modify Desired Current Modify Inputs Senior Management Process or Operation Management Measure Operational Performance Outcomes © Beckford Consulting 1991 - 2010
  37. 37. Information Organisation Measure Management Performance The process ensures that the communication is effective! D Potential Desired Senior Management Modify D Desired Current E Management Measure Operational Performance Modify Inputs E Work Outcomes Process © Beckford Consulting 1991 - 2010
  38. 38. Defining Freedom Senior Management Freedom empowers and constrains Management empowers and constrains Balancing Freedoms Process empowers and constrains Task empowers and constrains Procedure Freedom
  39. 39. Enabling Value: Functions of Leadership creating the future nurturing identity managing the present
  40. 40. Enabling Value: Functions of Leadership where we are going Vision, strategy, business development, renewal and succession creating the future leadership resides at the intersection who we are nurturing identity Allocation and management of resources, optimising performance, delivering results managing the present what we do Purpose, values, behaviours, belief s, policies, standa rds
  41. 41. Information Organisation Creating the Future Future Environment: Market, Society Technology, Customers UKCP’nn’, IPCC Nurturing Identity Managing the Present Market, Technology, Customers Market, Technology, Customers Market, Technology, Customers Market, Technology, Customers Market, Technology, Customers
  42. 42. The Information Factory
  43. 43. The Data Proliferation Engine • How has this come about? – Our ability to process data has increased exponentially – Data is multiplied, often hundreds of times • Email chains? – We put so much time into data processing we have no time left for turning it into information
  44. 44. The Data Proliferation Engine • How has this come about? – Our ability to process data has increased exponentially – Data is multiplied, often hundreds of times • Email chains? – We put so much time into data processing we have no time left for turning it into information • Enablers? – Cheap, powerful devices – Cheap, fast, data transmission – Cheap, easy storage
  45. 45. The Data Proliferation Engine • How has this come about? – Reductions in cost, increases in speed! – It is, relatively, easy to explain and justify grey boxes and bellwire • And they can be admired, polished, depreciated and pictured in the annual report • And they can be fitted into a ‘rolling replacement’ cycle!
  46. 46. The Data Proliferation Engine • How has this come about? – Reductions in cost, increases in speed! – It is, relatively, easy to explain and justify grey boxes and bellwire • And they can be admired, polished, depreciated and pictured in the annual report • And they can be fitted into a ‘rolling replacement’ cycle! – It is, relatively, hard to explain information! • • • • it is, largely, invisible It is difficult to ‘count’ (so we don’t bother) very hard to admire it’s ‘value’ is poorly understood and, after the first report, the audience always wants more – ‘can you make it do……………..?’ – The ‘customer’ is always disappointed!
  47. 47. 150k excel spreadsheets Board Meeting 5000 access databases Exec Group 103 business systems 507 locations Direct 1 to 1s 352 managers Department Meetings 5 regulators Section Heads 9 functions Individual Performance 6 layers Project Reviews Business Review Group
  48. 48. The Data Proliferation Engine Data Coll. EES IMODS Wilco DW InfoNet Project Accounting Matrix AMPS EPM GIS Excel input HR Oracle GL (opex) Account Gen. FA Reg. (Hist£) (capex) MEAV (Cur£) (capex) EG South EG North IS Assets
  49. 49. Beckford’s Law! • Moores Law – processing speed doubles every 2 years – a driver of the growth in cheap, fast machines – we get a lot more bang for our buck!
  50. 50. Beckford’s Law! • Beckford’s Law – Data proliferates as a function of:
  51. 51. Beckford’s Law! • Beckford’s Law – Data proliferates as a function of: • the number of users
  52. 52. Beckford’s Law! • Beckford’s Law – Data proliferates as a function of: • the number of users • multiplied by the number of devices
  53. 53. Beckford’s Law! • Beckford’s Law – Data proliferates as a function of: • the number of users • multiplied by the number of devices • multiplied by the number of applications
  54. 54. Beckford’s Law! • Beckford’s Law – Data proliferates as a function of: • • • • the number of users multiplied by the number of devices multiplied by the number of applications multiplied by ease of transmission (the propagation rate)
  55. 55. Beckford’s Law! • Beckford’s Law – Data proliferates as a function of: • • • • the number of users multiplied by the number of devices multiplied by the number of applications multiplied by ease of transmission (the propagation rate) – Information proliferation is the inverse function!
  56. 56. Beckford’s Law! • Beckford’s Law – Data proliferates as a function of: • • • • the number of users multiplied by the number of devices multiplied by the number of applications multiplied by ease of transmission (the propagation rate) – Information proliferation is the inverse function! • Data proliferation is therefore exponential in volume and frequency
  57. 57. Beckford’s Law! • Beckford’s Law – Data proliferates as a function of: • • • • the number of users multiplied by the number of devices multiplied by the number of applications multiplied by ease of transmission (the propagation rate) – Information proliferation is the inverse function! • Data proliferation is therefore exponential in volume and frequency • Information declines in proportion • Upshot – the more data, the less information!
  58. 58. Beckford’s Law! • And, ‘as evry fule kno’ this: – Answers to the law of second law of thermodynamics – Reflects the notions of entropy (chaos) and negentropy (organisation): • • • • Chaotic systems are higher energy/less organisation Stable systems are lower energy/higher organisation Data is free (unconstrained) energy – generating chaos Information is constrained energy – generating order
  59. 59. Beckford’s Law! • And, ‘as evry fule kno’ this: – Answers to the law of second law of thermodynamics – Reflects the notions of entropy (chaos) and negentropy (organisation): • • • • Chaotic systems are higher energy/less organisation Stable systems are lower energy/higher organisation Data is free (unconstrained) energy– generating chaos Information is constrained energy – generating order – Order is the basis of management – The key to consistency, coherence, performance
  60. 60. Information Projects
  61. 61. Information Projects Understand the information needed to manage the business Business Effectiveness
  62. 62. Information Projects Understand the information needed to manage the business Understand the value to the business of having that information Business Effectiveness Business Financial Performance
  63. 63. Information Projects Understand the information needed to manage the business Understand the value to the business of having that information Business Effectiveness Business Financial Performance Develop an Information Strategy
  64. 64. Information Projects Understand the information needed to manage the business Understand the value to the business of having that information Business Effectiveness Business Financial Performance Develop an Information Strategy Determine what hardware and systems are needed
  65. 65. Information Projects Understand the information needed to manage the business Understand the value to the business of having that information Business Effectiveness Business Financial Performance Develop an Information Strategy Determine what hardware and systems are needed Commission Information Projects
  66. 66. Information Projects Understand the information needed to manage the business Understand the value to the business of having that information Business Effectiveness Business Financial Performance Develop an Information Strategy Measure the Information Payback Determine what hardware and systems are needed Commission Information Projects
  67. 67. Information Projects Understand the information needed to manage the business Understand the value to the business of having that information Business Effectiveness Business Financial Performance Develop an Information Strategy Measure the Information Payback Determine what hardware and systems are needed Commission Information Projects Measure the Value Added
  68. 68. QD08 QD06A Performance Information Finance Tracker ncial Fina and ome ata Inc eD Invoic QD07A , cts spe cts p ro p ro j e es sa l e l i n e pip TES Training C ourses / Jobs Opp ortunities VS Manager Finance Tracker CSCS EP QD07B TES VS Prospects ce an rm tion rfo a Pe form In Cou r se p r o / Jo b info cess r ma tion Procurement Projects TES System QD06B cy an ult ts ns jec Co Pro Finance Tracker Pro p r o j e ct info cess r ma tion Consultancy Proce Project ss info rmati o BusImp, R&D, Corp Serv Business Planning Project process information Procurement Project Tracker Pe In rfo fo rm rm a at nc io e n Pr oc Pr ure o j e me cts nt Pe In rfo fo rm rm a at nc io e n Sales Admininstration Process: Prospecting, Networking KAM, Framework Mgt Relationship Building n VS Developer QD05 N C o e xt Ob rpo FY j e c ra t tiv e es VS Manager ate por Cor jects Pro Finance Tracker Manual Automated
  69. 69. Look into the ‘I’ • Information Systems Redesign (Process Management) Income Generation Processes Products Services Personal Info Corporate Info Training Employment Procurement Jobs Courses Processes Quality H&S Risk Environment Finance Recruit Pay IT Train Facilities
  70. 70. Activity Data VS Manager Process Data Performance Outputs: Business Performance Board SMT Unit Business Streams Individual Business Planning Core Data Flows Core Data CRM Performance Data Finance Tracker (exists) Managerial Data Regulatory Data Finance Core Data & vol, £££, etc Marketing Process Performance Process Level Exists Exists CSCS S1 Rich Data Exists EP Rich Data TES Rich Data Convert from Excel* Project Tracker Rich Data CORE DATA TABLES & APPLICATION SPECIFIC TABLES VS Dev** Consultancy VS Dev** BusImp, R&D, Corp Serv VS Prospects Sales Admininstration Process: Prospecting, Networking KAM, Framework Mgt Relationship Building * Use VS Developer ** Use VS Developer
  71. 71. Managing Performance
  72. 72. The Potentiometer The device for measuring viability
  73. 73. The Potentiometer Capability
  74. 74. The Potentiometer Capability Productivity Actual
  75. 75. The Potentiometer Potential Latency Capability Productivity Actual
  76. 76. The Potentiometer Potential Latency Capability Effectiveness Productivity Actual
  77. 77. The Potentiometer Potential Latency Capability Driving operational improvement Actual Effectiveness Productivity
  78. 78. The Potentiometer Potential Driving strategic improvement Latency Capability Driving operational improvement Actual Effectiveness Productivity
  79. 79. The Potentiometer Potential Doing right things Latency Capability Doing things right Effectiveness Productivity Actual
  80. 80. The Infrastructure Challenge
  81. 81. IS Asset Systems • Critique: – – – – – – Multiple systems (57 in one case) Inadequate Telemetry (esp on Waste Water Systems) Duplication (and more) of data, Hard to store, hard to use Questionable accuracy Inappropriate hierarchy Not optimised to support the business • Lots of demand for ‘better information’ : – – – – – – Does not support ISO55000 Not aligned to Business Processes Not helpful to maintenance and operational management Inadequate for capital planning and investment delivery Increases workload for data users Not supportive of BIM
  82. 82. Asset Management Strategy • Whole Life Asset Value Management – supports ISO55000, BIM – Reduce totex over time • Reliability Centred, Adaptive – Driving Up Overall Performance, Driving Down Overall Cost – Manage the whole as a network NOT as a set of independent parts • Build, Maintain and Operate all assets in a manner which meets the business objectives • Generate appropriate information to drive fact-based decisions at all levels • Eliminate Rework, Minimise Unplanned Work, Maximise ‘first time fix’ • Multiple approaches, appropriately informed – Reliability Centred – Blending Break fix, Condition based, Time based
  83. 83. Scope Utilisation Disposal Business Objectives Asset Management Strategy Asset Planning Investment Delivery Maintenance Operations Data Integrity & Utilisation Asset Related Information Asset Hierarchy Organisation, Structure, Processes Data Integrity, Information Aggregation Procurement Pas55 BIM FS CC
  84. 84. Leading Enterprisewide Asset Management Regulatory Requirements Shareholder Expectations ARI BIM ISO55000 requires Business Drivers informs Asset Management Strategy Business Performance drives Asset Performance drives Asset Performance Data Capital Asset Projects Investment Performance Asset Financial Data Asset Operations Operations Performance Asset Data Asset Maintenance Maintenance Performance F S C C
  85. 85. Business Benefits • Optimised Performance for Customers • Optimised Management of the Network • Optimised across: – Capital – Maintenance – Operations • Target Benefits: – Capital £50m per annum, Operations £5m per annum
  86. 86. The Information Organisation • The Information Challenge • The Value of Information • The Information Organisation – Generating Value – Enabling Value • The Information Factory • Managing Performance • The Infrastructure Challenge

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