HomeMy WebLinkAbout0346.091,-
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1uly 3, 1991
The Honorable City Council
Palo Alto, California
Utility Rilling System ApplicatioD Requinmtenls
Members of the Council:
R=rt h! Brier
This is an informational repcrt and does Dot require Coun.."il action. This report completes the
technical analysis pbase of the Utility Billing System review as approved by Council in March 1991,
and informs Council of staffs intention to move ahead with issuing a Request for Proposal (RFP)
to renovate and augment the current Utility Billing System. Staff will return to Council with
purchase recommendation and request for funding appro\'al,
BacWg"d
In 1990, the Utilities Department staff initiated a Utilities Billing System (UBS) Project to find
ways to improve the effidency of the existing system. After compieting a non-technical user needs
survey, the 1990 Utilities Billing S}"em Project Phase I report was produced whicb rerommended
that Phase II of the VBS project be undertaken to prepare a technical needs analysis, On March
11, 1991 Council approved a staff request to hire a contract senior programmer/analyst for six
months to allow the IRD Supervisor of De'w'elopment to lead the Phase n technical analysis project.
Subsequently the Application Requirements Definitions (ARD) Committee was formed, including
members from the U1tlities, Public Works, Finance and City Auditor Departments, to prepare a
Utilities Billing S)"tem design that could be used to prepare a request for proposal document The
ARD Committee began its mission by doing a user survey on speci£c features that snould be
included in a future UBS, Upon completing the features check list (see Appendix B), the ARD
Committee compared the CUlTent UBS against this list. The Utilities Billi.:lg S~tem Application
Requirements Definitions and RecomInendations report provides the findings., conclusion, and
recommendations on the future UBS needs.
Fjndings DB Cumnt UBS
As a part of the Utllities Billing System (UBS) technical analysis, the Application Requirements
Definitions {ARD) Committee prepared a features list of eS5elitial, desirable, and optionaJ
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desirable and 20% of the optional requirements are being met To determine if mere are
comn:.erciaI systems aYallabTe that would mc-..-et the requirements. a Request For Information (RFl)
was sent to selected vendors. The Committee luis learned that other UBS subsystems with the
require<3 features are currently available in the market place.
The features li5t (Appendix B) consists of gener.! 'i'tem, security. and audit requirelDenL' which
applied to all City computer applicatioos and the four maior functional are .. pertaining to UBS.
The four functional areas are: ca..b posting (revenue collection and accounting). file/data bose
maintenance, bill production and information management. For ',:!a.r'.fication of the proce.£.<;., flow
charts have been provide d in A;>pendi< A.
Although the existing core UBS is not as efficient nor user friendly as staff would like. basic
functionaUties are tbert\ The current UBS, however, requires a high degree of manual rontrot and
staff involvement tn keep it functioning properly. The growing need for information, mandated by
differenl outside regulatory agendes and consumer law5,. is not being met under our current L'BS.
This is mainly due to tbe lack oC required resources such as computer hardware, softw~.re tools, and
development staff. The gap between required resources and required features is v--1denlng and the
potential for a crisis exists with each new mandated program.
The current UBS is 20 years old. Without the necessaty mode mization and re novation tha: systems
now in the market have. the City will face continuing deterioration of system reliability and
integrity. The City has already committed to modernize the financial applic-ations (IF AS and
PayroD/Human Resources). the same needs be done for the revenue-generating UBS. A
respomive UBS "hill reap the benefits of facilitating the utilities revenue collections, enhancing
productivity of this labor intensive application. improve budgeting. forecasting. and rate analysc ••
and nurturing good customer relations with. ratepayers. AdditioMl resources are e~otial for the
current acd future needs of the lJBS.
Following is a detailed description of the ARD Committee fmdings, categorized in five areas:
1. Scxwe of the current 1 illS Was too narrowlJ: defined.
The technical analysis showed that the ClUTent UBS was built approximat.1y 20 years ago with the
primary emphasis on the accounting needs. Its main goal was to automate the Billing and Accounts
Receivable (AIR). Over the years many utility billing related programs have been added to the
UBS. In addition, the increased needs of the Utilities Department to rely on ille DES to control
input, 10 streamline operations, and to provide information to management for decision support,
has become more important.
Inadequa1e resources are adversely hampering efforts to achieve these new goals. In some cases.
the City has paid penalties for delays-and insuffidenl information provided to outside regulatory
agencies,. and has bad to hire contractors to meet [bose needs. With no readily available and up-to
date htstorical data, forecasting and planning of utIlities resources are conjectures and customer
requests for sucb infonnation is delayed an d is time consuming to address.
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In s},ort, the current UBS is too narrowly focused, We need the seope of the UBS e"Panded not
only to satisfy all the City's internal needs (from the Finance, Utilities, Public Works Departments
and the City Auditor), but also to comply wit!> outside regulatory agencies (California Energy
Commission, Northern California I'''wer Aseney, Regional Waste Water Management Board,
Regional Integral Waste Management Board elc,) and customer information needs.
2. System Integration.
The technical analysis also pointed out Loat due to IRD resource coll5tramts with respect to a
shortage of programming staff in the applications c.evel\)pment unit, Utilities has had to provide
resources to hire contractors to write subsystems or to purchase new subsystem...;, to satisfy its needs.
Those subsystems should conform and be compatIble with the core UBS, but in some instances
there has not been perfect integration -with the core UBS. Prime examples are the Demand
Electric, Loan, Refuse, Sa1es Analysis and Meter Reading Route Management subsystems.
Problems in these areas result in eroa time and effort spent by IRD 10 identify problems and
correct the programs. It also requires the Utilities Customer Service Center to perform more
manual tasks to synchroniz.e bilJi.'g transactions between the core UBS and the su~tems. lzt
year a problem in the Demand Electric subsystem caused serious delays in billing major customers
and eroded customers confidence in the overall UBS.
3. GrQwini' RoJe of Information Manaiement.
The user survey portiO" of the technical analysis poinled out that a complele UBS should be able
to capture a full spectrum of data to sati.fy management's needs for decision support. From the
information OD rustomers billing. accounting. occupancy, and property to the inIonnation on ea<:h
uulity, this wealtb of information can be used in improving Utilities customer service and field
operations, forecasting future resource needs, ratemaking analysis, projecting revenue and income,
and as part of the City's overall geographic information system (GIS) data base,
The current lJBS has two prob!ems in this ar~a. One problem is that there is not enuugh computer
hardware resources to store the needed information for the required 1ength of time (tw'o years
on-line plus five more years in archive). Thus, the deII1M.d for wiormation ~ceed:. the available
disc and memory capacity. The other is that we do not have modern SQ~<ue tools to organize.
retrieve. and update the information efficiently.
Since las:. year a better end-user interface and report generating capability has been aVaIlable to
users with the acquisition of HP 3000/lNFO-ACCESS software, But ""en with this new software
tool the underlying data hase and transaction processing technologies are old and do not work
efficiently_
By acquiring Relational Data Base (RDBMS) and On-Une Traru3.;tion Processing (OLTP)
tecbnologies, the application developer (programmers) can be more productive, and the user
reporrlng/vi"win&/updating of information can be don. in a much simpler manner. Also, as part
of the overall solution, the archiving information can be stored and retrieved more economically
and efficiently with the latest advances in lrnag[ng system (documentation processing).
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4. The Need (or Automation.
A cons\Bll1 theme in the technical analY"is, whicb concerned the ARD committee, was th,.t the
current UBS depends upon a bigh degree of timely manual intervention 10 operate properly while
at the same time the Sy5tem is becomi.llg more and more compl.ex to maintn The credit and
collecrion program is to a large extent manually monitored. When IRD's priorities were shifted
to implementing De" Co>,mcil mandated programs suell as Ille Uoilties Usus Tax, Water Rationing,
and Storm Drainage Uouty, lRD was unable to implement other required operational changes.
Some of the .. requirements, suell as corrected billing capability, could make the Uulities operation
more efficient. Furthermore,. when there is an error On the bill statement, the service
representative bas to manually recalculate charges, make adjustments and retype the bill statemen~
Another example of inefficient operation is the Utilities meter installation/removal/excnange
program. There. is DO subsystem link to the current UBS to record these activities. There can be
problems with redundant da,a enay in !be meter sbop~ engineering office, revenue oonections
and/or business office -data entered incorrectly. or simply missed completely in the records
routing. This results in unbilled cbarges (revenue) 10 the custnmer since the meter is not accounted
for in Ibe UBS.
There are approximately 5,000 inp"t transactions (2,000 payments/adju,tments/deposit.o;, 1,500
file/data base update, and 1,500 meter readings inP"t) to be prepared daily. The routine controL
research, correction, and data entry processing demands dose clerical attention. Other tasks
performed due to Jack of automation will put an additional burden aD the already beary workload
of the Utilities Customer Service Center.
5. Documentation and ITajnin~.
The technical analysis showed documentation and training to be a major weakness. The current
UBS contains more than 200 software. programs. There are OVer 500 data iJ.ems just in the Utilities
mas1er file. There are more than 30 reports produced dally from the UBS. In order to understand
and work with the UBS, training is essential. and docurnent4tion is required for training.
Documentation al>c can be used to reoord any changes (poticy(program(procedural) in the VES.
There is minimal user documentation today. and IRD ~ had to contract a programmer to cover
day-t.o-day activities when IRD staff does training of utility customer s.ervice representatives or
other utitity staff.
lRD application development staff spends most of their time on designing. prograJnI:1ing. corrocting
defects and testing of the UES. Time is unavallable to p<rform sucb tasks as technical writing and
training. TIle decision was made prior to 19801 by Council.. not to .add a technical writer to do user
documentation.
lhe ARD committee found. through the RFI process review. that Computer .A\jded System
Engineering (CASE) can be acquired to automatically create documentation during the system
designing phase. Computer Based Tr.uning (CBT) could be 'JSed to satisfy training needs, but it
still requires lRD applk:ation development staff to prepare the course materials.
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Ootinns
As part of the study, the ARD committee reviewed the followi.ng options to meet the !leeds
adclr.ssed under Section D; Findings:
Option 1 Rcplacemcn t
Purchase a new UBS from a third-party 'Vendor. The syste m would include hardware
and softYl'are 'W'ith cusloIL.ized modifications and maintenance done by the vendor. In
house staff would perform the daLii conversion and installation of future so[!\WaTe
updates provided by the vender. This option requires tha.t the City depend on oUl<ioide
vendors or consultants to implement future changes to the system. This option, unlike
Options 2 and 3, would not require hiring additional full-time staff.
Although replacement with third-party software can be an effective metitoo ior
regulating programLTIing staff growth, it creates cost and timing problems in an
environment of dynamic, ever changing re quirements. In meeting tbe constantly
changing reporting requirements of regulatory agencies, council mandated changes, and
Utility Department management information nee Os, this option could be very costly.
As staff has learned vendor or contractor modifications can be expensive and
modific~:tions may be delayed due to requirements of the vendor's other clients. The
risk of a longer data conversion process i51tlgbe~t under this option.
Option 2 Renovation and Augmentation
Under this option, the "core" software program of the current UBS would be retained
and augmented with ne'" hardware and software. The core programs consist primarily
of ten batch prognuns to perform the most essential accounts receivable and billing
functions. This option would enhance the functionality of the current UBS through the
purchase of titird-pmy subsystem software and program source cooe which would allow
in·house staff to contro~ modify and maintain the system. Owning the program source
code would also allow in·bouse staff to interface the UBS with the other financial
Sj"erus such as IFAS, Payron and the future Work Order Sj'stem. Th;s option would
allow the City to purcbase the best enhancements en the market wl:ile retaining the
flexibility to modify the system to meet the City's needs and to provide technical
assistance direct1y to the user departmenl'io. This option would require IRD to hire a
fun time programmer to work on the selection, modification. interfa,e and maintenance
of the new subsysteras.
Option 3 In-house DeveJQpment
Another option dL">CUssed was the develO)lment of a customized UBS sys.tem written
from scratch by in-bouse programmir.g staff and the purcbase of new hardware and
operating system software. IRD evaluated the needs assessment completed by the ARD
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committee and determined that writing the system in-bouse would require three to {h'e
years to complev. I and would require the hiring of two full time programmers during
that time.
!lased on the findings from the technical analysis of the current lIBS, these are the final prognoses
.od solutions to improve the UBS:
1. Will! the elimination of. programmer/anaJyst position that supported Un1ities in 1988, IRD
has not had tbe sta£fin8 resources to maintain Il!e existing system and to meet Ibe ongoing and
growing information needs of the UBS and Utilities staff.
2. The UBS is 20 years old and was created/programmed in a computer en.ironment !l!at cannot
be improved effectively to support current and on-going needs.
3. Taking a piecemeal approach to manage resource problems with contractual services and
independent software programs maintained by vendors outside the City"s control. will continue
tIJ create integration problems between progr.uns,. and willli..mjt the ability to cross-!l.hare and
extract information.
The underlying teclmology of the current VBS bas not changed in 20 years. The current UBS
needs to be re-engineered with modem teclmologies like On-lbo Transaction Processing (OL TP),
Rel.tional Data Base Management System (RDBMS), Fourtb Generation Langoage (4GL),
Computer-Aided Software Engineering (CASE), Computer·Based Training (CST). Imaging
Processing, and Uliing an indUlitry standard operating system like UNIX to carry the UBS into the
future. At the same time. a new UBS needs to address many of the cnrrent needs such as real-time
information access, user friendly tasking. keeping required data fo< a longor length of time, training.
documentatkm, etc. The source code for some of the missing features can be purchased from
outside vendar> and modified in·bouse to enhance the UBS effectively without long lead
development time. Such features wou~d then be incorporated as part of the new UBS at an
appropriate time. AIl these features and technologies are currently aVaIlabJe in the marketplace
for • price ranging from S15O,OOO to S500,OOO (including source code. hardware, and software).
Funding for a now UBS would cume from Ibe Utility Operating Budget and Utility reserves. This
would have a negliglble effect on rates wbich generates approximately $120 million annually.
The ARD committee believes tbe most cost-effective solution to be Option 2: Renovation and
Augmentation. The acquisition of new computer resoun::es (hardware and software) with the
program source oede 10 be modified by in-house staff, and with adequate staffing to implement a
new UBS under centralized project management from IRD, will build a solid platform for the
future and meel the ne.,ds and objectives identified. Constantly changing reponing and billing
requirements., law changes, out-side agencies requests. etc. will necessitate a high degree of program
modification and adaptability of the City's specifications. Such n<.cds will best be met through the
process of users working with programmers on a dally bas.is.
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'The ARD Committee concludes that the purchase of a new platform including hardware and
software and some new UBS features (sou!'cc code) to ~~mplement the current rore UBS will meet
the needs as identified in the feature list in Appendix B. However. the new UBS still can not meet
expectations if staf£.n.g resources are Dol committed to malrl~ the UES work as a total integrated
application. A realistic as...."t:ssment by IRD of !hI! staffing re-quirements and priorities indicates the
need to bire a full-time programmer,
The ARD Committee-selected Option 2 for a number of rea.soru~
Best lOeets the application features, concerns, and functional requirements expresse.d in the 1990
UBS Report (Phase One).
Most cost-.effective solution for the UtIlities current and future needs.
Through the use of a DeW platform like Unix, accommodates future growth and integration of
new programs.
Owning the source rod. allows staff to provide easy and timely access to billing data and to
create special reports as required.
Utility Customer Services effectiveness v.ilJ be impr()\o'ed allowing time saved by staff to be
redirected to activities that are more customer oriented.
The billing system is the main support of the utllities customer services. The UBS serves the City's
customers in the most direct way. Information infrastructure is just as important as other utilities
infrastructures. A good billing system is an invaluable management decision support tool to
forecast, plan, and serve the current and future un1ities needs.
With the completion of the tech!:tical analysis of UBS, the ARD Committee is ready to move ahead
to renovate the current UBS .system using a five pbase plan over a two to three year period as
follows:
Phase 1
Phase 2
Phase 3
Phase 4
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Issue RFP as defined ender option 1. (3 months)
Return to Council for funding approval of purchase recommendation. (1 Month)
Purchase source code (new UBS features), computer hardware, ,and software;
assemble system and obtain trainin~ bring system on~line. (6 months)
Build data bases and tran.~feT user accounts and data to the new UBS~ begin an
on-line display and report generation from the new UBS platfonn; transfer core UBS
to the new platfonn and integrat..:: the purchased source code (new UBS features)
with core UBS. (12 to 16 months)
Perform parallel testing oIl1ew and c:urr<:nt UBS for at leas! wee billing months;
discontinue use of O.LITe"! UBS after the ""'" UBS is SllccessfuUy tested. (3 to 10
mollths)
Respectfully submitted,
~~.Q~
Roland Lun
Supervisor, Data Pro<essmg Direaoc, Information RI!50urocs
~~ :;(Jfr~7J'-
~bard Young {/
Olrector, Utilities
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W. Randolpb BaIdschun
Assistant Dir Utl1ities
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V.APPENDIX
" UTILITV BILLING SYSTEM GENERAL FLOUCHART
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Z-Esaential D-Desirable O=Optional
A=Available K=Hodifiable H:Not available
I. GENERAL SYSTEM REOOlBEMEtITS
B
II
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B
E
B
Ability to integrate all City's utilities billing
funct i on s in th e sallie UBS ..
Ability to bill an account ~ith all its utilities
services (W/G/E/S/R/SO) and ~elated p~og~ams (e.g
loan payments, users tax etc.) on the same monthly
bill statement.
Ability to drive more than 20 on-line terminals or
I'Cs.
Provide city with the object and source code.
Allow city's in-house programmer$ to perform
system enhancement.
Ability to have all input data edited and available
for on-line review and correction by authorized
users.
Extensive use of external program tables ~ith
on-line table maintenance capability. Use table to
set-up current run time parameters {e.q. billing
date 6 period, late payment penalty olf 6 rates s
etc.) •
Extensive use of client-server computing environ
ment: up-load and down-load data-base/files
informati~n to the IBM compatible Pes (Kicroso~t
DOSjWINDOW) with secu~ity clearance.
Ability to interface with City's GISjGEO and
Financial Data base (IFAS).
B Non-impact, high resolution, high speed printing
of bills and notices ~ith user friendly forms
creation and modification capabilities.
E Ability to give early warning/detection of s:{stem
problems and/or erroneous bills.
E On-line terminal response time of five seconds or
less.
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E complete system and user application documentation.
E Input control and daily balancing is automated and
under user control.
E Processing modes include on-line real-time input/
update and deferred batch.
E All software is written in COBOL and/or a lIore
effi~ient fourth qene~ation lar.quage, using data
base management and indexed sequential file access
technoloqy.
E User has the following options when requesting
reports:
Lengthy reports can be executed and printed
during non-pEak hours.
Ad-hoc committee type and £hort reports can be
executed and displayed/printed immediately.
E Enough data storage to hold seven years worth of
billing information, three of the mast recent years
needs to be accessed on-line.
E Ability to print bills/notices/reports on remote
site printers.
E Enough resources (e.g. disc storage, memory si~e
etc.J abla to perform parallel testinqs for system
enhancements/updates.
o Usar friendly on-line help and comprehensive
tutorial training.
D System features are menu drive~~
D Unattended computer operations may b~ monitored by
local/remote lap-top or desk-top PCs (Personal
Computer) •
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II. GQfERAL SECURITY' AN? AUDIT
A :II :II
:s Siqn-on password security is required ar~d essential ,/
tor the City.
E Providing easy recovery and back-up methodes) for
disruptions and/or disasters.
B Ability to perform on-line real-time transactions
loqqinq of data bases/fil~s; roll-back and/or roll
-forward data bases/files for disasters recovery.
E Ability to disable sign-on on all or individ~al
users and ports.
E Ability to time-stamp all transaction with user ID.
E Providing security control according to:
Multiple se,=urity levels, from user group level
all the way down to the data item level
Location
Ter~dnal type
'lime
Transaction type
E Minimally providing the followinq audit trails:
reports on all transactions, include transaction
user id, time stamp and summarized each
transaction by types~
Pre-posting edit and error{s} reports
Data base/tile update detail repo~s sho~in9
content of affected data item with it's before
and after image.
Report on run-time parameters.
before and afte~ balances/totals if number
invclved.
General Ledger (GL) and GEO data base interface
reports.
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E Ability to retrieve seven years' billing
inforaation for auditing purpose from on-line and/
or archive data storage.
o Able to qenerate audit reports (age-trial balance
etc.) and mailing labels (to s.end. O'!.lt confirmation
letters etc., for outside auditors.
D Ability to cross check between utilities master
file end meter inventort file, county assessor's
file, surveys files etc. to ensure all services
being provided have been billed for properly.
o Provide a report of all sign-on attempts, success
ful and unsuccessful.
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III, CASH poSTING
B Ability to accept bulk payments either from magne
tic medium (maq-tape, floppy disk etc.J or direct
data transmission from remote site ~ith trans
mission error checking/correction capabilities.
• Ability to have all a~justment input data edited
and available for on-line reviev, correction before
postinq.
B Ability to post adjustment{s) real-time on-lir.e
and reflectinq new balance in the account.
E Ability to batch process payments, adjust~ents
and deposits in bundles ~ith b~dle control for
total, squrce 1D and date check.
B Adjustments made to W/G/E consumption will correct
c~rrespondinq charges automatically, both current
and historical.
Ii Adjustments made to W/G/E charges 'Will generate
adjustments to utilities user's tax automatically.
and adjus.tm:ent (sJ to user's tax only will re.tlect
on screen
B Provide separate adjustments capability for City
accounts and create GL entries for inter-tund
transfer a
B Ability to generate ana post adjustments automati
cally from corrected bills on charges and/or
consumptions) .
~ A flexible yet straight forward credit follo~-up
sub-system based on overdue amount, time elapsed,
deposit amount, notice type, past credit history
and special circumstances, in addition --has the
ability to deal 'With exceptions authorized by
credit manager/service representatives on-line
(credit screen].
E providing month-end closing procedure for GL.
8 Ability to adjust last 36-month consumptions/charges
history.
E Provide on-line display/printing of paymentsj
adjustments/deposit{s) information break-down
billing periods. -85 -
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E Ability to record customer deposits on real time
basis regardless if they are cas~, C.D, bond check ~
etc.
E Ability to validate adjustments input against
master file for utility type, meter number
if any), charges and consumptions information. y/
E oetail report on transactions and fund balances,
fund halances automatically check against
controlled fund balances in the control file. V'
E Provide last 24 months separate pa}~ents/
adjustments/deposits history of ccstomers
for on-line inquiry.
E Provide un-match payments/adjustments/deposits
report.
E Provide age-trial bolance report.
E provide interface *ith financial data ~ase (IFAS)
by generating GL journal entriss to be applied to
the general ledger'.s general funds and enterprise
funds.
E
E
Ability to apply aeposit to account's outstanding
balance based on credit conditions.
Provide a~Justment type of write-off, transfer,
deposit applied, etc. ~ith the option to be shown
or ~ot shown on customer's bill and the ability to
create new types of adjustments at any time.
E Providing separ~te on-line adjustments data entry
capability for remote refuse operations update
refuse master file automatically.
E Ability to apply payments/adjustments/deposit to
both active and closed accounts in the active and
closed master tiles.
E Ability to display billing information on-line,
consistently agree with the bill that has been sent
to the customers without later-day adjustments~
Also able to display it with adjustments.
E Ability to apportion payment based on individual
enterprise (utility) fund percentages from last /
billings and adjustments. v
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E Ability to generate notices ~y batch and/or on-line v' processinq.
E Ability to track returned cnecks.
B Ability to display information on the 'Re.venue
Collection's Pes (runninq the Xrasott Cash
Receipting subsystem) the same kind of information
~e provide to the Utilities OJstomer Service
Repres.entative.s.
E Ability to provide report/display on monthly total V-of revenue generated rrom the utilities user's tax.
E Ability to provide report/display on year-to-date
total of revenue generated from the utilities user's ~. ~
0 Save rejected adjustments/payments/deposits
transactions on-line for fu~ure corrections.
o Ability to perform on-line data entry on over-th~
counter payments, adj~stments and deposit input.
M
V-
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Provide user with user friendly error cor-rections -/
and approved release capabilities.
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IV. DATA BASE/FILE HAUrrENMCE
B An on-line work order sUbsystem to perform current
or future date close and/or open services: print
service orders on-lin$: after open/close reads are
obtained by meter readerst enter reads and start/
ending utility services~
8 Ability to stop/restart billing on-line on
individual account.
E Ability to create new account(s) on-line.
E Ability to change current or future utilities rates
on-line with security clearance, perform proof runs
and print out new rate schedules tor confirmation~
E Perform real-time on~line update to any data item(s)
in the Utilities/loan/refuse master tiles and GEO
data base but not on any data items which have
dollars and consumptions implications (These types
of updates should be processed by cash posting as
adj"..:lstments) .
E Ability to perform validation during on-line
entry/update on all data item(s) involved
e.g. class coda affec,ts rate, sic code affects
rate, class code affects sic code and vis versa
to eliminate any possible billing c~ror~
E Ability to group functionally related data tields
together on the same on-line screen to facilitate
information display/change(s) (e.g~ mailing
address, transformers etc.) with both current and
neW" information sho' .....
E Daily update of address keys; street address with
multiple utilities accounts can be displayed on a
directory screen with numbered selection to access
account
E An on-line work order sub-system to feed updated
meter installation, removal, and exchanges
information to the billing system. And let
utilities Department's personnel access it oh-line
to keep track the status of the work in progress
(e.g. meter installation incomplete, waiting for
'utility release: from Planning Department,
vaiting for connection charge payments etc.).
Also able to track each meter along its journey
trom purchase, inventory, installation, and
removal.
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" X N E Ability to perform real-ti~e on-line update to the
refuse ~aster file, on bins, yards, frequency,
route, complaints etc. from remote refuse
operatior.s~ V
E
E
E
E
E
E
E
E
E
E
Ability to enter special charges and issue credits
from rE:'mote refuse operations.
Ability to perform real-time on-line update to the
~oan master file, create ne .. loan, clos,~ old loan,
amortize/calculate payments, correct number of
payments, issue late-payment charge e~c.
Ab"ility toO perform b-eginning-of-the lI'oonth and 'Weekly
updates to the utilities master file from updated
loan naster files~
Ability to update utilities master file daily from
updated refuse master file.
Ability to update Utilities master file on meter
location, special read instructions, meter sequence,
route sequence and problem codes from Datamatic
up-~oad file. .
Ability to produce meter reading route map report
~ith Datamatic down-loaning.
Ability to produce meter reading problem report for
meter reader and meter shop operations during meter
readinq up-Ioadinq from Oata~atic.
Ability to integrate outstanding loan information
onto the close service order and include final
pay-off amount on the close bill.
Ability to 6top/I:'e-start late payment penalty on
individual account (e.g one time or permanent).
Abilit.y to update storm drainage information on
line including APNS, basin area, impervious area,
Equivalent Residential Unit (ERU) etc.
E Ability to create storm drainage only account(s) ~
on-liTle.
E Ability to update closed accounts status, action and
clerk codes to facilitate collection (e.g~ letter 2, ~
330 day review, estate, bankruptcy etc.)
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E Ability to check utilities master file against GEO
data base t~ perform audit en storm drainage utility
infonnation4
D Ability to perform on-line checking or. any address
entered against the U.S. Post Office's Zip+4 data
base on street name, street type, city and state~
automatic311y retrieve zip+4 information to be
entered in~o the master tiles/data bases.
D Ability to produce report on all today's meter
readinqsl sorted by route and meter se~~ence vith
summarizing totals.
D Ahility to update City's GEO data base from open/
close work order on occupancy information~
D Ability to update CEO data base {rom County
assessor's file when available.
o Ability to perform on-line entry and validation on
national Standard Industrial ClassificatIons code
[SIC) with code explanation shown~
D provide leave-on for owner capability sa after the
tenant/occupant moved the utilities charges (e.g.
storm drainage and electric charges) can be
billed to landlo~d/cwner.
D Ahility to reset industrial customers sewer rate
on-line bas~d on metal concentration.
o Ability to change class code automatically based
on SIC code change
o Ability to enter dumping charges fram remote
refuse dump operation.
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-j
V. BILL PROPUCIIQH
B Ability to bill water u~ility according to meter
size, pressure zone, custome~ class (residential,
commercial, industrial etc.) and type of service
,e.q~ fire hydrant) with sinqle or compound meter
readings.
B .Ability to bill gas utility according to special
meter pressure correction factor, therm factor,
customer class, and type of services (e~g~ r~gular
or interrYptible etc., vith single or compound
meter reading.
B Ability to bill interruptible gas service
E Ability to bill electric utility a~cordinq to
customer cl~ss, meter charge, type of services
(e.g. street light, co-generation deaand electric),
and accept at the minimum three different kind of
~eter readings (KWH, OKW and KQH).
E Ability to bill demand electric custo~ers same as
regular electric customers '.iithout any additional
A X ..
manual procedures other than more readings need ~
to be obtained and Checked ~
E ~~ility to bill California state Energy Surcharge
based on el€ctric utility KWa consumption.
E Ability to bill City utility Us~r's Tax based on
~/G/E utilities charges with rate redUction and ~
exemption provisions~
E All commcdity utility (WIG/E) charges are k;lased on
usage ~ith tier rates to promote conservation,
there are also a summer/winter rate provision.
E
All WIGlE charges to be prorated based on number
of service days in the service period and rate
chang-e.(s) cut-off dates (if any).
Ability to bill se~er utility according to preset
flat rates, customer class or for large users based
on their ~ater consumptions and/or type of business
(e.g4 restaurant etc.).
E Ability to bill refuse utility based on monthly
pick-~p and bin rental fees and special pick-up and /
cleaning charges. Y
-811 -
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I
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8 Ability to bill storm drainage utility based on
customer class l sq~ara footage of impervious area
and include exemption provision4
E
B
Ability to bill sewer/refuse/storm drainage utility
customer with fixed monthly cha~qcs multiply by
the number of months contained in the se~ice
period (no partial month) plus any other special
charges4 No proration of monthly charges allo~ed
except in the service period which contains close
and/or open activities4
Ability to charge late payment penalty ~ith step-up
rates based on over-due amount and credit
conditions.
.. " N
Ability to stop late payment penalty on all accounts ./
with the same billing date4 v
B Ability to handle large company with multiple
accounts {facilities) on different billing days,
with additional summary bill a.nd single maili~g.
Ability to bill account with no meter readings (e.g4
refUse only and storm drainage only accountsJ4 ~ __
E Ability to provide user friendly Hi-La met~r reading
check based on past consumption history, seasonal
smoothing factor, customer classes and absolute high
limits4
E Ability to create re-read work orders (field o~der;
for meter reader on meter readings rejects due to
Hi-La check failures.
E Ability to provide on-line reviews of erroneous
input due to billing period error, stop-billir.g
flag set etc., after corrections made then merge
with the next bill production run's meter reading
input~
E Ability to perform interim billing (estimate
billing) wben meter readings were unobtainable,
bill also include other charges e4g~ SjR/SD
utilities charges, loan payments and previous
balance if applicable4
E Ability to produce letters to be send out to the
customers on water conservation information
regarding allocation and follo~-up actions
\
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E Ability to charge water customers according to
customized drought water rates ~ased on basic
allocation, number of people in the household~
or based on ~st ~ater consumption history.
E Ability to produce 45-day since last bill report.
E ADillty to produce meter turned-off with consump
tions (unauthorized usage) report to detect leaks
or theft.
E Ability to produce zero consumption report to find
possible meter/reading errors.
E Ability to detect meter reading errors and identify
account for further investigation ~efore producing
a bill.
A II 1I
E Ability to print water consumption in gallons ~
E Ability to include incentive and penalty programs
on electric utility based on different ~easurable
criteria (e.g. power factor, load tactor~ partner-/
ship, voluntary curtailment etc~). yr
E Ability to include Solar discount to customers
with solar equipments. ~
E Ability to produce corrected bill statement with new
input~ automatically qenerata adjust~ents for the
affected account to be included in the next cash
posting run~
E Ability to print/reprint bills/notices as requested
include a previous month's statement.
E Ability to automatically adjust utility user tax
rate and refund over-pa~ents on large company
based on fiscal year-to-date "/G/E charges on all
its accounts through out the City.
E Ability to print multiple page utilities bills
include details on refuse special charges and
cUstomer's credits/payments/adjustments details,
loan information etc.
E Ability to print bill messages that can be changed
daily or tailor to individual customer's special
conditions or problems Ce~g~ reminder notice tor
payment overdue, water over-use etc.). ~
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E
E
E
. -
Abilit}" to sort bills by statement type and zip
code sequence --sav~ on postage w/~ip+4.
Ability to print billi~9 register report to include
all charqes~ consumption, credit balance infor
mation etc.
Ability to cown-load/up-!oad meter reading informa
tion from server to Datamatic IBM-compatible PC to
be down-load/up-load to the Datamatic hand held
computers.
E Ability to revise Hi-La check parameters on-lin~.
E Ability to over-rid~ Hi-La meter reading checks on
individual basis.
E Ability to perform utility refund, ~ith refund
amount equal to the corresponding charge, in order
to stretch-out refund time. Print both refund
amount and remaining refund balance on the bill.
E Ability to produ~e GL journal entries according to
individual fund balances to be applied to the
Financial data base (IFAS) 4
E Ability to re-calculate perc€ntage of each fund
balances as to the total accounts-receivable
balance, use this file to apportion payments and
control fund balance in the cash posting run.
E Bill statement should use verbal explanatior.
instead of cryptic code that require customer to
look-up f~r meanings.
E Ability to inc1ude city pruvided utilities loans
monthly payments on the sa~e utilities bill
statement with detail loan(s) information sho~.
A )( II
E Ability to perform automatic funds transfer in
batch processing bet~een city departments and
utilities enterprise funds based on departments'
utilities bills. CUrrently, City has more than
100 utilities accounts~ );/
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E Ability to extract meter reading information by
routes from ~tjlities master file.
E Ability to bill reclaim water
-014 -
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o Ability to include .1scellaneous utility charge
billing (e~ q. one time connection charge) on the
same utilities bill with explenation.
o Ability to provide budqet billing (average billinq)
with pre-determined equal amount of payments and
in~lude balance cat~~-up provision. Re-calculate
averaqe payment amount at the beginning of each
t iscal l~ear.
A K N
D Ability to charge custumer on utilities turn-on/ ~
turn-off charges
D Ability to bill septic tank haul-away, water con-/
tamination clean-up charges etc. ~
a Abili~y to bill remote meter charges ~
o Ability to provide time of the day electric billing ~
(with peak, partial-peak and off-peak rate blocks)
a Ability to include on the bill current plus last 12
months history c-f average daily consumptions and /
~average daily charges on WIGlE utilities~
-515 -
•
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Yl. INFORMATION ~~~
z
B
Ability to lnquire on-line of all in!ormation
appearing on a previous or c~rrent bill
statement.
An on-line note screen to li~~ with individual
account use to pass-along information bet'We.en
service repre.sentatlves/meter reader/credit
manager etc. for special conditions that need to
be recorded (i.e. customer on life support system).
B On-line access of account information by using
account number, service address as kejl's.
B Search/inquiry capability for all customer
categories (including SIC)~
• Ability to provida on-line displays and/or reports
to identify accounts with special medical
condition(s) which warranted special considerations
on utilities services.
E A master scheduling and tracking SUb-system dn all
meter reading routes able to display on-line How
many accounts and ~eters in the route? how many
have been/not been readfbillea? and automatically
updated by bill production run.
B Produce daily and monthly sales analysis reports
in dollars and units (adjusted) fo~ all customer
classes.
E Ability to generate a daily pending file (tickle
file) for scheduling follow-up actions on commit
ments ~ade by customer service center to customer~
B Provide user friendly informati~n retrieval afid
report generating capabilities on client (PCs).
E Ability to produce monthly sales reports cate
gorized by customer class, SIC code, Zip code,
route and/or service type
A II Ii
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B Loan master file (data base) to include starting,
current balances, number of payments, type of
loans, current payments, final date,. interest
charges etc. ...........
•
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B A document proeesainq a~-S].t9a (imaging &]st6m)
to •• arch/retrieve imaqea of the oriqinal document,
.~9. billing register, billa, payment check.,
correspondence, documentation, couDcil .ln~tes,
rul •• and regulations etc.
E Ahle to enter mailing labels requests cn-line#
including such criteria as customer class, owner
andjor occupant, street blocks, utilities usage
etc.
E Print labels on-line or by deferred batch process
ing_
Z Ability to selectiv~ly down-load informaticn fro~
utility/Loan/Refuse master files and GEO data base
on the server to client {PCs)~
E A client (PCs) based charge co~putation program
to show step by step how we arrived such charges
(e.g~ compute a gas charge starting form ~eter
readings and go through each of the step to arrive
at the fina~ gas charge).
E Ability to calculate and display payoff amount for
loans en-line (i.e. current balance and interest
charges) ..
E Ability to track ~onthly changes in vater/
electric/gas usages of industrial users for
possible use (SIC) chang~s.
E Include in a~l the electric customer records with
po~er related information such as transformer
number, service volta9a~ KVA rati~g etc. for power
manac;:-ement.
E A property data base include count," assesscr and
current ownership information
E Ability to keep current plus last five year's
refuse information on-line for State mandate
E Ability to keep ~eight data in refUse master tile
E Data base to include national standard Industrial
Classification Code (SIC) ..
E Ability to provide monthly refu$e det,ail and
su~arizing refUse charges report.
-617 -
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" Refuse master file to include refuse customer infor-
B
mation: refuse route, yards, bins, rentals, numbar
of time of regular pick-up, all special charges and
cu~tomer compl~ints for the last 24 months.
provide storm drainage utility monthly report tfiat
contains specific billing information, include
number of accounts~ number of ~quivalent residen
tial units (ERU), number of parcels, total billir.gs
etc.
E Accees information by customer name and company
code
E Ability to identify o~~er and occupant if
different.
E provide outside auditor's ~ith age-trial balances
report with confirmation labels.
E Ability to extract fund balances and figure out
outstanding receivables for ea~h charges from
the utilities master file~
E Include multiple APNs (parcel numbers) in the
account record; print charge detail for those
account that has multiple APNs for storm drainage·
billing
E A meter inventory master file to be accessed
on-line for all City's meters (W/G/E}~
E Ability to extract and list all custo~er acCOunts
~hich are associated ~ith various UES data fields
such as transformer numb~r, ~~A rating, etc.
D GEO data base to contain information on ownership,
land parcel/use, APN, property manager name,
telephone nu~~er etc~ Abl€ to access it on-line
and upaate information fro~ county assessors file,
building permit# planning file etc.
o ·Provide sUM.."TO.ary billing infonnation by group of
.accounts (roll-up capability).
o Provide data dictionary to the PC users.
D Ability to allow users requesting report(s) en-line
from the 'report catalog' kept on the server~
-018 -
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D
Ability to produce report with all a~tive accounts
on a weekly basis.
Ability to perform street search to obtain a
list of all utilities accounts in the block
and display those account one at a time for
information purpose during emergency, construction,
etc.: Also to perform audit for abnormal use
pattern ~hen compa~e to other like accounts in the
same neighborhood
D Ability to produce monthly consumption report
based on calendar days ins~ead of billing ~onth
to ~atch the calendar month utilities purchase
information
o Need to inc~ude geographic information like X-Y
coordinate for the future tie ",ith City's exist
ing GIS/GEO system
o Ability to use hand held meter reading computer
for field audit/survey on meter, service~, and
premise type: Up-load information for update to
the Utilities ~aster files/data bases
o Abi~ity to access last 24 months ~orth of utilities/
refuse/loan master files on-line.
o retain occupant/o~er, parcel, account information
etc. on closed accounts for 24 months.
o Ability to include up-to-date rotation outage blOCK
from Utility Department's Engineering data base
and print it on the bill.
o Ability to extract all customer accounts which are
associated with a particular transformer, gas main,
water main, geographic location, utility interrup
tible services etc. rrom the GEO Data Base.
o Include in the Utilities Data Base of commodity
purchase information.
o Ability to found -look alike~ or nsound alike~
customer names, service adGress etc. other than
u5i!':g ~xact customer service address and account
number to access the tiles/data bases
A " N
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1 ILITY USER TAX
i ORM DRAINAGE 1. 0 ERU 3.25
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I _u YOU HA'it! SlICCEEDEO ....
A.m: YOU FOR YOUR WATER CONSERVATION EFFORTS, YOUR
~SUMPTK)N THIS PASr booiONtH WAS BELOW Tt-fE ~1NTEA GOAt
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.CW 7CCF HOWEVER, YOU HA'JE SUCCE:::OED AND THE
\1MlJNITY APPRECIATES YOUR EFFORTS. PLEASE CONTINUE TO
~ C TICE CONSER VA TIONI
CONSERVATION L""FORMATION
BAL 2-05
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-90 31 $,9C 458,~ $2 .~3 5.1 $3.68
-9') 28 $·n 501.; $2,21 4,8 $3,17
-90 66 $1,1 566, $3,51 6.7 $2.81
-90
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-90 $.9 1106. $2.02 3.3 $2.44
-90 ~6 $1.1 1136. $2. ;n 3.6 $2.43
-90 30 $1. B~ 598, $2,43 4,0 $2.69
-90 1 7 -90 60 $L~~ ~61.3 $1.10 3.5 $3,18
-90 ~~ q~ 283,0 $3.57 6,8 $3.46
-91 $,38 195, -$2,06 ~.6 $3,45
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CITY OF PALO ALTO t.:TL'.ES
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SUBJECT TO LATE-PAYMENT CHAAGE OF Ui':l. 'If' NOT PAlO BY 3-25-11
900-901107-0 82 -.-PALO ALTO
9009011070 002071b25
CITY OF PALO ALTO UTiUTIES
• CA 9~305
09002-
PlEASEPA'f
$20,715.25
":lIn'E';e .. ~ ..I.....c\."'
Ffi4) i>UA5e..o.coc.o~
1
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.. ~~ .. """ 1-16-91 TO 2-15-91 SEl'?iIlCE C':'YS 30
TYP'HlI'-~'S.. PUBLIC PLACE e:LOAiE 3-05-91
F\01I-'tJItG 0LJT.,I(lE 3'_CO< ~~ 7 [;E:OC':,~ 5":"'~·.c::. • 0 0
SEWER
REFUSE
18,
139,
~020 ~=-t::~·:','.Ci BAL FWD .00
:to-W;;h£~>7,:r'.:'::;GE:S 20716.25
STORM DRAINAGE 163.4 ERU 531. 05
TOTAL DUE
82
••••• DROUGHT RATE SCH£DlIlE" NOW EN EFr[eT .....
YO' JA MONTHl. Y BASELINE CONS lJMP TION At. LOW ,DJOCE IS 7 e 0 CCF.
(1 CCF=74~ GAt."..ONSJ WE RECOMMEND YOU HI)' TO :5T,t.,Y WJTKtN TWO
TIMES THIS AMOUNT. NEW WA1E;A AATES WENT INTO l."HCT E-1-90.
FOR E!!'-1.iNG /l.SSlST ANeE. CALL 329 -:116 t. FO~ [lEAS ON WAYS TO
CONSERVE, CA:"L 329-2241. THANt< YOU FDA YOUR HELP DUli.Nt::ii THE
OROUGHT.
MONTH Dr. .. KWH LOAD~
2-91 378 139,200 51 METER NUMBER
1-91 402 130,800 40 BILLING DKW
12-90 378 123,000 47 DEMWD RUE/DK'"
11-90 354 107,400 47 DEi'IANll CHARGE
02255
378
1.00
10-90 354 193,200 39 ENERGY USE KWH 139200
9-90 312 66,000 26 ENERGY RATE/K'.m .0410
8-90 228 90,000 40 ENERGY CHARGE
7-90 372 114,600 31 POWER FACTOR ~ 83
6-90 366 364,800 46 POWER FACTOR CHARGE
5-90 378 121,200 43
4-90 360 116,400 45
3-90 H4* 132,600 48 TOTAL CHARGE
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2,646.00
5,707.20
250.60
8.603.80
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CRISIS IN 1/5:
THE AGING
SYSTEMS SAGA
Corporate America s aging applications are in critical
condition, informatior! executives report. The situation is likely
to get -,,'orse hefore it gels heller.
by David Kull
Ask seasoned information e~e:,,-ulne~
about Clr:~ of Ll:!eir aging computer sys
tems, and the fiT'St words yc.,u·re lilcl)' 10
h.eat ar~ "It's 'R-'orking now, bUL _. ,"
You may hear tales of applicatioru !rO patched
and repalcbed that lhory can no lOrlgc::r evolve
'irI'ith the busin~ IhC)' support--much kss
m~t needs fOf expansion
Ask. these ~e e;o;ecutives thei, inlmtions
for so{~'ing the problem, !nd scvc:r;sJ WIll proba
hly (.hange the subject 10 theif plaru. for !ctin:
m!!:llt. FDr wme, retirement "..:Il be the-0 il~V
"ay out ora problem Ula(s rea;;;hin,g: cr~ pre
port.ions· Organizations c.:mr.l,t li.c without
L'l~r aging s),sterru, ilicy c.1D b:.t:ciy afford 10
keep tllem gaing, and they cannot c:onc6 ... ~ of
O",aintainlng .and replaclng tll O~e: Sj'~te:rns It thf'
sam~ time:
For many information ~~ecu(j~~ admi$--
slon of an aging systems prCJbl~m is Unta ...
moun! hl admission of their OWTJ failure. It's
al!>O an admission of cal"pl.")rate ...-ulm:rabihtio
F~w are ,,",rUing to discuss such ...-uli·lcrabalj:i~
in detail, so the saga of aging system.}-~ br.:.
c<)me the dirty little secret of IrJOlTna tioe Se:r.
vic~
Or n';)! s.o IittJ~, "''1lm we br.:xoched the 'Sub
~"1 of aging systems ';Imh m-embe-r;. of the-DE·
CISIONS 500 liS Reader Coun-:il, and otfc:rcl
.anorlj'mity, "'e bit a nen-e. About 40 percrnt-
19 S--Qf the 5C(J council members responded.
A staggering 83 ~c::~nl ortb~ [IS e~ecutivt:5
at large organirarions indicated the e~istem:e
of one or more c.orporatc application Sy:>(I:D"I.s.
"
that ~ rl!.k to fbe organizalion be!;:.a~ of
their obs.ol\"5Ce!lce. Tne lespon.d~ts offerw
hund:'eds ofbarro""lng tali$, man}' of them de·
Kribing :ri'iks 50 yea! as to threaten life ... ery
eAi.~ten,~e of their org .. niz;ulon!..
1'J. S').rrt, 'l.1J~ VS e,\ecuti .. ~ p .. int a picture
ora dCl::a~'ing in(onr,atlon infra!'iuu<::ture-arld
of corpora.le managements that :uc: unwillmg
or unabk to marshaIl the m~i ... e resources
ntedt'"d fer .re-'nvestment!. or leplaccments. Al
though mal',] respondent.' se: nc :w1ution .s.hort
of '\O:o;:ing for a di$;!Sler and tllrn rebu.ilding
C" .... b:eakdo'1.n ~':':i cal,!~ a m;fJ"Jr upb("J"{al
and a work r'x-ce .. ill be-COITlmi~ioned to ~'1.
H::>rig.a:e, "53:'5 '-'ne). otln'..--s-l1old Dur bo~ :n<i!
m::w technology and new manage~t tt'Ch·
ciques ",,'Ill a.1ow an ordc:rly ti-an~ition te more
solld apptk:acioru: .. "nd some even cOIl:iertr~
to glling on record y,.-ilh ,he:ir p;oblC!ll!.llnd so
IUllon~.
AgLng 5Y5t~ rango:! fraUi the hrEe. inle
grated application that stands oilly be!-au$e
200 mainttnance prCl,gIJ.mmers prop it up, to
Ihe UIldocllmenle.:l, 5t;lrld·abne, macbine·Lan
guage antique that two or three ~'e!er:artS keep
.&1j".:: through heroic efforts. BOll agjng s)'su:ms
all share one ke)' characteristi",-They tlJ. \Ie
be"tn ra,'aged by cbange to the e"ten~ thaI they
are (JnabJ.e-ro respond adequ.ate!_.!' to addirional
chanf,e. With each 12 \1,0' or po],q decision thaI ~
alters the supJXlr.o:d a.:ti\'lty, wah c;!ch moYe~
to a n~w generation orhardwale:, pfOgrammen. ~
r.lust mrxhfy the appllc,l.t]on. As. changes are.: pa~ched ol'er changes, trLe code be::01l1t:5 more j
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" WHEN ONE MORE UPGRADE ISN'T IN THE CARDS
G iven c:nou.gh ~rtware layers to ~mulator and C'.cminued u.~i.'lg the
co ... er chang:e~ Lll hardware shop-noorappEcation.
and etlougb computer power to ban-By then, Koell~ relates., Ibe appfi-
dk the software !.a.yet'S, ap(:,riattio,ls catiOD'~ wen-being oepended on the
can keep .orkin. rorev~-bllt Dot knowledge otthc person. .... 'M wrote
t'be people ..-bo maintain them. the simulator ,uid thret: prO:g1"&Dl-
Richard Kodkr. 'Viet: p~id'ent of men. ",,'ho understood the progn:m..
informatim:l ~ for TRW In(". Being able to rely on thO$e people ror
(<:.1eveIand) and I Illembctoftbe 1)£-~ion.;l! flJll:cs and modiJi~ricr1S
CL510lllS EditoriaI Ad~ BoArd. aiJowed the compiny I~ put off aD
tens or one manufacturing IlppEca.· upcnd~t\.l.rL "Rewritir.S the a.ppri-
con system that surv!ved thret: com-calion would have cost fro;n
puter Jenc:rations Ilnd outlasted aD S4OO,ooo to liDO/XX)," Koerler s:a.Y~.
but two of the people .... ho 'Unda-"and Ll~ wouldn't halle gon~n any
s>ood it. mOte than they were alread;: get-
The apptk:ation, which handled ting," K.eener's d-:.partment \\':is able
shop-floor reponing or time and Ia-..... ~::::=r::::::::::::L_::;=-'--to provide the oIppli~tion at n:ta-
bor charges for olle of TR W"S divi-tive!y tittle cost to its ~
&ions., ... .as wnttCD m machL"le code TRW ran t.ie app[ication under
Ie ru.o on an IBM 701'0, The 70iO the si mutator for mor!: than SC¥C1l
~ made obsolm by tne btroduc:-yon. Dwing that time, the appIK:a-
tion of th~ S.)"'StemI360 line or com-rion's e.cistence became iru:re:uingIy
pute..-s.. The 360 cvmpu.crs could tcnuou.s, IS the simulator's author
em:.llate the 7010's instruction set,. fell Sl:riousfy lU a01d om: of the pro-
however, which allowed TRW to grammen retired. WhCTI TRW re-
port the appricaLion to the new mod-ccnlly s.cld the divis.ioD IMI bad
el. been using the app:u;at)on, L'le lw:;;
IBM's Syst~ 70 an::hiICl:.'t\Lre., of its 707D-based .applications for-remaining proyammers were .a.ged
... hich superseded the 360 tine, dld ward to a 37Q.-based 30XX compl,ll-53 and 56, and Koclkr's department
not include 7070 ernuTOltion. f1ut ~,bad writt~ rts.0lIr'D program that was in the process of rnrrilin.g the
nw learned !.hat another mann-sil"1ulatm the 7070 mstfUl:'tiC'D se! pr'Jgrarn, ](rxOer'! Sllmma!ioc. of
f<rcturer, "'hich .';anted to move one em the )OXX TRW purcha..'>ed the the situation" "We dodged.1. bWlet"
complex, and addi tiona[ changes more difficult.
"Not!:iing is. impos,sible in data processing," one respon
dent ~rved, ~Oll can always fmd s.ome way to keep an
appllcatiot'. tJj"e. .. The risks come "",'hen the costs cf mak·
ing changes ou,,",eigh tbe .syslem's benefits, wben pm
grammers cannot male cba.lges in. time to c.apture busi·
n~ oppOrtunities or rn~1 legal deadlines. ,.her; one
cm.nge-too mOl1l)' ccpfollnds the lI.pplicatlon's oJ>e,ratrng
logic. Then there~:I the-nagging rear of fuD systc..'11 f3.J.lure,
'irhicf'lrn the cue ofmaIlY appTlca;.tions could quickly brir:.g
an entire-organization to its knees
Assessing these riSk.s is not <:asy. Apptications age wilh
the subtlety of thtrd ba,Sl::.rn~: They dways seem good. fot
just one more: 'year. But, as our readers graphicaf!y aUesl,
the dange",1; are real and large, Solutions to the aging sys
terns dilemma range from refurbishing an application's
t~hno1cgica! und~illnings to total rep!acemenl. Re·
s90ndenti to ou.r survey descn'bed bOth exuemes, .as wldl
as measures falling somewhere in bel ween
The most di fflcu[t problems are posed by those large
strategic systems (or whicb total repiacement is ... irtualiy
impossible. The Safari system of Aetna LIfe .1 Casualty
Co (Hartford, en is a prime e:tample of such a systeM.
"Safari W~ 10Ye31"S ahead of its time." s.aysSaul Himmd
farb, a productivity cenler administrator "_I Aelna, "Kow,
20),e.ar.; later, iI's 10 years bd>ind .... ·hat w~ .... ould like 10
have." Safari. O1'e of Aetna's primary systems for issuing
policies. bad ~n bu ilt as !lin online system before IBM
rcleased C1CS, the tt::kprocC$Sing monllor that: carne to
stlpport most similar, sUWquent systt::ms_ That Safari ~
its O\\'l1 f'lomegro\l,I1, nonstandard tekpro.."CS!ilng monitor
~ onI), one reason the 200 maintt::nance programmen. dedi
,",led to the applio::arion's upkeep fL'"ld th6r jobs challeng
ing. (T-shjrts pwc1aiming "I survi"ed Saf:iri~ reveal pro
grammers' fed\!\g:s. J.oout \be s~stem.) Oilier rasom Are 'its
size and corr.plaity
UndCl Safari. Insuran ce premi urns are Kl in.:! policies
,generated ~ased on d~riptions of a cu~lomer and the in
Si,lr:l1lce cove!"ilge requi r~_ Aetna has two i.mpleruenta
tio!\S of the. S .... fari system, one for cQ~rate C1J.'itorner'S. in
;IS cornmerci al insu rance divisio'1 and one for individ 113ls
ill its per~naJ financial \eCurity division, Ov~ the yr:afS..
the company has addt::d ditTer~nl f)'pes of insurance to the
sysrem--Safari no,,", handles; automobile. bomeo'llo'ner,
Vw·orkmen's (:ompensation, and other casuafty policio-
a~d made thoUS<lnd~ of modifications to. !IIc(;ornmoda.le
changes In the Law as well as in the po[icics arld the mArkets
in which they a.re s.old_ Programmers must shoehorn eacb
change inl0 the existing c(xk "Opportunitie:s to add a DeW
program are ... ery rare, M Himmdfarb s.a)"i,. As a res<l[t, be
says, 'Drogrammer;; -live in the (;ooC," looking for \\'a),s to
make a chang~_ And r~a.rchers sometimes toil for wee;..s
llJing to falhom th-= systt':rn-s results
So ONe at A~l na conside~ replacing Safari in one g;..an t
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sttp. Such ... ptojcc!: would oost ~
told millions.. And th~ system suO
.... orn .... Jthough Safari's sbort·
comings Ii.rut A~tna's fle.l.i"biliry ill:
doing busin~ the limitation farlS
short of competiti· .. e disadvAlItage.,
St.ys lrwin 1. Sitkin,. \'i~ president or corporat~ administration at Aet
QI. and a m~be:r oftbe DECl!>lONS
Edi torial Advisory Douci "Other
companies' S}'!:!ems aren't better,"
Sitkin says.. Eut be quickly add.;
that Aetna has to take .!<:(lon soon,
bd"')re Sa.~"s cosu grow beyond
an acoeptabk le"'el
Aero.'s dilemma with Safari
cpitomLt.es tbe problem fac~ b)' an
organizations with brb !::, aging sys
tems: The company ca.noot stop
maintaining the old:'JYSlem while it
builds tlle new one. "'You can't just
stop t.~e world and get off,'" Sit.k.in
says.. But maintaining tile old sys.
RrJ/1uf £J!Q1U is piloting Q. syszmu
QliO"hau/ a1 El Peso .""·G.!;.:rn! &.:s.
will make futuI~ .1ata manag<'"men!
• much easier job. Re:-earchen; arc
also analyzing anJ re!>tf",..!Cl uring
the code, lJ.·hicb should make it
mor~ 3cc.esslble to prcgr:l.mrners..
According to Himme:farb, A~ttlj,
~xp<:cts to a'ppl)' U1 e wrev~n.e engi.
neenng mooel" de_ elope.:1 in this
pilot project to Safan..
Aetru;.-s, appro.l.::b to the I!glng
systems prOblem falls into
tbe category th::.1 Glenn
Mangurian calls tcr.o ..... ation.
~bngmian, • "ice p!"esid~nt a! the
Index Group. a consultancy in
Cambridge. MA, says this ap
proacb work.; best ",,'ith $yslC!I1S
tnn ha\'e "pretl)! good fum::liclJa!:i
!y but bad technology." The idea,.
ne says., ~ ·'to save the applica
~cn's appea1""oInce, but upd~!e the
innard"," through sucb measures
t:m cfiverts I"SOW""ee5 uom dc:vclopwc:Dt. One way out
or this bind i:.<; to make mainlCIanDC e.A.Siu. frecil1g
funds.and progra.!runa'i for del/:Jopment.
as moving the daLa to a database managem~nt S)'stc:rn
and modularizing the code. ReT1ovacion can be e,""{pen
sive, Mangurian nOles, a.,d corporate ma...""1agem:nts
often balk a1 fundir,g it., preft!f7"iIi~ to spend only for
ne:w ca'pabiliti~.
Aetna is no,. rc=a.rching .... 'a)'"5 of enhan-::ing Safa
maintainability. A much mW1er application of
vintage SCl"VC& &.li L;"e subjo::t for thts resarch.
producti";ty group, which is dedicated to
oin.t",~"C-e:xperim;:nts on this application -",'ith
too! that comes aIong," says Himrodfa.rb. The
poop i<. about two-thirds of the way through a project
to "revcr:>e engineer" th~ appIiCiltion, usiDg tile Cata
lyst Ene or tools from Pat Marwlck Advanced To;; boo
nology (Chicago). The grou.p is extracting data d~
ments from the code to build ... data dicrior.;uy, which
Boido. renovation, the other four appr~aches. in
Manguri.an's list of categories are augmtn,.ation,
m.air.tcnance, abandonmerlt, and replac~.ent. Aug
mc-:ltation ffi appropriate: wbtI1 cundilion);. are oppm,ite
L":IOM: for renovation: The aptJrication's underlying
te:;;}dlOlo'&y is good, but its margi:laI functionality
.;;ouid be-enh:uH::ed b.)" addkng high-le~'d query 100is,
online aeu::», or orher fealun::s. Ma~ .. tellance i.!; SLlI".:i-
1.a.r to re:uo,,;ation, Mangurian el>plairu., but while
HOW FIRST BOSTON SHUFFLES THE CODE
Y OIl cannot buDd a sys!cm
that', inflllite;y flexible,"
says Eugene Bcdfill, directOf" (-..f
information sc:r.1:co> at brolenae
giant Fin.t Boston Corp. iII New
York.. Nor can you always pre
dict tDe ehanges that will cot.
froat the system, he add". So
whan an [is Cl.ecutive to do?
VlheI1 .. ·ast cbanges in the fi...
%Ianeial ..... orld. including the
mcve tow'ard global trading,
forced First Bosto c ta iewri1e
many of its appEcations in the
mid-198~. tb~ company kn~w
future chango ","ould someday
require doinl tDe same job again..
"Instead ofbuilcfmg • system. we
built • system-building 5)'Stem, ..
Bed~n sa}'$. The re:sulting d~
opment cnviromncnt is • ccmbi
cation or computer-aided soft·
L
oa'are engine~rjng tecbnologie.
aDd cbjec.t-1Jriented techr.~qll-::S
that help dt·.dopus :es'huffie a,
isting code for dwmg out new
applicatioru.
Under tlle object-oriC1lterl ap
proach, Ftril Boston bas pack
ago:d i!s coocia highly structured,
smaU, self-<"oatamed objects,
S\lch a.lo screens, repof"tS, ~~tions
of reports. and so on. Using a set
aftoots that FLrSt Bos:on calli the
High Prcduct.ivity S)·iitem, the
de .... elopu. build new applica
tions largdyby pluggiDg l{lgelher
existiog objects. 'Tbe result, Be-
dell says.. is highly efficient code
reusability.
Devdopmrnt is done on micro
computers and on IBM main
rramt:S ruanmg under MVS. Tb~
appIlcaticms, 'iii'hich inc1udt Co-
'bot C, and PLll prograL""1s, run
011 wi.;ros and e;.tlit:r a marIl!rame
or an IBM S y.temlS!! or Stratus
computer.
First BostoG Sperl! S60 millioQ
de .... eloplng its system-building
system. The compa...'lY is wing the
system to .. eplace several strategic
trading applications, as weTI as
for onBoing de'llelop01t.llt. Bcddl
bd:ieve:s the approach will save
the ".(lmpany from cost1y redevel
opmnlt projtcts in the future But
rn{1st important, be says, the 5)'1-
tan has lowered the ~ost of main
t.enan~. ''V,'hen majntenan~ is
dene on an object, it's done for aD
of the applications that US( the
object,." B~dell points out..
"'When ~"'e adopted this ap
proach, we were most interested
in mabtenan~ producri\o·ily."
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m.ajnl~n.Il.Cc may include
SOMe p~livt measll."t'S, ,uch
as eOOl'.:-teStnJcturiog and doc
umeatation enhancement. t..~e
,te;4 &re less extenslve and less
upensiyc: than ~ taken for
renovrotion. Abandonment is
appropriate for tyStenu with
poor technology and pear
functionality. Tota! replace
men. is genenOy • last resort,
and i5 easiest for discr..:te ap
pficarions that mlght be ban·
dlt<! by • pockage.
AU managements will re<.:
ognite an aging application"s
r<.!.b --eventualiy, The ques
tion is, ho .... , bad mus: the situ
.atioo become before ;:hey d,o"
An astonishing. 10 percent of
respondents to our $i.H· .... ey saId
lhe)' be1ie"'e th~ problem won't
be addr~d in .heir organlz.a
lions umil JI breakdown. oc
",un.
Appllcations that an cen
tra1 to • l;Omp1LDy's ope:ra
tjoll-tho'se that involve a
Large Dumber of mlployl:di or
custom~_ the grc:atcs;t
repbcement difficulties.. For
one tb.Wg. rdTa.i.W.Dg costs fur
us.er'5 are b"kdy 10 be rugb. For
aoother, the appJics.tiollo is
lileIy to be 1Mge &lid complex..
CoOlpanl'=i ofks 3d into trou
ble trying to ~tacc large ap
plications or sets of appEca
tious all at ODce, M&ngurian
says. '"'The scaje of S1Jch • pro
ject is usually much larger
OlaD the organization is accus-
tamed to," he: upl..!.ios. "It
doem.'t havt: the intenta! disci
pline: to N!D ad." Srl pro
~ts., hc'"si'ys., "'usually run two
or throe times over budg~ and
two 112fS behbd sclleduk ...
1}"Itt. tIc>w WOYkI "fO\o' eI'Jo'oet.rlN 1h<I ~1
One VS execu!ive confided
that all oi his organi7.ation"s
de",elopmem i.s .10Cl~"as a fire
drilL" Another ';\o'C'rHlere::l
wbeth~ her corporate man
agemeN te.a.-n would ever rec·
ognize t.he risk.s pos.ed by Jln
aging intern adona! system for
data collection and anal)'sis.
Her sohaion for cleaning up
Ir.st system: "an under·the-ta
ble pirate project t11.at "''ill 001
!x: 'o'islble to upper manage
ment. .. The resources for we
cleanup, !.~e adds, ··will be
puTIed from OIlIer prajects as
mucb as ,Possible .... ithout
d!"3Il.'ing anent~"o:. to. lIro'hat ·',!e
.are doing."
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Many I/S ~tives. an: av-
paTeIltly r~igtJed to we fact
that the time and money far
men proj~ won't even be
ct ~ b. c
~ Bbd ~ irpedad
b. *"'~ it1b18d
c.1Uegi::~~
appropriated until I major breakdown IIppean lln3void·
abk Sevo-al OEC1SIONS ruda council membe...''''S r~pond.
ing to O'lt s\!TVey cited an .attitude on tnc:-part of corporate
management that "if it aln't bro\.:e, doc't fix it." Ccr.s:de
th~ case oftlJe :hl-yea!'"-old paYTon system in tL~ by the:-city
0{ Chlcago. MarX Rapoport, tne city's manager of inte
gn"Led sys~ says the system had bern kept aEve for
yea1'!i by the "'beroic efforts" of pmgramming and de-o.'dop
rnent staff. "Because th~ checks 'kept coming out," Rapo
port say!.. "no ~ saw tJ--.e pr"OC ~em_"
Then along came a change in.l law covering deductions
for public employees_ Only after tb e city's VS departmen1
experienced extreme diffiC"LlTty in mooifying the appuca.
tidn to accommodate the change was the C(lmptront;t's of·
flee coO\incod that a new sy5.t~ 1Iro'llSjustl'ied, says Rapo
port. The city will implement a new payraa appTi.::.ation
0\'0' the oext ~'o yQI'5. The package .. 'ill .allow users to
makesignificant modifICations by changing. panmeter "'&l
ues l'1Ither than rtCOding, "End Il.\erl wiD do in a day or k:s.s
the thlogs we used 10 spe:nd six mcmths on," Rap.'lpon
SOIys. But unti1 tk cutover to the new package com~, he
adds,. "we 1.:ecp our fmgen. crossed that the old system will
continue to cranl.: out the checks,"
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:1 AddBd ~ Id.le
""""" .. ProIII poWfd nted
thJ->;slernIoln~
~d>.:Jt<'
One way campantes can as
suremore orderly blldget·
ing for rep~acemeT1l or
renovation of 01 d svstems
is to change the \Iro'3y they ac
count for new applications
Acce"rding to Frederic G.
Withington. a veteran consw·
tarJl and .! DEC1510~S cQlum·
nist. mast or~arjz.ations treat
de\ieJopmer.l and implementation CD~t~ as eJ:pens.es, then
t.ry to live ,1,:lth tl",e ~ystem indcfill~tel!<i "'for free," from an
accounting poi!!t Df"iell.. But if an organization t.te.at3o th~
s),3ot ern ~ an asse1 and amortizes it O""eI its e;"pcct ~d us.efuJ
lifetime, Withmgtoo s.a.y5, f'.lrId~ arc more likely 10 De avail·
able for the replacement fOf that s)'w:rr: when 11 grows old.
"'wnen yau de-yreciate the sy.tcm, you force people to
look at it," s.ays Vemoo Ree"'e5, SOllOT planning consultant
at McGr.!I~'·Hilllnc.·s Hlgh:ts:own. NJ, facility, '·v.'hen
you treat an applicalloo"s costs as an e.\per1!.t:, it's harder to
~ what y('u're paying for" Reeves .d"ocales having a
group dedicated to. "keeping tr!llCK of appl"lC3tlons as the',
age and ofntw tcchnologies that can hcTp bring them up 10
date. He oOt~ hawe\'er. that few companies take such a
fonnal app~oach. Resulu. from our reader cou.nciJ SUI"'olC)'
baCk Llp his contention. 0Tt1)' a. third oft.~c 19S respcndents
claimed 10 have a formal plan for dealmg with 3g1ng sys
tan<
Afew responcknts d~nbed efforts 10 "t::1~k dowl'l large
apphC'ltions inIO more manageable pret:C$, '·We are replac
l."lg e,;isting mMilles accordmg to the risks the)' yose. the
e);pcnse. ancf the potential bcnefit5," reported a systems
de-.elopment manazer at O~~ manurac:!ur<:r. "TI,e plan is
"I I
.---.,. .
• •
J
~ on available re
SOllrc~s and the
amoum of change the
company can S\b.t:lin,"
Said anotbet respon
dent. '"8usines.s needs
have cbanged faster
t:"an the informatioa
systems supporting
tlll:rtl. We ar.: address-
ing to e!>e issu es
througb wk forces to
update coding s1ruc
tu.Tc$, defme archit~
tures., and id~'tlfy a.nd
prioritize prc;.blem ap
plkations. We th~n try
to deploy resources
first to th~ most gtobal
or crilical areas. -
.'-1 least one resron
dent tePL)[·t~d :Ill at
tempi to repla~ com
plele stralegic ap
!'tications. Robert
Evans, vice prc::sidclIl
The cumbas sup
pon his claims. During
tile projtct's fin.t two
)'~atS, Evans cut his
"laff by about a third,
from 31410 208. H( cut
his annual budget from
S24 mLLIion in 19M to
S 1 i milliOD this year.
Yet with the reduced
costs and reduced staff,
E1 P;aso Natural Gas
impiemented more
than 4(1 n~' major a;:
plicatLoDs----ali bu,lt
from the gTol.ind LIp-
last }CU E .. ans re
ports_ "We JUS[ '5-"1
dow:). and redesigned
e.'er.,thmg," be .ays
"We dldn't try to sa·.e
an)' .;;(.ode:'
De,'clope.n at EI
]"""in SitKin (!eft) amI Soul Himmeifarlt lace a iifntlma Pa.;(' !'>.'atunl G~ ffiwt
Dot Aetna: an Dging .rysttm that rrmairu indupnuablt. still replace whaT. Ev
of infortrlatiOI! ~c~ at EI Paso (TAl ~3tUral Gas
Co., ~"pects to complete by the end of this y~a.r what
will ba~'e been a ~ix·}·e:l.r projec1lo replace .l!1l~:;!P
plications that the company bad in ptaC'e when tne
project began in 1984. Already the prc~·e.:1 h:>cs pro
duced 12 ml1llon lines or ne ..... Cobol code_ Most of the
applications bayc ~ mLlved from t""O 18~ JOXX
mainframes to a net ..... ork of 20 VS m:nicomputers
from Wa.'8 Laboratories Inc (Lowell M.<\)
------am cal!.s the company's
mak~~r-break. appilotlon---a SY$te;.] that mar.3gr:s
p.a)'m~u to c.he compOUlJ;'s sLlppiler'S. That sy:i:~m is
comp;-ised or6,())J prograMs---ab..JLlt fi'le and a half
millLon hnes of Cobol
8u: e"en as the compatl), begins tac'kJing iu larg~t
and most cru cia] system ~p!ac~m eN, it's alrc:;d!' time
to ree~'aiuate the fin.t applic.atioTls that W~ con~~cd
in the ~l~-)'ear proj..---ct. Evans in1md; to r~'alu.lte all
applic..atiolls every fj"'e )'ean. uTh.1t IIo'a.;;. I'll n~ver
find myo.elf LD I iiiu.o,t;on again ~here r ha ... e to con
tend ",,"'ilb 3 system that's 2IJ to 25 years old, -he says
E,'ans pornts out, though, that ma;nter.an.:e is e3Si~
since the mo .... e to the minicomputers ~v..'e", .. e gou.:~n
a ...... ay from the :dea thai every time ~iOU put ~n a new
T~'o forces pushed the company to l.itid .. ;-> .... }e 1 .. l.,e
swetping changes, Ellaru says. One was. a manda~e
from top managemenl to cut LIS costs: tIle othtl ~'a.<;
deregulation "r the calural gas industry, ~'bicb
changed tne business drastic-all}' and requir~d caIT~·
s.pondlng modifLca-
tion.:; in Ibe applica
tians_ Evans savs the
only way 1/S -could
make the nece~sar\'
changes "",'hile cuumg
staff .... as to shin from
mainframes to minis_
According to Evans,
the combination of
Wang"s development
loGls ar..{ the more nat
ural online en~·jron
menl of the minis al
!o .... ed developers to
.... ·ork 10 times faSI~r
thal'-on the main
frames. With the addi
tion of Pace, Wang-50
database managemenl
system, developers are
producing applicalion..s
)0 times faster than be
fore:, E .... ansc1aims.
L
A FULL HOU$( OF OPTIONS
G lenn ~.fll guriaIl a Yi,:e presJde'1t of the Index
J" Group, a Cambridge, MA-'ba.icl ciJTbultan,;y,
suuests thc:.e fi,'( options for deaTmg ',\·~th agin.g s)'s-
terns_:
• Renontion; For applica tions wi!b good fLlIlc1 iOIl
ality but Plx]r tl;Chnolog)', Enhances tt-chnolog)'
through such rn~Llres 2:> movement to r<:IAtio~al
database rr.ar:agemenl systems, data dictionaries.,
and s.tructurffi code
• :\faintenaIlce:: Similar to reno '-'ation, bllt 1(":';5 ClIten
slye. M"J' inC"iude impro"'ing docllmenlati{1n ,)[ coo~
restructuring
• A[Jgm~nt.3tiQ~ For applic.atloru. with grw.::.d lcch·
nology but p"'I)r functlonalit)'_ Enhances funcljOM.Ji·
ty through add:tiofl of loois for qLleri~ and reports_
• Abandnnment: For application" "'lIb bath poor
technolog), and poor functionol[lty
• ReplaceJ11c::tlt: Generally fea.',ible onJ)' for discrete
.applieati ons
application you have to
add Gn!., 1'IAo'o, or thrte
peupl~ to main !:J_in it, n
:be ~:l.ys
One ;T1t"ml:-er of [he
DECIS10:o..s 500 US
Reader Council tr.at
r~potided to our 5.ur
... 'ey reported a different
laC\. for easing the ag:
ing s_y~tems problem.
Hl5. department, which
supports a di"ision of a
large matiufanuring
company, has slufted
its so(['~'are ce"dop
men. and maintenance
operations offshore.
Totai costs there, in
cluding space, equip.
me-Il l, and -salarie<., arc
a third what t!H'Y hld
bt' .. n in 1h~ CnitnI
Sllles., he say~. T'he-
"
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Why hoM" ~ rtsIdnI applcaftOO sydttm
bMn~or~
,,--------------------
a.ltlae~1
b. ~ WI!: IMI te dc7JgIr
c. Joe II'd'¥ HIItDts ID ...... "..,..
11 hplac::amMlloc a:.sIJJ'
.. ~IIfCJJdW
"""" t~bllf!Ol~ . """""" """"'""" -,""
*-<t'""I~~"_'O_ .... ~.:sI'\i;l'W'lQQIr1 ----
lowtt costs aIlow the divi.!:ion to de'wote more attention m
r~lacin8 aSlC rellOVa,ifl8 its aging systems.
The I;S department \'iews this mC've not as ;3. temporary
fix, but as its new .. 'a}, of doing business_ The company
began the move OVCrse3S tru:%j'c:aJ"S ago, intending to Ilmi!
the nM.Ote opo:ations to coding. New, it employs more
tM:n 50 develcpen at m ove:n.eas. $~tc:s.. an fcr6gn nati<:;'fi
als,. to handk .analysis, design, cuding, test ing, !tnd main le·
ttanc~. Thos.e developers de most of their work on
netWOri:ed microcomplltcn., but tlJey also :b..::;.'c: 3C«SS O\'et
oorr.municatioru rmes to one of the corp'Jra'i.Jn~s main
frames in the Unita:! States. The: d~'dopc:rs w[}rl wilh
jtA.lc:side staffus 10 analyz.e an iippuCoI.tion's blJsiness n:
quirem-=nts o ... er the telepholle and througb the maJl.
The company is "yay happy" wilh the .arrangement.
including the G:u:ili1y of tile ",'crk., says tl.is 1-'5 m3.llll.~~,
"'Thcs.c-an-all coDegc-educa~ people, .. be says. "Tbey~ve ,one: to fine univenities. .. Besides, be add.!., it dm:sll ~t ma!
tt:r .. ~ a program is. written bc;;aw.e "Cobol is G:Jbol."
And dev-e.l<:tpmc:nt OVtt a distaIlCC: ~qllires p~-:cisc comrno.
nications, which fosten; adherence 10 th~ 01 g.ar.iz.atlDn·s
SlIUCtUrrd roethoooTcgy. "A fjttl~ g-:ogr.aphic 5epaTation
forces disciprrnc, " this m&naier ~ru. The arrangc:mal t
.... 000 SO .. ·ell that tbe overseas facilitic:$ are now se.-ving
other dlvtsrohS ...-ithin th~ ~rati-'n, he adds.
Organizations must ccmtintJe to find inno"'ati ve ways to
deal .. itb .ging system5 bccaUM: tile bU.in6S demand
tc. Dew app!ica1ions is ar.ccleJating. The advenl of
De1lI technologies, such iL5 Il"ltegrated $en.'i.;-:s Digi.ta1
"':et'Work., and of tecbnology-based approach es 10 doing
business.. such as '*ct:ronk data interchange, fora-lIS 10
""I""'d
AJ, m(ormalioll departments seize opportunitio with a
n.ew ,cneratioc of applications, thQ must take care to
Who1 n8'Ii' or .... olvlng IPcIU·IDrogfes will ptoY!de
maJ(K help L., sottIng the-C!ilj~ tyftem:!I dli'emma'
"
~-----------------
/IO:>Pc':JI'j-a~_-1'rl;'~1!tl"1~
~-
bl!.lld applications that will last and that ",,'W stand up .'eli
10 inevitable change. Th~ means ming $1.1,cil flexible leCb
MlOgl5 as relational da:a~ management Sj'stcms, data
dictionan-a, and objc:.;t-onenterlprograInmirog anrl d"e.<iign
tools., In deed, 69 per..::ent of respoIldents to the DEClSlONS
mney said they e).po:ct n::lOltional DBMS~ to belp sofve
the.ir aging s)'5tcms ","'OCS. Two--thirlh ofthc respondents
indicated that they look for h~lp from founh-gellerat;ur.
languager., and ju . ..t over 50 perr:ClJt said [hey upec! rdicf
tD"t>c provid~d by the !ntroouctlOn of computCI-aided soft
ware engiTl~!"ing 10015
Building for long~'lty aliO ErJearu having I. good idea of
""here the bill;:ness. is gOkng .and ..... hat its inrarmation neffi:s
,,"ill be. That tak~ ~,Ja:n~ing 3rld fOI~,gh!. Fil!;ed wllb the
d.'l.ur6ng ta.~k or mo~'iIlg to I ll~' g~n~r"tj()11 of in[o:ma
tio!]. technology, ~me orgamzatit'OS fed tempted t.J turn
the ... 'holejGb O"'e1" to I i)'stems i...r1t~gidtor, ..... herber it be.a
member of the Blg Eight or the lik~ of. company bke
Electronic: Data Systems Corp. (Danas}. In QlJr survey, in
fact, 32,3 ~cent of the re!op:mdents sad they e.x~ted to
~ire outside .::on tractors to help addre:>s tile "ging systems
ISSU~
"Ross Perot ,,"'ould be ddight~ to do the whole thing
for you, irlcllirling the thin\dng," qui~ Frcdc:ric Withing
ton, referring to the feisty formO" head of EDS '!I.'bo nev.
runs Perot SYMems Inc. (Vienna, \'A). Turning an aging
system problem ove to a sy,tc.ms intrgralor in total is
proba bl~ .. !lot the bc:s1: solution, \\,clfhington offers, VV'he;her
an "aging ~j'stem., overhaul Th addressed by internal 1/S or
an o.Jtside: company, it·~ a formidable task. Withington of
fer~ two rules of thumb: Go ~owry. a'ld give: 8:J intern&.!
ta.sl for~e: tir.le to d~e]op a broad concepl of your lnfor
m.ltion n~. Mo-.;ng smoothl~' to tn~ next g~r.eration, he
s.ays.,. Cla)' mean "keeping th<!.! aging system aliv.:-far an
oilier couple of years, .. D
,,,j
• ".!-_ .• _ •
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