Read the case study illustrated below and answer the following question:
Question 1. The Corporation was in a chaotic state due to the acquisition of a large company. Was it worthwhile introducing a new technology into it under these trying times?
Question 2. How can the consultant gain better support from the new vice presidents of development and manufacturing?
Question 3. What could you have done differently to get funding for the expert system prototype project?
Question 4. How could the domain expert in configuration control have helped to get funding for the expert system?
Question 5. How could the users of the eventual expert system (sales representatives and configuration analysts) have been more active in starting the project on expert configuration system?
Chapter: Introducing Expert Systems at the Corporation
Jay Liebowitz, George Washington University, USA
Executive Summary:
This case study highlights the concept that the "management" of the technology is usually the limiting factor causing the demise of a project rather than the "technology" itself. This real casestudy involves creating an awareness of a new technology within the company (hereafter named "The Corporation") and trying to start a (much needed) project using this technology. Thetechnology in question here is "expert systems." An expert system is a computer program that emulates the behavior of an expert in a well-defined domain of knowledge. At The Corporation, a few key top management executives thought that an expert system could be used to help The Corporation in configuring its minicomputer systems. The Corporation enlisted the help of a consultant to develop a feasibility study of using expert systems for configuration management at The Corporation. In doing so, an awareness of expert systems technology was created throughout the company in almost all divisions — customer service, sales, marketing, finance, information systems, manufacturing, etc. The hidden agenda of the consultant was to start anexpert systems project for configuration management at The Corporation, if the feasibility study deemed it worthwhile. The case study describes many of the hurdles that had to be jumped, and shows the importance of understanding the corporate culture of the organization, especially in the difficult times of mergers and acquisitions, economic downturns, and tough competition. Let's now see how the case unfolds.
Background on the History of the Organization:
The Corporation (a pseudonym) is a manufacturer of minicomputer systems who acquired a larger company in the same line of business. The Corporation manufactures a variety of computer families for use in real time simulation, software development, computer architecture research, and a host of other applications. The Corporation, a $280 million company, has about 900 employees at its corporate headquarters and about 200 employees at its manufacturing plant.
Over recent years, downsizing and outsourcing have been dominant strategies used in The Corporation. A sense of uneasiness plagued many of the employees as they were unsure of whether their jobs were protected, as many of their colleagues were receiving pink slips. Those whose jobs were valued remained, but were troubled with large workloads due to the reduction in force.
A critical component of The Corporation's operations is configuration management. Configuration management, or more appropriately configuration control, refers to configuring the hardware (and software) correctly for a customer's order. The Corporation wanted to improve the number of times it took to correctly configure an order. About 90% of the computer configurations were done incorrectly the first time, and it would normally take about 12 times to correctly configure the order. The vice president of development (who was quickly let go after the acquisition) and the vice president/general manager of manufacturing and customer service wanted to explore the feasibility of developing a Configurator using expert systems technology. The Configurator would configure an order and provide a quotation correctly the first time.
By having such a system, it was thought that the amount of time spent in contracts/configuration control could be reduced, thereby freeing up time for manufacturing to build the customer'ssystem and ship within the delivery date. Additionally, an automated Configurator could facilitate the creation of forecasting reports, improve customer relations, and provide timely and accurate configuration information out into the field to the analysts and sales representatives. It was also felt that an expert system may be a good vehicle for building up the corporate memory of the firm so that valuable knowledge and experiential learning would not be lost.
In the following sections, a discussion of how an awareness of expert systems technology was created within The Corporation will be made. However, due to mainly organizational reasons, thedevelopment and implementation of an expert configuration system were never realized.
Setting the Stage:
Getting Started:
The first step in getting an expert systems project started is to create an awareness of expert systems technology. Fortunately, at The Corporation, the vice president of development and thevice president/general manager of manufacturing and customer service had some familiarization with expert systems and they thought that it would be useful to see how expert systemstechnology could help improve The Corporation's operations. They then hired a consultant specializing in expert systems to write a feasibility study on if and how expert systems could be used in configuration management at The Corporation.
Figure: Top-level organizational chart for The Corporation
The initial step of creating an awareness of expert systems technology was already made easy because some top management executives were backing the study. This top level, champion support helped to pave the way for this study. Unfortunately, however, the vice president of development (the main champion) left the company about a week after the consultant arrived. This was due to the acquisition, and all the former top management officials were now replaced with top management from the acquiring company. This event was not a major hindrance because the other sponsor of the project (i.e., the vice president/general manager of manufacturing and customer service) was a supporter of this feasibility study effort. Although, the main champion of the effort (i.e., the former vice president of development) was lost, and the new vice president of development did not seem to be interested in the value of expert systems. An awareness and understanding of expert systems still had to be created within the organization at all operating levels.
In order to permeate this notion of expert systems throughout the company, it was necessary to use a variety of methods to achieve this goal. These methods included: a top-down approach, a bottom-up approach, and an introductory seminar approach.
Project/Case Description:
Top-Down Approach:
In order to develop the feasibility study, the company's operations had to be understood and this involved speaking with top management at The Corporation on down through the various departments (customer service, manufacturing, engineering and development, sales, marketing, information systems, finance, etc.). In studying the organizational chart of The Corporation, theconsultant realized that there was not a vice president of information systems, which is a rarity for a computer-oriented, high technology firm. Instead, the traditional, conservative hierarchy was used whereby the director of information systems reported to the vice president of finance. This realization would later come back to haunt the effort.
By having the support of some top management executives, it was rather easy to gain access to other individuals in the company in order to make them aware of this study and expert systems. In speaking with the various individuals throughout The Corporation, the thrusts of the conversations were to determine what their needs were if an expert configuration system were built and what practices and policies at The Corporation would have to change to successfully build and use an expert configuration system. The 35 individuals who were interviewed felt comfortable in that their comments would be incorporated into the feasibility study which would be sent to all top management officials. In essence, they felt ownership in the study.
An essential player in this effort was the proposed expert if an expert configuration system would be built. It was also important to obtain the input and advice from this expert in regards to theneed in having such an expert system. Additionally, it was important to gain the expert's support, so that this project wasn't forced upon her. There really was only one expert who had been around long enough to understand the configurations of the different product lines. She was severely overworked, and would welcome an aid to assist herself and her staff in the configuration management/control area. The expert was kept abreast of the work during this feasibility study effort, so that there would be no surprises at the end of this study.
Another innovative idea to create a better awareness of expert systems at the top management level was to circulate a pad to each top management executive with each page of the notepad embossed with the saying "Artificial Intelligence/Expert Systems are for Real at The Corporation." This approach was borrowed from a similar technique applied by the expert systems managerat 3M Corporation. As top management would use these pads to write short notes, they would constantly be reminded of expert systems.
Bottom-Up Approach:
Not only was a top-down approach used in gaining user support, but also a bottom-up method was utilized. This bottom-up approach involved working with the actual users of the proposed expertconfiguration system in order to obtain their views and requirements in having such a system. The consultant and a member of the Information Systems Department at The Corporation took thethree day real-time sales/analysts training course. Most of the configuration analysts and sales representatives at The Corporation in the real-time market were gathered during this course. We were able to have a round table discussion with about 16 analysts (the primary users of the expert configuration system) and also speak with several sales representatives (secondary users).The analysts were very interested in the project, and offered valuable comments and insights. Additionally, as an outgrowth of our meeting, four analysts from throughout the country were designated to assemble a list of their requirements for having an expert configuration system. This information was very helpful in formulating the feasibility study.
Almost everyone in the company was very excited about the prospects of having a better way of configuring orders. The consultant and members of the Information Systems Department were particularly cautious to make sure that expectations were kept under control.
Introductory Seminar:
Another way which was used to create an awareness of this project and expert systems throughout the company was to offer an introductory seminar on artificial intelligence/expert systems to key individuals at The Corporation. This hour presentation served to boost the interests of those who attended, and helped to better familiarize themselves with expert systems technology and applications. Descriptions of expert configuration systems used by competitors stimulated increased interest in keeping up with the competition via expert systems. Even though the attendance atthis seminar was less than expected, we were able to gain further support for this project.
Technology, Management, and Organizational Concerns:
The Feasibility Study and Requirements Document
After interviewing the many individuals throughout The Corporation and performing an analysis of the results, the feasibility study was written and sent to all top management executives. Thefeasibility study included the following sections:
Executive Summary:
1.0 Does a Need Exist for Developing an Aid for Facilitating The Corporation’s Configuration Management Function
2.0 Can Expert Systems Technology Solve the Configuration Need
2.1 Survey of Expert Systems for Configuration Management
2.2 Can Expert Systems Technology be Used at TheCorporation
3.0 Alternatives for Using Expert Systems Technology for The Corporation’s Configuration Management
4.0 Cost/Benefit Analysis and Risk Assessment
5.0 Building an Expert System Prototype for Configuring a Specific Product Line at The Corporation
6.0 Recommendations and Next Steps
7.0 References and Appendices
As part of the feasibility study, a thorough survey of existing expert configuration systems worldwide was included. It showed that major companies had been successfully using expert systemsfor configuration management. This gave confidence to The Corporation's officials to see that expert systems have been proven technology for successful use in configuration management activities. A separate summary of the recommendations based upon this feasibility study was also circulated to top management.
Other groundwork was laid to "set" the stage. A functional requirements document for an expert configuration system was prepared and sent to top management. This document included:
1.0 Purpose of Expert System
2.0 Reference Documents
3.0 User Information
4.0 Functional Requirements
4.1 Database Access
4.2 User Interface
4.3 Input/Output Content
4.4 Control Structure (Inference Engine)
4.5 Knowledge Representation
4.6 Hardware
5.0 Documentation
6.0 Training
7.0 Maintenance Requirements
By preparing this document, it showed top management that we had gone one step further by generating requirements for an expert configuration system, instead of merely stating that it is feasible to build an expert configuration system at The Corporation. Also, we lined up a local company who had expertise in developing expert configuration systems for developing the proposedexpert configuration system at The Corporation and providing technology transfer in order to better acquaint the information systems staff on expert systems. We also spoke with a major, local university to provide some education/courses on expert systems onsite at The Corporation to designated individuals. We also had the support of the expert to go ahead with this project.
Final Approval from Top Management:
The stage was set and a meeting had been scheduled with top management in order to get the go-ahead on developing the expert system. We quickly learned that "timing" is a critical part in making any business decision made. Unfortunately, the meeting was cancelled due to emergency budget planning sessions, and it became apparent that it would be difficult to reschedule this meeting with top management. We even tried to hold a videoconference between top management in two locations, but only half of the management attendees could be available. Additionally,the project's approval became clouded with other timing issues, such as a transition in information systems management and then a new company-wide hiring freeze. During this time, the (then current) director of information systems said that he had certain signing authority and he would sign for the funds to develop the expert systems prototype. Four days before signing off, a new chief information officer (CIO) was hired to ultimately replace the previous director of information systems. The consultant and information systems staff briefed the new CIO on the proposedexpert configuration system, but the CIO felt that other priorities were perhaps higher. Even the vice president of manufacturing (one of the original advocates of the study) said that although thecompany was doing configuration poorly, at least it could be done whereas other important areas were not being done at all. Coupled with these events, The Corporation was trying to cut back new projects in order to help ensure profitability for the company.
"What Actually Happened" with the Project
What did these events mean to the expert configuration system project? Principally, the decision to go-ahead with the project was delayed until new management felt comfortable in funding new projects and aligning their priorities. Management said that they would revisit and reconsider this expert configuration system project in four to six months. This never happened due to other perceived priorities by top management. Additionally, staff turnover and firings had increased in order to reengineer the company and control costs.
Poor business decisions continued to plague the company. The former director of information systems of The Corporation had heard from colleagues still at The Corporation that the new CIO agreed to buy a million dollar software package, only to find out later that it was incompatible with The Corporation's hardware.
Successes and Failures:
What can be learned from this case study? First, obtaining top management and user support are critical elements to the success of a project, especially one involving a new technology. Integral to gaining this support is the ability to create a thorough awareness of the technology (e.g., expert systems) within the company. This awareness, especially at the upper levels of management in thecompany, should help in gaining the financial and moral support from top management in order to go ahead with the project. Recognizing the internal politics, organizational culture, and external climate of The Corporation are essential elements where the development team must have strong sensitivity.
Another important lesson learned is to strongly involve the expert(s) and users in helping to gain support for the expert system project. In this case, the expert (who was the only person who knewthe different product lines for configuration) should have been used in a more vocal capacity in order to urge top management that the company needs this expert configuration system for productivity, training, and longevity purposes. If the expert were to leave the company, the configuration task would be extremely difficult to perform due to the lack of expertise in The Corporation in knowing the various product lines and associated configurations. This fact should have been emphasized more to top management in order to further convince them of the need for such a configuration system.
A potential major flaw in introducing expert systems to The Corporation may have been the chaotic state of the company. With firings, staff turnover, reengineering, and cost control measures rampant within the company, it would be difficult to introduce a new technology, like expert systems, within the firm. Even though the use of an expert system for configuration management was being marketed by the development team as a good business decision, there were too many other priorities that needed immediate attention by top management. Perhaps it would have been better to have stimulated interest in the project after the initial chaos had settled. There were too many high priority items on the platter for top management that needed attention.
Epilogue:
The birth of a new technology at The Corporation (namely, expert systems) is slowly emerging. It took about three months from the first time the words "expert systems" were uttered at TheCorporation to the time it took to saturate top management with the notion of expert systems. The best outcome of this project was creating an awareness of expert systems throughout thecompany. The Corporation took this important first step in bringing expert systems technology to the company. The hybrid approaches used to get the project underway at The Corporation were very successful in terms of introducing expert systems technology to The Corporation's employees and management.
Knowing the corporate climate and culture was an important lesson learned from this experience. Having an appreciation for the organizational structure, internal politics, organizational barriers, and possible resistance to change were key concepts that should have been appreciated more than just understanding the technology. Also, trying to implement a new technology in a chaotic environment (due to the recent acquisition and resulting restructuring of The Corporation) was a difficult task indeed.
This case study hopefully illuminates some useful techniques that other companies may use to create an awareness of expert or intelligent systems within the organization for eventualexpert/intelligent system funding and support. A critical concept is a thorough appreciation for understanding the "management" of the technology versus just the technology itself. After all, without careful attention to these matters, the project may be a technical success but a technology transfer failure.