Impacts of Complexity on Project Success

Commentary: This is the relevant portions of an extensive paper written in my Masters of Information Technology coursework.  The paper highlights a common concern among many project managers. That is the lack of quality information early in a project especially in complex projects.  The overall paper proposed research into project complexity and early planning efforts.

Impacts of Complexity on Project Success

by

JT Bogden, PMP

Introduction

Project management practice and principles have been maturing and continue to mature. The general paradigm to plan well applies to early project planning and has a significant influence on the success or failure of a project. This research is in support of identifying the key relationships between influential factors affecting scope and risk in complex projects during early project planning. Attention to the complexity is important since the nature of information technology, IT, projects are complex. Complexity tends to increases risk. "Project abandonment will continue to occur -- the risks of technology implementation and the imperfect nature of our IT development practices make it inevitable" (Iacovou and Dexter, 2005, 84). Therefore, this study is focused on the early information technology project planning practices when the project is vague and the outcomes are unknown and unforeseen. The purpose is to better manage scope gap early.

Problem Statement. Poor scope formulation and risk identification in complex projects during the early planning have lead to lower project performance and weakened viability. Therefore, project managers are challenged to manage these issues early in order to increase the project's viability and success.

Argument.  Project complexity influences performance just as taking shortcuts in a rush for results causes an outcome with complexity like characteristics. Lower performance outcomes may result from project essential factors relating to scope and risk objectives that are overlooked or not properly managed resulting in increased cost, delays, and/or quality issues that jeopardize the projects viability and success. 

Body of Works Review

This effort intends to explore the significant body of works that has emerged to date. Literature research was conducted across a diversity of project types in support of the research problem statement that poor scope formulation and risk identification of a complex project during the early planning affect project performance and project viability in relationship to complexity of the project. This is by no means the first time research of this nature has been explored in these three areas; scope definition, risk identification, and project complexity. 

The common threads in the body of works that has emerged spans decades to include project management as a whole, risk and scope factors that affect project success, information and communications challenges, and complexity impacts on scope and risk. The works researched in other disciplines provide many transferrable lessons learned. For example, construction and engineering projects have in common to information technology projects complexity issues as well as information reporting and sharing concerns. Other works from supporting disciplines contribute to factors on education, intellect, and learning in support of competency influences on risk. A 2001 trade publication article indicated that causes for failed projects tend to be universal.  The article's author, John Murray, concludes that information technology projects fail for a small set of problems rather than exotic causes (Murray, 2001, p 26-29).

In a 2008 construction project study, the researchers discussed the construction industries front end planning which is explained as the same as the project charter process. The works details a study of fourteen companies and their project planning processes then presents a model process. The study results are summarized into critical criterion of success. In conclusion, fifty percent of the projects did not have required information for front-end planning activities. Problem areas were identified in a follow on study to include weak scope and risk identification as well as other basic issues (Bell and Back, 2008).

The problems of scope definition researched in the body of works indicates that cooperative planning and information sharing have been key factors in developing scope. A 2007 study on concurrent design addressed the complexities and risk of concurrent design projects. The researchers posed a model of interdependent project variables. The linkages illustrate the direction of the communications or information sharing between the variables. In the researcher's analysis they conclude that through cooperative planning in the form of coupling and cross-functional involvement significantly reduce rework risk. Early uncertainty resolution depends on cross-functional participation (Mitchell and Nault, 2007).

The Technology Analysis and Strategic Management Journal published an article in 2003 discussing outsourcing as a means of risk mitigation. The outcome of the case under review was project failure due to a lack of clear requirements and poor project management. This was attributed to conflict and a loss of mutual trust between the outsourced vendor and the information technology client. The result was one vendor cutting losses due to weak commitment when compared to in house project support. The researcher suggested that shared risk may be effective in a partnership such as outsourcing but requires strong communication and some level of  ownership (Natovich, 2009, p 416).  This article's case study illustrates that cooperation is critical in information technology projects. A 1997 study discussed mobilizing the partnering process in engineering and construction projects during complex multinational projects. Researchers argued developing project charters fostered stronger partnerships and reduced risk. In general, the article promotes a shared purpose supported by a method based on vision, key thrusts, actions, and communication. The works offers management practices and predictors for conflict resolution and successful projects. One of the best predictors of success in high performance project managers is the ability to reconcile views rather than differentiate; influence through knowledge; and consider views over logic or preferences (Brooke and Litwin, 1997).

The literature has also indicated competencies of project members and conflict resolution have been key factors of interest. Northeastern University's explored strengthen information technology project competencies having conducted a survey of 190 employers finding that employers considered hands on experience, communications ability, and behavioral mannerism of the student among other attributes. The researcher makes a call for a mixture of improvements to student curriculum that involves project management skills both visionary and hand-on as well as group interaction (Kesner, 2008).  The efforts to strengthen competencies have not only been in traditional education institutions but also in professional organizations such as the American Institute of Certified Public Accountants (AICPA). A 2008 article discussed the accounting industry's approach to identifying and correctly placing information technology staff based on assessed competency levels. The AICPA is using a competency set that is found cross industry and levels of skill ("IT Competency", 2008).  Some dated literature is also indicating that in order to solve vague problem sets within complex project has centered on a willingness and ability to engage the vague circumstances, to think abstractly.  A 1999 psychology publication discussed the typical intellectual engagement involving a desire to engage and understand the world; interest in a wide variety of things; a preference for complete understandings of a complex problem; and a general need to know. The study associated intellect with the typical intellectual  engagement their environment in an intellectual manner, problem solve, believe they possess greater locust of control over the events in their lives (Ferguson, 1999, p 557-558).  Additional research is necessary in this area with this work being so dated.

In a 2006 article researchers sought to understand reporting to senior manager methodology regarding software development projects. The works discussed reporting and governance in an organization then break into four functional areas and further refine the best practices into a common view.  The researchers noted that little attention has been given to how senior managers and the board can be informed about project progress and offered several method of informing them. The researchers reported that senior managers need information grouped into three classes; support decisions, project management, and benefits realization assessments. The researcher then discusses a variety of reports and their attributes. The researchers concluded that senior managers and board members need effective reporting if they are to offer oversight to the software development project (Oliver and Walker, 2006).  Another 2006 study indicated that continuous reporting, information sharing, builds the case for compelling board member involvement based on four factors: cost overrun history, material expenditures, [software] complexity, and any adverse effects on the company (Oliver and Walker, 2006, p 58).

The challenges of project complexity management have utilized information technology governance as a key factor in project success.  Information technology governance has been sought as a framework to align organizational goals with project goals.  In a 2009 qualitative study, researchers sought to treat information technology governance, change management, and project management as closely related then stated a premise that information technology governance must be governed to ensure that problems due to weak governance are corrected.  They postulate the question how much information technology governance is a requirement. Then they organize information technology governance into three broad groups; corporate governance, scope economies, and absorptive capacity exploring these groupings. The researchers finally relate information technology governance to the enterprise at all levels discussing results of a survey given to numerous actors in the organization's CRM [Customer Relationship Management] projects. They also found that most companies surveyed had risk and problem management programs that were mature rather than given lip service. The problem areas that stood out were communicating with senior management as well as consultants and vendors. In conclusion, the researchers remark that information technology governance depends on senior management involvement and sound project management ability (Sharma, Stone, and Ekinci, 2009).

Given scope, risk and project complexity, information technology governance offers a framework for unifying organizational objectives.  Research completed in 2009 showed that information technology governance covers all the assets that may be involved in information technology, whether human, financial, and physical, data, or intellectual property (Sharma, Stone, Ekinci, 2009, p 30).  The same research has also shown that information technology governance required top down involvement stating that successful implementations of information technology governance depends on senior management involvement, constancy, and positive project management abilities (Sharma, Stone, and Ekinci, 2009, p 43).  Senior management requires information to be shared and a 2006 project journal publication supports remarking that continuous reporting builds the case for compelling board member involvement based on four factors: cost overrun history, material expenditures, [software] complexity, and any adverse effects on the company (Oliver and Walker, 2006, pp 50-58).

The body of works while much broader than sampled and demonstrates support and strength in a number of areas of the problem statement.  The literature selected ranges in date from 1997 to 2010 with the greater portion of the works were more recent, 2007 or thereafter. Some of the areas of work are dated or sparse. This indicates a need additional research such as in the area of problem solving abilities in vague or unclear circumstances.  While much of the research was across several industries principally from industry and trade journals in information technology, general construction, or engineering the project management principles and findings transferrable between project types. The works were also with several academic studies and only two open source articles.  Most of the works were authoritative under peer review. The dated works were cited more frequently than the more current works as to be expected.

The compelling thread line in the body of works is that scope and risk concerns influenced by project complexity with cooperation, information sharing, conflict resolutions, and competencies as significant factors in project success.

Discussion

Technology projects are challenged with a variety of factors that contribute towards the performance of the project. The body of works indicates that risk and scope complicated by project complexity directly influence project success from the outset. Thus, early project planning is crucial toward success. The body of works relating to the elemental aspects of competencies, information, cooperation, and conflict management offers historical support to risk and scope formulation. The one point that seemed to standout is information sharing and flow at all levels.  Additional research is necessary into the body of knowledge behind successful project managers and the relationship to the ability to reason through complex and obscure project problem sets as related to project related competencies. Dated literature indicates a relationship between the positive locust of control and willingness to engage abstract problems.

Commentary: I suggest that compartmentalizing a complex project into smaller projects should strengthen the locust of control and improve problem solving challenges. In short, the smaller problem set is more easily grasp than an overwhelming large set of problems. Thus, reducing risk and strengthening scope definition.  In breaking a complex project into smaller achievable projects, the organization will gain greater control over the entire process and gain incremental successes towards the ultimate goal. Continuous improvement would characterize such an evolution.  The master project manager must assess the order in which the smaller projects are completed. Some may be completed simultaneously while others may be completed sequentially. 

A risk of scope creep may be introduced as an outcome of mitigating scope gap. To remain focused all the projects must align with the organizational strategic objectives as they take strategy-to-task. New ideas need to be vetted in meaningful ways for the organization and aligned with the overall objectives in a comprehensive change management plan. 


Communication is also essential in managing complex projects. The use of a Wiki as a point of  foundational policies and information is often a best practice. 

Large scale sudden disruptions of an organization are required under certain circumstances. However, in most circumstances complex projects need to be properly broken into smaller manageable efforts then become part of a continuous improvement effort within the organization. 

References

(2004). Skills shortage behind project failures. Manager: British Journal of Administrative Management, (39), 7. Retrieved from Business Source Complete database.

(2008). AICPA's IT competency tool takes you down the path to success!. CPA Technology Advisor, 18(6), 60. Retrieved from Business Source Complete database.

Brooke, K., & Litwin, G. (1997). Mobilizing the partnering process. Journal of Management in Engineering, 13(4), 42. Retrieved from Business Source Complete database.

Chua, A. (2009). Exhuming it projects from their graves: an analysis of eight failure cases and their risk factors. Journal of Computer Information Systems, 49(3), 31-39. Retrieved from Business Source Complete database.

Ferguson, E. (1999). A facet and factor analysis of typical intellectual engagement (tie): associations with locus of control and the five factor model of personality. Social Behavior & Personality: An International Journal, 27(6), 545. Retrieved from SocINDEX with Full Text database.

Bell, G.R. & Back, E.W. (2008). Critical Activities in the Front-End Planning Process. Journal of Management in Engineering, 24(2), 66-74. doi:10.1061/(ASCE)0742-597X(2008)24:2(66).

Iacovoc, C., & Dexter, A. (2005). Surviving it project cancellations. Communications of the ACM, 48(4), 83-86. Retrieved from Business Source Complete database.

Kesner, R. (2008). Business school undergraduate information management competencies: a study of employer expectations and associated curricular recommendations. Communications of AIS, 2008(23), 633-654. Retrieved from Business Source Complete database.

Kutsch, E., & Hall, M. (2009). The rational choice of not applying project risk management in information technology projects. Project Management Journal, 40(3), 72-81. doi:10.1002/pmj.20112.

Mitchell, V., & Nault, B. (2007). Cooperative planning, uncertainty, and managerial control in concurrent design. Management Science, 53(3), 375-389. Retrieved from Business Source Complete database.

Murray, J. (2001). Recognizing the responsibility of a failed information technology project as a shared failure. Information Systems Management, 18(2), 25. Retrieved from Business Source Complete database.

Natovich, J. (2003). Vendor related risks in it development: a chronology of an outsourced project failure. Technology Analysis & Strategic Management, 15(4), 409-419. Retrieved from Business Source Complete database.

Oliver, G., & Walker, R. (2006). Reporting on software development projects to senior managers and the board. Abacus, 42(1), 43-65. doi:10.1111/j.1467-6281.2006.00188.x.

Seyedhoseini, S., Noori, S., & Hatefi, M. (2009). An integrated methodology for assessment and selection of the project risk response actions. Risk Analysis: An International Journal, 29(5), 752-763.

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Sharma, D., Stone, M., & Ekinci, Y. (2009). IT governance and project management: A qualitative study. Journal of Database Marketing and Customer Strategy Management, 16(1), 29-50. doi:10.1057/dbm.2009.6.

Skilton, P., & Dooley, K. (2010). The effects of repeat collaboration on creative abrasion. Academy of Management Review, 35(1), 118-134. Retrieved from Business Source Complete database.

Sutcliffe, N., Chan, S., & Nakayama, M. (2005). A competency based MSIS curriculum. Journal of Information Systems Education, 16(3), 301-310. Retrieved from Business Source Complete database.

Vermeulen, F., & Barkema, H. (2002). Pace, rhythm, and scope: process dependence in building a profitable multinational corporation. Strategic Management Journal, 23(7), 637. doi:10.1002/smj.243.

Caterpillar Leverages Information Technologies for Sustainable Growth

Comment: This was a paper I wrote in 2008 on Caterpillar's use of technology. I thought it highlighted many interesting points. 

Caterpillar Leverages Information Technologies for Sustainable Growth

by

JT Bogden, PMP

Business is warfare based principally on sage utilization of information which is a key factor determining success in business. Caterpillar has long recognized that access to accurate information in order to build actionable knowledge is critical to business success. Caterpillar is a complex global enterprise operation based out of Peoria, Illinois that through well tuned information management is achieving incredible success. Sales revenues during 2007 exceeded forty four billion dollars. (Caterpillar, 2007, Annual Rpt p 33) Enterprise growth goals by 2010 are projected to exceed fifty billion dollars. (Caterpillar, 2007, Annual Rpt p 27) This expansion of the revenues is coming with solid vision and sage business design. Caterpillar’s vision centers on sustainable development utilizing a strategy of innovation and technologies in support of the company’s objectives. (Caterpillar, 2007, Shape Rpt p 36). This means information and the requisite systems are principle to analysis, rapidity of decision making, and identification of actionable business opportunities.

Intellectual Capital Drives Innovation

Many professionals in business incorrectly believe intellectual capital, IC, is simply good ideas that become proprietary because of the station at which the idea was imagined. As an outcome, these professionals believe a company has a legal claim to a good idea. The reality is that good ideas are abundant as nearly everyone has a good idea but most lack the means to put the good idea into effect.

Intellectual capital is better thought of as knowledge that can be converted into commercial value and a competitive advantage resulting in intellectual assets of the company. The conversion of knowledge into commercial value requires a means to codify the knowledge into an intellectual asset. In order to achieve this companies provide structural capital in support of the human capital to gain access to intellectual assets. Thus, IC results from human and structural capital operating in an unique relationship forming intellectual assets. Companies distinguish their operations from the competition by combining knowledge and the infrastructure in differing ways. The process of converting knowledge into intellectual assets results in the innovation that companies seek to commercialize (Sullivan, 1998, p23).

According to the book The Innovator’s Solution by Clayton Christensen innovation in business means growth resulting from the introduction of something new that can be exploited for commercial value. Christian further explains that sustainment growth focuses on delivering new and improved benefits to high-end customers. He then comments that companies are more interested in disruptive growth which results in reduce cost, simplicity, and new directions. Introducing something new is often thought of as unpredictable which is not desirable to most companies. Christensen believes the key to innovative success is not predicting human conduct as rarely does innovation come from a single human fully developed. Instead, He comments that companies must understand the forces that act on humans. What this means is that when innovation is managed through design there is predictability then companies are more readily apt to embrace the change.

In the classic understanding of design, there are three characteristic aspects; the visceral or how the design looks, behavioral relating to the designs functionality, and reflective qualities that provoke thought. In classic design beauty is also found. Good designs demonstrate beauty through harmony and fluid execution. As companies increase in size and complexity the problem of accessing knowledge becomes exponentially difficult. Communicating messages between the top intent and bottom action can become confused and misdirected if not properly managed. Thus, a reliance on finely tuned information technologies becomes an imperative.

Caterpillar has exercised deliberate efforts to employ information technologies that demonstrate good design. For example, a visual imaging company, Real D-3D, posted a company website an article regarding Caterpillars’s need to speed engineering projects to market by employing visualization technology in a project called “CrystalEyes”. According to this article a key feature of the CrystalEyes project was to make the information tool simple to use for engineers and clients alike that eliminated prototyping iterations as well as the tool also had to be cost effective, cross platform, and easily integrated with existing systems. These requirements demonstrated behavioral qualities of a good design. Real D-3D described “CrystalEyes” as a stereographic imaging tool that is an improvement beyond the ghostly holographic effects that met all the design criteria. They were describing for example, designs that can simulate in 3-D the full effect of parallax and other phenomenon related to stereoscopic imaging. Thus, “CrystalEyes” illustrated the visceral elements of a good design. The benefit CrystalEyes delivered was a high performance design visualization tool that eliminated physical builds until the very end. (Copy Editors, Real D-3D) Using the CrystalEyes tool afforded clients and engineers alike the ability to fully understand a design in work provoking thought or the reflective qualities of good system design throughout the engineering iterations.

Management Information Systems Build Decision Support SubSystems

Management information systems, MIS, are complex. These systems come in a variety of technologies and capabilities. One size does not fit all operations. In general MIS involves, at least, three elements; a network or hardware lay down, supported management concepts, then integrated decision analysis and reporting. Through the combinations of these elements companies are able to leverage themselves in competitive ways and provide the infrastructure for innovation.

Caterpillar leads the industry with decision support subsystems. Data is infused into the creation of products and services in support of growth that is collected from significant customer segments and Caterpillar’s geographically dispersed operations. The systems span over two hundred independent dealers globally and their proprietary networks. Caterpillar’s efforts include numerous projects and software tools that fuse these systems together and include but are not limited to:

• VIMS: Vital Information Management System is a vehicle borne alert system that assesses the equipment’s safe and optimal operating condition. When a problem begins to emerge or is discovered the system alerts the operators and owners then provides safe shut down procedures if necessary. This enhances the service life of the equipment and is an decision support subsystem.
• Product Link: A wireless system that simplifies the work of tracking the fleet providing assets management information. Product link couples with VIMS.
• Paperless Reporting: A wireless project that integrates Dealer Business systems and Service Technician’s Workbench with field service technicians reducing errors and streamlining data entry requirements.
• EquipmentManager: Software designed to report fleet performance and manage assets. This application is the owner’s frontend that presents the VIMS and product Link performance information on demand in meaningful ways.
• VIMS Supervisor: Vital Information Management System Supervisor Software provides custom fleet production and maintenance reports by extracting data from a VIMS Database.
• Caterpillars authoring system: A system that is both an information consumer and producer organized to streamline global technical publication operations.

The VIMs, Product Link, Paperless reporting, and the authoring projects are of particular interest as they are subsystems that impact a sequence of other systems ultimately feeding up to top level decision support systems.

Product Link Pools Global Equipment Performance Information

Caterpillar introduced a subsystem called “Product Link” that leverages equipment performance information collected by VIMS towards decision support. “Product Link” is a management tool that tracks and gathers information about Caterpillar’s earthmoving equipment. An online HUB Magazine article written by Caterpillar’s Information Centre discussed the subsystem as composed of two antennas, a data module, and interconnecting wiring. They explain that one antenna collects GPS data while the other antenna provides bidirectional communication with the network operations center. The data module referees the collection of performance and GPS data as well as instructions from the network operations center. Information collected is transmitted to a Caterpillar network operations center wirelessly through low Earth orbit, LEO, satellites. At the network operations center the information is further evaluated then reports are prepared and sent to the equipment owner. Equipment owners are able to access the information over the Internet using the “Equipment Manager” software.

The benefit to both parties is essential to asset management with improved service life of the equipment, reduced down time, and strengthened return on the investment according to Caterpillar. These have been principle reasons the customer purchases Caterpillar equipment. Therefore, understanding the equipment utilization, location, and performance data helps Caterpillar design heartier equipment meeting equipment owner expectations.

This subsystem has seamless operation with the equipment reporting to the Network Operations Centre where the data is collated and eventually is rolled up to into top level decision making support systems demonstrating beauty in the design’s fluidity. The information provided to the owner through “EquipmentManager” answers concerns about utilization, security, and uptime according to Caterpillar further illustrating functionality and reflective utilization of the design.

Paperless Reporting Links Field Service Technicians Into Global Systems

A case study was researched and published in Directions Magazine by Mike DeMuro, Product Support Manager for Michigan Caterpillar, regarding a Michigan Caterpillar’s paperless project initiative. According to the article Michigan Caterpillar field service technicians were experiencing time consuming and error prone process in their dispatch system reporting. Technicians were using an antiquated process of paper forms that were transcribed onto the system in the classic data entry manner. In some cases, information was passed verbally and transcribed days later. Often the information was incomplete or erroneous. Caterpillar sought to streamline the process. A statewide centralized dispatch system was in order to form a mobile office assesses DeMuro.

DeMuro explains that the design of the system utilized an enterprise data integration service that offered both cellular and satellite coverage. Caterpillar’s Dealer Business System and Service Technician’s Workbench was integrated into the enterprise data integration service and Microsoft Outlook. After data was entered once into the system, technicians could drop and drag data into Outlook templates and distribute the data without error prone re-typing. The emails were received by servers and scripts parsed the data into the other systems further reducing errors and increasing productivity. This created a paperless culture of online forms that transmitted data wirelessly between service vehicles equipped with the system and staff functions. DeMuro further claims the benefit of this innovative approach radically improved billing cycles, accuracy, and timeliness of data reporting. Other first order benefits lead to reduce overhead for data re-entry, increase productivity and revenue generating hours, timely parts delivery, and seamless integration of systems. This resulted in secondary effects of improving cash flows and accounting for receivables explains DeMuro.

Again Caterpillar was able to achieve beauty in its seamless design for field service technician reporting. The error rates were subject to initial data entry and additional entry was eliminated leading to very productive functionality of design. The data gathered is cascaded through to higher level systems for further evaluation.

Technical Authoring System Forms Intellectual Assets

Caterpillar was experiencing problems with the technical publications accuracy, timeliness, and availability. There were over 300 products with some having lifecycles as lengthy as 50 years. Compounding this immense data requirement was operations in 35 languages. Therefore, in the late 1990’s Caterpillar envisioned a need for a better method of managing this labor intensive effort of technical documentation. They pursued innovation by taking advantage of emerging Standard Generalized Markup Language, SGML, standards that overcame the limitations of the existing methods. The introduction of the new approach delivered levels of efficiency based on reuse and automation that had never been observed.

Caterpillar began by creating a Technical Information Division, TID, that had the global responsibility of producing the documentation necessary to support operations. They expanded the technical documentation staffing by 200% then organized the automated publishing system, the structural capital, which enabled the staff’s effectiveness to deliver the technical documentation or intellectual assets. These assets included maintenance manuals, operations and troubleshooting guides, assembly and disassembly manuals, specification manuals, testing and special instructions, adjustment guides, and system operation bulletins.

In the design of the authoring system, Caterpillar took a modular approach to information creation and automated where possible. The system designers built on top of industry standards and even utilize MIL-PRF-28001 for page composition. They utilized reusable ‘information elements’ that are capable of being utilized in multiple formats and forms. This approach drastically reduced cost associated with creation, review, revising, and translating information. Through automation of a document formation and information elements, Caterpillar was able to achieve collaborative authoring that trimmed time-to-market and permitted increased focus by subject matter experts that strengthen the quality of the product. The efficiencies achieved staggering improvements in work flow and analysis, document development, style sheet designs, and legacy conversions. In the end, Caterpillar experienced accuracy, timeliness, and availability of technical information that became of immense commercial value and competitive advantage.

Caterpillar’s copyrighted technical documentation is of such immense value that criminal elements have attempted to exploit this information. In May 2002 Caterpillar’s digital library of parts and product catalogues, service manuals, schematics, tooling data, and product bulletins was compromised. U.S. customs reported that they had seized a half million dollars in counterfeit Caterpillar technical documents. This criminal activity demonstrates that the value of well designed intellectual assets can be of significant value as well as vulnerable.

Data Warehousing Efforts Consolidate Enterprise Data

Designing solid data management methods are critical to business success. MIS approaches decision making generally from the process such as a purchase order process whereas decision support systems tend to focus on conduct and behavioral characteristics such as fuel consumption trends. This requires data gathered to be stored, parsed, and analyzed in ways that support strategic decision making over operational management of the operations. The outcome of a well designed data warehousing system is equipment managers shift their focus from operational level decision making to corporate level strategic decision making regarding asset management.

Data marts are working subsets of larger primary database systems used to present unique views on subject matter topics. These data marts are then organized in a way to permit multi-dimensional modeling of the operations. This multi-dimensional model is called the data cube. Online Transaction Processing, OLTP, and Online Analytic Processing, OLAP, usher data routinely into the data cubes and conduct ongoing analytic evaluation of the data in support of on demand or real time review. These tools have also been advanced over the Internet permitting decision support system authorized users to conduct the analysis they are seeking.

The benefits of data warehousing involve better end user control of the data analysis, improved tooling for identification and investigation into problems, strengthened strategic decision making, and improved knowledge discovery. Data warehousing is the foundation of computer aided construction equipment and asset management.

Caterpillar has sought a global data solution and chose TeraData Inc as its business partner in March 0f 2008. TeraData business decision support solution is comprised of component products built on top of the “Active Data Warehouse” product. The component products provide intelligence, analytics, and other support services to decision making.

The Active Data Warehouse product is the underpinning of their services and refers to the technical aspects required to achieve the desired objectives of the data warehouse. This database is designed to receive the feeds from mature MIS subsystems such as Caterpillar’s VIMs, the paperless reporting, and Authoring subsystems. This results in a repository of data that possesses high confidence of data accuracy. The database can be utilized in ordinary MIS support to ecommerce, portals, and other web applications but has greater impact when coupled with decision support applications. With the confidence in the data accuracy, complex reporting and data mining that can be generated on tactical or short notice queries in near real time makes this solution a powerful tool. This capability originates from TeraData’s strategy built on the findings of a 2001 Gartner report that data marts cost 70% more per subject area than a comparable traditional data warehouse. (Sweeney, 2007). TeraData seeks to consolidate data marts, reduce redundancy, and streamline the data loading process into a centralized analytic source in effect creating a massive sole source data mart equivalent to the enterprise wide data set. This streamlining is consistent with Caterpillar’s desires to innovate through technology resulting in the 2008 agreement to improve Caterpillars decision support.

Business Intelligence Products Strengthen Decision Support

TeraData’s component products include a suite of applications that utilize Caterpillar’s enterprise wide data warehouse for analytic and intelligence reporting. Tools in this suite includes strategic and operational Intelligence applications, data mining tools, modeling software, and analytical tool sets that handle extremely large datasets looking for criminal conduct as well as emerging trends. Included also in the suite are maintenance and management tools.

Bringing Information Technology Projects in Focus

Caterpillar brings together disparate systems into a symbiotic global information presence through network operation centers, communication networks, and data processing methods and systems. The elements of good design are observed throughout the systems at Caterpillar and create a culture that promotes innovation whether that is technical publication, engineering, or field management of the equipment. With this foundation in place Caterpillar began a process of increasing vertical accuracy across their systems into decision support systems. The disparate enterprise data is rolled up into the decision support systems data warehouse and requisite set of tooling establishing a formidable competitive instrument. Agreements with TeraData in early 2008 lead to solutions to implement near real time reporting with increased accuracy. As an outcome, Caterpillar has propelled to the forefront of heavy equipment manufacturers to become the industry leader with growth projections that eclipse the competitors. Nonetheless, Caterpillar is restless. Becoming number one in the industry is simply not enough for this giant.

The Future is Bright

Caterpillars positioning in the industry as the leader is not the end state for this company. One concept of business is that no company makes a profit over the long term. The purpose of any business is to be a vehicle that provides income and dignity to human life. In executing this concept principles and moral responsibilities are assigned to companies and governed a cooperation between government and industry. Caterpillar has taken on the next evolution of large corporations, corporate governance. They define their vision in a sustainability report called “Shape”. The term shape is a key notion that is inclusive of the forces that forge innovation in the shaping of knowledge into business plans. Caterpillar has identified the pillars of its “Shape” initiative as:

• Energy and Climate: Caterpillar realizes the importance of energy security and the impact energy consumption by the equipment has on the ecology.
• Growth and Trade: Expanding economies and international business are important to sustainable operations.
• People and Planet: Caterpillar equipment builds economies and lifts people out of poverty.
• Further and Faster: Shape take form over time then accelerates as the vision organizes. Caterpillar must be willing to drive the vision beyond that which is currently known in order to embrace the future of sustainability.

Using caterpillars systems and technologies, the company is actively seeking and organizing a plan to reach for the moral high ground and is embracing corporate governance. Caterpillar’s equipment is known to move mountains. In time, as corporate governance takes shape Caterpillar will emerge as a social force that levels societal inequities while elevating human dignity around the globe. Humans will have jobs with disposable incomes, improved roads, hospitals, and strengthened economies built by Caterpillar’s equipment and backed by Caterpillar’s social conscience.

References:

1. Bartlett PG, 1997, “Caterpillar Inc's New Authoring System”, SGML Conference Barcelona 1997, Retrieved October 15, 2008, http://www.infoloom.com/gcaconfs/WEB/barcelona97/bartlet8.HTM#
2. Caterpillar Public Affairs Office, 2007, “2007 Caterpillar Annual Report”, Retrieved October 10, 2008, http://www.cat.com
3. Caterpillar Public Affairs Office, 2007, “Shape: Sustainability Report”, Retrieved October 10, 2008, http://www.cat.com
4. Caterpillar Public Affairs Office, 2008, “Caterpillar Logistic Services Inc Web Site”, Retrieved October 12, 2008, http://logistics.cat.com
5. Christensen, Clayton M, (2003), “The Innovators Solution”, (1st ed), Boston Massachusetts, HBS Press
6. Copy Editor, ”Caterpillar moves Mountains in Speeding Time-To-Market using CrystalEyes and Stereo3D Visualizations”, Real D-3D, http://reald-corporate.com/news_caterpillar.asp
7. Copy Editor, July 2007, “New-generation Product Link system from Caterpillar improves asset utilization and reduces operating costs”, HUB, Retrieved Octover 18, 2008, http://www.hub-4.com/news/633/newgeneration-product-link-system-from-caterpillar-improves-asset-utilization-and-reduces-operating-costs
8. DeMuro, Mike, April 2005, “Michigan CAT Case Study”, Directions Media, Retrieved October 17, 2008, http://www.directionsmag.com/article.php?article_id=823&trv=1
9. Eckerson, Wayne W., (2007), “Best Practices in Operational BI: Converging Analytical and Operational Processes”, TDWI Best Practices Report
10. Hongqin Fan, 2006, “Data Warehousing for the Construction Industry”, NRC
11. Schwartz, Evan I., (2004), “Juice: Creative Fuel that drives World Class Inventors”, (1st ed), Boston Massachusetts, HBS Press
12. Sullivan, Patrick H., (1998), “Profiting from Intellectual Capital: Extracting value from Innovation”, (1st ed), New York, John Wiley & Sons, Inc.
13. Sweeney, Robert J., (2007), “Case Study: TeraData Data Mart Consolidation ROI”, TeraData Corp.

ITIL Affects Measurable Organizational Value

Commentary:  This posting has had over 3500 reads and is in the top all time posts.  

ITIL Affects Measurable Organizational Value

by

JT Bogden, PMP

ITIL, Information Technology Infrastructure Library, is an emerging standard that congeals and stabilizes best practices for information technology implementations within an organization. The standard focuses on service delivery levels and operational guidance. Wrapped up in these two focus areas are activities that were already in practice in many organizations and are now focused under the ITIL standard. The standard now offers a baseline from which to establish an organizations service level and system performance. But what does that mean in terms of Measurable Organizational Value, MOV?

The first thing we must understand is MOV is aligned with the organizations strategy and it's ability to extract benefit from it's efforts. MOV is not about how well the company or it's staff do their jobs. Instead, MOV relates to the achievement of strategic objectives the organization seeks.  The strategic objectives could involve many aspects of the organization to include sustainability and profitability as well as corporate governance objectives.

The measurement of organizational value closely follows Effect Based Outcomes, EBO, methodology. In EBO objectives are established. Each each objective may have two or three associated effects. Each effect may have one or two Measurements of Effectiveness, MOE's. For example, the following objective, effects, and MOE's may be typical of a company launching a social media campaign.

  O.1 Promote a social media campaign

         E.1.1 An increase/decrease in customer awareness of services

              MOE.1.1 The number of customer queries about the services

         E.2.1 An increase/decrease in customer participation of service design

              MOE.2.1 The number of service enhancement suggestions

An additional element, indicators, are used to establish decision points and refocus resources. For example, once customer suggestions reach 100 per week a decision is made that the customer participation program is mature. Funding for this program is rolled back to sustainment levels and the money is refocused into other efforts. The MOE is then monitored continuously for a decision point when a decrease to 50 customer suggestions per week is hit. Then resources are allocated to increase awareness to the program. This is typical MOV initiative to sustain  the desired effects and objective achievement.

Throughout the organization, various factors affect the availability of resources used to achieve MOV. ITIL provides a framework for managing those resources. Essentially, ITIL impacts MOV in many ways. While MOV is focused on organizational objectives, how well the organization stays focused and executes its tasks contributes to improved or strengthened MOV. For example, Activities that:

• Reduce costs. 
• Improve IT services through the use of proven best practice processes.
• Improve customer satisfaction through a more professional approach to service delivery.
• Support standards and guidance.
• Improve productivity.
• Improve use of skills and experience.
• Improve delivery of third party services through the specification of ITIL or ISO 20000 as the standard for service delivery in services procurements.

ITIL has an impact on available resources that are applied to improve MOV initiatives.  Additionally, ITIL is linked to MOV through its service levels which are tied to strategic objectives of the organization. 

• Service Strategy. The service strategy aligns IT with the business objectives which are measured in terms of MOV.
  
• Service Design. This structures the IT architectures in support of operations creating policies that impact MOV. Attention must be given to ensure that the policies are not counter productive but instead support the organizational objectives. Streamlined policies en-culture optimized processes and resource utilization increasing resource availability for MOV initiatives.
  
• Service Transition. This is focused on change management. The purpose of change management is to stay focused on the organizational objectives and avoid costly detours which can impact MOV if not in alignment.
  
• Service Operation. This covers delivery and control processes ensuring stability. All to often during the operations and maintenance phase environmental variations can lead the operations away from the objectives. This keeps the focus on MOV.
  
• Continual Service Improvement. This is concerned with 'tweaking' the IT service management. It wraps up best practices and processes like lean, Six Sigma, TQM, etc... in a incremental continuous improvement process. These are course corrections that emphasize MOV and increase reources available for MOV initiatives.

Overall, Measurable Organizational Value, MOV, is closely coupled to ITIL in terms of strategy-to-task service levels.  Systems of systems thinking ties all aspects of the organization into its productive achievement of MOV and its initiatives.

This posting has had over 700 reads and is in the top all time posts.  

Project Complexity Perplexes Procurements

Comment: This is a paper I wrote for a course on procurements.  If you have followed my blog posts you may have realized that I am a proponent of complex adaptive systems (CAS). I have found that CAS reflects natural relationships such that organizational latency is reduced, collaboration and information sharing increase, and problem solving occurs at the point of origin. The business or operation must be properly structured in order to take advantage of CAS. Once again, I have applied this concept to complex projects and procurements.  

Project Complexity Perplexes Procurements

by

JT Bogden, PMP

Introduction

One of the greatest challenges in project management is complexity which is common to mega-projects but also common to smaller highly integrated projects. Complexity occurs in many dynamic forms such as in scalability, relationships, tempo of the project, and due to self-organization. Complexity affects project procurement costs due to uncertainty in quantity and timing. In some cases, the actual procurements required remains in question until conditions emerge such that a determination can be made as in progressive elaboration events. The greater challenge is not the actual procurements but instead the management of or adaptability to emergent conditions while maintaining optimal procurements otherwise known as innovative procurements or simply innovation. In complex projects, the project procurement practices of plan, conduct, administer, and closeout fall short of providing the requisite level of management. How does a project manager design and implement procurement systems or programs that assure optimal procurement processes in the face of uncertainty driven by complexity?

Clarifying Project Complexity

A formal definition of mega-projects does not exist among scholars but the United States government defines mega-projects as major infrastructure projects exceeding US $500 million or projects that attract a high level of public or political attention due to impacts on the community, environment, or budgets (Li, Yanfei, and Chaosheng, 2009). Regardless of the definition or whether a highly integrated or mega-project, complexity is present and best described as projects that have a high degree of uncertainty and dynamic relationships among the participants. A closer look at complexity reveals the nature of the project culture. Scalability relates to sizing or the scale of the effort indicating the type of management and controls. Relationships among the participants such as serial, parallel, or nonlinear indicates the participant’s collaborative interest and willingness to cooperate. Self-organization traits of the project participants relate to the ability adapt to emergent conditions in order to learn and solve problems. The project tempo relates to the rapidity with which decisions must be made and the effort progresses. Projects operating under a compressed time line must make reliable decisions sooner than projects under normal time constraints. Optimal procurement processes are adaptive to the emergent conditions, minimize legal claims in the end, promote quality, and correctly specify materials and services. The project manager must bring these objectives into succinct focus while managing complex projects.

Procurement Planning

Many managers are realizing that the control of overall complexity is a strategic issue for the company (Isk, 2010, pp. 3681-3682). The process begins before the scoping and work breakdown structure is considered by surveying the ground conditions such as the form of complexity, anticipated project tempo, and the nature of the expected procurements in order to begin formulation of the management method.

Project managers reel over uncertainty and the lack of structure. Complexity is typically wrought with uncertainty causing project managers an uneasy sensibility. Somehow, project managers must apply structure to complex projects in order to stabilize the core focus areas and, in particularly, the project procurements. Complex environments rely on several key activities; information sharing, transparency, communications, and autonomy. These activities are necessary for the project participants operating under complex circumstances to adapt to emergent conditions otherwise known as the ability to innovate. Complex adaptive systems are the structure of complex environments that can facilitate the key activities. Complex adaptive systems, Figure 1, are composed of autonomous nodes and communication pipes between the nodes reflecting a molecular lattice. In this case, the autonomous nodes represent suppliers, work centers, stakeholders, and other project participants. The communication pipes between the nodes pass Information Exchange Requirements, IERs, over the pipes and possess the self-organizing capability of dynamically connecting and disconnecting from nodes as necessary. With this architecture in mind, project managers can begin to overlay policies and practices to manage the complex environment. "Owing to the inherent complexity, it is a challenge to coordinate the actions of entities across organizational boundaries so that they perform in a coherent manner (Surana, A., Kumara, S., Greaves, M., & Raghavan, U. 2005, p. 4241)."

Figure 1: Complex Adaptive Systems exchange information and self-organize

Supply Networks

Supply networks can be ‘dyadic’ to multi-firm groupings (Brady, 2011). The variety and uncertainty of a supply chain might be extremely high and cause complexity. A typical supply chain can often be complex as a large mesh having members with competing objectives in other supply chains that dynamically reform (Isik, 2010, p.3685). At the most basic level, supply networks vary in structure based on the predictability of demand and complexity of the finished goods. Regardless of the supply network’s detail, the complex adaptive construct can be mapped to it. The greatest concern for a project manager is the supply network’s ability to be responsive and solve problems autonomously or to be innovative. Supplier competitive and self-interest factors detract from the desirable traits of collaboration and innovation. The project manager must put all the traits into balance in order to keep cost low and innovation high.

The more complex, high technology, and high cost the product becomes the more significant systems integration becomes to the productive activity of the organization (Brady, 2011, p. 471). Complex adaptive constructs combined with program management provide such integration through teaming.

Procurement Management Program

Cost overruns of 50% are common; overruns of 100% are not uncommon. Project management is of enormous value to the success of mega-projects (Li, Yanfei, and Chaosheng, 2009, p. 100). The source of the cost overruns is uncertainty or risk. There are five main sources of risk; (1) Lack of buyer understanding of the requirements, (2) Language shortcomings, (3) Behavior of the parties, (4) Haste, and (5) Deception (Garrett, 2010, p. 50).

A procurement management program frames and provides guidance in order to address risk factors and strengthen the project procurement process such that cost overruns are reduced to acceptable levels. The underpinnings of a procurement program can be addressed in a structured manner the complex adaptive systems as the underpinnings. As indicated prior, optimal procurement processes are innovative and adaptive to the emergent conditions, minimize litigations or claims in the end, promote quality, and correctly specify materials and services. The objective of managing procurements in this manner is to derive value for the project.

The British Airport Authority was confronted with supplier conflict, poor information sharing, unwillingness to accept risk, and the lack of a consistent process among other issues. The solution embodied two main principles; the client always bears the risk and the work was to be carried out by integrated project teams. The British Airport Authority took on the role replacing the lead firm as systems integrator creating a framework of agreements that led to a value-creating supplier network (Brady, 2011, pp. 475-479).

The centerpiece of a program is the type of contracts and agreements made between the contractors or suppliers that leverage the complex adaptive systems traits. These agreements may be viewed as a teaming arrangement which is an agreement between two or more firms to form an alliance for their mutual benefit in a project (Fleming, 2003, pp. 36-37).

A system of agreements should be developed as part of the procurement management program that frame the level of collaboration and empowerment in a way to reduce destructive competition or conflict, properly assign risk, and solve procurement problems as they emerge. This was a success in the Heathrow terminal project where the approach consisted of four main components in the agreement; a single model environment, the use of preassembly, prefabrications, off-site testing, and just-in-time logistics (Brady, 2011, p. 477). One agreement should frame the project procurement structure as did the Heathrow project. Another agreement should frame guidance for cross-functional teams that strengthen collaboration, information sharing, and problem solving. This approach was a success in the SHRBC construction project where long term strategic cooperative partnerships yielded a high satisfaction with collaboration and looked forward to future cooperation projects (Li, Yanfei, and Chaosheng, 2009, p. 107). Other agreements with the procurement participants can be developed on an as needed basis. Once the framework for the procurement program is in place then the project procurement practices of plan, conduct, administer, and closeout, can be integrated into the overall management effort.

The project procurement practices will follow the Project Management Institutes model as closely as possible. This involves the Request for Information, Request for Quotes, and Request for Proposals as well as contract type selections. The procurement management program could have agreements that provide guidance to the participants in the procurement process regarding the project procurement practices in these areas. For example, several contract types could be utilized during the project in a strategic manner. Cost plus fixed fee could be used to reduce cost and manage high uncertainty as the risk management on the buyer and not a lead vendor who may pass the risk around. Firm fixed price contracts are ideal when uncertainty is low and places the risk on the contractor. Time and material contracts should be sparingly used but serve well in augment labor situations where the buyer has direct control and oversight of hours.

In the end, the agreements provide the necessary structure promoting a successful procurement management program.

Conclusion

Leveraging complex adaptive systems as the structural underpinning of complexity creates a framework for innovation that solves problems and increases value to the project. Layered on top of the complex adaptive systems framework is a system of agreements that frame the communications, information sharing, and collaboration as well as any other structures necessary for the management of the procurements in complex projects. Actors in the procurement process need adequate guidance to collaborate, share information, and communicate. In the Heathrow Terminal project, the British Airport Authority took on the role of systems integrator rather than allowing the prime contractor or lead supplier to perform this task. In doing so, a strategic supply network was created where the level of innovation had been considered low (Brady, 2011, p. 470). The system of complex adaptive framework, agreements, and the Project Management Institutes project procurement practices can provide the program management levels necessary to reduce cost overruns in complex projects.

References:

Brady, T. (2011). Creating and sustaining a supply network to deliver routine and complex one-off airport infrastructure projects. International Journal of Innovation & Technology Management, 8(3), 469-481.

Defense Systems Management College. (2008). Comparison of major contract types. [PowerPoint slides]. Retrieved from http://www.dau.mil/sites/locations/dsmc/default.aspx.

Flemming, Q. (2003). Project procurement management: contracting, subcontracting, teaming. (1st e.d.). FMC Press. California.

Garret, G. (2010). World class contracting (5th ed.). CCH, inc. USA. Isik, F. (2010). An entropy-based approach for measuring complexity in supply chains. International Journal Of Production Research, 48(12), 3681-3696.

Li, Z., Yanfei, X., & Chaosheng, C. (2009). Understanding the value of project management from a stakeholder's perspective: Case study of mega-project management. Project Management Journal, 40(1), 99-109. doi:10.1002/pmj.20099

Lind, D. (2012). Integrated project delivery for building new airport facilities. Journal Of Airport Management, 6(3), 207-216.

Project Management Institute. (2008). A Guide to the project management body of knowledge (PMBOK Guide). (4th ed.). Newtown Square, PA: PMI.

Surana, A., Kumara, S., Greaves, M., & Raghavan, U. (2005). Supply-chain networks: a complex adaptive systems perspective. International Journal Of Production Research, 43(20), 4235-4265. doi:10.1080/00207540500142274

Yeow, J., & Edler, J. (2012). Innovation procurement as projects. Journal Of Public Procurement, 12(4), 472-504.

Healthcare Information Virtual Environment System (HIVES)

Comment:  This post was an outcropping of a project we worked in my Master's Program. The problem set was complex and required the project team to scope, identify, then management risks, objectives, and the projects necessary to implement the overarching project. 

Healthcare Information Virtual Environment System (HIVES)

by

JT Bogden, PMP

Healthcare information systems have a vast array of various equipment, clinics, labs, governmental agencies, manufacturers, doctor offices, and innumerable other organizations providing, collecting, and processing information. Classic issues of stove piping or 'Silos' have emerged causing inefficiencies in the industry such as multiple lab test and/or diagnostics being prescribed. The advent of a nationalized health records system increases the complexity of these networks as well. In order to gain management and control over these information systems, the American National Standards Institute (ANSI) hosts the Healthcare Information Technology Standards Panel, (HITSP). This is one of several cooperative efforts, between industry and government to create standards. However, all too often the standards result in a highly complex architecture and system design to the chagrin of efficienies. This is because early standards and architectures often focus on resolving major issues with little forethought into the broader architecture. Many argue that little information is known or that the project is far too complex. Years later, this results in an effort to simplify and streamline the system again.

Allowing a Frankenstein architecture to emerge would be a travesty when our initial objectives are to streamline the healthcare processes removing redundancies and latencies in the current system. The planners should design the system for streamlined performance early. Large scale projects like these are not new and history tells us many good things. The evolution of complex systems such as the computer, the car, and the internet have emerged out of a democratization of design. Literally, tens of thousands of people have contributed to these systems and those models are one approach to resolving the large scale complex information systems involved in healthcare. What we have seen emerge out of the democratization of design is a standardization of interfaces in a virtualized environment. For example, the headlamps are nearly identical for every car with standard connectors and mounts even though the headlight assemblies are artfully different on each car. The computer has standard hardware and software interfaces even though the cards and software perform different functions. The virtual computer is independent of vendor product specifications. Instead, the vendor performs to a virtual computer standard in order for their products and services to function properly.

Let us take a moment to explain that virtualization is the creation of a concept, thing, or object as an intangible structure for the purpose of study, order, and/or management. The practice is used in across a breadth of disciplines to include particle physics and information science. Within the information realm, there are several different virtualization domains to include software, hardware, training, and management virtualization. My interest is not in the use of any specific virtualized technology but instead in exploring healthcare virtualization management as a practice.

I propose a need for a Healthcare Information Virtual Environment System (HIVES), Figure 1, which is essential to reducing complexity and establishing a standard for all those participating in the healthcare industry. The virtual environment is not a technological system. Instead it is a management system or space in which medical information is exchanged by participating objects within the virtual environment. Real things like clinics, offices, data centers, and equipment sit on the virtualized backplane or space.  HIVES would have a set of standards for participating equipment, clinics, hospitals, insurance agencies, data centers, etc... connecting to the environment in order to exchange information. Many may remark that these standards exist. I am able to locate dozens of vendor products and services supporting hardware, software and even service virtualization which are not a standard virtualized management of the overarching healthcare environment that is what the nationalized healthcare system is attempting to manage. I have reviewed HITSP and noted there is no clear delineation of a virtualized managed environment.

Figure 1: HIVES

In such an environment, I envision data being placed into the environment would have addressing and security headers attached. In this way, data is limited to those listening and who have authorization to gather, store, and review specific information. For example, a doctor prescribes a diagnostic test. An announcement is made in the environment of the doctors request addressed to testing centers. Scheduling software at a testing facility participating in the environment picks up the request then schedules the appointment. It announces the appointment in the virtualized environment in which the doctor's office software is listening to receive the appointment data. Once the patient arrives the machines perform the diagnostics placing the patient's data back in the environment. A analyst picks up the record reviews it and posts the assessment in the environment. In the meantime, a data center participating in the environment that holds the patient's record is listening and collects all new information posted in the environment regarding the patient then serves those records to authenticated requests. The patient returns to the doctors office which request the patient's record from the data center through the environment.

The advantages to having such an environment whether called HIVES or something else are astronomical. The patient's records are available to all participating in the environment, security levels and access can be administered in the environment efficiently to ensure HIPPA and other security compliance standards, bio-surveillance data is more readily available with higher accuracy in the data centers, the environment can be an industry driven standard and managed through a consortium, and the government could be an equal participant in the environment.  

Moreover, to be a participant, the manufacturer, clinic, lab, hospital, doctor office, data center or any others have to meet the clearly defined standards and become a consortium participant at some level. Thus, complexity of the architecture and systems interfacing can be tremendously reduced achieving the stated objectives of healthcare reform and streamlining.