Development of a New Information System for Croatian Forestry

1
Development of a New Information System for
Croatian Forestry

• Damir Kalpic
• University of Zagreb Faculty of Electrical
  Engineering and Computing, Croatia
• damir.kalpic_at_fer.hr
• Krešimir Fertalj
• University of Zagreb Faculty of Electrical
  Engineering and Computing, Croatia
• kresimir.fertalj_at_fer.hr

2
Introduction

• Croatian Forestry
• among the largest government-owned organizations
• 16 regional departments
• 170 outposts
• 20,000 km2 of forests
• natural reserve
• game
• wood
• valuable plants
• feeding the state budget
• forest fires are the main danger in Mediterranean
  area

3
Woods in interior
4
Woods at the seaside
5
Information system status

• Development since 1990
• PC based
• FoxPro, VisualBasic, Delphi,..,MS Office
• three developers
• 70 employees in IT department
• mostly chiefs of field offices
• mostly better paid than developers
• obsolete data processing organizational tasks
• good functionality for end users
• lack of integration
• obsolete platform

6
Current IS status

• Managerial support. Production planning is fully
  supported. Planning and analysis of development
  and sales purchase planning are partly
  supported.
• Forests maintenance. Construction of maps, forest
  economy and monitoring are fully supported,
  purchase of goods and services, partially.
• Production. Forest growing, exploitation, and
  stocks management are fully supported, while
  transportation and forest paths building,
  partially.
• Ecology. Forest protection and auctions are
  partially supported.
• Hunting. Only sales are supported.

7
Computing infrastructure in Croatian Forests(ask
Prof. Fertalj!)

• On the central location computer network with
  servers.
• The primary domain controller (PDC) with
  corresponding network services
• Domain Name System (DNS), Windows Internet Naming
  Services (WINS), Dynamic Host Configuration
  Protocol (DHCP) server and the central database
  (MS SQL Server).
• Public servers (Web, Mail, IMS).
• Terminal Server.
• Access via terminals must be left out in future
  applications.
• A central active directory of all users in
  Croatian Forestry.
• In regional offices and in outpost with more
  users
• A LAN is to be established with an own domain
  controller.
• It has to be replicated like the application
  server in the Central Office.
• The security and protection system (active
  directory) in regional offices and outposts has
  to be replicated to the central active directory.
• VPN or a private network?
• Remote users connect to the Virtual Private
  Network (VPN) in two ways
• dial-up to any Internet service provider, and
  afterwards to the VPN system.
• mobile users through the GPRS protocol.

8

• Microsoft TechNet (2006), the recommended pattern
  for physical implementation

9
Critique of Deloitte findings (1)

• A highly professional Analysis of current
  status..., but
• SWOT (correct)
• Threat Standard industry solutions lack the
  specific required functionality
• Strength High satisfaction of end users with the
  current solution
• SUGGESTION (contradictory)
• Buy an industry standard solution because...
• overall cost of proprietary development compared
  to an industry standard solution is higher by a
  factor from 1.57 to 2.05
• Said Massachusetts based consultants!
• Croatian salaries 3-5 lower than in US, ERP
  license fees (were) up to 1.5 times higher.

10
Critique of Deloitte findings (2)

• Application development phases should be clearly
  separated and assigned to different team members
  
• on the contrary, holistic approach has lead to
  relatively high success, achieved with modest
  means
• Main threat, experienced by well off Croatian ERP
  buyers was not mentioned!

11
Experience with well off Croatian ERP (read SAP)
buyers

• Bought licenses at 150 of normal rate
• Engaged ignorant consultants at 1,000 US/day
  rate
• ignorant regarding the software they implement
• ignorant about the user company organization
• inexperienced in IS implementation
• Declare it as success because too much money has
  been invested!
• Investment in our ERP is of no cost for us
  because the value of our shares has grown more
  due to SAP

12
Insource or outsource?

• In 80 of cases outsourcing had not diminished
  the costs (Gartner).
• In Croatian Forestry the Information System is
  part of the core business.
• Computerization of Croatian Forestry is a
  continuous, demanding, complex and partly
  non-standard job.
• No outsourcer can do it alone, without insiders
  support.
• Current IT team should be strengthened
• IS development is a sustainable reengineering tool

13
Possible compromise

• Buy standard (accounting, payroll, general
  ledger, ...)
• Develop forestry specific applications.
• Change in the meantime
• Local SAP lowered the license fees for state
  owned organizations,
• Local SAP expertise has increased,
• Local SAP developers stopped charging
  consultants, now they accept payments according
  to end-user acceptance satisfaction.

14
Applications design(ask Prof. Fertalj!)
15
Platform

• MS.NET Framework
• C
• SQL Server
• Microsoft Visio

16
Development model

• Selection of the development platform
  (completed),
• Forming of teams (80 completed),
• Testing of team members,
• Final teams forming,
• Snapshot of current status (completed),
• Education for conceptual data modeling,
• Training for system administrators,
• Establishment of application development
  standards,
• Application data models,
• Training for SQL,
• Training for the development platform,
• Models of processes in applications,
• Common data model,
• Common model of business rules.

17
Expected main Project risks

• Too strong resistance to restructuring,
• Inadequate salaries,
• Too demanding IT staff,
• Lack of continuous support by the Management,
• Radical changes in legislation,
• Radical changes in Management,
• Insisting on quick fix solutions,
• Critical mass of competence not reached,
• Loss of momentum,
• Loss of motivation and confidence due to some
  difficulties.

18
Opposition from Trade union

• Trade Union strongly objected the restructuring!
• They wish to remain local IT chiefs and data
  processing organizers,
• They dont want to be tested,
• They dont want (any) change,
• The authors had to defend the concept.

19
Simplified models

• Opera
• Soprano Tenor are willing, but Baritone would
  not allow.
• Trade Unions
• Management to workers We ask from you
  everything, we give you nothing
• Trade Unions to Management We want it all, but
  we do not give from us anything
• Solution A compromise to live happily ever after

20
Development under Trade Union obstruction
Repeat until Croatian Forestry does not go
private
Management proposes restructuring
Trade Union objects
Criticize the former Management
until Gvmnt changes the Mngmnt
Firing staff, cutting woods....
21
Development in co-operation with Trade Union
Management proposes restructuring
Trade Union asks for modifications
until agreement
Education of staff
New development cycle
Higher salaries social security
...but primarily for those who are willing and
capable to work!
22
Open problems

• How to properly organize the IT Department
• to be motivating for staff
• to be acceptable to Management
• to be acceptable for Trade Union
• to avoid IT staff fluctuation after training
• to avoid unnecessary spending
• to be simple and understandable
• to be acceptable to the rest of the organization
• to be acceptable under legal regulations in
  state-owned enterprise
• etc.
• Stalemate 2 years have passed and nothing
  (visible) happens except repeated expressed
  dedication to proceed accordingly!
• Any suggestion/experience to be shared are
  welcome!

23
Conclusion

• You should not outsource your core business
• Any change in a large (especially when
  state-owned) company is extremely difficult
• Trade unions too often protect the ignorant and
  lazy (that is probably their duty?)
• Computing staff undervalued

24
Conclusion cont.

• Any improvement of computer staff status induces
  envy and resistance among others
• Are they faring towards their destruction (the
  way they were and would like to remain)
• Is there any remedy?