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Midsouth Chamber of Commerce (B):
Cleaning Information System Failures

As Niele Sage, vice president of operations and financial leadership of the Midsouth Chamber of Commerce (MSCC), a newly elected, walked to the microwave in his office, given his interest when he first took office. In a few weeks earlier, Sage is the owner / operator of the financial advisory business and a successful information system that kept her stay in the company or are travelling on average 80 hours per week. With the existence of family and dreams to live a simpler, Sage decided to work on others, where he can make a more relaxed schedule. Today, life does not look so different. He still works 80 hours per week, and his life remains busy as ever. Even so Sage can still see the horizon of hope in front of him.
A few days after the Sage took office, Leon Lassiter, president of MSCC, giving it a daunting task to manage information systems MSCC. In most organizations, this is something challenging, but it has become very challenging in MSCC mainly because of its history. In recent months, the MSCC has received a penalty for his misdeeds of consultants and software vendors, Data Management, Associates (DMA). MSCC DMA has been fined for his misdeeds and / or implementation of databases and related system software that has been customized report writing that has been purchased by MSCC nearly two years earlier. Now it has become clear this is another incident in a long history of poor operational decisions. And the duty to rectify the situation Sage and build for the future direction.
As Sage saw the calendar, she realizes that he only has two days left until the 100th day of his plan relating to the appointment by Lassiter, on 24 September 2003. Among his records is to determine the lack of current information systems, to ensure the needs of future information systems MSCC, and to investigate alternative available MSCC needed to solve the problems with the system DMA. Beyond that, however, several things need to be resolved immediately – including the worsening of relations with the DMA and implementation of new software. When he learned that he did not have all the answers right now, his plan of 100 days must have been on the stage of the process of getting an answer.
With consultants who have experience of Sage, he decided the best way to start is to investigate the history of the problem of MSCC information system to help find important clues to avoid catastrophe in the future. “It is ironic at all,” he thought. “The situation in the MSCC has the same potential with popcorn that will erupt when I press the start button.”

Midsouth Chamber of Commerce
Broader description of MSCC and their history and computing systems can be found in one case study, Midsouth Chamber of Commerce (A).
Midsouth Chamber of Commerce (MSCC) was established in the early twentieth century, but the history of the new information system began in 1986 when the personal computer and database management first introduced to the organizations by Ed Wilson, vice president of public affairs. Many staff members who are sceptical about the automation of business are reluctant to accept such an approach. However, Jon Phillips with assistance, small business consultant, Wilson get the equipment and hired programmers to create software specifically designed for each functional areas – marketing division, operating divisions, and division of human resources. One IBM PC and printer booked for each group.
From 1987 to 1992, the use of three systems increased sharply. In 1992, Wilson chose other outside consultants, Ted Vassici, to review the organization’s information system needs and to select hardware and software solutions required by the MSCC. After intense study, Vassici longer recommend six workstations. And in 1995, Vassici revisit and renew the special software used by each division and develop marketing software which is a demand for Leon Lassiter, vice president of marketing.
In June 1996, Wilson employs a systems analyst, Simon Kovecki – computer science graduates – to increase computing capability MSCC. During early 1997, Wilson set up a computer system and with the help Kovecki, improved hardware with more powerful computers, increased memory, larger hard drive capacity, and better monitor. Under the supervision of Kovecki, the systems running very well.

Needs to Change
In 1998, Lassiter comprehensibility disturbed by the lack of information systems plan that will provide a competitive advantage MSCC. Although the system running stable, Lassiter was the area of information systems require more attention, and in the end he sent a request some information about several software companies that serve the needs of organizations like the MSCC. In August 1998, Lassiter attended a meeting of national association management software, where the session took Lassiter to find out more about the small company called UNITRAK, which has developed software systems Y2K-compliant Unix-based which Lassiter felt MSCC should consider – based on 1997 valuations and Kovecki to the needs and anticipation divisional in MSCC.

Planning for the New Data Processing System
Lassiter has identified the features provided by software that makes it feel UNITRAK it will make MSCC become more efficient – including faster access to account information, the ability to use information from a centralized database, and increased activity of quantitative analysis. In a memo management group, Lassiter commented, “UNITRAK system not only meets our current needs, but the package is easy to operate is also strong enough to provide MSCC room to grow up to five years.” In the end, management agreed to continue this project .
In October 1998, to invite Greg Ginder Lassiter, president UNITRAK Software Corporation, in order to give a brief demonstration of the ability of the system. Wilson observed during 45 minutes of a three-hour demonstration and said Lassiter, “I will support it if you wish. Software is in accordance with my project in public affairs. “Comment Kovecki different. He said, “the software has its strengths and weaknesses and will probably save time. But, I do not like the idea of staff has no access control on a lot of data. It was not clear to what staff will do. “Lassiter can convince the board of directors to approve the purchase of MSCC UNITRAK systems, including IBM’s computer systems to U.S.? 400 and software UNITRAK.

Implementation of System
Despite being hunted by the prey attraction and rush – Lassiter, implementing new systems run longer than planned. Delays in issuing purchase orders and testing the software only adds time to make the system operate. Training finally executed on August 1999. Training is going well but the migration of data becomes a serious problem. On the last day of training, Lassiter said on Kovecki for migrating data from a computer system at that time to the new system. Kovecki facing problems in running it so that less than 15% moved data into the appropriate places. Because they did not have documentation of a referral from the old software, making it able to run the new system in late 1999. During that time, most computers do not function at all MSCC. Request registration and labelling for mail delivery can not be fulfilled. And typing, placement and payment of invoices, data changes, and list management is very difficult to do at that time.
Lassiter was also found that very difficult to obtain information from Kovecki development of the status and progress of the conversion system. Can be seen that Kovecki, frustrated with problems he had and added to the staffs who came to him to ask for assistance, which is hard for him to reject the staff members.
UNITRAk eventually walk, and at the end of the system is not only walking but also running on Y2K – without any additional cost (beyond the initial cost of hardware and software) for MSCC. Problems remain, however, it quickly became clear that these systems serve only a limited basis – the most important thing is to handicap the relational database management system. And in mid-2000, more problems emerged – UNITRAK facing serious financial problems and its president decided to move its software into the Windows operating system-based software (which is far from the base of the UNIX operating system that is used at the time). Soon after, the support staff was disbanded and MSCC UNITRAK left without technical support. To reduce this problem, Lassiter hiring outside consultants, Zen Consulting, to write programs, create new reports, and assist in the maintenance / support for the software.

Backward movement UNITRAK Implementation
In September 2000, Kovecki thinking about their future survival in MSCC. As a result, he resigned to take a position in a local law firm which operates a similar hardware platform. At the end of October, Dick Gramen, former coach of the computer staff for a local insurance broker, was hired to replace Kovecki. Gramen comes from the IBM RS/6000 computing environment where establishing and maintaining mainframe and local area network. Gramen, however, does not have experience working with AS/400 computers and not much thought. In addition, previous Gramen have no insight on the software UNITRAK and trade associations in general. Soon after he entered, Gramen realizes that her new environment will be very difficult to learn as he struggled with even basic systems management tasks mostly. His efforts made him think why MSCC not use RS/6000 and personal computing network.
With a desire to confirmation herded his view, Gramen consult with one of his college friends, John Harter, of the system suitable for use in the MSCC. Harter time was a consultant RS/6000. Harter said,
Dick Truly, I would suggest to buy the IBM RS/6000 systems. RS/6000 is a perfect system to model your organization. This system can run on UNIX base so it can run UNITRAK. IBM has changed the name of the unit – the eServer pSeries designation – but the basic system remains the same. And their maintenance easier. I am telling the truth to you. Would be difficult to sell on your board. There are other cheaper systems out which also can meet your needs. If you use a RS/6000, however, our company can provide assistance if you get into trouble.
Gramen believes that with the help of Harter and to avoid learning the old system, he will be able to handle maintenance and support and success in the MSCC. Now, things to do was to convince managers to use the system RS/6000 MSCC. So, one month after his appointment, Gramen began reporting on the Leon Lassiter, vice president of marketing,
MSCC is no longer able to use the current hardware platform. AS/400 can not meet your current needs, leave it. Legislative information service system has been left behind, and without new Hardware I can not support political action program that appears. If we can not resolve this situation soon …
In the end, the combination of these reasons led Lassiter general hardware support proposals Gramen. Lassiter glad someone finally has the Information System initiative. He assured that the information system is key to maintaining MSCC Midsouth excellence among business associations of trade, and the key to financial success. Lassiter was also afraid of MSCC can not be a real value for its members in the search arena without any legislative changes. As a result, lassiter told Gramen to calculate the estimated acquisition costs in secret.
Gramen realize, however, that if he succeeded to move the MSCC on new hardware, he will get support from association president, Jack Wallingford. When Gramen near Wallingford, however, he was not prepared for the response:
Dick, I agree that we may need new hardware as a whole, but we can not repeat the problems that occurred with the previous information system that has been purchased. We made a big mistake when we bought UNITRAK system and it will not happen again. And we do not have one of our board of IBM in any longer. Plus, I do not see how you make this decision. You do not have enough time to study the current hardware (AS/400), software (UNITRAK), our data structure, or even what MSCC do and how these organizations operate.
To reduce the attention Wellingford, Gramen agree to hold several meetings during the first semester in 2001 with members of senior management to propose an outline of the information system needs and general operations MSCC.
Switching to the RS/6000
After listening to the outlines of the situation Gramen, Ed Wilson decided to help by going to Lassiter Gramen Wellingford own and to persuade them to support the RS/6000 system. Lassiter support is most important, though, because of its influence with the executive committee and the fact that his division is the largest user of information systems. Even so, when Wilson went to Lassiter, Lassiter responded:
I told Gramen to secretly count the estimated cost of the acquisition so that we can be ready when we know exactly what is needed. Apparently he did not honor my request. I do not expect hard on it and I would not support bringing this to the executive committee until we know what we need. We can not direct a hurry in making a purchase.
While logical thinking influencing Lassiter, Wilson remains convinced that something needs resolved as soon as possible – with or without the support of Lassiter. After that, even though doing so would waive Lassiter, Wilson and Gramen raised their proposals to the executive committee. Wilson began,
Ladies and gentlemen, this decision was one of the best ways to do. High cost of consultant payments to support and maintain software on hardware UNITRAK low ability to dry the development of our resources. And we need the arena of legislative service in the future, we must move quickly before we can no longer serve our members well. Our proposal is a perfect solution in this crisis situation. From the technological standpoint, the IBM RS/6000 is a masterpiece of technology, stability and endurance without disabilities. More importantly, we have received assurance from IBM that they have recommended a software vendor to meet our needs when we make a purchase. This proposal provides the best solution in all things.
Not usually, Lassiter sat in the back room to listen carefully. He felt confident that even without the support of the executive committee – comprised of CEOs from 20 companies over the state – aka not accept the proposals. Because the economic downturn in 2000 and, opinions Lassiter, restrictions UNITRAK software system, MSCC earnings growth declined regularly with increasing expenditures (see chart 1). This was quickly cut in half MSCC financial reserves to be only equal to $ 1 million, which would make it difficult to run the purchase cost.
Lassiter, however, had misjudged the strength of the argument the crisis, as the executive committee and Gramen Wilson instructed to calculate the cost of acquisition of the RS/6000 with only one limitation – that they use “provisions of the right” in developing the overall information system solutions.
Realizing that the MSCC started up a dangerous step, Lassiter wrote a memo to Wellingford and Wilson in which he writes,
MSCC should hire an outside consultant to lead a thorough needs analysis and create a far reaching vision and purpose of the information system before a decision is made. Furthermore, we must recognize and learn from mistakes that we make from our first system. Hardware and software decisions can not be made in isolation.
Wallingford and no one responds Wilson memo.

The entry of Data Management Associates (DMA)
Immediately after the meeting with the executive committee, Gramen contact IBM for its recommendations to the appropriate vendor. Without hesitation IBM representative suggested a local distributor who not only sell and install the IBM hardware, but also, with the fare, will find a software solution that will meet the needs of MSCC in conformance with RS/6000 hardware platform. By understanding Gramen less on the issue, this is seen as the ideal solution. Because his friend, John Harter, working for local dostributor, Gramen think that this approach is the correct way.
This arrangement, however, turned away from the word ideal. Even without visiting the MSCC – and only based on the views Gramen for MSCC operations and information system needs – a local distributor (with the cost of $ 5,000) to contact the Data Management Associates (DMA) on behalf of the MSCC. DMA is a company with 54 employees, located 61 miles from the MSCC office and led by Dittier Rankin, almuni and Ph.D from Stanford University computer science who recently experienced a change of focus and begin to develop special software for small trade associations and local chambers of commerce throughout the country. Even so, though without the high experience, local distributors are very confident of the ability of DMA. After several telephone conversations between Gramen and DMA, the preparation of plans made for the DMA to demonstrate his ability in the office of the DMA in May 2001.
The meeting, which runs only 45 minutes, Wilson and Gramen very impressed. With screen displays, report examples, and the files specified in the hands, Gramen menhadirkan prepared for the proposal to the executive committee. In the interim report, however, a new situation has evolved. John Hilborn, one confidant Lassiter – and also member of the MSCC executive committee – Lassiter approached to ask his silence at the last meeting. Hilborn was not impressed with what he hears. As a result, the next executive committee meeting, Hilborn asked Lassiter – during the presentation Gramen – provide input on the proposal. With these cues, Lassiter made only one comment: “my friends, if the proposal becomes an ideal solution for MSCC it is only because of luck, where the software selection process is not comprehensive.” And then sit back Lassiter.
Some said it weakens Gramen and several members of the executive committee are very uncomfortable. Immediately, there was a motion to put this proposal during the first month while more information is obtained from and about DMA.
With his proposal – with a possible job – the border, preparing Gramen president’s visit two members of DMA and DMA management of MSCC and the other to the office information system requirements analysis. Individual requests are for two days. They spent the morning on the first day of DMA provides a complete overview and demonstration, in laptops, the ability of software systems that they offer. The next day and half is used to interviewing staff at MSCC their job, in how they use the current system, and the unmet needs that they can identify.
In addition. Lassiter DMA provides a very complete view of the needs of the division of information systems and personal vision on the information systems needed MSCC. Additionally, in an attempt to explain the capability of MSCC and to impress on the differences and complexities of DMA operation, DMA Lassiter provides plenty of material. This includes examples of each report and any form of document that can be produced by a system that is running with an explanation of the intent and purpose of the report (on MSCC) of any information in each report. Furthermore, he gave DMA operations manual, providing detailed setaip duty of every employee in the marketing division, and long reports on the current database information can not be accepted and printed in a report format that can be used. On the whole, this is a pile of reports and data that were mounting. Lassiter was also not acceptable to allow the DMA to go before giving details about the thesis, DMA capabilities and system software.
After two weeks, and at the time the executive committee meeting in June 2001, Rankin reported that the DMA has reviewed the information obtained during a visit by its review and has been successfully analyzing information system needs of MSCC. That way, DMA Plus Software Association decided that hers is a perfect match for the needs of MSCC and RS/6000 platforms. Lassiter clung, however, he filed for approval of travel funds for someone to visit at least one DMA customers to view the course software. Executive Committee, with respect to Lassiter – and with the fact that his division throughout this greatest users of information systems at the time – agreed to postpone the final decision and approved funding to send him and Gramen to visit Lake Erie Trade Office – one new client DMA.

Visits / interviews More
When the DMA with the Chamber of Commerce was willing to give the name of Lake Erie (LECC), this election proves bad DMA. One hour of their visit, and Lassiter met Gramen LECC president, George Franks. Tn. Frank explains,
We were impressed with the overall DMA when we drove through the process of rights provisions (due diligence). They showed us the report and display screen which gives us hope that this is our panacea. But comrades, we have serious problems and data conversion problems continuously from the first implementation. And, I still do not know whether we will see the value of this system.
With information in hand, Lassiter (and a reluctant Gramen) reported the discovery on the executive committee. Although Gramen continue his argument that the only matter of time, the executive committee require additional certainty. That way, they memngirim Lassiter and DMA Gramen to headquarters with two goals: (1) to determine what DMA capability, and (2) to see the operational version of the software DMA.
With the immediate arrival at the headquarters of the DMA, Lassiter and Gramen given a tour and introduced to several senior staff of the DMA. Shortly thereafter they directed to the conference room where they were shown a long demonstration of the overall appearance of the operational version of the software DMA. However, DMA has used actual data and reports MSCC to prepare a report and view examples of creating the appearance of a software system in full operation. As one former employee who later DMA told Niele Sage,
They use examples of reports and other information that they obtained from Lassiter to meciptakan representative screens and reports. DMA really want to get a trade association market with large customers such as MSCC they believe if they get a contract they can develop its software and be one step ahead of MSCC. Short and long term strategies which they sell is called “vaporware” (vapor = steam, vaporized)
During the demonstration, Lassiter and Gramen repeatedly asked and received assurance that the DMA can be, with “relatively little modification and can be achieved”, develops software and convert the database UNITRAK to produce a report and list of demonstrations for MSCC. For any questions and possibilities raised, DMA responded that development is not a problem, and therefore, in addition, MSCC will get the source code if you buy software.
Satisfied with what they see, Lassiter and Gramen back. In August 2001 the executive committee meeting, they reported that this system (RS/6000 and software DMA) can be accepted for purchase. Hearing this, the executive committee ordered Gramen to request the design specifications and cost estimates specific to the software system. Under the new configuration, relational database management system, called Progress, was created by the DMA, will be entered on the RS/6000. (See graph 2). Existing data will be converted by the DMA into the new system. In addition, DMA previous use its software-Plus Association for MSCC allows staff to produce the desired reports, lists, and other documents through a software package report-writer-who-easily-understood, known as Results. Detailed estimates were filed in September 2001 the executive committee meeting where they approved. Total price of $ 277,000. Gramen immediately contact the DMA and request the company to prepare a proposed contract.

DMA contracts
At the end of September, DMA default on Gramen send contract for the acquisition of relational database management systems Progress Association Plus software module that was changed, and some components of the software package. When the proposed contract arrived, Gramen, realizing he was not an expert in reviewing the contract, send the contract to Wallingford with a note saying “the contract looks good.” Wallingford signed the contract and the day he returned to the DMA without another staff member or counselor from outside the corporation, or other specialists who reviewed the document.
Someone with a better ability to review the contract, which, however, they will immediately realize that these agreements are agreements one side and there is no guarantee that any given Gramen Lassiter and during their visit. In this case, the agreement does not provide the performance standards that can be calculated for services provided and give the right DMA to increase the price of its services and products offered as a policy, while restricting the ability of financial and performance DMA.

Problems in implementing DMA Software
Even so, the first time in several years, interest in filling the air MSCC who appear on Commutation era begins. On November 11, 2001, held a celebration and invite MSCC DMA management to help commemorate the celebrations. As the importance of the meeting when associated with this celebration. In this meeting DMA tried untu project implementation schedule by determining (1) the complexity of the component variations of customization, (2) the length of time required for the implementation of software customization, and (3) tasks that need to be filled to facilitate the conversion of MSCC. At the end of the day, board the scheme of the implementation schedule has been determined in the first week in July 2002 set as the target date of completion.
Two weeks after the initial meeting, Stacey Porter, a consultant DMA, arrived at the MSCC office to install the first version of the module provides training in telemarketing and constituents, territory management, and modules of the committee. This training is the first time the display shows the software on staff. Territory managers, however, was not impressed with the layout or content of the software, as is so often forced them to work through more than twenty screens to perform the task relatively easy. As a result, Lassiter wants to significantly rewrite the territory management module, and in March 2002, the same delay occurs on the PAC, accounting, meetings, and legislative module.
With the deadline agreed conversion becomes closer and delays often occur, and Wallingford Gramen decided to keep running the old system until the staff entirely comfortable with the new system. Within three months, however, although the DMA software is not fully operational, MSCC leave this instruction because it became too expensive to pay for consulting services to maintain UNITRAK operational.
With the imposition of implementation in late July, DMA began to face a fundamental problem in converting the membership database of customizable software package UNITRAK to DMA. As with the cessation of the progress of the installation software, Lassiter and Porter Gramen rebuke to his office. During the meeting, the working relationship between the MSCC and DMA began to deteriorate where Gramen remind Porter, “I think we have been patient enough with you, but that has changed. I heard that the situation is less serious end up in court before. And I know you know that the fault is entirely in your hands. ”

Additional Problem Problem-onset
This relationship has become increasingly confusing series of billing issues. In the process of installing the system, DMA produced a lot of problems with solutions in one area can often bring problems in other areas. In mid-July 2002, no fewer than five staff to identify problems MSCC DMA constantly and ask for assistance. As a result, the DMA on the fly using the working hours that have been specified in the contract, and has started to collect MSCC to work outside the hours covered.
With increasingly severe problem, Lassiter became more involved in the daily problems of implementation.

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2 Responses to “Midsouth Chamber of Commerce Case Study, System information management”

  1. saif Says:

    it is a good case study

  2. saif Says:

    what should Lassiter do now

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