Enterprise Information Systems Management An Engineering Perspective Focusing on the Aspects of Time and Modifiability Jonas Andersson April 2002 Submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy Industrial Information and Control Systems Department of Electrical Engineering KTH, Royal Institute of Technology Stockholm, SWEDEN Ex.R. 02-04 TRITA-ICS-0203 ISSN 1104-3504 ISRN KTH/ICS/R--02/03--SE ABSTRACT Evolution of information systems (ISs) is a multi-facetted issue that over time has proved arduous to manage. On the enterprise level of ISs, an organization’s total portfolio of interconnected information systems is considered as one system – an enterprise information system (EIS), consisting of course-grained and heterogeneous components that in themselves may constitute complex ISs. In EISs, considerations concerning legacy systems and commercial-off-the-shelf software (COTS) are pervasive. This doctoral thesis addresses management of EISs in primarily small and medium-sized electric utilities that are active on the reformed Swedish electricity market. The enabling reasons for the choice of electric utilities as unit of analysis are the implications of the recent electricity market reformation, utilities’ broad range of interconnected ISs, and small and medium-sized enterprises’ sparse resources for strategic management. This work applies an engineering perspective on EISs management by investigating how description techniques and analysis methods from software architecture may be employed as decision support during planning and implementation of system evolution activities. An enabling motivation for the selection of software architecture as reference discipline for this work is its recent achievements in expressing and analyzing complex software systems consisting of coarse-grained software packages, on the basis of quality attributes. A special emphasis is hereby placed on modifiability and the implication of time. Presented findings imply that the concepts for architectural description, e.g. quality attributes, architectural taxonomy, and architectural integration styles, combined with scenario-based architectural analysis, may successfully contribute to enhance the comprehensiveness of the complex problem domain provided by EIS evolution. The chosen approach promotes structured analysis, as well as stakeholder communication and awareness. This work also suggests adaptations of the investigated architectural concepts to increase their applicability on the enterprise level of ISs in small and medium-sized enterprises. Keywords: Information technology (IT), Information systems (IS), IS/IT management, Strategic information systems planning, Software architecture, Decision support, Quality attributes, Modifiability, Electric utilities, Deregulation. i ENTERPRISE INFORMATION SYSTEMS MANAGEMENT ii ACKNOWLEDGEMENTS The present thesis summarizes the research work I have carried out since early 1996 at the department of Industrial information and control systems, Royal institute of technology (KTH). The initial problem domain addressed was migration and legacy considerations concerning large-scale information systems, with a special focus on the Swedish power industry. The path from there to now has proved far from straight to explore, and has contained several detours, that in some cases have brought me rather far from the context of this work. However, every part of the tour has generated valuable experiences that have taught me to appreciate the explorations during the fulfillment of this Ph.D. project at least as much as the final goal in itself. Nonetheless, it is satisfactory to discern that the final focal point of this doctoral thesis turned out to be very nearby the initial problem domain addressed. This thesis could not have been written without the support and encouragement from many people to whom I am deeply indebted. First of all, I would like to thank my supervisor, Professor Torsten Cegrell, who has provided the physical and intellectual environment in which this thesis has matured. I would also like to express my warmest gratitude to Professor Johan Schubert for his persistent encouragement and valuable guidance during the final stages of the authoring of this thesis. Many thanks also to my present and former colleagues at the department of Industrial information and control systems for making every day enjoyable, and for fruitful discussions on any topic. Especially, I would like to thank Dr. Göran Ericsson, Dr. Magnus Haglind, and Mr. Pontus Johnson for excellent teamwork during various stages of this work, Mr. Mathias Ekstedt, and Mrs. Narcisa Jonsson for valuable inputs and discussions, and Mrs. Judith Westerlund for bringing that extra warm and personal touch to the department. As this thesis would not had been possible without a close cooperation with companies within the Swedish power industry, I would like to thank these organizations, and the individuals therein who have contributed with their time and their expertise. Especially, I would like to mention Mr. Göran Fremrot with Östkraft, and Mr. Lennart Hansson with Sycon. Without my personal friends and their encouragement this work would probably not have resulted in a concrete thesis - Many thanks to all of You! A special thanks goes to Mr. Johannes Dellby for friendship also when days were tough. Last, but definitely not least, I would like to thank my family for your understanding and support during these years. Stockholm, April 2002 Jonas Andersson iii ENTERPRISE INFORMATION SYSTEMS MANAGEMENT iv ENTERPRISE INFORMATION SYSTEMS MANAGEMENT AN ENGINEERING PERSPECTIVE FOCUSING ON THE ASPECTS OF TIME AND MODIFIABILITY Jonas Andersson LIST OF INCLUDED PAPERS This thesis includes the following four parts, A to D: PART A: Andersson J., Johnson P., “IT Infrastructure Architectures for Electric Utilities: A Comparative Analysis of Description Techniques,” In: Proceedings of the 33rd Hawaii International Conference on Systems Sciences (HICSS-33), Maui, USA, January 2000. PART B: Andersson J., Johnson P., “Extending Attribute-Based Architectural Analysis to Enterprise Software Systems,” In: Proceedings of the 3rd Australasian Workshop on Software and System Architectures (AWSA ’00), Sydney, Australia, November 2000. PART C: Andersson J., Cegrell T., Cheong K.H., Haglind M., “Strategic Management of Information Technology in Deregulated Electric Utilities: Bridging the Gap Between Theory and Practice,” In: Proceedings of the Portland International Conference on Management of Engineering and Technology (PICMET ’01), Portland, USA, July 2001. PART D: Andersson J., Johnson P., “Architectural Integration Styles for Large- Scale Enterprise Software Systems,” In: Proceedings of the 5th IEEE International Enterprise Distributed Object Computing Conference (EDOC ‘01), Seattle, USA, September 2001. v ENTERPRISE INFORMATION SYSTEMS MANAGEMENT LIST OF RELATED PAPERS AND REPORTS In addition to the papers incuded in this thesis, the author has also published the following papers and reports on topics related to this work: Andersson J., ”Structured Migration and Reuse in Complex Distribution Management Systems: A Cross Process View,” In: Proceedings of Distribution Automation and Demand Side Management (DA/DSM) Europe 95, Rome, Italy, November 1995.1 Andersson J., “A Strategy for Migration on a Deregulated Energy Market: Case Study Experiences,” In: Proceedings of Distribution Automation and Demand Side Management (DA/DSM) Europe 97, Amsterdam, the Netherlands, October 1997.1 Andersson J., Haglind M., Johansson E., Johansson L., A State of the Art Study of Commercial Industrial Control Systems - version 2.1, External Report, Ex.R. 96-11, Industrial Control Systems, Royal Institute of Technology, Stockholm, 1997.1 Andersson J., On IT System Integration – Prospects and Consequences of Energy Market Deregulation, Licentiate Thesis, Ex.R 97-07, Royal Institute of Technology, Stockholm, 1997. Andersson J., Cegrell T., Cheong K.H., Haglind M., Johansson E., Johansson L., “IT Strategy for Electric Utilities - From a Paper Tiger to an Effective Management Tool,” In: Proceedings of DistribuTech Europe 98 (DA/DSM), London, U.K., October 1998. Andersson J., Johnson P., “Procurement of Integrated IT Systems for the Deregulated Electric,” In: Proceedings of the International Conference on Electricity Distribution (CIRED ‘99), Nice, France, June 1999. Andersson J., Silwer M., “Enterprise Software System Infrastructure for Electric Utilities: A Step Towards a Feasible Toolbox of Techniques,” Proceedings of the 2nd Nordic Workshop on Software Architecture (NOSA ’99), Ronneby, August 1999. 1 Also included as a part in the author’s licentiate thesis. vi TABLE OF CONTENT 1 INTRODUCTION.........................................................................1 1.1 BACKGROUND TO THE RESEARCH....................................................................1 1.2 RESEARCH RATIONALE.......................................................................................3 1.3 RELATED WORKS...............................................................................................11 1.4 MAIN CONTRIBUTION OF THIS THESIS...........................................................13 1.5 OUTLINE OF THE THESIS..................................................................................15 2 INFORMATION SYSTEMS AND ELECTRIC UTILITIES.....17 2.1 ELECTRIC UTILITIES AS THE UNIT OF ANALYSIS IN INFORMATION SYSTEMS RESEARCH..........................................................................................17 2.2 ELECTRICITY MARKET REFORMATION...........................................................18 2.3 INFORMATION SYSTEMS WITHIN ELECTRIC UTILITIES................................20 3 THE ENTERPRISE LEVEL OF INFORMATION SYSTEMS 25 3.1 INTRODUCTION..................................................................................................25 3.2 MODIFIABILITY AND TIME IN ENTERPRISE INFORMATION SYSTEMS.......26 3.3 CHARACTERISTICS OF ENTERPRISE INFORMATION SYSTEMS.....................31 3.4 COTS IN ENTERPRISE INFORMATION SYSTEMS...........................................33 3.5 ENTERPRISE APPLICATION INTEGRATION....................................................36 4 SOFTWARE ARCHITECTURE AS A TOOL FOR DECISION SUPPORT.....................................................................................39 4.1 ENTERPRISE INFORMATION SYSTEMS MANAGEMENT................................39 4.2 ENTERPRISE INFORMATION SYSTEM ARCHITECTURE.................................41 4.3 ARCHITECTURAL ANALYSIS..............................................................................44 4.4 INVESTIGATED ARCHITECTURAL CONCEPTS................................................49 5 TOWARDS A NOVEL APPROACH FOR ENTERPRISE INFORMATION SYSTEMS MANAGEMENT..........................59 5.1 INTRODUCTION..................................................................................................59 5.2 KEY CHARACTERISTICS OF THE PROPOSED FRAMEWORK..........................59 5.3 LESSONS LEARNED.............................................................................................61 6 RESEARCH METHODOLOGY.................................................63 6.1 INTRODUCTION..................................................................................................63 6.2 INFORMATION SYSTEM RESEARCH..................................................................64 vii ENTERPRISE INFORMATION SYSTEMS MANAGEMENT 6.3 PRACTITIONERS’ ROLE IN INFORMATION SYSTEMS RESEARCH.................66 6.4 CASE STUDIES......................................................................................................68 6.5 ACTION RESEARCH............................................................................................69 6.6 RESEARCH QUALITY...........................................................................................72 6.7 ETHICAL CONSIDERATIONS.............................................................................73 7 SUMMARY OF FIELD STUDIES...............................................75 7.1 INTRODUCTION..................................................................................................75 7.2 FIELD STUDY ALPHA: AN EXPLORATORY CASE STUDY...............................77 7.3 FIELD STUDY BETA: A DESCRIPTIVE CASE STUDY.......................................78 7.4 FIELD STUDY GAMMA: AN EXPLANATORY CASE STUDY AND FIELD STUDY DELTA: AN ACTION RESEARCH STUDY............................................79 8 SUMMARY OF INCLUDED PARTS..........................................83 9 CONCLUDING REMARKS........................................................89 9.1 SUMMARY OF RESULTS.......................................................................................89 9.2 FURTHER WORKS................................................................................................92 10 REFERENCES.............................................................................93 PART A: IT INFRASTRUCTURE ARCHITECTURES FOR ELECTRIC UTILITIES: A COMPARATIVE ANALYSIS OF DESCRIPTION TECHNIQUES .........................................................................105 PART B: EXTENDING ATTRIBUTE-BASED ARCHITECTURAL ANALYSIS TO ENTERPRISE SOFTWARE SYSTEMS .........123 PART C: STRATEGIC MANAGEMENT OF INFORMATION TECHNOLOGY IN SMALL AND MEDIUM-SIZED ELECTRIC UTILITIES: BRIDGING THE GAP BETWEEN THEORY AND PRACTICE .....................................................143 PART D: ARCHITECTURAL INTEGRATION STYLES FOR LARGE- SCALE ENTERPRISE SOFTWARE SYSTEMS ......................169 viii