Strategic Railroading

In the previous 2 posts of this set of 3 regarding Industry INTRAoperability (not Railroad INTERoperability for PTC) I addressed both the opportunity and the rail executive education that are required for the unprecedented opportunity to advance the railroads’ operations, both individually and as an industry. The underlying logic is that rail executives are motivated by their bonus plans to optimize the handling of their responsibilities. Hence, a strategic perspective that is beyond the horizon of their bonus program requires that top management be so educated to provide the incentive to think strategically as to the deployment of technologies to satisfy a strategic business plan, a.k.a. Strategic Railroading™. In this posting I discuss a well-proven process that provides the structure to do so.

In other postings on this blog I have referenced IBM’s efforts in the 70s and 80s to introduce the usage of computers across industries to replace manual business processes as well as to re-engineer business processes given the integration of computers with telecommunications, thereby establishing new flows of information within and between enterprises.  In addition to the prestigious executive sessions that IBM provided for its clients back then, IBM developed a very formal process for identifying the information flow architecture that would support the advancement of computers. Referred to as Business System Processing (BSP), the Wikipedia description properly identifies the primary objectives, i.e.,

• understand the issues and opportunities with the current applications and technical architecture,
• develop a future state and migration path for the technology that supports the enterprise,
• provide business executives with a direction and decision making framework for IT capital expenditures,
• provide information system (IS) with a blueprint for development.

Why BSP can be of great value to the railroads in particular at this point is the opportunity of developing “a future state and migration path” given the proliferation of wireless networks, both private and commercial. Even more to the point is the tremendous effort and investment that the railroads are making to lay in a 220 MHz network in the name of PTC. And, as noted in other postings on this blog, this decision by the railroads to deploy 220 MHz is really pathetic in two primary ways.  First, the railroads have failed to justify the need for additional 220 MHz as evidenced by FCC’s rejection of the railroads’ request for such spectrum in addition to what they already own. Second, there is no strategic business plan associated with any strategic technology plan (other than to just install 220 MHz) to cost-effectively use all of the spectrum that the railroads now possess. It is in support of both of these points that a BSP could lay the foundation of how wireless can benefit not only the individual railroads, but also the industry overall. In fact, had the railroads already performed a BSP for the industry, one that was truly understood and accepted by senior management, then the 220 MHz sham by the railroads’ technicians would have never gained any ground in my opinion.

So! It’s agreed then. A BSP can be greatly beneficial. But how is such a process performed?

BSP Process

There are 8 primary, structured & well-proven steps in performing a BSP, as follows:

1. Gain Executive Authority: This is often the most critical part of a BSP. Without the proper level of commitment to support the need for incorporating multiple departments of an organization within the study, the effort will fail with the first major disagreement between the departments, a disagreement that is inevitable;

2. Define the Business Strategy: This steps sounds difficult perhaps, but it actually is quite simple if the participants can be honest about the successes and failings of the organization and their individual departments;

3.Define the Business Processes: This is the most creative part of the BSP in that it requires visionaries that can look beyond the current processes and recognize the possible changes due to advancing technologies. For railroads it is the focus on wireless data that can provide for more timely and accurate management of the vast sets of mobile assets;

4. Define the Business Classes: Defining data classes (aggregates of related data elements) is very straightforward once the business processes have been defined.  (Note the very simplified example below of which business processes create / use the various business classes.);

5. Validate Finds with Management: This process establishes a line in sand with the management team that demonstrates the study is meeting the objectives of the study so as to ensure on-going commitment.

6. Define the Information Architecture: Ah Yes! This is the most fantastic step where the BSP effort really clicks and all participants and management can see what they have been missing as to information flow between the primary entities, and processes. (Note below a simplified example of a BSP that I performed for the intermodal industry. The arrows indicate the flow of specific data classes (descriptions not included) between operational entities and/or data bases. The black objects and arrows are current, the red objects and arrows are new relative to the changes in the business processes, and blue objects are hardware that need to be developed;

7. Establish Information System Priorities: The appropriateness and credibility of the information architecture developed via the BSP is first tested here as each player pulls for particular interests in establishing the priorities of the future information systems. Using the above diagram as an example, the order in which the red blocks are developed, either individually or collectively, can greatly affect the actual success of reaching the desired overall objective.

8. Make the Business Case for Management: YES! The most important business case. If nothing else, the BSP process takes the control of technology investment out of the hands of the technicians who seemingly have the desire to deliver the optimum system as to capability, whether it is required or not.  Again, the most current, and capital-wasting example of this is that of PTC deployment where the technologists are out of control as to wireless (220 MHz), a train positioning platform, and the use of wayside interface units to interface with Intermediary Signals ( see the previous posting on this block “IS … Not”).

Voila!  I have managed or participated in 4 BSPs … and this is really good stuff.

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