The Joint Stock Company Latvijas Gāze – on the Way to Using Modern Information Technologies
Laura Kalinka, Baltic IT Review 3 '99
Latvijas Gāze (LG) is the only company in Latvia which supplies natural and liquid gas to industrial and residential consumers. The company employs some 3,000 people, and it is one of the companies that make up Latvia’s energy complex, thus having a significant effect on the life of the entire country. For that reason, it is logical to look at the IT situation at the company, as well as the way in which it is dealing with the Year 2000 problem. A year ago the company set up a Computer Network and Database Division, which is headed by Alvils Hincs. The work of the division is focused on developing the company’s IT infrastructure, on achieving business support, and on developing systems. All of this is coordinated by Armands Teteris and Aivars Zirnītis. In an interview with them, BITR found that LG is on its way to establishing the operational model of a truly modern company.
<big>The inheritance of the past and sketches for the future
</big>Latvijas Gāze has four major production structures:
• The Inčukalns underground gas reservoir which receives natural gas from Russian suppliers and stores it up (mostly during the summer), then providing the gas to the company "Rīgas Gāze" during the winter;
• Gāzes Transports, which services the high-pressure gas pipelines in Latvia that bring gas from Russia to Inčukalns;
• Rīgas Gāze, which services clients throughout Latvia;
• Sašķidrinātā Gāze (Liquid Gas), which imports liquid gas and sells it to various consumers (including automobile owners) who don’t have access to natural gas.
In previous years information technologies were developed at each of these structures in order to satisfy internal requirements (tele-measurements, tele-management, registration and control over the flow of gas). The dispatcher service of Gāzes
Transports, for example, uses computers to process information that is received via cable from people who provide gas pipeline data. The computer program ensures a reflection of the existing situation at any time. The information is also received by the dispatcher service of the company’s overall management. It is located at company headquarters, and this makes the information available to the upper reaches of management. Similarly, information is received from the Inčukalns underground storage reservoir. Rīgas Gāze also has a number of registration devices (registration of all cities, of major clients, etc.), and data therein are processed by computer. All of the structures have their own LANs. An overall company network that works on a dial-up basis is partly in place. One can say that the level of IT infrastructure development at the company already ensures the centralized receiving of data.
Still, the systems were all set up at different periods of time, and there is a high variety of technologies and solutions. For the time being the system functions at a satisfactory level, and it is clear that replacing it quickly is neither possible nor really necessary. Long-term development, however, will require a clear strategy, and the members of the LG management structure who coordinate the various structures in the field of IT have declared that system integration is their primary goal so that centralized management of the entire company might be set up.
For that reason, the main mission of newly established IT structural units has been to analyze the existing systems and then to elaborate a strategy for LG’s information systems in the future. There has to be a concept on ensuring the development and implementation of a unified information system.
<big>Implementation of the strategy in concrete projects
</big>The job of the Latvijas Gāze Computer Network and Data Base Division is to coordinate project development and the purchase of necessary technologies. The division is focused on the use of services by professional IT companies. The unified IT strategy and concept have already been developed, and on the basis of the fundamental principles the division is launching bids for tenders, inviting companies and strategic consultants to participate in specific projects. It is the duty of the division to manage the projects so as to reach the initially specified goals.
<big>The Year 2000 project
</big>The most important project among those that have been implemented so far is the Year 2000 project, which seeks to avert conformity problems for computers and other technological systems. The project was launched in August 1998, and it is currently in its third phase. The work is being done in cooperation with the international auditing company Arthur Andersen, as well as with one of Latvia’s strongest IT companies, SIA Fortech. The company SIA Olimps is participating in the resolution of technical issues.
The schedule for this project was very carefully prepared. LG employees have received extensive information about the importance of the work and the possible consequences of the Y2K problem. A careful methodology was developed on evaluating potential risk elements and the related technologies (on the basis of the BSI standard "A Definition of Year 2000 Conformity Requirements", easily understandable computer compatibility criteria and definitions were prepared for employees). Detailed questionnaires were prepared and sent out to service and product providers, among whom, unfortunately, only 25% submitted responses. The survey is being repeated at this time.
The project has involved not only an in-depth analysis of the company’s information systems, but also a look at the firm’s overall work. This provided extensive materials for designing future projects. The company now has a complete picture of the threatening situations that may arise in the firm’s operations, and this has served as a basis for elaborating plans on averting the most critical situations. For example, when the software of the company’s risk group was analyzed, it was found that only 18% of the software was without problems. Another 47% of software was declared basically compatible, but requiring additional testing, and 35% of the software required both repairs and ongoing testing. The share of technological systems requiring improvements and testing was 67%.
The analysis of the existing situation led not only to the elaboration of plans, but also to a start in implementing those plans. Each employee has a clear understanding of his or her responsibilities and level of responsibility. The company’s software systems have been ranked according to risk level and the importance of the situations that they might create. This information has been placed in databases. All of the company’s mission-critical systems have been tested, including those with respect to which manufacturers claimed that there would be no Year 2000 problems.
The company has tested all of its computer equipment, and those computers which need to be replaced or improved have been identified. Improvements are being made to those computers that are not part of the company’s risk systems. In those systems which are most critical, equipment is being replaced. In general the company is certain that the maximum will be done to avoid any unpredicted losses.
<big>Projects in elaborating a business support direction
</big>The information systems development strategy at the company provides for two areas of activity – system development and support for business processes along with development of the related infrastructure elements.
A project to elaborate a business support direction has already been launched. The work began with an in-depth analysis of the existing situation, while at the same time staff analyzed the requirements of the company’s structural units with respect to IT services. The result was the elaboration of a unified IS project. The work in the first phase of the project was by Arthur Andersen, which was selected through a bid for tenders and was responsible for writing business process descriptions. This was done with the German program "Incom Promatis", which is distributed in Latvia by the company IT Alise. The first phase of the project has been concluded.
In the business process descriptions Arthur Andersen described the existing situation and set forth two possibilities for establishing a unified information system. One version would base the information system on existing company management systems, with relatively narrow functionality (mostly company management and management systems). Interfaces would be set up among these systems to bring them into a unified whole. The second option is to select and implement one large company management system which, in addition to the aforementioned structures, would also have a client billing system and a technical management system.
Evaluation of bids submitted in a tender for this project began at the end of July. Once that process is completed, a long-term plan will be elaborated with respect to concrete work in setting up the new information system – both with respect to systems that must be acquired anew, and with respect to those systems that need to be replaced or updated. Thinking in this area is partly based on the conclusions that were drawn from the Year 2000 problem. Because a full inventory of the systems has now been taken, there is a basis for elaborating proper arguments on future planning.
<big>A series of smaller projects
</big>By the end of July the company’s employees were to receive a company documentation system based on Lotus Notes. It provides for document processing, registration of agreements, preparation of minutes from board meetings, and a system for controlling work duties. The system was set up by IT Alise.
In cooperation with another Latvian company, Tilde, an electronic multi-language dictionary for the sector has been prepared, and it is available for those parts of the company which need it – the technical inspectorate of Rīgas Gāze, the LG training center, etc.
A Web page for the company has been set up at the address ADRESE NAV NORĀDĪTA.
The IT development control project will very soon affect each and every company employee. It will be based on normative documents that regulate the company’s activities in project organization and management, IS quality control, the responsibilities and duties of IT specialists and such procedures as user work with computers. These procedure descriptions and documents reflect the company’s own experience, and some of the documents have already been approved by the Latvijas Gāze board. The goal, however, will be to attract external consultants to help in introducing requirements that are in line with the ISO 9000 standard.
<big>Infrastructure development
</big>Infrastructure development must underpin the strategy that has been selected. The company’s computers are quite heterogeneous at this time, starting with 300-series processors and ending with Pentium processors of various capacity. The company, therefore, has elaborated an internal standard with respect to computer technology. The computer system will be based on Hewlett Packard computers, and the network will work on the basis of Windows NT. E-mail will be provided through Lotus Notes servers which can not only send out E-mail, but also maintain databases. A platform for future document processing systems is also being prepared.
Latvijas Gāze necessarily devotes specific attention to data security, and work is being done not only to protect the system from external intrusions, but also to protect separate parts of the internal network at the level of technologies and software.
<big>Establishment of a server center
</big>This year the company is also setting up a server center which will contain the firm’s main information system servers, as well as a central communications center. The facility will correspond to internationally recognized security requirements – there will be uninterrupted electricity supply, climate control and expanded protection against external factors. The center will guarantee that all of the company’s internal and client data will be safe, and there will be access to that data at any time.
<big>Establishment of the corporate network
</big>The concept for the corporate network has been elaborated, and there has been a bid for tenders which initially attracted 30 participants. Twelve were declared finalists, and the best offer in the end came from the Latvian telecommunications company Lattelekom, which offered the best quality and finance indicators. Work has begun, and it will be completed in large part in September. A Frame Relay network will ensure voice and data transmission and E-mail operations, as well as transmission of telemetric data in some portions of the system. Each computer workplace will therefore have secure communications both within the company and outside it. This will provide not only speed and safety in communications, but also an opportunity to reduce costs. In the future the network will also be used for infrastructure management – supply of program products to users, management of computer operations, etc.
<big>The role of computers in management of technical systems
</big>In the more distant future the company may also arrange for centralized management of its technical systems. First of all, however, Latvijas Gāze will have to develop a concept on developing its technical systems, as well as on dealing with various issues that concern communications among telemechanical systems. The main concern in elaborating this concept is the extent to which tele-management is necessary at this particular time. Tele-management is fairly common in similar companies abroad, but the economic situation in Latvia is such that a system of that kind might be too expensive and economically disadvantageous.
Another important issue at the conceptual level is the matter of using computers to handle technical safety issues. Latvijas Gāze is looking at systems which ensure registration of technologies part by part, assigning an ID number to each part and making note of its location and movement. If such software were introduced, the company would be able to prepare repair schedules more easily, and it could know even a year in advance which systems will be replaced or improved. This kind of software, however, is very expensive and precise, and it can work properly only in a well-ordered environment, so initially it will probably be introduced only in individual precincts of the company.
<big>A few works in conclusion
</big>When the year 2000 arrives, Latvijas Gāze will be a company with a developed IT infrastructure as a foundation for an integrated information system. Latvijas Gāze is just one of a number of companies which demonstrate the way in which Latvian firms have moved from the initial use of computers to the use of information technologies at the very highest level. This indicates that Latvia’s production sector is becoming better ordered, employees are more highly qualified, and new attitudes are being developed vis-ą-vis business management issues.