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Use of project-management

information system for


planning information-
systems development
projects
M Amami, G Beghini* and M La Manna*

customer demand, new potential threats, market shifts


To achieve success in the global and turbulent market- and environmental changes. As speed and flexibility
place, project-oriented organizations must have an become the inescapable buzzwords, companies will ex-
appreciation of the part that project management plays. perience more decentralization, with responsibility tied
The paper focuses on providing answers to three main to the operational level. The key to success in a global
questions, relating to (a) how PM fits into the organiz- and turbulent business environment is to perform locally
ation’s strategy, (b) how to map project management and with a global vision.
information-systems planning, (c) how a company that Responding to this challenge requires a new manage-
designs and manufactures high-technology products ment approach: management by projects (MBP)‘. The
developed an IS project and resolved the mapping problem. use of this new approach would lead to a general
restructuring of companies, ultimately eliminating hier-
Keywords: organization strategy, project -management archical structures, to a ‘collective entrepreneurship’*,
information systems, information-systems planning, where differences between employees are modest, and to
information-systems development projects - a self-organizing working method based on teams and a
wired company providing an intensive communication
network. Some authors speculate that companies will
The world of the 1990s will be very different, requiring resemble ‘symphony orchestra, hospital and university’
shifts in management and thinking. Companies’ capa- organizing model?. In this project-team company en-
bilities and constraints have changed, and so have vironment, employees may no longer need top managers
assumptions, methods and solutions that served well to feed them information and orders. However, critics
enough in past decades. With continuing advances in are stressing a major pitfall concerning the project-team
computers and telecommunications, managers will have organizational-structure model. By removing primary
to shape organizations that can respond quickly to reporting-system relationships away from the usual
hierarchical functional structures, without creating
comprehensive new ones, the project-team organizing
Department of Administrative Sciences, College Militaire Royal
Saint-Jean, Canada JOJ 1RO
model will increase the number of unstable team-project
* Planning Systems Department, NECSY Network Control Systems members with continuous, renewed expertise who will
SPA, Padova, Italy tend to lose this expertise4.

Vol 11 No 1 February 1993 0263-7863/93/010021-08 0 1993 Butterworth-Heinemann Ltd 21


Although scholars are right when they point out such knowledge about the ends they want to achieve and the
pitfalls, one cannot forget that implementing effective means by which the ends may be attained. CSFs help the
project management requires a new approach that links manager in performing the kind of sorting out of the
project management to an organization’s strategy, and important strategic issues that a business organization
builds an effective interface between project management must focus on, and the number of critical projects (a
and information-systems planning. Figure I shows critical PM portfolio). One can start from these CSFs for
these linkages. a critical portfolio, and from there move to the develop-
ment of a set of plans to implement each goal; control
mechanisms are then established to ensure that the plans
PROJECT MANAGEME~ AS STRATEGIC are implemented as intended. Information systems (ISs)
SUPPORT are needed to operate the control procedures. Finally,
To achieve success in the global and turbulent market- databases are needed to store the masses of data col-
lected. By examining the latter three components, one
place, ‘project-oriented organizations’ must have an
can define the software requirements, and, finally, the
appreciation of the part that project management (PM)
hardware requirements.
plays, how it fits into the organization’s key variables
Figure 2 shows the linkages through CSFs between
(strategy, technology, structure and individuals)5.6, and
organizational strategy, project management and the
the management capabilities that it brings to supporting
information-systems planning process. Three main
and influencing the organization’s strategy. Project
activities that can be derived from Figure 2 are (a) PM
management can be used not only to support corporate
strategy, but also to contribute to its development. For portfolio selection, (b) PM information-requirements
determination, and (c) project-management infor-
example, project management may provide credible sup-
port to business strategy through product customization, mation-systems planning.
quality and differentiation. It may be used to initiate
projects that provide competitive advantage: e.g. devel-
oping new products, improving delivery time, and SELECTION
product support. In this paper, the focus is limited to
The effectiveness of the PM approach depends to a large
providing answers to three main questions, relating to
extent on the way in which the PM portfolio is selected.
(a) how PM fits into the organization’s strategy, (b)
Even in the extreme case of an organization with re-
how to map project management and information-sys-
sources capable of developing various projects, the selec-
tems planning, and (c) how NECSY, a company that
tion process would still be necessary to ensure the
designs and manufactures high-technology products,
congruency of the project portfolio with the organiz-
resolved the mapping problem.
ation’s strategy. Although the existence of political
pressures surrounding project selection is a fact of
LINKING PROJECT MANAGEMENT TO organizational life, the authors believe that using the
CSFs method may change the nature of a very political
ORGANIZATION STRATEGY
process by affecting the types of project to be approved,
As stated above, today’s business organizations are resulting in a critical project-management portfolio
faced with an increasingly competitive and hostile en- that is congruent with the organization’s mission.
vironment. To survive, they will have to constantly
develop newer and better methods of speeding their
decision-making process and meeting customer require- PROJECT-MANAGEMENT INFORMATION
ments in a cost-efficient manner. The critical success-
REQUIREMENTS
factors (CSFs) approach’ (see Appendix) offers some
insight about the development of coherent project man- One of the major causes of poor project management,
agement that is linked to business goals and strategy. apart from poor definition, scheduling and control, is
CSFs build on the premise that managers have a good the difficulty of communication between project-team
members and the understanding of their individual
perspectives. This is probably one of the more complex
and least-examined aspects of project management. The
authors believe that the best way to get people commit-
ted to a project’s success is to understand their needs
and perspectives.
, I 1 The very nature of projects means that they involve
‘1
people from different departments who have different
Project management backgrounds, languages, training and objectives. The
organizational structure in most organizations actually
creates barriers to project communication. Ambiguities
I t about project strategy, goals and critical success factors
Information systems planning
lead to noisy information, and through time the prob-
lems may become dangerously very complex. How can
ambiguity be overcome, barriers be broken down and
Figure 1. Project -management ~~~kage~ to ~rgan~~at~~n ‘s trust built, mutual understanding be achieved, and, most
strategy and ~~~orrnat~~~ -systems planning of all, the interdependence be achieved that keeps every

22 International Journal of Project Management


M AMAMI, G BEGHINI AND M LA MANNA

Industry conditions
Technology trends (competitiveness, new entries)

PM strategy
c
Congruence Congruence
I ,A
A
Goals
4

Congruence I Congruence

Orgonization CSFs PM CSFs


J

I
Measures Measures
I I
I

Critical I porfolio
PM

a b

1 Project in~mation 1 Project decisions

I
1

Plans Plans

~ I

Control procedures -
I
Software
Management support requirements
system analysis

I 4
liardware Data model Hardware
requirements requirements

I
-
Database

c d
Figure 2. Linkages rhrough critical success factors between business strategy, project management and ~~for~at~o~-

Vol 11 No 1 February 1993 23


team member connected and informed regularly and identify possible sources of delay before they occur and
frequently? The authors believe that critical-success- to isolate areas of responsibility. By establishing an IS
factors techniques can be used to overcome these that responds to project-team members’ needs, motiv-
difficulties. CSFs have a focusing device, so that man- ation, creativity and good functioning, communication
agers are not diverted to secondary factors, but rather will follow. In this environment, when complexities
aided to devote efforts and sufficient resources to the arise, deviation from a formalized network can occur
things which will ensure continued success. CSFs could without penalty, and a sequence of relationships which
be used in project management for at least three related cannot always be specified beforehand can be easily
purposes: overcome.
The project management must interface with the
clarifying PM focuses, by highlighting similarities and departmental computer system’s corporate base, e.g.
differences between project managers’ CSFs, with financial-accounting, inventory-control, marketing,
developing project managers’ information needs, by engineering and production systems. These interfaces
relating CSFs to specific databases and items of may decrease, for example, the gap between those
decision-support information, collecting cost data and those deciding on costs. This
setting PM information-systems priorities, by ident- also ensures that data definitions, interpretation and
ifying the various types of information that must be representation are the same throughout the organiz-
provided. ation. Once the project managers’ information
CSF methods begin with a series of interviews, and move requirements have been determined, how can these
to a workshop where CSFs are assessed, and PM strat- requirements be transformed into software tools
egy is decomposed into logical components. Decom- (e.g. models, graphics) that deliver timely project data to
posing the overall project strategy makes the remaining managers? How can company organizational structures
tasks more manageable. Used in this way, CSF methods be shaped to facilitate the interface between the project-
help in identifying the ‘things’ that will assure the management function and the information-systems
project’s success. Figure 2b shows how CSFs are tied to function?
goals, and goals to PM strategy. Strategic thinking is not To answer these questions, the paper will focus on
the sole prerogative of senior corporate management, NECSY (see below), a company that designs and
but an activity at all PM levels. This way of thinking manufactures high-technology products, to see how
moves PM from having an internally neutral status to project-management information requirements are ful-
having an externally supportive status. filled, and how the organizational structures are shaped
to facilitate project management and the information-
systems interface.

MAPPING PROJECT-MANAGEMENT
INFORMATION REQUIREMENTS AND NECSY
INFORMATION-SYSTEMS PLANNING NECSY Network Control Systems is an Italian firm
with more than 400 people operating in the telecommu-
Once the CSFs have been determined, the project-team
nications field. The company designs and manufactures
members focus on the generation of project information
high-technology products that fall into three categories:
(e.g. exchange rates, inffation impact, design changes,
devices, instruments and systems. Generally, new pro-
customer requirements, contract-change orders, delivery
ject developments last approximately two years, and
times). From this project information a set of plans is
involve a design team which varies in number from three
developed to implement each goal. Then, control mech-
to 20 persons according to the project size. Currently,
anisms are established to ensure that the plans are being
there are 27 projects in progress. Because the company
implemented as intended. Information systems, which
operates in a high-technology field, it is confronted with
incorporate many of the informal indicators and prac-
an unstable and complex environment. Consequently, it
tices, are developed to support project teams during the
is necessary to provide project managers with tools that
whole project lifecycle. Subsequently, a data model maps
help them to intercept rapidly early-warning signals to
project-team needs and policy requirements into a corre-
undertake the appropriate corrective actions.
sponding data representation. Databases are needed to
store the data collected. Finally, software and hardware
requirements are defined (see, for example, Figure 2~).
ORGANIZATIONAL CHOICE
The IS must provide information at all levels of detail at
reasonable time intervals and cost. A second important The traditional organizational model involves the inter-
point is that the IS must provide constant monitoring action of two functions: the information-systems func-
and regular feedback, thus ensuring the project’s success. tion and the project-management function. On the basis
For example, one can use a software package to update of project-management needs, information-systems de-
plans, and the updates are then made available to all partments select the required hardware and software,
project-team members through an effective information and update and maintain applications. Because infor-
network. Each project-team member may be encouraged mation-systems people have ‘limited’ knowledge about
to send the project manager an electronic message informal organizational structures and methodology
raising issues that he/she sees in the plan update. With and organizational procedures to manage projects, in-
computer-based information support, management can fo~ation supplied to the project management too often
structure complex projects in an understandable way to does not correspond to managers’ needs. Generally,

24 International Journal of Project Management


M AMAMI, G BEGHINI AND M LA MANNA

system configurations, software packages and cus-


tomized programs have to be adapted by project
Electronic Specifications
managers to fit organizational methodology. The com- data Project
petitive environment of NECSY cannot support this processing management
dichotomy. To overcome these problems, the company department Software tools department
adopted a new organizational model by creating an system configuration _
interfacing department called the planning-systems t f

EL
department (PSD). Figure 3 shows the migration from
the traditional organizational model to the new organiz-
ational model. The PSD integrates computer-science
knowledge and methodological organizational com- Organization
petency. The tasks of the PSD are
Project
management
to clarify the project management’s focus by high-
lighting similarities and differences between project
managers,
to develop project managers’ information needs,
to set project-management information-systems
priorities, by identifying
mation that must be provided,
to introduce
the various types of infor-

new methodology
project management,
and procedures
and to develop new software
for
r-l
Electronic
data
processing

packages, implement them and ensure their appli-


cation,
to monitor the software-products market for planning
purposes,
to maintain the project-management package and the
applications developed.

The PSD offers project managers real organizational and


methodological solutions based on specific knowhow
such as (a) project-management methodology and
procedures, (b) formal and informal organizational
information flows, and (c) information-systems soft-
ware. Because of the new organization model and per-
sonal direct experience with project-management
problems, new organizational and methodological sol-
utions can be developed and integrated into customized
software tools which can be made available to project
managers. This new organizational model makes it
possible for project managers to use the software directly
and to follow automatically the methodology (organiz- GPMI
ational procedures to manage projects derived from the Figure 3. Project -management organization
project-management discipline). Consequently, the new [PMIS linkages require a new organizational model. An interfacing
organizational model helps the migration from a model department has been created called the planning-systems
department.]
where project managers have to link commercial soft-
ware packages and organization methodology to a
model where the PSD makes the necessary linkages and
carries out continuous updating. The linkage of the IS Figure 4, which integrates users and data, has two major
department through the PSD initiated the development logical components. On the bottom, there are the pro-
of a graphic project-management interface (GPMI). ject-management data and the commercial package (e.g.
The latter is an integrated software tool developed by Project/2 and Oracle) for retrieving and managing these
the PSD that links Project/2 (this is a PSD trademark) data. On the top, three types of interaction with project-
to NECSY’s methodology. The GPMI is integrated in management data can be seen, each divided into three
two ways: layers with different characteristics.
In the traditional approach, the development and
l horizontal integration between the various modules of maintenance of planning models is the responsibility of
which it is composed and the other instruments avail- the project manager, and it is carried out either by a
able for use (database, resource scheduler etc.), project-management assistant (PMS) through screen
l vertical integration within the organization in which it applications or by the package expert through the
is inserted; the GPMI enters into the corporate struc- command language. After this, the project manager is
ture without modifying the organization, resulting in forced to request modifications by other persons and to
a systemic approach. verify the end results. In contrast, the graphic level

Vol 11 No 1 February 1993 25


Use of project-management information system for planning information-systems development projects

In this way, correct procedures may be achieved. This


procedure, which allows the use of an instrument such
Tools Levels Users as the WBS, provides an overall view of the entire
1-7 project, and, successively, the planning of the details
provided by the network. Normally, the logical bond
between the WBS and the network is maintained only by
means of assigning proper activity codes. Instead, the
GPMI, although it uses standard data structures, forms
a logical bond between the WBS and the activity.
The NET module permits complete management of
the network associated with the final WBS elements,
chosen directly or by means of passage through the WBS
module. Even here, various operations are possible that
in this case obviously act at the activity level.
The PBS module allows the management of the PBS
of the project using a new ‘breakdown’ and view in terms
of work phases. The PBS is, in substance, an additional
Project management data logical view of data according to the time sequence
allowed by the parts of the project. Both the PBS module
Figure 4. Integration between users and data and the WBS module provide the summary of project-
[In this environment, the project managers act directly on the data for management data present at lower levels (such as the
which they are responsible. Tools: For the command language, start and finish dates provided by the resource-constraint
Project/2 and Structured Query Language (SQL) can be used to
manage the data. At the second layer, forms are available for the
scheduler, actual costs, estimates to complete) at the
project-management assistant (PMS). The GPMI provides the graphic level selected by the user. The GPMI uses data supplied
level needed by the project manager. Levels: Using the command level, by the corporate-planning package, within which the
system managers can manipulate and change the data. Using the basic element is the activity with its related resources. On
application, the project-management assistant can implement the
the basis of these elements, the GPMI provides a series
integrity checks necessary for easy data insertion. The graphic level
provides data for the project manager in a way that corresponds to the of ‘logical views’ that are coherent with company pro-
semantic view needed. Users: In NECSY’s environment, there are three cedures and recommendations.
kinds of users: the system manager, the project-management assistant
and the project manager. The system manager has a physical knowl-
edge of the data. The PMS has a logical knowledge of the data. IMPLICATIONS OF IS DEVELOPMENT
Without knowledge about the physical data, he/she can modify, insert
a new activity, or derive a progress report. The project manager has PROJECTS
a semantic knowledge of the data to establish precise relations between
The CSFs approach combined with the new organiz-
data and reality. Because there is different knowledge of the data, there
should be different levels of data representation.] ational model helps project managers to concentrate less
on technical aspects (e.g. commercial software conver-
sion and adaptation), it emphasizes more the business-
provided by the GPMI gives the project manager access strategy and project-strategy linkages. By developing a
to data which would normally be managed at the two GPMI, project managers can support project-team
lower levels (see Figure 4). The implications of this members’ information needs, and provide an overall
new environment are easily understandable: speed, view of the PM objectives. Indeed, by using the CSFs
efficiency and proper integration are only some of the approach and highlighting similarities and differences
more macroscopic benefits. A description of the GPMI between project managers in the PM early phase, it was
follows. relatively easy to develop project managers’ infor-
mation needs and, consequently, the PMIS priorities.
The development of PMIS in an engineering company
GPMI such as NECSY which designs and manufactures high-
technology products helps to accomplish the following
The GPMI is, at present, composed of interrelated goals.
modules: the work-breakdown structure (WBS), the
phases-breakdown structure (PBS) and the network
(NET). Each module offers its own commands, which Interdependence
are chosen by means of a mouse and pull-down menus.
Project management built around an information system
The WBS module provides complete management of the
increases interdependence. Consequently, the sharing of
WBS of the project in terms of the insertion, modifi-
tasks, roles and decision-making increases. Project
cation, movement, printing, visualization and deletion
managers will be more and more involved in situations
of elements. The visualization, in particular, is intended
in which it is difficult to distinguish local (at the project
to be realized at two levels:
level) and global (at the business level) decisions.
l the visualization of the WBS tree, with the possibility
of carrying out panel and zoom functions, Present work-breakdown structure
l the inspection of the final elements of the WBS with
automatic execution of the NET module for the Referring to the project-management body of know-
management of the associated network. ledge, the WBS structure is defined as follows.

26 International Journal of Project Management


M AMAMI, G BEGHINI AND M LA MANNA

~e~njtio~ of WBS: a task-oriented family tree of activi- only two of the most obvious results obtained following
ties which organizes, defines and graphically displays the the development and the introduction of the GPMI.
total work to be accomplished in order to achieve the Moreover, the WBS and the PBS (two modules of the
final objective of a project. Each descending level rep- GPMI) are stored in a relational database with other
resents an increasingly detailed definition of the project project data substituting for traditional archives,
objectives. It is a system for subdividing a project into making them directly available to project managers.
manageable work packages, components or elements to The instruments used in developing the GPMI have
provide a common framework for scope/cost/schedule been specifically chosen to favour the eventual migration
communications, allocation of responsibility, monitor- of software to other environments. Thus, the solution
ing and management’. adopted consists of the c language with the graphics
GKS library together with several Oracle modules with
The WBS is communicated in the PMTS through the Project/2 as a tool in project management.
assignment of each activity to each of several available
sorting codes. By using codes, the WBS module provides
complete management of the WBS of the project in
terms of sorting information by engineering and design SUMMARY AND CONCLUSIONS
discipline, evaluating the status of work by area,
outlining sequences, major techniques and priorities, The PMIS development, i.e. the GPMI,
and so on.
forces organizations such as NECSY to map project
management and information systems,
allows project managers to communicate accurate
Tie PMIS to project schedule
information, and consequently enhances Ieadership,
Every activity in the PMIS should be reflected in the allows project managers to meet schedule require-
detail schedule. This is accomplished by listing the ments,
detail-level schedule activity number of each activity. By allows the support of teamwork by providing facilities
developing a common database, project managers can to interchange information,
retrieve sufficient detail to evaluate the project status and allows the insertion, modification, movement, print-
the necessary resources. ing, visualization and deletion of elements.
Using the GPMI, the managers associated with the
project will be enabled to understand further the
PMIS development
status of the work in progress and the developing
Project-management information systems allow pro- trends. With sufficient shared information, project
ject-team members to target what is most critical to the managers can jointly impact the future execution of the
project. By having the ability to conduct ‘real- project.
time’ analysis and planning at all levels, project
managers bring key issues to the surface and react to
them quickly. The PMfS provides critical information
to team members and, consequently, the ability to REFERENCES
disseminate deviations from plans. The PMIS allows
the involvement of team members throughout the pro- Gareis, R ‘Management by projects: the management
ject lifecycle. It also allows the simultaneous carrying approach for the future’ Int. J. Project Manage.
out of the traditional phases. Information is the driving Vol 7 No 4 (1989) pp 243-249
force of the project instead of equipment, energy etc. Reich, R B ‘Entrepreneurship reconsidered: the
With a PMIS, ‘complexification’ becomes possible. One team as hero’ Harvard Bus. Rev. (May/Jun 1987)
is no longer tied to a formalized network that limits Drucker, P F ‘The coming of the new organization’
flexibility. Changes can be made as the project Harvard Bus. Rev. (Jan/Feb 1988)
progresses. Hauptman, 0 and Allan, T J ‘The influence of
communication technology on organizational
structure: a conceptual model for future research’
PMIS deveIopment requires new orga~zational ~orkjng Paper Sloan School of Management,
model Massachusetts Institute of Technology, USA (May
1987)
The NECSY example shows how to create the linkages
Chandler, A Strategy and Structure MIT Press, USA
between the project-management department and the
(1962)
information-systems department. Although particular
Leavitt, H ‘Applied organizational change in indus-
to that company’s environment, the GPMI development
try’ in March, J G (Ed.) Handbook of Organizations
was the result of the creation of an interfacing depart-
Rand McNally, USA (1965)
ment (the planning-systems department).
Rockart, J and Bullen, C ‘A primer on critical success
factors’ Center for Information Systems Research,
Massachusetts Institute of Technology, USA (June
Project manager’s satisfaction
1981)
The project manager’s satisfaction and the decreased Project management Body of ~no~~iedge Project
necessity for personnel responsible for input data are Management Institute, USA (1987)

VoI 11 No 1 February 1993 27


Use of project-management information system for planning information-systems development projects

APPENDIX provide the capability of developing PMISs that are, in


part, designed by people working from a business or
Critical-success-factors techniques for project- managerial perspective.
management selection and information-requirements
determination
Mokhtar Amami received an MSc
from Tunis University, an engin-
Critical success factors (CSFs) are the key factors which eering degree in statistics and econ-
an organization or a manager must focus on, and omics from ENSAE, Paris, France,
continually monitor, in order for the organization to and a Doctorat d’6tat in economies
from the University of Paris I
succeed in its business,
(Sorbonne), France. He wsent on to
There are four primary sources of CSFs: become a professor of economics
and management at the University
industry-based factors, of Quebec, Canada. He spent two
years as a visiting feUow in manage-
competitive strategy, industry position and geo- ment information systems ai the
graphic location, Sloan School of Management, Massachusetts Institute of Tech-
environmental factors, nology, USA. Since 1984, he has been a professor of managemenr
temporal factors. information systems and operations management at the CoWge
Militaire Royal de Sainte-Jean, Canada, and has acted as a
consultant in MIS projects.
How do CSFs work? The CSFs procedure is as follows:

l introduction,
l interview of CEO and top managers, Giorgio Beghini graduated in elec-
l focusing workshop: (a) aggregate plus analyse individ- tronic engineering from the Univer -
ual CSFs, (b) develop agreement on organization’s sity of Padova, Italy, in 1983. In
CSFs, 1985, he joined NECSY Network
Control Systems in the Planning
l define organization’s CSFs, Systems Department. He has been
l use CSFs for PM portfolio selection. involved in methodology and soft-
ware projects for project manage-
ment using a relational-database
The principal method used in CSF analysis is that of
management system. He is currently
interviews with the CEO and top managers to identify involved in the analysis and develop-
their goals and the resulting CSFs. These personal CSFs ment of integration between configuration management and proJect
are aggregated in a workshop to develop a picture of management. He also cooperates with the University of Padoua in
the organization’s CSFs. Then, a project-management project-management methodology.
portfolio is selected.
Once the CSFs have been determined, and a project-
management portfolio has been selected, the project Marco La Manna graduated in
managers focus on the generation of a critical-infor- electronic engineering from the
mation set and thereby on the PMIS definition. The University of Padova, Italy, in 1985.
In 1986, he joined NECSY Network
transition from CSFs to a system definition is not a Control Systems in the Planning
straightforward simple process, The transition relies Systems Department. He has been
heavily on the technical expertise, on the accurate involved in methodology and sofi-
identification of user sets, on the interfacing organiz- ware projects for project manage-
ment using a relational-database
ations, and on the kind of optimality that one wants to
management system. He is cur-
reach. By using the CSF approach, the IS manager is rently working on the software-
able to understand better the project managers’ needs develooment environment and its
and the organization’s objectives, and he/she may relationship IO project and configuration management. He also
develop systems which incorporate many of the in- cooperates with the University of Padova in expert-systems
applications for project management.
formal indicators and practices. In doing this, CSFs

28 International Journal of Project Management

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