Informatics General: Difference between revisions

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[[Image:Supercomputer NSA-IBM360 85.jpg|thumb|right|260px|The IBM System/360 mainframe was the platform that Mark IV and many other Informatics software products ran on.]]
 
The history of what became Mark IV goes back to 1960 when GIRLS (the Generalized Information Retrieval and Listing System) was developed for the IBM 704 by [[John A. Postley]] (1923–2004),<ref>{{cite news | url=http://www.legacy.com/obituaries/latimes/obituary.aspx?n=john-a-postley&pid=2489965 | title=John A. Postley |newspaper=Los Angeles Times | date=August 6, 2004}}</ref> an engineer who had worked for many years in the aerospace industry; the first customer for GIRLS was the [[Douglas Aircraft Company]].<ref>Johnson, "Oral History of John Postley", p. 7.</ref><ref name="haigh-79">Haigh, 'A Veritable Bucket of Facts', p. 79.</ref> Postley was working in the Advanced Information Systems subsidiary of [[Electrada Corporation]] along with [[Robert M. Hayes (information scientist)|Robert M. Hayes]] and others.<ref>{{cite news |url=https://www.newspapers.com/image/30370716/?terms=electrada%2B%22advanced%2Binformation%2Bsystems%22 |title= UCLA Offers Short Courses for Engineers |newspaper=Valley News |___location=LosVan AngelesNuys, California |date=August 3, 1961 |page=29-A |via=[[Newspapers.com]]}} </ref>
 
In April 1963, Advanced Information Systems was purchased from Electrada by [[Hughes Dynamics]],<ref>{{cite news |url=https://www.newspapers.com/image/74589265/?terms=electrada%2B%22advanced%2Binformation%2Bsystems%22 |title=Buys Data Firm |newspaper=The Cumberland News |___location=Cumberland, Maryland |agency=United Press International |date=April 30, 1963 |page=17 |via=[[Newspapers.com]]}} </ref>
an early 1960s subsidiary of the [[Hughes Tool Company]]
that provided computerized management and information services.<ref>Barlett and Steele, ''Empire'', p. 401.</ref>
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The Federal Reserve Bank effort had begun in 1968 and involved using advanced techniques for [[store-and-forward]]-based [[message switching]] and similar needs.<ref>{{cite news |url=https://www-newspapers-com.wikipedialibrary.idm.oclc.org/article/valley-times/139229780/ | title=N.Y. Bank Engages Valley Firm | newspaper=The Valley Times | ___location=San Fernando Valley, California | date=June 26, 1969 | page=6 | via=Newspapers.com}}</ref> The implementation was based around the [[SDS Sigma 5]] computer from [[Scientific Data Systems]], a computer line which had been acquired by [[Xerox Corporation]].<ref name="lat-pact"/> The Sigma 5 had a Communication Input/Output Processor that handled up to 128 communication lines at speed from 110 to 9600 baud.<ref>{{cite conference | first1 = Paul| last1 = Day| last2=Hines| first2=John| title= Argos: An Operating System for a Computer Utility Supporting Interactive Instrument Control | conference=SOSP '73: Proceedings of the fourth ACM symposium on Operating system principles | doi=10.1145/800009.808046| pages=28&ndash;37| publisher =Association for Computing Machinery| date = January 1973 |url=https://dl.acm.org/doi/10.1145/800009.808046}}</ref> The communications system was a success and Informatics and Xerox made a joint agreement to market it to other customers,<ref name="lat-pact">{{cite news | url=https://www-newspapers-com.wikipedialibrary.idm.oclc.org/article/the-los-angeles-times/139230666/ | title=Xerox Joins Informatics in Marketing Pact | newspaper=Los Angeles Times | date=October 19, 1969 | page=7 (Section I) | via=Newspapers.com}}</ref> with the Informatics product being named the ICS IV/500.<ref>{{cite news | url=http://www.bitsavers.org/magazines/Datamation/197208.pdf | title=Communications Processors | first=D. J. | last=Theis | magazine=Datamation | date=August 1972 | pages=31&ndash;44}}</ref>
 
Informatics had hopes for the ICS IV becoming a strategic product for them, and while it was sold to [[General Foods]] and [[Japanese National Railways]], it proved a very high-priced, low-volume market and there was an effort to find a less expensive alternative. Informatics was contracted by Bankers Trust to develop a version of the system that ran on the [[DEC PDP-11]] minicomputer with a Sigma 5 emulation unit. However, the project was not successful, and by the mid-1970s Informatics departed this communications space.<ref>See Forman internal history, pp. 8-10&ndash;8-12 and pp. 11-16&ndash;11-19.</ref>
 
Subsequently, the Computing Technology Company subsidiary produced the Accounting IV package.<ref>{{cite news | url=https://books.google.com/books?id=5xOPmHIkDI4C&pg=PA31&dq=%22informatics%22+%22computing+technology+company%22&hl=en&sa=X&ved=2ahUKEwiM2r_1i-yDAxW1lIkEHQ9fBAoQ6AF6BAgGEAI#v=onepage&q=%22informatics%22%20%22computing%20technology%20company%22&f=false | title=Calendar | newspaper=Computerworld | date=October 9, 1974 | page=31}}</ref> This was a group of integrated financial applications for companies.<ref>{{cite news | url=https://www-newspapers-com.wikipedialibrary.idm.oclc.org/article/the-sydney-morning-herald/139233656/ | title=In Brief | newspaper=The Sydney Morning Herald | date=November 28, 1978 | page=17 | via=Newspapers.com}}</ref>
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By the late 1970s into the 1980s, Geno P. Tolari was the head of Informatics' government and military services operations, which was based in [[San Francisco, California]].<ref>{{cite news | url=https://books.google.com/books?id=ICoe1vr9x3kC&pg=PA164 | title=Executive Corner | magazine=Computerworld | date=June 5, 1978 | page=164}}</ref><ref name="oh-wyly-32"/>
 
Following the Sterling Software takeover, Tolari stayed on as chief of what became known as the Federal Systems Group.<ref>{{cite book | url=https://books.google.com/books?id=9WUVAQAAMAAJ | title=The Texas 500 | publisher=Reference Press | date=1994 | page=144| isbn= 9781878753397978-1-87-875339-7}}</ref>
 
===Data Services Division===
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The other had its origins with
Professional Software Systems, Inc., a [[Phoenix, Arizona]]-based firm that created [[law practice management software]] for U.S. law firms. Founded around 1976,<ref name="aba-no1"/> it provided a [[Turnkey#Specific usage|turnkey solution]] that ran on the [[Wang VS]] minicomputer.<ref name="cw-ltms">{{cite news | url=https://books.google.com/books?id=Xy-Dcn-oHUQC&pg=PA54 | title=Mini Facilities Timekeeping for Law Firm | magazine=Computerworld | date=August 13, 1979 | pages=49, 54 }}</ref>
It was one of the first software companies to realize that law firms needed dedicated computer support for client billing operations, and from that need its Legal Time Management System product was created.<ref name="cw-ltms"/> By 1980 the firm had a customer base that included 75 major law firms and revenues of about $5 million per year.<ref name="az-pss">{{cite news | url=https://www.newspapers.com/newspage/119979417/ | title=LA firm takes over software supplier | agency=Republic Wire Services | newspaper=The Arizona Republic | date=May 8, 1981 | page=30 | via=[[Newspapers.com]] }}</ref>
 
In May 1981, Informatics acquired Professional Software Systems.<ref>{{cite news | url=https://www.nytimes.com/1981/05/07/business/briefs-112720.html | title=Briefs | newspaper=The New York Times | date=May 7, 1981 }}</ref>
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===Others===
CPM Systems, Inc. was a pioneer in [[Critical path method]] (CPM) and [[Program evaluation and review technique]] (PERT) techniques that had begun as part of [[Hughes Dynamics]].<ref name="Archibald PMWT interview">{{cite web | url=http://russarchibald.com/Part1_InterviewRussArchibald.pdf | title=Interview with Russ Archibald, Part 1 | magazine=PM World Today | date=September 2008 | access-date=April 18, 2017 | page=4 and ''passim''}}</ref> In 1965 Informatics acquired it and formed the CPM Systems Division, led by Russell D. Archibald and located in [[Sherman Oaks, Los Angeles]].<ref>{{cite news | url=https://www.newspapers.com/image/160936076/?terms=informatics%2B%22cpm%2Bsystems%22 | title=Computer Firm Moved Into Van Nuys Plant | newspaper=Los Angeles Times | date=September 12, 1965 | page=31-J}}</ref><ref name="cpm-houses">{{cite news | url=https://www.newspapers.com/image/32852282/?terms=informatics%2B%22cpm%2Bsystems%22 | title=Seek Methods to Reduce Cost of Building Houses | newspaper=Valley News | ___location=Van Nuys, California | date=November 21, 1965 | page=36 | via=[[Newspapers.com]]}}</ref> Much of its focus was on the efficient planning and construction of [[tract housing]], but the business dissipated during a housing downturn in the late 1960s.<ref name="Archibald PMWT interview"/><ref name="cpm-houses"/>
 
During the 1970s Informatics brought out accounting software, but failed to compete effectively with that from [[Management Science America]].<ref name="bauer-oh-2-10">Johnson, "Oral History of Walter Bauer" (1995), p. 10.</ref>
 
Business Management Systems was another division of Informatics in early 1985, located in Atlanta.<ref>{{cite news | url=https://www.newspapers.com/image/70571534/?terms=%22Business%2BManagement%2BSystems%22%2Binformatics | title=Gray promoted in advertising | newspaper=The Index-Journal | ___location=Greenwood, South Carolina | date=February 24, 1985 | page=6C | via=[[Newspapers.com]]}} See also many classified display ads for positions at Business Management Systems placed in ''The Atlanta Constitution''.</ref>
 
==Final years and the Sterling Software takeover battle==
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[[Image:Informatics General corridor at night.jpg|thumb|left|260px|An Informatics staffer having a late night at the office]]
 
The company continued to have strong revenue growth, moving from $129 million in 1982 to $152 million in 1983 to $191 million in 1984.<ref name="lat-target">{{cite news | url=http://articles.latimes.com/1985-04-23/business/fi-11631_1_takeover-target | title=Woodland Hills' Informatics a Takeover Target: Analysts Give Dallas Software Company's Bid a Good Chance of Succeeding | first=Daniel | last=Akst | newspaper=Los Angeles Times | date=April 23, 1985 }}</ref> Profits followed the same path for most of the time, with seven straight years of increasing earnings through 1983,<ref name="ct-somuch"/> including moving from $5.4 million and $1.49 per share in 1982 to $8.5 million and $1.67 per share in 1983.<ref name="lat-target"/> But then in 1984 earnings declined to $4.7 million and 82 cents per share, with two of Informatics' ten divisions showing an outright loss.<ref name="ct-somuch"/><ref name="lat-target"/><ref name="nyt-earnings-0285">{{cite news | url=https://www.nytimes.com/1985/02/13/business/informatics-general-corp-reports-earnings-for-qtr-to-dec-31.html |title=Informatics General Corp reports earnings for Qtr to Dec 31 | newspaper=The New York Times | date=February 13, 1985}}</ref> The performance of Informatics stock became erratic, as exemplified by a market close in December 1983 where the ''New York Times'' wrote that Informatics General was the "big loser" of the day when its stock fell {{frac|5|5|8}} to {{frac|20|7|8}} after a poor earnings forecast was put out,<ref>{{cite news | url=https://www.nytimes.com/1983/12/10/business/dow-declines-1.83-turnover-increases.html | title=Dow Declines 1.83; Turnover Increases | first=Alexander R. | last=Hammer | newspaper=The New York Times | date=December 10, 1983}}</ref><ref>{{cite news | url= https://www.newspapers.com/image/14573563/?terms=%22informatics%2Bgeneral%22 | title=Market has small loss for week | agency=Associated Press | newspaper= The Galvestone Daily News | date= December 10, 1983 |page=23 |via=[[Newspapers.com]]}}</ref> or by a drop of {{frac|4|7|8}} to {{frac|15|3|8}} on a day in July 1984 when another a forecast for a break-even quarter was released.<ref>{{cite news | url=https://www.newspapers.com/image/47536018/?terms=%22informatics%2Bgeneral%22 | title=Wall Street | first=Chet | last=Currier | agency=Associated Press | newspaper=The Gettysburg Times | date=July 19, 1984 | page=12 | via=[[Newspapers.com]]}}</ref> <!-- [[Stock buyback]]s https://www.newspapers.com/image/986794/?terms=%22informatics%2Bgeneral%22
"Markets: Stocks holding modest gain", UPI, Ukiah Daily Journal, 4 Oct 1984, page=7
Stock up 1 to 16 3/4 after company announces stock buy-back of 600K shares -->
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Werner Frank had begun consulting for Sterling Software almost as soon as he left Informatics and became an executive vice president of Sterling in October 1984.<ref name="frank-80-81"/>
 
Sterling Software saw Informatics General as a possible acquisition, but Informatics management decided it did not want to be acquired, and especially not by Sterling Software.<ref name="ct-somuch"/> On April 15, 1985, Sterling offered $25 per share for Informatics, then when that was rejected by the Informatics board, on April 22 increased the offer to $26 per share.<ref name="cw-may1985-0">{{cite news | url=https://books.google.com/books?id=q03IhagslNsC&pg=RA2-PA85 | title=Sterling launches proxy fight | first=Kathleen | last=Burton | magazine=Computerworld | date=May 6, 1985 | pages=85, 99}}</ref><ref name="lat-full-ad">{{cite news | url=https://www.newspapers.com/newspage/173074527/ | title=An Important Message to the Stockholders of Informatics General Corporation |newspaper=Los Angeles Times | date=April 26, 1985 | page=90 | via=[[Newspapers.com]] | format=Advertisement}}</ref>
 
When that too was rejected, the acquisition attempt became an overt [[hostile takeover]] that was later described by one Informatics executive as "an all-out war", with both financial interests and pure ego driving it.<ref name="ct-somuch"/> Sterling deciding to stage a [[proxy battle]], taking out full page advertisements in newspapers such as the ''Wall Street Journal'' and the ''Los Angeles Times'' to try to convince shareholders to elect Wyly and Williams to the Informatics board at an upcoming [[Annual general meeting|shareholders' meeting]].<ref name="cw-may1985-0"/><ref name="lat-full-ad"/>
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* {{cite journal | last=Bauer | first=Walter F. | title=Informatics and (et) Informatique | journal=IEEE Annals of the History of Computing | volume=18 | issue=2 | date=1996 | pages=323–334 | url=http://softwarehistory.org/history/Bauer1.html | archive-url=https://web.archive.org/web/20031219085236/http://softwarehistory.org/history/Bauer1.html | archive-date=December 19, 2003 }}
* {{cite book | first1=Charles P. | last1=Bourne | first2=Trudi Bellardo | last2=Hahn | title=A History of Online Information Services, 1963–1976 | publisher=MIT Press | ___location= Cambridge, Massachusetts | date=2003}}
* {{cite book | title=From Airline Reservations to Sonic the Hedgehog: A History of the Software Industry | url=https://archive.org/details/fromairlinereser00mart_0 | url-access=registration | first=Martin | last=Campbell-Kelly | publisher=MIT Press | ___location=Cambridge, Massachusetts | year=2003 | isbn=9780262033039978-0-262-03303-9 }}
* {{cite conference | last1=Cardenas | first1=Alfonso F. | last2=Grafton | first2=William P. | contribution=Challenges and requirements for new application generators | url=https://www.computer.org/csdl/proceedings/afips/1982/5089/00/50890341.pdf | title=AFIPS '82 Proceedings of the June 7–10, 1982, National Computer Conference | publisher=American Federation of Information Processing Societies | date=June 1982 | pages=341–349}}
* {{cite book | title=The Computer Establishment | url=https://archive.org/details/computerestablis00fish | url-access=registration | first=Katharine Davis | last=Fishman | publisher= McGraw-Hill Book Company | ___location=New York | year=1981 | isbn=9780070211278978-0-07-021127-8 | type=paperback 1982}}
* {{cite book | last=Frank | first=Werner L. | title=Legacy: The Saga of a German-Jewish Family Across Time and Circumstance | publisher=Avotaynu Foundation | ___location= Bergenfield, New Jersey | year=2003 | chapter=Chapter 22: Achieving the American Dream: Becoming an Entrepreneur | chapter-url=http://archive.computerhistory.org/resources/text/Oral_History/Frank_Werner/Frank_Werner.oral_history.2006.102657942.pdf | pages=478–529}} Chapter also appears beginning on p.&nbsp;31 of pdf and cited page numbers are to those pages.
* {{cite interview | last=Frank | first=Werner | interviewer=Jeff Yost | title=Oral History of Werner Frank | publisher=Computer History Museum | date=February 14, 2006 | ___location=Mountain View, California | url=http://archive.computerhistory.org/resources/text/Oral_History/Frank_Werner/Frank_Werner.oral_history.2006.102657942.pdf }}
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* {{cite journal | url=https://muse.jhu.edu/article/369202 | title=How Data Got its Base: Information Storage Software in the 1950s and 1960s | first=Thomas | last=Haigh | journal= IEEE Annals of the History of Computing | volume= 31 | number=4 | date=October–December 2009 | pages= 6–25 |url-access=subscription |via=[[Project MUSE]] | doi=10.1109/MAHC.2009.123 | s2cid=8073037 }}
* {{cite journal | title=Advances in Information System Design | author-first=Benn R. | author-last=Konsynski | journal=Journal of Management Information Systems | volume= 1 | number= 3 | date=Winter 1984–1985 | pages= 5–32 | jstor=40397797 }}
* {{cite book | title=The Coming Computer Industry Shakeout: Winners, Losers, and Survivors | url=https://archive.org/details/comingcomputerin0000mccl | url-access=registration | first=Stephen T. | last=McClellan | publisher=Wiley | ___location=New York | year=1984| isbn=9780471880639978-0-471-88063-9 }}
* {{cite book | last=Notto | first=Ralph W. | title=Challenge And Consequence: ... forcing change to eCommerce | publisher=Fenestra Books | ___location=Tucson, Arizona | date=2005}}
* {{cite interview | last=Postley | first=John | interviewer=Luanne Johnson | title=Oral History of John Postley | publisher=Computer History Museum | date=March 26, 1986 | ___location=Los Angeles, California | url=http://www.computerhistory.org/collections/catalog/102658229 }}
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* {{cite journal | last=Bauer | first=Walter F. | title=Informatics: An Early Software Company | journal= IEEE Annals of the History of Computing | volume=18 | issue=2 | date=Summer 1996 | pages= 70–76}}
* {{cite journal | title=Informatics Acquisition by Sterling Software: Unsolicited Offer, Takeover Attempt, and Merger | first=Walter F. | last=Bauer | journal= IEEE Annals of the History of Computing | volume=28 | issue= 3 | date= July–September 2006 | pages=32–40| doi=10.1109/MAHC.2006.51 | s2cid=34259417 }}
* {{cite book | first=Richard L. | last=Forman | title=Fulfilling the Computer's Promise: The History of Informatics, 1962–1982 | publisher=Informatics General Corp. | date=1985 }} Exhaustive internal study. Praised by Campbell-Kelly as a major corporate history <!-- (p.&nbsp;23)(and in this chapter essay https://books.google.com/books?id=NZOqCAAAQBAJ&pg=PA187),--> but was a privately published typescript and thus hard to find. Subsequently made available [https://www.computerhistory.org/collections/catalog/102679129 at the Computer History Museum].
* {{cite journal | last=Postley | first=John A. | title=Mark IV: Evolution of the Software Product, a Memoir | journal = IEEE Annals of the History of Computing | volume=20 | issue=1 | date=January–March 1998 | pages= 43–50| doi=10.1109/85.646208 }}
{{refend}}