Information Management

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Information Technology Management from 1960-2000

By Richard L. Nolan

- IT ( Information Technology. Digital convergence in data, voice and, video

- new functions were continuously assigned to the computer due to organizational learning

- IT became an information revolution that changed the way companies worked

Stages Theory of IT Management

- Four stages of organizational learning on an S-shaped Curve

o Stage I: Initiation ( proving the value of the technology

o Stage II: Contagion ( - high learning
-Technology spreads in uncontrolled manner

o Stage III: Control (control to slow growth to a manageable

rate

o Stage IV: Integration(balance between control and growth

Three eras of IT

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Technological discontinuity ( conflict between the old and the new technology

- Managers of the “old era” struggled against those preferring the new technology

- The new technology won

- IT workers faced a “diet of continuous change”

Relationship between Organizational Structure and IT Architecture

- 1960’s -1970’s: M-Form the dominant structure.

- each operating unit would have a hierarchy of line and staff functions

- Mainframe reflected this structure

- Two types of customers for computers:

o Engineers and scientists (scientific computing) (dominant 50’s-70’s)

▪ Help in conducting research& design and manufacturing

o Managers and administrators (commercial computing) (from 70’s dominant)

▪ Data processing (paying payrolls& keeping track of customer payments (lots of input and output data)

The data processing era

- sophisticated information and communication systems supported the mgmt of the larger organizations

- accounting and budgeting systems assured resource allocation

- large-room-sized computers

- new machines could automatically perform a sequence of logical operations

- use of taped programs ( innovation of stored program

- ( fewer personnel due to machines, fewer machines due to tapes

Early Scientific computing influenced Commercial Computing

- computers used for simulations and calculations

- IBM 360 ( first all-round computer in the 1960’s

- IBM became the primary supplier (market share of 68%)and the DP manager the primary buyer

- Minicomputers (by DEC) were introduced in the 1970’s

o Development of UNIX (set of basic tools to manipulate files)

o UNIX could run on any machine

- Ethernet was established in 1979 for communications between computers

First commercial application in vertically integrated hierarchies

- title for managers: EDP (electronic data processing) or DP( data processing) manager

o powerful manager (“manage DP as a business within the business”)

- computers seen as support tools of established processes

- vertically integrated firms controlled by owning suppliers to ensure supply

- ( first applications included accounting, payroll processing and general ledger

[pic]

- the application portfolio evolved:

o first low level operating tasks within a function

o next step: integrated automated tasks. Automating mgmt control activities (operations mgmt, acc mgmt, hr mgmt)

o final step: integration of department profit plans, and corporate wide HR planning

o ( org moved up the S-shaped curve

- research in the 80’s: 50% of operational support functions and 47% of mgmt control functions could not be automated

o due to lack of structure the higher level strategic planning processes more difficult to automate

Corporate Level Financial and Mgmt Accounting

- tying divisions together

- two major acc control tools:...
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