Malone & Rockart 1991
Malone, T. W. and J. F. Rockart (1991). Computers, Networks and
the Corporation. Scientific American: 2-9.
This article provides a high-level yet reasonably detailed overview
of why the influence of computer-based systems may prove important
over the course of our working careers (e.g., the next 20-40 years).
Their argument includes the following possibly interesting ideas:
Networked databases as coordination technology
- Networked computers are replacing physical coordination with
information-based coordination. In economic terms, this can lead
to lower coordination costs across a value chain.
- The implications of this idea are fairly dramatic for any
physical product that requires development, manufacturing, and
distribution; or for any service that represents the coordination
of physical objects or physical activity.
- In short, reducing coordination costs may prove one of the
biggest changes to affect our economy since the invention of mass
production.
The third-order change model
- The first change from IT-based coordination systems may be
to substitute computer-based systems for human coordination.
- The next (e.g., the second-order) change may be to increase
the amount of coordination used (since IT can make coordination
cheaper). This means new designs for business processes that offer
new solutions to the old problems of designing, marketing, manufacturing,
and distributing products or services.
- The third-order change (that follows these new processes/solutions)
develops coordination-intensive organization structures to support
the new processes. These structures could affect companies or
change the rules of competition across industries. They may change
the way a value chain works, change existing competitive advantages,
and change the structure of an industry.
Comments
Does this summary sound a little breathless? The scope of these
ideas is pretty broad. As you look through the examples in the
article, however, ask yourself to what degree you could derive
similar examples from your own experience. "Coordination"
is certainly not the mantra that solves every management problem,
but the perspective might be useful in considering bottlenecks
in work processes and exploring why some management structures
appear dysfunctional. We'll explore these ideas further in class
and project discussions.
I'd be happy to hear any questions or comments you might have
about the article.