Abstract

Computers are effecting "information handling revolution and now handle a major share of the recording and reporting of most routine business transactions of major industrial firms. In addition, they have made possible the application of many new managerial skills. To successfully exploit the potential capability of the enormously powerful and versatile equipment presently available in "automated information factories," a competent personnel force is required to design, program and operate the complete information system. The placement of this force in the corporate structure, its own internal organization and the support extended to its activities by top management will obviously determine how successfully it accomplishes its objectives. The computer has made substantial contributions to the handling of business data for many other types of businesses, such as insurance companies, banks, utilities and major retail establishments, but manufacturing firms generally present more diversified potential applications for computers, offer a relatively similar organizational pattern as a common framework for discussing optimum structuring and comprise the largest sector of the civilian economy. The location of the data-processing function must correspond to the dynamics of the operations for which information is desired. The information requirements are important determinants of both the locations and organization of data-processing facilities. The use of computers improves information technology because more data can be considered, a greater range of alternatives can be explored and a more comprehensive evaluation of a given decision's impact is possible.