Abstract

The suggestion was made that a combination of management science techniques, modern computer systems, and managers themselves could aid the corporate decision process. For expository purposes, the proposed system had three levels of management. The lower level (or sponsor) prepared projections and worked with an internal financial consultant to prepare risk analysis models. The middle level (or division manager) was used for decentralized operations and considered a project submitted by a sponsor in light of his division's project possibilities and existing operations. Top management used a remote terminal to study the projects in a portfolio context. Thus, this approach gives the top manager information not otherwise available, allows man-machine interaction using computer systems expected to be widely available in five to ten years, and offers a structure for the investment and acquisition decision process in a fashion broader than previously. Note the possible use of the system in two other management functions: planning and control.