Inventing Managerial Inventing Managerial Information: Information: Systems Men and the Computer 1957- -67 67 Systems Men and the Computer 1957 Tom Haigh – thaigh@sas.upenn.edu 1
My Topic: My Topic: � Managerial Information Managerial Information � � Basically means Basically means “ “facts about business facts about business” ” � � Closely associated with computer Closely associated with computer � � Ubiquitous in business culture Ubiquitous in business culture � � Not a meaningful category in past � Not a meaningful category in past � Look at its origins, in context of � Look at its origins, in context of � Changing technology Changing technology � � Shifting professional identities Shifting professional identities � 2
“Managerial Information Managerial Information”… ”… “ � … � …did not exist before 1958. did not exist before 1958. � … …was invented by an alliance of was invented by an alliance of � “systems men systems men” ” “ � Technocratic corporate administrators Technocratic corporate administrators � � Computer vendors Computer vendors � � Management Consultants Management Consultants � � Ambitious computer programmers Ambitious computer programmers � � … � …staked a claim to technical authority staked a claim to technical authority over core areas of management itself. over core areas of management itself. 3
A Big Story! A Big Story! � Also to be found in Also to be found in � � 2 2 ½ ½ chapters in dissertation chapters in dissertation � � Journal length paper Journal length paper � � Focus here is on � Focus here is on � Origins Origins � � Framework Framework � � Pretty Pictures Pretty Pictures � � And now, back to 1955 And now, back to 1955… … � 4
Managing in the Atomic Age Managing in the Atomic Age � Automation Automation � � Operations Research � Operations Research � Mathematical Mathematical � modeling modeling � Statistical Analysis Statistical Analysis � � Organizational theory � Organizational theory � Self Self- -conscious conscious � examination of examination of organizational form organizational form 5
The “ “Systems Men Systems Men” ” The � Systems and Procedures Association Systems and Procedures Association � � Chartered 1947 (informally 1944) Chartered 1947 (informally 1944) � � Spread very rapidly in early 1950s Spread very rapidly in early 1950s � � Managerial Technicians � Managerial Technicians � Distinguish from Office Management Distinguish from Office Management � � Corporate Corporate � � Staff role Staff role – – advisory, not supervisory advisory, not supervisory � � Aspire to true managerial power Aspire to true managerial power � 6
Who Were The Systems Men? Who Were The Systems Men? � World War II was genesis of movement World War II was genesis of movement � � Administrative innovation for wartime production Administrative innovation for wartime production � � Seek to apply rational, scientific, systems approach Seek to apply rational, scientific, systems approach � � Thrive with shift to multidivisional organization � Thrive with shift to multidivisional organization � Self Self- -consciously modern group consciously modern group � � Mostly originating in accounting departments Mostly originating in accounting departments � � Apply new and exciting Apply new and exciting “ “systems engineering systems engineering” ” ideas ideas � of Cold War to sleepy world of corporate of Cold War to sleepy world of corporate administration administration � Mostly parallel but separate to industrial Mostly parallel but separate to industrial � engineering. engineering. 7
Great dreams… … Great dreams � Management Generalist Management Generalist � � Technocratic mandate Technocratic mandate � from top executive from top executive � Audit departmental Audit departmental � effectiveness effectiveness � Reorganize departmental Reorganize departmental � structure to unlock structure to unlock efficiency, “ “re re- - efficiency, engineering and engineering and replanning the entire the entire replanning system” ” system (1958 presidential address) (1958 presidential address) 8
… but limited respect but limited respect … � Write manuals Write manuals � � Improve clerical � Improve clerical procedures procedures � Design forms � Design forms 9
Management Engineers Management Engineers � Find a niche, but a constraining one. � Find a niche, but a constraining one. � Boundaries between engineering and Boundaries between engineering and � management set in Progressive era. management set in Progressive era. � Authority of engineers clearly limited to Authority of engineers clearly limited to � “technical technical” ” sphere sphere “ � Systems men claim management itself � Systems men claim management itself as their technical sphere as their technical sphere � Generalist case hard to make Generalist case hard to make � � Executives respect technologies, specialists Executives respect technologies, specialists � more than managerial generalists more than managerial generalists 10
The Limits of Generalism Generalism The Limits of "he claims to be an expert in a subject which most other business people claim to be equally expert. What does the system man know that the office manager, or indeed, any other manager does not know?... There are already growing up in the office field a number of other techniques which do not suffer from these disadvantages. There is the computer programmer who has learned a secret language. There is the operations research man who, as a mathematician, employs unassailable mathematical techniques…. Each has his esoteric techniques to sell. But what has the systems man which is not the everyday currency of everyone else in business?” 11 th International Systems Meeting, 1959 11
Eyeing The Computer Eyeing The Computer � Prominent Prominent � � Well � Well- -funded funded � Emblematic of Emblematic of � modernity modernity � The ultimate form of The ultimate form of � automation automation 12
13 – The First Computer The First Computer ENIAC – ENIAC
A Rapid Transition to Business 14 A Rapid Transition to Business
The Computer as Showpiece The Computer as Showpiece “a computer a computer “ installation can installation can have have tremendous tremendous public relations public relations value for a value for a company” ” company Management and Management and Business Business Automation - - Automation 1960 1960 15
Its work was quite mundane Its work was quite mundane � Payroll, accounting, invoicing � Payroll, accounting, invoicing � Taking over jobs from existing punched Taking over jobs from existing punched � card machines card machines � Slow evolution hardware of hardware, Slow evolution hardware of hardware, � practice practice � Intended to automate clerical work � Intended to automate clerical work � Success means replacing clerks Success means replacing clerks � � Justified on basis of lower operating Justified on basis of lower operating � costs costs � Guarded by � Guarded by… … 16
The Machine Accountants The Machine Accountants � Not Really Accountants Not Really Accountants � � Tabulating machine Technicians & Supervisors Tabulating machine Technicians & Supervisors � � Shift to Data Processing Shift to Data Processing � � Program as well as operate machines Program as well as operate machines � 17
Systems vs. Data Processing Systems vs. Data Processing � Systems and DP often different Systems and DP often different � departments, mandates unclear departments, mandates unclear � DP grows very rapidly DP grows very rapidly � � Both groups usually under the � Both groups usually under the Controller – – focus on accounting focus on accounting Controller 18
Systems Men Look Down… … Systems Men Look Down Is the analyst turning into an artisan making Is the analyst turning into an artisan making application of punched card and magnetic application of punched card and magnetic tape equipment? tape equipment? Systems and Procedures Journal, 1960 Systems and Procedures Journal, 1960 19
but “ “Two Paths Diverge Two Paths Diverge” ” but The individual systems man must take a The individual systems man must take a position-- --he is betting his future on it. he is betting his future on it. position The time for decision is here The time for decision is here Systems and Procedures Journal, 1963 Systems and Procedures Journal, 1963 20
Having One’ ’s Cake & Eating It s Cake & Eating It Having One � Embrace the computer � Embrace the computer � But redefine it! But redefine it! � � Centerpiece of a new kind of � Centerpiece of a new kind of management system management system information , not data � Process Process information , not data � management decisions , not payroll � For For management decisions , not payroll � slips slips everything (yes, everything) � Integrate Integrate everything (yes, everything) � 21
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