Corporate War- -Rooms: Rooms: Corporate War The Computer and - - PowerPoint PPT Presentation

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Corporate War Corporate War-

• Rooms:

Rooms:

The Computer and The Computer and “ “Total Systems Total Systems” ” in in Business, 1959 Business, 1959-

• 1968

1968

Tom Haigh – thaigh@sas.upenn.edu

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The Closed World The Closed World

• Cultural history of

Cultural history of the SAGE air the SAGE air defense system and defense system and the SDI project the SDI project

“ “The Closed World: The Closed World: Computers and the Computers and the Politics of Discourse Politics of Discourse in Cold War America in Cold War America” ”

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A A “ “Semi Semi-

• Automated Ground Environment

Automated Ground Environment” ”! !

• SAGE itself was an anti

SAGE itself was an anti-

• bomber air

bomber air defense network in 1950s & 1960s defense network in 1950s & 1960s

• Highly automated system

Highly automated system

• Collects data from huge network at central

Collects data from huge network at central command posts command posts

• Decisions made very rapidly

Decisions made very rapidly

• Enormously expensive

Enormously expensive

• Most important single project in history of

Most important single project in history of computing computing

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My Topic: My Topic:

• Construction of the computer as the

Construction of the computer as the centerpiece of a centerpiece of a corporate

corporate system of

system of command and control command and control

• During 1960s, cold war military systems

During 1960s, cold war military systems support this project by providing support this project by providing

• Technology demonstration

Technology demonstration

• Rhetoric and cultural assumptions

Rhetoric and cultural assumptions

• A visual demonstration

A visual demonstration… …

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Dr Strangelove Dr Strangelove

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The Corporate War Room The Corporate War Room… …

• “

“the war the war-

• room

room atmosphere atmosphere is growing is growing up fast up fast” ” ( (The The Corporate Corporate Command Command Post Post, 1968) , 1968) “ “one by one , the same applications that are

• ne by one , the same applications that are

pioneered and proven in military use ultimately pioneered and proven in military use ultimately find their way into business find their way into business” ” (1968) (1968)

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… …a Utopian Vision a Utopian Vision

“a more relaxed, leisurely management environment. The uneasiness will be replaced by a feeling of confidence in the completeness and timeliness of information and in the decisions based on that information….”

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The Links are Explicit The Links are Explicit

“ “A historical pattern in information systems has A historical pattern in information systems has developed in which systems, applications and developed in which systems, applications and equipment used in advanced military equipment used in advanced military… … applications presage commercial developments. applications presage commercial developments. [this] permits business to obtain valuable [this] permits business to obtain valuable insight into insight into… … concepts that will eventually concepts that will eventually become commercially feasible become commercially feasible… …. The command . The command control center is an example, with its many control center is an example, with its many parallels to the integrated management parallels to the integrated management system system” ”

John John Diebold Diebold (prominent consultant), 1963 (prominent consultant), 1963

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Management Information Systems Management Information Systems

• “

“Totally Integrated Management Totally Integrated Management Information System Information System” ”

• From 1962 to 1970

From 1962 to 1970 – – dominant idea for dominant idea for correct role of the computer in correct role of the computer in management management

• All information, instantly, all managers,

All information, instantly, all managers, whole firm whole firm

• System include models, forecasts,

System include models, forecasts, projections projections

• Used directly by top executives

Used directly by top executives

• Real

Real-

• Time, On

Time, On-

• Line

Line

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Striking but Circumstantial Striking but Circumstantial

• “

“Wow! But really, how did this Wow! But really, how did this happen? happen?” ”

• To answer this

To answer this

• Rewind to late 1950s

Rewind to late 1950s

• Identify social groups within the

Identify social groups within the corporation responsible for creation and corporation responsible for creation and propagation of these ideas propagation of these ideas

• See how these huge, vague cultural

See how these huge, vague cultural themes play out in practice and ideology of themes play out in practice and ideology of particular groups particular groups

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The The “ “Systems Men Systems Men” ”

• 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

• Corporate

Corporate – – many with accounting many with accounting background (unlike Office Managers) background (unlike Office Managers)

• Staff role

Staff role – – advisory, not supervisory advisory, not supervisory

• Aspire to true managerial power

Aspire to true managerial power

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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. Look up to RAND, McNamara, etc. Look up to RAND, McNamara, etc.

• 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

• f Cold War to sleepy world of corporate
• f Cold War to sleepy world of corporate

administration administration

• Mostly parallel but separate to industrial

Mostly parallel but separate to industrial engineering. engineering.

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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, efficiency, “ “re re-

• engineering and

engineering and replanning replanning the entire the entire system system” ”

(1958 presidential address) (1958 presidential address)

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… … but limited respect but limited respect

• Write manuals

Write manuals

• Improve clerical

Improve clerical procedures procedures

• Design forms

Design forms

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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

• Attempted renegotiation draws on power

Attempted renegotiation draws on power

• f
• f “

“systems systems” ” as universal expertise in Cold as universal expertise in Cold War culture War culture

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Enter The Computer Enter The Computer

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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

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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… …

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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

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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

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Redefining the Computer Redefining the Computer

• Embrace the computer

Embrace the computer

• But redefine it as managerial

But redefine it as managerial

• Centerpiece of a new kind of

Centerpiece of a new kind of management system management system

• Process

Process information

information, not data

, not data

• For

For management decisions

management decisions, not payroll

, not payroll slips slips

• Integrate

Integrate everything

everything (

(“ “total system total system” ”) )

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Management in the Atomic Age Management 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

• rganizational form
• rganizational form

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A A “ “Managerial Revolution Managerial Revolution” ”

• “

“our thought process will be left in the

• ur thought process will be left in the

horse horse-

• and

and-

• buggy state while our

buggy state while our

• perations are being run in the age of
• perations are being run in the age of

nucleonics nucleonics, electronics and jet , electronics and jet propulsion propulsion” ” ( (Decision Making in the Age of Decision Making in the Age of Automation Automation, Harvard Business Review, , Harvard Business Review, 1955) 1955)

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Information in the 50s Information in the 50s

• “

“Information Theory Information Theory” ” – – fashionable & novel fashionable & novel during late 1940s, early 1950s during late 1940s, early 1950s

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Information Information

• Debut of

Debut of “ “Information Information” ” in in business culture business culture

• Fortune,

Fortune, December 1953 December 1953

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Information circa 1955 Information circa 1955

• “

“Information Information” ” has scientific connotations has scientific connotations

• Used mostly for technical results

Used mostly for technical results

• First begins to acquire modern meaning

First begins to acquire modern meaning

• Tied to Cold War

Tied to Cold War– – “ “Information Explosion Information Explosion” ”

• Phrase adopted by technical librarians

Phrase adopted by technical librarians

• Seeking to rise above low status niche

Seeking to rise above low status niche

• But also linked with computers

But also linked with computers

• Technical origins of theory relate to storage,

Technical origins of theory relate to storage, transmission of symbols down a wire. transmission of symbols down a wire.

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Information Technology Information Technology

• 1958

1958 – – Harvard Harvard Business Review Business Review – – “ “Management in the Management in the 1980s 1980s” ”. .

• First use of phrase

First use of phrase “ “Information Information Technology Technology” ” for for computers. computers.

• Extremely influential

Extremely influential

• Business school

Business school professors and professors and computers as new computers as new managerial elite managerial elite

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Management Information Systems Management Information Systems

• Coined in 1959 by American

Coined in 1959 by American Management Association group Management Association group

• “

“The Continuing Seminar on Management The Continuing Seminar on Management Information Systems Information Systems” ”

• Elites of the

Elites of the “ “systems systems” ”, management , management consulting, industrial and computer vending consulting, industrial and computer vending communities communities

• Navy Report in 1959

Navy Report in 1959

• Correct use of computers is to give the

Correct use of computers is to give the Navy a Navy a single

single information system.

information system.

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Total Systems Total Systems

• “

“Totally Integrated Management Totally Integrated Management Information System Information System” ”

• All information, instantly, all managers,

All information, instantly, all managers, whole firm whole firm

• System include models, forecasts,

System include models, forecasts, projections projections

• Used directly by top executives

Used directly by top executives

• “

“Total systems Total systems” ” comes from military comes from military projects projects

• Systems Engineering in SAGE, Atlas

Systems Engineering in SAGE, Atlas

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Information, not Data Processing Information, not Data Processing

• Even successful data processing

Even successful data processing squanders potential of computer squanders potential of computer

• Don

Don’ ’t automate clerks, automate t automate clerks, automate managers! managers!

• Bigger savings because bigger activity

Bigger savings because bigger activity

• High status, closer to power

High status, closer to power

• Results can

Results can’ ’t be measured because apply to t be measured because apply to whole company whole company

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The Information Pyramid The Information Pyramid

• “

“Information Information” ” turns turns control of low control of low-

• level

level administration into a administration into a claim to strategic claim to strategic centrality in a new centrality in a new vision of vision of management management

• The whole pyramid

The whole pyramid must be tackled must be tackled together! together!

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Follow the Military Follow the Military… …

• “

“The validity of the real The validity of the real-

• time concept

time concept has been amply demonstrated in has been amply demonstrated in scientific and military applications scientific and military applications” ” (Director of Systems Planning, (Director of Systems Planning, Lockheed, 1961) Lockheed, 1961)

• “

“An adequate reporting system is just An adequate reporting system is just as essential to a business enterprise as as essential to a business enterprise as an intelligence system is to an army of an intelligence system is to an army of navy. navy.” ” ( (A Central Intelligence Program A Central Intelligence Program for Management for Management, 1956) , 1956)

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… … demand the impossible! demand the impossible!

• “

“They did not wait for new technology They did not wait for new technology to develop to develop… … before they launched the before they launched the program. program.” ” (Management Information (Management Information Systems and the Computer Systems and the Computer, 1961 , 1961) )

• “

“A science fiction era of technology is A science fiction era of technology is being witnessed today. The public is being witnessed today. The public is informed by our daily newspapers of informed by our daily newspapers of

• ur latest conquests in space
• ur latest conquests in space…”

…” ( (Management in Management Management in Management Information Systems Information Systems, 1968) , 1968)

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From Elites To Masses From Elites To Masses

• From academic and business elites

From academic and business elites

• Transition very rapid to rank and file

Transition very rapid to rank and file

• By 1961, MIS and

By 1961, MIS and “ “Total Systems Total Systems” ” are are ubiquitous part of discourse ubiquitous part of discourse

• Appeal to diverse technical and

Appeal to diverse technical and managerial communities managerial communities

• Becomes a unifying belief between

Becomes a unifying belief between disparate interest groups disparate interest groups

• Promises something for everyone

Promises something for everyone

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MIS Will Realize Potential of computer MIS Will Realize Potential of computer… …

Harvard Business Review Harvard Business Review -

• 1964

1964

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… …while elevating systems men while elevating systems men

Systems and Procedures Systems and Procedures -

• 1965

1965 Harvard Business Review Harvard Business Review

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You Need a New Computer You Need a New Computer

• “

“third generation third generation” ” hardware hardware

• Terminals

Terminals

• Random Access

Random Access Storage (hard disk Storage (hard disk drive) drive)

• Sold as MIS tools

Sold as MIS tools

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Early MIS in Practice Early MIS in Practice

• Many boasts through early and mid

Many boasts through early and mid-

• 60s of great

60s of great systems under construction systems under construction

• “

“Phase I here already Phase I here already” ”

• SAGE, SABRE as proof of principle

SAGE, SABRE as proof of principle

• Hardware, techniques hopelessly inadequate

Hardware, techniques hopelessly inadequate

• Storage capacity

Storage capacity

• Processing power

Processing power

• Analyst time and skill

Analyst time and skill

• “

“MIS MIS” ” more of a goal than a plan for many firms more of a goal than a plan for many firms

• Word of disasters leaks out circa 1968

Word of disasters leaks out circa 1968

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Backlash Begins: 1968 Backlash Begins: 1968

• Idea of

Idea of “ “total total system system” ” loses loses credibility credibility

• Controllers,

Controllers, accountants begin accountants begin to fight back to fight back – –

• Claim

Claim “ “information information” ” and control systems and control systems as what they did all as what they did all along along

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The Fate of MIS The Fate of MIS

• MIS redefined by end of

MIS redefined by end of 60s 60s

• “

“total total” ” part downplayed part downplayed

• But

But “ “management management information information” ” has huge has huge enduring power enduring power

• Vision of huge, all

Vision of huge, all encompassing computer encompassing computer system remains system remains

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To Take a Longer Term View To Take a Longer Term View

• Systems and control have a long history

Systems and control have a long history in business culture in business culture

• (

(“ “information information” ” and and “ “total systems total systems” ” are the are the new ideas) new ideas)

• Systems Men and their allies are

Systems Men and their allies are attempting to attempting to

• turn these intangible managerial things

turn these intangible managerial things into concrete, technical things into concrete, technical things

• that they control.

that they control.

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Struggling for Struggling for Manageriality Manageriality

How to turn technical expertise in administrative methods and machines into a claim to managerial authority?

• Challenge from 20s through 90s

Challenge from 20s through 90s

• Sought through a redefinition of

Sought through a redefinition of management itself management itself

• Cold War environment provides a new

Cold War environment provides a new powerful new set of tools powerful new set of tools

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In this story In this story

• Terms like

Terms like “ “(total) system (total) system” ”, , “ “management management” ”, , “ “information information” ”

• are claimed and redefined by many groups

are claimed and redefined by many groups

• Work like

Work like “ “Republicanism Republicanism” ” or

• r “

“Progress Progress” ”

• Highly charged categories, can

Highly charged categories, can’ ’t take for t take for granted or use for neutral analysis granted or use for neutral analysis

• “

“Information Information” ” is a central ideology to is a central ideology to emerge in Cold War era emerge in Cold War era

• Historians continue to naturalize it

Historians continue to naturalize it

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Discourse as Cultural Resource Discourse as Cultural Resource

• The ideology and rhetoric of the Cold

The ideology and rhetoric of the Cold War spreads rapidly into business War spreads rapidly into business

• BUT it does so as a tool to be used toward

BUT it does so as a tool to be used toward

• lder objectives
• lder objectives
• It explains the

It explains the means

means adopted by the

adopted by the systems men systems men

• BUT to explain the

BUT to explain the ends

ends they pursue we

they pursue we must probe the social history of must probe the social history of management. management.

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The Discourse Provides The Discourse Provides

• Proof of principle

Proof of principle

• SAGE invoked to show technical possibility

SAGE invoked to show technical possibility

• Military systems seen as state

Military systems seen as state-

• of
• f-
• art

art

• Blue

Blue-

• sky is the way to go

sky is the way to go – – demand the demand the impossible impossible

• Rhetoric of modernity

Rhetoric of modernity

• “

“Systems Systems” ” are modern (again) are modern (again)

• Automation is inherently good

Automation is inherently good

• Business requires instant information

Business requires instant information

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Contact Me Contact Me

thaigh@sas.upenn.edu thaigh@sas.upenn.edu