Inventing Managerial Inventing Managerial Information: - - PowerPoint PPT Presentation

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Inventing Managerial Inventing Managerial Information: Information:

Systems Men and the Computer 1957 Systems Men and the Computer 1957-

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Tom Haigh – thaigh@sas.upenn.edu

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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

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“ “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

• ver core areas of management itself.
• ver core areas of management itself.

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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… …

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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

• rganizational form
• rganizational form

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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

• 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

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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

• 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

• 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

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The Limits of The Limits of Generalism Generalism

"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

• ther 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?”

11th International Systems Meeting, 1959

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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

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ENIAC ENIAC – – The First Computer The First Computer

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A Rapid Transition to Business A Rapid Transition to Business

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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 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 Controller – – focus on accounting focus on accounting

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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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but but “ “Two Paths Diverge Two Paths Diverge” ”

The individual systems man must take a The individual systems man must take a position position--

• -he is betting his future on it.

he is betting his future on it. The time for decision is here The time for decision is here

Systems and Procedures Journal, 1963 Systems and Procedures Journal, 1963

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Having One Having One’ ’s Cake & Eating It s Cake & Eating It

• 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

• Process

Process information

information, not data

, not data

• For

For management decisions

management decisions, not payroll

, not payroll slips slips

• Integrate

Integrate everything (yes, everything)

everything (yes, everything)

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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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The Idea of Information The Idea of Information

• 19

19th

th century

century – – more likely to be an verb more likely to be an verb

• Early 20

Early 20th

th century

century – – process of one process of one human informing another of something human informing another of something

• “

“Information Officer Information Officer” ”

• With information theory becomes a

With information theory becomes a measurable quantity measurable quantity

• Original formulation involves transmitter

Original formulation involves transmitter informing receiver of something informing receiver of something

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Information Science Information Science

• “

“Information Information” ” has scientific connotations has scientific connotations

• Used mostly for technical results

Used mostly for technical results

• Information becomes a noun

Information becomes a noun

• Phrase adopted by technical librarians

Phrase adopted by technical librarians

• Seeking to rise above low status niche

Seeking to rise above low status niche

• Tied to Cold War

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

• 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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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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Management Information Systems Management Information Systems

• Coined in 1959 by American Management

Coined in 1959 by American Management Association group 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 consulting , management consulting and computer vending communities and computer vending communities

• “

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

• All information, instantly, all managers, whole firm

All information, instantly, all managers, whole firm

• System include models, forecasts, projections

System include models, forecasts, projections

• Used directly by top executives

Used directly by top executives

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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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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 key to

Sold as key to MIS MIS

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… … and a lot of consultants and a lot of consultants

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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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” ” 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 late 60s

MIS redefined by late 60s

• “

“total total” ” part downplayed part downplayed

• But

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

• MIS is dominant term for

MIS is dominant term for computer dept. in 70s, computer dept. in 70s, early 1980s early 1980s

• Reflects continuing

Reflects continuing aspirations aspirations

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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 management

Sought through a redefinition of management itself itself

• Never altogether succeed

Never altogether succeed

• “

“Information Information” ” just comes to mean just comes to mean “ “computer computer” ”

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Managerial Class Formation Managerial Class Formation

• Must take serious the different social groups

Must take serious the different social groups and castes and castes within

within corporate management.

corporate management.

• Hybrid Identities

Hybrid Identities

• Trad

Trad: Class, Race, Gender, Ethnicity : Class, Race, Gender, Ethnicity

• Here: Employee of Firm, would be Professional,

Here: Employee of Firm, would be Professional, technical artisan, member of Managerial caste technical artisan, member of Managerial caste

• “

“Management Management” ” itself is a constructed, itself is a constructed,

• verarching category
• verarching category
• Group mobility, realignment of managerial castes

Group mobility, realignment of managerial castes

• Class consciousness, ideology crucial

Class consciousness, ideology crucial

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In this story In this story

• Terms like

Terms like “ “management management” ”, , “ “information information” ”, , “ “system system” ”

• 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 of is a central ideology of present day present day

• We don

We don’ ’t have a great handle on its t have a great handle on its historical nature historical nature

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Contact Me Contact Me

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