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M507 Information Technology Management; Freedman


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      SESSION REPORT                                                                            ~SHARE~
                                                                                                ---:
                61       MS07                    Information Technology Management                         125
            SHARE NO.      SESSION NO.                                      SESSION TITLE            ATTENOhNCE                        INFORMATION TECHNOLOGY MANAGEMENT
                Comp~ter   Management and Evaluation (CME)                          S. Asad               RCH                  A Framework for Planning and Controlling of New
                             PROJECT                                         SESSION CHAIRMAN             INST.CODE                  Information Technology Investments
        RCA/CISS, Building 204-2, Route #38, Cherry Hill, NJ                                     (609) 338-6543
                                       SESSION CHAIRMAN'S COMPANY. ADDRESS. and PHONE NUMBER

                                                                                                                      INTRODUCTION
                                                                                                                      Every month articles appear in the business and popular press
                                                                                                                      proclaiming the importance of "Office Automation".  They usually
                                          Information Technology Management                                           begin with a lengthy justification of the issue as a cause for
                                                                                                                      management attention. So much has been written and spoken on the
                                  A Framework for Planning and Controlling                                            subject that is unproductive to reproduce the efforts.   Instead,
                                   New Information Technology Investments                                             we begin by identifying the conclusions which appear to be
                                                                                                                      universally accepted.

                                                      Harry A. Freedman                                               For example, the U.S. work force continues to shift from one that
                                                                                                                      is blue collar (agricultural and manufacturing) dominated towards
                                                       RCA Corporation                                                one that is white collar (information and service) dominated.
                                                    Two Independence Way                                              Figure 1 shows the trend graphically. Automation on the farm and
                                                    Princeton, NJ 08540                                               in the factory has so significantly improved productivity that we
                                                                                                                      need no longer deploy as much of our labor force in these areas.
                                                  Installation Code:            RCH                                   Not only are new information- and service-based industries
                                                                                                                      growing, but the white-collar cost component of manufactured goods
()'!                    Computer Management and Evaluation Management Division                                        is also increasing.
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                                                                M507                                                  The continuing decline in unit costs and increase in functional
                                                                                                                      capabilities of electronic, storage, printing, communication and
                                                                                                                      software   technologies will offer management significant new
                                                                                                                      opportunities to deploy these technologies within the business
                                                             Abstract                                                 processes.
                                                                                                                      Figure 2 graphically depicts trends in the technology-cost versus
                  New information technologies offer opportunities to improve                                         labor-cost trade-offs.    Tasks which could not be automated
                  organizational productivity and competitive position; however,                                      yesterday because of function or cost now must be automated if one
                  these opportunities raise significant management issues that must                                   is to remain competitive.   In the future,--uils trend will enable
                  be addressed if our investments in these technologies are to be                                     automation of processes that today are not perceived as attractive
                  profitable.                                                                                         opportunities.
                  In the next few years the management of all businesses will be                                      These technological advances can and must be deployed to produce
                  called on to make significant investment decisions in office-                                       significant    gains  in    productivity   in   the   management   and
                  based equipment, communications facilities, software and                                            professional segments of the white collar work force.       Booz-Allen
                  training. This paper was developed to help provide management                                       & Hamilton,     Inc. has stated, "Firms actively pursuing new
                  with a framework for making these investment decisions. It                                          technologies will be the winners while those that do not will be
                  raises issues for management consideration and suggests possible                                    the losers 



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