Computer Changes and their Impact on Management
The world of computers is a field that is not only very young, but is also rapidly changing.
In one lifetime, computers have evolved from a multimillion dollar unit that filled entire
buildings, to a few hundred dollar personal computer that fits on a desktop with more
power than its predecessor. How does this change in cost, size and power affect our
management decisions? To look at these areas, it should be understood that each
characteristic not only makes a significant impact for management, but is enhanced by the
other two changes.
The reduction in computer costs over time has the obvious implications of reduced
overhead costs for a company management and possibly a smaller budget requirement for
the information technologies department. Closer inspection of the lower computer costs
shows that the reduced overhead can have a number of implications dependent
on management decisions. One decision would be to show an increased profit on the end
product margins. This makes stockholders very happy.
Management could also decide to provide more computer technology for the company
without an increase in budget, or provide hardware with less compromise in functionality.
The additional money could be used for additional specialty computer hardware that would
not normally be purchased. A company would have to research whether the increase in
computer technology would be able to provide the necessary competitive advantages or
productivity increases. Management might also decide to take an exhaustive look at the
entire company and its business process to determine if other areas might use the money
