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Electronic Abacus
yoey writes: "Blast from the past in an article at the Economist: There are those who do not believe in the desirability of introducing anything as esoteric as electronics into business routine at all. Others believe that there is a limited field for electronic methods, provided that they fit into, and do not disrupt, established business systems. But there is a third group ... who consider that a major revolution in office methods may be possible. This revolution would involve scrapping the greater part of the established punch card calculating routine and substituting a single 'electronic office' where the giant computor [sic] would perform internally all the calculations needed for a whole series of book-keeping operations, printing the final answer in and on whatever form was required."
This is excellent for those highly trained people needed to keep those things running. Even if someone invented a valve that was 100% reliable, tax laws change often enough that many operators will be needed to keep this computer up to date.
Overall I think that the application of computers has lead to a remarkable increase in efficiency. But I think you have to keep your business processes simple to realize true efficiencies. Computers do not handle exceptions well, they do not make judgements well. If your business processes are riddled with judgement calls and exceptions you might want to think about replacing your back end system with the good old fashionned pen and paper (or spreadsheet these days).
I recently interviewed at a company that had 400 employees. They had an terribly complicated year end bonus structure. They spent millions of dollars and many man years automating the bonus calculation process. For 400 people. Think about that for a minute. You could hire temps to do the calculations for the next 50 years for what it cost to automate the process. To top it off the rules change every year, forcing a recode of the calculation engine.
But the root cause is needless complexity. Whether you do it with computers or will people complexity adds cost, with usually very little benefit. I have seen executive bonus systems that jump through torturous calculations that end up in a net difference of $50 compared to a simple flat percentage scheme. People just don't think about why they are making rules, and what the cost of those rules will be to the business.
But anyway, my point was, past a certain level of complexity you are better off doing it with people, instead of building fragile and intracate rule based automated systems in an attempt to handle every eventuality.
-josh
Lyons must have had remarkably forward thinking management to go to all that trouble. Design and build their own 'computor' and basically invent business computing from the ground up.
Some achievement for a bakery and chain of tea shops!
"Information wants to be paid"