FREE online courses on Information Technology - Chapter 8 NETWORK &
COMMUNICATIONS IN I T - Implications
The development of a national network infrastructure is the
U.S.
that features high-speed communications of mixed media, openness, published
standards, and ubiquitous access should help firms in a number of ways. In
particular, it would facilitate the development of the T-Form organization
discussed in earlier chapter, which relies so heavily on electronic
communications for its structure and operations.
What can a company do to achieve the benefits of networking?
One solution, of course, is to build your own. You can also explore the Internet
as a place to do business, a many firms are today.
Another option is to form an alliance with a provider. EDS
has supplied an estimated 50,000 networks to its customers. This services firm
takes responsibility for setting up the networks and operating it if the
customer so wishes. EDS's own network, EDSNet, is the world's largest corporate
data network. The company has an estimated $1 billion invested in it. EDSNet
mainframe computers, and 15,000 satellite dishes in 30 countries. The net
handles over 50 million transactions a day and has a storage capacity of nearly
50 trillion pieces of data. EDSNet helped the company reduce the number of
layers of management through technological leveling. In 1989 the company reduced
the number of levels between the customer and the chief executive from seven to
three, in the process forming 38 autonomous business units. EDS uses the network
to form virtual task forces for bidding on contracts. The entire resources of
the firm can be made available to any business unit. The network can also be
used to train employee on new technology. In one class 800 EDS engineers
attended a half-day briefing on a new software product in 125 different
classrooms linked by the network.
There is no need to wait to obtain the benefits of
networking. A firm can use its own resources, form an alliance with an outside
contractor, or use the Internet to develop extensive electronic links.
