An Analysis of Computer Decentralization

Abstract

This thesis is concerned with the recent trend toward decentralization of the computer facility. We conjecture that there are strong forces in many organizations leading towards decentralization, which have been held in check by technological and economic constraints that are beginning to relax. This conjecture is explored by analyzing approxiately forty case studies of decentralization decisions. The results indicate that (1) strong decentralization forces do exist in many organizations. The forces derived from these particular case studies are classified as either functional, economic, or psychological. (2) The drop in hardware costs allows decentralization to occur at the initiative of lower level managers. The consequences could include disintegration of the organization's information system. Decisions by lower level managers may overlook the technological constraints of decentralization, especially the problems of networking loosely coupled computers. This could result in a future inability to share data or programs amond organizational units. Because of the many functional advantages it provides, we do not feel that top level management should discourage decentralization. However, top level management must be aware that the technological constraints require that decentralization occur with their guidance and their perspective of the entire organization.