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Computers — The Machines We Think With

by D. S. Halacy

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Business Outlook

The computer revolution promises to reach clear to the top of the business structure, rather than find its level somewhere in middle management. The book, Management Games lists more than 30,000 business executives who have taken part in electronic computer management “games” in some hundred different versions. The first widely used such game was developed in 1956 by the American Management Association. While such games are for educational purposes, their logical extension is the actual conduct of business by a programmed computer.

In his book, Industrial Dynamics, Dr. J. W. Forrester points out that a high-speed digital computer can be used in analyzing as many as 2,000 variables such as costs, wages, sales, and employment. This is obviously so far beyond human capability that the advantage of computer analysis becomes evident. A corollary benefit is the speed inherent in the computer which makes it possible to test a new policy or manufacturing program in hours right in the computer, rather than waiting for months or years of actual implementation and possible failure. For these reasons another expert has predicted that most businesses will be using computer simulations of their organizations by 1966. Regardless of the timetable, it is clear that the computer has jumped into business with both its binary digits and will become an increasingly powerful factor.


“Men have become the tools of their tools.”

—Thoreau

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