The Decision-Episode Framework and Computer-Aided Production Management (CAPM)

It is becoming clear that the application of information technology to managerial tasks has not yet produced the increases in productivity that were proclaimed in the late 1970s. The reasons for this are complex, yet three common problems have been identified. First, the systems created in the 1970s tended to automate and entrench existing American practices rather than to transform these practices. This applies especially to computer-aided production management (CAPM). In the key market of the United States, the 1970s were an era of relatively high availability of resources to management and there was only slight pressure to alter these practices in order to increase the tightness and speed of decision making. Consequently, suppliers and users enjoyed the presentational effects of the new types of formalization, but neglected the costs of processing transactions. So they paid scant attention to the flexible, cheaper alternatives being developed by the Japanese (Schonberger, 1982). Second, in the United States and Europe the supply side occupies a very strong position relative to the users. This position has been reinforced by the glamour of the new technology, especially by the presentation of CAPM as a total information system that provides centralized control of production. The influence of the supply side was implicitly strengthened by the perspective known as the diffusion of innovations (Rogers, 1983). This is one of the areas of heaviest research in the social sciences and has a pro-innovation bias (Clark, 1987). It is assumed that innovations should be adopted in the form made available by the supply side. Consequently, the needs of the user are minimized (Clark and Staunton, 1990). We argue that with innovations in information technology the user should reblend the original innovation and aim towards appropriation (Clark, 1987, pp. 155-157). Third, too much attention is given to the implementation stages (see figure 1) and too little attention has been given to processes by which the user selects and designs systems of CAPM to fit the specific situation. In particular the strategic implications are understated. Our approach seeks to make the supplier-user dynamic more transparent and to underline the significance of the early design choices. The purpose of the Decision-Episode Framework is to provide a framework that directs attention toward the key problems in the appropriation of innovations by user firms. We have examined a particular innovation that is a subset of information technology. The innovation, which is used by production controllers and related departments, consists of software and hardware which, it is claimed, provides the user with a continuing ability to program, monitor, and control the movement of inventory through all stages of production (Corke, 1985). Research on CAPM shows many examples of systems being partially used. Typically the modules are clustered within specific functional activities such as production, marketing, or accountancy. Within these areas there have been many intra-activity connections, but many fewer interactivity connections. Also, some modules considered to be highly significant are used infrequently or not at all (Burcher, 1991). In Britain there has been a tendency for CAPM modules to be introduced