Achieving Dynamic Stability through Information Technology.

The article presents information on achieving dynamic stability through information technology. While most firms and their managers have learned how to deal with periodic changes in market demand and production technologies, many are not equipped to deal with simultaneous rapid changes in areas such as customer demands, products, and competitive boundaries. Designing and managing the dynamically stable firm presents a difficult challenge. The author compares systems of scope to vertical and horizontal systems, noting the advantages and disadvantages of each. Asea Brown Boveri is given as an example of a central decision making unit which contains loosely linked organizational units together to for a single global entity.