nestedness, separability, information systems, and the role of the manager

摘要

This paper models the information processing problems of a firm by using the computation and optimization of mathematical functions as an analogy to the firm's information processing and decision making activities. This representation allows us to model the division of labor through the concept of functional nestedness, while the decentralization of information and decision making can be modeled through functional separability. The approach is illustrated through a series of simple applications, which examine, for example, how decision problem structures affect the demand for information technology, and how developments in information technology influence the demand for managerial skill.