BOOK REVIEW
by Lisa Kimball

Paul A. Strassmann's INFORMATION PAYOFF: The Transformation of Work in The Electronic Age. The Free Press. 1985. $20.75.

This VERY important book about the individual, organizational, and societal implications of information technology was written by Paul Strassmann, until recently Vice President of the Information Products Group at the Xerox Corporation. Strassmann goes beyond the work of many other writers on the subject by suggesting *specific* techniques for assessing the value of computers and office automation systems in terms of productivity. He is particularly creative in illustrating the role of HUMAN capital in the information economy.

"Training, training, training: these are the top three priorities to changing work in the automated office." One of the refreshing ideas in this book is that superior technology cannot *by itself* improve productivity. Strassmann believes that substandard technology in the hands of well trained users can outperform superior equipment where people haven't been adequately trained. He also suggests that a superior information system should include training, retraining, and reinforcement which can be accessed by the user over time. "The electronic medium should not only convey messages but also help people to discover their powers."

Strassmann writes that information technology is a *business strategy* but
that potential productivity gains from computers are MUCH GREATER than those
industry is reaping now. The edge will go to enterprises where top management
attends to information design issues as a strategic factor rather than as undifferentiated overhead. However, he is quick to point out that:

1. Computers will not make a bad business good.
2. Automation is a great cure, but it is not a panacea.
3. A bad strategic situation cannot be corrected by automating it.
4. Automate success, not failure.

INFORMATION PAYOFF includes a lot of ideas based on Strassmann's
research on the influence of information technology on the economy. Much of the literature about the influence of advanced communication technologies is focused on how we will consume information in the future. Strassmann suggests that information is primarily a means of production rather than an item of consumption. He is less optimistic about the potential to reduce organizational layers (and thus management overhead) than many other writers. However, he points out that *significant* savings may come from eliminating costly intermediaries in the product distribution system. "It makes possible the reorganization of an entire industry to deliver improved value to customers."

Some of the most interesting comments in the book are about the dramatic
effect electronic workstations may have on workers and the nature of their jobs. "Effective work is enlarged in scope, variable in procedure, asynchronous in time, automated in execution, and subject to instant feedback." Strassmann points out the many ways information technology can influence the evolution of work in this direction. Although he does not single it out, computer conferencing is clearly an information technology with great potential to support this change.

Strassmann's book is full of ideas based on the real world of business organizations and management and how they really *use* information technology to produce products and services. This is one of the best books on the *dynamics* of the new business environment I've read. Put it on your summer reading list while there's still time!