at consumer tastes have changed, making customized items more appealing than they once were. All the factors leading to the current organizational transformation are undoubtedly numerous and far from being independent, but we would like to single one out for special attention: the rise in IT. Old Vs New StructureThe new organizational model is strongly connected with the structure of an organization's information systems. Under the old model (Mechanistic), the firm was governed by a relatively rigid functional structure. This separation into distinct and well-defined organizational units economizes on the information and communications requirements across functional units and reduces cost and complexity. There is a tradeoff, however: the old structure is less flexible, less responsive and ultimately results in lower quality. In my view, the growing use of IT and the trend towards networking and client-server computing are both a cause and an effect of the organizational transition. Lowering the costs of horizontal communications, facilitating teamwork, and enabling flexible manufacturing and providing information support for time management and quality control. It is equally clear that the new organizational model (Organic) demands new information systems: nothing can be more devastating for cross-functional teamwork than a rigid information system that inhibits cross-functional information flows. We can unify these perspectives by noting that the structure of the organization's information system is a key element of organizational transformation. Changes in IT change the nature of organizations just as changes in organizational structure drive the development of new technologies. "In summary, the traditional organizational structures and practices do not have to stay the same as we move into the 1990s. All dimensions of the organization will have to be reexamined in light of the power of the new IT. The economics are so powerful and ap...
