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INTRODUCTION
With the trend toward more decentralization of company operations over a wider geographic area,
with more products to sell to more customers, there is also the trend to centralize management
of company operations.
In order to make the right decision at the right time--of what to build,
what materials to buy, how much of an item to ship to an area warehouse, what type of an inven-
tory to maintain and the many other involved problems of a far flung modern business--the
managers who make these decisions must have accurate data that represents the situation at the
moment--today--not last week.
For effective control, management requires timely and accurate information which reflects the
decisions on the total business environment. For example, better customer service, with shorter
lead time on orders received and faster answers to inquiries is often the determining factor in
where an order is placed.
Tne requirements for this unified systems approach io
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added significance when one considers the size of the communications problem in business oper-
ations.
The continued growth of business, increased specialization, and decentralization have
created many barriers to the flow of information. Undoubtedly the most formidable communications
problem is the sheer volume of information to be handled.
Concurrent with the need for timely and reliable information, another requirement developed. The
trend toward decentralization created the need for data processing at district locations which, in
many cases, is not economically iustified. Hence, management must rely on a centrally located
computer to handle the processing load for each district--a practice which again poses a problem
in communications.
The development of computer-based data communications networks has progressed to the point
where it is economically feasible to transmit data over public carrier facilities. New services
and reduced rates are offered for transmission of digital data. In order to take advantage of these
developments, and at the same time satisfy many needs in business communications, General
Electric developed the DATANET-30.
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