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Realizing That It Was Time to Invest in an Updated

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Realizing that it was time to invest in an updated information system,a young CEO made the following announcement in his weekly broadcast: "We are going to shake things up around here.We need to break apart our information system,and start over." Unfortunately,the message translated poorly in the minds of employees.A total shake-up such as this could impact employee morale.Progressive companies today incorporate strategies that continuously embrace:


Definitions:

Constant Returns To Scale

Constant returns to scale occur when a proportional increase in all inputs leads to an equal proportional increase in output, implying efficiency in production.

Human Capital

Abilities, insights, and practice held by a person or community, seen through the lens of their contribution or expenditure to a corporation or state.

Physical Capital

Tangible assets that are used in the production process, such as machinery, buildings, and equipment.

Technology

The application of scientific knowledge for practical purposes, especially in industry, where it affects methods of production, communication, and transportation.

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