The dynamically stable organization serves the widest range of customers and changing product demands while building on long-term process capabilities and collective firm-wide knowledge. Critical to achieving a dynamic stability is the strategic management of information. This article discusses three primary challenges for information systems. The first challenge involves providing managers with the capability to rapidly identify and use information about product and process know-how resident throughout the firm. The second challenge involves providing information to managers about the appropriate allocation of capabilities and know-how given rapid, unpredictable product or process change. The third challenge is associated with the needs to link functions and organizations "horizontally" to increase speed and flexibility of response.
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