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The terms “outsourcing” and “rightsizing”, along with a third term, “downsizing”, have different meanings to different people. Looks into these as alternatives for managers in rejuvenating organizations. Outsourcing to many managers means the loss of control of an internal operation. It is not as foreboding as downsizing which, at first impression, has the connotation that jobs are on the line or that expenses must be reduced. Rightsizing may imply a shrinkage in managerial levels to arrive at longer term “fat free” improvements. In a fast‐moving environment traditional methods and organizational forms are too cumbersome, and inflexible to bring about creative organizational change. More radical steps are often needed to capitalize on leaner and more innovative measures which, at the same time, reduce non‐productive “baggage” which has developed over time in most organizations.

Addresses the need for re‐engineering information systems (IS) in a rapidly changing environment, and the urgency of doing this to meet current and future needs of organizations whose existence is dependent on coping with rapidly changing requirements. Implicit in this view is the need for restructuring the industry to meet new applications including the creation of software for an era that has not quite arrived. Stresses the interdependence of technical, organizational, and human aspects in the integration of a broad range of new methodologies and tools needed to create software for the balance of this century. Re‐engineering is the examination and alteration of a system to reconstitute it in a new form and the subsequent implementation of the new form. Looks into the major management alternatives or options with particular focus on functional and information managers and their organizations.

With major technical change taking place every two years, the control of old scientific management is now seriously challenged. This situation presents either an opportunity or frustration and must be addressed towards making order out of what otherwise would be chaos. It is high time that the matter of integrating advanced information systems (AIS) be seriously addressed. Over the short history of computer‐based information systems, professionals have gone through a series of generations which were initially based on heavy technical developments of hardware, soon followed by software, and later by peopleware. Information systems (IS) soon became a feature of major courses of action in carrying out business functions. A greater demand for applications led to the need for integrated systems where business processes were facilitated and enhanced by information technology (IT). Technology and systems are changing; opportunities for success as well as competitive pressures are cascading on management; and management concerns point to the need for new managerial guidelines. Addresses AISs which are more than just organizational re‐engineering. AISs change both the thinking and decision‐making processes requiring organizational changes.