Managing IT infrastructure standardisation in the networked manufacturing firm

This paper discusses managerial aspects of information technology (IT) infrastructure standardisation in networked manufacturing firms. It shows that in these firms, where local initiative is very important and strict central hierarchical control is lacking, standardisation of IT infrastructure is nevertheless highly important for effective co-ordination of activities. A strategic framework to guide managers in making sensible decisions regarding IT infrastructure standardisation, based on a number of pre-existing economic and management theories, such as transaction cost theory, organisational design, economics of information goods and IT maturity growth stages has been presented. It also points at different standardisation requirements for different kinds of business processes and explains that, in networked firms, managers should still strive for IT standardisation but also that the classical approach of coercive standardisation by hierarchical command is but one of the management policies possible, next to collaborative or competitive standardisation. Relevant examples of IT standardisation efforts in a networked multinational manufacturer in the electronics industry have been added.