Article ID: | iaor20041088 |
Country: | United Kingdom |
Volume: | 54 |
Issue: | 4 |
Start Page Number: | 426 |
End Page Number: | 431 |
Publication Date: | Apr 2003 |
Journal: | Journal of the Operational Research Society |
Authors: | Kimms A. |
Keywords: | communications, information |
On a very abstract level, an information system consists of a set of system elements which communicate with each other. Communication is an unproductive operation, so the time needed to communicate data should be kept as short as possible and, to put it in monetary terms, the opportunity costs for communication should be kept small. Now communicating data is more than just transmitting it; it consists in large parts of converting data structures that are used by one system element into data structures that are used by another system element. Such conversion can be avoided if the system elements use a common standard of data structures. Since establishing a standard at a system element incurs standardization costs, a decision-maker has to check if the cost savings gained by standardized communication outweigh the costs for installing the standard. In a recent paper by Buxmann