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Telecommunications and Organizational Decentralization
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1975
Year
EngineeringUrban InformaticsSmart CityKey FactorsSocial SciencesBureaucracyDecentralized SecurityManagementDecentralised SystemOrganizational DecentralizationUrban SprawlTechnology InfrastructureUrban TransportationUrban PlanningInformation ManagementCentralized Urban StructureUrban GeographyInfrastructure DevelopmentOrganizational CommunicationBusinessNetwork GovernanceTechnologyMobility ServiceTransportation Systems
Recent pressures on centralized urban structures—urban sprawl, separation of business and residential zones, dependence on transportation, lack of mass transit, and rising energy costs—have made decentralization increasingly attractive to large organizations in central business districts, especially as advanced communications technologies enable the growth of information industries and reshape cities. This paper describes how telecommunications can transform a traditional centralized organization into a diffused one linked by an intraorganizational network. The transformation relies on three factors: the ability of telecom and computer technologies to sustain or boost productivity for routine clerical and management tasks, their availability, and their costs relative to urban transportation. Telecommunications‑augmented decentralization can significantly affect transportation, telecom, labor, and land‑use policies, with specific impacts outlined.
In recent years, several phenomena have caused significant pressures on the traditional, centralized urban structure. These phenomena include urban sprawl, separation of business and residential areas and concomitant dependence on transportation, the absence of effective or widespread mass transit, and declining oil reserves with rising energy costs. These conditions have made decentralization more attractive to many large organizations currently located in the central business districts (CBD's) of major urban areas. The increasing availability of sophisticated communications and computer technologies may encourage the continued growth and future decentralization of "information industries," thereby producing major urban changes. The telecommunicationsaugmented decentralization of a traditional, centralized organization to a diffused one with an intraorganizational telecommunications network is described. The key factors in this process are discussed: 1) the ability of new telecommunications and computer technologies to maintain or increase productivity for routine clerical and management functions, 2) their availability, and 3) their costs relative to urban transportation systems. Telecommunications-augmented decentralization can have significant impacts on transportation, telecommunications, labor, and land-use policies; specific areas of impact are discussed.