Source: https.truthscooper.wordpress.com/2014/10/07/makin-bacon/ The industrial revolution had great impact on business structures. Companies in the 19th and 20th century were built on up-scaling. Supply chains in a push-based system drove products through the channel, pushing the product through R&D to the market. (Michael & Martin, 1994) Production was set according to ordering patterns established on factual patterns from the retailers. This keeps focus on an algorithmic system. When mastering the process with correct insight on market demand and how to regulate competitors, it was possible to drive globalization and increase industrialization. However the economy then underwent a major change, creating economic value based on physical machines and products was no longer the standard. Michael Porter was an important man for business strategy in the nineteenth-century, preaching push-market driven models, but also one of the first (1985) informing the business-landscape IT would change â€˜competitive advantageâ€™. The economy transformed tremendously because of the digital revolution. The digital economy has had a impact on many levels. Firstly, it affected the way organizations are built up. Ones companies are eager to scale-up, creating impact from off centralized organizational structures. As Porterâ€™s models prescribed, companies could only succeed when carrying the weight of scale. Scale helped dominate the market and triumph competitors. A crucial part of their success was mastering information flow. (Michael & Martin, 1994) Supply chain management involved coping with diverse information: accompanying product data, inventory levels, customer and order information, delivery scheduling, information on the distributor and supplier, current cash flow etc.
Dissertation Eva Auer