The checkout clerk is doomed, that last survivor of human warmth in most

of today’s supermarkets. His eventual executioner will be the electronic

computer, of course. Pilot systems using computers for automatic

checkouts are already drawing a bead on the jovial little man in the

green smock. Eventually even he will disappear from the faceless canyons

of our sleek supermarkets.

But the writer finds a ray of hope in the conclusion of his editorial.

Skilfully designed packages can strike an emotional chord in the

consumer, can create strong brand preferences even in the absence of

product differences. Supermarkets can give the appearance of being a

friendly, “human” place to shop even if the only humans visible are the

customers.

To make more complete the rout of conventional merchandising by the

computer-oriented system is the plan to automate even the trading stamp.

American Premium Systems, Inc., a Texas firm, is developing a plan in

which the customer receives a coded plastic card instead of a stamp

book. When he makes a purchase, a card is punched with the number of

credits he has earned. By means of a centralized computer, an IBM 1401

in this instance, records are kept continuously, and when the customer

has accrued 1,500 points he receives a premium automatically. The

obvious advantage here is to the customer, who is spared the messy task

of licking thousands of evil-tasting multicolored stamps, and the danger

of losing the book before redemption. But the storekeeper profits too.

He does not risk the loss or theft of stamps, nor does he buy stamps for

people who are not going to save them. The complete system will call for

an IBM 7074 and represents an outlay of about $3 million to service some

6 million customer accounts.

Before leaving the area of merchandising, it might be well to mention

inventory management in general and the effect of the computer upon it.

Applying what is known as “conceptual order analysis,” one marketer who

is using computers in his business talks of “warehousing without bricks

or mortar.” With a confidence born of actual testing, his firm expects

one day to have _no_ inventory except that on his production lines or in

transit to a customer. This revolutionary idea is based on practically

instantaneous inventorying, production ordering, and delivery

scheduling. While the warehouse without bricks or mortar is not yet a

fact, research discloses many manufacturers who have already cut their

standing inventories, from small amounts to as much as 50 per cent,

while maintaining customer service levels. This was done using what by

now are “standard” electronic information-handling methods. The

implication here is of the computer not merely as a data-handler, but as

a business organizer and planner as well.

_Electronic Ticker Tape_

The stock market lends itself to the use of high-speed data-processing,

even though a Wall Street man achieved notoriety some time back as the

first embezzler to use computer techniques. Admittedly it is harder to

track down the hand in the till when it pushes buttons and leaves no

telltale fingerprints or handwriting, but computerization continues

despite this possible drawback. The same firm has added digital

computers to one of its offices for faster service. The American Stock

Exchange installed $3 million worth of new processing equipment to

provide instantaneous automatic reports on open, high, low, close, bid,

asked, and volume-to-the-moment figures.

[Illustration:

_International Business Machines Corp._

On the floor of the New York Stock Exchange, representatives of

Thomson & McKinnon and IBM discuss a model of the computing system

which will speed transactions from the offices of the brokerage

houses in 41 cities to the New York and American stock exchanges.

]

The stock market’s need for the computer lies in the usual two factors:

tremendous paperwork and increasing pressure for speed. Trading of stock

amounts to about three-fourths of a billion shares in a year, and

occasionally 3 million shares a day change hands. A major brokerage

house has confirmations to handle on thousands of trades, dividends to

credit to nearly half a million active accounts, and security position

and cash balances to compute for each customer. The increasing amount of

business, plus the demand for more speed and accuracy, make the computer

the only solution.

Simply reporting the results of the day’s marketing in the newspapers is

a monumental task. The Associated Press is installing a system based on

an IBM 1620 computer, in which ticker information will also be given in

the computer for sorting, comparison, tabulation, and storage. At the

correct time, the machine will print out the format for publication in

the press at the rate of 4,500 words a minute. With a memory of 20

million characters and a capacity for 600,000 logical decisions each

minute, the computer keeps up with stock information practically as fast

as it is received, and even a late ticker will not mean a missed

newspaper deadline. Associated Press expects to be able to transmit the

stock-market results to its papers within fifteen seconds after the

ticker closes. Not just in the United States but in Japan as well, the

computer is invading the stock market. The abacus is out, and now the

exchange in Tokyo is using an advanced UNIVAC solid-state computer to

process transactions.

_Versatile Executive_

It is this high-volume capacity, speed, and accuracy that makes the

computer a welcome new employee in most business operations. An example

is the Johnson’s Wax system linking its facilities for rapid management

reaction to changing conditions. Headquarters is linked to twenty three

warehouses and sales offices, and today’s work is based on yesterday’s

inventory instead of last month’s.

Computers schedule hotel reservations, and handle accounts payable and

receivable for the hotel industry. Auto-parking, now a $500 million a

year business, leans ever more heavily on computers for ticket-issuing,

car-counting, traffic direction, charge-figuring, and collection. The

freeway too has its computers, though there have been minor setbacks

like that on the New Jersey Turnpike where an automatic toll-card

dispenser was mistaken by slow-thinking people for a collector and its

working was jammed with coins and battered by abuse when no change was

forthcoming! Man will take some educating as the machine finds wider

employment.

The computer has been seen in the publishing business primarily as a

tool for searching lists and printing addresses. Now it is beginning to

take over more important duties such as typesetting. The new daily

_Arizona Journal_ is the first newspaper to make use of this technique.

From use in other businesses, the computer has grown to fostering a

business of its own. An example is in the production of payroll checks

by specialty firms, and safeguarding against bad checks with such

services as Telecredit, a computer-run system that spots bad checks upon

interrogation from its member stores.

In Waterbury, Connecticut, a computer helps home-buyers and realtors by

listing all available homes in the area. Three reports are produced: a

total listing, a listing by style, and a listing by price. Bell

Telephone in New York uses a computer system to deliver its 9 million

directories to subscribers in the city and suburbs. The rapid system

permits changing of delivery orders even while the books are at the

printers. A computer method of making sausage recipes is now available

to all packers. Remington Rand developed this application at its UNIVAC

Center on the campus of Southern Methodist University.

_Communication_

Communication is a vital part of all business, and the digital computer

finds another application here. A technique known as adaptive control

was recently presented at a symposium by scientists from IBM.

Special-purpose computers integrated into communication networks would

make possible the “time-sharing” of channels and cut costs per message

sharply. Another digital computer, an inexpensive “decision threshold”

device, is being pushed as a means of reducing errors in the

transmission of messages. These logical uses of the computer were

presaged in the 30’s when Shannon wrote his pioneering circuit-logic

paper, and in the late 40’s with his work on information theory.

TV Station KNXT in Los Angeles uses a digital computer to control the

complicated switching necessary during station breaks. This electronic

juggling of live shows, commercials, and network programming is called

TASCON, for Television Automatic Sequence Control. It can be programmed

hours before use, and then needs only the push of the button instead of

frantic manual switching that occasionally throws the human operator.

Not just the mechanics of transmitting the commercials on TV, but even

the billing and other accounting functions are a major computer project.

To handle close to $700 million a year in payments, an IBM 7090 computer

is being used. There are more than 5,000 TV stations in the country,

with billings dependent on a complicated structure of 180 different

rates. As a result, there is an undesirable lag in payment. Putting

records on tape and feeding them to the computer is expected to clear up

the trouble and provide a bonus in the form of advising stations on

discount rates for programming on a current basis.

The computer isn’t content with skirting the edges of the advertising

game, of course. A heated battle is going on now in this industry over

the growing use of the computer to plan campaigns and actually evaluate

ads, a task held by some to be the exclusive domain of the human adman

with his high creative ability. The Industrial Advertising Research

Institute triggered the fight by using a computer to study 1,130

advertisements appearing in the industrial journal _Machine Design_ and

select the best black-and-white and the best color ads.

While diehards snorted ridicule, the computer made its choices. IARI

then compared its selections with those made by two of the largest and

most experienced rating firms. On color ads, the computer scored 66 per

cent, rating two out of three ads practically the same as the human

selectors. With black-and-white it did even better, scoring 71 per cent.

Its detractors, assuming of course that the human raters were

infallible, gloated that the computer was a flop, that it could pick

only the average ads accurately and fell down on excellent and poor

ones.

The agency of Batten, Barton, Durstine & Osborn thought otherwise and is

using the computer in its advertising. As a tool for media selection and

scheduling, BBDO likened the computer to a power shovel instead of a

spade. The new method makes it possible to compare thousands of

combinations a second. Another firm, the Simulmatics Corporation, agrees

with BBDO. The computer, it says, will permit advertising campaigns far

more effective than those waged at present, since the most efficient

campaign may be too complex to be devised without artificial aid. The

key to the Simulmatics system is the “media mix model” in which a

hypothetical campaign can be tried out in advance in the computer.

Young & Rubicam differs hotly with computer advocates. A spokesman

leveled a low blow at the computer, suggesting that it will have

difficulties forming motivational research based on Freudian analyses!

The firm says no way has yet been found to transpose “Viennese

fatuities” into Arabic numerals. It deplores the turning of a

media-planner into a rubber stamp as media selection becomes an

automatic reiteration which “those with an abacus could pipe to a stale

and sterile tune.” The battle rages, but the outcome seems to be a

foregone conclusion. Either the computer will sway Madison Avenue from

Viennese fatuities, or it will learn about sex.

_Industry_

We have discussed the computer in business; perhaps it would be well to

stress that this includes industry as well. The computer not only

functions in the bank and brokerage house, insurance office, and

supermart, but also is found increasingly in jobs with oil refineries,

chemical plants, surveying teams, knitting mills (a likely application

when we remember Jacquard), and steel mills. As automation takes over

factories, it brings the computer with it to plan and operate the new

production methods. Transportation too is making good use of the

computer. Freight-handling in the United States, Canada, England, and

the U.S.S.R. is using machine techniques.

Our high-speed airplanes are already more aimed than flown, and less and

less seen and seen from. Mach-3 aircraft are on the drawing boards now,

aircraft that will fly at three times the speed of sound or about 2,000

miles per hour. An airliner taking off from London must already be

cleared to land in New York. So authorities on both sides of the ocean

are concerned. In England, giant computers like the Ferranti Apollo and

others are on order. There is talk in that country too of integrating

military and commercial aviation into one traffic control system. In the

next ten years the sky population may double again, in addition to

flying faster, further crowding the airlanes and particularly the space

adjacent to airports. The only solution to this aerial traffic jam lies

in the electronic computer.

Not as spectacular as air traffic control, but important nonetheless, is

the job of planning the route an airliner will fly. United Air Lines

uses a Bendix G-15 to select flight plans for its big DC-8’s. In a

manner similar to the NANWEP course-planning described for surface

vessels, the computer examines a number of possible routes for the big

transports, considering distance flown, wind, temperature, weight and

fuel requirements, and time schedules.

This flight-planning was originally done by manual computation and

required an hour to work out details for only one possible flight plan.

The computer method was demanded because of the increased speed of the

big jets and their sensitivities to weather conditions en route. The

computer examines a number of tentative plans in minutes and selects the

one which will make the optimum use of winds aloft, temperatures,

weather, and so on. If weather changes en route require it, the pilot

can call the planning center no matter where he is and request that the

computer work out a new flight plan.

Once the optimum flight plan has been figured, an electronic computer in

the aircraft itself may one day assure that the desired flight path is

actually flown. The ASN-24 computer, developed by Librascope,

Incorporated, and the Air Force, weighs only thirty-one pounds, yet

performs more than 20 million computation steps in a six-hour flight.

The electronic navigator, with information from Doppler equipment and

other navigation aids, evaluates which is the best “fix,” weighing for

example the relative accuracies of a Loran fix and a dead-reckoning fix.

The computer even shoots celestial fixes and plots the results!

Obviously faster than its human monitor, the electronic navigation

computer solves navigation problems with an error as small as one part

in 32 million.

A broader use of the computer in aircraft is proposed by the Convair

Division of General Dynamics. Because today’s airplane is far more

complicated than those ten years ago, and those ten years hence will

extend this trend, the firm feels that checkout of the aircraft will

require electronic computers. While adding about 3 per cent to the total

cost of the plane, such equipment could perform a variety of functions

including maintenance analysis and would add an hour a day to the

profit-making flight time.

There would be no profit for the airlines with the best flight planning

and in-flight control in the world if there were no passengers aboard;

the “traffic problem” extends from the sky to the ticket counter. For

this reason most airlines have already recruited the computer for

another important job—that of ticket reservation clerk. An example,

recently installed by United Airlines, is the “Instamatic,” a giant,

far-flung system weighing 150 tons and requiring 12,000 miles of

circuits. Instamatic cost $16 million and can handle 540,000

reservations in a single day. So complex is the computer system that it

requires 40,000 printed-circuit boards, 500,000 transistors, and

2,000,000 ferrite memory cores. But it gets the job done, and any one of

3,000 agents all over the country can confirm space on any flight,

anytime, within seconds!

There are other systems used by competing lines, systems called Sabre,

Teleflite, and so on. But Remington Rand UNIVAC has proposed an over-all

system that will make any of them look like a child’s do-it-yourself

walkie-talkie. The UNIVAC plan is for a single interline reservation

system, used by all twenty-four domestic airlines. Called AID, for

Airline Interline Development, the new scheme would cost the airlines

only 12 cents per message, and could be tied in with foreign carriers

for international bookings.

[Illustration:

_Remington Rand UNIVAC_

Console for airlines reservation system permits pushbutton booking of

space.

]

Present methods of reservations among airlines require from less than a

minute for easy bookings to several hours for the tough ones. The AID

system uses a dial phone, with direct lines to a central computer in

Chicago. The response to the dialed request is an immediate voice

answer. If space is available, the computer also stores all the needed

information for the reservation and transmits a teletype message to the

boarding point of the proper airline.

To go back another step, the aircraft on which the computer confirms

seat space was most likely built with the help of another computer. A

typical production system is that used by Lockheed in its Marietta,

Georgia, plant. There an IBM 305 RAMAC computer keeps track of 45,000

parts orders continuously. The result is better and faster operation,

and a saving to Lockheed of $3,500 a month. In California, Lockheed is

using a computerized data acquisition system called EDGE, for Electronic

Data Gathering Equipment, that feeds production information directly

into a computer memory for analysis and action orders. Remote reporting

stations can be operated by production-line workers and will relay

production data to the central computer. Although the Lockheed EDGE

system will cost more than $600,000 a year, officials feel that it will

save the company three times that at the outset, and perhaps more when

wider use is made of its potential. An interesting feature is the tying

together of Lockheed’s widely separated plants at Sunnyvale, Palmdale,

and Van Nuys, California.

North American Aviation links its complex of plants in the Los Angeles

area by microwave, even bouncing beams of data from reflectors atop Oat

Mountain where there is no direct line-of-sight path between the

different locations. Douglas Aircraft maintains a data link between

California and Charlotte, North Carolina, to permit use of computers

over a distance of 2,400 miles.

The airlines are also using computer inventory systems to control their

stock of spare parts. Material costs represent 60 per cent of airline

revenue and are rising; some larger carriers have investments of as much

as $75 million in spare parts. It takes the computer to control the flow

of repairable parts through the shop efficiently, schedule the removal

of those requiring periodic checks, spot high-use items, and so on.

As an example of the complexity a large airline faces in its

maintenance, TWA stocks 8,000 different replaceable items. When such

parts are needed, they must be on hand _where_ they are needed, but

overstocking can lead to financial ruin. To match increasing

competition, airlines find it necessary to resort to the laws of

probability and other sophisticated statistical techniques in stocking

parts. Fed such equations, the computer can match ten to twelve

man-years of work in three hours, and mean the difference between an

oversupply of parts in New York with outages in Los Angeles, and

properly balanced stocks.

The ramifications of the computer in the airplane industry are

far-reaching. For example, Boeing has recorded the lessons it learned on

its Bomarc missile program in computers so that it can retain and apply

them on its Minuteman and Dyna-Soar programs. The computer will thus

keep track of men and their projects and warn them of previous mistakes.

Modern management techniques such as PERT and PEP, favored by the

government, make good use of the computer.

The McDonnell Aircraft Corporation is primarily a builder of planes and

space vehicles, but it has found itself in the computer business too as

a data-processing center. Installing computers for its own engineering

and business uses, McDonnell soon began selling computer time in off

hours to banks and other businesses. It now has a computer valuation of

about $10 million and operates around the clock.

_The Designing Computer_

It seems strange that the computer was a bookkeeper and clerk for years

before anyone seriously considered that it might be an engineer as well,

yet the men who themselves designed the computer were loath to use it in

their other work. Part of this resistance stems from the high premium

placed on the creativity of research and design work. The engineer uses

science in his work, to be sure, but he professes to use it as an

artist, or with the personal touch of, say, a brewmaster. There is

another possible reason for the lag in computer use by the men who

should appreciate its ability the most. In the early days of the

computer, it clacked away all week figuring payrolls, and perhaps

writing checks. That’s what it was ordered for, and that’s where the

money was—in the businessman’s application of the computer.

To be sure, the military was using the computer for other purposes, but

the average scientist or engineer not employed by Uncle Sam had access

to an electronic computer only on Sunday, if at all, when the big

machine had done its primary work and could take a breathing spell. To

further compound excuses for the foot-dragging engineer, there was a

difference in needs in payroll computation and scientific mathematical

calculation. Commercial computers are designed for a high rate of input

and output, with a relatively slow arithmetic going on inside. The

engineer, on the other hand, might need only several minutes of computer

time, but it could take him a couple of days to put the problem into a

form the machine could digest.

Slowly, however, enough engineers fought the battle of translation and

forewent Sunday pursuits like church, picnics, and golf to learn

haltingly how to use the electronic monster. It took courage, in

addition to sacrifice, because the computer was pooh-poohed by some

sharp scientific brains as an _idiot savant_ at best. Behind the inertia

there could have been a touch of concern too—concern that the machine

just might not be as stupid as everybody kept saying it was.

Heavy industry made use of the machines. The steel plants, petroleum and

chemical plants, and even the designers of highways were among the early

users of computer techniques. There was of course good reason for this

phenomenon. Faced with problems involving many variables and requiring

statistical and probabilistic approaches, these people could make the

best use of machines designed for repetitive computations. The refiner

with a new plant in mind could simulate it in the computer and get an

idea of how, or if, it would work before building his pilot plant. Today

the notion of dispensing with even the pilot plant is getting serious

consideration.

One program used by a gasoline producer analyzed thirty-seven variables

and thirty-seven restrictions, a matrix that could never be evaluated by

ordinary methods. Textile fiber research is another example, with thread

tests run on dozens of samples and averaged statistically for valid

conclusions. B. F. Goodrich put the computer to work in its laboratories

at such tasks as multiple-regression studies of past production of

processes like polymerization and the running of a batch of new material

on the computer.

Computers—the machines we think with · 第 12 / 19 段