The dial tone does not come from God! how a crisis can challenge dangerous strategic assumptions made about high technologies: the case of the hinsdale telecommunication outage

Abstract

Executive Overview While advanced information technologies are “competitive weapons” for competing in the global environment and increasing productivity, they can also become a dangerous strategic disadvantage when they breakdown. Based on the case example of Hinsdale, a large telecommunication outage recently experienced in the Chicago area, we show how faulty basic assumptions about these technologies and about the contingency planning they require, have not only defeated many of these contingency plans during this crisis, but also contributed to its negative impact. We also present the diverse strategies and tactics that some managers have implemented, after having challenged these assumptions through their direct experience of this crisis, for managing the “darker side” of these technologies and for taking full advantage of their competitive potential.

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