Societal Impacts of Computing Before 1950

Joseph Huttner
Dr. Lindell
28 October 2005
History of Mechanical Thought

Societal Impacts of Computing Before the 1950’s

The era of electronic computing took root following the invention of the ENIAC, the first multi-purpose electronic-digital computer, in 1945. Within the next five years, electronic computers would be used in countless business applications, creating a tremendous demand for faster, more reliable (and just plain better) electronic computers. This demand was recognized by the U.S. Government and private research corporations, bringing about huge investments in research infrastructure and improving quality of life through technological developments.

Prior to improving quality of life, however, electronic computers had to be invented. The groundwork for electronic computing began during WWII. The U.S. Military needed to calculate ballistics firing tables hundreds of times faster than the speediest human computers were capable of doing. A fully electronic computer was the only solution, as traditional mechanical relays restricted computing speed. While the use of electronics in computing had been in place earlier, “it took this War to speed up the application of new electronics to information-handling equipment” (Cortada, 284). The U.S. would develop the ENIAC (and later the EDVAC) for this task, and technology’s role on the battlefield was solidified. The ENIAC was also used to calculate neutron cross-sectional densities to help in the design of the hydrogen bomb (Wikipedia, 1). As electronic computers became increasingly necessary for national defense, the “military became a de facto architect of high technology policy…and set the priorities for research and development, serving as a large consumer of new products, and influencing the structure of an entire industry” (Misa, 18).
Despite the early focus of computing on military engineering applications, computers were quickly used in other areas. The U.S. Government, as well as technology innovators like RCA and Bell Labs, poured billions of dollars into developing new technologies in computing with the “apparent promise of reduction in power requirements for electronic gear, miniaturization aspects, new current techniques, etc” (Noam, 10). These innovations in computing sparked a “new era of modern technical accomplishments” (Bell Labs, 1) – not only in computing, but in television, radio, and communications as well.

Businesses soon realized the same technology breakthroughs that were helping develop wholly new electrical products could be retrofitted to businesses already using electromechanical computers. The advantages of the fully electronic ENIAC over electromechanical computers were undeniable and quickly integrated, bringing about increases in speed, output and reliability, while decreasing instances of overheating. The U.S.’s “ability and inclination to accept technological change and adopt it quickly” (Cortada, 284) boded well for the rapid evolution of computer products, and also helped drive down the cost of electronic computers. Due to lower costs, the use of these advanced computers became widespread, ushering in a new decade of increased output and efficiency.

The best example of how increased efficiency in the business world brought about positive societal changes was in the rapidly expanding banking industry. As the U.S. population grew, an increased volume of checks needed to be processed accurately. As in the case of the ENIAC, human computers were too prone to error during transactions. So, in 1950, Bank of America developed the Electronic Recording Method of Accounting (ERMA) in an effort to computerize the banking industry. Check processing and account management were computerized, and checking accounts were posted electronically. In partnership with Bank of America, Stanford University invented magnetic ink character recognition (MICR), which “allowed computers to read special numbers at the bottom of checks that allowed computerized tracking and accounting of check transactions” (Bellis, 1). These highly-touted uses of computing technology brought confidence to the banking industry and its customers, making them more likely to use all of the banks’ services, not just check processing.

Across the industry, the progression toward electronic banking took root quickly. Also, as banking became decentralized, “internal management information systems permitted better control from a distance and enabled banks to grow in size, geographic reach, and scope of activities” (Noam, 1). Greater output was achieved with less effort (greater efficiency), and similar sorting technology branched out into unforeseen markets that previously had no use for computers, such as the postal service, shipping couriers, and mail-order vendors.

While increasing efficiency, business computers also brought together computers and humans, leading to increases in worker morale and greater company satisfaction arising from increased productivity. From the computer’s inception in the marketplace, many white-collar workers feared that “automation would eliminate or deskill jobs” (Cortada, 286). However, the opposite proved to be true; “information-handling equipment improved the quality of work, and, thereby, the value of an office worker’s output” (Cortada, 296). Companies such as IBM showcased the exponential productivity gains that could be achieved through human-computer interaction in the workplace. As electronic computers churned out data, there was greater demand for office workers “who were better paid and capable of handling larger volumes of activity” (Cortada, 287).

Inevitably, as computers became more important in society, people began to study them, and alas, the computer scientist was born! In 1944, when the first automatic general-purpose computer was developed at Harvard University, “the number of persons who could be called ‘computer people or computer scientists’ was probably less than one hundred” (Berkeley, 159). But by 1947, more than 500 people gathered at “Eastern Association for Computing Machinery” meeting in New York. Most of these people were men who had “worked in installations of tabulating machines, industrial engineers, management consultants, and systems specialists” (Berkeley, 160). By 1950, it was discovered that computers had more uses than originally thought. Many companies trained experts in the business field to understand the techniques of computers. Individuals with this multi-disciplinary training were highly sought after and indicators of the importance and profitability placed on skilled computer scientists.
With computers inundating the marketplace, company workers needed to be trained to work with computers, and problems with the machines (both hardware and software) had to be fixed constantly. Salespeople were trained to teach customers how to use the computers, and fix problems if they arose. Thomas Watson Jr., the son of Thomas Watson Sr. (CEO of IBM from 1915-1956), noted, “The need to cover the market with salespeople was more crucial to a vendor’s competitive edge than simply introducing a new device” (Cortada, 274). As a result, IBM spent millions of dollars creating systems of computer professionals to help customers with any problems. These early (yet sophisticated) technical support teams “required well-trained salespeople and sales personnel, education programs, field offices, and an interactive relationship with customers to refine and enhance products constantly” (Cortada, 280). Customer service programs would expand well beyond the computer industry and become characteristic of many U.S. businesses, in both the computer sector and elsewhere.

In five years, the electronic computer changed from a ballistics table calculator into a cornerstone of the American economy and catalyst for social change. Business employees were trained to use computers, and customer service programs were created to troubleshoot computer-related problems that arose. The first true computer scientists were born, and their expertise proved necessary as electronic computers found new uses in business sectors which previously required only human labor. In essence, a complete social infrastructure had been created which supported the rapid advancements of computing technology at every level. As the U.S. economy evolved into a global manufacturer of goods and services, this social infrastructure provided a base onto which major advancements in computing could be easily implemented.

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