Project Cybersyn

Project Cybersyn was a Chilean economic project developed from 1971 to 1973 during the presidency of Salvador Allende (1970–1973), with the purpose of constructing a distributed decision-support system to aid in the management of the national economy. The project consisted of four modules: an economic simulator, custom software to check factory performance, an operations room, and a national network of telex machines that linked to a single mainframe computer. Project Cybersyn, based on a viable system model (VSM) theory approach to organizational design, featured innovative technology at its time. It included a network of telex machines (Cybernet) in state-run enterprises that would transmit and receive information to and from the government in Santiago. Information from the field would feed into statistical-modeling software (Cyberstride) that would monitor production indicators, such as raw-material supplies or high rates of worker absenteeism. It alerted workers in near-real time. If parameters fell significantly outside acceptable ranges, it notified the central government. The information would also be input into economic simulation software (CHECO, for CHilean ECOnomic simulator). The government could use this to forecast the possible outcome of economic decisions. Finally, a sophisticated operations room (Opsroom) would provide a space where managers could see relevant economic data. They would formulate feasible responses to emergencies and transmit advice and directives to enterprises and factories in alarm situations by using the telex network. The principal architect of the system was British operations research scientist Stafford Beer (1926–2002), and the system embodied his notions of management cybernetics in industrial management. One of its main objectives was to devolve decision-making power within industrial enterprises to their workforce to develop self-regulation of factories. Project Cybersyn ended following Allende's removal and death during the coup d'état of 11 September 1973. After the coup, the Chilean military abandoned Cybersyn and destroyed the operations...