Manufacturing the ERMA banking system: lessons from history

摘要

For part 1, see ibid., vol.15, no.1, pp.44-57 (1993). In the early 1950s, Bank of America and Stanford Research Institute collaborated to produce ERMA (electronic recording machine-accounting). After a successful demonstration in 1955, the Bank of America was besieged by companies interested in manufacturing the computer system. Following an extensive selection process, the bank gambled on General Electric. Together the bank and GE worked to produce 32 ERMA systems in a remarkably short time. The leading-edge system was transistorized and incorporated the newly accepted MICR (magnetic ink character recognition) method for reading checks. The system's impact was felt by the entire banking industry. It is suggested that the ERMA effort clearly demonstrates that a knowledgeable user working with competent technologists can design and implement a system that meets critical needs with state-of-the-art technology.