Productivity Paradox

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Productivity Paradox

Submitted by: Khanjan Bhadani
Student Number: 0661746
Submitted To: M. Costa
Date: January 12, 2013

The ability to identify the contribution of IT to improving productivity is important.

Information technology is important and necessary component for any company from a small scale to a multi-national company. IT can provide an upper hand to the companies which decide to use the IT as an integral part of business strategy. The primary use of IT was limited to Government and Military, but then Organizations discovered that the computers can be used to automate the accounting functionalities. The use of computers were mostly by the lower level staff of organization, so the cost of running computers as a back office tool resulted in extra cost rather the investment activity. As the evolution of telecommunication and computing, the impact of management IT became more widespread. “As a result, IT staff and managers have to face an increasing need to become more business-savvy.” As the role of computers in business expanded, IT became the integral part of organization. IT is involved in almost every department of an organization like; manufacturing, logistics, decision support, etc. There are many examples in real world of how IT has been able to run the business strategies, such as amazon.com, yahoo.com and many more. The technology has done its job by downsizing, budget cuts, re-engineering, and outsourcing. The productivity is decreased because technologies used now a days in enhancing the productivity hasn’t made the organizations more productive. Interruptions from e-mail, cell phones, instant messaging, text messaging, and blogs eat up nearly 30 percent of each day. In summary, though IT now has become less productive it works as a mediator in every department of an organization. To improve productivity an organization needs to focus on the contribution of the IT in every department.
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