Module 3: L1 Flashcards
What is the productivity paradox?
The idea that the introduction of more IT into a company’s operations can actually decrease the productivity instead of increasing it
Introducing IT into a company is not trivial. What are some of the challenges discussed in the lecture? (5pts) MATS-C
Managerial: roles may change
Analytic: how do we study problems?
Technical
Strategic: does IT make the company more competitive?
Conceptual: which concepts should we use to understand?
Spending on IT has greatly increased since the 70s. In the 80s and 90s there were productivity studies with regard to IT. What were two observations and what are two potential explanations?
Observed:
- No measurable return on investment
- No increases in productivity
Explanations:
- Mismanagement
- Analytical methods and measurement problems
In the 70s to mid-90s there was a ___________ correlation of productivity and IT spending
Negative
There was some worrisome evidence with regard to productivity and IT implementation/spending from 70s - 90s. What are 3x sectors affected? Explain.
- White collar productivity worse than the rest
- Manufacturing doesn’t recover initial investments in IT
- Service sector growth with decline in productivity
What are some methodological arguments for the decrease in productivity w/r to IT implementation? (3x points)
- White collar productivity is hard to measure
- Measurement problems
- Category definitions
We’ve established introducing IT led to a decline in productivity in many cases during 70s-90s. What are some substantive reasons for why this is so? (3pts)
- Learning lags - IT was new
- Redistribution of profits
- Mismanagement (self-interest & miscalc of benefits)
Which is more important to studying productivity and IT investment - quantitative or qualitative changes?
Probably qualitative. Need to address the effectiveness of IT w/r to workers’ being able to more quickly and effectively do their jobs
IT is synonymous with organizational info processing. T/F
False
