Defining "IT Productivity Paradox" - How this Effects

Home, - Explain the “IT Productivity Paradox”. Does it really exist?

Question . Explain the "IT Productivity Paradox". Does it really exist?                                                                                                                 

What does it means of IT Productivity Paradox

The processes in the organization have changed dramatically due to IT. The investment on IT has increased the productivity of an organization. The productivity paradox was proposed by Nobel Laureate Robert Solow. Organizations have spent millions of dollars in IT.  Reasons to fail for detecting the productivity gains are as follows:

  • Data as well as analysis issues hide the productivity issues
  • Difficulties for measuring the gains in service industries
  • Productivity gains are offset by losses in other areas
  • Increased Turnaround time between investment and gains
  • Mismanagement - IT investment create organizational slack instead of improving at the bottom line
  • Productivity gains offset by losses or costs that includes software and support maintenance costs, wasted time, problems in software development, incompatibilities in systems as well as work around

PPP stated that, computer age in productivity of the profitability figures cannot be seen. It can be seen in the local implementation of IT as well as in the transaction cost figures. I itself does not increase the productivity.  

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