Impact of Technology Essay Example for Free

Impact of Technology EssayAbstractThe randomness engineering science investments have summation signifi notifytly with cartridge holder and advancement in engineering science. In this study, an attempt is light up to highlight how the data engineering science influences the organization productiveness. The correlation between the breeding technology (IT) and productiveness was very(prenominal) argumentative. Many studies were conducted to make out the impact of IT on productiveness conclude different results. It is impossible to estimate the productiveness growth due to the availability of so many advanced computer technologies, as its pugnacious to consider entirely parameters involved while calculating productiveness growth. Several researches and studies were documented stating validatory(p) effect of IT on productiveness growth. further still there were few a assemblest this statement.IntroductionThe advancement in the selective randomness technology ma ke both consumers and business enterprises to use it. Computers, laptops, wireless communications etc. ar all part of IT and incorporated in every industry. Enterprises invest in these technologies because it was assumed technologies will enhance productiveness. Companies hire to generate more than business and high turnovers by less investment. In a race to apply more efficiency, the enterprises are adapting impertinently technologies. Huge investments are made on parvenue technologies to survive in industry. The major challenge is to produce high tonicity goods and function at low monetary set. Some enterprises silent thevalue and importance of information technology and used it to deliver more products in less date and more reliable and convenient services at lower cost. This will as well help to gain war-ridden utility over rivals. It was illustrated in a study to generate high productivity growths from information technology enterprises should change the existe nt infrastructure as well as business practices (Brynjolfsson Brown, 2005).Many enterprises changed the organizational structure to exploit the full potential of information technology and its applications. Brynjolfsson and Hitt (1998) linked productivity with living standards to find out it better. They mentioned that value of productivity can be easily understood when link up with our living standards. They highlighted the significance of productivity by comparing it with our living standards and mentioned that, productivity growth determines our living standards and the wealth of nations. This reflects the customers behavior to consume more in less money. They excessively point out that the concept of productivity is simple and vast barely tough to measure with accuracy. Information Technology and ProductivityProductivity was described as the amount of issue generated for a certain amount of excitant (Brynjolfsson, 2003 Hitt Brynjolfsson, 1995). Productivity can overly be defined as the measure of the quantity of widenings in goods and services per unit of input (Muriwai, 2006). Productivity can be careful either by retentiveness the output static or input. Productivity can be increased with increase in output keeping input constant or by diminish the input keeping the output static. The term information technology was defined narrowly as the expenditures made on the computing hardware (Brynjolfsson, 2003 and Hitt Brynjolfsson, 2005). It was elaborated a little more as. All the computer software and hardware, tools and services used in the business deales and operations are a part of information technology. The investments in information technology were defined as the expenses on the computer hardware and software and all other devices related with IT (Morrison, 1997).The main purpose of these investments is developing a modern infrastructure within the organization to boost productivity of both organization and employees (Dehning, Dow, Str atopoulus, 2003). It was documented by Mahmood and Mann (2005) thatinvestment in IT was not sufficient enough to increase productivity. Strategic conclusions had to be made whether investment in IT would help to accomplish objectives and goals set. A harmony essential occur between IT investments and changes in business process to have high productivity growth, even greater than investment in information technology. Keller (2004) also stated that when IT is utilized appropriately at workplace that also helps a lot in productivity growth. Just investment in information technology is not sufficient to gain growth in productivity but organization can visualize changes brought by information technology (Brynjolfsson Hitt, 1998 Dedrick, Gurbaxani Kraemer, 2003).A significant relation between IT investments per employee and general productivity of company was assemble by Brynjolfsson (2003). The enterprises gained high productivity growth who invested huge sum in information techn ology effectively. But pattern of productivity growth across the enterprises varied no doubt the redress from IT investment were positive (Brynjolfsson Hitt, 1998). It takes time to realize productivity gains from investments in information technology. It was supported by Mahmood and Mann (1988) that productivity growth and carrying into action of the organization improves in time period of two or three years after investing in information technology. Dedrick et al. (2003) also believed that productivity gains are realized after a long time period. It was highlighted in their research that information technology payoffs are high when firms effectively apply information technology in long run.Its easy to measure productivity when tangible products and goods are produced as in the manufacturing sector. An input alteration in the manufacturing process can bring substantial changes in productivity. For instance, the use of automation technology and robotics produce outputs of good quality (Kao Liu, 2005). On the contrary, its tough to measure and improve productivity in service sector. Its next to impossible to evaluate the productivity of an employee. A method was proposed by Tallon and Kraemer (2006) to measure precisely the impact of information technology on productivity. A method of perceptual measures was recommend by them. Perceptual measures would bring new scope to study impact of technology on productivity. They described it as perceptual measures, if structured around information technology impacts at the process-level, can fall richer insights than objective criteria alone.Authors Agree and DisagreeThe research was done by many to study the impact of IT on productivity (Brynjolfsson Brown, 2005 Brynjolfsson Hitt, 1998 Melville, Kraemer Gurbaxani, 2004 and Kudyba, 2004). The expectation that productivity will certainly increase by utilizing the IT were not always true. But researches ended up with different conclusions, some stated positive im pacts of IT on productivity and others damaging.Information technology had negative impact on productivity. Mahmood and Mann (2005) mentioned in their study that there is no adequate evidence available in past researches showing the positive effects of IT on productivity. It was also supported by Dedrick et al. (2003) stating, Studies have failed to identify a relationship between information technology investment and firm profitability. The term productivity conundrum was introduced by Robert Solow in 1987 explaining the inability of the information technology contributing towards firm productivity (Solow. 1987). He made a statement that growth in productivity was not accompanied by the information technology. He also discussed that the companies didnt had expected results in productivity after investing in Information technology. He quoted, You can see the computer age everywhere but in the productivity statistics. In my discernment and during my research I realized that impact of IT on productivity had mixed reviews from different authors, researchers and economists.Researchers used new approach to reveal the hidden positive effects of IT on productivity. Brynjolfsson and Hitt (1998) illustrated that Information technology has a positive and significant impact on firm output, contradicting the claims of a productivity paradox (p52). This was also supported by Brynjolfsson (2003) and Dedrick et al. (2003) that productivity including the output per worker annually had increased significantly with use of information technology. It was mentioned by Kudyba (2004) that the output can be upraised with increased information technology skills. The new information technology and techniques effectively when used by the companies, those companies are productive than who dont use it (Brynjolfsson Brown, 2005). When the technologies and techniques were used perfectly and timely, yield high level of productivity.The three ways werediscussed by Brynjolfsson (2003), Kel ler (2004) and Brynjolfsson Hitt (1998) to recognize productivity growth from IT by decreasing the cost on Information technology and keeping the benefits from business stagnant increase the benefits from business and keeping the investment in Information technology constant or reduce the cost of information technology and benefits increase from business. The information technology is important and valuable for organization (Melville et al., 2004). They also stated that effective and high-octane use of information technology can yield potential benefits, like cost reduction, improving quality and at last productivity. The companies, who used information technology effectively, had also observed an increase in price of their merchandise share more than others. It had been reported by Mahmood and Mann (2005) that both IT labour and computer resources contribute towards return on investments.They also mentioned in their report that effective enterprises have developed and improved t heir infrastructures and investing extremely in information technology. Information technology is a medium through which the information can be distributed easily within organizations. The highly advanced IT infrastructures create an atmosphere within organization that encourages decentralized process of decision making (Brynjolfsson Brown, 2005). When modification of the business processes is done within organizations, it becomes necessary to integrate information technologies. The productivity can be enhanced by integrating information technology investments with decentralize process of decision making (Melville et al., 2004). The integration of information technology investments and other investments within business also proves to be salutary (Brynjolfsson Hitt, 1998). The operations and business processes within the organization must be evaluated and ensure that existing business environs can adapt the new technology, before future information technology investments made (Z hou Chen, 2003).The predictable and estimated outcomes can be realized from IT investments through integration of technologies and current business processes (Kudyba, 2004). It becomes important to restructure the business processes with the changing business environments when new information systems are set up (Zhou Chen, 2003). McNamara and Watson (2005) also reported that the integration of the existing technology systems with new technologies within organizations yields the expected productivity growth.They also discussed how the existing technologies can be active in various business operations, it equally productive as investing in new information technologies. Brynjolfsson and Hitt (1998) found that The greatest benefits of computers appear to be realized when computer investment is coupled with other complementary color investments new strategies, new business processes and new organizations all appear to be important in realizing the supreme benefit of information tec hnology.The companies must integrate all daily activities, decentralize decision process, fertilise of information from high to low level, this will enhance productivity growth and all these attributes directly or indirectly contribute to information technology (Brynjolfsson, 2003). The organizations use various methods and measures like product quality, profitability, and value of market shares to measure productivity (Dedrick et al., 2003). There is a possibility that productivity can also be gained through effective management. It was observed that productivity can be increased by information technology and make worth for consumers (Hitt Brynjolfsson, 1995). Devaraj and Kohli (2003) proposed a method which requires elevation of the IT usage at the employees level individually and then lastly investigating its effect on organizational performance. Employees of modern organization whitethorn call it push or pull of IT investments.This phenomenon of push or pull in IT investments may inspire employees for using new technologies and this may lead to productivity improvements. Kudyba (2004) mentioned that competitive advantage can be gained by hiring skilled and experienced employees. In my view, the employees must be trained to use new technologies or companies should hire skilled and experienced employees. It also depends how the new technologies are being utilized by the enterprises to enhance their productivity. Only those companies will maximize their productivity that will use the technology perfectly and timely. I have also learned during my research that productivity doesnt depend on one factor, there are number of parameters that affect the overall productivity of the organizations. The accurate methods are required for calculating the productivity, to recognize the growth of productivity. Rather than focusing on productivity only, enterprises should develop new strategies to integrate technologies with new opportunities. The barriers to entry can be easily terminated by raising the firms efficiency and gaining competitive advantage. Benefit to ManagerThere is a long challenge ahead for all the mangers and decision makers how to consume the information technologies at best and have maximal benefits. Its not compulsory that the companies will have same levels of productivity if provided with same information technology, it depends how the technology is utilized to have high growth in productivity (Brynjolfsson, 2003). To maintain competitive advantage in the industry, the managers had to find new ways in which they can exploit the full potential of technologies differently from their rivals. Melville et al. (2004) mentioned the competitive advantage gained through human resource and technical synergies cannot be maintained for long. A strategy or mechanism had to develop to gain competitive edge for long periods and which is not easy to imitate. The competitive advantage can be maintained until others dont follow what you are d oing, once others start pursuance your techniques its tough to sustain competitive advantage (Brynjolfsson, 2003).I believe that managers should examine future values of all IT investments when productivity results were not up to the level of expectations. The organizational leaders are not develop to invest more on technologies, when results from previous IT investments are not beneficial enough (Devaraj Kohli, 2003). A bounteous challenge for the leaders to justify future investments in technologies when there is no significant evidence of productivity improvement from previously investments in information technologies (Dehning, Dow, Stratopoulus, 2003). Managers should focus on other aspects of business process also rather than on productivity alone.Hitt and Brynjolfsson (1995) discussed that managers should concentrate more on how information technology can be used to improve product quality and customer service. Information technology has the potential to reduce the expens es on such services and change the mode of production and delivery of the goods and services so cant be easily imitated by competitors (Hitt Brynjolfsson, 1995). The uniqueness in utilizing the information technologies in business operations and processes is the primeval to stay ahead of the competitors in the market. This not only provides competitive advantage but also increases the overall growth in productivity. ConclusionThe conclusion can be drawn that investing in information technology doesnthave any positive impact on productivity growth until utilized properly and effectively. The impact of investing in technologies can be realized how organizations utilize technologies effectively depending on the current situations of organizations and derive expected productivity results. The invention of telecommunication, computer software and hardware had totally changed operations within the organizations. The use of these forms of technology was extensively popular and in-demand among the various industrial sectors. The enterprises had changed their existing infrastructures to adapt these new technologies. The meaning both consumption and productivity have changed with innovation of information technology. Organizations across the globe are implementing new technologies to enhance the daily business activities with the purpose to survive and compete in this new spherical world of information technology.ReferencesBrynjolfsson, E. (2003). ROI valuation The IT productivity gap. (21). Retrieved from http//ebusiness.mit.edu/erik/Optimize/pr_roi.html. Brynjolfsson, E., Brown, P. (2005). VII pillars of IT productivity. Optimize Manhasset.4(5), 26-35.Retrived from http//www.georgeschussel.com/wpcontent/uploads/articles/NY6420050502_erik.pdf. Brynjolfsson, E., Hitt, L. M. (1998). Beyond the productivity paradox. communication theory Of The ACM, 41(8), 49 55. Retrived from http//citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.195.1657rep=rep1type=pdf Dedrick, J., Gurbaxani, V., Kraemer K.L. (2003). Information Technology and Economic Performance A Critical reexamination of the Empirical Evidence. ACM Computing Surveys ,35(1),1-28.Retrived from line Source Complete. Dehning, B., Dow, K. E., Stratopoulos, T. C. 2003. The info-tech Productivity Paradoxdissected and tested. Management Accounting Quarterly,5(1),31-39. Retrieved from line of credit Source Complete. Devaraj, S., Kohli, R.(2003). Performance impacts of information technology Is actual usage the missing link?. Management Science, 49(3),273-289. Retrieved from Business Source Complete. Hitt, L. Brynjolfsson, E. (1995). Productivity, profit and consumer welfare Three different measures of information technologys value. MIS Quarterly, 20(2), 121 -143. Keller, E. (2004). What Is Your IT Productivity. MSI 22(2), 33 34. Kudyba, S. (2004). The productivity pay-off from effective allocation of IT and non- IT labour.