Impact of Technology Essay

swindleThe instruction applied science practicements see salmagundi magnitude signifi tin squeeze outtly with time and advancement in engine room. In this watch, an attempt is do to sidle up how the tuition engine room influences the composition racyness. The co economic of correlation between the teaching engineering science (IT) and productiveness was very argumentative. Many studies were conducted to aim the encroachment of IT on productiveness conclude contrasting results. It is unthinkable to estimate the productiveness egression due to the availability of so many a nonher(prenominal) advanced calculator technologies, as its hard to consider on the whole parameters tangled while calculating productiveness crop. several(prenominal) searches and studies were documented stating verifying effects of IT on productivity ontogenesis. But still in that respect were few a take a shitst this statement.IntroductionThe advancement in the knowledg e applied science do both(prenominal) put throughrs and argument enterprises to use it. Computers, laptops, wire slight communications etc. atomic number 18 each(prenominal) give away of IT and incorporated in every industry. Enterprises invest in these technologies because it was assumed technologies go forth elevate productivity. Companies aim to generate more than than ancestry and graduate(prenominal) turnovers by means of little investment funds. In a race to gain more efficiency, the enterprises be holding wise technologies. Huge investments are do on crude technologies to digest in industry. The major scrap is to declare extravagantly gauge goods and function at low impairments. Some enterprises dumb the  jimmy and importance of education engineering and apply it to deliver more products in less time and more reliable and convenient go at lower price. This impart to a fault help to gain warlike advant get along over rivals. It was il lustrated in a pick out to generate high productivity crops from entropy engineering enterprises should change the actual infrastructure as well as railway line enterprise practices (Brynjolfsson & adenine Brown, 2005).Many enterprises changed the schemeal structure to exploit the abundant authorisation of randomness technology and its applications. Brynjolfsson and Hitt (1998) linked productivity with living standards to understand it better. They mentioned that value of productivity gouge be easily understood when related to with our living standards. They highlighted the signifi layaboutce of productivity by comparing it with our living standards and mentioned that, productivity growth de full termines our living standards and the wealth of nations. This reflects the clients demeanour to consume more in less money. They as well point out that the thought of productivity is simple and vast except tough to measure with accuracy. Information engineering science and productivenessproductiveness was draw as the amount of end product generated for a reliable amount of input (Brynjolfsson, 2003 Hitt &type A Brynjolfsson, 1995). Productivity shadower overly be delimitate as the measure of the quantity of outputs in goods and services per unit of input (Muriwai, 2006). Productivity can be measured either by safe guardianship the output motionless or input. Productivity can be change magnitude with increase in output keeping input constant or by decreasing the input keeping the output static. The term reading technology was be narrowly as the expenditures made on the computing hardware (Brynjolfsson, 2003 and Hitt & adenylic acid Brynjolfsson, 2005). It was elaborated a little more as. All the computer software and hardware, tools and services use in the transmission line answeres and operations are a part of education technology. The investments in cultivation technology were defined as the expenses on the computer hardware and sof tware and each other devices related with IT (Morrison, 1997).The main purpose of these investments is arresting a impudent(a) infrastructure within the presidential term to boost productivity of both institution and employees (Dehning, Dow, & group Aere Stratopoulus, 2003). It was documented by Mahmood and Mann (2005) that investment in IT was not sufficient decorous to increase productivity. Strategic decisions had to be made whether investment in IT would help to get hold of objectives and goals fate. A harmony must occur between IT investments and changes in trading dish out to make water high productivity growth, plain greater than investment in culture technology. Keller (2004) besides stated that when IT is apply befittingly at workplace that as well helps a lot in productivity growth. fitting investment in nurture technology is not sufficient to gain growth in productivity but face can visualize changes brought by teaching technology (Brynjolf sson & antiophthalmic factor Hitt, 1998 Dedrick, Gurbaxani & antiophthalmic factor Kraemer, 2003).A solid relation between IT investments per employee and boilers suit productivity of company was found by Brynjolfsson (2003). The enterprises gained high productivity growth who invested wide sum in information technology in effect. But pattern of productivity growth across the enterprises varied no discredit the return 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 performance of the organization improves in time period of two or three years after(prenominal) investing in information technology. Dedrick et al. (2003) also cogitated 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 appl y information technology in long run.Its well-heeled to measure productivity when tangible products and goods are produced as in the manufacturing sector. An input revision in the manufacturing exercise can contain 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 order was proposed by Tallon and Kraemer (2006) to measure precisely the wallop of information technology on productivity. A method acting of perceptual measures was recommended by them. perceptual measures would bring mod scope to study impingement of technology on productivity. They described it as perceptual measures, if structured some information technology dazes at the go- aim, can yield richer insights than objective criteria alone.Authors keep back and D isagreeThe 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 for certain increase by utilizing the IT were not forever true. But researches ended up with antithetic deaths, some stated positive impacts of IT on productivity and others prejudicious.Information technology had negative impact on productivity. Mahmood and Mann (2005) mentioned in their study that thither is no adequate shew available in past researches presentation 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 paradox was introduced by Robert Solow in 1987 explaining the inability of the information technology change 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 opinion 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 per annum had increased significantly with use of information technology. It was mentioned by Kudyba (2004) that the output can be upraise d 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 aim of productivity.The three ship canal were discussed by Brynjolfsson (2003), Keller (2004) and Brynjolfsson & Hitt (1998) to recognize productivity growth from IT by decreasing the apostrophize on Information technology and keeping the benefits from business stagnant increase the benefits from business and keeping the investment in Information technology constant or bowdlerize the cost of information technology and benefits increase from business. The information technology is chief(prenominal) and valuable for organization (Melville et al., 2004). They also stated that effective and efficient use of information technology can yield potential benefits, like cost reduction, im proving quality and at in the end productivity. The companies, who used information technology effectively, had also notice an increase in price of their securities industry share more than others. It had been report by Mahmood and Mann (2005) that both IT labour and computer resources chip in towards return on investments.They also mentioned in their report that effective enterprises have developed and improved their infrastructures and investing passing 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 adaption of the business processes is done within organizations, it becomes inevitable 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 near (Brynjolfsson & Hitt, 1998). The operations and business processes within the organization must be evaluated and ensure that be business environment can adapt the new technology, before future information technology investments made (Zhou & Chen, 2003).The certain and estimated outcomes can be realized from IT investments through integration of technologies and current business processes (Kudyba, 2004). It becomes principal(prenominal) 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 describe that the integration of the be technology systems with new technologies within organizations yields the expected productivity growth. They also discussed how the existing techn ologies can be apply in respective(a) business operations, it equally productive as investing in new information technologies. Brynjolfsson and Hitt (1998) found that The superior 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 maximum benefit of information technology.The companies must integrate all daily activities, decentralize decision process, ascend 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 observe d that productivity can be increased by information technology and rent 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 finally investigating its effect on organizational performance. Employees of modern organization may call it take or pull of IT investments.This phenomenon of push or pull in IT investments may animise employees for using new technologies and this may flow to productivity improvements. Kudyba (2004) mentioned that competitive improvement can be gained by hiring skilled and experienced employees. In my view, the employees must be proficient to use new technologies or companies should contract skilled and experienced employees. It also depends how the new technologies are being utilised by the enterprises to enhance their productivity. Only those companies will maximize their productivity that will use the technology perfectly a nd timely. I have also learned during my research that productivity doesnt depend on one factor, there are number of parameters that affect the boilersuit productivity of the organizations. The accurate methods are indispensable for calculating the productivity, to recognize the growth of productivity. quite an than decocting on productivity only, enterprises should develop new strategies to integrate technologies with new opportunities. The barriers to entering can be easily alter by raising the firms efficiency and gaining competitive vantage. Benefit to four-in-handThere is a tremendous challenge forth for all the mangers and decision makers how to consume the information technologies at best and have maximum benefits. Its not supreme 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 good 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 doing, once others digress following your techniques its tough to bring 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 ready to invest more on technologies, when results from previous IT investments are not beneficial enough (Devaraj & Kohli, 2003). A big challenge for the leaders to justify future investments in technologies when there i s 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 expenses 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 singularity in utilizing the information technologies in business operations and processes is the key 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 doesnt have a ny 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 make headway 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 invention 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 global 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. Communications Of The ACM, 41(8), 49 55. Retrived from http//citeseerx.ist.psu.edu/viewdoc/ transfer?doi=10.1.1.195.1657&rep=rep1&type=pdf Dedrick, J., Gurbaxani, V., & Kraemer K.L. (2003). Information engine room and Economic Performance A captious Review of the Empirical Evidence. ACM Computing Surveys ,35(1),1-28.Retrived from headache inauguration Complete. Dehning, B., Dow, K. 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