<p>The IT and productivity paradox has been the subject of considerable research in recent decades. Many previous studies, based mainly on macroeconomic statistics or on aggregated company data, have reached disparate conclusions. Consequently, the question whether IT investments contribute to productivity growth is still heavily debated. More recent research, however, has indicated that IT contributes positively to economic development but that this contribution is not fully revealed when only productivity is measured.</p><p>To explore the issue of IT and productivity further, the ITOP (Impact of IT On Productivity) research program was launched in 2003. An alternative research approach is developed with the emphasis on the microeconomic level and information flows in processes in specific industry segments. In the empirical study, the development of information flows is tracked over several decades. Effects of digitized information flows are hereby identified and quantified in order to determine their importance in terms of productivity.</p><p>The purpose of this study is to explore effects of information technology by studying digitized information flows in key processes in the logging industry. The research shows that several information flows in the logging process have been digitized leading to new ways to capture, use, spread, process, refine and access information throughout the logging process. A large variety of effects have also been identified from this development.</p><p>The results show that only a minor part of the effects identified have a direct impact on productivity and thus that a large number of significant effects do not. Effects with a major direct impact on productivity include increased efficiency in timber measurement registration, lower costs of timber accounting and increased utilization of harvesters and forest resources. Other significant effects with no direct impact on productivity are related to a more open timber market, increased timber customization, control, decision-making and access to information, as well as skill levels and innovation. The results thus demonstrate that it is questionable whether conventional productivity measures are sufficient for measuring the impact of IT.</p> / ISRN/Report code: LiU-Tek-Lic-2005:40

<p>During the last decades organizations have made large investments in Information Technology (IT). The effects of these investments have been studied in business and academic communities over the years. A large amount of research has been conducted on the relation between the investments in IT and productivity growth. Productivity is a central measure of national and organizational success and is often considered in economic decisionmaking. Researchers have however found it difficult to present a clear-cut answer to the effect of IT investments on productivity growth; an inability defined as the productivity paradox.</p><p>Within the Impact of IT on Productivity (ITOP) research program the relevance of the productivity measure as an indicator of the value of IT is questionned. IT has over the years replaced physical interfaces with digital and in this way enabled new ways to process information. A retrospective research approach is therefore applied where the effects of digitized information flows are studied within specific organizational settings.</p><p>In this thesis the effects of digitized information flows within Swedish grocery distribution are studied. A comprehensive presentation of the development is first conducted and three focal areas are thereafter presented. These describe supply chain information flows including order information, information on new items and analysis of point-of-sales information. The presentation of the focal areas identifies a number of effects from the digitization of information flows. The effects are analyzed according to a predefined analytical framework. The effects are divided into five categories and are thereafter evaluated when it comes to potential for generating value.</p><p>The study shows that the digitization of information flows has generated numerous, multifaceted effects. Automational, informational, transformational, consumer surplus and other effects are observed. They are difficult to evaluate using a single ndicator. Specific indicators that are closely related to the effects can however be defined. The study also concludes that the productivity measure does not capture all positive effects generated by digitized information flows.</p> / ISRN/Report code: LiU-Tek-Lic-2005:39

<p>This thesis examines how IT and the digitization of information have transformed processes of the graphic industry. The aim is to show how critical production processes have changed when information in these processes have been digitized. Furthermore it considers if this has influenced changes in productivity while also identifying other significant benefits that have occurred as a result of the digitization. The debate concerning the productivity paradox is one important starting point for the thesis. Previous research on this phenomenon has mainly used different types of statistical databases as empirical sources. In this thesis though, the graphic industry is instead studied from a mainly qualitative and historical process perspective.</p><p>The empirical study shows that digitization of information flows in the graphic industry began in the 1970s, but the start of the development and use of digitized information happened in the early 1980s. Today almost all types of materials in the industry, for example text and pictures, have developed into a digital form and the information flows are hereby more or less totally digitized. A common demand in the industry is that information produced should be adaptable to the different channels in which it may be presented. The consequences from use of IT and the digitization of information flows are identified in this thesis as different outcomes, effects, and benefits. The outcomes are identified directly from the empirical material, whilst the resulting effects are generated based on theories about IT and business value. The benefits are in turn generated from a summarization of the identified effects.</p><p>Identified effects caused by IT and digitization of information include integration and merging of processes; vanishing professions; reduced number of operators involved; decreased production time; increased production capacity; increased amount and quality of communication; and increased quality in produced originals. One conclusion drawn from the analysis is that investments and use of IT have positively influenced changes in productivity. The conclusion is based on the appearance of different automational effects, which in turn have had a positive influence on factors that may be a part of a productivity index. In addition to productivity other benefits, based on mainly informational effects, are identified. These benefits include increased capacity to handle and produce information, increased integration of customers in the production processes, increased physical quality in produced products, and options for management improvements in the production processes. The conclusions indicate that it is not always the most obvious benefit, such as productivity, that is of greatest significance when IT is implemented in an industry.</p> / ISRN/Report code: LiU-Tek-Lic-2005:38

<p>Denna avhandling undersöker hur investeringar i IT, och digitaliseringen av informationsflöden, har påverkat produktiviteten inom sjukvården. Genom empiriska undersökningar av avgränsade sjukvårdsprocesser – samt diskussioner baserade på idéer och teorier relaterade till ekonomi, ”produktivitetsparadoxen”, så kallade General Purpose Technologies (GPTs), och medicinsk informatik – detekteras och analyseras effekter av digitaliseringen.</p><p>Produktivitetsparadoxen – vilken ställer frågan varför tidigare omfattande investeringar i IT till synes inte har genererat de förväntade produktivitetsökningarna – är en viktig utgångspunkt i föreliggande studie. Forskare har dryftat detta dilemma i många år men</p><p>hittills har inga fullständigt tillfredsställande förklaringar lagts fram. Detta beror till stor del på att tidigare forskning huvudsakligen har inriktat sig på makroekonomisk statistik och aggregerade data, vilket har resulterat i otydliga eller ofullständiga slutsatser angående IT och ekonomisk tillväxt. För att verkligen beskriva effekterna av digitaliseringen är denna forskning istället baserad på undersökningar på mikronivå (organisations- eller avdelningsnivå) ur ett historiskt och kvalitativt perspektiv.</p><p>En annan viktig tanke som genomsyrar denna avhandling är att för snäva definitioner av IT och produktivitet har bidragit till förbiseende av många nyttor till följd av digitalisering. Därför utvidgas termen IT här till att inkludera teknologi för att samla, lagra, bearbeta, återfå och kommunicera data, text, bilder och tal. Dessutom omfattar denna definition både administrativ och inbäddad IT. Vidare ifrågasätts de traditionella definitionerna av produktivitet, och begreppet ges en bredare betydelse för att fånga upp alla möjliga nyttor och/eller nackdelar som kan härledas till IT investeringar.</p><p>Resultaten och analysen som presenteras i denna studie visar att produktiviteten inom sjukvården har ökat enormt tack vare IT-investeringar. Generellt sett så har sjukvårdsprocesserna snabbats upp avsevärt, sjukvårdskvaliteten har förbättrats, och kostnadseffektiviteten har ökat. Med andra ord, genom att introducera nya tankar gällande produktivitetsparadoxen, har fler effekter kunnat detekteras och analyseras. Det finns emellertid också många problem förknippade med implementering, användande och spridning av IT, vilka ges tillbörlig uppmärksamhet i denna undersökning.</p><p>I förlängningen bidrar analysen av digitaliseringseffekterna till en ökad förståelse för hur IT-fieringen” av modern sjukvård påverkar dess produktivitet i form av exempelvis bättre (och även helt nya) behandlingsmetoder, förkortad konvalescens och snabbare patientflöden. Vidare ges förslag på hur implementeringsförfaranden kan skötas smidigare än tidigare, vilka problem relaterade till digitalisering som bör beaktas och lösas, samt vilka möjliga framtida nyttor som skulle kunna realiseras och hur.</p><p>Detta torde vara av intresse för yrkesverksamma inom sjukvården, patienter, politiker som kall besluta om sjukvård, och även samhället i stort. Det övergripande målet med avhandlingen är således att underlätta utvecklingen mot en alltmer digitaliserad – och förhoppningsvis därav förbättrad – sjukvård genom att fördjupa förståelsen för relationen mellan IT och produktivitet.</p> / <p>This thesis examines how investments in IT, and the digitization of information flows, have affected health care productivity. Through empirical investigations of health care processes – along with discussions based on notions derived from theories related to e.g. economics, the Productivity Paradox, General Purpose Technologies, and medical informatics – effects from digitization are detected and analyzed.</p><p>An important point of departure is the so called Productivity Paradox, which raises the question why previous comprehensive investments in IT seemingly have not generated the anticipated productivity growth. Researchers have debated this dilemma for many years now but no sufficient explanations have been put forth. This is so due to a prior focus on snapshot descriptions, founded on macroeconomic statistics and aggregated data, which has resulted in ambiguous conclusions about IT and economic development. Thus, in order to really describe the effects from digitization, the process investigations mainly are carried out at the organization or department level, and from a qualitative and historical perspective.</p><p>Furthermore, in the current research, it is believed that too narrow definitions of IT and productivity have contributed to the overlooking of benefits from digitization. Therefore the term IT is extended to include technology for collecting, storing, processing, retrieving, and communicating data, text, images and speech. Moreover, this definition includes both administrative and embedded IT. Also, the traditional definitions of productivity are questioned, and the concept is given a broader meaning in order to capture all possible benefits and/or disadvantages from IT investments.</p><p>The results and analysis presented in this thesis show that productivity within health care has increased immensely thanks to investments in IT. In general, the treatment processes have been speeded up, health care quality has improved, and the cost effectiveness has been significantly enhanced. In other words, by introducing new thoughts regarding the Productivity Paradox, more effects from digitization are detected and analyzed. However, there are some problems connected to the implementation, adoption and diffusion of IT within health care, and they are also given proper attention throughout the current work.</p> / Report code: LIU-TEK-LIC-2007:37.

Studies have shown that computers have a positive impact on productivity, but the reality remains that the productivity figures have not yet changed. This aforementioned irregularity is referred to as the “productivity paradox”. The question of how productivity is measured is complicated when, for example, a company connects all their computers onto a network or installs an information system to keep record of customer information or even supplier information, for there are no input and output ratios that can be measured. In these cases, productivity is not so evident, and some might argue that it does not exist. Companies always look for the competitive advantage and it is therefore important to show whether investing in information technology does in effect give them a greater return on investment. The question of why it is important for information technology to increase productivity is answered by looking at what all companies seek, which is sustainable growth. This can be measured by the accounting return on investment, economic value added (EVA), and growth in sales or assets. The goal of this study is to determine the impact the information technology productivity paradox has on the heavy metal engineering industries, whether it be good or bad. Information technology has expanded to such an extent that more people are starting to rely on information technology in order to do their work and communicate with one another. This is what makes this study so important, especially from an organisation's perspective, as the organisation is spending more money on expanding its information systems. One of the aspects to be covered in this study is the evolution pertaining to the history of information technology and how it has improved over the years. It also looks at the laws of information technology like Moore's Law which explains that the transistors on a chip would roughly double every two years, and Gilder's Law that explains in total communication a system triples every twelve months. Within this study the knowledge expansion and how human knowledge had to expand in order to keep up with the ever escalating information technology is covered. When looking at the future and the rate at which knowledge increases people tend to assume that the current rate of progress will continue in future periods. This, however, when looking at the rate at which technology progresses, is evident that the progress is not constant. The research topic for this study is the information technology productivity paradox. This term suggests that there is no correlation between a company’s investment in information systems and its business performance measured in terms of productivity. This phenomenon was shown to exist within this study. Open source systems are covered, which is a method of developing software that harnesses the power of distributed peer review and transparency of process. Open source systems have the following advantages like easing of licensing restrictions; cross–platform simplicity; possibility to run modules on any operating system; low cost due to no licensing fees; modification of system is possible; and disadvantages like lack of necessary expertise to do modifications; less user–friendly, support is not always available; security might be a problem. In this way open source systems will affect productivity in information technology due to the less user–friendly interface. Some of these open source systems might take longer to do the task than it would on the commercial software. Implementation of the open source system might take longer than that of a commercial system as there might be a lack of support for the system. Another topic covered within this study is the development of human capital, which is a necessity for employees in an organisation in order to enhance both knowledge and skills within an organisation. This is, however, a double bladed sword as even though the combined knowledge and skills of an organisation are expanded, it takes time which inevitably leads to productivity loss. Finally this study investigates social networking, which is defined as the application of websites that support the maintenance of personal relationships, the discovery of potential relationships and should aim in the conversion of potential ties into weak and strong ties. List of key terms: Information technology, productivity paradox, social networking, competitive advantage, knowledge expansion, development of human capital. / Thesis (M.B.A.)--North-West University, Potchefstroom Campus, 2012.

Studies have shown that computers have a positive impact on productivity, but the reality remains that the productivity figures have not yet changed. This aforementioned irregularity is referred to as the “productivity paradox”. The question of how productivity is measured is complicated when, for example, a company connects all their computers onto a network or installs an information system to keep record of customer information or even supplier information, for there are no input and output ratios that can be measured. In these cases, productivity is not so evident, and some might argue that it does not exist. Companies always look for the competitive advantage and it is therefore important to show whether investing in information technology does in effect give them a greater return on investment. The question of why it is important for information technology to increase productivity is answered by looking at what all companies seek, which is sustainable growth. This can be measured by the accounting return on investment, economic value added (EVA), and growth in sales or assets. The goal of this study is to determine the impact the information technology productivity paradox has on the heavy metal engineering industries, whether it be good or bad. Information technology has expanded to such an extent that more people are starting to rely on information technology in order to do their work and communicate with one another. This is what makes this study so important, especially from an organisation's perspective, as the organisation is spending more money on expanding its information systems. One of the aspects to be covered in this study is the evolution pertaining to the history of information technology and how it has improved over the years. It also looks at the laws of information technology like Moore's Law which explains that the transistors on a chip would roughly double every two years, and Gilder's Law that explains in total communication a system triples every twelve months. Within this study the knowledge expansion and how human knowledge had to expand in order to keep up with the ever escalating information technology is covered. When looking at the future and the rate at which knowledge increases people tend to assume that the current rate of progress will continue in future periods. This, however, when looking at the rate at which technology progresses, is evident that the progress is not constant. The research topic for this study is the information technology productivity paradox. This term suggests that there is no correlation between a company’s investment in information systems and its business performance measured in terms of productivity. This phenomenon was shown to exist within this study. Open source systems are covered, which is a method of developing software that harnesses the power of distributed peer review and transparency of process. Open source systems have the following advantages like easing of licensing restrictions; cross–platform simplicity; possibility to run modules on any operating system; low cost due to no licensing fees; modification of system is possible; and disadvantages like lack of necessary expertise to do modifications; less user–friendly, support is not always available; security might be a problem. In this way open source systems will affect productivity in information technology due to the less user–friendly interface. Some of these open source systems might take longer to do the task than it would on the commercial software. Implementation of the open source system might take longer than that of a commercial system as there might be a lack of support for the system. Another topic covered within this study is the development of human capital, which is a necessity for employees in an organisation in order to enhance both knowledge and skills within an organisation. This is, however, a double bladed sword as even though the combined knowledge and skills of an organisation are expanded, it takes time which inevitably leads to productivity loss. Finally this study investigates social networking, which is defined as the application of websites that support the maintenance of personal relationships, the discovery of potential relationships and should aim in the conversion of potential ties into weak and strong ties. List of key terms: Information technology, productivity paradox, social networking, competitive advantage, knowledge expansion, development of human capital. / Thesis (M.B.A.)--North-West University, Potchefstroom Campus, 2012.

Successful implementation of new technologies is necessary for survival in today's increasingly competitive banking environment. The banking sector is now the UK's largest investor in new technology. As a result of de-regulation and new technological opportunities, the dominant market position of the traditional banks is under threat from new market entrants. Such organisations are harnessing the latest technology to develop their services, and are not constrained by the costs of running national branch networks and integrating a diverse historical legacy of incompatible computer systems. This thesis addresses the question of why the massive investment by UK retail banks in information technology is not being translated into significant productivity gains. The issue is referred to in the literature as the IT productivity paradox. It will be argued that the importance of the banks to the economy as a whole, and the position of the industry as the UK's largest investor in new technology, make it a particularly suitable arena in which to study this phenomenon. Six empirical case studies of recent new technology projects are analysed by the development of grounded theory. The findings indicate that dysfunctional organisational structures and cultures, together with poor management of expertise, combine to sabotage change and constrain the potential of new technology projects. Most significantly, a lack of organisational learning is contributing to the paradox. Even successful projects had limited impact because the lessons learned were not disseminated throughout the organisation. The study concludes that the full potential offered by information technology will continue to elude the banks until their apparently complacent attitude towards organisational change is addressed.

Denna avhandling undersöker hur investeringar i IT, och digitaliseringen av informationsflöden, har påverkat produktiviteten inom sjukvården. Genom empiriska undersökningar av avgränsade sjukvårdsprocesser – samt diskussioner baserade på idéer och teorier relaterade till ekonomi, ”produktivitetsparadoxen”, så kallade General Purpose Technologies (GPTs), och medicinsk informatik – detekteras och analyseras effekter av digitaliseringen. Produktivitetsparadoxen – vilken ställer frågan varför tidigare omfattande investeringar i IT till synes inte har genererat de förväntade produktivitetsökningarna – är en viktig utgångspunkt i föreliggande studie. Forskare har dryftat detta dilemma i många år men hittills har inga fullständigt tillfredsställande förklaringar lagts fram. Detta beror till stor del på att tidigare forskning huvudsakligen har inriktat sig på makroekonomisk statistik och aggregerade data, vilket har resulterat i otydliga eller ofullständiga slutsatser angående IT och ekonomisk tillväxt. För att verkligen beskriva effekterna av digitaliseringen är denna forskning istället baserad på undersökningar på mikronivå (organisations- eller avdelningsnivå) ur ett historiskt och kvalitativt perspektiv. En annan viktig tanke som genomsyrar denna avhandling är att för snäva definitioner av IT och produktivitet har bidragit till förbiseende av många nyttor till följd av digitalisering. Därför utvidgas termen IT här till att inkludera teknologi för att samla, lagra, bearbeta, återfå och kommunicera data, text, bilder och tal. Dessutom omfattar denna definition både administrativ och inbäddad IT. Vidare ifrågasätts de traditionella definitionerna av produktivitet, och begreppet ges en bredare betydelse för att fånga upp alla möjliga nyttor och/eller nackdelar som kan härledas till IT investeringar. Resultaten och analysen som presenteras i denna studie visar att produktiviteten inom sjukvården har ökat enormt tack vare IT-investeringar. Generellt sett så har sjukvårdsprocesserna snabbats upp avsevärt, sjukvårdskvaliteten har förbättrats, och kostnadseffektiviteten har ökat. Med andra ord, genom att introducera nya tankar gällande produktivitetsparadoxen, har fler effekter kunnat detekteras och analyseras. Det finns emellertid också många problem förknippade med implementering, användande och spridning av IT, vilka ges tillbörlig uppmärksamhet i denna undersökning. I förlängningen bidrar analysen av digitaliseringseffekterna till en ökad förståelse för hur IT-fieringen” av modern sjukvård påverkar dess produktivitet i form av exempelvis bättre (och även helt nya) behandlingsmetoder, förkortad konvalescens och snabbare patientflöden. Vidare ges förslag på hur implementeringsförfaranden kan skötas smidigare än tidigare, vilka problem relaterade till digitalisering som bör beaktas och lösas, samt vilka möjliga framtida nyttor som skulle kunna realiseras och hur. Detta torde vara av intresse för yrkesverksamma inom sjukvården, patienter, politiker som kall besluta om sjukvård, och även samhället i stort. Det övergripande målet med avhandlingen är således att underlätta utvecklingen mot en alltmer digitaliserad – och förhoppningsvis därav förbättrad – sjukvård genom att fördjupa förståelsen för relationen mellan IT och produktivitet. / This thesis examines how investments in IT, and the digitization of information flows, have affected health care productivity. Through empirical investigations of health care processes – along with discussions based on notions derived from theories related to e.g. economics, the Productivity Paradox, General Purpose Technologies, and medical informatics – effects from digitization are detected and analyzed. An important point of departure is the so called Productivity Paradox, which raises the question why previous comprehensive investments in IT seemingly have not generated the anticipated productivity growth. Researchers have debated this dilemma for many years now but no sufficient explanations have been put forth. This is so due to a prior focus on snapshot descriptions, founded on macroeconomic statistics and aggregated data, which has resulted in ambiguous conclusions about IT and economic development. Thus, in order to really describe the effects from digitization, the process investigations mainly are carried out at the organization or department level, and from a qualitative and historical perspective. Furthermore, in the current research, it is believed that too narrow definitions of IT and productivity have contributed to the overlooking of benefits from digitization. Therefore the term IT is extended to include technology for collecting, storing, processing, retrieving, and communicating data, text, images and speech. Moreover, this definition includes both administrative and embedded IT. Also, the traditional definitions of productivity are questioned, and the concept is given a broader meaning in order to capture all possible benefits and/or disadvantages from IT investments. The results and analysis presented in this thesis show that productivity within health care has increased immensely thanks to investments in IT. In general, the treatment processes have been speeded up, health care quality has improved, and the cost effectiveness has been significantly enhanced. In other words, by introducing new thoughts regarding the Productivity Paradox, more effects from digitization are detected and analyzed. However, there are some problems connected to the implementation, adoption and diffusion of IT within health care, and they are also given proper attention throughout the current work. / <p>Report code: LIU-TEK-LIC-2007:37.</p>

During the last decades organizations have made large investments in Information Technology (IT). The effects of these investments have been studied in business and academic communities over the years. A large amount of research has been conducted on the relation between the investments in IT and productivity growth. Productivity is a central measure of national and organizational success and is often considered in economic decisionmaking. Researchers have however found it difficult to present a clear-cut answer to the effect of IT investments on productivity growth; an inability defined as the productivity paradox. Within the Impact of IT on Productivity (ITOP) research program the relevance of the productivity measure as an indicator of the value of IT is questionned. IT has over the years replaced physical interfaces with digital and in this way enabled new ways to process information. A retrospective research approach is therefore applied where the effects of digitized information flows are studied within specific organizational settings. In this thesis the effects of digitized information flows within Swedish grocery distribution are studied. A comprehensive presentation of the development is first conducted and three focal areas are thereafter presented. These describe supply chain information flows including order information, information on new items and analysis of point-of-sales information. The presentation of the focal areas identifies a number of effects from the digitization of information flows. The effects are analyzed according to a predefined analytical framework. The effects are divided into five categories and are thereafter evaluated when it comes to potential for generating value. The study shows that the digitization of information flows has generated numerous, multifaceted effects. Automational, informational, transformational, consumer surplus and other effects are observed. They are difficult to evaluate using a single ndicator. Specific indicators that are closely related to the effects can however be defined. The study also concludes that the productivity measure does not capture all positive effects generated by digitized information flows. / <p>ISRN/Report code: LiU-Tek-Lic-2005:39</p>

The IT and productivity paradox has been the subject of considerable research in recent decades. Many previous studies, based mainly on macroeconomic statistics or on aggregated company data, have reached disparate conclusions. Consequently, the question whether IT investments contribute to productivity growth is still heavily debated. More recent research, however, has indicated that IT contributes positively to economic development but that this contribution is not fully revealed when only productivity is measured. To explore the issue of IT and productivity further, the ITOP (Impact of IT On Productivity) research program was launched in 2003. An alternative research approach is developed with the emphasis on the microeconomic level and information flows in processes in specific industry segments. In the empirical study, the development of information flows is tracked over several decades. Effects of digitized information flows are hereby identified and quantified in order to determine their importance in terms of productivity. The purpose of this study is to explore effects of information technology by studying digitized information flows in key processes in the logging industry. The research shows that several information flows in the logging process have been digitized leading to new ways to capture, use, spread, process, refine and access information throughout the logging process. A large variety of effects have also been identified from this development. The results show that only a minor part of the effects identified have a direct impact on productivity and thus that a large number of significant effects do not. Effects with a major direct impact on productivity include increased efficiency in timber measurement registration, lower costs of timber accounting and increased utilization of harvesters and forest resources. Other significant effects with no direct impact on productivity are related to a more open timber market, increased timber customization, control, decision-making and access to information, as well as skill levels and innovation. The results thus demonstrate that it is questionable whether conventional productivity measures are sufficient for measuring the impact of IT. / <p>ISRN/Report code: LiU-Tek-Lic-2005:40</p>