IT and Productivity

by Paul Harmon

There's a lot of nonsense written about IT and productivity. The bottom line is that IT, as such, doesn't make a company productive. People make a company productive. All you need to do to understand this is to keep in mind how productivity is defined. Productivity is a measure of how much work employees do. Productivity goes up when the same number of employees do more work in the same amount of time for the same amount of money. Most government agencies that gather data on productivity subtract the monies spent on IT. IT purchases reduce productivity.

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IT and Productivity 20 October 2004