Gartner: The Role of Digital and its Impact on the IT Productivity Paradox
I read with great interest a paper last weekend: The Coming Productivity Boom: Transforming the Physical Economy with Information, Michael Mandel and Bret Swanson. It is now marked up all over the place which explains the level of involvement I had in agreeing and disagreeing with the authors, and the resulting follow-up with additional reading.
The authors suggest an “information gap” exists and that closing this gap would help return productivity to levels not seen for some time that would in-turn drive GDP growth significantly – sufficiently to paper over many of the current economic woes we all observe.
The authors suggest:
- Digital industries, which include what other economists would call IT-producing industries along with publishing, digital content and services (those that deal in information such as insurance and finance) have seen much higher productivity than other physical industries (such as manufacturing, retail, healthcare etc.) over recent years.
- There is plenty of IT spending all around but it is not necessarily being spent in the right things (somewhat analogous to Robert Solow’s famous 1987 quip).
- How IT can change all industries (e.g. through business innovation) is the key, not just ‘spending on computers’.
Read the entire article here, The Role of Digital and its Impact on the IT Productivity Paradox
via the fine folks at Gartner