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The productivity paradox (also the Solow computer paradox) is the business process analysis observation that, as more investment is made in information technol
by INGELRII 1y ago
The productivity paradox (also the Solow computer paradox) is the business process analysis observation that, as more investment is made in information technology, worker productivity may go down instead of up. This observation has been firmly supported with empirical evidence from the 1970s to the early 1990s.
Before investment in IT became widespread, the expected return on investment in terms of productivity was 3-4%. This average rate developed from the mechanization/automation of the farm and factory sectors. With IT though, the normal return on investment was only 1% from the 1970s to the early 1990s.
https://en.wikipedia.org/wiki/Productivity_paradox https://en.wikipedia.org/wiki/Productivity_paradox
Measurement or Management?: Revisiting the Productivity Paradox of Information Technology.
http://www.diw.de/documents/publikationen/73/38739/v_00_4_9.382949.pdf http://www.diw.de/documents/publikationen/73/38739/v_00_4_9....
Then in the 2000 to 2020s productivity slowdown aka productivity paradox 2.0. https://en.wikipedia.org/wiki/Productivity_paradox#2000_to_2020s_productivity_slowdown https://en.wikipedia.org/wiki/Productivity_paradox#2000_to_2...
- hshdhdhehd 1y agoIs this roughly because any edge the computer gives you it also gives your competitor?
- deafpolygon 1y agothat's one potential cause. just like photography, the commoditization of computers reduces barrier to starting businesses. the moat becomes smaller.