mostly used: computingmachinery as input viable• best way: using aggregate monetary value of IT services creates again problem of monetaryfluctuation and thus should use annual IT budget as proxy if data is available 6. ISSUE OF QUALITY• most studies disregard the increase in quality (not only output) when using IT 7. A SIMPLE THEORY • discrepancy between contribution to productivity by IT at firm level and lack of contribution atmacro-economic level is explained by possibility to measure individual firm productivity but dauntingtask to measure gains that are now mature and wide spread 7.1 PHASE 1: ADOPTION OF IT • in this stage, sometimes adopter also developer of IT • technology either supplants existing technologies to produce same products more efficiently orenable adopter to produce new services • adopter may enjoy significant increase in productivity 7.2 PHASE 2: INCREASED PROFIT‘Bleeding edge’: often experienced by new IT adopters; when investment does not yield productivitygains and profits because of difficulties in adjusting to it • special increase in profit whenever IT is proprietary and cannot be easily copied • all firms that use new technology experience increase in productivity in some way (in phase 2)5 PHASES OF IT PRODUCTIVITY
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Zoe ZwiebelmannMaastricht UniversityIM Session 17.3 PHASE 3: NEW IT BECOMES STANDARD • technology matures and becomes ubiquitous (firms cannot survive without it) • discussion about whether IT is important to corporate strategy (initiated by Carr) IT takes time
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