Mostly used computing machinery as input viable best

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mostly used: computing machinery as input viable best way: using aggregate monetary value of IT services creates again problem of monetary fluctuation 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 at macro-economic level is explained by possibility to measure individual firm productivity but daunting task 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 or enable 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 productivity gains 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 Zwiebelmann Maastricht University IM Session 1 7.3 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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