I noticed this article in Monday’s Globe and Mail (Tech Shortfall stalls Canadian productivity) and thought it worthwhile to share. Productivity is really becoming of importance especially in Canada when companies look to compete globally. The company example in article highlights the challenge. Up until now it seems that it has been more of a leap of faith vs. a known outcome that technology dramatically effects productivity.
The article is particularly relevant to IT managers including those holding senior positions: “…A recent study by two top economists, Melvyn Fuss from the University of Toronto and Leonard Waverman, chair of economics at the London Business School, concluded that ICT [investment in communication and information technology] can account for about 60 per cent of the huge and widening labour productivity gap between Canada and the United States.” Waverman goes on to note, “All studies show that ICT is the driver of U.S. productivity growth. Canada lags, and the lag is in increasing in ICT adoption…What these lags mean about production and organizational change are vitally important.” Moreover, the article states, “All the researchers agree, however, simply spending more money on technology won’t do anything for a company’s productivity unless it is accompanied by thorough and effective training, plus strategic use of the technology itself.”
I really liked this article as Heather not only presented the core topic well, she provided a balance view that while technology may not be the core root of the problem it may be part of the solution. Have a look as I’d love to get your opinion.