Essay On Negative Effects Of Information Technology

Negative effects of information technology on productivity.

Hitt and Brynjolfesson (1994) found positive effects of information technology based on output and consumer surplus measures. But on the other way Landaver (1995) from the various studies and documents found the trouble with computers. At this stage, the academic research shows that the results are inconsistent on the number of dimensions, including measures of performance, methodologies and data sources.

Researchers found that increase in the performance and productivity does not completely rely upon IT investment. Mahmoud and Mann (2005).

Productivity is the fundamental measure of technology contribution. Even though there were continuous success stories that existed, there were some failures too. The lack of accuracy in the quantitative measures for the output and the value created by information technology has made the MIS manager’s job of evaluating investments particularly difficult. (Kemmerer and Sosa, 1991; Schneider; 1987). Academics also had the problems of accessing this new technology, which in other hand turned to create a negative value.

Some researchers concluded that information technology also had negative impact on productivity. Dedrick et al (2003) “studies have failed to identify the relationship between the information technology investment and the firms profit. The term ‘productivity paradox’ describes the information technology’s inability to produce higher productivity. Solow (1987) felt that the technology revolution slows down the productivity growth.

Stephen roach (1994) was one of the first to use the term productivity paradox. He described the paradox as a situation where America’s service sector holds about 85 % of the country’s information t...

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...mes computer just need to upgrade the software just to keep updated with the industry trends.

Technology has also has negative impact on customers.

Although information technologies did not gave appropriate positive results earlier in 1980’s the new information technologies adopted in 1990’s changed the competitive strategy of the manufacturing firms. Theories have said this before but lack of data cannot prove it. Most researchers investigating the return of IT investments mainly focused on productivity though well they are aware that they are likely to be underestimating the total returns of IT investments. Testing this needed unique data that identifies what IT really means in the production process, data on the productivity gains, and data on the product customization.

References

Smith, J. 2008. Information technology's influence on productivity.