Tuesday, November 5, 2013

IT Influences the Economy



When the idea of using information technology was first introduced, companies were skeptical. Companies did not rely too much on information technology for the success of the organization.  In the past, companies only invested a small portion of their budget towards IT. Over the span of 40 years, the budget for information technology has increased. This increase is due to the fact that companies became aware of the significant profits that IT contributed to for the organization.

 
According to the summary article The Economic Impacts of Information Technology, "the most effective companies have reorganized the way they make decisions, interact with customers and suppliers, and innovate to take advantage of the digital revolution, creating trillions of dollars of intangible organizational assets in the process." This means that companies use information technology in all parts of the organization to increase its profits. Due to this increased profits in organizations, IT has contributed to the economic growth of the United States overall.

http://www.cra.org/ccc/files/docs/nitrdsymposium/onepagers/brynjolfsson-summary.pdf
http://www.therefinishingtouch.com/blog/2008_12_01_archive.html


5 comments:

  1. Technology not only enables a company to interact with consumers more effectively, but it also allows them to learn more about their audience to better design products, increase the efficiency of supply chains (globally), and bring markets together by eliminating traditional (geographic) borders. I would argue that Internet Technology has not only positively impacted the United States economy, but has improved the global economic state.

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    1. Those are some excellent points. I would have to agree with your ideas. I would also say that technology has effected how a person views the economy as well.

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  2. I feel as if IT is really helpful and benefits us in many ways. It helps sole problems in the workplace we probably couldn't sole on our own, but the only con is the new technology is replacing our human workers. I understand new technology is innovative and helps us move faster but sometimes I wonder is it worth people loosing jobs?

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    1. I believe the key to that problem would be finding a balance that fits well for the business. The main goal for the majority of businesses is to make a profit and technology helps that process. These companies still need humans though to be part of many business processes including innovation and creative processes. I believe that it is up to the people to harness those abilities,so that they can not be replaced by technology.

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  3. I think that this is a very important subject. Do you think that a main field improving the economics in business through IT is Analytics?

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