ICT Productivity and the Failure of Australian Management

Prior Related Posts:
Quantifying the Business Benefits of I.T. Operations
The Triple Whammy - the true cost of I.T. Waste
Force Multipliers - Tools as Physical and Cognitive Amplifiers
I.T. in context

Alan Kohler and Robert Gottleibsen have been writing in "Business Spectator" about the relationship between jobs and Economic Productivity.

They note that the USA has improved productivity in the last year while in Australia it has declined (+4% and -3% respectively).  My take on this is: a gross Failure of Australian Management.

There is solid research/evidence that "ICT" is the single largest contributor to both partial and multi-factor Productivity, and is expected to be so for the next 20 years.  This is an big issue.

The Triple Whammy - the true cost of I.T. Waste

Background

There's a report around at the moment that says spending on I.T. is 3-4 times more effective than anything else. [Link to come]

In the first couple of decades of commercial computing, all the "low hanging fruit" - the best returns - for I.T. were exploited. That's when 'the books', financial information and large internal databases (assets, employees, stockholders, vendors, customers, ...) were computerised.

1991 - the first IT recession - marked the end of this era. For the first time, IT staff were laid off in an economic downturn. Previously other staff could be displaced by automating their jobs with I.T.

The 2000 I.T. recession - which we are only just starting to recover from - was industry backlash (and rightfully so) to "Y2K" and the "Dotcom Bust"). The general I.T. justification before then was: "We need this, trust us". After 2000, business needed to be convinced...