Productivity is very important to any financial system due to its importance when it comes to assessing economic growth and it is recognized as the basis for economic success, an important prerequisite for the development of Nations and also as a crucial pointer of economic competitiveness in all organizations. It must be noted from the outset that this study will use that united states as an example and everything will be analysed in terms of the US
Information Technology(IT) is one of the resources in an organization which helps in boosting financial growth. IT assists organizations to make good use of their input resources. Organizations that invest in IT need to know how their investments are going to pay off, considering that in the modern world, investment in IT is increasingly representing a major part of the capital investment in many organizations. Apart from this, discussions on whether IT does improve on the productivity and effectiveness of an organization has increasingly become a major part of the research arena.
It is the view point of this research that IT is incapable of making any major differences in an organization unless it is used in conjunction with other corresponding investments in an organization such as human investment, and organizational reorganization. IT plays the role of a facilitator when it comes to the restructuring process of an organization which is also known as the Business Process Reengineering. BPR is also an important aspect of improving the effects of IT in the general performance of an organization. Besides, IT and BPR are capable of improving the productivity of an organization tremendously when combined.
Table of Contents
1. Introduction
1.2 Background
1.3 Statement of the problem
1.4 Purpose of the research
1.5 Research Objectives
1.6 Importance of the Research
1.7 Research Questions
1.8 The contributions of this Research
1.9 Disposition of the Dissertation
2. Literature Review
2.1 Definition of productivity
2.2 Organizational Productivity and Information Technology
2.3 The Productivity Paradox
2.4 How IT promotes Productivity in an organization
2.5 IT prospects for growth in the production process
2.6 IT and Labor
2.7 The coordination of IT and how it promotes production/Firm Output
2.8 The Production Function Model
2.9 Reengineering
2.9.1 Business Process
2.9.2 Business Process Reengineering (BPR)
2.9.3 Role of IT in BPR
2.10 IT means for BPR
2.10.1 Enterpirise Resource Planning (ERP) systems
2.10.2 Outsourcing
2.10.3 Enterprise Software
2.10.4 Internet
2.10.5 Intranet
2.10.6 Electronic Data Interchange (EDI)
2.10.7 Knowledge Management (KM)
2.10.8 Legacy Systems
2.11 Summary
3. Research Methodology
3.0 Research Methodology
3.1 Research Process
3.2 Research Design
3.3 Sample Selection
3.4 Classification of Data
3.5 Data collection: Questionnaire
3.6 Reliability
3.7 Pilot Testing of the Questionnaire
3.8 Validity
4. Data Analysis
4.0 Data Analysis
4.1 Telecommunication Companies in the US
4.1.1 Choice of Data and Information
4.2 Phase I Analysis
4.2.1 Sources of Data
4.2.2 Hypotheses
4.2.3 Methodology
4.3 Phase 2 Analysis
4.3.1 Hypotheses
4.3.2 Sources of Data
4.3.3 Methodology
4.3.4 2-Paired T-test
4.3.5 Data Analysis
4.3.6 Cross Analysis
4.3.6.1 Performance Quality
4.3.6.2 Information Technology
5. Conclusion and Future Suggestions
5.0 Conclusion and Future Suggestions
5.1 What is the Relationship between IT and Productivity in the Telecommunication Companies in the US?
5.2 Is there a Significant Distinction between the Current Circumstances and the Desired Circumstances in the Telecommuication Companies in the US with Respect to the BPR approach
5.3 Conclusion
5.4 Implications
5.5 Recommendations for Future Research
Research Objectives and Themes
The primary objective of this research is to analyze the impact of Information Technology (IT) investments on productivity within the telecommunication industry in the United States. Furthermore, the study investigates the role of Business Process Reengineering (BPR) as a complementary strategy to optimize the effectiveness of IT investments on organizational performance.
- Analysis of the relationship between IT investment and organizational productivity.
- Evaluation of productivity measurement models within the telecommunication sector.
- Examination of the Business Process Reengineering (BPR) approach in modern organizations.
- Assessment of the gap between current operational circumstances and desired organizational states.
- Investigation into how complementary assets, such as human capital and process restructuring, enhance IT value.
Excerpt from the Book
1.0 Introduction
In the modern business world, organizations and the people that form them are persuaded to perform better with less resources. Organizations are increasingly being confronted with the idea of lowering prices while improving quality. This has the effect of stimulating competition and in turn improving quality for cutomers. If an organization is not willing to offer satisfactory quality and prices for its customers, there will always be another one willing to do so. For an organization to maintain its competitiveness in the modern world, it has to improve in terms of efficiency, a factor that is very evident when examining the IT budgets of many organizations. According to Fox (2006), over 50% of IT managers have enough budget resources to run effective IT departments, but most of the top executives in those organizations do not understand the value of IT. In such situations therefore, employees are under pressure to do more in a short period of time to maintain the competitiveness of their organizations.
Produtivity can only be understood better when it is taken in the context of today’s standards of living because the standards of living in any country is a manifestation of the capabilities of consumers to spend less while consuming more. Productivity is therefore a way of determining the living standards for a country.
Organizations are increasingly turning to IT to help then in improving their services and goods at lower costs and this should in turn assist the organization in becoming more profitable. According to Brynjolfsson & Brown (2005), IT may be the key to growth in productivity in an organization, but it may require that organizations should change their business practices. Revolutionalizing business practices also enables organizations to take advantage of previous improvements in technology.
Summary of Chapters
Chapter 1: Provides an introduction to the research context, outlining the importance of IT in modern business, the productivity paradox, and the specific research objectives concerning US telecommunication firms.
Chapter 2: Reviews existing literature on productivity definitions, the production function model, and the critical role of Business Process Reengineering (BPR) in facilitating IT benefits.
Chapter 3: Details the research methodology, including the research process, data collection techniques, sample selection of US telecommunication companies, and methods used for ensuring data reliability and validity.
Chapter 4: Presents the analysis of empirical data gathered from telecommunication companies, testing hypotheses related to IT investment impacts and the distinction between current and desired organizational circumstances.
Chapter 5: Concludes the study by answering the research questions, providing managerial implications, and offering recommendations for future research in the field of IT productivity and organizational change.
Keywords
Information Technology, Productivity, Business Process Reengineering, BPR, Telecommunication Industry, Production Function Model, Cobb-Douglas Model, Economic Growth, Organizational Performance, IT Investment, Efficiency, Total Factor Productivity, Customer Satisfaction, Labor Productivity, US Market.
Frequently Asked Questions
What is the core subject of this research?
This research fundamentally explores the impact of Information Technology (IT) investments on organizational productivity, specifically within the US telecommunication sector.
What are the central themes of the work?
The study centers on the correlation between IT investment and performance, the "productivity paradox," the implementation of Business Process Reengineering (BPR), and the necessity of complementary organizational changes.
What is the primary research objective?
The primary goal is to empirically investigate how IT investment affects productivity and to determine how BPR acts as a facilitator for organizational success in the US telecommunication industry.
Which scientific methodology is employed?
The research utilizes both a quantitative econometric approach (Cobb-Douglas production function) for phase one and a survey-based questionnaire analysis (Likert scale) for phase two to assess BPR maturity and performance gaps.
What is covered in the main section of the book?
The main sections cover a literature review of productivity theories, the construction of production models, detailed methodology for data collection, and a two-phase empirical analysis of US telecommunication firms.
Which keywords best characterize the study?
Key terms include Information Technology, Productivity, Business Process Reengineering, US Telecommunication Industry, Cobb-Douglas Model, and Organizational Performance.
How does the research define the "productivity paradox"?
The research describes the productivity paradox as the observation where massive IT investments do not immediately translate into measurable gains in organizational productivity, often due to a lack of corresponding process or human capital improvements.
Why is BPR considered essential for IT success?
BPR is viewed as a vital catalyst because, as the research concludes, IT alone has minimal impact; it requires organizational restructuring, such as process optimization and hierarchy reduction, to fully realize the potential of technological investments.
- Quote paper
- Angela Amor (Author), 2013, Organizational Analysis of the Productivity Impacts of Information Technology, Munich, GRIN Verlag, https://www.grin.com/document/269114
