Jiri’s Notepad

For some time I’ve had an ongoing discussion with one of my friend, whose view was that it is availability of new technology that drives economic improvements considering how many incompetent workers are in today’s organisations. We did not get to any conclusion with me disagreeing, but now I have some data to support my argument:

[A] study of manufacturers by consultants McKinsey & Company indicates that additional spending on IT has little impact on productivity unless it’s combined with superior management practices. Greater IT spending produced only a 2% increase in total factor productivity, while superior management techniques produced an 8% gain. Those companies that combined superior management with aggressive IT use saw productivity go up 20% [Nicholas Carr quoting McKinsey Quaterly]