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Strategic Information Systems Management Assignment One What general explanations are given for the apparent "productivity paradox," and which do you feel is most relevant to your business experience? Module Leader: Mike Edwards Tutorials: Simon Hickie 1.1 Contents Page 2.1 Executive Summary: 3 2.2 What is the Productivity Paradox? 4 2.3 Where is the Productivity Paradox Found? 4 2.4 Why is Productivity Important 5 2.5 Overview of Productivity in Decline 6 2.6 Review 6 3.1 Is there a Productivity Paradox at all? 7 3.2 Main Explanations for the Paradox 9 3.2.1 Mis-measurement of Inputs and Outputs 9 3.2.2 Lags due to learning and adjustment 12 3.2.3 Distribution of income / Redistribution 13 3.2.4 Mismanagement of Information and Technology 14 3.2.5 Procyclical productivity 16 3.2.6 insufficient use of technologies 17 4.1 Which Explanation to the Paradox in my Opinion is More Justifiable 19 5.1 References 20 6.1 Appendices 24 Figure 1: Productivity paradox of IT is an international phenomenon (1995) 24 Figure 2: Productivity is measured in this context as average annual increase of productivity (output/hour in %) 24 Figure 3: IT-investments are measured by the share of IT investments within overall investment (in%) 25 2.1 Executive...

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