“Beyond the Productivity Paradox”, 1998-08-01 (; similar):
…What We Now Know About Computers and Productivity: Research on computers and productivity is entering a new phase. While the first wave of studies sought to document the relationship between investments in computers and increases in productivity, new research is focusing on how to make more computerization effective. Computerization does not automatically increase productivity, but it is an essential component of a broader system of organizational changes which does increase productivity. As the impact of computers becomes greater and more pervasive, it is increasingly important to consider these organizational changes as an integral part of the computerization process.
This is not the first time that a major general purpose technology like computers required an expensive and time-consuming period of restructuring. Substantial productivity improvement from electric motors did not emerge until almost 40 years after their introduction into factories 7. The first use involved swapping gargantuan motors for large steam engines with no redesign of work processes. The big productivity gains came when engineers realized that the factory layout no longer had to be dictated by the placement of power transmitting shafts and rods. They re-engineered the factory so that machines were distributed throughout the factory, each driven by a separate, small electric motor. This made it possible to arrange the machines in accordance with the logic of work flow instead of in proximity to the central power unit.
It has also taken some time for businesses to realize the transformative potential of information technology to revolutionize work. However, the statistical evidence suggests that revolution is occurring much more quickly this time.
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