Chapter Four

This chapter told us that translating the benefits of information technology into productivity measures is very difficult because information technology now is so complex, and the measures could not explain when technology is used in an innovation fashion. However, we might use traditional measures, such as a high percentage of the productivity created to IT is attributed to its production and sales. However, this way can not show the quality of operations in the companies, the timeliness, and innovation and how convenient is in the customer-service. Another surprised thing is that technology makes many of labors work longer than before because there is a poor training for using new technology in the companies, and the quality of the works is very low and the rework showed up. Finally, in the end of the chapter, it provided the survival guide for buyers. In the guide, I like one of the steps is that do not following meaningless spending because in the spending measures, the buyer only know how much companies spend, not how well they use they used the technology. People usually think that when they spent more money, they will get more productivity. That is totally wrong. Any productivity gain is dependent on how will the technology is used. Thus, when companies want to get new systems or technology for their operation, they must know if this investment is valuable. If not, just keep systems functioning are a better and less risky and cost way than get new systems. For example, most of ERP systems are very expensive. Even though, they have very powerful functions for operating in the companies, but some of companies just need some of functions in ERP systems, not all of the functions, to help their business can be operated efficiently. Thus, they do not need to spend such much money implementing the whole ERP systems.