Fortune Magazine during 1986 revealed this issue for the 1st time. A research had been done by MIT and its findings were that the effectiveness of the individuals working in IT never went up. However, IT machines’ quantity was constantly expanding for twenty years. Correspondingly, the Return on Investment average between 1985 and 1995 was one per cent only.
Max Polyakov, a director at Noosphere Ventures, in his findings cited what P Strasman came up with. Strasman read about the impact of IT inventions in profiting organizations. He also went through several companies that use the latest technologies and he inferred that all monetary achievement of activities had nothing to do with the Technology usage.
In Singapore, 0.5% of GDP is used on IT. This is something notable and it is the best example for other countries when talking about efficiency. Japan’s productivity rate is high, however; it devotes 1.4% of its GDP to Technology. The US utilize almost 3% and European nations utilize almost 2.5%.
This year, Technology expenditure summed up to one trillion dollars. However, the gains of 13,409 international firms over a similar time summed up to 750 billion dollars.
Again, Max Polyakov discovered that highly computerized organizations might not make profits. They might have high profiting but that has nothing to do with Technology. Max Polyakov again analyzed businesses from several nations, with dissimilar types of work, for instance, health, banking, and trade. His conclusion was that most organizations utilize Information Technology ineffectively thus hindering the financial progress.
Information Technology is necessary in the current world, however, every detail must be considered. The people factor needs to be analyzed first in order to train the qualified individuals well. Bringing more IT will never bring any benefits because as revealed by Max Polyakov, it doesn’t favour the economy. Information Technology is a working tool which becomes useless when used wrongly.