Information technology: An actual driving force for productivity and profitability of companies?

Citation

Liepert, Philipp Joe. (2018). Information technology: An actual driving force for productivity and profitability of companies. (Independent study, Master of Business Administration). Bangkok: Siam University.

Abstract

Business companies produce goods and services with the intention of making profit. Information Technology (IT) in the corporate environment gives a complete description of technology that can be used to process and distribute critical data to improve the company’s performance. Today, investment in IT is an essential success factor for companies as it can lead to enormously positive effects on the business activity, such as reducing operating costs, optimizing business processes or also improving collaboration of the employees. This study examined the impact of IT on business productivity and profitability today, but also the historical development and the Productivity Paradox of Solow. Companies that neglect or ignore investments in IT are subject to drastic competitive disadvantages and will not be able to persist in the long term. The study evaluates this statement on the basis of existing literature, which refers to the analysis of IT value in business life by using the Documentary Research Method (DRM). In addition, the study gives explicit recommendations for business operators who want to venture into IT investments, as well as prepared information for scientists, who would like to investigate this topic further.

Keywords:  IT, productivity, profitability, Solow computer paradox.

Information Technology. An actual driving force for productivity and profitability of companies 

International Master in Business Administration (IMBA), Siam University, Bangkok, Thailand