BUS 237 Chapter Notes - Chapter 3: Bell Canada, Information Technology Management, Profit Margin

5 views4 pages
CH.3 – Productivity, Innovation, and Strategy
Q1: Why should I care about productivity an innovation?
- (labour) productivity = ratio of Canadian GDP/total paid hrs worked by Canadians
 ~$35/hr
 primary indicator of our per capita income
 increasing labour prod. best measure of Canada’s future growth
 except Canada not doing well in increasing labour prod.
- 1950-1975: 4% avg annual labour prod. growth in Canada
- 1975-2000: 1.6% and declining since
- increasing prod. not about working harder/spending more hrs working
 about working SMARTER
 ability of country to innovate & adapt to changing economic conditions
- to enhance, Canada must foster culture of innovation, open industries to more competition & increase amount
of machinery & equip (M&E) in economy
- productivity paradox: how IT adds to productivity, how can create business value
 businesses pour large amounts of $$$ in info tech, but no effect on prod.
- measurement error may be critical reason for observed lack of productivity from IT investments
 IT hard to measure b/c has intangible benefits
- 3 diff ways thru which value of IT can be realized:
1) IT allows company to create more and/or better output from same inputs & create outputs faster
before technology was in place
 eg. investing in IT can allow small accounting firm to add more customers, automate basic tasks
& provide more up-to-date info
2) IT can alter the way corporations compete
 eg. when one accounting firm invests in IT, often rivals will too, compete on software they offer
& technical support they can provide
 eg. video rental industry: IT enabled rent movies @ home, eliminate need to drive to store, indus
changed b/c tech changed structure of competition
3) IT helps make processes more efficient & changes nature of competition
 eg. accounting firm may offer clients more services & lower prices on services after investing in
IT
 consumer, not provider, often reaps benefits of IT
- don’t invest in tech b/c everyone else doing it (“technology for technology’s sake”)
- successful orgs need to understand specifically what business value they are seeking & how IT can help secure
that value
Q2: What is business technology management (BTM), and how is it related to productivity and
innovation?
- ICT indus sector considered to be important indus for productivity & innovation b/c incl tech that can enhance
indiv & org productivity across many industries
 referred to as “invisible” b/c does not produce as many direct outputs
- ICT sector indirectly supports activities in other industries w/ tools that make these other indus more
productive
- jobs that combine business & tech will be in high demand in future
 need students w/ these skills so Bell Canada founded Canadian Coalition for Tomorrow’s ICT Skills
(CCICT) in 2007
- CCICT designed set of learning outcomes for new program
 Business Technology Management
 after learning outcomes defined, unis across Canada dvlping programs for BTM (business & tech
training, financial accounting, IT infrastructure, etc)
- BTM programs designed for students inspired to use technology to change the way the world does business
find more resources at oneclass.com
find more resources at oneclass.com
Unlock document

This preview shows page 1 of the document.
Unlock all 4 pages and 3 million more documents.

Already have an account? Log in

Get access

Grade+
$10 USD/m
Billed $120 USD annually
Homework Help
Class Notes
Textbook Notes
40 Verified Answers
Study Guides
1 Booster Class
Class+
$8 USD/m
Billed $96 USD annually
Homework Help
Class Notes
Textbook Notes
30 Verified Answers
Study Guides
1 Booster Class