Are you worried that productivity has not grown as much as you expected after adopting new technology? That might be for two reasons:-
- The Solow Paradox
- Your strategy, technology &/or technology partners are wrong
The Solow Paradox
McKinsey explains this :-
"Today, with digitization, we are living in round two of the Solow Paradox.
By digitization, we mean the latest digital technology—such as cloud computing, e-commerce, the mobile internet, artificial intelligence, machine learning, and the Internet of Things—that is moving beyond process optimisation to fundamentally transform business models, alter value chains, and blur the borders of industries."
You could just be on the cusp of that productivity growth you were expecting. But best check that your strategy and technology partners are the right ones.
his isn’t just economic arcana. If productivity growth rates do quadruple, it will be because business innovation has caught up with the opportunities created by digitization, and leading companies are pushing the frontier. When the Solow Paradox was unwinding, companies such as AMD, Costco, Dell, Intel, McKesson, Target, Walmart, and a handful of others flour