ICS 131--Win 2000--LEC 04--Productivity
1. Review of Lec02--State of Computing
Webcentric View of World
a. Hardware-Software Chain from
enduser devices to service providers
Who are they?
Advantages and disadvantages to each group
Breaking news--How to respond to
pricing errors by goods providers?
2. Productivity in Computing--a bit of history--Pattern?
A. One-on-One--It's 1956,
Feldman using the IBM 650 at Carnegie Tech
Cards in, cards out, no disc, no tape, Software minimal
Nice for users, not best use of machine
B. Operators, operating systems, multi-programming
To increase machine utilization (productivity)
users submitted jobs to an operator who ran the jobs
Later on, primitive operating systems for running job
Then multi-programming--running several jobs at once
Feldman at UCI starting in 1965
Devices, Model 33 TTY, early alphnumeric displays
Flakey operating systems, but better for users
D. Back to one-on-one
Why the PC revolution? System overload, let users in.
Lot's of "waste". Loss of control by organization.
Hook PC's up to servers.
E. The Web
"Ultimate" in providing access to users.
Lots of control possibilities, too.
Sharing SW, Sharing resources
F. Next Step???
3. Productivity in Organizations
Has the substantial investment in computing technology
reduced the cost of providing goods and services?
Anecdotal evidence v overall numbers
The conventional wisdom has been that the substantial
investment in computing technology has NOT reduced
the cost of providing goods and services
A. Why not?
•High cost of computing
•Adoption takes a long time
•Reaping benefits takes a long time
e.g., role of credit cards,
•Shift business from one vendor to another
without improving productivity for industry
•Takes more than computing system to
increase sales and reduce costs
4. Unconventional Wisdom--Productivity is increasing
Sources: BusinessWeek, 29 Nov 99
LA Times, 13 Nov 99
On 12 Nov 99, "the BLS released
an upward revision of the productivity data,
counting software production for the first time as output
and making other upgrades."
in fact the data were revised back to 1970
what looked like slow productivity growth in 70's and early 80's
was apparently a temporary phenomenon
the revised look at productivity shows improvements beginning in
early 80's and current level of productivity improvements is
comparable to that of 60's
Still problems in picking up productivity in some industries.
Some industries still lagging behind.
Impact on economy
How long will productivity boom continue?
Productivity: Who's Gaining -- and Who Isn't
The Stars--Computer and semiconductor industries have been the biggest contributors to measured productivity growth in the 1990's, with gains in excess of 25% annually. .....
The Cost-Cutters--May companies have become much more efficient without fundamentally changing what they make. Industries with more than 4% annual productivity growth in the 1990's include tires, textiles, household appliances, and aircraft.
The Innovators--Widely used innovations such as wireless telephones, internet browsers, improved drug treatments for depression, and automated teller machines may not be correctly counted in the economic statistics for years.
The Unmeasured--In sectors such as health care, education, government, and much of financial services, economists disagree what the proper measure of productivity is, much less how to calculate it.
The Laggards--Many industries have low or even negative productivity gains. For example, productivity in food stores fell at an average rate of 0.9% from 1989 to 1997 (the last year available). Other industries showing less than 2% annual gains in the 1990's include hotels and motels, restaurants, car dealers, auto repair shops, and furniture manufacturers.
Source: Business Week, 29 Nov 99, p 42
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