prod paradox debates
Overview of perspectives/debates
Erik Brynjolfsson’s 1993 paper on productivity paradox introduces central concept - definition
The productivity paradox arises as a result of a discrepancy between the expectations associated with technological innovation and the outcomes experienced after implementation. We see a parallel between the learning curve of the productivity paradox and the transition from the neoclassical approach to economic modeling to an information economy. We trace the productivity paradox as it manifests first in the corporate world, then in the digital marketplace, and finally as it rears its head in the socio-cultural context. As digital technology becomes accessible in each new context, lessons from the prior context contribute to a diminished learning curve, indicating that people are becoming more sensitive to the potential for unanticipated externalities, which results in the incorporation of this potential into the economic models that set expectations for the outcomes of innovation.
An observed phenomenon in the early age of computing, the productivity paradox is best viewed as a moment of friction in the transition from a manufacturing economy to a knowledge economy.
This transition has seen a growth of knowledge workers whose contributions lend themselves to more perfect information, allowing various sectors of the economy to better and more quickly identify and adjust for negative externalities. Thus, as the information economy grows, friction is reduced, productivity ceases to be the only metric of success, and the learning curve shortens as a result of lessons learned by burgeoning industries from the inefficiencies of earlier organizations.
The sectors where this transition is most evident are the traditional workplace, e-commerce, and society and culture.
Introduce Amazon example as it weaves through the three sectors?
Labor and Management
How does the productivity paradox manifest in the workplace and managerial relationships?
Open plan offices: workers with private offices more satisfied than those in open plan offices
sound privacy: lack of privacy while having phone conversations, casual conversations with co-workers, overhearing conversations you don’t want to hear, etc (http://www.huffingtonpost.com/2013/08/24/open-plan-office-study_n_3810538.html)
health problems: high stress, blood pressure (http://www.huffingtonpost.com/2013/08/24/open-plan-office-study_n_3810538.html)
Collaboration: groups that are too large or disparate may actually waste time coming to a consensus rather than unilateral decisions being taken (Williamson on simple hierarchies)
Email and other digital distractions
social networking sites, online games, instant access to information like Wikipedia, catching up on the news are all just a click away from the working window
What methods exist to increase productivity in the workplace? That is, what advances have been made since the introduction of computing?
alternative office designs
allow for cross-pollination of ideas and work processes
more fun, community oriented workspace
can encourage creativity (as opposed to pure productivity)
collaboration software like Asana, Confluence, basecamp, home-grown software, versioning software allow people to work remotely, collaboratively, effectively without ever stepping one one another’s toes
inbox handlers and other digital tools
apps to triage email, such as Handle, to allow people to worry less about the clerical aspects of their job and focus on the goals they must reach
browser plug-ins that block certain distracting websites for pre-determined lengths of time
What is the future of work and how will it affect productivity? What is still unknown?
telecommuting
works for some, but not for all - tradeoffs (http://siliconangle.com/blog/2013/10/14/telecommuters-vs-office-workers-whos-more-productive/)
“Those who volunteered to work at home reported improved work satisfaction and experience less turnover, but they also felt that the chance of getting a promotion decreased since they were isolated from other employees.“
has been successful at Yahoo
may be simpler in the future through things like teleprescence robots, virtual conferences, collaborative wikis, and non-email communication tools (facebook messenger, gchat, etc that allow instant communication between members of groups to quickly reach a decision)
flatter organizations
with less hierarchy comes fewer deterrents to sharing and challenging ideas
employees feel more empowered to contribute/make a difference
greater transparency and therefore greater trust
decreasing friction in distance collaboration as software becomes faster, more usable, better at documenting changes
emphasis in creative over productivity in the post-industrial economy
look to quality, not quantity
mismeasurement: output is not the only way to measure success, and even if it were, consistency is very difficult to maintain over the years as the economy changes. Why shouldn’t the metrics change with them?
Are E-commerce and the Digital Market Place Productive for Companies? (http://ntl.bts.gov/lib/46000/46800/46882/Barami_ec_trb.pdf)
How is Productivity Measured?
Improving Operational Efficiencies
No store creates no traditional overhead costs of heating, lighting, storefront, etc.
Distribution and shipping is slowed due to a one-item-at-a-time model. (Possibility of automation?) (http://www.inboundlogistics.com/cms/article/maximizing-productivity-in-e-commerce-warehousing-and-distribution-operations/)
Reducing transaction costs. (Specifically in B2B)
Increased labor productivity (Specifically in B2B) (ftp://ftp.zew.de/pub/zew-docs/dp/dp0445.pdf)
Access to greater number of customers.
Open at all times.
Creating a Competitive Advantage
Curation and personalization. A direct relationship with the customer. (http://techcrunch.com/2012/02/05/personalized-ecommerce-is-already-here-you-just-dont-recognize-it/)
Online shopping a less stressful experience for shopper.
The best online price will typically succeed
Online + Instore options. (In-store Pick-up)
What are the outstanding problems and unknowns with digital transactions?
Closely tied to viability of nations transportation network
Is mass delivery more efficient than individuals driving?
Amazon subsidizing USPS to deliver mail on Sundays. (http://www.washingtonpost.com/blogs/the-switch/wp/2013/11/11/amazons-brilliant-plan-to-rescue-the-postal-service-and-disrupt-the-shipping-industry/)
Same functionality in countries without a strong mail network
Payment Security Issues
How does this affect the Marketplace
Intelligence-Laden Content
User-Generated reviews/photos incorporated into online-buying. Company like Olapic. (http://techcrunch.com/2013/10/17/focusing-on-ecommerce-olapic-gives-retailers-access-to-customer-behavior-across-its-platform/)
Network Effect, Swift to rise and fall (http://www.onlineeconomy.org/tag/network-effects)
Subscription Commerce/Replenishment as available through E-commerce. (Example - Dollar Shave Club)
Future/Alternatives
Minimized costs of Returns
Loop Commerce, Online gift ordering that lets the recipient choose size, color, etc. (http://techcrunch.com/2013/11/06/ecommerce-gifting-isnt-a-perfect-system-but-loop-commerces-new-product-could-get-it-closer/)
Instant Gratification
Shutl Startup. Courier Service to deliver within the hour. (http://techcrunch.com/2013/10/22/ebay-acquires-uk-startup-shutl-to-change-the-ecommerce-game-with-one-hour-delivery/)
Change in Payments
BitCoin Usage. Bitcoin as a payment network, No need for merchants to deal with Banks. (http://www.washingtonpost.com/blogs/the-switch/wp/2013/11/08/everything-you-need-to-know-about-the-bitcoin-bubble/)
Socio-cultural context
Definition and measurement
How productivity is measured in the socio-cultural context
productivity paradox boils down to any discrepancy between the outcomes of some change in the status quo and one’s expectations for how that change will affect a particular effort
implementation of ideas, practices, and trends can generate overestimation of progress toward some goal
doesn’t have to be only technological innovation
Atkins Diet example
Define culture as the societal context that influences how meaning is ascribed by an individual
Assumptions about how innovations like social media address Maslow’s hierarchy of needs
Productivity paradox derives from a failure to account for the value associated with non-monetary rewards when setting expectations for innovation. See Defining the productivity paradox and Factors contributing to the productivity paradox
Outstanding problems/issues: other externalities may offset gains from more (and more granular) information
Decision making (example: health/QR)
decisions about basic needs like shelter, water, and nutrition can be considered some of the elements contributing to health
The promise of technological innovation for better health management may be best illustrated by the increasing popularity of the quantified self movement. See Is it really so paradoxical?
assumptions about the power of data mining to address health issues
Factoring in the opportunity costs of pursuing big data could result in a different resource allocation, which might help individuals satisfy needs better. See Is it really so paradoxical?
potential to refrain from medical treatment?
Negative externalities See Next-generation personal genomic studies
health information and trustworthiness
low barriers to entry ensure diverse perspectives
trustworthiness issues
money still affects exposure/algorithms
Safety
The introduction of Internet technology has had significant effects on personal safety in both physical and virtual ways See Next-generation personal genomic studies
connotes a measure of stability to assuage the instinct to be on guard constantly
tradeoffs between innovation benefits and relinquishing control over one’s data
gaining insight into one’s health
convenient participation in the market
interpersonal relationship building
the Internet provides more perfect information
This information is still controlled by power dynamics
Difficult to discern trustworthiness
NSA revelations have drawn attention to the insecurity created by innovation
accelerates the learning curve
Belonging
Social media ostensibly was created to help us connect better by eliminating that which confounds our ability to interact: distance and time. See Social networks and the productivity paradox.
Online dating
signaling is manipulated
social media networks
work vs. life
potential for various identities
potential for unexpected information “seepage†from one domain into another
are we more connected?
mobility creates need for other means of connection
detrimental to loyalty (work and non-work)
increased isolation
Esteem
entails a sense of personal achievement
how continual measurement affects self-esteem
comparisons
measures of success
online personae create the opportunity to cast oneself in good light for selection by others for jobs, dating, etc.
facades
Self-actualization
state of fulfillment in which an individual knows oneself and interacts with the world in a way that is consistent with his or her sense of self
Does technology make it easier for an individual to find fulfillment? See Productivity as art
Implications
Learning curve trajectory is not as steep as with technological innovation in business and e-commerce
NSA revelations
More people
crowdsourcing and diminishing returns as network expands
Reactions to information overload
Integration of the potential for externalities into the economic model
reassessment of the value of information in light of externalities
increases in resistance to Internet ubiquity
Oregon
retro style
Alternatives
Boundaries for personal information
Calls for increased transparency
Social media skepticism
Conclusion
Expectations should take into account the other sources of value in our culture. How do the methods and variables we use to assess productivity affect our expectations for technological innovation? See Defining the productivity paradox
The ability to encounter an unrestricted reality see Productivity as art
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