Paper Example on Technology, Digitization, and Productivity: A Guide

Technological advancement continues to impact the world and are on the rise for decades ago. In the business world, technology has taken a more significant part in digitization and productivity growth. Digitization enables users to convert data into a digital form that is fed to the computer, while productivity growth is simply the increase in outputs to the input amount. Even though technology is significantly essential to any business organization, digitization does not improve productivity growth.

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A business or company must run its activities intending to satisfy the consumer. For instance, for a company to thrive, it ought to implement particular measures that will boost its productivity and subsequently eliminate the negativities. Digitization proves to pose numerous threats as well as provide opportunities in the business market. However, if the risks outweigh the opportunities rendered, then it is mandatory to eliminate the cause.

The incorporation of digitization in a business organization is in itself a cause for distress, but what seems to be more worrying is the lack of knowledge on the possible source of threats that are bound to strike the company. Therefore, the business management must be on high alert to such factors that may lead to the eventual fall of a formerly thriving business. However, the opportunities presented by this form of technology may be luring and, at times, very exciting. But the company should not continue living in oblivion at the expense of the business. Despite the fantastic advantages that the new technology presents, for a business to survive in the storm of competition, it must be very selective in its dealings.

Digitalization contains the aptitude of substantial, productivity-boosting potential; nevertheless, the reimbursements have not yet worked at the scale. For instance, in a recent survey of McKinsey of global establishments, only a small segment of activities, as well as offerings, were designated as digitalized. Under this, the core operations that were digitalized or automated covered a fraction of less than a third, and the products, as well as services that were also digitalized, took a share of less than a third. As a result, this was caused by barriers adaptation as well as lag effects and the cost of the transaction. In the same investigation, corporations with digital transformations proceedings were assumed to have 17% of their bazaar share from main products along with services that were cannibalized by their digital products and services. Currently, several businesses are apportioning substantial time along with resources to the innovation as well as adaptation of their industries.

Recent surveys conducted by the MIT Sloan Management Review and Capgemini Consulting have enlightened the world to a better comprehension of the effects that digital technology brings to business performance. Investment in technology can either be the cause of success or failure for any business. The results provided from this research showed that a large number of companies are in the steady pursuit to gain from digitization through transformational changes. Besides, a discovery was also made that quite an insignificant number of these business organizations benefit from the exploration of the new forms of technology.

Consequently, the opinions obtained from both employees and the management show that there is an urgent need to adopt these technologies to survive in the market and develop mitigation measures to curb the risks from digitization. The eminence of the challenges depicted by digital technology is evidential, thus the need for companies to design potential strategies to be at an advantage despite the many disadvantages. Research conducted by MIT shows that despite the many advantages that come along with the digitization, some companies still find it quite a challenge to achieve a balance in the benefits.

Several business organizations are still struggling to clearly define the type of business benefits they are open to with the adoption of digital technology. Such occurrences are a result of inadequate managerial skills in technological investment and lack of experience to handle such kind of technological transformations. Hence, it is evident that not only such companies strive with digitization, but also those with good leadership are caught up in the turmoil of the invention of new technological systems.

The many challenges that a business is exposed to digital technology can be attributed to numerous factors. For instance, any change associated with digitization has to depict its vision starting from the management. The steps to achieving the best is a gradual one. It all begins with the leaders having a framework on the kind of business they are establishing. However, this is not the case for most companies hence rendering digital technology a setback to productivity growth.

Furthermore, another crucial factor in the process of digitization is that it also depends upon employee attitude for it to establish a strong foundation that would lead to eventual success. It is commonly known that workers are more productive when they are in pressure and should also have positive knowledge. Despite that, technology is bound to bring significant breakthroughs in the business world; there are still older workers in the industry who seem to be technophobic. Responses from some of the participants show that most of the more former employees do not possess the same vigor, excitement, and enthusiasm for the technological transformation in different business segments.

Moreover, a more substantial part of most business organizations is comprised of the elderly who are not open to change and do not wish to learn the benefits that come along with technology. Therefore, such perceptions on digitization render it to be negativity in productivity growth. To sum up, it is evident that if digitization if accepted and fully incorporated into the visionary goals of a business, it is bound to bring numerous benefits. However, responses from several surveys conducted on different companies have shown that digitization has brought negativities which outweigh the positives and, subsequently, adversely affecting the productivity growth of many companies.

The reasons for such can be traced back to the behaviors of both employees and management in the business environment. The relationship that most companies have established with the invention of new business-related technologies could be termed as complicated. For the companies to achieve the best out of digitization, it has to start with the leadership, which must develop a relevant vision to motivate the staff, draft incentives and measurable goals, and create a roadmap to follow then be fully committed. Changes linked to the digitization process ought to be initiated from the top ranks in the company. For any business organization to achieve the best from digital technology, there is a need to create an executive committee that is designated to oversee the efforts put into the new technologies.

Conclusion

Companies ought to take gradual measures when it comes to technological transformations and extensively put investments into relevant forms that are bound to work. Digitization does not bring productivity growth when it is not utilized to the maximum. If a company chooses to embrace and incorporate mitigation measures in digital technology, it is therefore capable of succeeding; otherwise it will fail.