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D1:   Information Productivity Indicators of U.S. Corporations
    By Paul A. Strassmann
    25 Pages
    Date Published: 05/2000

    Online Price: $9.98


This is the first in a series of publications dealing with the topic of productivity in the area of IT in general and IS in particular.

This one introduces the topic and discusses why it is so badly understood. It then shows how productivity can be assessed and what data can be found, either in the open literature or proprietary databases to help in assessing productivity. Finally, it deals with the types of indicators that can be developed from these data and illustrates some interesting results that have been derived from such analyses.

Table of Contents

The Costs of IM
Information Technology vs. Information Management
IM and the Cost of Goods
It Takes Less Information to Deliver Goods Now
IM per Employee
Information Costs Rising Faster than Wages and Salaries
Effects of IT on the Costs of IM
IM and Revenue
It Takes Less IM to Support Revenue
IM and Profits
Losers Spend More Money on IM
IM Unrelated to Return-on-Shareholder Equity
It Takes Less IM to Deliver Profits
The Influence of Reduced Interest Rates
The Influence of Lowered Commodity Prices
IM and Net Assets
It Takes Less Information to Manage Assets
It Is Less Expensive Now to Own Assets
Public Sector Productivity Indicators

List of Illustrations

Figure 1 - Information Technology Averages 11.5% of IM Costs
Figure 2 - IM Can Be a Multiple of the Cost of Goods
Figure 3 - IM/Cost of Goods Ratio Improved
Figure 4 - In 55% of Corporations IM Costs Exceed Salaries
Figure 5 - IM Costs Show Large Increases
Figure 6 - IM Costs Increased Faster than Compensation
Figure 7 - Computer Spending Assumed to be More Valuable
Figure 8 - IM/Revenue Shows Importance of Overhead
Figure 9 - IM/Revenue Ratio Has Declined
Figure 10 - IM is a Large Multiple of Corporate Profits
Figure 11 - Higher Spending on IM Unrelated to Profitability
Figure 12 - The IM/Profit Ratio Shows a Remarkable Decline
Figure 13 - The IM/Net Asset Ratio Can Be a High Multiple
Figure 14 - The IM/Net Asset Ratio Decreasing Recently
Figure 15 - Net Assets Required to Support Revenues have Increased
Figure 16 - Lower Interest Rates Make Asset Increases Attractive
Figure 17 - Administrators Exceed Teachers in Public Colleges

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