Point of sales for measurement of productivity Essay

Executive Summary

In today ‘s concern universe, the usage of computing machine and engineering is experienced in all parts.

Be it a big graduated table company or any little graduated table retail shop, computing machine has helped these companies to be faster and more efficient in what they do. Competition among concern organisations is responsible for puting big amount of money in engineering for higher productiveness and profitableness. However, Productivity Paradox is a subject that does n’t back up this belief.The first portion of this study focuses on the research and findings of Productive Paradox and the argument between assorted research workers sing this subject. The present position of the productiveness and investing is farther discussed. In 3rd portion, a solution is defined which aid directors to decide the basic job associated with Productive Paradox that of mistake in measuring.

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The solution is the debut of Point of Gross saless in the organisation which will supply informations on input of the resources and explicate the ensuing end product provided by that input. Thereafter, the challenge with utilizing this engineering for work outing the job of measuring is identified. Finally, the study is concluded with an overall position on what can be achieved from this thought and how executable it is for an organisation.

Implementing this system will assist the company step its public presentation and be cognizant of its place in footings of productiveness and optimisation of resources.


Technology has given rise to information system that has brought a revolution in a really short clip moving as a springboard towards an easier and a better manner of life for the world. The industrial sector has experienced roar and execution of such engineering has improved the profitableness and productiveness by springs and bounds.

The impact of Information System is experienced in all parts including concern sectors and it is seen as a blessing that has helped increase productiveness in both fabrication every bit good as service sectors. However, Robert Solow, the Nobel Laureate economic expert has stated “ we see computing machines everyplace except in the productiveness statistics. ” This phenomenon was coined as ‘Productivity Paradox ‘ by Erik Brynjolfsson which shows that investing in IT does n’t needfully supply addition in productiveness. [ 1 ] In an organisation, investing in Information System is monolithic and it is carried out with the belief that it will convey in better productiveness and profitableness. Profitability is a good index but is easy influenced by external factors to the house unlike productiveness which measures the efficiency with which resources are used.

[ 2 ] However, betterment in productiveness is non ever true despite usage of engineering and information system and Productivity Paradox supports that statement. Mismeasurement of end products and inputs, Lags due to larning and accommodation, Redistribution of net incomes and Mismanagement of information and engineering are the four grounds for Productivity Paradox [ 1 ] . The ensuing productiveness ca n’t be fathomed because of its intangible features. The direct consequence of the input that leads to the end product or the productiveness, ca n’t be weighed quantitatively because most of the clip the end product is in the signifier of quality. Time spread is another factor that does n’t assist to supply speedy tally between input and end product as the investing in Information System can be returned merely after a figure of old ages and it takes clip for an organisation to develop and accommodate with the alteration in engineering and information system. When a company invests on Information System, the resulting net income is difficult to disperse from each section and out-of-date determination devising and non optimising the usage of IS by the directors can take to lower productiveness. Currently, big organisations are utilizing assorted information systems such as ERP, SAP, CRM, BPR, etc.

to heighten their efficiency degree and increase productiveness but the cost of such system comes up to $ 21 Million [ 3 ] which may countervail the overall value retained from the end product. Productivity Paradox has shown the vulnerable side of investing in IT and even today assorted concern organisations face the quandary of Productivity Paradox when implementing Information System.


Productivity Paradox is concentrated on proficient reading of rating [ 4 ] . With the belief that IS is proficient systems, merely the proficient systems are evaluated. This consequences to the mismeasurement of human factors and societal environment. If concern organisations fail to take into consideration such of import factor so the paradox of obtaining lower productiveness in relation to investing in IT is likely to go on. Productivity growing comes from working smarter. This means following new engineerings and new techniques for production as stated by Wilcocks, L.

And Lester, S. ( 1999 ) .In future, organisations will hold to put carefully as engineering alteration is inevitable and puting in new system can be hazardous. However, a instance survey in Slovenia [ 5 ] shows that Productivity paradox may non ever keep true. An organisation that decides to put on information system needs to properly gauge the cost associated with the system. The cost may non needfully be in pecuniary footings but input beginnings such as human resources and clip factor.


Productivity Paradox is an issue that has non been closely taken into consideration as concern organisations believe that investing in IT increases productiveness.

However, concern organisations fail to mensurate the equation between input and end product and do n’t take factors such as human resource and right measuring techniques into consideration which is the consequence of Productivity Paradox. An organisation can profit if they are cognizant of productiveness paradox as this will give them an overview of their investing on IT and their return on that investing. Measurement is a premier issue under this subject as the manner of measuring can find assorted consequences depending on what is taken in context.To undertake this basic job of public presentation measuring that leads to major argument for Productivity Paradox, a system needs to be developed in order to supply right input of informations. Doing so, the productiveness can be measured in existent clip which will assist the concern organisation obtain informations immediately and compare with the end product degree to see the growing in productiveness degree. Real clip solution to acquire an instant position of the productiveness will enable directors to place inputs that contribute towards productiveness. This solution can assist them understand if the input, new engineering or human resources, is giving benefit as expected or non. The chief ground behind debut of this method is to give tangibleness to the consequences and do end product generated by information engineering more quantitative than qualitative.

Point of Gross saless is one of the most common existent clip solutions today as it is used in mundane concern, largely for gross revenues and service intent. Point of Gross saless has come a long manner since the early 70 ‘s when IBM introduced IBM 3650 and 3660 [ 6 ] . Today, Web Based POS are really popular due to high velocity cyberspace connexions. For eg, Sainsbury ‘s has nectar card system which provides information on every purchase made by a client which is carried out by the web based POS. The thought of Point of gross revenues is n’t something new as the usage of it is found extensively on retail shops, hotels, eating houses, cordial reception, etc. but it has been implemented on service sectors for gross revenues purpose. Point of gross revenues in fabrication sector would assist the job of mismeasurement in Productivity Paradox by work outing the job of clip spread every bit good. Point of gross revenues in this instance would recover information on all the operations undertaken by the information system and the ensuing end product instantly.

Polonium can be applied by utilizing a staff in the operations to supervise and maintain record of activities undertaken by the Information system whose public presentation is to be measured. So, whenever the system carries out a map, the input is taken into history and the end product it provides instantly recorded. This can be reviewed in intervals to look into the productiveness and how good a system is executing. POS will assist to recover information rapidly and mensurate the public presentation of the system which will enable the director to look at the productiveness degree. Monitoring such activity will assist quantify the consequences and do end product more touchable. If end product is non every bit estimated so errors can be amended and betterments made. So, the whole point of utilizing POS for public presentation measuring is to supervise the input degree and look into end product to do consequences quantifiable. Quantifying end products will give directors a benchmark and come up with solutions to increase the productiveness and taking assorted IT solutions in the hereafter.


The execution of POS engineering in service sector and more so in fabrication sector is likely to be a inexpensive and a better measurement tool of productiveness degree in existent clip for concern organisation. However, usage of another engineering despite low cost could worsen the theory of Productivity Paradox. Directors may be loath to put in another information system. There is a hazard of director ‘s oppugning the productiveness of POS engineering.

Execution of Point of Gross saless will concentrate on measuring mistake and clip slowdowns but non in redistribution and misdirection of information system. Execution of POS means more human resource which can incur farther cost.


Productivity Paradox is an issue that inquiries concern administrations about the return on investing over outgo on IT. The trouble in measuring and intangible end product does n’t give a clear position on how productive any technological input is to the concern organisation. Point of Gross saless engineering will assist a concern organisation maintain path of inputs and step the productiveness degree outright. This engineering will enable a house to see if the IT system they have implemented is worth the money or non. In comparing to technological investing such as SAP which costs Millions of dollars and major IT attempts failed to pay off [ 7 ] , POS would be a inexpensive add-on for an organisation to in order to measure their engineering.


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