Feb 7, 2012

Gottliebsen: productivity problems? Call IT

Australian businesses and US businesses are adopting totally different strategies for the year ahead. Our chief executives are going down a dangerous path, says Robert Gottliebsen of Business Spectator.

Australian businesses and US businesses are adopting totally different strategies for the year ahead. In my view many of our chief executives are going down a dangerous path and shareholders in those enterprises are also endangered because, increasingly, Australian companies are providing services and goods that will need to compete internationally.

The strategy of Australian chief executives in non-mining enterprises is revealed in the latest Dun & Bradstreet National Business Expectations Survey of manufacturing, retail and wholesale firms. In essence, the majority of companies are restricting capital investment, curbing hiring but planning for higher sales and therefore higher profits.

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3 thoughts on “Gottliebsen: productivity problems? Call IT

  1. Scott

    Your facts don’t match with the on-ground realities.

    IT Managed services companies in Australia (IBM, HP, Fujitsu, Accenture and CSC are the top 5 providers) have been growing revenues at around 5-10% for the year 2011/2012. This is set to continue in the next year.

    Australian companies, like the yanks, are investing heavily in IT. It’s just that the IT industry in Australia is dominated by foreign companies so there is virtually no press on this, locally.

  2. cannedheat

    You have to be quite careful when you talk about IT as a driver of productivity. There’s a world of difference between actual solutions implemented in technology and bloated management and compliance areas attempting to get third party providers to deliver the same by remote control.

  3. Zarathrusta

    Cannedheat: you may well have something there. It’s not just a matter of how much IT investment, but is it useful and usable IT investment. My workplace keeps automating things in broken ways, web forms that don’t let you write in the truth or that you can’t cut and paste into.
    Things that used to take minutes on a paper form now take hours on the computer. An easy example of not being able to type in the truth is that our pay system doesn’t work in Hours and Minutes like reality, but in Hours and decimal fractions of hours. That means you can only record certain times of the day correctly this wastes hours in people trying to fix the unfixable.

    To be honest, I’m surprised productivity in Australia isn’t going backwards.

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