Please enable JavaScript.
Coggle requires JavaScript to display documents.
Information Technology, Indonesia: How IT can help the manufacturing…
Information Technology is the use of computers to store, retrieve, transmit and manipulate data or information.
-
T is typically used within the context of business operation as opposed to personal entertainment technology.
-
-
Nearly every company needs Information Technology, according to industry experts.
The development methods of education have been made easier through contributions such as the replacement of books in a school library.
Since productivity and efficiency improvements are the key focus of IT, its main purpose is to help people carry out their work and achieve their objectives within an organization.
Some examples of IT are video conferencing equipment such as Zoom and WebEx as well as personal computers.
The IT system chosen by an organization must be fit for purpose within the realization of an organizational capability, since companies use IT to create new products, to enhance customer services or to distance their products from the current market more efficiently.
This has also made the education system more effective and efficient as well as increasing the student’s well-being.
IT can help to reduce world poverty, even in areas where the health infrastructure is extremely low.
-
Information Technology helps with enabling organisations to be more productive, therefore spurring economic growth by helping firms to be more competitive.
-
-
-
- Information Technology and Economic Growth
-
Developing countries are seeking to improve their IT investments and therefore benefit from an increase in economic activity.
New ITs are able to transform the how modern economies operate, but the impacts on productivity and economic growth are harder to find.
For a developing world modern telecommunication infrastructure is absolutely essential for domestic Economic Growth.
Technology such as the internet and personal computers have created a global network of individuals, firms and governments alike.
By investing in IT, it is possible for developing countries to leap past multiple stages of development.
IT offers a distinctive opportunity for developing countries to move past disadvantages allowing trade and economic activities to be conducted efficiently.
Kraemer and Dedrick, economists in the year 1994, found a significant relationship between IT investment and productivity growth with the data from 12 Asia Pacific countries.
In the year 1998, Dewan and Kraemer used a data set from the period of 1980 - 1995 and 1985 - 1993 respectively to show that IT is excellent for efficient Economic Growth.
An evolving and powerful IT infrastructure has changed global relationships and opportunities for Economic or Social Development in all economies.
This came with the downside that the observed growth literature that developed regressed growth in real GDP per capita on its initial.
Many papers have found significant positive co-relations across countries between growth and technology.
These studies have been very influential in the agreement among economists that IT promotes economic growth.
In developed countries, there is already an IT capacity which results in an incursion of Foreign Direct Investment, which is more commonly known as the FDI.
-
-
Economic Growth is the increase in the amount of goods and services produced per person over a period of time.
-
Economic growth helps us cater to larger populations without having to drastically reduce our standard of living. As well as improving our standard of living.
The components of Economic Growth are human capital, physical capital and technology.
Some of the benefits of Economic Growth are the reduction of poverty, the raise in life expectancy and higher average incomes.
A raise in life expectancy is how many years the economy's population lives on average in a period of time and higher average incomes is another way of saying an increase in the GDP per capita.
As previously stated the best ways to improve Economic Growth are by increasing or improving the natural resources and technology.
Other factors of Economic Growth are physical capital and human resources, which are most often equipment to boost worker's productivity.
Countries going through Economic Growth have a higher propensity to trade, since they are producing more goods and offer more services, which helps with international trade.
Economic Growht can also result in high rates of increase in the total factor of productivity, since the efficiency of the workers is increased.
Other characteristics of Economic Growth are high rates of growth per capita as well as high rates rates of structural transformation in the economy.
- Role of IT in Economic Growth
IT encompasses vast amounts of knowledge and tools that ease the use of economic resource as a way to produce goods and services more efficiently and innovatively.
Technological development is critical to economic growth, and the more advanced / developed technology is, the faster a country's economy grows.
-
Technology can contribute to the efficiency of a comapny's output rate, so businesses are able to increase their total output due to ever-improving technology.
-
Better technology has led to furthur research into nearly every sector of business and science, which means that businesses benefit from technological advancements, as previously stated.
-
IT can reduce costs, streamline progress and increase efficiency, which helps businesses participate in international trade.
Economic Growth is the single most important element in the success and growth in international trade, which means that IT indirectly impact the growth in International Trade.
Economic Growth would also allow businesses to share more information easily while conducting less trade, which means that the businesses can use their goods / resources more efficiently.
Technological progress allows for the more efficient production of goods and services in an economy, since technology is the key driver of Economic Growth.
- Improving / Increasing Economic Growth
Information Technology
-
IT can contribute to business profits, since it contributes to a businesses output rate efficiency.
it also allows for larger quantities of products to be produced and moved as well as services to be rendered to others.
-
Productivity Growth
-
An improved skill set can be achieved through better education, which also helps workers do things more productively.
-
An increase in net migration can also impact the economic growth since more people moving into the country can help with getting different skill sets.
New management techniques make it easier for employees to do their work, since new business plans can be applied more effectively with better management techniques.
Rise in Aggregate demand
A rise in aggregate demand can be achieved through lower interest rates, which means people take loans more often, which gives businesses more money.
Lower interest rates and financing costs result in rising wealth, which is a rise in the total real GNI per capita of the entire economy's population.
A higher GDP per capita is a cause of increased real wages, since GNI per capita is the national income of an economy.
With this, higher global growth is achieved.
-