Chapter 9 –The Impact of IT on Productivity

and Quality of Life

IT Investment and Productivity

Productivity is defined as the amount of output generated per unit of input and may be
quantified in a variety of ways. For example, at a factory, productivity may be measured by
the number of work hours required to make one item, but in a service sector firm, productivity
may be measured by the yearly revenue generated by an employee divided by the
individual's annual wage. Most countries have been able to create more products and
services throughout time, not by increasing input proportionally, but by improving production
efficiency. Because the average hour of labor generated more products and services,
productivity advances have resulted in rises in the GDP-based standard of living.

IT has played an essential role in allowing innovation, which is a crucial driver in increasing
productivity. IT, as well as other new technology and capital expenditure, is used by
progressive management teams to execute improvements in goods, processes, and
services.

Productivity gains were simple to quantify in the early days of information technology, in the
1960s. Midsized businesses, for example, sometimes employed a dozen or more
accountants devoted completely to payroll accounting. When firms deployed automated
payroll systems, they required fewer accounting personnel. The benefits of such IT
expenditures in terms of

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productivity were evident.

Organizations are currently attempting to upgrade IT systems and business processes that
have already undergone numerous rounds of improvement. Organizations are also
introducing new IT capabilities to assist workers who already have a variety of personal
productivity programs on their desktop computers, laptops, and cellphones. Instead of
removing people, IT advancements save workers tiny amounts of time each day.

The Digital Divide

The digital divide refers to the gap between people who have and do not have access to
contemporary information and communications technologies, such as cell phones,
smartphones, personal computers, and the Internet. There are around 2.4 billion Internet
users globally, however the distribution of Internet users varies substantially by area.

The digital divide extends between nations and even within countries, separating individuals
of different ages, socioeconomic backgrounds, and those who reside in cities vs those who
live in rural regions.

High-low Internet penetration by country within region

Country with Country with

highest % of lowest % of
Region
Internet population Internet population
penetration penetration
Africa Morocco 51% Ethiopia 1%
Falkland
Americas 96% Belize 23%
Islands
Asia South Korea 82% Myanmar 1%
Europe Monaco 100% Kosovo 20%
Middle East Qatar 86% Iraq 7%
Papua New
Oceania/Australia Australia 89% 2%
Guinea

Source Line: Internet World Stats, www.internetworldstats.com/stats.htm.

For a variety of reasons, many individuals think that the digital divide must be addressed.
Clearly, if a person in distress had simple access to a communications network, health,
crime, and other issues might be dealt with more swiftly. Access to information and
communication technology may also improve learning and give a plethora of educational and
economic opportunities, as well as alter cultural, social, and political conditions. The
Internet is

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progressively providing individuals with the information they need to manage their careers,
retirement, health, and safety.

How Philippines catch up?

The Philippines Digital Economy Report 2020 of the National Economic Development
Authority and the World Bank highlighted that the Philippines still experiences “a very
significant digital divide”, with more than half of the homes in the country without Internet
connectivity and fixed and mobile Internet penetration in the Philippines being relatively low
in comparison to its Southeast Asian neighbors. This disparity is thought to contribute to
uneven access to Internet-delivered services.

The digital divide in the Philippines might be linked to a lack of telecommunications

infrastructure. It is an issue that has persisted owing to a combination of factors, one of
which is the government's inability to invest in digital infrastructure. Bureaucracy involved in
obtaining permissions from local governments by private enterprises have also added to this
issue.

As a solution, the Department of Information and Communications Technology is

spearheading the development of a National Broadband Network, the first draft of which
revealed that the government will prioritize the development of Internet access in rural areas,
particularly in areas where web access is scarce or very limited.

Under the first draft of the National Broadband Plan, key cities and provinces—particularly
the rural areas where commercial telecommunications services are absent—will have
Internet access by 2022.

These areas are based on the National Economic and Development Authority’s (Neda)
National Spatial Strategy for 2017 to 2022 and the National Telecommunications
Commission’s (NTC) Fixed and Wireless Broadband Data Survey.

Government Initiatives and Programs to enhance the ICT Literacy of the Citizens

The government recently directed the Department of Information and Communications

Technology (DICT )'s Literacy and Competency Development Bureau (ILCDB),
Cybersecurity Bureau, and Regional Offices to develop and implement webinars aimed at
capacitating and upskilling the ICT competencies of teachers, administrators, educators, and
students in various public and private educational institutions, as well as state universities
and colleges (SUCs).

Major programs and projects of DICT that aims to improve ICT literacy.

e-Filipino
As part of the United Nations' Millenium Development Goal of delivering ICT access
to everyone, the DOST-ICTO uses ICT to foster community growth and development
in the Philippines through building Community eCenters (CeCs). These centers cater

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to the ICT demands of many individuals by providing alternative learning and skill
training

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 to each community. It also intends to equip the special needs sector for impact
sourcing and ITpreneurship by providing job opportunities.

National Connectivity
Globally, connectivity is acknowledged as a growth driver. According to a World Bank
research, every 10% increase in broadband penetration resulted in a 1.27 percent
boost in a developing country's GDP (GDP). However, many sections of the nation
and many Filipinos remain disconnected in some form. This issue is addressed in
the
software.

e-Government Harmonization
e-Government (eGov) is critical to the success of the MDP and the President's Social
Contract. The Philippines is now ranked 95th in the world in terms of eGovernment.
This initiative intends to raise our ranking to 50 or higher by tackling critical
challenges such as interoperability and efficiency through legislative innovations
as well as
strategic infrastructure improvements.

e-Civil Servants
The ICT Office is responsible for administering and managing ICT Competency-
based Training Programs in partnership with public and private training institutions,
as well as Subject Matter Experts (SME's). The courses are divided into three
categories: e- Government Management, Application Development, and Technology
Solutions. This
initiative also intends to improve the digital capabilities of government personnel.

ICT Enabled Startup

This is a new program that encourages the spirit of entrepreneurship and leverages
the use of ICT to effect change and give answers to challenges in many sectors and
society at large by assisting in the formation of technology companies.

The ICT Office aspires to be the government's leader in strengthening the local
technology startup community toward a common goal: to be globally recognized as
an active startup hub in Asia and the world, and to effectively mobilize its key
resources
and players to create and nurture both domestic and foreign startups.

LEARNING CONTENTS (The Impact of IT on Different Aspects of Human Life)

Healthcare Information Technology (HIT)

The healthcare industry has seen a considerable transition as a result of information

technology. Information technology is rapidly revolutionizing the healthcare business, from
electronically checking in patients and updating their medical records to digitally transmitting
blood test results to patients.

While information technology refers to the use of computers, telecommunications, and other
systems to store, retrieve, and distribute data, healthcare information technology refers to the
secure use of technology to handle health-related data.
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E-prescriptions, electronic health records (EHRs), and other tech tools that assist people
reach health objectives such as monitoring blood sugar levels or quitting smoking are the
most prevalent examples of healthcare information technology. Information technology has
opened the road for more accurate EHRs/EMRs, allowing patients to get rapid and simple
access to a variety of healthcare facilities. Furthermore, through numerous mobile apps and
information
platforms, it has given patients more control over their health.

Healthcare information technology is significant because it:

▪ Helps in delivering more accurate, actionable, and accessible information
related to a patient’s health that can be customized to meet the individual’s
needs.
▪ Allows better and faster decisions related to health risks that affect an
individual as well as the public.
▪ Supports communication between patients and healthcare professionals and
helps in decision-making.
▪ Helps build networks of social support for both patients as well as healthcare
professionals.
▪ Improves awareness among patients as well as the general public about
health-related matters that can lead to positive outcomes.

Impacts of ICT on Mobility

The potential implications of ICT on mobility include a change (changing origin, destination,
method, or route), a substitution (from a physical flow to an information flow), or the creation
of a movement. Such a result is dependent on the social and geographical environment in
which migration occurs. The following summarizes the projected effects of ICT on the
transportation sector.

Transport substitution
The rapid proliferation of ICT, such as mobile phones, intranets, and teleconferencing,
promotes new forms of mobility and the possibility to substitute mobility. One of the
projected key benefits of ICT is reduced vehicle usage, since it is envisaged that
replacement would occur or that vehicle assets will be used more efficiently. However,
substitution remains a minor factor in people's physical mobility. ICT has enabled new
types of non-physical interactions. The most significant substitution effect has been on
postal services, where online communication and tele-consumption have been linked to
a significant decrease in physical letter quantities and accompanying transportation
operations.

While there were around 268 billion postal pieces sent in the United States in 1990, this
amount has now plummeted to 146 billion. Another important form of transport
substitution concerns e-commerce where for an online transaction, in-store purchases
have been substituted by home deliveries.

Navigation and tracking

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While navigation devices have been available for some time, the combination of global
positioning systems, wireless communication technologies enabling internet access, and
mobile computing devices permitted sophisticated kinds of dynamic navigation and
tracking. Navigation aid and real-time traffic information give accurate travel time
estimates and the option of alternate routes in the event of disruptive incidents. It is
estimated that one billion drivers use navigation applications globally. Overall, this has
resulted in significant time and fuel savings for road users, both for passengers and
freight transport. Assisted navigation also introduces new issues, such as distributing
vehicles on local streets, which can worsen local congestion, and coping with
disturbances like school opening hours.

Vehicles and consignments may now be tracked, allowing them to better forecast arrival
and delivery dates and save fuel use. It is now feasible to monitor the status of
temperature-sensitive commodities throughout transportation. Tracking, as an inventory
management approach, also enables more flexible transportation utilization because a
consignment may be varied or re-routed if demand changes. Industry standards such as
Track and Trace (T&T) are being implemented for containers. It specifies the
procedures, data, and interface standards that enable stakeholders like as carriers,
shippers, and third-party logistics service providers to communicate with and track
containers and their shipments across several modes.

A prospective development concerns self-driving vehicles, that will only be economically

feasible if they are given a significant quantity of real-time information about the
environment they travel in via on-board sensors as well as information feeds
supplemented by ICT. The widespread adoption of self-driving vehicles would have a
significant impact on the transportation system, reducing the number of vehicles
required to meet current demand, improving mobility for those with physical or financial
limitations, lowering the risk of accidents, and improving the time and cost performance
of passenger and freight flows alike.

Mobility as service markets

Many transportation markets could previously only be booked through intermediaries
such as travel brokers or freight forwarders. With the advancement of the internet,
customers may now book transportation services such as air, rail, and bus travel
directly, a concept known as mobility as a service. These improvements have been
significant for the airline business, increasing competition and the ease of air travel with
the ability to check-in online and even carry a virtual boarding pass on a mobile device.
A comparable trend has occurred with rail services, notably high-speed rail, but it is also
making inroads into the mass transportation industry, including bike rental services. An
indirect advantage is a reduction in the usage of resources and energy for the issuance
of travel documents such as passports.

Transport asset management

Ride-sharing and other ICT-enabled transportation services result in improved
management of cars, routes, and assets (higher load factor, more trips per vehicle,
fewer
vehicles for the same capacity, etc.). This is especially true in freight distribution, where

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 the use of logistics enables improved inventory management and more dependable
delivery. ICT has a wide range of applications in transportation asset management. The
first is about appointment systems for terminals (ports and rail yards) and distribution
hubs. Users can book an access time slot to the facility via an online portal, which
should increase the efficiency of both the terminal and the vehicle assets.

Without considerable ICT assistance, including continuing automation of modes,

terminals, and distribution facilities, just-in-time inventory management, which minimizes
inventory needs, would not be conceivable. Blockchains can help to handle the
complexity of intermodal transportation networks by allowing for improved mode and
terminal synchronization. Yield management and congestion pricing are also commonly
used to better manage available capacity in high-demand situations, but this requires
reliable real-time information on demand and supply characteristics. For example, in the
case of yield management, an airline might dynamically modify the value of its seats and
even ask booked passengers to delay their flight in return for compensation.

Impact of Information Technology on Education

The combination of education and technology has long been seen as the primary driver of
human development. Education feeds technology, which in turn feeds education. As a result,
it is clear that information technology has influenced changes in the methodology, purpose,
and perceived potential of education.

Changes to learning
The ability to access enormous databases of information significantly alters education
since learners may now be makers and participants in the access and development of
information discourses. Young people can acquire cultural capital from their grasp of
new information technologies as a result of their technical literacy, and so have an
impact on educational transformation. The same technology also enables the quick
interchange of information among researchers on specialized themes, resulting in a
significant boost in the pace of information diffusion. Students now have more access
to massive volumes of data, which need assistance in selecting, assessing, and
analyzing information, as well as learning how to determine the currency, validity, and
authenticity of the material itself. All of these shifts in learning have ramifications for
classroom instruction.

Changes to teaching
The highest level of change occurring in relation to information technology and
education is in the way teaching is increasingly being seen as occurring via the
medium of technology, rather than utilizing technology as an additional extra in the
classroom. Information technology particularly impacts course content and teaching
methodology and the recruitment and training of teaching staff as well as the content of
courses. Information technology requires teachers to learn new sets of skills. Utilizing
computer technology improves the educational experience of the students – not so
much because of the media itself, but because software programs require teachers to
think laterally and
systematically, and produce better teaching materials.

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 Information Technology and the purpose of education
While education in the past has been centered on teaching and learning, information
technology has affected changes to the aims of education, therefore now education is
increasingly perceived as the process of creating, preserving, integrating, transmitting
and applying knowledge. The perceptions of knowledge itself have also changed
whereas knowledge could once have been perceived as unchanging, it should now be
perceived as “revisionary, creative, personal and pluralistic”. The future of education is
not predetermined by modern information technology, but rather that this “future will
hinge prominently on how we construct (and construe) the place of technology” in the
education process. We are moving from “just-in-case” education to “just-for-you”
education” where education is targeted to meet the needs of individual students.

Information Technology and the potential of education

Information technology frees education institutions from the constraints of space and
time, and enables the delivery of education services anywhere, anytime. Therefore we
can foresee a future where physical libraries would be replaced by digital libraries
available to anyone; and that scholars could cease to be located around a geographical
focus and will probably become increasingly “located” around a specialization, but
physically located anywhere in the world. We could also imagine a day when modern
technology will enable students in a given location to access the best of teachers in a
given field and to interact with them, whether “live” or via video.

Changing the educational institution

The sheer scope of change underway in communication technology, with changes to
the methodology, and modes of education suggests that the educational institution itself
may need to be revised at the organizational level as well. Therefore we could foresee
a future of increased competition and alliances in which education institutions avoid
monolithic approaches to education, and embrace more strategic and collaborative
approaches.

Impact of Information Technology on Business

Information technology has dramatically transformed the lives of individuals. It provides

businesses the scope to analyze data and plan business strategies accordingly. Utilizing
information technology means that the data analysis is accurate, thus optimizing profits.

Information technology has had a major impact on various aspects of businesses. Here are
some.

Cloud Computing.
The concept of cloud computing is immensely popular among businesses owing to the
efficiency in business operations that it provides. Cloud computing utilizes information
technology to capitalize on its ability to provide improved agility and time and resource
management for businesses.

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Automation of Business Processes.
IT aids in the development of automated business operations. This not only helps to
reduce operating costs but also saves time. The time saved may be used to focus on
other duties, speeding up corporate operations. Billing, tracking metrics, gathering client
data, monitoring certain procedures, and so on may all be readily automated. There is a
wide range of automation software available for this purpose.

Remote Work.
The use of information technology allows you to remotely access your company's
network. As a result, it provides employees with the ability to do tasks even when they
are not physically present at the office.

Protecting Information.
Every organization has a massive database including diverse information about
business transactions, client information, and so on. IT provides the necessary
resources for storing information in a secure manner. By limiting access to a small
number of users, virtual storage solutions may keep information safe. Increased security
also ensures that these systems are not hacked and that no data is lost.

Providing Customer Satisfaction.

The finest tools for connecting with consumers and fixing their concerns in real time are
provided by information technology. It has made email, social media, and other
messaging tools available for this purpose. Help desk software can also enhance the
customer service experience.

Management of Resources
A business has diverse resources, including financial, human resource, and so on. IT
plays a critical role in seamlessly managing these resources. The integration of
Enterprise Resource Planning (ERP), for example, has increased the efficiency of
numerous corporate operations. ERP is a type of business management software that
allows a company to utilize a collection of connected applications to manage and
automate numerous business activities. Such software relies heavily on information
technology.

Open-Source Software
Information technology has opened the way for a variety of open-source software that
allows free use of certain tools by a variety of organizations. The major advantage of
open-source software is its adaptability. This enables changes to the source code. This
implies that you may tailor its functions to your own needs. Almost any business
software has open-source alternatives that are publicly available on the Internet.
Using these
might result in several benefits at a lower cost.