Productivity on the Knowledge Society

1. Productivity on the Knowledge Society Máster en Producción e Innovación Industrial Dr. Eduardo Huerta Vásquez abdullah.khan2012 (Flickr)

2. Intro Fundamental concepts: Productivity ICT Competitiveness Services

3. Intro Productivity is the ratio of the obtained output and used resources to obtain it.

4. Intro • Factors of economic growth for developed economies: • Capital derived from the investment in ICT is essential for the growth of any economy.

5. Intro 2. The ICT sector is a source of growth in Total Factor Productivity (TFP) of any country. 3. Investment and innovation are not enough to increase productivity if is not accompanied by changes in crucial aspects of the company.

6. Intro 4. Proper education of future entrepreneurs, investors and employees in the ICT field.

7. Productivity Relationship between products amount obtained by a production system and used resources used for this outputs. P = production / resources

8. Productivity Productivity evaluates the ability of a system to develop products and the profit degree of used resources; added value.

9. Productivity Productivity has a relationship with improvement of quality management. Productivity is related to production standards.

10. Total Productivity Global productivity is a concept used in companies and organizations to contribute to productivity improvement by the study of the determinant factors of productivity.

11. Total Productivity - Study of the cycles and workloads, and distribution. - Quality-productivity. - To enhance production efficiency. - Study of inefficiencies from both technical strikes and rejections. - Study of materials and work in process. - Advice and participation.

12. Factors influencing productivity • In productivity come to play other important aspects: • • Quality of natural resources, which impact the production you need from these resources.

13. Factors influencing productivity • Industry Structure changes, including if they allow new participants or expanding competitiveness. • Total capital level and its increase. It facilitate the level of future investment. • Technological progress pace. More & better technology improves production quality.

14. Factors influencing productivity • Human resources Quality impacts on results of human input. • Macroeconomic environment, which can facilitate the economic participation. • Microeconomic environment, which can facilitate the way of daily work of different actors.

15. Improving productivity Innovating in: - Technology - Organization - Human Resources - Industrial relations - Working conditions - Quality - Other

16. Improving productivity To establish a mix of equipment, labor and resources to maximize outputs. The most visible way to increasing productivity is the investment in drives to make work more efficient maintaining the same (or less) level of employment.

17. Improving productivity Improving productivity is the key to improving the society living standard. It also affects in a higher return on invested capital, which encourages investment, job and economic growth.

18. Useful Habits to increase productivity in your business Training. Learn to work. In this way we will be in a position to speak the same language with our people.

19. Bases of labor productivity Low productivity may be linked to the way we work. Productivity can be measured in various ways. A skillful worker may be able to do much work in fewer hours than their peers. Then we say he is more productive.

20. Bases of labor productivity However, the amount of work is not always the main indicator of productivity. Example: A very intelligent and capable employee that cannot get much work ahead as their peers. The problem may be an internal disorganization and/or trouble to prioritize daily activities.

21. Bases of labor productivity The most basic and important training: Learn to organize tasks, to prioritize, to initiate and finish them.

22. ICT vital for establishing a new production model ICT play an important role in establishing a new production model that helps to solve the current financial situation. "The Information Society in Spain 2010" presented by the Telefónica Foundation.

23. ICT vital for establishing a new production model Information technologies constitute more than 5% of the national GDP. 55.6% of all the labor productivity profits in the EU is due to the use of ICT. In Spain the contribution of ICT reaches 41.6%.

24. ICT vital for establishing a new production model • In the ICT sector there is an increase in production and productivity as a result of innovation implemented. • Reduction in costs resulting from a decline in prices and improvements in ICT goods and services quality.

25. ICT vital for establishing a new production model • Improvements in the production organization linked to the use of ICT, could positively affect the total factor productivity (capital and employment).

26. ICT vital for establishing a new production model The ICT sector has experienced in recent years an unprecedented pacein technological developments, thanks to investment in R+D. Investment in R + D has increased by 3% Innovation has increased by 5%

27. ICT vital for establishing a new production model Thanks to new technologies are possible working models. Virtual industrial clusters Tele-cooperative work Telecommuting Off-shoring Prosumers Open innovation Peer production.

28. ICT vital for establishing a new production model "ICT exist to improve productivity and renew the way of doing business in an economic ecosystem increasingly interconnected."

29. In relation to the ICT impact, two positions. 1. The impact of technology is so important that it will produce a change in basic economic parameters, organization methods, relative prices, productivity, efficiency, relations between macroeconomic variables.

30. In relation to the ICT impact, two positions. 2. The impact of information technology on the economy does not differ too much from the impact of other previous innovations like electricity or rail, and, therefore, is not possible to speak about “new economy”.

31. ICT for Productivity and Competitiveness ICT are a very effective tool for increasing these two factors. Robert Solow´s "productivity paradox“.

32. ICT for Productivity and Competitiveness "productivity paradox" reflecting the fact that the increased investment in Information Technology was not reflected in the expected productivity growth.

33. ICT for Productivity and Competitiveness The ICT-producing sectors are less important in Europe (compared to United States). In addition, there are important differences between European countries, mainly among the northern European countries and southern countries.

34. ICT for Productivity and Competitiveness For the introduction of new technologies into higher productivity growth is necessary to have a proper context that enables efficient use.

35. Organizational change in information society The use of ICT requires the existence of staff with enough knowledge and skills to successfully deal with changes occurring at increasingly higher speeds.

36. Organizational change in information society Microsoft Center Productivity Innovation http://www.productivitycenter.org

37. Organizational change in information society There are some authors who classify occupations into two broad categories: Relating to information. Not relating to information.

38. Organizational change in information society The information concerning subdivided into two groups: occupations related with information manipulation and those that have to do with the knowledge generation (engineers, scientists, computer specialists, managers).

39. Different practices under blocks like…: • Information and communication: Employee participation in decision-making. • Remuneration systems: Employee participation in company profits. • Team work: Groups that solve problems concerning aspects such as quality, among others.

40. Different practices under blocks like…: • Employee representation systems: existence of unions in the company representing workers. • Training systems: promotion by the company of training courses, both on specific aspects of work as more general.

41. Different practices under blocks like…: • Quality systems: implementing methods of quality control of products and services. • Recruitment and selection Systems: selection based on motivation, experience, and communication skills.

42. Different practices under blocks like…: For this purpose, heterarchical organizational structures are required, as opposed to traditional hierarchical structures.

43. Homework «Descubrir» qué actuaciones pueden darse en el lugar de trabajo para mejorar la productividad.