Productivity paradox [VIDEO]
Pace of Change w/Rohit Amberker: Productivity Paradox
Rohit Amberker opens this episode of Pace of Change with a clear disclaimer: he is no expert on this week’s topic. However, he does have some experience and insights on the productivity paradox.
- Rohit begins by outlining the definition and history of the productivity paradox. The idea started in the ‘70s when the technological revolution started. Productivity was expected to increase and job displacement felt imminent.
- In reality, the number of jobs increased and the predicted GDP explosion, particularly in the U.S., never came to pass.
- Theoretical explanations were floated. One was that revenue increased with pay, offsetting each other. Another theory was improper measurement of such metrics, especially where IP vs. widgets was concerned.
- Today, we’re seeing the cycle begin to repeat. ML, AI, blockchain, theoretically big productivity and moneymakers, haven’t panned out.
- However, because the landscape is always evolving and being reinvented, it is difficult to compare the “before and after.”
- How can we conceive of what tomorrow brings, and what’s worth investing our corporate dollars in? Rohit suggests thinking of optimization in only two ways: inventing a new product, or innovating an old one.
- Ultimately, the means to the end may not matter. When it comes to satisfying customers, you’re either fulfilling a need they have or creating a thing they didn’t know they needed.
- The goal is the third dimension: creating customer-centric value from something that doesn’t currently exist.
- Human value paradigms are constantly shifting. How can your enterprise capitalize on these unarticulated needs?
- Data has allowed the enterprise to predict these shifting needs—and provide their solution—faster than ever.
- Traditionally, the pace of change—the time between the rollout of a new technology like Facebook or Amazon and its monetary return—has taken around 10 years. For example, we started talking about the cloud 10 years ago. It has taken that long to show up as revenue in Microsoft, Amazon, or Google’s P&L.
- The productivity paradox gap is shortening as technology’s capabilities exponentially expand.
Learn more about the productivity paradox with specific examples and deeper insights by watching the full conversation below.