GEE 1: Living in the IT Era

Lesson 9 Lecture Notes

The Impacts of ICT on Productivity and Quality of Life

The Impact of ICT on the Standard of Living and

Worker Productivity
Standard of Living and GDP

The standard of living varies significantly among different groups within a country and across
nations. Gross Domestic Product (GDP) per capita is the commonly used indicator to measure
the material standard of living. National GDP represents the total annual output of an economy.
Generally, industrialized nations have a higher standard of living compared to developing
countries.

Improving Standard of Living

In countries like the United States, the standard of living has been on an upward trajectory over
time. However, the rate of improvement fluctuates due to business cycles, which influence
factors like prices, wages, employment levels, and the production of goods and services. Major
disasters, such as earthquakes, hurricanes, tsunamis, and war, can have adverse effects on the
standard of living.

IT Investment and Productivity

Productivity refers to the amount of output produced per unit of input and is measured in various
ways. For instance, in a factory, productivity may be measured by the number of labor hours
required to produce one item, while in a service sector company, it can be measured by the
annual revenue generated by an employee divided by their annual salary. Countries have
managed to increase the production of goods and services over time by improving efficiency
rather than simply increasing input. These productivity gains have contributed to an enhanced
standard of living based on GDP, as each hour of labor now produces more goods and
services.

The Role of IT in Innovation and Productivity

Innovation is a crucial factor in improving productivity, and information technology (IT) has
played a vital role in enabling innovation. Forward-thinking management teams utilize IT, along
with other new technologies and capital investments, to implement innovative changes in
products, processes, and services.
Early IT Impact on Productivity

In the early days of IT, particularly in the 1960s, the impact on productivity was easily
measurable. For instance, mid-sized companies often employed numerous accountants
dedicated solely to payroll-related accounting. However, with the implementation of automated
payroll systems, the need for a large number of accounting employees diminished. The
productivity gains resulting from these IT investments were evident.

Current IT Enhancements and Productivity

Today, organizations focus on further improving IT systems and refining business processes
that have already undergone multiple rounds of enhancement. Additionally, organizations are
incorporating new IT capabilities to assist workers who already utilize various personal
productivity applications on their desktop computers, laptops, and smartphones, such as the
BlackBerry®, Droid®, and iPhone®. Rather than replacing workers, these IT enhancements
save employees small amounts of time each day, contributing to overall productivity.

The Digital Divide

The term "digital divide" refers to the disparity between individuals who have access to modern
technology such as cell phones, smartphones, personal computers, and the Internet, and those
who do not. While there are approximately 2.4 billion Internet users worldwide, the distribution of
Internet users varies significantly across regions and within countries.

Global Disparity

The digital divide exists not only between countries but also within countries, impacting various
demographics such as age groups, economic classes, and urban versus rural residents. For
instance, in India, while 20 percent of urban Indians have Internet access, only 3 percent of rural
Indians are connected. Similarly, in the United States, certain groups such as Hispanics, African
Americans, adults in low-income households, and senior citizens have the least access to the
Internet.

Importance of Bridging the Divide

Bridging the digital divide is crucial for several reasons. Improved access to information and
communication technology (ICT) can help resolve health emergencies, combat crime, and
provide educational and economic opportunities. It also has the potential to influence cultural,
social, and political conditions. As more essential information is provided online, access to the
Internet becomes increasingly important for managing careers, retirement, health, and safety.

The Digital Divide in the Philippines

The Philippines still faces a significant digital divide, as highlighted in the 2020 Philippines
Digital Economy Report by the National Economic Development Authority and the World Bank.
More than half of the country's households lack Internet access, and the penetration of fixed
and mobile Internet is comparatively low compared to neighboring Southeast Asian countries.
This divide contributes to unequal access to Internet-dependent services.

Impact of the Divide

The digital divide prevents individuals without Internet access from benefiting from the
socioeconomic opportunities offered by the Internet. Limited access to information and learning
resources hinders their ability to make informed decisions, stay safe, and improve their quality
of life.

Causes of the Digital Divide in the Philippines

The lack of adequate telecommunications facilities in the Philippines is a major cause of the
digital divide. This problem has persisted due to the government's reluctance to invest in digital
infrastructure and the bureaucratic challenges faced by private companies seeking permits from
local governments.

Government Initiatives to Bridge the Divide

To address the digital divide, the Department of Information and Communications Technology in
the Philippines is leading the creation of a National Broadband Network. The initial draft of the
National Broadband Plan emphasizes the development of Internet access in rural areas and
regions with limited web access. By 2022, key cities and provinces without commercial
telecommunications services are expected to have Internet access based on the plan.

Government Programs to Enhance ICT Literacy

The Department of Information and Communications Technology has directed its bureaus and
regional offices to organize webinars aimed at enhancing the ICT competencies of teachers,
administrators, educators, and students in public and private educational institutions. These
initiatives aim to improve ICT literacy and competency through training and upskilling.
The ICT Literacy and Competency Development Bureau (ILCDB), Cybersecurity Bureau, and
Regional Offices have been directed to organize and facilitate webinars aimed at enhancing the
ICT skills of teachers, administrators, educators, and students across public and private
educational institutions, as well as state universities and colleges (SUCs).

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

e-Filipino

As part of the United Nations’ Millennium Development Goal of bringing ICT access to all, the
DOST- ICTO harnesses the use of the ICT to achieve growth and development of communities
in the Philippines by developing Community eCenters (CeCs). These centers adhere to the ICT
needs of different people, offering alternative learning and skills skills training to each
community. It also aims to prepare the special needs sector through gaining employment to
impact sourcing and ITpreneurship.

National Connectivity

Connectivity is globally recognized as a growth driver. According to a World bank study, every
10 percent increase in broadband penetration results in a 1.27 percent increase in a
developing nation’s Gross Domestic Product (GDP). However, many areas of the country and
many Filipinos are still unconnected in one way or another. The program addresses this
challenge.

e-Government Harmonization

e-Government (eGov) is key in supporting the MDP and the President’s Social Contract.
Currently, the Philippines ranks 95th in the global eGovernment rankings. This program aims
to improve our position to 50 or higher by addressing key issues such as interoperability and
efficiency through both policy innovations and strategic infrastructure interventions.

e-Civil Servants

The ICT Office is mandated to administer and manage ICT Competency-based Training
Programs in collaboration with public and private training institutions and Subject Matter
Experts (SME’s). Courses cover three tracks: e-Government Management, Application
Development, and Technology Solutions. This program also aims to develop the digital
competencies of the public service employees. (see more)

ICT Enabled Startup

This is a new initiative which promotes the spirit of entrepreneurship and leverages the use of
ICT to affect change and provide solutions for problems in the different industries and society
at large by supporting the creation of technology startups.
The ICT Office aims to be the government lead in strengthening the local technology startup
community towards a unified goal: to be globally recognized as an active startup hub in Asia
and the world, and effectively mobilize its key resources and players to create and nurture
home-grown and foreign startups alike.

Healthcare Information Technology (HIT)

The healthcare industry has undergone a profound transformation due to the integration of
information technology. Through electronic check-ins, digital medical records, and efficient
delivery of test results, information technology is revolutionizing healthcare practices.
Healthcare Information Technology (HIT) specifically focuses on securely utilizing technology
to manage health-related information.

HIT encompasses various tools and systems such as e-prescriptions, electronic health
records (EHRs), and mobile applications that help patients achieve their health goals. These
advancements in information technology enable patients to access healthcare facilities more
conveniently and empower them to take control of their own health.
The importance of healthcare information technology lies in its ability to:

● Provide accurate and customized health information to individuals, enhancing their

understanding and decision-making.
● Facilitate quicker and more informed decisions regarding health risks for both
individuals and the general public.
● Improve communication between patients and healthcare professionals, fostering
collaborative decision-making.
● Establish networks of social support for patients and healthcare providers.
● Enhance awareness of health-related matters among the public, leading to positive
outcomes.

Impacts of ICT on Mobility

Information and Communication Technology (ICT) has significant implications for mobility,
including modifications, substitutions, and new movements. The effects of ICT on the
transportation sector can be summarized as follows:

Transport Substitution
ICT, particularly mobile phones and teleconferencing, introduces alternative forms of mobility
and the possibility of substituting physical travel. While vehicle use reduction is a primary
benefit, the impact on physical mobility remains limited. Notably, ICT has led to a decline in
physical mail volume and a substitution of in-store purchases with online transactions and
home deliveries.

Navigation and Tracking

ICT enables dynamic navigation and real-time traffic information, resulting in accurate travel
time estimates and alternative routes. Navigation apps have been widely adopted, leading to
time and fuel savings for road users. Additionally, tracking technology improves transport
management, allowing for flexible routing and monitoring of goods' conditions and locations.

Self-Driving Vehicles
The integration of ICT, including real-time information and sensors, has paved the way for
self-driving vehicles. This innovation promises reduced vehicle demand, enhanced mobility
for individuals with impairments, improved safety, and more efficient passenger and freight
flows.

Mobility as Service Markets

The internet has transformed transportation markets by enabling direct booking of services
such as air, train, and bus travel. Online platforms for ride-sharing and car rental services
have disrupted traditional taxi industries. Freight transport services have also benefited from
digital platforms, allowing for efficient service auctions and bidding.

Transport Asset Management

ICT optimizes transportation asset management through better vehicle and route
management. Logistics applications enhance inventory management and delivery reliability.
Online appointment systems for terminals and distribution centers improve efficiency, while
blockchains support intermodal synchronization. Yield management and congestion pricing
strategies require real-time information on demand and supply to manage available capacity
effectively.

Impact of Information Technology on Education

The fusion of education and technology has long been recognized as a pivotal factor in
human advancement. Education nurtures technology, which, in turn, forms the foundation of
education. Consequently, it is evident that information technology has brought about changes
in educational methods, purposes, and potential.

Changes in Learning
The advent of extensive information databases has fundamentally transformed education,
allowing learners to become creators and collaborators in accessing and constructing
information discourses. With their technological literacy, young individuals can gain cultural
capital through their understanding of modern information technologies and actively
contribute to educational evolution. This technology also enables researchers to rapidly
exchange information on specific topics, significantly accelerating the distribution of
knowledge. However, the increased access to vast amounts of data necessitates guidance
for students in selecting, evaluating, and analyzing information, as well as learning to
determine its currency, validity, and reliability. These changes in learning have notable
implications for teaching practices as well.

Changes in Teaching
The most significant level of change brought about by information technology in education is
the shift towards viewing teaching as occurring through technology, rather than simply
incorporating technology as an additional classroom tool. Information technology significantly
influences course content, teaching methodologies, the recruitment and training of educators,
and the substance of courses. Teachers must acquire new sets of skills to effectively utilize
computer technology, as it enhances the educational experience by encouraging lateral and
systematic thinking and the creation of improved teaching materials.

Information Technology and the Purpose of Education

In the past, education primarily focused on teaching and learning. However, information
technology has reshaped the goals of education, with an increasing emphasis on the process
of creating, preserving, integrating, transmitting, and applying knowledge. The perception of
knowledge itself has also changed, shifting from being regarded as static to being seen as
"revisionary, creative, personal, and pluralistic." The future of education is not predetermined
by modern information technology but rather hinges on how we construct and perceive the
role of technology in the educational process. Education is transitioning from a "just-in-case"
model to a "just-for-you" approach, tailored to meet the individual needs of students.

Information Technology and the Potential of Education

Information technology liberates educational institutions from the limitations of time and
space, enabling the delivery of educational services anytime and anywhere. Consequently, a
 future can be envisioned where physical libraries are replaced by digital libraries accessible to
all, and scholars are no longer tied to specific geographical locations but can be physically
situated anywhere in the world while specializing in their respective fields. Furthermore,
advancements in technology may one day facilitate students in a particular location to access
the best teachers in a given field and interact with them, whether in real-time or via video.

Transforming the Educational Institution

The extensive transformations occurring in communication technology, educational
methodologies, and modes of education suggest that educational institutions themselves may
require organizational-level revisions. In the future, increased competition and alliances are
foreseen, prompting education institutions to move away from monolithic approaches and
adopt more strategic and collaborative methods.

Impact of Information Technology on Business

Information technology has had a profound effect on individuals, revolutionizing their lives in
various ways. It has empowered businesses to analyze data and formulate strategies based on
accurate information, leading to optimized profits.

Transformational Aspects of Information Technology in Business

Cloud Computing: Businesses widely embrace cloud computing due to its ability to enhance
operational efficiency. By leveraging information technology, cloud computing offers improved
agility, time management, and resource allocation.

Automation of Business Processes: Information technology facilitates the development of

automated processes, reducing operational costs and saving time. This enables businesses to
streamline tasks such as billing, metric tracking, data collection, and process monitoring through
the use of automation software.

Remote Work Capabilities: Information technology enables remote access to a company's

network, allowing employees to work from anywhere. This agility brings numerous benefits, with
47% of employees in the U.S. eligible for remote work, as reported by a federal government
resource.

Mobile Technology: With the popularity of information technology, mobile technology has
gained momentum for its convenience, efficiency, and speed. The Bring Your Own Device
(BYOD) trend has risen, increasing employee satisfaction. Approximately 74% of organizations
already adopt or plan to adopt BYOD, with the BYOD market projected to reach $181.39 billion
by 2017. Mobile technology revolutionizes business communication.
Data Protection: Information technology offers robust solutions for safeguarding valuable
business information, protecting against potential legal issues. Virtual storage systems and
restricted access ensure information security, preventing hacking or data loss.
Enhancing Customer Satisfaction: Customer experience and satisfaction are vital for
business success. Information technology provides effective tools, including email, social media,
and messaging platforms, enabling real-time communication and efficient problem-solving. Help
desk software, including ticketing systems, improves support workflows, accuracy, and
timeliness.

Resource Management: Managing diverse resources, such as finances and human capital,
can be challenging for large organizations. Information technology plays a pivotal role by
introducing feasible solutions. Enterprise Resource Planning (ERP) systems, powered by
information technology, automate and enhance business operations, contributing to streamlined
processes.

Open Source Software: Information technology has facilitated the development of open source
software, offering free access to various tools for organizations. The flexibility of open source
licenses allows customization to meet specific requirements. Businesses can leverage open
source alternatives for software, reducing expenses and gaining competitive advantages.
The implementation of information technology in business has opened doors to significant
benefits. The key lies in how businesses effectively utilize this technology to maximize profits
and ensure long-term success. When implemented correctly, information technology can propel
businesses to new heights.