Practical Economies of Information Technology

Information technology has changed the shape and content of organization, trade and industrial institutions. It has made them more efficient, dynamic and effective. High productivity and sustained quality control can be possible only through sound and comprehensive information systems. However, in underdeveloped countries, most of the strategic executives and top decisionmakers do not have enough knowledge and understanding of information technology and only see it superficially. Optimum utilization of information technology requires careful cost-benefit analysis. In this paper we emphasize various economic aspects of information technology. We try to study the direct and indirect impact of information technology on productivity taking into consideration the related paradoxes. We also try to understand its impact on various trade institutions. Different kinds of investment and the various ways they correspond with the sub-structure of information technology are related to social conditions and organizational status. In the end we shall discuss the economies of systems based on internet websites and the negative impact of project failures of information technology and its subsequent economic impact and try to give appropriate suggestions.