Monday, January 03, 2005

IT Growth Structure

Why have been Pakistani businesses slow to adopt IT despite tremendous benefits?

After thinking over it for some time, I came up with a growth structure that we have followed thus far. Apart from the inconsistent and derogatory policies, the growth structure that we followed is unsatisfactory. It is depicted below:

In such a structure, there is more supply than demand at the initial stages, thus leading to an economic in-equilibrium right at the inception. Because of an excess supply of IT services and professionals (without creating a demand at the upper tiers), businesses fail to deliver real value in the form of better goods and services.

On the other hand, the ideal growth structure would have been a start with awareness through education. Once there is enough quality education, professionals would penetrate the market and automate business processes to create value. At the last stage, businesses would electronically integrate to provide real value, while cutting costs by integrating with suppliers, distributors and customers.

The ideal growth is depicted below. Notice the low density of the lower tiers as compared to the upper tiers.

Let me know what you guys think about it?

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