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MENTAL MODEL · M1407

Productivity Puzzle

Productivity Puzzle
BusinessHigh supportMacroeconomics
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Version 1.0.0 · Updated 2026-07-30

CORE DEFINITION

Refers to the phenomenon where, despite massive investments in information technology (IT), productivity growth in statistical data remains unremarkable. Solow's famous quote: "You can see the computer age everywhere but in the productivity statistics." Scaffolding role: Reflect on the true value of technology. It reminds us that the introduction of technology does not automatically equate to efficiency gains. Without accompanying process reengineering and organizational change, technology may instead increase complexity and maintenance costs.

SCAFFOLDING EFFECT

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Reduce cognitive load

Reflect on the true value of technology. It reminds us that the introduction of technology does not automatically equate to efficiency gains. Without accompanying process reengineering and organizational change, technology may instead increase complexity and maintenance costs.

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Anchor fast decisions

The productivity puzzle refers to the phenomenon where large-scale information technology investments do not statistically manifest as productivity improvements over the long term (Solow 1987), often later attributed to measurement difficulties, time lags, and associated reorganization costs.

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