Why do we make more money than past generations? What makes the economy grow?
The answer is productivity improvements. We are simply much more productive today. Although inflation, increased spousal earnings and population growth increases per capita income, it is productivity improvements that cause the economy to grow in real terms. In fact, we are seven times more productive today, resulting in greatly enhanced earnings, than we were a century ago. Investing in productivity improvements is the driving force for economic growth and business success.
Alan Greenspan, the former chairman of the Federal Reserve Board, attributes three items to this productivity growth during the last century. Electricity was the first item driving increased productivity. Instead of using manual tools with now use power tools. Secondly, improvements in our transportation system let us move goods over greater distances much more efficiently. And lastly and most importantly, implementing information technology is the key detail in obtaining productivity improvements. Greenspan has even stated that information technology is the most far reaching of the three items driving productivity because information technology can be applied to just about any business process.
What does this mean for you?
To increase your earnings, search for productivity improvements in all of your business processes. Automating certain business activities, such as takeoff and estimating, is often one of the easiest places to find productivity improvements. And, please remember, not all information technology is the same. Always prepare a cost benefit analysis. What is the return on the investment? What are the costs? What are the benefits? Consider all of the costs, besides licensing fees, such as the costs to implement, train, maintain, manage and service.
At Vertigraph, we are confident that our takeoff and estimating software solutions generate the highest return on investment with the greatest productivity improvements. That is our ending mission, and we only ask that you compare.