Nederlandse versie

It is natural to assume that the advancements in technology inevitably leads to the growth of personal productivity. Growing availability of data, new generation business tools are among the most anticipated impact drivers. However, trends of the past two decades tell a different story.

Personal productivity growth in the Netherlands (similar to other rich countries) has been diminishing for the past two decades. That might be due to the paradox of growing cognitive load with limited capacity to change.

Personal productivity growth % from 1993 to 2022

Cognitive load refers to the mental effort required to process information, make decisions, and carry out tasks. While technology has undoubtedly provided us with tools to streamline certain aspects of our business, it has also introduced a vast amount of information and distractions that demand our attention. As a result, our cognitive load has increased significantly, potentially offsetting the benefits of technological advancements.

SMEs, in particular, face unique challenges when it comes to adopting and integrating new technologies. Limited resources, both financial and human, often make it difficult for these businesses to invest in the latest tools and systems. Additionally, the ever-increasing pace of technological advancements can create a sense of overwhelm and reluctance to change, especially for individuals who are less technologically savvy or have established routines and processes.

To address this paradox, SMEs need to approach technology adoption strategically and thoughtfully. It's important to identify and prioritise areas where technology can truly make a difference in productivity, define the operating model, choose the right technology platform and partners. Low-code development platforms and Robotic Process Automation (RPA) are technological solutions that can play a significant role in addressing the challenges mentioned above.

1. Low-code development platforms empower individuals with limited technical expertise to create applications and automate processes with minimal coding requirements. These platforms provide a visual interface and pre-built components, allowing users to quickly design and deploy customised solutions. By enabling non-technical employees to participate in the development process, low-code platforms reduce dependency on IT departments and accelerate the implementation of productivity-enhancing solutions.
2. Robotic Process Automation (RPA): RPA involves the use of software robots or "bots" to automate repetitive and rule-based tasks. By mimicking human interactions with applications and systems, RPA bots can perform tasks faster and with higher accuracy, freeing up employees to focus on more strategic and value-added activities. RPA is especially effective in automating data entry, report generation, data validation, and other repetitive tasks that consume significant time and effort.

By adopting these technologies, SMEs can streamline processes, reduce manual effort, enhance data accuracy, and promote collaboration. Moreover, the intuitive nature of low-code development and the ease of implementation of RPA enable organisations to overcome resistance to change and drive productivity growth by empowering employees to actively participate in process improvement and automation initiatives.

References:

• Labour productivity and utilisation
• Productivity in SMEs and large firms

© 2023-05-26, Farid Gurbanov