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Online Learning News and Research
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Saturday, August 17, 2002
http://www.educause.edu/ir/library/pdf/erm0242.pdf Intellectual Wealth as a Return on Investment in Technology William H. Graves The Computer Science and Telecommunications Board of the National Research Council first described the “IT paradox” in 1994: “Some economic studies have suggested that the large investment in IT by the service sector has not been associated with substantial gains in productivity as measured by national macroeconomic statistics. . . . [Yet] the use of IT now appears more essential than optional.”1 Information technology had become the competitive edge in the provision of services. Service companies that had not infused technology into their business models were disappearing while IT-savvy business models were enabling some companies to rise to higher levels of competitive excellence. And entire new service sectors had been established, ones that could not have existed without certain enabling technologies. Within higher education, meanwhile, the nonprofit sector is increasingly competing with innovative, for-profit postsecondary learning providers, such as the University of Phoenix Online. Does the future of nonprofit higher education hang in the balance as its leaders learn the competitive lessons of the study conducted by the National Research Council? Are those traditional colleges and universities that do not successfully infuse technology into their service and “business” models at risk?...
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