Impact of Information and Communication Technology investment on organizational performance

Abstract

The impact of information and communication technologies (lCT) investment on business performance has been a major research subject for long time. Until the mid 1990s there was little empirical evidence of a positive and statistically significant relation between lCT investment and business performance (lCT Productivity Paradox). Subsequent research, conducted mainly in a few highly developed countries, provided some empirical evidence of a statistically significant positive contribution of lCT investment to some measures of business performance, which increases if ICT investment is complemented by 'co-investments' that create some complementary 'intangible assets', such as new work practices, business processes, organizational structures and skills. This research examines the impact of information and communication technology (lCT) investment on performance at Nairobi Water Company. The research design that was adopted was descriptive research. The target population constituted lCT technical and management staff; Billing technical and Management staff; Engineering technical and Management and Finance management staff who are mainly rCT systems owners at NCWSC Nairobi. The research developed organizational performance survey indicators that were used to assess the impact of rCT on NCWSC performance. It was clear that majority agreed that rCT has enhanced the company revenue. The observations showed that investments in rCT substantially increased the average organizational performance of companies, since 2007 when NCWSC embarked on an rCT development strategy various milestones have been achieved and the company overall revenue improving. As far as recommendation are concerned staff need to be trained, this will address Change Readiness, Seeding of Change, Capacity Building, Monitoring and Review and Sustaining Change with regard to processes, roles, boundaries and structures, mind set/attitudes. Change management needs to be tied to staff appraisal. The process should include the change management program to cover programme selection, control and evaluation.