Competitive implications of information technology in the public sector

Abstract

Increased use of market mechanisms in the delivery of public services is one of the major attempts made by governments to achieve greater efficiency, higher quality and a clearer focus on customers. Information systems (ISs) can promote the adoption of market mechanisms, but they can also preserve a monopolistic and hierarchic model of service delivery. Hence, understanding the competitive implications of information technology (IT) is becoming relevant for managers in the public sector as well. Provides a brief overview of previous research on IT‐based competition and discusses its relevance for public sector management. Then continues to describe a project where six offices of one city co‐operated in developing a shared geographic information system (GIS). While this research is based on an in‐depth analysis of only one case, other researchers have reported similar experiences. It appears that effective use of market mechanisms in the public sector requires new orientation in IS planning and rethinking of the role of IS departments in public sector organisations.