| By: | Alan Hughes; 
Michael S Scott Morton | 
| Abstract: | This paper argues that the gains from ICT at the individual business level 
depend upon the implementation of a range of complementary ÔinvestmentsÕ and 
organisational changes appropriate to the competitive and institutional 
context of particular sectors. To support our proposition we provide a brief 
overview of a recently emerging but compelling body of large sample 
micro-econometric research. We focus in depth, however on a single case study 
of ICT related organisational transformation in the transportation sector. 
This case builds upon the conceptual framework developed in the MIT 
interesting organisations project (Scott Morton (2003)). Taken as a whole we 
believe there is clear evidence of the conditions that seem to be required 
before the payoff from ICT can be realised by an organisation and hence 
diffuse through the economy. Effective use of ICT requires a holistic solution 
which recognises that there is no single factor, or even just a few, which 
leads to successful exploitation. Rather success comes from the artful 
crafting of a series of interrelated and mutually interdependent driving 
forces. The paradoxical ÔgapÕ between investment in computers and realised 
performance can be closed if this lesson is absorbed. | 
| Keywords: | ICT, Complementary Investment, Productivity, Transport Services | 
| Date: | 2005–12 | 
| URL: | http://d.repec.org/n?u=RePEc:cbr:cbrwps:wp316&r=ict |