Changing Scenario of Business Information Systems in Developing Countries

Until recently, information itself was not considered an important asset for the firm in developing countries, whereas the management process was considered a face-to-face, personal art and not a global communication process. Today, however, it is understood that information systems are essential for managers because most organizations need it to survive and grow. Moreover, the vitality of Information Systems is greatly emphasized in most developing countries like India where governments have played a key role in its diffusion to support developmental purposes. Governments of developing nations, through policies, laws and regulations, do exert the largest influence throughout various organizations and entities in terms of technology and innovative processes deployment. Recently, the extensive benefits of information collection, analysis and dissemination, supported by computer-based technologies have been sought to enable decision makers and development planners to accelerate socioeconomic development programs. Thus, many developing nations have been embarking on medium and large-scale Business Information Systems and computerization projects to leverage their developmental processes. In practice, most of these projects have sought to introduce computer technologies to realize socioeconomic development.

Developing nations, gaining from the experiences of the past, have been extensively investing in training, consultation and the establishment of a strong and efficient Business Information Systems infrastructure that could move them into a state of self sufficiency and help build a National Information Infrastructure that could help boost socioeconomic development. However, to realize concrete benefits from the implementation of Business Information Systems infrastructure, there is an ultimate need to apply the appropriate technology that do fit the country's values, social conditions and cultural aspects as well as the identification of Business Information Systems needs, and its related policies and regulations that could provide the proper environment for its implementation.

Use of Business Information Systems over the last two decades has been growing in different sectors and industries tackling many issues in the economy and penetrating many aspects of decision-making and organizational development. Information and Communication Technologies are also seen as a building block that can support socioeconomic development. Therefore, nations around the world have been attempting to capitalize on the capacities of various information and communication technologies to support their planning, development and growth processes. India, as a developing country, attempted since the mid 1980s to invest in its information infrastructure and focus on the development of information and management support systems to leverage the decision making process in the government and the public sector with an emphasis on its local administration using management support systems such as Decision Support Systems and Executive Information Systems for socioeconomic development objectives.

Industries in developing nations often face the dilemma of how much to spend on Business Information Systems. Should they be spending more than what firms of developed nations do, so that they can bridge the gap or should their spending on Business Information Systems have less priority than spending in other more important areas such as superior manufacturing facilities, superior manufacturing technologies, better health conditions, and employee welfare? The answer to this question cannot be straightforward as there will always be a debate over the real benefit of Business Information Systems in terms of increased productivity and strategic use.

Expenditure growth over time reflects the nation's trend of Business Information System adoption and use. The nature of the growth of the Business Information System expenditure of a given nation yields many insights, into the development pattern and expenditure pattern of the country towards accepting the challenges of the developed world and making its efforts to move towards excellence. In this way, anomalies can be discovered and a clearer growth picture can emerge.