Many applications are targeted at second order effects, such as better information. In many cases, the change being considered involves a major reorganisation in which IT plays an important role, but it is the investment in the reorganisation as a whole, which adds value and has to be evaluated. Studies have found African enterprises are under-utilising computers. In high-wage countries the computerisation of admin initially narrowed the gap between costs and benefits. As wages for admin staff in most African countries are still lower than in Europe, the benefits of computerisation are also lower.
Some information requires a deep understanding of a problem or concept.
Costs for this type of information include the price to be paid but also the cost of gaining the understanding. This cost may be a salary cost for a competence. In case this competence is not available, the cost for wrong interpretation of information may be high. The difference in education levels between most African and European countries adds to the risk of wrong interpretation of information and thus to increasing costs. Today traditional business performance measures, such as liquidity or profit margin have lost ground.