Recent and prospective advances in information technology have generated growing interest in its potential. To its enthusiastic promoters, information technology is a ‘good thing’ and hence more is obviously better. But increasing experience with information technology during the past twenty years emphasises that it covers a wide variety of capabilities, absorbs substantial resources and affects operations in other important ways. Hence, to ensure effective exploration and utilisation of information technology, management must assess its potential contributions, requirements and costs, as well as other significant effects.