State Corporations have adopted information and communication technology as a strategy to promote, efficiency, effectiveness, and transparency in service delivery, through an information system. Although parastatals have acquired various practices in the implementation of the information system, some challenges still arise at the implementation stage leading to lack of achieving envisioned benefits. Computer-based programs, as well as information technology, yields a critical impact on state organizations over the past three decades. Since information systems have capabilities to provide a competitive edge, they form part of organization strategy. Application of computer-based information systems with state parastatals such as state-owned companies have significantly reduced the transaction cost and altered ways of operation within these organizations.

Information systems have also facilitated firms to develop positive relationships with their respective clients and produced new opportunities for corporations. The information systems have provided faster service delivery in the public sector through electronic delivery of public services to general citizens and non-governmental enterprises by promoting transactions with government to be done through electronic avenues such as the internet. The development of new concepts derived from improved electronic capabilities like ‘New Electronic Customer Focused Government,’ as well as ‘Virtual Public Enterprises.’ Despite, the influx of computer applications in the public sector, the implementation process is faced by some hindrances that are inflexible rules of procurement, procedures for hiring and rewarding, and rigid institutional structures. However, state parastatals are subjected to a confrontation with political pressures rather than market competitions.

Implementation challenges resulting from information systems can lead to failure in harnessing the specific capabilities of the information system in line with the strategic objectives of the organization. Thus, it becomes difficult for the organization managers to manage user-based information technology services to the general public. Information systems take long to develop resulting in agitation among userdepartments that feel dissatisfied with the quality and timeliness of assistance they get from information technology departments. Information systems often run over government budget; they are perceived not provide the originally business intended benefits.

The state corporations merely turn off the traditional system and put in function the new information system. Unfortunately, the intended users of the new system must learn the set commands thereby reducing the productivity of staff. Instead, the organization can introduce a parallel cutover, which allows the end users to operate both systems until users become conversant with features of the new system. Lastly, the new system is phased in by addition of different systems’ modules at different locations or times. Phased implementation is recommended when a parastatal or a state-owned company is planning to integrate a variety of applications that posses potential sharing data benefits such as inter-ministry communications.

Data conversion in parastatals is very complex and risky during information systems implementations thus, data obtained from legacy systems should be further processed to abide by new rules before it can be entered into the new information system. Consequently, the conversion activity must be done in a definite time frame to reduce business disruptions during a switch from the old system to the new information system. The public sector converts significantly larger information as compared to the private sector because the legal as well as system integration requirements linked with the accounting of funds. Therefore, this conversion risk can be minimized by practicing repeated testing alongside checking the validity of the integration process.

After the implementation process, the new system enters the maintenance process. The maintenance of the new system is simple following adequate system planning, analysis,design, andimplementation; it just involves either simple system debugging or adding simple enhancements. Therefore successfully application of information system is based on the availability of personnel with adequate knowledge and system process needed to support the information system.So, parastatals must design incentives to retain the available expertise in the field of information technology or else they will depend on external contractors to facilitate their critical systems and process of administration.

Opportunities for information systems in state-owned corporations arise from time to time leading to the planning of funds, technical expertise, software as well as hardware capabilities required to utilize the emerging chances from the information systems. The public health care has substantially invested in the information systems to control the cost of health care and effective standards of service delivery. Also, the introduction of systems technology to parastatals like livestock and agricultural produce have enabled farmers to get access to detailed and timely information about their products leading to proper utilization of the available resources. Efficiency, effectiveness, and transparency are the key benefits of applying information systems in parastatals. The public organizations consist of transaction-oriented information systems, administration and regulation systems, and service delivery information systems. Through Executive Network government ministries or departments are connected to their respective agents. So far, the government ministries are linked through integrated information systems, for instance, Integrated Personnel, and Pension Database.

 
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