AbstractMicrocomputers have great potential to improve health service management in developing countries. In addition to their commonly recognized abilities to process numerical information, they can also provide assistance in interpreting it. They can highlight problems that require attention, suggest possible reasons why problems occur and suggest appropriate managerial responses. Computer programs which perform these more advanced functions are often known as knowledge‐based systems (KBSs) since they incorporate the knowledge of experts in the area addressed by the system. Such systems are increasingly being used to support decision making in commerce and public administration and offer great potential to the health sector. This article presents preliminary results of work to develop a KBS to help mid‐level managers monitor and evaluate health service provision in Papua New Guinea. It considers issues in the design and development of KBSs and discusses their future potent