1.
1 Introduction
Strategic information systems (SIS): are information systems that are developed in response
to corporate business initiative. They are intended to give competitive advantage to the
organization.
Strategic information management (SIM): SIM helps businesses and organizations
categorize, store, process and transfer the information they create and receive. It also offers tools
for helping companies apply metrics and analytical tools to their information repositories, allowing
them to recognize opportunities for growth and pinpoint ways to improve operational
efficiency.
Strategic management (SM): is the way an organization maps the strategy of its future
operations. The term strategic points to the long-term nature of this mapping exercise and to the
large magnitude of advantage the exercise is expected to give an organization. Information
technology contributes to strategic management in many ways.
1.3 Role of Information Technology in Strategic Management
1. Innovative applications
2. Competitive weapons.
3. Changes in processes.
4. Links with business partners
5. Cost reductions.
6. Relationships with suppliers and customers
7. New products.
8. Competitive intelligence
2.3 Types of Information Systems Strategies
1. Operations support system:
In a firm, data execution is performed by the user end, which is later processed to generate useful
data products and services like reports, which are utilized by different users. Such a strategy is
called operation support.
The primary purpose of this system is to keep a check on transactions, operations, control, chain
supply, and management.
It also helps to facilitate internal and external talks, and it updates the central main database of
the organization.
The operation support system is further divided into three systems which are-
Transaction Processing System (TPS)
Process Control System
Enterprise Collaboration System
2. Management Support System
Management support system strategy enables the effective decision and task operation
process more manageable for the managers.
They are essentially divided into a different strategy like management, decision, accounting
and expert information system.
These systems facilitate and provide precise information and data to the manager for easy
routines, decision-making processes. Decision support system which helps to solve
particular issues related problems.
Strategic Information Systems Planning (Sisp)
Strategic Information Systems Planning (SISP):- is an important activity for helping
organization to identify strategic applications and to align an organization’s strategy with effective
information systems to achieve organization’s objectives.
SISP is commonly defined as the process of identifying a portfolio of computer-based
applications to assist an organization in executing its business plans and realizing its business
goals.
Information systems can be regarded as a strategic resource in an organization. The
opportunities can be classified in 4 areas:
To gain competitive advantage.
To improve productivity and performance.
To enable new ways of managing and organizing.
To develop new businesses.
Information systems planning should be an integral part of business planning
o Business planning – the process of identifying the firm’s goals, objectives, and
priorities + developing action plans for accomplishing them.
o Information systems planning – the part of business planning concerned with
developing the firm’s information systems resources
1.3. SISP Phases
SISP has been described in terms of phases and the specific tasks within them. The phases and
tasks represent the components of the planning process, with each having its own objectives,
participants, preconditions, products, and techniques.
The phases and tasks can be used to describe an organization’s attempts to be comprehensive in
its strategic planning process. SISP unfolds in five phases.
The overall five phase breakdown is as follows:
1) Strategic Business Planning: Prerequisite to systems planning:
It outlines an organization’s overall direction, philosophy, and purpose.
It examines its current status in terms of its strengths, weakness, opportunities, and threats.
It sets long-term objectives.
It formulates short-term tactics to reach them.
2) Information Systems Assessment: Evaluation of the system to assess its status (current
information systems resources) in terms of original or current expectations and how they
are serving the organization.
3) Information Systems Vision: Ideal role that should be pursued for use of information systems
resources.
4) Information Systems Guidelines: Set of statements that clarify use of organization’s technical
and information systems resources.
5) Strategic Initiatives: Three to five year long-term proposals that specify new initiatives for
information systems organization.
Reading Assignment: - long-term planning and Short term planning