The Development of Strategic Information Systems Theory During the last 15 years, an area has developed within the Information Systems discipline which is generally referred to as 'strategic information systems'. It concerns itself with systems whose importance to the organisation extend beyond merely assisting it to perform its existing functions efficiently, or even just effectively. A strategic information system is instrumental in the organisation's achievement of its competitive or other strategic objectives. This paper presents a critical summary of the literature, and is accompanied by an extensive reference list. It begins by tracing the development of contemporary theory about strategic uses of corporations' internal …show more content…
It may also be compared with other critical interpretations such as Swatman & Swatman (1992), Galliers (1993) and Ciborra (1994). The notion and its origins are first discussed. The emergence of the key ideas is then traced. The process whereby strategic information systems come into being is assessed. Finally, areas of weakness are identified, and directions of current and future development suggested. Origins The role of Information Systems (IS) has developed during the years. The original conception was of automation of existing manual and pre-computer mechanical processes. This was quickly succeeded by the rationalisation and integration of systems. In both of these forms, IS was regarded primarily as an operational support tool, and secondarily as a service to management. During the 1980s, an additional potential was discovered. It was found that, in some cases, information technology (IT) had been critical to the implementation of an organisation's strategy. The dominant sense in which the term is used is that a strategic information system (SIS) is an information system which supports an organisation in fulfilling its business goals. An alternative interpretation of the term is that it is not necessary a particular IS, but rather the combination of those parts of an organisation's cluster of information systems which provide information into its strategic
Also information systems assist with making decisions and business processes by formulating strategic plans and make decisions for the organisation longevity and prosperity. Additionally information systems add controls to employee processes, ensuring
Information systems interact with the organizations and influences the organization in many aspects of the whole organizational structure to the daily behavior. Information systems can enable strategies in four aspects including low-cost leadership, product differentiation, focus on market value and strengthen customer and supplier intimacy.
Modern organizations use a variety of resources to fulfill their objectives regardless if the company is a multinational or small entity, they all have a set of resources they depend on to achieve their goals. Part of the resource relied on is Information, and this information needs to be managed to optimize its value to produce the best stakeholder value they can. In order to manage these resources, Information Management systems are put in place.
In the world of business, information technology strategy has been overlooked by owners for they are so focused on marketing strategies. Keeping up with the use of information technology is in just about all types of industrial process and just as important. It has been a proven fact that it contributes to the development of strategies and tactics when developing a product or service. During the twentieth century the accelerated progress in information technology has developed a large variety of technologies for the collecting and storage of information such as the Internet, software companies, and personal computers.
Information system is a combination of hardware, software, infrastructure as well trained personnel who organized and facilitate planning, control, coordination and decision making within an organization. Information systems are also able to implement a vital integrated set of components for collecting, storing, and processing data. With this, it provided organizations with the necessary information, knowledge, and digital products needed. Information system bring the meaning of business applications that manage their operations, compete in the market place, manage accounts and human resources. This system have a vast variety of components that are crucial for a enterprise, business to function at his highest level, IT software is responsible that all system are reliable and up to date.
This paper will discuss how an information system is critical to the business process of an organization and how the information has impacted the organization 's structure.
To help support this every organisation has an Information system. The UK academy for Information Systems defines information systems as “the means by which organisations and people, using information technologies, gather, process, store, use and disseminate information”
Generally speaking it is the hardware and software associated with the IS platform – this could also be referred to as Infrastructure. Many business confuse the term and see that a businesses IS function is all about the technology infrastructure – this is not strictly correct - Information systems is about getting the data and information to managers to enable them to make key business decisions – Information Technology is an enabler of IS.
It is generally accepted that information is a vital commodity for the successful operation of today’s organizations. Nowadays modern business organizations are using computerized information systems in order to obtain such information. However as the technology advances rapidly the main issue is how can an organization should effectively use such an information system - which its management sometimes can be unpredictable - in order to effectively help the whole organization structure to improve and take the most out of it.
Strategic information system is the information system, which are developed for the business initiative of any organization (Cassidy 2016). The strategic information management or SIM is the most important feature in the field of information technology. This strategic information management helps the organizations or companies in storing, categorizing, processing and transferring the information or data that are received or created (Cresswell and Sheikh 2013). Moreover, it offers several techniques for applying analytical tools to the information repositories, which allow them in recognition of the opportunities for growth and improvement of the efficiency in operations.
An information system is a base in today’s business world. Everything is electronic. In various businesses, the survival and ability to succeed strategic business goals is challenging without extensive use of information system. Businesses improve the efficiency of their operations in order to accomplish higher profitablity. Besides that, information systems are important tools available to managers for achieving higher levels of efficiency and productiviy in business operations. For an example, Zara uses the PDA technology to gather customer feedback and input.
Q:Large numbers of companies are using their information systems as a strategic tool to improve their competitive advantage. Choose one of these companies (Toyota or Wal-Mart) and prepare an essay of 1500 words on: a) how information systems are used strategically by the company to gain a competitive advantage b) discuss if it is possible for the company to maintain this advantage in the future.
Companies over the last decade, has recognized that their survival to a lesser or greater extent, depends either entirely or partially to appropriate information system. It is established, based on lesson learned from both failed and successful organizations, that an information system strategy are to support or aligned with, business strategy. Similarly the business strategy can influences the choice of Information System used in the organization. A business strategy entails futuristic organizational planning that result in companies gaining competitive advantage. It is direct linked to supporting area such as marketing, procurement, and information system. The case of Comair airline, even after acquisition by Delta
There are very many types of information systems. Classification of information systems follows the organizational levels in which they are used or installed for use. For instance, there are management information systems; some of which will be covered in this project report. Management information systems (MIS), helps businesses meet their business objectives. Almost all organizations and businesses today use management information systems; be it large, small, startup or an established multi-national. This is for the sole reason that information systems have evolved from just being a tool to gain competitive advantage for businesses, to a vital tool, a necessity in the digital age we live in. Management Information Systems help managers make better-informed decisions and communicate with their superiors, as well as with all the stakeholders in the businesses their organizations are involved in.