Strategic Information System for Effective Organizational Performance

Here are nine activities that help a company deliver products to customers effectively, focusing on four ways to improve the effectiveness of strategic information systems for better organizational performance.

STRATEGIC
INFORMATION SYSTEM

Table of Contents
INTRODUCTION...........................................................................................................................1
Concept of strategic information system................................................................................1
Impact of strategic information system on organizational performance................................2
Models for strategic information system................................................................................3
Ways to improve effectiveness of strategic information system for better organizational
performance............................................................................................................................3

INTRODUCTION
The literature review refers to the process in which the scholar develop with the critical
evaluation for all the negative as well as positive aspects of the specified topic. Further, in this
the scholar highlights by evaluating the viewpoints determined by different individuals regarding
to the strategic information system and its impact in the organization. At the end, it can be said
that literature review assist the scholar to prepare with the thesis in the data analysis section.
Concept of strategic information system
As per(Freeman, 2010), strategic information system can be define a system which is
formulated with a motive to provide a initiatives to business. With the adoption of this concept,
an organization can gain competitive advantages at global level. In addition to this, a firm
delivers products and services at low cost. The motive of this concept is to target a particular
group in order to provide innovation. However, this terminology is somewhat related with the
concept of information technology. It can also be said that, strategic information system provides
an assistance to the organization and its operations. By considering this factor, an organization is
able to store and receive the requisite information with the effective methods. In context to this,
strategic information system also provides an organization to bring betterment and innovation in
their business strategies. For determining the strategies of the firm, it is important to take into
consideration the resources which are available with them and make the most efficient plan to
utilize them to the best. It is because information management system allows to attain the data
regarding diverse internal and external environmental, aspects. It is an effective pathway which
provides with the direction to the enterprise and as per the objectives of the company develop
with the plans and policies by evaluating the available resources. Further, it also assist in
enhancing the performance of the employees as well as the company as a whole. Moreover, with
an efficient use of information system the organization can attain a higher competitive edge in
the market. In addition to this, the cited concept is used for the implementation of the business
entreaties with the used of computer system. This is a system which helps an organization to
continuous its operations on regular basis. However, the companies gets an appropriate direction
with the consideration of this concept. This process also allows an organization to perform its
functions very well. However, the information systems allows the organization to manage its
functions in a well manner.
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The SIS approach can be adapted by the organizations in order to attain their goals and
objectives in an effective manner. This will also allows a company to maintain the records and
information in an electronic form. This will assist the company in proper maintain of the records
and data of the company information. It will also allow the organization to lower down the
duplication of work in a way that the gaols and objectives of the company can be maintained.
The strategic information system will ensure effective planning for both the predictable and
unfeasible contingencies in an organization. Further, this approach is beneficial and applied for
both the organization whether it is small or large. Thus, the strategies of the company are taking
into consideration number of factors such as the legal policies, plans of the competitors and the
future aspects of the market. The ultimate impact of the cited concept will help this organization
to implement the innovation for the improvement of business strategies for future growth.
Impact of strategic information system on organizational performance
As per the view of (Liao, Chang and Wu, 2010), strategic information is having a
positive impact on the performance of the company. As it refers to the management team which
lead the employees towards the successful completion of the goals and objectives of the
organization. However, there are three types of information system which is used in an
organization. It includes financial system, operation system and strategic system. Whereas,
financial information system allows the company to analyse its accounting, budgeting and other
operations with references to the finance are done with the help of computerization. The major
impact of the same is that, it makes the tough calculations easy and accurate. The another
positive impact is that it controls all the systems which helps in removing the duplication of
work. On another side, (Melville, 2010) stated that for determining the strategies and plans for
the organization it is crucial to evaluate the goals and objectives so as to complete them with
greater efficiency. Furthermore, with the help of proper strategic information planning the
managers are able to align the work to the employees as per there interest and specialization
which in the long run ensures with the high performance level.
(Wheelen and Hunger, 2011) explained the positive impact of strategic information
system as it creates barriers to the entry of the competitors. An organization use this technique in
a way that the duplications of the products and services of the company are hard. This creates the
barriers for the new company who wishes to offer the similar products as the competitors.
Further, it has been evaluated that without using the proper strategies the decision making
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process can be reactionary which may result in number of mistakes and the company has to bear
the expenses. The another positive impact of this technique is that it generates database to
enhance the marketing. With the help of data base management strategies an organization is able
to edge over its competitors with the generation of database. For an instance, the organization
sure database for the controlling and supervision of the purchases done by the consumers.
However, (Sidebottom, 2014) critically explained that it is very important to report the strategic
information for the previous year so that they can evaluate the performance level of each
individual and of the company as a whole. This concept allows the organization to make proper
records of the performance of the employees in so that it can help in future context.
Models for strategic information system
According to (Wheelen and Hunger, 2011), Porters competitive advantage model can
help the organisation to analyse the five factors such ass threats of new entries, threats to
substitute of products, bargaining power of the suppliers and buyers. However, the analysis of
these five factors allows a company identify the factors which can affect the performance of the
industry. However, with the help of this model an organization may get all the information with
good management. In addition to this, the stated model helps the company to focus on two
factors such as lowering down the cost and differentiated products. Besides this, Porters
provides an effective tool for the appropriate analysis named value chain. By considering this
theory, the firm is able to focus on nine activities which helps the company to deliver the
products to the customers.
Ways to improve effectiveness of strategic information system for better organizational
performance
The company can follow the steps which can help to develop with the effective strategies.
 Environmental Scanning- It is the process in which the data is been collected from
different means after evaluating the internal and external factors. This will assist in
determining the actual situation of the market so that the strategic plans can be developed
according to it.
 Strategy Formulation- It is important to gather number of plans or strategies so that the
best one among them can be selected to ensure the accomplishment of the goals and
objectives of the company. For the same, the organization can adopt the management
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information system. With the help of this tool, the company will be able to maintain the
important data through which the proper strategies can be formulated.
 Implementation of the strategy- In this step the chosen strategy is been intended to put
under action to achieve the goals. Further, it mainly involves the organization's structure,
segregating the resources, coming up with decision and lastly to manage the human
resource in an effective manner. By considering the information system methods like
MIS, customer relation management the company will be able to implement the strategy
in an effective manner.
 Use of software: The organizations can use software like MYOB, Reckon and Saasu.
These software will allow the organization to properly manage the data and information
in the work premises.
CONCLUSION
From the above literature review it can be concluded that to grow and develop the
organization, it is important to have an efficient strategic information system. This will help the
company to make proper trace of the record so that it can implement its strategies in an effective
manner. Further, it has also been evaluated that an effective management of the plan will assist in
enhancing the performance level of the company. Hence, several methods are been determine to
improve with the effectiveness of the strategy.
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REFERENCES
Books and Journals
Freeman, R. E., 2010. Strategic management: A stakeholder approach. Cambridge University
Press.
Liao, S. H. and Wu, C. C., 2010. System perspective of knowledge management, organizational
learning, and organizational innovation. Expert systems with Applications. 37(2).
pp.1096-1103.
Liao, S. H., Chang, W. J. and Wu, C. C., 2010. An integrated model for learning organization
with strategic view: Benchmarking in the knowledge-intensive industry. Expert Systems
with applications. 37(5). pp.3792-3798.
Melville, N. P., 2010. Information systems innovation for environmental sustainability. Mis
Quarterly. 34(1). pp.1-21.
Wheelen, T. L. and Hunger, J. D., 2011. Concepts in strategic management and business policy.
Pearson Education India.
Zott, C. and Amit, R., 2010. Business model design: an activity system perspective. Long range
planning. 43(2). pp.216-226.
Online
Sidebottom, J., 2014. 10 ways to improve strategic planning. [Online]. Available through:
<http://www.csemag.com/single-article/10-ways-to-improve-strategic-planning/
9ad4ba79ad91a871b92614c03c9636a5.html>. [Accessed on 16th December 2016].
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