HI5019 Strategic Information Systems - BHP Billiton Company Case Study

HI5019 STRATEGIC INFORMATION
SYSTEMS
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Contents
Introduction......................................................................................................................................3
Q1. Compare and contrast the issues and challenges that face strategic information systems
planners........................................................................................................................................4
Q2. Critically evaluate whether or not an IS Strategy may help an organisation to achieve a
competitive advantage. If an IS Strategy can help an organisation achieve a competitive
advantage – how might an organisation sustain such as advantage?...........................................6
Q3. What approaches could an organisation adopt when attempting to develop innovative uses
of strategic IS?.............................................................................................................................9
Q4: Choose either Outsourcing or End User Computing, as a strategic option. Critically
discuss how the Director of IT/IS of the chosen organisation would manage the strategic
option you have chosen.............................................................................................................11
Q5: Evaluate the statement that: Strategic Information Systems can add business value to an
organisation through IT/IS. Your answer should include relevant case evidence that supports
your arguments..........................................................................................................................13
Q6: Critically discuss what constitutes having a ‘good’ internal control in a contemporary and
complex business world. Your answer should cover how organisations could develop an
internal control strategy so that they are not exposed to excessive risks or behaviours that
could harm their reputation for honesty and integrity of their staff..........................................16
Conclusion.....................................................................................................................................19
References......................................................................................................................................20
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Introduction
This report is based on the strategic information system in BHP Billiton Company which is an
Australia based organisation and deals in resources and is one of the largest mining companies in
the world. The company was formed by merging Broken Hill Proprietary and Anglo Dutch
Billiton Plc. A strategic information system is the systematic management of the information of
the company which enables the management to take effective decisions for the business and
develops the business for long term. The company needs to adopt strategic information system
which will enable the business to gain a competitive edge in the market as information system
has many advantages for the operation of the business. Information system like ERP, which is a
database, helps the organisation to manage all the information of the company and take strategic
decisions for the betterment of the business and improve the efficiency of the business.
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Q1. Compare and contrast the issues and challenges that face strategic information systems
planners.
All business enterprise develops their own strategic information systems so that they can take
business initiatives in most effective and systematic manner. Initiatives supported by information
system provide the huge competitive advantage to a company because it helps in delivering
products or services at very low cost and which can focus on a specific market segment. Apart
from this, it is also considered as the essential salient feature of information technology. By
taking help of this concept, the business enterprise can easily create, receive, process and transfer
its important information regarding the workplace. Also, it assists the organisation in identifying
future growth opportunities and ways by which it can improve its business efficiency as well as
effectiveness (Vaish, 2016).
BHP Billiton is an Australian Company which deals in mining resources and was formed in the
year 2001 by merging of 2 companies. There is the huge need for the strategic information
system in the mining field because it helps in creating and delivering significant information in
safe and secure manner. For becoming number one market player, an organisation should have
appropriate SIS so that it can attain its desired results in an effective manner. There are various
strategic information systems such as AIS, ERP etc. which can help a company in improving its
current business performance. BHP Billiton is a company dealing in resources, wants to develop
ERP system. Basically, it is business process management software which helps the organisation
in managing back-office functions which are associated with services, human resources, and
technology. In other words, ERP is that enterprise application which is designed by the company
to manage its various business activities and practices. BHP Billiton is the public company and
its ownership, operations, and funding is controlled by the government (Altameem, et. al., 2014).
There are various issues and challenges which are faced by strategic information system planners
and these are followed as under:
Lack of knowledge: While developing new strategic information system plans, planners
should have enough knowledge, skills, and abilities to execute those plans. Insufficient
knowledge strategic information system planners can put organisation into huge financial
crises. So, it is highly important for BHP Billiton to provide enough knowledge to its
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strategic information system planners so that they can take most effective and successful
decisions.
Lack of resources: For developing new information system like ERP organisation
requires the huge amount of technical, human and financial resources. Without them, SIS
planners cannot implement new plans within a workplace. The organisation with an
appropriate amount of resources can implement strategic information system within its
workplace.
Trust and security: While developing new SIS, the public company has to maintain trust
and security of its customers so that their personal information should remain private
between a company and its customers.
Time and cost: It is not an easy task to develop new strategic information system within
a single day. For this, the organisation requires lots of money as well as capital which are
the biggest issue with strategic information system planners (Whittington, 2014).
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Q2. Critically evaluate whether or not an IS Strategy may help an organisation to achieve a
competitive advantage. If an IS Strategy can help an organisation achieve a competitive
advantage – how might an organisation sustain such as advantage?
The most difficult task for an organisation is to achieve the competitive advantage in a
marketplace. Basically, it is that product’s or service’s value of the organisation, to which
customer gives more importance as compared to the similar offering from their competitors. In
simple words, competitive advantage is that some unique products, services or capabilities of a
company which its rivalry do not have. Market competitors always seek for those ways by which
they can duplicate the competitive advantage. So, it is highly important for the business
enterprise to develop some new processes, strategies, concepts, products, and services so that it
can maintain its competitive advantage within the marketplace. ‘’IS strategy’’ helps the business
enterprise in utilising information systems and technology in a most effective manner so that
organisation can execute its all business plans (Njihia and Mwirigi, 2014).
BHP Billiton wants to develop new strategic information system namely ERP for managing its
different business functions so that it can provide high-quality products or services to its
customers. Effective functioning can help the organisation in attaining competitive advantage as
well. Enterprise resource planning is considered as the most preferred solution and also replaced
by many of legacy systems. ERP assist a company in utilising available resources in most
effective and systematic manner so that they can be used in future. There are various
organisations which invest a huge amount in their ERP solutions without taking consultants and
suggestions; this can put a company in huge business threat. So, it is highly important for a
company to analyse each and every aspect which is related with ERP and then finally make the
investment decision (Altamony, et. al., 2012).
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