Strategic Information System in Energy Industry
Added on 2020-05-16
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Running head: STRATEGIC INFORMATION SYSTEM IN ENERGY INDUSTRYStrategic Information System in Energy IndustryName of the StudentName of the UniversityAuthor note
STRATEGIC INFORMATION SYSTEM IN ENERGY INDUSTRY1Executive Summary:The report here is devised to propose the implementation of the strategic information systemin the industries. The energy industry is taken into consideration to put forth the points andchallenges that are associated while planning the system. The deemed report also suggestsmethods by which the system can offer a competitive advantage to the considered industry. Adiscussion over the value that is offered by the IS to business has also been evaluated alongwith the features of a ‘good’ internal control. The report has been concluded by offering thepoints that should be kept in mind while designing the internal control system along with theauthor’s opinion of why the organisation should equip the deemed system.
STRATEGIC INFORMATION SYSTEM IN ENERGY INDUSTRY2Table of ContentsIntroduction:................................................................................................................................3Comparison and contrast on the challenge and issues faced by SIS planners:...........................3Management:...........................................................................................................................4Stakeholders:...........................................................................................................................4Technical:................................................................................................................................4Database:.................................................................................................................................5Environmental:........................................................................................................................5Time:.......................................................................................................................................5Assessing IS in Energy Industry for Competitive advantage:....................................................6Developing SIS for innovative implications:..............................................................................8End User computing:................................................................................................................11Approach AGL can adopt when developing the strategy for ERP use:....................................11Strategic Information Systems can add business value to an organisation through IT/IS:.......12‘Good’ internal control:............................................................................................................13Conclusion:...............................................................................................................................15References:................................................................................................................................16
STRATEGIC INFORMATION SYSTEM IN ENERGY INDUSTRY3Introduction:Information systems refer the processing systems that process the information throughsmart equipment (Like computers, network hardware, servers and others) to support andmanage organisational decisions (Laudon and Laudon 2016). IT should not be confused withthe IS, as the former is just a subcategory of the latter. IT deals only with the technology thatis operational in the system while IS itself is the system that includes the users and theprocesses as well. Hence, to cover a broader perspective, the report has taken consideration ofthe IS system, and the technology will be assessed based on the same.Strategic Information System (SIS) is a sub-category of the IS which takes theresponsibility of developing and offering a competitive advantage to the consideredorganisation (Arvidsson, Holmström and Lyytinen 2014). The report is developed to discussthe details about SIS from the benefits to the challenges in the energy industry. In the report,Enterprises Resource Planning (ERP) is suggested as the SIS system to be implemented in theorganisation. Competitive advantage and the additional value that the organisation will gainafter implementing the SIS’s are also discussed in the report. A potential solution for theimplementation of the SIS in the organisation with appropriate methodology is discussed inthe report as well. The report is concluded to offer an analysis of the internal control systemand its development method. Comparison and contrast on the challenge and issues faced by SIS planners:SISP (Strategic Information Strategy Planning) is a significant change in anorganisation. It is an essential activity done to assess strategic applications and to align thefirm’s strategy with efficient IS for achieving the firm’s goals and objectives. These changesdraft some challenges for the SIS planner which need to be tackled with before implementing
STRATEGIC INFORMATION SYSTEM IN ENERGY INDUSTRY4the system. As those challenges can lead to the failure of the project which is undesirable forany firm. The challenges associated with the SISP are discussed in the following section. Management:The most significant challenge in the SISP is the lack of commitment from themanagement. Their role is vital, and hence the planners have to convince them to for acommitted approach towards the implementation (Lederer 2013). However, the issuesassociated in the develop in convincing the senior officials as they may not believe in thesystem's capabilities and hence a waste of money and time. In the public sector industries lackof communication, poor coordination, responsibility sharing and the decision making are themost prominent issues associated with the management. Retirement/transfer of the officialscan also put a halt to the implementation.Stakeholders: Public sector firms are slow at decision-making which offers challenge to the plannersbecause deploying training modules may be time consuming and improper. This may result ina delayed deployment of the IS. The private industries are unable to employ the proper skillfor the implementation and operation of the system because of their limited funding.Additionally, the stakeholders who are not interested in automatic working (through thecomputer) are an even bigger threat to the process (Motro and Smets 2012). While the issuesare with the stakeholders and their lack of interest in computing operations that leads tofailure of the training module and hence resulting in a negative review of the system. Technical: Technical difficulties associated with the implementation of the system are the issuesregarding the hardware and software. Energy industry offers telecommunication barriers inthe installation of the SIS (Luthra et al. 2014). Energy industry equips heavy equipment
STRATEGIC INFORMATION SYSTEM IN ENERGY INDUSTRY5which derives the challenge of moving from the old systems to the new. On the other hand,cost of deploying the new equipment for the SIS implementation is the challenge offered forthe planners. The public sector industry can manage the cost issue however it is difficult forthe private energy industry. The maintaining the quality of the equipped technology is achallenge for the public sector industry (Samad and Kiliccote 2012). Database:An appropriate database is needed in every organisation is needed for datasafekeeping. However, those data can be processed to determine the need of the deemedorganisation. The above mentioned target can be achieved by statistically analysis the failedproject or the reports that are based on the conflicts within the organisation. The importanceof adopting the considered step is because not all the need of the organisation is known to themanagement. Some needs are hidden and hence these should be analysed manually. However,if an organisation don’t have an appropriate database it becomes challenging for the planners.It becomes difficult for the planners to collect data from different sources and plan the subjectaccordingly. While issues derived due to lack of database management is the time it consumesin the planning (Galliers and Leidner 2014).Environmental: The most crucial challenge that the planners face in implementing the consideredsystem is the remote location of the plant’s establishment (Leyh and Muschick 2013).Depending on the type of energy to be produced, the location of the industry varies, and allthe locations are away from the civilian areas. Additionally, environmental challenges includethe environment within the organisation. Organisational changes, culture, inadequatecapabilities behaviour and others are to be taken consideration of before planning. While theorganisational environmental matters if not appropriately handled may lead to conflicts andpolitical issues (Bryson 2018).
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