Strategic Information Management and its Challenges

This assignment examines the multifaceted realm of strategic information management, focusing on the inherent challenges organizations face in effectively managing their information systems. It delves into various aspects such as the characteristics of successful strategic information management, the importance of aligning information technology with business strategy, and the impact of emerging trends like Enterprise Resource Planning (ERP) on organizational performance. The assignment encourages critical analysis of relevant literature and real-world examples to provide a comprehensive understanding of this crucial field.

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Strategic Information System
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Contents
Introduction.................................................................................................................................................3
Issues tackled by the SIS (strategic information system) planners...............................................................3
Critical evaluation of the aids of IS in attaining competitive advantage......................................................5
Models adopted by BC transit for innovatively using the information system (IS).....................................7
Managing for outsourcing...........................................................................................................................8
IS system adds value to the business corporation........................................................................................9
Internal control strategy.............................................................................................................................10
Conclusion.................................................................................................................................................11
References.................................................................................................................................................12

Strategic Information System
Introduction
A salient feature in the sector of information technology is the strategic information system. In
simpler terms, the mechanisms and the methodologies that can be adopted by the business entity
for bringing improvements and advancements in the business process can be termed as the
process of SIS (strategic information system. This system can be developed by forming a well-
blended mixture of the business technologies and strategic planning (Cassidy, 2016). This is a
contemporary means of a management system that will bring modifications to the organizational
structure and further the mechanism will also assist then business firm in developing and
implementing better plans and attainments of the desired goals is also made possible. On the
basis of the research, it has been analyzed that 1980 was the era when the system was introduced.
It was also observed that after the emergence of the concepts of modernization and globalization
the system also gained more significance. This mechanism has been designed from the initiatives
of the business entity that are made for attaining a sustainable position and also competitive
advantage will be accomplished. The system is made engaged in the varied range of operations
and that is required to be executed with efficiency within the business firm (Cecez-Kecmanovic
et al., 2014). The system enables the entity to develop segmentation in the various functions such
as the transformation of data in outputs, managing and maintaining inventory etc. The below-
summarized assignment is made focused on the strategic information system that can be utilized
for developing operations within a public transportation service provider. The report is basically
focusing on BC transit that is a provincial crown corporation. The business entity is held
responsible in for coordinating the delivery of services of public transportation within the regions
of British Columbia, Canada, outside Greater Vancouver. The business entity executes overall
planning and delivery of the of all the different municipal transit systems in British Columbia.
Issues tackled by the SIS (strategic information system) planners
The information utilized by the stakeholders for making a movement of the business corporation
towards the heights of success and growth is known as the process of strategic planning. This
planning can also be termed as the outline or the roadmap that aids the business corporation in
the accomplishments of the desired goals and targets (Chofreh et al., 2014). The system offers
the varied range of supportive tools and mechanisms that can be applied by the business firm to

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their information repositories and also allows in recognizing and grabbing opportunities for
growth. Corporate strategic planning should aim towards surfacing the issues faced in the
process of strategic planning, and these issues are also fundamental to the process of the strategic
planning. Identifying or addressing the key issues that will be dealt with the strategic planning.
The below mentioned are some of the issues that can be faced by the strategic planners of BC
transit:
Engagement: One of the key issues that can be faced by the strategic planners of BC transit. is
making the involvement of the right people in the planning process (Costa et al., 2016). The
planning process is the managerial level operations and are require to be executed with
effectiveness and efficiency. And hence, the team of the strategic planners is required to be of
skilled and potential individuals. This will enable the business firm to develop better and
improved plans that will lead the enmity towards success and growth. And also the firm will be
making the accomplishments of the desired goals and targets with an ease.
Lack of leadership: Another aspect that can be considered as a significant reason behind the
failure of the information system is the lack of support of the authorities or of the top
management. A smooth and friendly environment will be developed if the leaders in the firm are
providing support to the planning team and this support should be in all the terms at all levels.
And hence the leaders are considered to have a vital role in the process of strategic planning
(Eden, Sedera, and Tan, 2014). The leaders are held liable for each and every decision and
hence play a crucial role in the process of strategic planning. The leaders are expected to be
present and involved at the right time with the right people, this will make their process of
decision making more effective and efficient. The team members that are engaged in the process
of strategic planning are also known as strategic thinkers. There are some of the integral
components that provide guidance to the process of strategic thinking. Vision, mission, and
values the best examples of these guides that aid the strategic thinkers with a track for attaining
goals. The resultant alignment and strategic thinking of the actions can play a role of a perfect
antidote and that too with a clear vision of future. This will lead the business firm to have a set of
predictable environmental changes that will be aiding the business firm in depression the details
of strategic plans.

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Issues with execution: The execution process of the plans established and developed can be
considered as one of the biggest issues that can be faced by BC transit. Putting the plan to work
is the main operation to be carried out in the right place ((Galliers and Leidner, 2014). The ideal
thinking of the strategic planners or the team is that the efforts and attention are to be made till
the development of the plan and after that, the process is expected to be completed. The team
thinks that their work is through. But the reality is different; in reality, the core or the main
operations are to be executed after the implementation process. Making accomplishments and
attainments after the process of implementation is the actual objectives of the plan and that
should be done in an effective manner by the strategic planners.
Lack of agreement: If the implementation process of the plan has been executed with serious
effects then the business entity may expect the development of commanding product within the
market. And hence the process of strategic planning has been considered as one of the most vital
components of the planning process (Hunton, McEwen and Wier, 2015). Building an agreement
is also concerned as one of the significant aspects of the process of strategic planning.
Appropriate communication, collaboration, and enhancement in the participation of the
employees will be executed if the planning process is properly executed. The process also offers
assistance in various crucial operations such as revealing and getting aware of any of the issues,
struggle made with the governing authorities and the political environment. Moreover, in real
terms, the term consensus has been made engaged in the process of resolving the unrealistic
issues with the stakeholders and increasing the engagements of the individuals by interviewing
them, by making use of focus groups. These all operations are considered as time-consuming.
There is also a probability that the employees may interest in details offered and also feel
unheard.
Critical evaluation of the aids of IS in attaining competitive advantage
Due to the intensification of the competitive environment, it has become very much crucial for
any of the business entity to earn a position of competitive advantage and sustainability. And that
can be gained by making implementation of various approaches and models. Competitive
advantage has been considered as one of the most empirical factors that will aid BC transit. in
sustaining in the market Kurbel, 2016). Moreover, the further analysis has been presented for

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critically evaluating the benefits earned by the information system for the attainment of the
competitive advantage:
In simpler terms, a position of competitive advantage means the business entity is having a set of
resources that are unavailable or cannot be accessed by others and the entity is also able to use
the available resources in the more effective sense (Laudon and Laudon, 2013). Moreover, a
position of competitive advantage also leads the business entity with the number of other benefits
such as generation of the higher rate of revenues will be done, that will lead in an increase in
profitability and that depicts a higher level of efficiency. There are varied ranges of approaches
that can be adopted by BC transit and that will prove beneficial and effective. One of the best
examples of such a model is Michael Porter’s competitive forces model. This theory will be
aiding the business entity in offering a description of the competitive forces that will mold the
future of the enterprise. The below mentioned are the prime aspects of the theory:
 Traditional competitors: The firms that are old players or are executing business in the
market since from a long duration.
 New market entrants: The business ventures that are new to the market have various
exemptions and advantages in terms of high motivation level and can make limitless use
of equipments. Apart from the advantages, there are some disadvantages that can be
experienced by the entity (Sarker, Xiao & Beaulieu, 2013). Such as the business ventures
will be having less brand recognition and also workforce will be less skilled. And due to
all these factors, the start-ups will have fewer obstacles while entering the market.
 Substitute for the products and services: The alternative or the similar products that
are available in the market and they can also be considered as the options that can be
chosen by the consumers over the brand if there is any kind of fluctuation in the product
or any of the aspect.
 Customers: This component has been considered as the king of the market. If the
consumers are making a switch over the brands to the competing one then rise in the
powers will be observed of the consumers (Laudon and Laudon, 2016). And also they
will be easily stimulating the business or the market.

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 Suppliers: Diversification in vendors that are available with the firm a will enable to
develop a greater sense of control over the various aspects. Such as the prices, quality and
distribution schedules will be improved.
Porter’s competitive forces model
The prime objective of the above-mentioned model is identifying the strategic position and the
strategies of the firm. The business entity will have to compete with the existing competitors but
also with the other vital players that are the start-ups, alternative options available in the market,
the customers and the vendors (Pearlson, Saunders and Galletta, 2016). The following forms are
some of the strategies that can be adopted by BC transit. for maintaining the competitive forces:
Low-cost leadership: According to this strategy, BC transit. will offer or enter the market by
quoting low prices for the products that will lead the entity for establishing the brand equity in
the marketplace. The mechanism of information system can be adopted by the business firm for
in order to bring advancements and thus attaining low cost in the operations (Hill, Jones, and
Schilling, 2014). For instance, the business entity can develop some contemporary means and
mechanisms in the supply chain management and delivery system so as to bring effectiveness.
This will increase the efficiency of receiving and delivery of the products. The customer
response system will also be developed for developing connections between the consumer
behavior and the distribution, production, and supply chain and due to which there will be a
decrease in the various expenses such as storage and distribution.
Product differentiation: Developing products with distinct characteristics or features will be
proven for the business entity. This will enhance the brand image of the firm and also the
marketing will have to make fewer efforts while promoting (Power, Sharda, and Burstein, 2015).
By implementing this strategy the business firm will be introducing new services and this will
enable the firm in bringing a change to the customer perception and convenience while
consuming the products and services.
Focus on market niche: In this strategy the will have to develop the focus on a specific market
segment and will also have to serve the target market in a better manner in comparison to the
competitors. A fine quality of operations will be developed due to this system and a support is
also offered to the strategy by the analysis of the data.

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Models adopted by BC transit for innovatively using the information system (IS)
The below presented are the approaches that can be implemented by the business firm for
advancing innovative uses of IS:
 Generating information for enhancing marketing: One of the biggest advantages served
by the adoption of the information system is the competitive edge over the competing
brands (Wu, Straub and Liang, 2015). And this will be done by generating information
and analyzing the same and as a result hike in the sales graph will be observed and also
an increase in the level of productivity will be experienced. The data available with the
firm will be the source to the system.
 Developing barriers to the new competing bands: On the basis of the research, it has
been concluded that the business entity should focus over the introduction of the products
that will be found tough to replicate (Alamri et al., 2016). And these products should also
be used in the highly specialized markets. And hence this will be considered as an
innovative use of information system.
 Locking in customers and suppliers: This option can also be considered as another
example, through which the innovative use of information system for a business firm will
be demonstrated (Kavanagh and Johnson, 2017). On the basis of the approach, BC transit
is required to offer set of such services that will create difficulties for the consumers and
the suppliers while thinking to switch over the competing brand.
Managing for outsourcing
BC transit. is required to focus on some of the integral areas that for managing the outsourcing
within the organization:
Management of expenses: Choosing the outsourcing as a strategic option is done due to the
excessive expenses incurred (Schwalbe, 2015). The outsourcing proves beneficial as it aids the
client and the service provides to earn good amount of profits and thus aids in managing the
costs.
Communication management: Having an advanced and appropriate mode and medium of
communication has been considered as a basic requirement for the success and growth of the

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business firm (Goetsch and Davis, 2014). There is number of operations are based on the process
of communication such as feedback from customers and clients etc.
Managing performance: After adopting the outsourcing option the performance is managed on
the basis of the quality of the project and time or the deadlines for the projects. A regular
monitoring should be done by the client in order to evaluate the quality of work (Cascio, 2018).
Scrutinizing the deadlines and meeting them should be done timely and reports can also be
demanded for the same.
Risk management: Analysis should be executed over the various aspects of this strategic option
that is the outsourcing process. This will enable the firm with the associated risks that will be
involved in the operations. Further, a backup plan should also be developed before signing the
contract.
Managing the relationships: A bond between the clients and the service provides has been
considered as one of the core components in the success and growth of the business (simply-
strategic-planning 2017). Maintaining effectiveness in the relationships by developing regular
communication and an appropriate level of transparency and flexibility will be proven beneficial
step for managing the outsourcing.
IS system adds value to the business corporation
Being market leader is one of the basic need for any of the business organization and for the
same, there are some components that are held liable for deterring this goal. And for tackling this
scenario BC transit. can make implementation of approaches that will aid the entity attaining
competitive advantage. The below presented are some of the roles that will determine that how
the IS system adds value to the business:
By providing assistance in decision making: Adequate and appropriate strategic plan defines
the success and growth of the business firm (Green 2017). The mechanism of information system
can be utilized by the managerial staff or and the other teams and that will lead the business firm
in the development of the decisions leading towards the high peaks of success and growth. Apart
from this the databases from all the sources can be evaluated by utilizing the information system.
The databases that can be evaluated comprise of the various external sources of information.

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Information storage analysis: No business firm manages or maintains the records or databases
manually, in the form of registers and hard copies, files and folders etc. The information system
will be proven as a beneficial option for BC transit. in managing the data and confidential data
related to the various aspects of the enterprise. Moreover, the system also aids in solving the
problems or conflicting situations by analyzing, storing and updating the databases. Integration is
of the information generated from the various sources is also done by utilizing these systems.
Moreover, the business corporation will also be aware of the organizational performance level
and external opportunities and threats faced.
Internal control strategy
The business practices adopted by the organization for ensuring the accomplishment of the pre-
determined goals and targets can be referred to the process of internal control. This process also
comprises of the identification of the use of the resources that is done by the entity in an
economic manner. Some of the other aspects that are safeguarded by this system are risk
management system, safekeeping the property of the client and also safeguarding the property in
an adequate manner (Pohjola 2018). And by analyzing all this it has been proven that the internal
control system has been seen as an essential requirement for any of the business entity. The
following are the elements of the good internal control system:
A high level of uprightness and ethical values and a sense of commitment should be possessed
by the management.
The varied range of approaches can be adopted by the business organization such as monthly
entity-level controls, inspecting and approving the supporting documentation and regular
checking of the same.
There are some prime procedures that can be executed by the managerial staff and authorities for
overwhelming the deficiency of isolation of responsibilities (Liebowitz and Frank, 2016).
Moreover, recommendations of scrutinizing the accounting mechanisms, reports, and inspections
and monitoring the documents for selected dealings and other supervising periodic counts is
done by COSO.

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Conclusion
In the limelight of the above-executed analysis, it has been inferred that by making
implementation of the varied range of approaches and contemporary mediums the business firm
can bring improvements to the functionalities. These fulfillments will lead the firm towards the
high peaks of success and growth. On the basis of the scenario, the selected sector is public
transport and BC transit. on which the assignment is made focused.

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