Strategic Information Systems: Challenges and Opportunities

Explore the challenges faced by strategic information systems planners at Qantas Airways, the role of IS strategy in achieving competitive advantage, innovative approaches, outsourcing management, and the value of strategic IS. Discover the significance of good internal control in a complex business world.

Strategic information systems: Assignment 2
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Table of Contents
Introduction......................................................................................................................................3
Overview of the company................................................................................................................4
1. Compare and contrast the issues and challenges that face strategic information systems
planners........................................................................................................................................5
2. 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 an advantage?..........................................7
3. What approaches could an organisation adopt when attempting to develop innovative uses
of strategic IS?.............................................................................................................................9
4. Choose either Outsourcing or End User Computing, as a strategic option. Critically
discuss how the Director of IT/IS the chosen organisation would manage the strategic option
you have chosen.........................................................................................................................11
5. Evaluate the statement that: Strategic Information Systems can add business value to an
organization through IT/IS. Your answer should include relevant case evidence that supports
your arguments..........................................................................................................................12
6. Critically discuss what constitutes having a ‘good’ internal control in a contemporary and
complex business world.............................................................................................................14
Conclusion.....................................................................................................................................16
References......................................................................................................................................17
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Introduction
In the present era, every organization uses the communication and information technologies in
order to maintain the efficiency and effectiveness of managing the operations of the organization.
It will help the managers of the company to make the better decision in the decision-making
process accomplishing the advantages of the competitors. The Strategic information systems can
be described as the information system that is developed and introduced in order to make the
response to handling and corporate the business initiative. It is developed for the future purpose
in order to give the competitive advantages to the organization. The report focuses on the
strategic information system with the context of the Qantas Company which is an airlines
company. The report discusses the various challenges and the issues that are faced by the
strategic information system planners. The report is detailing the process of selecting the
information system that will help the company in developing the effective decisions for investing
in the information system that will the planners to take it to another level.
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Overview of the company
Qantas Airways is the flag carrier company in Australia that is established in 1920. The
Company grow its business within the international and as well as the domestic airlines. It is
widely known as the whole world’s long-distance airlines and considered as the strongest brands
of the Australia that provide unique services and products. It built its own reputation in the field
of the safety, excellence, engineering, maintenance, customer services and operational reliability.
The main business of the Qantas Airways is to make available the transport system for the
domestic and as well as the international community. It operates its business by making ventures
with another airline and businesses.
The brand of the Qantas Airways is operated within the international, domestic and regional
market. The subsidiary business of the Qantas Airways is ranged from the Qantas Freight
Enterprises to Qantas Frequent Flyer (Qantas Airways Limited, 2018).
The total number of employees who are working in the Qantas Airways is approx. 30000 people
in which 93 percent people are lived in Australia, so it provides employment opportunities to the
community of the country.
[Source: Heathrow Airport Limited, 2017]
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1. Compare and contrast the issues and challenges that face strategic
information systems planners.
There is more competitiveness within the business market that is based on the effective
implementation of the information and technological systems. The aim of the information system
is to provide the useful and right information and data to the right person at the right person. The
strategic information system is used to track manipulate, store and fragmented the information in
order to gather the information to the appropriate persons at the time of it is needed
(Muhsinzoda, 2015).
Sometimes the organization feels difficult to implement the strategic information systems and
have to face the various challenges and the issues. The issues and challenges faced by the
strategic information system planners in private sectors are as follows:
Over-optimism: In the Private sector the strategic information system planner accepts more at
the time of implementing the strategic information system. It is known as the hockey stick of the
forecasts. The results are derived from over optimising is that underestimating the technical
challenges at the time of the accomplishing the large infrastructure projects (Lovallo & Sibony,
2016).
Loss Aversion: The private sector is owned by the individual so it has to face the financial
issues. The loss of the aversion will lead to the inaction in the face of accepting the risks. The
potential results that are analysed are that the planners have to face the scarcity of the
investments proposals.
Overconfidence: The strategic information systems planners have to face the issues of the
overconfidence that will result in the underestimation of the challenges. The planners have to
deal with the understating the risk of the large achievement (Reddy, 2016).
The issues and challenges faced by the strategic information system planners in public
sectors are as follows:
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Resources allocation: In the public sector organization the resources are available is tangible
resources that may include the money and intangible resources such as a power of the public
(Tax collection, environmental protection, law enforcement and so on). The planner of the public
sector has to face the strategic implications exist that include the highly public Microsoft anti-
trust threatening that enforced to develop and reformation the organization. The public sector has
to face the short-term financial issue that contributes to the annual budget cycle.
Value generation: With the public sector the value is calculated in terms of the production of
the products and services that will have the great impact over the socio-economic and lead to
issues that will affect the society at large. The value generation is related to the complex
environment of the web of the stakeholders that will raise the conflicts of the taxpayers and the
welfare recipients (Vaish, 2016).
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2. 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 an advantage?
The IS Strategy can be explained as the planning document that will discuss the way in which
technology and information system can be utilized as the part of the strategy of the business that
is designed for the purpose of supporting the overall business plan. The Qantas Airways
Company adopts the Teradata-powered corporate data warehouse that will support the
organization in the general ledger, account receivable and data payable in the data through using
its Oracle finance system. It will use this system in the data warehouse that will provide
opportunities to make the better decision.
The Qantas Airways adopt the Qantas Airways that will help the company in accomplishing the
organizational competitive advantage. The strategy has been considered as the business
buzzword. It will allow the Qantas Airways to deliver the services and product at the lower cost
through focusing on the market segment and the innovative of the product and services. The
information system strategy will help the Qantas Airways to store, categorize, transfer and
process the information that is shared by the company. It provides lots of tools that are having
the special features and uniqueness through applying the analytical tools for the information
repositories. It will allow the company to recognize the opportunities for the growth and different
ways for improving the operational efficiency (Gluckm, et. al., 2014).
There are following areas in which the Qantas Airways accomplish the competitive
advantage that is as follows:
Deliver a product or a service at a lower cost: The Qantas Airways can able to provide and
deliver the products and services at the low price. The cost of the products and services is related
to the quality of the products and services that will attract the marketplace and sufficient return
on the investment. The cost of the company will cover the corporate activities in order to deliver
the products and services. The company is having the various internal cost savings and other
internal advantages that will provide the better competitive position in the marketplace.
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Deliver a product or service that is differentiated: Product differentiation can be explained as
the uniqueness of the services and the product that will consider as the competitiveness in the
marketplace. Rarely the lowest cost products will differentiate the product of the company from
other companies. Information system strategy will focus on the customers.
Focus on a specific market segment: The Qantas Airways can able to identify and create the
niche market that will provide competitive advantages. It will provide the capabilities of
expanding, filling and defining the capabilities the specific segment. For example, the Qantas
Airways is famous and strongest airways brand of Australia and its advantage is that its focus on
the specific part that provides air transport on the lowest cost (Next Media Pty Ltd., 2018).
Innovation: The IS strategy will help the Qantas Airways to develop the unique products and
services by choosing from the available offerings. These innovative approaches will help in
enabling the company with the new approaches in order to influence and attract the customers.
The IS strategy will make the product more innovative and attractive that make the company
sustain in the market environment.
The Qantas Airways adopts the IS strategy that helps the company in accomplishing the
competitive advantages. The company can maintain this competitive advantage through openly
communicate with the stakeholders and the customers. The company needs to update its system
according to the changes in the technologies. It also needs to establish the clear sense of direction
(Entrepreneur Staff, 2018).
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3. What approaches could an organisation adopt when attempting to develop
innovative uses of strategic IS?
The Qantas Airways accomplishing the competitive advantages but besides that, it reduces the
costs, enhances the condition of the productivity and remains the competitiveness of the global
market. The information system will help the organization to gain the competitive advantages
and productivity. But in the modern era, the business needs to require more skills in the technical
field and strategy in order to sustain in the market because with the increase in the competitive
market the company have to face and deal with more competitors.
The Qantas Airways also needs and require information system strategies in order to manage and
operate the information based tools. The company adopts the ERP system to remain competitive
globally. Enterprise Resource Planning (ERP) is considered as the integrated management core
processes of the business management. It is related to the real-time and mediated software and
technology (Oracle net suits, 2018).
The ERP software is adopted by the Qantas Airways that will help the company in building up to
collect and assemble the data from the various department of the organization. It will connect the
business activities with the different departments. It will support the organization to automate
and standardize the process of the business through improving its efficiency of the operations of
the organization. The company will be benefited through saving the cost and time by managing
the process of the business. It is considered as the performance indicator for the company.
The ERP software will help in providing the hands-on experience in order to utilize the SAP
ERP, within the software world. The Qantas Airways needs to realize the importance of the
Qantas Airways in order to outgrow its system of business especially with the relation of the
disparate applications in order to collect over the period of time. The ERP system will help in
integrating the work (Hashim, 2016).
The ERP software will offer the Qantas Airways to synchronise the degree of automation and
reporting. It will help in maintaining the separate database by merging another report. The order
management departments of the Qantas Airways can process quickly and accurately. The finance
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departments of the Qantas Airways can able to make effective and accurate accounts. The
employees of the Qantas Airways will able to quickly understand the performance of the
business within the key metrics. The ERP software will help the employees in breaking down
the barriers between the different business units (Rouse, 2018).
The ERP software will give the real-time view of the data and global that will enable the
companies to consider the drive improvements and protectively. It will improve the financial
compliances by maintaining the regulatory standard and reducing the risks. The ERP software
will enable the airline's company to operate its business such as fulfilment of the orders and
procure to pay process. It will allow the company to enhances its customer services through
providing the services of relationship tracking and billing.
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4. Choose either Outsourcing or End User Computing, as a strategic option.
Critically discuss how the Director of IT/IS the chosen organisation would manage
the strategic option you have chosen.
For this task, the outsourcing is chosen as a strategic option. The outsourcing can be explained as
the agreements and contract on which one organization make the contract on the basis of the
existing internal activities with the other one. The company adopts the outsourcing for focusing
on the core process of the business. The outsourcing provides various advantages such as
timeliness, cost-effective, change within the operations and so on (Bucki, 2017).
The director of the IS of Qantas Airways effectively managing the outsourcing by focusing on
the following aspects:
Information system: The relationships of the outsourcing is depended upon the sharing of the
information when there is limited face to face communications. The Qantas Airways needs to
share its schedules of the project, design documents, requirement specifications and the
contracts. For making contracts regular face to face communication is important in order to build
up and sustain the trust (Flatworld Solutions Pvt. Ltd., 2018).
Due diligence: The process of effective management starts with the due diligence of the potential
outsourcing partners. This will depend on the complexities of the functions of the outsourced.
Due to the due diligence, the company is able to inspect the facilities and interviewing the key
personnel. It may offer the financial stability.
Task Definition: The director of the IS departments develop the outsourcing relationships that
are based on the accomplishing of the tasks. For example, the Qantas Airways needs to respond
the call at the regular period and satisfying the customer's demand. It needs to make the
specifications and technical changes in order to implement the process (Basu, 2018).
Training: The director of the Qantas Airways needs to provide the effective training to the
employees who are working over there. It may include the in-house training programs.
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5. Evaluate the statement that: Strategic Information Systems can add business
value to an organization through IT/IS. Your answer should include relevant case
evidence that supports your arguments.
The organizations strive to become the leaders of the market in their industry. Many of the
industries like Qantas leads to the competitive advantages which are important for the
organization. The information system is one of the strategies which get adopted by the company.
Information system and technology help the business in using the adequate data, and in reducing
the workload. It also assists the compliance with various regulations which are mandatory.
As per Financial review (2015), Qantas has invested in Yield management system which is
significant in technological improvement. This enables the enhancement of cloud computing
infrastructure. Other than that, Seat Pricing system is also considered by the company to analyse
various variables for every single purchase of a ticket. This is helpful for checking of ticket
availability for a future journey.
In the words of Taylor, et. al. (2017), many of the organizations do not manage their
information’s and data manually with the use of copy, formats, registers and etc. By the
adoptions of an information system, Qantas uses the comprehensive and sophisticated database
which contains the imaginable pieces of data related to the business. The store of information’s
system mainly updates and analyses the information’s that can get used for the pinpoint solutions
to future and current issues. This system also integrates the data from different sources from
outside and inside of the organizations. It helps in keeping the records or the information’s up to
date with external threats, opportunities and internal performances as well. The long-term
success of the business depends upon the adequacy of the information’s systems.
The management team of the organization uses the information system for formulating the plans
which are strategic in a different manner. It also makes the decisions which are good for the
prosperity and longevity of the Qantas. The organizations use the information’s system for
evaluating all the sources of the information (Taylor, et. al., 2017). It basically includes the
information from many of the external references like Bloomberg and Reuters which provides
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the information related to the general economy. The information system also helps the
organizations in analysing the quality and adequacy of the business.
According to Moran, et. al. (2017), information system helps the organizations in developing a
higher range of value-added systems. For example- an organization can integrate the information
systems with the help of manufacturing cycle and ensures that the output produces complies the
requirements. It basically includes the different qualities of the management standards. It
simplifies the processes of business and also removes the unnecessary activities. Information
system mainly aids control the employee processes that only the users with the applicable and
legal rights have the permission to perform the tasks in Qantas. In the Qantas, information
technology and information system eliminate all the tasks which are repetitive and helps in
increasing the accuracy by allowing the employees to concentrates on the high-level functions.
Information technology and information system lead to the implementation of effective
monitoring and the comparison against the established criteria. The organizations should have
the leadership for assessing the adequacy of all the decisions in order to have a guide and
information system by which weigh information and phase of transition cost get the benefits
which are potential. Information technology and information system increase the effectiveness
and efficiency of the organizations (Moran, et. al., 2017).
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6. Critically discuss what constitutes having a ‘good’ internal control in a
contemporary and complex business world.
Internal control can be considered as checking the balances to reduce losses and errors in
different business areas. A good control on inventory prevents the misstatements by helping the
different inventory levels of the management. It also helps in the different business contexts
which are quite complex and contemporary. According to Vovchenko, et. al. (2017), the
management of the organizations can take the better decisions about the sales and inventory
because the data which it receives is relevant and real as well. A manager can decide to cancel all
the orders and to return the shipment because of the unavailable documentation. The other
savings in the internal control relates to taking the benefits and the discounts as the process of
payment relate to the inventory (Vovchenko, et. al., 2017).
By creating the internal controls, owners of the Qantas establish the procedures and protocols to
their consultants and staff. The owners of the Qantas inform all their employees about these
protocols and also expect from them that they will follow them in performing their day-to-day
responsibilities and activities. According to William, et. al. (2016), the internal control helps in
maintaining the good behaviour in the Qantas so that the association can bring cohesiveness and
orders to establish the protocols. Establishing the internal controls helps organizations to reduce
and prevent theft and fraud within their associations.
It includes various activities like reconciliation of the bank statements and reviewing the internal
audits. Internal controls work for making sure that the employees are working perfectly in
Qantas. It also helps the small business in organizing and increasing the productivity of their
products and services. It maintains the reputation of the staff with the integrity and honesty as
well (William, et. al., 2016). Internal control helps organizations in reducing errors that help
them in saving their money and also for protecting their reputation in the market.
According to Lin, et. al. (2014), by training the employees on procedures and processes,
updating them with all the new ways and information’s mistakes can get reduce. Training also
includes the uses of internal programs or the ways of learning with the new processes of work
which actually exists between the different departments. An internal control helps the
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organization in building the goal of profitability by the processes. The internal control
approaches the incorporate goals and all the strategies in order to reach the top. Internal control
includes the activities of day to day specifications and outputs. It defines the process of
management with other personnel by providing reasonable assurance which is related to the
achievement of the objectives in different categories. By all the different managers of Qantas,
internal control has been defined in auditing and accounting and also the procedure for assuring
all the achievements of the organization. It works for completing the objectives in the efficiency
and effectiveness of operational management (Lin, et. al., 2014). It relies upon the financial
reporting and all the compliances with regulations, laws, and policies as well. Internal control
helps the organizations in running effectively by reducing the risks and accomplishing their goals
and profits. It maintains the standard of the organization so that organization can achieve all their
objectives in a positive manner.
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Conclusion
From the above, it is concluded that for an organization the development of the strategic
information is the part and plays a very crucial role. It will support in creating the portfolio
which is based upon the effect using the information system that will help in accomplishing the
vision and aims of the organizations. In the report, it has been analysed that within the global
marketplace the information system has been developed with the enablers of the new competitors
and the various agents. It wills change effectively and contribute to the role of the technology
and the information. The strategic information system planning will help in making the
relationship with the development database within the organization. Through using the ERP and
AIS system the organization can clearly define its objectives and the goals. The article discusses
the importance of the ERP system and its relationship with the database development of the
organization.
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