Integrating information systems with organisational strategy
Added on 2021-02-19
21 Pages7197 Words455 Views
STRATEGICMANAGEMENTINFORMATION SYSTEMS
TABLE OF CONTENTSINTRODUCTION......................................................................................................................3ACTIVITY 1..............................................................................................................................41.1Link between information systems and organisational strategy.......................................41.2Frameworks for integrating information systems with organisational strategy and analyse the benefits of this approach......................................................................................5ACTIVITY 2..............................................................................................................................72.1 Tools which can be used to analyse organisational strategy............................................72.2 Organization’s strategy.....................................................................................................82.3 Assess the extent to which information systems are integrated within the strategy of thechosen organisation................................................................................................................9ACTIVITY 3............................................................................................................................113.1 Recommendations regarding the information system....................................................113.2 Evaluating the Information system strategy which helps in achieving the organizationalstrategies...............................................................................................................................12ACTIVITY 4............................................................................................................................144.1 A plan for the implementation of the information system strategy which consists of the stated priorities, costs and benefits of such strategy............................................................144.2 Determining the associated risk with the planned implementation................................15CONCLUSION........................................................................................................................16REFERENCES.........................................................................................................................18
INTRODUCTIONToday most of the businesses are using information systems within their organizations. Theseinformation systems are used by organizations to process, create, distribute, filter and manageinformation or data within an organization. Strategic management information system is akind of information system that is developed by organizations in response to corporatebusiness initiatives (Laudon and Laudon, 2016). It is mostly used by organizations to gaincompetitive advantage within the market they are operating in. It also helps the organizationsto bring innovation within their organization as well. Other than this, strategic managementinformation systems are used to deliver products or services of an organization atdifferentiated quality & at lower price as compared to their competitors as per the demand ofthe markets they operate in. It is one of the best feature or systems that most of theorganizations prefer for transferring, creating, modifying and developing information or datawithin their organization. Strategic MIS not only help the organizations to use, transfer andmaintain information within their organization, gain competitive advantages but it also helpsorganizations to develop their business strategy in such a way that they can sustain theircompetitive edge. Organizations using information system easily achieve and fulfilchallenging requirements and continue to develop in the competitive environment. It hasbecome one of the most necessary part of an organization which helps them in their growthand expansion. Organizations that uses strategic management information system can easilybring changes within their business strategies as per the changing market requirements (Orna,2017). This report is based on Troy Yachts, which is an India based organization which wasfounded in the 1990’s and builds specialised equipment for sea going Yachts. As an intern atthis organisation, I got an opportunity to delve deep into the subject. This report will layemphasis on links between information system and organizational strategy, frameworks forintegrating information systems with organizational strategies, tools used to the analyseorganizational strategies, evaluation of Troy Yachts using strategy analysis tools, assessmentof information system and integration of these systems with organizational strategies,information system options based on analysis of chosen organizations strategy and plan forthe implementation of an information systems strategy which considers the priorities, benefitsand costs of the strategy.
ACTIVITY 1Link between information systems and organisational strategyInformation system (IS) and organizational strategy are directly linked and related to eachother. Information system helps in building organizational strategy such that business canachieve their targeted goals and objectives. IS helps in taking the right decisions, helps inbuilding relationships and structure and informal network. Many companies who uses ISbuild their organizational design and structure in such a way that the IS becomes a part oforganizational culture and management control system as it helps in data collection, planning,evaluation, performance measurement, rewards, incentives and many more. Businesses alsoneed to continuously update their organizational structure in order to facilitate informationflow by developing IS and delivering its services (Seidler, 2019). IS system’s main use withinthe organization is to provide information such that management can take required decisionsin order to keep the organization working. It is important because decision making is one ofthe most important part of an organization which is used in each and every part of anorganization. It helps the management of an organization to build organizational strategies sothe planning, controlling, managing and directing activities of an organization can bemanaged smoothly. It also helps the organizations in maintaining and accepting the changingrequirements of the users or customers. Not only this, visa versa as well i.e. organizationalstrategy is extremely important for businesses to plan their information systems so that it canfurther support relevant information to the organization. Maintenance of this relationshipbetween information system and organizational strategy is a continuous process which helpsthe IS to support business structure and remain relevant to the strategic objectives and goalsof an organization. In other words, with the help of IS an accurate business strategy can be build which furtherhelps an organization to gain competitive advantage. But this can only happen if the IS isused properly meaning information generated by such systems is used properly to takenecessary decisions. Operability of such IS systems is as per the requirements of anorganization, its goals and objectives (Ibrahim, Musa and Leng, 2018). Usage of informationsystem depends upon the environment in which the business is run, its functions, resourcesused and overall customer base of the company. Based on all the above factors, usage ofinformation system is decided so that it can be used accurately and can support organizationalstructure, objectives and goals. If the link between IS and organizational structure is accuratethen it helps the organization in reducing its overall cost, repetitive work, human errors,
produces interconnected information flow, contributes towards provision and usage of correctinformation for decision making, supporting all business processes. Other than this it alsohelps in making necessary predictions that can be used to bring changes in requiredorganizational strategy. Overall management of an organization can also be improved andinterconnectivity among business operations can also be brought with the correct usage ofinformation system. This accurate linkage also helps in better management and gaincompetitive advantage for the business. Frameworks for integrating information systems with organisational strategy and analyse thebenefits of this approachMost of the organizations rely on effective use of information system in order to remaincompetitive and compete with their competitors. Not only organization but employees andmanagement of an organization also rely on information systems in order to complete theirdaily activities. This helps the companies to increase their productivity and save overall cost(Ahmadi, Nilashi and Ibrahim, 2015). It has been observed that more an organization grows,more they purchase and use information system. For this organizations need to integrateinformation system and organizational strategies and for this they need to develop aframework. There are various kinds of frameworks that are used for integrating informationsystem with the organizational strategies. These not only help the organizations to integratetheir strategy with the information systems they use but it also helps in increasing the overallsecurity of the system and the data which is produced by them. Many organizations developtheir own framework in order to integrate their IS systems and strategies all together. It hasalso been observed that these frameworks also help in addressing any kind of technical ornon-technical issue that arises within the IS system, organization or their internal/externalenvironment. These frameworks also assure that all the operations, strategies and informationsystems are used in an effective and efficient manner such that organization’s overallprocesses, objectives, productions and other things of business importance are being fulfilled.One of the most commonly used frameworks is business process framework. Businessprocess framework is one of the most common framework that is being used by theorganizations that provide services to their customers. This framework assures thesegregation and integration of information system according to the business needs in order tofulfil business objectives. It also helps in forming a blueprint to enable successfultransformation of business. It is multi-layered framework that helps in running a businessefficiently. It is also known as ETOM framework as well. This framework helps the
organizations to increase the strategic use of information systems within an organization sothat business strategy can be developed (Arms, 2015). This framework consists of variousinformation system opportunities which helps in development of organizationalmethodologies and strategies for the development of the business. Other than this, thisframework also helps in enterprise management, other business operations and helps inimproving all products and services offered by the organization. There are various benefits ofthis framework such as: it helps in integration of all the information systems used by theorganizations according to their use, it supports both customer facing activities and supplierfacing activities. Other than this it helps in product life cycle management, infrastructure lifecycle management, operational and resource management, customer relationshipmanagement and various others. It also helps an organization in bringing improvement inexisting processes and systems. The business process framework helps in creating andmaintaining high quality end to end process which further helps in eliminating duplication ofany system. It also helps in integrating information systems used within an organization andbusiness strategies which provide organizations with competitive advantages and helps inreducing risks associated with it. Another commonly used framework is supply chainmanagement framework. It is quite a complex framework because it encompasses flow ofdifferent activities, functions, components, role players etc. this framework is import fororganizations in order to achieve competitive advantage. It helps in analysing how theprocesses are implemented by corporations in order to create maximum value chain for theirshareholders, customers, suppliers and other shareholders as well. There are variouscompanies that uses this framework as it makes many other organizational processes muchmore easier like customer relationship management, supplier relationship management,customer service management, demand management, order fulfilment, manufacturing flowmanagement, return management and various others. Benefits of integrating the information systems and organizational strategyThere are various benefits of integrating organizational strategy and informationsystem such as: information system helps in delivering strategically important informationwithin the organization, which helps them to attain strategic goals. It also helps in providingreal time data required to make organizational strategy according to the competitive market.The real time data provided by the integrated information system is quite accurate whichreduces the chances of human error and helps in bringing changes within organizationalstrategy or helps in obtaining organizational strategic goals. With the data or information
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