Strategic Management Information Systems

This report explores the link between information systems and organizational strategy, frameworks for integration, tools for analysis, and the organizational strategy of Alloy Yachts. It also discusses the benefits of integrating information systems with organizational strategy.

STRATEGIC
MANAGEMENT
INFORMATION SYSTEMS

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................3
ACTIVITY 1..............................................................................................................................3
1.1 Link between information systems and organisational strategy..................................3
1.2 Frameworks for integrating information systems with organisational strategy and
analyse the benefits of this approach.....................................................................................5
ACTIVITY 2..............................................................................................................................6
2.1 Tools which can be used to analyse organisational strategy............................................6
2.2 Organization’s strategy....................................................................................................7
2.3 Assess the extent to which information systems are integrated within the strategy of the
chosen organisation................................................................................................................9
ACTIVITY 3..............................................................................................................................9
3.1 Recommendations regarding the information system......................................................9
3.2 Evaluating the Information system strategy which helps in achieving the organizational
strategies...............................................................................................................................11
ACTIVITY 4............................................................................................................................12
4.1 A plan for the implementation of the information system strategy which consists of the
stated priorities, costs and benefits of such strategy............................................................12
4.2 Determining the associated Risk planned Information system......................................13
CONCLUSION........................................................................................................................15
REFERENCES.........................................................................................................................16

INTRODUCTION
Today most of the businesses are using information systems within their
organizations. These information systems are used by organizations to process, create,
distribute , filter and manage information or data within an organization. Strategic
management information system is a kind of information system that are developed by
organizations to develop in response to corporate business initiatives (Laudon and Laudon,
2016). They ate mostly used by organizations to gain competitive advantage within the
market they are operating in. It also helps the organizations to bring innovation within their
organization as well. Other than this strategic information systems are used to deliver
products or services of an organization at differentiated lower price as compared to their
competitors as per the demand of market section. It is one of the best feature or systems that
most of the organizations prefer for transferring, creating, modifying and developing
information or data within their organization. These information systems not only help the
organizations to use, transfer and maintain information within their organization, gain
competitive advantages but it also helps organizations to develop their business strategy in
such a way that they can gain competitive advantage. Organizations using information system
easily achieve and fulfil challenging requirements and continue to develop competitive
environment. It has become one of the most necessary part of an organization which helps
them in their growth and expansion. Organizations that uses strategic management
information system can easily bring changes within their business strategies as per the
changing market requirements (Orna, 2017). This report is based on Alloy Yachts is a New
Zealand based organization which was build in 1980’s and builds high performance Yacht.
This report will lay emphasis on links between information system and organizational
strategy, frameworks for integrating information systems with organizational strategies, tools
used to analyse organizational strategies, evaluation of Alloy Yachts using strategy analysis
tools, assessment of information system and integration of these systems with organizational
strategies, information system options based on analysis of chosen organizations strategy and
plan for the implementation of an information systems strategy which considers the priorities,
benefits and costs of the strategy.
ACTIVITY 1
1.1 Link between information systems and organisational strategy
Information system (IS) and organizational strategy are directly linked and related to each
other. Information system helps in building organizational strategy such that business can

achieve their targeted goals and objectives. Information system helps in taking right
decisions, helps in building relationships and structure and informal network. Many
companies who uses information system build their organizational design and structure in
such a way that the IS system becomes a part of organizational culture and management
control system as it helps in data collection, planning, evaluation, performance measurement,
rewards, incentives and many more. Businesses also need to continuously update their
organizational structure in order to facilitate information flow by developing information
system and delivering its services (Seidler, 2019). IS system’s main use within the
organization is to provide information such that management can take required decisions in
order to keep the organization working. It is important because decision making is one of the
most important part of an organization which is used in each and every part of an
organization. It helps the management of an organization to build organizational strategies so
the planning, controlling, managing and directing activities of an organization can be
managed smoothly. It also helps the organizations in maintaining and accepting the changing
requirements of the users or customers. Not only this is visa versa as well i.e. organizational
strategy is extremely important for businesses to plan their information systems so that it can
further support relevant information to the organization. Maintenance of this relationship
between information system and organizational strategy is a continuous process which helps
the IS system to support business structure and remain relevant to the strategic objectives and
goals of an organization.
In other words, with the help of Information system accurate business strategy can be
build which further helps an organization to gain competitive advantage. But this can only
happen if the IS systems are used properly, information generated by such systems is used
properly to take necessary decisions. Operability of such IS systems is as per the
requirements of an organization, its goals and objectives (Ibrahim, Musa and Leng, 2018).
Usage of information system depends upon the environment in which the business run, its
functions, resources used and available and overall customer base of the company. Based on
all the above factors usage of information system is decided so that it can be used accurately
and can support organizational structure, objectives and goals. If the link between IS and
organizational structure is accurate the it helps the organization in reducing its overall cost,
repetitive work, less human errors, interconnected information flow, provision and usage of
correct information for decision making, supports all business processes. Other than this it
also helps in making necessary predictions that can be used to bring changes in required

organizational strategy. Overall management of an organization can also be improved and
interconnectivity among business operations can also be brought with the correct usage of
information system. This accurate linkage also helps in better management and gain
competitive advantage for the business.
1.2 Frameworks for integrating information systems with organisational strategy and analyse
the benefits of this approach
Most of the organizations relay on effective use of information system in order to remain
competitive and compete with their competitors. Not only organization but employees and
management of an organization also relay on information systems in order to complete their
daily 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 integrate
information system and organizational strategies and for this they need to develop a
framework. There are various kinds of frameworks that are used for integrating information
system with the organizational strategies. This not only helps the organizations to integrate
their strategy with the information systems they use but it also helps in increasing the overall
security of the system and the data which is produced by them. Many organizations develop
their own framework in order to integrate there is systems and strategies all together. It has
also been observed that these frameworks also help in addressing any kind of technical or
non-technical issue that arises with the IS system, organization or their internal/external
environment. These frameworks also assure that all the operations, strategies and information
systems are used in an effective and efficient manner such that organizations overall
processes, objectives, productions and other things are being fulfilled.
One of the most commonly used frameworks is business process framework. Business
process framework is one of the most common framework, that is being used by the
organizations that provide services to their customers. This framework assures the
segregation and integration of information system according to business needs in order to
fulfil business objectives. It also helps in forming a blueprint to enable successful
transformation of business. It is multi-layered framework that helps in running a business
efficiently. 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 so
that business strategy can be developed (Arms, 2015). This framework consists of various
information system opportunities which helps in development of organizational

methodologies, strategies for the development of the business. Other than this, this
framework also helps in enterprise management, other business operations and helps in
improving all products and services offered by the organization. There are various benefits of
this framework such as: it helps in integration of all the information systems used by the
organizations according to their use, it supports both customer facing activities and supplier
facing activities. Other than this it helps in product life cycle management, infrastructure like
cycle management, operational and resource management, customer relationship
management and various others. It also helps an organization in bringing improvement in
existing processes and systems. This business process framework helps in creating and
maintaining high quality end to end process which further helps in eliminating duplication of
any system. It also helps in integrating information systems used within an organizations and
business strategies which provides organizations with competitive advantages and helps in
reducing risks associated with it.
ACTIVITY 2
2.1 Tools which can be used to analyse organisational strategy
It is extremely important to analyse organizational strategy in order to map out all the
important and best possible directions in which a business can move and work in a productive
way. This helps the organizations to take important decisions which helps them to achieve
both long- and short-term goals (Valmohammadi and Ahmadi, 2015). This also helps the
organizations to identify all kinds of necessary changes that are required to be made and
implemented within an organization which further helps in improving organizational
planning process. There are various kinds of tools that are being used by organizations which
helps them in improving and developing organizational planning process. Main tools used for
organization strategy analysis are explained as follows:
SWOT Analysis: This tool is used for strategic planning of an organization. It helps in
identifying strengths, weakness, opportunities and threats of an organization. It is one of the
most powerful tool used for analysing all kinds of threats, weaknesses, opportunities and
strengths associated with the organization, such that weaknesses and threats can be reduced
and opportunities and strengths can in increased.
TOWS Matrix: This tools helps in developing strategic options from internal and external
analysis done with the help of SWOT analysis tool.

SOAR Analysis: this tool helps in focusing on all kinds of positive opening opportunities for
an organization. Organizations uses it to create a vision for future aspirations If this tool
is used in an optimal way then it can help an organization to achieve results as per
opportunities, strengths and aspiration s associated with the business.
Porter’s five force Analysis: this tool helps in analysing as well as developing competitive
influence of an organization within their specified market. It helps in identifying and
analysing five main important factors that can affect organizations competitive position. It is
one of the most important tool that is being used by the companies as it helps in evaluating all
the five forces and the way they can impact a business (Liao and et.al., 2015).
PEST Analysis: It is one of the most useful tool which helps in understanding the overall
market growth or decline in market growth. The overall political, economic, social and
technological impact on an organization can be analysed with the help of this tool. It mainly
helps in identifying opportunities associated with the business. Threats that can decline the
overall market growth of their business.
PESTLE Analysis: It is an expanded version of PEST analysis.
Value chain Analysis: This tool helps in analysing organizations business activities which
helps them to analyse the ways in which organizations can create a competitive advantage for
themselves. It helps the organizations to understand and add values to their products or
services subsequently so that they can improve value of their products and services by
generating or increasing generated profit margin.
Four corner Analysis: This tool help in analysing organizational strategies by assessing their
competitors’ objectives, strengths and intend and by using this information achieve their
overall objectives (Ahmad and et.al., 2017). It helps in analysing competitors’ future goals,
current strategies, market and assumptions.
2.2 Organization’s strategy
Alloy Yacht has integrated some of their business strategies with information
technology. These strategies have been set according to their requirements as per their
competitive market. Evaluation of these organizational strategies of Alloy yacht has been
described below:
SWOT analysis of Alloy Yacht:

Strengths
 One of their main strength is that they
always analyse the market in which
they operate which helps them to
reach their customers and maximize
their sales which further helps them in
increasing their profitability and overall
revenue.
 Their all the processes are completely
automated which increases their
employee’s efficiency and reduces
human efforts.
Weaknesses
 High raw materials prices is one of their
main weaknesses as high raw material
cost increases the overall cost of final
product which works as a hindrance in
their overall sales (Scholl and et.al.,
2018).
 Production of same goods and
providing same services to their
customers is one of their weakness as
due to this reason their overall sales is
getting hampered.
Opportunities
 Bringing innovation among their goods
and services can also help in increasing
their customer base and sales as well
(He and et.al., 2017).
 Reduction of overall cost of the raw
materials used by them can also help
them in reducing the overall cost of
their final products.
Threats
 One of their main threat is increasing
number of competitions. Competition
and competitors in this industry are
increasing continuously due to which it
has become a compulsion for them to
improve their sales and bring some
innovation among their products and
services.
Five force analysis of Alloy Yacht:
Threat to new entry: Threat to entry for this organizations is low as it is not easy to enter and
establish a new business in this industry and as Alloy Yacht has already established
themselves so threat to new entry is low for them.
Industry rivals: Industry rivals’ threat for Alloy Yacht is high as there are huge number of
competitors in this industry. So, if Alloy Yacht need to gain competitive advantage and
reduce this threat, they need to continuously bring improvement within their services and
products.

Bargaining power of suppliers: Bargaining power of suppliers is high as there are not many
suppliers who supply raw materials to Alloy Yacht. This increases their threat of suppliers
and as a result their overall cost of raw materials also increases.
Bargaining power of buyers: Bargaining power of buyers is also high for Alloy Yacht as
there are many competitors or rivals of Alloy Yacht who are ready to sell their products at
lower price then them. Due to which power of buyers also increases for them (Karoui,
Dudezert and Leidner, 2015).
Threat to substitute: threat to substitute is also high for them as there are various substitutes
for their products and services available in the market due to large number of competitors so
they need to bring continuous improvement and innovation among their goods or services.
2.3 Assess the extent to which information systems are integrated within the strategy of the
chosen organisation
Information systems within Alloy Yacht are integrated within their business strategy
in quite a certain extent. They use expert support system which helps them in strategic
decision making and provides them support in taking decisions related to revenue generation,
inventory management, expected sales and many more (Shen, Chen and Wang, 2016). This
helps them in analysing their overall sales, changes they need to bring within their inventory
management etc. they also use Decision support system which helps them to find possible
solution to any difficulty, bring automation among their processes. This helps them to
improve overall performance of their employees. This information system also helps them in
improving organizational strategies which helps them in improving their production process,
bring automation among their products and services development, in strategic decision
making. In other words all the processes from raw materials to sales of their products or
services, organizational strategies are integrated with information systems. This integration
helps them to bring continuous improvement within their organization. Not only expert
support system and decision support system, there are various other information systems that
are integrated within the strategy like OAS system, online analytical processing system and
many more.
ACTIVITY 3
3.1 Recommendations regarding the information system
In order to implement the information system which supports the Alloy Yachts in
achieving the main goal within the company (Pearlson, Saunders and Galletta, 2016). Also, a

strategic information system is basically developed to respond to increased competition in
this modernised world. Therefore the development of the effective and efficient system
within the organization leads to the competitive advantages within the Alloy Yachts.
Although, it can be turned as one of the essential feature in corporate as well as
information technology world as it allows them to allocate, store, process and manage the
required data and information for the effective operations within the firm. In order to enhance
the business functions according to the different strategies developed within the organization,
Information system supports the management of large amount of business information as to
support the organizational strategies, some recommended information system options for the
company are as follows:
 It should be recommended to the Alloy Yachts that Executive support system or
expert support system should be implemented within the organization. As this type of
IS is basically designed to help the senior management in making the strategic
decisions. This information system is recommended the most because it gathers and
analysis the internal as well as external information within Alloy Yachts (Cassidy,
2016). ESS mainly supports the management of inventory and also figure outs the
revenues generation which is based on the sales expectations and reasonable sales
figure comparing it with the precious sales.
 Another most recommended option for the Alloy Yachts should be the employment of
the Decision support system. DSS basically helps in determining the possible
solutions to overcome the difficult situations within the firm. In order to enhance the
performance of the company, management has created effective strategy which
involves in automatic selection of the choices and alternatives that supports the
business in accomplishing the main objectives.
 It should be recommended to the staff of the Alloy yachts to implement OAS system
which will prove to be one of the most effective system for the company. This system
will benefit the company in by improving the operational efficiency of the firm. So
this system basically supports the company in enhancing the operational efficiency of
the staff members which leads to the higher profitability and hence maximum profits.
 One more system should be implemented within the company named OLAP (Online
Analytical processing) is one of the best technology behind many business
intelligence applications (Laudon and Laudon, J.P., 2016). It can be considered as one
of the effective IS option for the company that enables the Alloy Yachts to easily

extract and selects the particular query which helps in displaying the particular
required information within the system. This should be recommended to the company
because it helps in analysing the current trends, financial reporting, sales forecasting
and budgeting other planning purpose of the organization. Recommended OLAP
system within the Alloy yachts enhances the strong chances for the company to
achieve the effective strategies within the organization.
3.2 Evaluating the Information system strategy which helps in achieving the organizational
strategies.
As the Alloy Yacht carry outs the operations based on the manufacturing of
specialised equipment’s of sea going yachts. Therefore, it is very important for the
organization to analyse the latest trend and requirement of the product within the market. It is
one of the great activity within the business to maintain the demands and supply of the firm
in achieve the desired objectives and provability. Company is planning to update the
information system within the business so various strategies are build which supports the
improved performance of the business as well as efficiency of the firm (Yusuf, Guluda and
Jayanegara, 2017). Based on the employment of the recommended IS system within the
company, there are various information system strategies within the company which supports
the achievement of the organizational strategy and also helps in growth and sustainable
business performance and accomplishing a desired strategy will maximise the sales and
increases the overall profits within the firm.
The strategic information system helps in enhancing the image of the information
service within the organization. This system are generally developed to response to the
corporate strategies in which they are intended to give the competitive advantage to the
organization. IS strategy considered to be one of the effective system which circulates the
strategic, tactic and operational levels of an organization to meet the main objectives of the
firm. In business information system strategy involves the aligning information system
development according to the business needs. Therefore, it demands the oriented business
focus. Such information system strategy that supports the achievement of the Organizational
objective within Alloy Yachts are described below:
 Information strategy provides a link between organizational demand and information
technology (Theorin and et.al., 2017). It enables the Alloy yachts sustain in the
market by using the to meet the changing demands of the business with respect to the
continuously changing environment.

 Strategic information system can be considered as a critical aspect which helps in
integration of the data system and its functions which can be easily handled to
accomplish the main strategies of the business.
 This system also ensures the allocation of required resources which in order to
enables the business to function properly and it also manages the use of the scarce
resources in a sustainable way. IS also ensures that all the systems functions
according to the main strategies and also it supports the goals and objectives of the
Alloy yachts in many different levels.
 There are several instances of the strategical information system which supports the
business to create and sustain the resources in the competitive market.
 Information system strategy also generates the maximum financial performance of the
firm in this fluctuating market. So this can be fundamentally called as a correlation of
the strategic management and information system which supports the main objectives
of the Alloy Yachts.
 Improved strategic information system within the Alloy Yachts assists the business in
improved performance via employing the new strategies within the business and thus
adopting such strategies helps in achieving the main objectives of the firm.
ACTIVITY 4
4.1 A plan for the implementation of the information system strategy which consists of the
stated priorities, costs and benefits of such strategy
Information system strategy can be considered as a key to achieve the organizational
goals which need to aligned with the business strategies which are being executed (Aiello and
et.al., 2018). Development of the strategic planning model information system allows the
business implement the strategies according to the stated priorities and also it helps in
estimating the actual cost which is required needed to implement the strategies within the
business in order to carry out the successful plan. Although, ISSP can be considered as a
process of deciding the objectives for the organizational computing and identifying the
potential computer applications which the organization will implement. Strategic information
system is a systematic process for developing a long range plan for the information system on
the basis of overall strategic plan of the organization. Therefore, in order to perform the SPIS
effectively, there is organizational as well as technical aspects involved in integrating the
strategies in information together within the business.
A plan for Implementation of the Strategic information system

Priorities Cost Benefits
Analysing the market demands It aids $ 3560 within the
expenses of the firm.
This strategy will benefit in
increasing the customer reach
and also it helps in maximising
the sales which results in
increased profitability.
Automated work to improve
employee performance
It adds $ 17000 to the actual
cost of the business
This strategy reduces the
human efforts and enhances
efficiency.
Gaining competitive advantage It adds additional cost of
innovating the goods and
services at reasonable price
which includes $ 8460.
It helps in targeting the fresh
customers to reach such
products.
Focusing on reducing the cost
of raw material used
This strategy have focused on
quality based manufacturing
which reduces the chances of
wastes (Safa, Von Solms and
Furnell, 2016). Also, if any
wastes produced, could be
recycled which reduces the
cost of $ 3250.
It enhances the quality which
satisfies the needs of the
customer as well as increases
the overall performance of the
organization.
4.2 Determining the associated Risk planned Information system.
The Risk involved in the implementation of the information system can be termed as
uncertainty factors which is involved in implementation of the strategic information system
and also impacts on the short term as well as long terms of the objectives. As the company is
planning to implement the strategic information system within the company so there are
various risks associated during its development as well as implementation within the
business. Such risks may be in the form of security, infrastructure, hardware/software or the
business or project goals etc. there are also some common risks associated with the
implementation of the strategic information system such includes the hardware and software

failure, human error, spam, virus and malicious attacks as well as natural disaster such as
fires, cyclones or floods.
Information security Risk management or ISRM is the process which helps in
managing the associated with the use of the information technology (Centobelli, Cerchione
and Esposito, 2018). This involves various stages such as identifying, assessing and treating
the risk to the confidentiality, integrity and availability of the assets within an organization.
A Strategic information system implements the business strategies and these can be
considered as those systems in which information applied to the strategic business
opportunities in such as way that computer systems impacts on the operations and products of
the business. So risk involved in the Strategic information system needs to be effectively
controlled in order to reduce the uncertainties of system failure within the business.
Innovation is the another strategic thrust which supports and shape the information
technology in either developing a long term strategies to improve the business performance
or in terms of improving the process of product (Pearlson, Saunders and Galletta, 2016).
Therefore, there is a considerable risk associated with the response to such strategic
information opportunities within the business. Such risks associated with the implementation
of the IS system within the Alloy yatch are as follows:
Risks of Physical threats
This can be considered as one of the important risk while implementing the strategic
information system within the firm. As such risks may arrive from the physical access or
damage to IT resources such as server problems and this problem may leads to theft of the
strategic information. It may results in the unauthorised access to the confidential data by the
criminal or fire or damage from the fire or flood.
Risks of Electronic threats
Such risks are associated with the loss of information and such threats are aiming at
compromising the information within the Alloy yatch (Kliem and Ludin, 2019). During the
implementation of the strategic information system within the business, the system consists
of various long term as well as short term strategies so it consists of various confidential and
private data which has a lot of electronic risks associated with it. This can be in the form of
virus and fraudulent mails which are operated for the intention of the criminal purpose.
Risks of Infrastructure failure
This risk is associated with loss of data connection within the business that may be
responsible for the interruptions and data loss during the process of transmission. So strategic

information is considered to be very crucial system which need to be highly protected from
the fraudulent activities as such systems involves huge risks.
Risks of Human Error
As implementation of strategic information system within the firm is somewhat
depends on the commands and inputs of the user. So it may be possible that due to the
improper input within the system, it may results in undesired output which impacts on the
whole decision making of the firm (Safa, Von Solms and Furnell, 2016). So there need to be
proper privacy and security of the data within Information system.
CONCLUSION
From the above report it has been summarized that there are various kinds of
information systems that are used by various organizations. There is a strong relationship
between these information system’s and organizational strategies which helps business in
achieving their targeted goals and objectives. Mainly information systems are used within
organizations to provide information or data to the companies which helps them in decision
making, reduce overall organizational cost, reduces human errors, repetitive work and many
more. It has been analysed that there are various kinds of frameworks that helps the
organizations in integrating business strategy with information system as it helps companies
to remain competitive with their competitors within their competitive market. These
frameworks help companies to grow, expand, gain competitive advantage. Not only this, such
frameworks help the organizations to increase their overall data or information security and
address any kind of issue that are faced by their systems. It has also been analysed that there
are various kinds of frameworks like business process framework used in different kinds of
organizations. This framework helps in assessing business needs and fulfil all kinds of
business objectives and increases strategic use of information systems used within an
organization. It has also been analysed that there are various kind of tools that can be used for
analysing organizational strategies. These tools help business to identify and analyse their
competitive market, their strengths, threats, opportunities and weaknesses as well so that
organizations can bring changes within their organizational strategies accordingly. It has also
been observed that different kinds of information systems have different purposes and is used
by different parts of an organization. These systems help organizations like Alloy Yachts to
carry out their overseas operations in a better way. However, there are few risks associated
with these information systems that should not be ignored by the organizations of they want
to achieve competitive advantage and build an effective organizational strategy.

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