Strategic Management Information Systems

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