Strategic Information Systems: Alignment of IT Infrastructure & Goals

This literature review examines the role of Strategic Information Systems (SIS) in achieving alignment between an organization's strategic goals and its IT infrastructure, focusing on Woolworths as a case study. It identifies Woolworths' structure, products, and services, analyzes its current ERP-based processes, and highlights gaps such as product quality issues and inability to meet customer demands. The review proposes implementing a cloud-based ERP system to address these problems, emphasizing inventory management, demand forecasting, and customer management as key criteria for success. It further discusses the constituents of an Information Systems strategy and its importance as part of the overall organizational strategy, while also addressing the difficulties organizations face in developing such strategies, including management, human, technical, and time-related challenges. The review concludes by analyzing potential problems within Information System projects, such as customization, change management, data security, and user training, suggesting remedies for these issues.

Running head: STRATEGIC INFORMATION SYSTEM
Topic- Strategic Information System for business and enterprise
Name of the Student
Name of the University
Author’s Note

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STRATEGIC INFORMATION SYSTEM
Table of Contents
1. Identification and discussion of the chosen company’s structure, products and services...........2
2. Operation and functionality.........................................................................................................3
2. a. The current processes..........................................................................................................3
2. b. Gaps and challenges............................................................................................................4
2. c Specific problems that will be fixed.....................................................................................4
2.d Criteria that is used for proving that the proposed system will meet requirements..............5
3. Discuss the constitutes of an information system strategy and explain why the strategy is
required as a part of overall organizational strategy........................................................................6
4. Reasons of facing difficulties by the organization in developing an information system
strategy.............................................................................................................................................7
5. With reference to information system failure..............................................................................9
5.a Analysis of the typical problems that might be expected to arise within the projects of
Information System.....................................................................................................................9
5. b. Illustration of the answer...................................................................................................10
5. c Suggestion of the remedies to the problems that are identified..........................................10
References......................................................................................................................................12

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1. Identification and discussion of the chosen company’s structure, products
and services
Structure of Woolworths
According to Hall and James (2014), organizational structure is one of the systems that
mainly comprises of implicit as well as explicit institutional policies that are mainly designed in
order to outline the roles and responsibilities of work that is delegated, controlled as well as
coordinated. The structure of the company “Woolworths” is provided below.
Figure 1: Structure of Woolworths
(Source: Biddle 2016, pp.3)
Products and services

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The company “Woolworths” is one of the major Australian companies with extensive
retail interest in New Zealand as well as Australia. It is identified that the main strategy of the
company is to meet the needs as well as requirements of the customers effectively at a reasonable
price for making their brand value (Turban et al. 2015). The company supply number of different
types of products that include fruits and vegetables, meat, seafood, bakery, dairy, eggs, pantry,
freezer, liquor, baby as well as health and beauty products.
On the other, it is identified that Woolworths provides number of services that include:
Online services: The Company provides number of online services to its customers so
that they can easily shop and get their delivery on proper time (Feigin 2016). In addition to this,
the customers can get 24 hrs services from the company.
Financial services: Woolworths helps in allowing the customers to manage the money
quite effectively. Woolworth’s money helps in providing value as well as rewards across number
of financial services.
Home delivery services: The service of home delivery by the company is quite useful.
The customers can get their product in their home and as a result they does not need to go out for
shopping and thus the services is helpful in saving time (Arumugam 2016).
Catering needs and requirements of customers: The Company caters the requirements
as well as needs of the customers by keeping proper view on the paying capacity.

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2. Operation and functionality
2. a. The current processes
The company “Woolworths utilizes ERP system” in order to manage its various business
operations. This is mainly used by the company for managing as well as automating various
business functions. This system helps in making the data accessible as well as more usable in
context to file organization. It is identified that Woolworth helps in allowing accurate planning
as well as engage in proper scheduling of daily activities for managing the records of the
company (Kilic, Zaim and Delen 2014). With the help of the ERP system, the company
integrates between sales, marketing, supply lines as well as to the human resource module. The
company manages accounts, employee records, as well as other internal and external factors that
generally affect the company.
2. b. Gaps and challenges
It is identified that the company is managing its various business functions with the help
of the ERP system however the company faces number of challenges as well as issues. It is
identified that the quality of products that is delivered to the customers are not of proper quality
and as a result the company is facing number of challenges (Nwankpa and Roumani 2014). The
company is not able to meet the various needs as well as demands of the customers and as a
result, Woolworths faces huge competition from other retailers in New Zealand (Shen, Chen and
Wang 2016). In addition to this, the company is not able to manage the inventory, supply chain
as well as the needs of customer management. Therefore it is quite important to implement a new
system for resolving the issues.

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2. c Specific problems that will be fixed
It is identified that the company must implements cloud based ERP system for resolving
the issues that the company faces. The problems that are fixed include:
Improper quality of products: The quality related issues that the organization faces
will be resolved due to proper implementation of cloud based ERP (Tenhiala and Helkio 2015).
It is identified that with the help of cloud based ERP, the inventory system can easily analyzes
the quality of product.
Unable to meet the requirements of customers: The problems associated with meeting
the needs of the customers can be solved with the help of cloud based ERP as with help of proper
demand forecasting the problem can be easily resolved (Efe 2016)
Huge competition: With the help of cloud based ERP, Woolworths can easily resolve
the problem that they face due to competition from other retailer. Proper demand forecasting as
well as customer management assists in meeting the demands of the customer.
2.d Criteria that is used for proving that the proposed system will meet requirements
The criterion that reflects that the proposed system is helpful in meeting requirements is
elaborated below:
Inventory management: With the help of cloud based ERP the retailer can easily
manage as well as track the goods that not only helps in analyzing their quality but also assists in
accounting for highest proportion of working capital as WIP, finished goods as well as raw
materials.

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Demand forecasting: According to Kilic, Zaim and Delen (2014), tracking of the
customer demand is considered advantageous as it helps in increasing satisfaction of customers
and maximizes the sales that reduce competition from other retailers.
Customer management: With cloud based ERP, it becomes quite easy to capture
customer data, activities as well as preferences which helps in increasing the sales of the
company thus reducing competition risk from other retailers (Efe 2016).
3. Discuss the constitutes of an information system strategy and explain why
the strategy is required as a part of overall organizational strategy
The information system strategy is defined as a planning document that helps in
explaining the utilization of information system as well as technology as a part of the overall
business strategy of the organization and it is identified that it is mainly designed for supporting
the overall business plan of the organization (Grant 2016). The main constituents of the
information system strategy include:
 It mainly considers what type of information is mainly required at strategic, operational
as well as tactical levels of an organization for meeting the objectives (Slack 2015).
 It generally involves interconnection off organizational activities that generally obtain,
processes data as well as provides proper information (Grinblatt and Titman 2016).
 Information strategy uses various informational sources for creating proper business
opportunities (Mendelberg 2017).
 It generally constitutes various types of informational resources for generating various
business opportunities.

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This strategy is mainly required as a part of overall organizational strategy due to the
following reasons:
Creating barriers in the entry of competitors: In this strategy, proper information
system is used by the organization for providing proper services that is difficult to duplicate
by other retailers.
Generating database for improving marketing: According to Peppard and Ward
(2016), the information system helps in providing companies an edge over competition for
improving the strategies of sales and marketing.
Lowering cost of products: Information system strategy helps in organization to reduce
their internal cost that helps in allowing them to deliver services as well as products at a
lower price.
Leveraging technology in value chain: It is opined by Grinblatt and Titman (2016) that
the approach helps in pinpointing various activities of the business whenever the competitive
strategies can be properly applied to have proper strategic impact.
4. Reasons of facing difficulties by the organization in developing an
information system strategy
The difficulties or problems that the organization faces in developing an information
system strategy are as follows:
Management challenges: It is identified that the management of the company is facing
issues in aligning the strategy of information system with business strategy. It is identified that

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proper identification of IS gap is required for analyzing position of the company (Grant 2016). In
addition to this, the management of the company faces challenges due to most of the factors that
mainly includes lack of proper communication channels, weakness of the managers to support
the new information system.
Human challenges: The human challenges mainly include issues that are mainly related
to various person of the company. It is identified that lack of resources,, improper recruitment,
improper employment helps in creating issues while accomplishing information technology
activities (Mendelberg 2017). Lack of proper computer skill is also considered as a challenge in
developing proper information system strategy.
Technical challenges: Technical system challenges as generally considered as the
challenges or issues that are generally related with the software as well as hardware aspect of
information technology (Grinblatt and Titman 2016). It is identified that barriers are related with
telecommunication is also considered as one of the difficulty in implementing the strategies of
information system.
Time challenges: Improper analysis of time is also considered as one of the difficulty. It
is identified that extension of time planning as well as presenting proper system leads to
cancellation of the entire project due to strategies that might be modified in that period (Slack
2015).
The challenges that the company faces in implementing information system strategies can
be resolved by using the methods that are as follows:

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Robust relationship between top management and staff: Making proper robust
relationship between staff as well as top management is quite important for successfully
implementing the strategies of information system (Peppard and Ward 2016).
Proper support from the executive management: Proper executive management is
required for creating as well as implementing the system for achieving the goals.
Proper participation of employees: Proper participation of employees is required for
implementing the strategies of information system within the company.
Adequate information: It is stated by Grinblatt and Titman (2016) that adequate
information must be provided among employees so that they can participate for supporting the
information system implementation.
5. With reference to information system failure
5.a Analysis of the typical problems that might be expected to arise within the projects of
Information System
The problems that arise within the information system projects are as follows:
Customization: The main problem is associated with moving existing customization to
the new deployment (Beaulieu et al. 2014). It is identified that the change in business processes
requires to be fit with the standard software corset which is also considered as a challenge.
Change management: It is identified that for cloud based ERP, proper investment in
change management is needed. It is identified that the cultural change impact is underestimate
that creates problems

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Data security in cloud ERP: It is identified by Sudhendra, Ranganath and Nandan
(2016) that cloud mainly conjures with the vision of high risk levels but however the chances of
data risk is also present which must be resolved properly.
User on boarding and training: It is identified that delivering effective training is also
an issue. Underinvestment in training by the organization is considered as one of the fatal
mistakes as it creates number of challenges in implementing cloud based ERP.
5. b. Illustration of the answer
It is identified that the challenges that the company faces due to the implementation of
cloud based ERP mainly differs on whether the implementation is from scratch or from cloud
version to an existing solution of cloud. According to Duan, Fesak and Stuart (2013) it is
identified that due to high availability over the cloud the security for cloud services mainly
enhances. It is quite challenging as well as complex to handle the security risks that are
associated with cloud ERP implementation. On the other hand, it is stated by Nguyen et al.
(2014) that over the cloud, CSPs as well as clouds are generally separated from each other with
the help of internet connection. It is identified that due to network failures and due to other types
of connection problems, cloud ERP problems can be hampered. In addition to this, it is identified
that in order to move towards cloud ERP, the company needs to move many activities from its IT
department to the provider of ERP (Navaneethakrishnan 2013).The result of moving can be
considered as IT competencies or it may faces resistance from the IT department of the
organization.

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5. c Suggestion of the remedies to the problems that are identified
The problems that the companies face can be resolved by implementing cloud ERP can
be resolved by adopting strategies that include:
Proper customization: The customization must be done in conjunction with the
licensing as well as architectural model feasibility study (Beaulieu et al. 2014). It is identified
that the RFP procedure must include proper customizations that help in listing proper potential
suppliers that generally responds to each of the functional requirement.
Appropriate change management: The change management for the organization must
be developed before the ERP migration or before the procurement procedure in order to make
the change management successful (Navaneethakrishnan 2013). It is identified that proper clear
messages must be developed for engaging the users within the change management plan.
Proper training: Proper budget must be spent on training in order to provide proper
training facility to the employees (Nguyen, Nguyen and Misra 2014). It is identified that proper
investment in durable on-boarding as well as various training toolsets helps in ensuring that that
proper training capital is preserved.